The Effect of Reward System on Employee Performance: Job Satisfaction as Mediating Role the case of Bale Zone Selected CBE Branches

Abstract The Purpose of this research was to examine the effect of reward system on employee performance job satisfaction as mediating role case of Bale Zone in Selected CBE Branches. Researcher have used Stratified sampling method was employed to select the sample from each stratum to make the sample more representative of the population and the research is Quantitative, Qualitative (Mixed approach). Descriptive Statistics, mediation analysis and inferential statistics of correlation and regression analysis were used to analyze the empirical data with aid of SPSS Version 23. And additionally, Hayes Process procedure model version 3.5 was used for computing and depicting the mediation analysis. Based on this, Questionaries’ were distributed to Sample of 217 and 198 questionnaires 198 responses were properly filled and returned with 91.2% response rate. Primary data were collected using Five-point Likert-scale SPSS was used to analyze empirical data collected through the close ended questionnaire. The Study finds Job satisfaction has a mediating role on the relationship between Reward System (Extrinsic and Intrinsic reward) on employee performance. Results showed that, except Benefit and Empowerment, all the other variables: Working, Conditions, Job Promotion, Recognition, Working Relation, Payment/Salary, and Bonus had significant on the employee performance. Moreover, the findings indicated job satisfaction mediates the effect of reward system on employee performance. The Study recommends that CBE should handle employee performance with a great concern for their competitive advantage by balancing both reward system to satisfying the employees. the variation of Reward of Employee performance and Job satisfaction was 80.5 from this Reward system and Employee performance had significant correlation, therefore Reward system and Employee performance had a significant effect on Job satisfaction with Unstandardized(B) coefficients and P- value<0.05. the mean, frequency and percentile of dependent and independent variables were computed and interpreted Pearson correlation coefficient(r) were used to determine Mediator Variable with the relationship between each independent and with dependent variable. 7