Thesis Open Access
Melkamu Wogari
The general objective of the study was to investigate and assess the relationship between employee’s perception of performance based bonus and merit pay incentive scheme practices of Africa Village Financial Services and its influence on employee productivity. To undertake this general objective, four specific objectives with their underling hypothesis were designed and assessed by quantitative & qualitative research design. To set background information on the proposed hypothesis the theoretical, conceptual and other related literatures were reviewed and most of the literature finding implies that perception of employees of performance based bonus and merit pay incentive system has a significant and positive influence on employee productivity. The required data for conducting the research was obtained through structured and unstructured questionnaires. The structured questionnaire was adopted from two prior related studies. To check the reliability of the adopted instruments, the Chronbach’s coefficient alpha test was carried out. AVFS has only 98 total numbers of employees and the research was conducted on the entire population. Basically, a total of 98 questionnaires were distributed to the targeted employees, among these 90 were returned, which means 8 responses were remained unreturned. Thus, 90 returned questionnaires (i.e. representing 92% of response rate) were analyzed using statistical package for social science (SPSS version 20). In this analysis, descriptive statistics, correlation and multiple regressions analysis were performed
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