Abstract:
This study examines the impact of reward management systems on employee performance at the
EEU Ambo District, focusing on the interplay between intrinsic (non-monetary) and extrinsic
(monetary) rewards. A mixed-methods approach was employed, combining a structured
questionnaire administered to 162 employees for quantitative survey with four FGDs involving
28 key customers. Quantitative data were analyzed using descriptive statistics, Pearson
correlation, and multiple regression (SPSS version 26), while qualitative insights from FGDs
explored observable behaviors, processes, and outcomes linked to employee performance during
service delivery. The regression model explained 73.5% of the variance in employee
performance, confirming a strong relationship between reward systems and performance
outcomes. Recognition emerged as the strongest predictor of performance, followed by
challenging work and career advancement opportunities. Extrinsic rewards, including basic
salary, performance-based bonuses, and promotions also showed significant positive
correlations, though employees expressed dissatisfaction with salary adequacy and promotion
transparency. FGD findings corroborated these results, emphasizing that structured recognition
programs and transparent incentives (e.g., merit-based promotions, timely bonuses) enhance
service speed and quality, while systemic gaps in reward distribution hinder motivation.
Recommendations include integrating intrinsic and extrinsic rewards through formal recognition
initiatives, merit-driven promotion frameworks, and job enrichment strategies. This research
contributes to the discourse on holistic reward management in public sector organizations by
underscoring the dual role of intrinsic and extrinsic motivators in driving sustainable employee
engagement and productivity, validated through both quantitative rigor and qualitative
triangulation via FGDs.
