School of Postgraduate studies

Department of business Administration

THE EFFECT OF NON-FINANCIAL REWARDS ON EMPLOYEES MOTIVATION
THE CASE OF AWASH INSURANCE COMPANY

ADVISOR: Dr. YIGALEM GERBA

BY: BETHELHEM ENAWEGAW

JULY 20, 2022

ADDIS ABABA, ETHIOPIA
 Outline of presentation
1. Introduction

Statement of the Problem

Research Questions

Objectives of the study

2. Methodology

Research Approach

Research Design

Sampling Techniques

Method of data collections

Result and Analysis

3. Major findings

4.Conclusions and Recommendation

 Introduction

 Supply chain management (SCM) is the group of activities which

represents all those efforts and measures which considered by

organization for development of a smooth supply chain process..

 Supply chain management (SCM) approach is one of the new era in

business paradigms for organizational sustainability and

competitiveness (Gunasekaran, A. and Ngai, E. W. T (2004)). .

 it seems that researching and analyzing SCM systems in the healthcare

industry is a promising and fruitful area of research today having major

practical consequences
 Cont’d

 Regulation and reform, cost management, global perspectives

and technology investment are all important issues to be

considered in the evaluation of the performance of the supply
chains in the health sector

 The healthcare sector consists of businesses that provide medical

services, manufacture medical equipment or drugs, provide medical

insurance, or otherwise facilitate the provision of healthcare to patients

 Statement of the Problem

 Hospital supply chains are often confronted by several economic, environmental, and social

problems From the economic point of view, increasing healthcare expenditures demand greater

efficiency in the delivery of services [Weisz, U.; Haas, W.; Pelikan, J.M.; Schmied, H.,2011].

 For Ethiopia in particular, poor inventory management, inefficient tracking and tracing and

fake or sub-standard products especially counterfeit medicines are major challenges identified

for the health commodities supply chain (Bergen et al., 2019).

 The intention of this study is, therefore to assess determinants of Supply Chain Performance in

the Ethiopian Health Sector .

 Research Questions

1. Is there any association between supplier-buyer relationship and supply

chain performance?
2. What is the association between external supply chain and supply chain
performance?

3. Do have any association between human metrics and supply chain

performance?

4. What is the association between information sharing and supply chain

management performance?
5. Do have any association between environmental factor and supply
chain management performance?
 Objective of the Study

 The General Objective:-


The general objective of this study was to assess the major determinant factors of Supply

Chain Management Performance of Ethiopian health sectors.

 Specific Objective of the Study

 To identify the correlation between supplier-buyer relationship and supply chain

management performance

 To identify the correlation between human metrics and supply chain performance

 To identify the association between information sharing and supply chain management

performance

 To examine the association between environmental factor and supply chain

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 Limitations of the Study

the work of this research is delimited to some

major factors that determine supply chain
performance in case of Addis Ababa health
care in Ethiopia

The research is not cover all hospital in Addis

Ababa, rather some hospitals has be selected
based on to get accesses data for my research.
 Research Methodology

 descriptive survey designs have been selected for this research.

 A distributive survey design would be adopted because of it is believe

that appropriate to look in to what is reality affect the practice of non-

financial reward. (Kohl, 1984).

Research Approach
 This study follows a mix of quantitative and qualitative approach as this

is considered to be the most suitable research method for the cross

sectional studies allowing the extensive possibilities to collect and
analyze data.
 Source of Data
 Primary Source of Data

 The primary data are those which were collected afresh and for the first time, and

thus happen to be original in character.

 The primary source of data was gathered from respondent whom are primary

source, which was chose through sampling from the total study population
 Secondary Source of Data

 The main source which was used for secondary source of data is Annual awash

insurance report, different books in area of non-financial reward human resource

management practice.
 Secondary source of data were used to strength the primary source of data.
 Sampling techniques

 From the total number of senior employees considered that is approximately

605, employees were taken as a sample frame.

 The sampling method employed in this study is stratified random sampling.

 Stratified random sampling ensures that all parts of the population are

represented in the sample in order to increase the efficiency of a study and

 It is helpful for administrative convenience and may produce gain in

precision of the estimates of the characteristics of the whole population

(Kothari, 2012).
 Taro Yamane’s formula 1967

 In order to determine the sample size of the population , I have used Yamane’s formula (1967).

 The Taro Yamane method for sample size calculation was formulated by statistician Tara Yamane in

1967 to determine the sample size from a given population, below is the mathematician's illustration

for the Taro Yamane method.

n=N/ (1+N(e) 2

Where n signifies the sample size

N signifies the population under study

e signifies the margin error

And our N=605

Then by using this formula our sample size is

n=605/ (1+605(0.10)2) =605/1+605(0.01) =605/7.04=86

 Procedure of data collections

 Both closed and open ended structured questionnaires, structured interview and observation with

checklist data collection instruments were used to collect primary data.

 The insurance company annual reports, websites, magazines, published and an unpublished study was

adopted used as a source to gather secondary data.

 Method of Data Analysis

 In accordance with data collection tools both quantitative and qualitative were used.

 Thus the analysis the data being collected was done in line with data types.

 Quantitative Data Analysis:- after the researcher collect data through questionnaire to make it

understandable the raw data was checked, tallied, numbered, arranged and organized in tables on excel.

 Qualitative Data analysis :- the data that was obtained through open-ended questionnaire and

document analysis would be analyzed as qualitative data which provides a supporting role.
 Data Analysis and Presentation
 The methods of data analysis that was employed are

primarily determined based on the nature of the study and

the level of data to be gathered.
 Accordingly, the data collected through the use of

questionnaires on the practices of organizational change

management as perceived by employees would be analyzed
by using of using the SPSS (Statistical Package for Social
Studies) version 22.
 Result and Analysis

 This study aimed to investigate the effect of non-financial rewards on employees’

performance in awash insurance company S.C

 From the distributed 86 questionnaires, 86 were returned and the response rate is

100 %, which is acceptable for data analysis and discussion of the study.

 In the demographic analysis most of the respondents are Male 49 (57%) and the rest

37(43%) are female.34(39.5%) of the respondent Aged in category of (18- 30),and

52(60.5%)of the respondent are married, and 45(52.3%) of the respondents are
BA/BSc holders.

 As also reveals from the demographic distribution majority of respondent’s

38.375% served between (10-15) years of work experience.

 Cont’d

 Furthermore, majority of the respondents 64(74.42%) work at branch and 58.14 % of the

respondents were customer service officers and also majority of the respondents 42(48.84)
are with a salary range of between (8,001 and 12,000) .42(48.84%).

Descriptive Statistics

Minimu Maximu
N m m Mean Std. Deviation
Working Environment of the
respondents 86 1 8 4.74 2.397
Recognition of the
respondents 86 1 8 4.74 2.397
Performance of the
respondents 86 1 10 5.81 3.016
Empowerment of
respondents 86 1 7 4.08 2.030
Job security of resonates 86 1 7 4.08 2.030
Valid N (listwise) 86
 Cont’d

 The result of the central tendency also shows that, the most important indicator of

employees’ performance is empowerment, job security, work environment and recognition

 The mean value and standard deviations of the Performance of the respondents

(Mean=5.81, SD = 3.016) is higher than other values in the study. This implies that if

there is a conducive work environment an employee performance will remain high.

 Working Environment and Recognition of the respondents is a subsequent variable

which has a mean value of (M=4.74, SD= 2.397) which implies that the employees of

Awash Insurance Company S.C are moderately satisfied

 The least mean value of independent variable is Job in security of the respondents and

Empowerment of the respondents (M=4.08, SD=2.030).

 Major Finding

 According to the findings of the study, there is positive and significant relation

between independent variables and employee performance. 49(57% ) of Awash

Insurance company S.C positions are occupied by Male employees more than half of

the employees are married, most of the employees have first degree and Significant

numbers of employees have adequate service years of experience.

 Intrinsic motivational factors that include empowerment, job security, work

environment and recognition have an impact on employee performance.

 Based on the findings of this study employee performance with work environment is

satisfactory.

 Therefore, Work environment is a major factor for employee’s performance at AIC.

 Conclusion

 In this study it is found that there is a significant relation between

empowerment and employee performance.
 The more employees are empowered, the better performance they

exhibited.
 As it can be seen from the findings job security impacts on employee

performance.
 In general, the research study achieved its aims of defining and

assessing the effects of non-financial reward system on employee

performance in awash insurance company S.C.
 Recommendation

 The company should reconsider the working environment and must improve conditions to

cope up with the dynamic work environment and try to maintain appositive working

environment since its relation with employee performance is significant.

 To do so, the Company should study the existing working conditions and create conducive,

exciting and attractive working atmosphere to motivate its staff and enhance their

productivity.

 Recognition is the least considered reward system by the company.

 Therefore, the company must be able to establish a system that would probably help to

recognize employee and enables to provide achievement based recognition to the better

performers.
 Cont’d

 There must be an appropriate recognition scheme and career path policy and

procedure which have to be fairly and equitably apply for all the employees

 Finally, so long as job security and employee performance have a strong relationship

the company need to make employees feel more secured by improving fringe

benefits, by facilitating open and honest communication with employees and by

setting future timeline goals for the company and employees within the company.

 Future research studies can be conducted on investigating other variables like task

autonomy, work relation, organizational culture and leadership style and their effect

on employees’ performance