Reward Management and employee’s performance: special reference to commercial banks in Matara district in Sri Lanka

Abstract

The banking sector play an important role in any country, there are state own banks and private banks. The private banks in Sri Lanka play a chief role and most of the customers count on private banks. There is a communal view about the customer service quality of the private banks is higher than public banks. Therefore, they have massive responsibility on their customers. The main objective of the study is to explore the impact of reward management on employee’s performance. The study considers the Commercial Private Banks employees employed in Matara district and the total population entailed of 340 employees from five private banks in Matara district. From this population the researchers selected 100 employees as sample by using stratified random sampling, in order to collect the primary data through self-assessment questionnaire. The validity and the reliability of the questionnaire were satisfactory. The results of the correlation analysis displayed a strong positive correlation (r= 0.603) between reward management and employee’s performance. Further a sturdy positive correlation (r= 0.757) exist between extrinsic reward and employee’s performance and also a strong positive correlation (r= 0.894) exist between intrinsic reward and employee’s performance at 0.000 significant level. The multiple regression results revealed that, R square and adjusted R square values were 0.603 and 0.565 respectively. Therefore 56% of variation in employee’s performance explicates by both extrinsic and intrinsic reward management. The future researches can duplicate this study with the higher number of sample by covering all the private sector banks in Sri Lanka in order to generalize the findings. The management of private banking sector can consider the proper reward management system for their employees in order to enhance the employee’s performance.