Sisay Research Proposal
Sisay Research Proposal
Department of Management
ASSESSMENT OF CUSTOMER REATIONSHIP MANAGEMENT PRACTICE (THE
CASE OF DASHEN BANK PIASA SUMAYA BRANCH)
ID: UGR/1656/12
Section: 5
First and for most thank and gratitude goes to God who created the heaven and the earth, and
also the sustainer of the whole universe. Without his will nothing could happen. Next, our great
and special thank and gratitude goes to our beloved senior essay advisor, DR Hussien, for his
tireless intellectual assistance. Last but not the least my deepest gratitude goes to thank our
family for their unlimited moral and financial support.
ABSTRACT
This study user aimed to analyze the assessment of incentive package and employee job
performance in Dire Dawa town, Ethio-telecom, Dire Dawa branch. The researcher user a
descriptive type of research design. The data are user from primary source through
questionnaires. The method of sampling this study used is census sampling technique and then
the researcher takes all employees of the organization. The data are user through open ended
and close ended questionnaires. And it is analyzing and presents using qualitative data analyzing
technique. Based on the provided data the researcher summarized the finding and understood
that the employee job performance will affect by incentive packages. This is related with
financial and non-financial incentive packages. The organization has good performance in
financial incentive package and has a weak performance in non-financial incentive package.
Generally, the organization should increase its effort in both packages so as to improve the
performance of the employee and to achieve the goals of the organization.
TABLE OF CONTENTS
Contents
Contents
ACKNOWLEDGMENT............................................................................................................................................3
ABSTRACT.............................................................................................................................................................4
TABLE OF CONTENTS............................................................................................................................................5
1.1. Back Ground of the Study..........................................................................................................................6
1.2. Statement of the problem.........................................................................................................................7
1.3. Research Questions...................................................................................................................................8
1.4. Objective of the study...............................................................................................................................8
1.4.1. General objective...................................................................................................................................8
1.4.2. Specific objective of the study................................................................................................................8
1.5. Significance of the study............................................................................................................................9
1.6. Scope of the study.....................................................................................................................................9
1.7. Limitation of the study..............................................................................................................................9
1.8. Organization of the study........................................................................................................................10
CHAPTER TWO....................................................................................................................................................11
2. LITERATURE REVIEW.......................................................................................................................................11
2.1. An overview of employee incentive........................................................................................................11
2.1.1. Definition of incentive......................................................................................................................11
2.1.2. Types of incentive.............................................................................................................................11
2.1.3. The Effective of Incentive in the Organizational Productivity..........................................................13
2.1.4. Incentive Plan Administration..........................................................................................................14
2.1.5. Benefits of Employee Performance..................................................................................................14
2.1.6. Guidelines of Creating an Effective Incentive Plan...........................................................................15
2.2. Employee Performance...........................................................................................................................17
2.2.1. Measures of Employee Performance...............................................................................................17
2.1.3. The Relationship of Incentive and Employee Performance.............................................................19
CHAPTER THREE..................................................................................................................................................19
3. RESEARCH METHODOLOGY............................................................................................................................19
3.1. Study Area Description............................................................................................................................19
3.2. Research Design...................................................................................................................................... 19
3.3. Data Type and Source..............................................................................................................................20
3.4. Target population and sample size....................................................................................................20
3.5. Methods of Data Collection.....................................................................................................................20
3.6. Method of Data Analysis.........................................................................................................................20
4. Time and Budget Plan.....................................................................................................................................21
4.1. Time Plan.................................................................................................................................................21
4.2. Budget plan..................................................................................................................................................21
REFERENCE......................................................................................................................................................... 23
CHAPTER ONE
INTRODUCTION
Incentive pay is based on units produced and provides the clothes connection between individual
effort or performance and individual pay. There are two types of individual incentive system
based on non- rated output. These are price rate system and standard hourly rate (Bernardin,
2008).
Incentive is the total of all rewards provided to employees in turn for their services. The rewards
employees receive may be based on several factors including membership in the organization,
seniority or other elements. To remain competitive organization, seniority or other elements. To
remain competitive organizations are increasingly are rewarding performance outcomes that are
required to achieve its key goals. In determining effective rewards, the uniqueness of employee
must be considered. People have different reasons for working and the most appropriate
incentive package depends in large measure on those reasons. When individuals are being
stretched finically to provide food, shelter and clothing for their families, money may well be the
most important reward (Hollenbeck, et.al, 2004).
Every organization needs resources to exist and to achieve its long run and short run objectives,
form the resources human resource is the greatest influence on the organizations every day
activity. So, to make the organization achieve its objectives making the employees to do their job
up to their maximum ability is essential. To make the employees doing their work until their
maximum ability the organization must motivate them. One factor of motivation that the
organizations use to motivate their employees for increasing their willingness to do their work
and for good organizations performance is incentive.
In order to for ethio teiecom to survive this situation it should retain quality human resources at
all levels that can plan as well as execute the plan. Effective incentive package can help an
organization to achieve its business objectives by attracting and retaining competent people.
In doing so, ethio telecom can maximize its retention and attraction capacity to receive
maximum contribution from its staff.
This study focused to determine the assessment of incentive package on employees’ performance
in ethio telecom in Dire dawa city. financial and non-financial incentives are the tools to
motivate the employees to be engaged with in better performance in their organization.
In spite of the large number of researchers on the relationship between incentive package and
employee’s performance, there appears to be a gap, concerning the study of the role of incentive
packaging system on employee performance. The purpose of this study is to close this gap by
deeply investigating this phenomenon through the relevant literature, shedding more light into
the relationship of incentive packaging system on employee performance and providing
suggestion to the organization as how they can make best use of incentive package system to
make their employees perform well on job.
Few earlier studies by different part of the world tried to show the assessment of incentive
package on employee performance. Amongst Angari A, (1999), Kamocho, K. (1997). Palamer,
W. (2012) and (Lawer and Lathm, 2007) have shown that providing poor incentive, interpersonal
factors and poor benefits leads less employee’s job performance in the organization. So this
paper will attempt to fill this gap by emphasis on the assessments of incentive package and
employees performance on Ethio-telecom. Moreover, to the best of researcher knowledge, there
is no prior study that has been done in the case of Ethio-telecome in Dire Dawa city, the
researcher motivated to study this title on the role of performance appraisal on employee
productivity in the case of ECC-SDCOH in Dire Dawa. This study attempted to answer the
following basic questions.
Therefore, the core issue of the study and the reason why it’s interested in area of the research is,
analyzing the assessment of incentive package and employee job performance on this telecom
Dire Dawa Branch. And also no previous research conducted this title Dire dawa branch. There
is also place, time; knowledge and areal gap between related researchers on this title, so the
researcher was motivated select this title by filling the above research gap. There for the purpose
of this study will be assessing and the assessment of incentive package and employee job
performance.
The research conducted this study, based on the following questions have been answered.
The general objective of the study is to analyze the assessment of incentive package and
employee job performance in Ethio-telecom Dire Dawa town.
The outcome of this study will provide the following benefits to the organization and also to the
researchers. This study will provide useful information for the management of organization to
improve employee job performance through identifying incentive and related problems to take
corrective action. This study will also provide for the researcher to get experience so as to do
other researchers for the future in a better way and also it use for the other researchers to get
information about incentive package and employee job performance and they use it as a
reference.
The scope of this research is to examine the assessment of incentive package and employee job
performance in Ethio telecom Dire Dawa branch. The management and employees of Ethio
telecom will be used to carry out these researchers. Due to time and budget constraints the study
conducted in a single organization i.e. Ethio telecom in Dire Dawa city. Furthermore, the
methodologically of this study will be a descriptive type of research and employed qualitative
approach in order to attain the objective of study and also use sampling technique to get the
required data from the respondents. Data will be collected through primary will be interpreted by
tabulation. Finally, the time frame of the study will be from December 2023 to February 2023.
This study will focus on incentive package to measure employee job performance by excluding
employee commitment about the employee’s performance. In addition to incentive package
there are several variables affecting employee job performance like technology and educational
levels, which did’t cover. And also the researcher collected information only from employees
of the organization by ignoring customers of the organization, but customers can be a source of
information about employee’s performance of the organization. In addition to this the
researcher faced carelessness of respondents to fill the questionnaire.
1.8. Organization of the study
The study is organized in five sections: Chapter one has background of the study, statement of
the problems, the research questions intended to be addressed by the study, objectives,
significance and scope used in the study are presented. Chapter two will be included of literature
review and Chapter three contains methodology that focuses on description of study area,
research approach, research design, data type and data source, sampling techniques and sample
size, method of data collection procedure, data analysis procedure, work plan and budget break
down, references that stated briefly. Chapter four will be contains about presentation, analysis,
and interpretation of data collected. Which include demographic analysis and Results of
respondents collected in terms of questioners that are directly related to each research question
and objectives will be presented. Chapter five deal about conclusions and recommendations.
Recommendations will be suggested and insight for future research direction will be provided in
this research study.
CHAPTER TWO
2. LITERATURE REVIEW
Incentive is the external forces and encouraging factors that lead the individual to work hard,
they are given due to the individual’s excellent performance since he will work hard and
produce more effectively when he feels satisfied in the institution. In addition to these, incentive
can also be defined as the consideration excellent performance assuming that the salary is to
make the worker appreciate the value of job that also satisfies his basic needs in life. (pelizari,
2011).
Generally incentive is variable payment which are made to employee or a group of employees on
the bases of some amount of output or based on the achieved result, (Banioko, 2006).
According to (Buchan, et.al, 2000). There are different types of incentive. These are:-
1. Financial Incentive
It also refers to pay that is contingent based on actual performance of employee, as different
entitlement. Another study of financial incentive shows that some employees are motivated by
rewards and that money is strong motivator for them (freeman, 2010).
In addition, financial incentive do not always deal with direct benefit like pay or wage, bonus
pension, allowances etc. sometimes it could be developed as direct financial benefits such as
subsidized food, accommodation, transportation, educational fees. Child core and so on.
(Buchan and Thompson, 2000).
2. Non-financial incentive
Although incentive are the key for improving employees motivation, Job satisfaction and better
performance, there are a number of non- financial incentives that may represent more effective
means of improving quality of work performance as well as motivational level, (France, et.al
2004).
Non-financial incentive as any means of incentive that do not involve directly with money,
transfer of monetary values equivalent, (Shild, 2002). Non-financial incentive can be tangible or
intangible and usually do not involve direct payment of cash. The authors also argued that in the
organization, a non-financial incentive could be in the form of employee participation in decision
making staff recognition such as issuing a certificate of thanks and appreciation, providing extra
training courses as a part of capacity development programmers, or organizing parties for
distinguished staff, ( Buanchan, 2000).
Moral incentive mostly based on the respect of a human being who has emotional feeling, hopes
and aspiration, (Johnson, 2005).
They argue that the effectiveness of increase for reaching higher behavior outcomes of employee
is based on the degree to which those incentives are perceived to fulfill or satisfy their needs. For
example, if the employee over when mingles desires job autonomy and perceive the amount of
many or benefits are likely motivate them to perform the job.
Since employees satisfaction could be both the cause and outcome of overall performance in
order to motivate employees. (Latham, 2007).
Even when individuals have acquired a strong capacity skills and knowledge. This do not always
transform in to enhanced quality of work performance.
The problem lies not in the lack of skills, but the lack of strong incentive to use skills optimally. (
Kamoche, 1997).
Even though some studies may argue that extrinsic and intrinsic motivation lead employee to
different motivation. Which is gained form an externally influenced environment. While intrinsic
indicates that under certain circumference those who work for an organization are prepared to
undertake a task for their own benefits and those tasks will be performed without financial
rewards payments, (Calder and Staw, 1975).
Incentive system are some important only when manger are willing to reward and accept or
reinforce exceptional or to grant incentive based on different individual performance (Brayson,
2010).
Although, salary budget must be large enough to reward and accepted or reinforce exception
performance. So that, incentive system must be based up on clearly defined and accepted
performance standard efficiently communication to employees. Therefore, the cost associated
with plan administration must be determined. (Banjoko, 2006).
According to, Collins, (2012) employee incentive program are often used in industries where
performance is measurable. Such as sales incentive program provide rewards like cash. Gift
cards or extra time to employee for reaching agreed up on goals. Typically incentives program
have several benefits.
1. Job Performance: it is no secret that job performance has a great success of any business.
When employee are performing their jobs well productivity increase and company profitable
implementing an employee incentive program helps to keep everyone engaged in their work and
motivation program helps to keep everyone engaged in their work and motivation to do well. If
the program is planned and laid out to incentive can last for quite some time,(Dora, 2012).
2. Job satisfaction: anyone who works in any industry likes to feel appreciated and values in
their job. If employees go to work each day feeling through their employer really values their
contribution, they will be motivated to work hard and will never look elsewhere. Incentive
program are one way to improve job satisfaction and create a crappies work environment for
both employers and employees. (Nora, 2012).
3. Team Work: there are many businesses that excel with the employee working together as a
team. When a group of employee is working toward a common goal. It helps everyone a side
their own issues for the goal of the team. Basing incentive programs on team goals rather than
individual goals will encourage employees to work to gather and to pull their own weight
individually. It wise to make the incentive reachable with a said effort. So all members of the
team stay focused and believe that they can reach the goal (palemer. 2012).
4. Company saving: incentive program doesn’t only benefit the employees. The company
can also realize saving that are greater than the rewards they are greater than the rewards they are
fewer sick days taken, fewer recruitment costs and less employees turn over, (, 2012).
According to season, Baum and Tom, 2013 there are four guidelines for creating effective plan.
These are:-
Developing and communicating a formal strategic plan creates a unified direction for the
company that provides a platform for performance expectation, decision making and personnel
development without a formal strategy, it is impossible to design an incentive plan that promotes
behaviors constitute with overall corporate goals and strategy.
The second step is to develop and implement standard best practices within the business.
Developing best practices establishes expectation for all position in the company and enables
management to hold employee accountable for their performance. These best performance
practices vary depending on the type of work, size of company and structure of the organization.
The key is to identify the critical process that affect business and then standardize and
communicate them finally employees must be held accountable for complying with and using the
company’s best practice.
Company performance standard must be met before any individual bonuses are paid employee
works for a company are paid a salary to carry out their job responsibility the expectation is if
everyone performs up to certain standards, the company will be profitable, an owner should
expect to be compensated for the risk that he/she tasks beyond their salary. This means there is a
very is a certain level of financial performance the company must meet before any type of bonus
pool is created. This financial performance is individual and determined by the owner’s
expectation. One the owner feels he/she has been compensated for risk taken, bonus pool is
established employee must understand that is the company doesn’t perform to expected
standards, no individuals bonus are paid out.
According to Freeman, 2010. Employee performance is rating system used in most corporations
to determine the abilities and output of an employee. Performance is divided in to five
components. These are:
Planning, monitoring, developing, rating rewarding in the planning phase/ stage/ goals are set
help measure the employee work time so see if they are able to maintain the goals set or each
new goals.
Monitoring is the phase in which the goals are looked at to see how will one is doing to meet
them. This is can also be a feedback stage in which employers determine if progress is being
seen or not, (Rebcca, 2013).
During developing stage an employee is supposed to improve any poor the performance that has
been seen during the time frame one has been working at the company. The rating is to
summarize the performance based on number system to determine where the scale of persons.
At the end of cycle is rewarding stage. This stage is designed to reward to and recognize
outstanding behavior such as that which is better than expected. Most see employee performance
as a way to appraise the employee for their effectiveness in the company. It is a system designed
on individual performance rather than group performance meaning you are looked at for strength
and weakness to determine where you might improve. (Freeman, 2010).
According to Ruth, 1985, employee performance measurement and determine and employee’s
status or opportunity for advancement for this reason performance management program must
consist of methods that enable fair and accurate assessment of employee performance. To assist
with measuring employee performance, employers first establish performance standards.
Generally Ruth suggests that there are three types of performances measurement techniques
these are:
2. Management by objective
3. Forced ranking
1. Graphic Rating Scale: graphic rating scales are ideal for production oriented work
environments as well as other work places that more at a fast place, Such as those found in the
food and beverage industry. A rating scale consists of a list job duty, performance standards and
scale usually from 1-5 for employee performance. This method for measuring employee
performance requires just like other method, however if can be complemented relatively quickly,
which is a plus for supervision who manage large department or competing assignment in an
environment that leaves little for work force management duties. (Ruth, 1985).
Management by objective starts with identity employee goals and from that point the employee
and her manger lisle the section of management by objective consists of the timelines for
achieving each goal. The employee performance is measured by how many of her goals
accomplished with the designated time frame, (Ruth, 1985).
3. forced ranking:- the top performance comprise roughly 20% of the workforce, average
performances 70% and the lowest performing employees make up about 10% of the work force.
Forced ranking measures employees’ achievement against those of their peers, instead of
comparing the employees current evaluation period against the employee own past performance.
For these reason. Forced ranking leads itself to creating a very competitive work environment
(Banjoko, 2006).
2.1.3. The Relationship of Incentive and Employee Performance
Organizations have resorted into the adoption of relevant and appropriate incentive in order to
encourage employees to elicit their best while increasing effort, (Shild, 2002).
In addition to Yap, Manjuna and Rajesh 2012 also suggest that incentive is used by organization
in order to reach certain goals, encourage a certain behavior and team spirit for collective
awards. Incentive systems are not universally applicable, but are likely to play a role in
enhancing individual effort or performance where the conditions the schemes designed are right.
CHAPTER THREE
3. RESEARCH METHODOLOGY
This research will be conduct in Dire Dawa which found on 452km from capital city of Addis
Ababa. This study will be contacted to the assessment of incentive package and employee job
performance in case of Ethio-telecom in Dire Dawa branch.
The research methodology will use in the study is descriptive research design because the
researcher describes the characteristics of individual’s situation in order to get adequate and
accurate information and also used to obtain information concerning the current status of the
phenomena and to describe "what exists" with respect to variables or conditions in a
situation. In this study the researcher uses qualitative research approach. Which means the
researcher collects open-ended, emerging data with the primary interest of developing themes
from the data. The research plan that will be embraced for this study can be descriptive study that
determined the incentive package of Ethio telecom, Dire Dawa Branch.
3.3. Data Type and Source
To accomplish the study, the researcher will use both primary and secondary types of data. The
researcher collects the primary data from the employee of the organization through
questionnaires and secondary data from annual report book of the organization.
The target population for the researchers to conduct the study will employees of Ethio-telecom in
dire dawa branch. The total numbers of the population of the study is 17. The target population
for this study will employees of the organization who are working at both management and non-
management level out excludes daily workers. Since the researcher will take all the population,
the researcher will not use sample size determination method to determine the number of study
participants. As the total number of the population in this organization is 17. that is considered as
the target population small, which accounts 17, the researcher will simply collect the data from
all employees and this also indicates that the researcher will not use sampling method to select
the study participants. It implies that census method of data collection will be applied.
The researcher will be collected data about the assessment the incentive package and employee
job performance from primary and secondary sources. The data is collected from employee by
using close ended questionnaires and by reading annual report and manual of the organization.
The researcher used quantitative method of analysis; the collected data is analyzing by using
percentage, frequency. After analysis, the researcher tried to present the data in tables and
statement form and finally tried to draw important conclusion based on the analysis information
and give some useful recommendations that might be used for the organization.
4. Time and Budget Plan
This proposal study will be conduct within total of three months. From the month of
December, the title selection, through various advising consultant up-to the month of
February the presentation of the study will be conducted. The activities to be performed
within these three months and their associated time as follow for the year 2023. From the
start to the finalization of the study, the time budget is depicted in the following table.
Month, 2023
Major activities
December January February
Preparatory activities ×
Data analysis ×
This part of the proposal contains different types of expenditure that will be incurred in
conducting the proposed study. The following table shows expenditures of the items with their
associated cost.
3 P a p e r s 100 sheets 5 0 c e n t s 5 0 . 0 0
4 P e n s 3 1 0 b i r r 3 0 . 0 0
5 F l a s h 1 ( 1 6 G B ) 3 0 0 3 0 0 . 0 0
8 Miscellaneous expense - 1 0 0 1 0 0 . 0 0
9 Contingencies (5%) 6 1 . 5 0
. t o t a l c o s t 1 , 2 9 1 . 5 0
1. Angari A, (1999). Incentive systemic and their role in raising the level of performance of
Employee naïf Arab academy for security science.
4. Buachan, J. and Thompson, (2000). Incentive and remuneration in health care a research
reviewed, press: prepared by WHO.
10. Jadlah, (1997). A decrease in quality of work might deprive employees from earning part
or all of their incentive.
11. Lawer, E. and Lathm. G. (2007) work motivation history, theory research and practice
sage publications, Inc.
12. Larozi, M. (1995) individual attitudes working in public institution in Jordan towards job
incentive derasat, humanist studies. Published in Los Angeles, California.
13. Manjuna and Rajesh, (2012). Also suggest that incentive is used by organization in order
to reach certain goals, encourage a certain behavior and team spirit for collective awards.
14. Palamer, W. (2012) “incentive and disincentive: will they affect performance: 2012
international journal of academic research in business and social science.
15. Shild,J. (2002). Performance related pay in Australia in employee relations management.