Transaction mining for fraud detection in ERP systems using Natural

Language Processing Techniques

BY

Mwalye Jesse Emmanuel

REG NO:

SUPERVISOR:

A RESEARCH PROPOSAL SUBMITTED TO THE SCHOOL OF BUSINESS AND

MANAGEMENT IN PARTIAL FULFILLMENT OF THE REQUIREMENTS OF THE
AWARD OF A POST GRADUATE DIPLOMA IN MONITORING AND EVALUATION OF
UGANDA MANAGEMENT INSTITUTE

SEPTEMBER 2020
 DECLARATION

I Nalwoga Belinda, hereby declare that the work contained in this proposal is my own
original work and has not previously in its entirety or part been submitted at any university/
institution for an award.

……………………………….………… .................................................................

Nalwoga Belinda Date

 LISTS OF ABBREVIATIONS AND ACRONYMS

CBO Community Based Organisation

CSO Civil Society Organisation

CVI Content Validity Index

HRM Human Resource Management

HR Human Resource

ILO International Labour Organisation

NGO Non-Governmental Organisation

R&D Research and Development

SP Strategic Planning

SPSS Statistical Package for Social Sciences

 CHAPTER ONE
INTRODUCTION

1.1 Introduction
This study will investigate the relationship between reward system and employee
performance in Centenary Bank Limited This chapter will cover the background of the study,
statement of the problem, purpose, objectives and research questions, significance of the
study and the conceptual framework.

1.2 Background to the study

1.2.1 Historical Background

Fredrick Taylor in his scientific management theory in 1850’s observed a challenge in reward
management and developed concepts of “economic man” to explain effective scientific
management of employees. Taylor argues that man is primarily motivated by economic gain
and therefore the prospect of more pay is sufficient to bring about an increase in the desired
behavior. In the early 20th century the leading management theory was considered to be the
classical or scientific organizational approach. During this era, employees generally were
considered to be rational beings that predominantly were concerned with earning or being
paid and thus the concept of “economic man” arose. Consequently managers at that time
were fully convinced that the only way of achieving motivation and productivity in the
workforce was to compensate them for their work (Latham Ernest 2006). Furthermore in
1914, Henry Ford implemented a profit sharing scheme which improved on the production
and hence employee performance. Henry Ford introduced high wages that led to motivation
of workers and this reduced on staff turnover. The introduction of all these rewards resolved
the high staff turnover and the corporation was able to maintain happy employees in the
belief that happy employees are reliable and motivated employees (Wood and Wood, 2003).

Traditionally human resources were seen to be a burden of cost (Hampton, 1996). Workers
were paid according to piece rate, time rate where one would be paid according to the work
he or she had accomplished in a given time. However in later developments, there evolved
human relations approach in managing employees at work places. Milles (1997) stresses that
the human relations approach is as simple as to treat people as human beings instead of
machines in the productive process, acknowledge their needs to belong and feel important by
listening to and heeding to their complaints where possible, and by involving them in certain
decisions concerning working conditions and other matters. In so doing their morale would
surely improve and would cooperate with management to achieve good production. The new
revolution on rewarding employees has drastically changed to monthly pays and other
benefits. Today, rewarding employees cuts across all organisations. At Centenary Bank,
Entebbe Road Branch, both financial and non-financial rewards are provided to the
employees. Financial rewards include allowances, and bonus payments to individuals. Non-
financial rewards include; recognition awards such as promotion, praise, medical fees,
training, airtime, housing allowances, paid leave, job rotation and added responsibility.
However the effects of reward systems on employee performance need to be investigated for
one to clearly determine the relationship that exists between the two variables.

1.2.2 Theoretical Background

The study will employ two theories; Herzberg’s two factor theory of motivation and
Abraham Maslow’s needs theory of motivation. Herzberg’s two factor theory of motivation is
a content theory of motivation. Content theories of motivation explain the factors that
motivate people by determining and satisfying their specific needs, as well as the goals and
efforts undergone to satisfy these motivators. Herzberg (1959) shows critical incidents when
workers felt either very good or very bad about their jobs. An analysis of such incidents led to
the development of two sets of factors, extrinsic and intrinsic. Herzberg found that these two
sets of factors were directly linked to job satisfaction and dissatisfaction. He found that
extrinsic rewards relate to the job environment and job context such as quality of supervision,
working conditions, level of pay, company policies and relations with the co-workers. He
further says that if extrinsic factors are absent, job dissatisfaction is likely to occur and
eventually leading to low motivation among staff. Herzberg further maintains that intrinsic
rewards relate to the job itself. For example, its complexity, level of importance within the
organization as well as recognition and advancement opportunities. The presence of intrinsic
factors leads to satisfaction and motivation. This theory will be used in this study because
both of these two factors are of equal importance in explaining employee motivation and
performance at Centenary Bank, Entebbe Road Branch.

The study will also employ the Hierarchy of need theory by Abraham Maslow. Abraham
Maslow carried out his investigations into human behavior between 1939 and 1943. Maslow
suggested that there are five sets of goals, that may be called basic, needs. These are;
physiological, safety, love, esteem and self-actualization or self-fulfillment. He arranged
these into a series of different levels or the order of importance of these basic needs. Man’s
basic needs are physiological, for example hunger, thirst, sleep, etc. when these are satisfied
they are replaced by safety needs reflecting his desire for protection against danger or
deprivation, these in turn, when satisfied, there is the esteem needs, the desire for self-esteem
and self-respect, which are affected by a person standing reputation and his need for
recognition and appreciation. Finally individual have a need for self-actualization or a desire
for self-fulfillment that is an urge by individuals for self-development, creativity and job
satisfaction. In the past management rewards system have attempted to satisfy an
individual’s lower level needs to safety and physiological security, for protection against
deprivation and the threat to a worker or his family. This theory will be employed because it
will help in identifying the needs of the employees and determines which ones once satisfied
can make them motivated and improve on their work performance at Centenary Bank.

1.2.3 Conceptual Background

According to Sertain (2011), reward is the giving of a token of appreciation to an individual

for the good work done. Pigors and Myers (2011) “reward” is looked at as a process that
provides a wage payment that is related to the effort expended or the contribution made by
the worker. For purposes of this study, “reward factors” refers to both intrinsic and extrinsic
motivators. The “intrinsic rewards” will include; promotion, responsibility, recognition,
personal, growth/achievement and career advancement while extrinsic reward will include;
job security, physical working conditions, company policies, salaries and management
support. According to Cox (2009), performance refers to the extent to which employees’
interests and values are congruent with the company i.e. employees think of themselves as
belonging to the organization and derive value from their membership. “Employee
performance” refers to the output in terms of quantity and quality that helps the organization
to realize its set objectives. For purposes of this study “employee performance” will be
measured in terms of the indicators of performance which are meeting deadlines, quality of
work done, quantity of work done, cost and client’s satisfaction.

1.2.4 Contextual Background

Centenary Bank is a profit organization that started as a Microfinance Institution and later
transformed into a Bank in 1998. Its core mandate is to strengthen offer affordable banking
services to the general public (Centenary Bank Report, 2016). Much as Centenary Bank is
trying to motivate its workers intrinsically and extrinsically, the employee benefits at
Centenary Bank are still dissatisfactory leading to reduced levels of employee motivation.
This has led to a decline in employee performance in terms of cost, time of accomplishing
duties and quality of work done. The employees have time and again complained about the
poor remuneration of staff.

The staff have a feeling that what is paid is not commensurate to the services rendered to the
Bank (Ssenoga, 2014). Low employee motivation is reflected in the deteriorating standards
of professional conduct such as absenteeism and poor task preparation. Despite the Bank
management’s effort to improve on the employees’ conditions of service in response to the
recommendations made by Ministry of Gender, Labour and Social Welfare, the morale of
employees and commitment to their work is still dissatisfactory (Centenary Bank Annual
Report, 2015). There is growing concern over low employee motivation in Centenary Bank
due to poor fringe benefits, poor employee recognition and absence of study leave grants
(Kiyaga, 2015). The Chairman Centenary Bank cited poor time management and declining
work quality as some of the gaps in research institutions in the country that are yet to be
bridged with respect to employee performance in the institution(Centenary Bank Report,
2016).

1.3 Problem Statement

Banks play increasingly important roles in the delivery of financial services in developing
countries. However, there seems to be lack of commitments in improving employees’
performance in banks and loss of strategic direction due to insufficient performance has
become issues for debate in various banks. In Centenary Bank, Entebbe Road Branch, the
staffs are rewarded with staff salaries only and this has caused delay in submitting reports
among others and this seems to indicate serious drop in employees’ performance. Good
performance level is one area where all organizations strive for and if the level of
performance is low, the organization strategic directions and the objectives may not be
achieved. For Centenary Bank failure to address these problems may lead to poor service
delivery to the community in northern Uganda. In an attempt to mitigate the problem,
Centenary Bank, Entebbe Road Branch management should put measure by providing
allowances to staff, increase staff salaries and encourage staff motivation. Studies have been
carried out in for-profit organizations on whether rewards could have any influence on
employees’ performance (Boachie-Mensah & Dogba, 2011; ditto), however, little has been
done about the influence of organizational rewards on the performance of employees in non-
for-profit organizations especially in Centenary Bank. This study therefore examines the
relationship between non-monetary and monetary rewards and employees performance in
Centenary Bank, Entebbe Road Branch.

1.4. Purpose of the study

The purpose of the study will be to examine the relationship between non-monetary /
monetary rewards and employees performance in Centenary Bank, Entebbe Branch.

1.4.1. Objectives of the study

i. To examine employees satisfaction with their rewards in Centenary Bank, Entebbe
Branch.
ii. To examine the employees performance in Centenary Bank, Entebbe Branch.
iii. To establish the relationship between employees reward satisfaction and their
performance in Centenary Bank, Entebbe Branch.

1.4.2. Research questions

This research will address the following questions:
i. What is the level of employee’s satisfaction in Centenary Bank, Entebbe Branch?
ii. What is the level of employee’s performance in Centenary Bank, Entebbe Branch?
iii. What is the level of employee’s relationship in Centenary Bank, Entebbe Branch?
1.4.3 Research Hypothesis
Financial rewards affect employee performance at Centenary Bank, Entebbe Road Branch.
Non financial rewards affect employee performance at Centenary Bank, Entebbe Road
Branch.
Other factors affect employee performance at Centenary Bank, Entebbe Road Branch.

1.5. Scope of the study

1.5.1 Geographical scope

The study will be carried out from Centenary Bank; Entebbe Road Branch is located on Plot
7, Entebbe Road Talenta House, Plot 1892, Kampala. Entebbe Road-256 Kampala.

1.5.2 Content scope

This study will examine the relationship between financial/non-financial rewards and
performance of employees of Centenary Bank, Entebbe Road Branch. The independent
variables will be reward systems (financial reward and non-monetary reward) and the
dependent variable will be employees’ performance. The intervening variable will include;
variables such as gender, age and work condition.

1.5.3 Time Scope

The study will consider the period of four years from 2014-2018. This period will be
considered appropriate because despite the implementation of reward policy at Centenary
Bank; Entebbe Road Branch, there has been decline in performance of Centenary Bank;
Entebbe Road Branch.

1.6. Significance of the study

It is hoped that the study will be significant to different stakeholders in the following ways:

Management of Centenary Bank; This shall help the management of Centenary Bank,
Entebbe Road Branch to realign itself, as far as performance appraisal was concerned so as to
get the best out of it.

Staff of Centenary Bank; This study shall help staff to understand and appreciate the
performance appraisal system and the relevance of an objective, systematic and effective
performance appraisal.

Academics: The study findings will improve on the current existing body of knowledge
regarding reward systems and performance of commercial banks.

Researcher: The study if well accomplished will help the researcher to finalise a
Postgraduate Diploma in Monitoring and Evaluation at Uganda Management Institute.
1.7. Conceptual framework
Independent Variables Dependent Variable
Non-Monetary Reward

 Recognition by supervisor Employee’s performance

 Staff promotion
 Open staff development  Completing assign tasks
 Level of commitment to
work
Monetary Reward  Personal discipline
 Helping group/ colleague
 Cash bonus
at work
 Lunch allowance
 Leave allowance
 Salary

 Gender
Moderator Variables
 Age
 Working condition

Source: Adapted from Herzberg et al (1959) motivation theory (Basset-Jones & Lloyd, 2005)

The conceptual framework in Fig. 1 identifies the various reward factors that can influence
employees’ performance in Centenary Bank, Entebbe Road Branch. The independent
variables are reward systems (non monetary reward) and the dependent variables are
employee performances. The conceptual framework also identifies the moderator variables of
age, gender, organization policy, employees’ experience and organization working condition
which are assumed to affect the relationship between independent variables (non-monetary
rewards and monetary rewards) and dependent variable (employees’ performance).

1.7. Operational Definitions

Employee Performance: Is the positive attitude towards work as seen by the employee’s
behaviour and actions such as quality of work, timely
accomplishment of task competence etc.
Job satisfaction: Is the willingness and drives in an employee to want to stay,
report to work early, report on duty regularly and do overtime.
Monetary reward: Is a cash reward/incentives given in recognition of employee
performance
Non-monetary reward: Is a non-cash reward/incentives given in recognition of employee
performance
Reward: Is the ability and willingness to recognize employee, increase
salaries, promote employees and award scholarships etc.
 CHAPTER TWO
LITERATURE REVIEW

2.1 Introduction
This chapter presents the review of related work on rewards and employees performance.
Sources such as journals and books were used in this literature review. The chapter presents
the theoretical overview of Herzberg’s two-factor theory of motivation, non-monetary
rewards and employees performance, monetary rewards and employees performance,
employees’ performance in organization and a brief conclusion of the chapter.

2.2 Theoretical Framework

2.2. 1 The Two Factor Theory

Herzberg’s two factor theory of motivation is a content theory of motivation. Content theories
of motivation explain the factors that motivate people by determining and satisfying their
specific needs, as well as the goals and efforts undergone to satisfy these motivators.
Herzberg (1959) shows critical incidents when workers felt either very good or very bad
about their jobs. An analysis of such incidents led to the development of two sets of factors,
extrinsic and intrinsic. Herzberg found that these two sets of factors were directly linked to
job satisfaction and dissatisfaction. He found that extrinsic rewards relate to the job
environment and job context such as quality of supervision, working conditions, level of pay,
company policies and relations with the co-workers. He further says that if extrinsic factors
are absent, job dissatisfaction is likely to occur and eventually leading to low motivation
among staff. Herzberg further maintains that intrinsic rewards relate to the job itself. For
example, its complexity, level of importance within the organization as well as recognition
and advancement opportunities. The presence of intrinsic factors leads to satisfaction and
motivation. Armstrong (1996) opines that both of these factors are of equal importance in
explaining employee motivation. A worker’s satisfaction with extrinsic factors would result
in average performance and high level of output and serve to prevent dissatisfaction but this
would not by itself create positive attitude or motivation to work. Therefore organizations
ought to enrich the content of work that employees are tasked to perform.
2.2.2 Abraham Maslow’s Hierarchy of needs theory

Abraham Maslow carried out his investigations into human behavior between 1939 and 1943.
Maslow suggested that there are five sets of goals, that may be called basic, needs. These are;
physiological, safety, love, esteem and self-actualization or self-fulfillment. He arranged
these into a series of different levels or the order of importance of these basic needs. Man’s
basic needs are physiological, for example hunger, thirst, sleep, etc. when these are satisfied
they are replaced by safety needs reflecting his desire for protection against danger or
deprivation, these in turn, when satisfied, there is the esteem needs, the desire for self-esteem
and self-respect, which are affected by a person standing reputation and his need for
recognition and appreciation. Finally individual have a need for self-actualization or a desire
for self-fulfillment that is an urge by individuals for self-development, creativity and job
satisfaction. In the past management rewards system have attempted to satisfy an
individual’s lower level needs to safety and physiological security, for protection against
deprivation and the threat to a worker or his family. However, management reward systems
are now or should be, endeavoring to satisfy the individual’s higher level needs for esteem
and self-fulfillment. Researchers have shown that this does not necessarily happen (Aamodt,
2007). The main strength of this theory is the recognition and identification of individual
needs for the purpose of motivating behavior. It provides managers with an awareness of
range of human needs. Besides individual differences, managers in organizations can make
some predictions about what are prominent among their employees and thus use the right
tools to motivate them (Bow ditch et al 1997).

2.3. Related Literature

2.3.1. Non-Monetary Rewards and Employees Performance

According to Khan (2005), Non-monetary reward is possible in organisations depending on
how the program is constructed Poorly designed rewards program results in to poor reward
system for the employees. The purpose of non-monetary incentives is to reward employee for
performance through opportunities such as flexible work hours, training, pleasant work
environment and sabbatical (Ballentin et al, 2009). Job itself such as job tasks, challenging
and interesting job, praise and recognition are among the non-monetary rewards that improve
performance in organisations (Laakso, 2012). Performance feedbacks in organization are also
good measures for motivating employees (Latt, 2008).
FRONTERA (2007) found management and staff development, job rotation through
secondment, assessment and development centre, employee performance recognition
schemes, participatory processes and mechanism, career development, professional and
academic studies, promotion and transfer, performance management and development of
networks as some of the non-monetary rewards in organizations. In addition, respect for
every individual and being friendly to staff, having clear communication with the staff,
clarifying the role of the individual in relation to the objective of the organisation and
providing continual professional development were some of the best practices in managing
employees’ motivation in NGOs to improve job performance in Honduras (FRONTERA,
2007). The decision to use non-monetary rewards was prioritise because of the challenges
associated with monetary rewards. Kohn (1993) argues that monetary incentives encourage
compliance rather than risk-taking because most rewards are based only on performance and
as a result, employees are discouraged from being creative in the workplace (Ballentine et al.
2012). On the other hand, Isaacs (2008) argued that non-monetary incentives are integral to
the social and managerial aspects of the organization’s improvement programme and should
be encourage. It is also noted by Charity and Timinepere (2011) that non-monetary reward
has a significant positive effect on employee performance in organization.

Silverman (2004) noted that non-monetary reward is concerned with acknowledging the
performance of employees, for examples, the manager saying thank you, writing formally to
record thanks, public appreciation and declaring individual employee of the year or month.
Some can be by providing travel vouchers and use of recreational facilities. Non-monetary
reward is a non-cash award given in recognition of performance. Marshall (1999) agreed with
FRONTERA (2007) and Silverman (2004) and suggests the following rewards in
Organization which can be applied to affect positively the performance of employees:
immediate verbal or written praise; recognition banquets-employee of the year, and so on.
Recognition posters-employee of the year, gift certificates, improved office space, trips,
lunches, subscriptions to magazines, charitable contributions in employee’s name. Non-
monetary rewards hinge in an environment where personal involvement of employees for
work is higher. Ihi, Vussen and Piller (2012) claimed that if personal involvement and need
in the innovation is high, an expectation of monetary rewards is deemed less important
because people expect to better internalise collective outcomes, and if people are supposed to
allocate effort to collectively oriented activities the expectation of monetary rewards is less
effectives because it induces rivalry among people.
2.3.2. Monetary Rewards and Employees Performance
According to FRONTERA (2007), managers of all organizations, public, private and non-
governmental organizations are constantly searching for ways to create a motivational
environment where employees work at their optimal levels to accomplish organizational
objectives and goals. Among the motivators managers are employing are financial incentives.
Monetary rewards (incentives) are to reward employees for excellent job performance
through money. Ballentine et al. (2012) noted among others monetary rewards such as profit
sharing, project bonuses, stock options and warrants, scheduled bonuses (e.g. Christmas and
performance-linked), and additional paid vacation time. Indeed studies have shown that using
monetary incentives by managers can improve employees’ motivation and performance.

In a review, Taljaard (2003) found that money is considered important reward because: of the
goods and services that it will purchase, it can be regarded as a status symbol, it represents to
employees what their employers think of them. Employees can get satisfaction or
dissatisfaction with pay if: they feel their rate of pay or increase is fair, rewards are
commensurate with ability, contribution and value to the organization and if employees are
satisfied with other aspects such as status and promotion prospects.

Pay has a great impact in establishing employees’ diligence and commitment, money is
considered to be key motivator for employees (Latt, 2008), which in turn is translated in to
better performance by the employees. In a review, Mudor and Todksoon (2011) noted that
good pay practice is very significant for the organizations to retain higher performance. They
noted that organization with higher wages can raise performance and productivity of the
organization. Financial incentives are effectives – money matters to most of us and it
motivates us because of the symbolic and instrumental value it bears (Laakso, 2012).

Omolayo and Owolabi (2007) found that monetary incentives to employees if the
organization want to realise and achieve its goals and objectives. Monetary rewards affect the
commitment level of employees and if it is inadequate, absenteeism, lateness, low
performance, feeling of grievances and employee turnover will crop up. Different
Organizations have different ways of rewarding their employees and pay/salary is the major
kinds of reward Organizations gives to their employees. Employees trade their labour/work to
rewards from their employers. Probably, the most important reward is money. The goals of
compensation administration are to design a cost effective pay structure that will attract and
retain competent employees. There are indicators of lack of performance such as late coming,
delay in submitting reports and absenteeism among staff of Centenary. The question is how
would monetary rewards restore the likely drop in performance among the staff – it is this
reason why the current study will tried and examine the relationship between monetary
rewards and employees performance in Centenary Bank, Entebbe Road Branch.

2.3.3. Employee Performance in Organization

Armstrong Aslam, et al, (2011) view performance as a record of outcomes produced by an
individual in a specified activity given in a specific period of time. Performance is the
outcomes of work because they provide the strongest linkage to the strategic goals of the
organization; customer satisfaction and economic goals. Roberts, (2003) asserts that
performance of an organization is measured in its ability to achieve its set objectives in time
through the effective utilization of resources at its disposal. Performance may be used to
define what an organization or an employee has accomplished with respect to process results,
relevancies, and successes. Organizational performance and its resultant efficiency and
effectiveness can only be achieved when individuals are continuously appraised and
evaluated. The inability of organization to install an effective performance appraisal strategy
has hindered them from achieving competitive advantage which they require more now than
ever before (Armstrong, 2009).

Measuring Organization Performance

Toppo, et al, (2012) defines an organization as a social entity that is goal directed and
deliberately structured. When reviewing organizational performance, the following aspects
are considered where; Armstrong, (2009), asserts that organizations may be assessed basing
on output in terms of quality, quantity and timeliness. According to Fanuel, (2004), the
concept of competencies where these are knowledge and skills employees require performing
the job satisfactorily and including initiative, team work commitment, and customer
awareness. Appraisal processes are not systematic and regular and often characterized by
personal influences occasioned by organizations preoccupation to use confidential appraisal
system which hinders objectivity and fairness. Often organizations ignore management by
objectives, critical incidents to personal prejudices (Law, 2007). This is retrogressive as it
affects the overall performance of the individual. 360 degrees appraisal method whereby
superiors appraise their subordinates, subordinates appraise their superior and the appraisee
appraise himself or herself and the average of all the appraisal taken to arrive at the final
appraisal outcome should now be considered by organizations(Chiang, 2010).
2.3.4. Summary of Literature
Literature reviewed revealed that organizations used both non-monetary and monetary
incentives with the view of improving performance of their employees. However, the
effectiveness of such rewards depends to a larger extent on how management design the
reward system (Corporate Leadership Councils, 2006). Effective reward system is that which
result into meeting the goals of the organization. Poorly designed reward system on the other
hand results in to drop in morale and performance in organization. Though studies indicates
mixtures of results on influence non-monetary reward and monetary reward on employees
performance, the current study reveal that non-monetary rewards have more influence on
employees performance level that monetary rewards.
 CHAPTER THREE
METHODOLOGY

3.0. Introduction

The chapter presents the methodology used in conducting the study. It reflects the study
research design, population of the study, sampling, data collection methods and instruments,
data analysis and ethical issues.

3.1. Research Design

The study will adopt a cross sectional survey design. A cross-sectional design refers to the
type of research design where data can be collected from different respondents at a single
point in time (Kothari, 2005). This is because the data will be collected at one point in time.
The study will use both qualitative and quantitative research approaches. The qualitative
approach will be used to measure the variables that could not be quantified. The quantitative
approach will be used to analyze quantitative data obtained through questionnaire in order to
make sense out of it. This research design is preferred because it is cheap in terms of time and
resources as the data is collected simultaneously from respondents at single point in time. It
also enables the researcher to triangulate information from study questionnaires and
interviews.

3.2. Study Population

According to the human resource manual of Centenary Bank, there are over 100 employees.
This study targeted both the staff and customers of Centenary Bank Entebbe road branch.
They will include; managers, loan officers and banking officers of Centenary Bank, Entebbe
Road Branch. All the selected employees filled the questionnaires adequately. Eighty (60)
individuals will be selected as target population for this study.

3.3. Determination of the Sample Size

The current study targeted 60 employees of Centenary Bank Limited. The sample size for the
study was 52. The sample size will be arrived at by using Morgan and Krejcie (1970) table of
sample size (Barifaijo et al., 2010). The table indicates that at 95% level of certainty, 95% out
of 100 times the true result was within the margin of error and a 5% chance that the true
value will be outside the range. The table will guide the researcher in selecting appropriate
sample size which corresponds with the total population of Centenary Bank which stand at
100 employees. Therefore, according to Morgan and Krejcie (1970) table of sample size, a
population of 60 goes with sample size of 52.

3.3.1. Sampling Techniques and Procedure

Purposive sampling technique will be used to select respondents for this study. Purposive
sampling will be suitable in this study because the study is informed by existing theory and
the data collected have some qualitative data. It is also chosen because the sample will be
small (Amin, 2005). The advantage of this sampling method is that it enables the use of both
quantitative and qualitative approaches (Kombo & Tromp, 2006).

3.4. Data Collection Methods

This study will use both quantitative and qualitative data collection methods to collect data to
answer the research questions. Both questionnaire and interview methods will be used for
data collection purposes. For qualitative, interviews and documentary reviews will be
employed while for quantitative, a self administered interviews will be employed.

3.4.1 Questionnaire Survey

According to Amin (2005), questionnaire is a data collection instrument used to gather data
over a large sample or number of respondents. This study will employ a structured
questionnaire following guidelines by various researchers such as Amin (2005), Cresswell
(2012) and Kothari (2003). The first section of the instrument will address issues of
demographic data, section two will focus on reward system and section three will address
employee performance. In each section, the respondents will be given clear instructions on
how to complete the item.
3.4.2 Interviews
The study will also employ interview methods. A structured interview guide will be used
for the administrative staffs to stimulate them into detailed discussion of work motivation
and employee performance. According to Amin (2005), structured interviews are useful
not only because they show excellent validity in meta-analytic research. Additionally,
structured interviews provide a chance to probe the answers of the management and
understand precisely what they mean. Interview can help to save time to select the best
suitable candidate. Within a very short time communication can be accomplished with the
interview (Kothari, 2005).
3.4.3 Focus Group Discussion

According to Amin (2005), a focus group discussion involves gathering people from
similar backgrounds or experiences together to discuss a specific topic of interest. It is a
form of qualitative research where questions are asked about their perceptions attitudes,
beliefs, opinion or ideas. The researcher will hold focus group discussions with the support
staff and these will include cleaners, messengers, and drivers in order to share their views,
experiences and attitudes on their performance at the district. They will be grouped
according to gender for them to air out their views freely. These focus group discussions
have in-depth and complexity of responses and group members can often stimulate new
thoughts among themselves, which might have not happened. On the contrary, FGDs are
tome consuming and some respondents will not comfortable about speaking openly.

3.5. Data Collection Instruments

This study will use multiple research instruments. Both questionnaire and interview methods
will be used for gathering data from the respondents.

3.5.1 Questionnaire Guide

A questionnaire is a set of questions for gathering information from individuals/ respondents.

Questionnaires can be administered by mail, telephone. The questioning method is used to
gather data about knowledge, beliefs, attitudes, and behaviors. It also protects privacy of
respondents. The questionnaire will be self-administered to collect data from staff relating to
reward systems and performance of centenary bank Entebbe road branch. Self-administered
questionnaires will be used to collect data from the respondents.

3.5.2 Documentary Review Guide

Existing records often provide insights into a setting and/or group of people that cannot be
observed or noted in another way. The document review method will include; reviewing
existing literature, publications of other researchers, text books, journals and other
correspondences, reports and minutes, Papers presented in seminars and workshops were
reviewed to back up primary data. This method will be used to gather secondary data to
supplement primary data.
3.5.3 Interview Guide
An interview guide will help the researcher conduct formal interviews with respondents in
Centenary Bank, Entebbe Road Branch to obtain information on reward systems and
performance of centenary bank Entebbe road branch. This will give the respondents
opportunity to provide elaborate answers to questions and also seek for clarification on some
questions that were not clear. Some of the questions that will be asked with questionnaires
will also be asked in the interview guide. This will enable the researcher to triangulate the
data collected. Kothari, (2004) revealed that the responses got from the interview are
spontaneous in that the respondent has no chance of consulting anybody else before
answering.

3.6. Validity and Reliability

3.6.1 Validity

The validity of the research instrument refers to the degree to which an instrument measures what it
sets out to measure. Experts in the field of management including my academic supervisor will be
consulted to review the tool items to ensure its consistency with the study objectives and the literature
review. The experts will rate each item as either relevant or not relevant. The validity of the research
instrument items will be estimated by using the Content Validity Index (CVI). C.V.I=Items rated
relevant by both judges divided by the total number of items in the questionnaire as shown
hereinafter.

CVI=No. of items rated relevant

Total no. of items

A value of CVI above 0.7 will be considered for a valid research instrument as recommended by other
scholars (Kothari, 2005).

3.6.2 Reliability

Reliability is defined by Vogt (2007) as the consistency of either measurement or design to

give the same conclusions if used at different times or by different scholars. The first step
in ensuring reliability will be by providing clear operational definitions of the variables
under study. Thereafter, internal consistency will be measured through internal
consistency reliability (Sekaran & Bougie, 2010) as well as split-half reliability using
Cronbach‘s alpha. If R2 (Alpha) value equals to 0.7 and above, then the instrument will be
considered satisfactory (Cronbach, 1951; and Sekaran & Bougie, 2010). After the data
collection, reliability analysis will be done and the findings for each of the variables will
be presented.

3.7 Procedure of Data Collection

Using an introduction letter from UMI, the researcher will obtain approval from Centenary
Bank, Entebbe Road Branch authorities to conduct the research. The researcher will then
pilot the questionnaire on a sample of five respondents and the interview guide on two
respondents. The researcher will then use the comments from these respondents to improve
the questionnaire and interview guide.

The researcher will then use the sampling frame which will be developed as shown above to
distribute questionnaires to all officers, assistants and support staff in the sample. These
individuals will be instructed by the researcher in a ten minutes session on how to
independently fill the questionnaire since the researcher felt they were literate enough to do
so. The researcher will use the sampling frame to collect filled in questionnaires from
respondents or through their supervisors. The researcher will then interview the General
Manager and Heads of Departments, using the interview guide to take down notes. Filled
questionnaires will be collected and numbered in preparation for data analysis.

3.8. Data Analysis

3.8.1 Quantitative Data Analysis

Data from the field will be cleaned, compiled, sorted, edited and coded to have the required
quality, accuracy and completeness. It will be entered into the computer using the Statistical
Package for Social Sciences (SPSS V18.0) for analysis. The data will be analyzed according
to the research questions objective by objective. Frequency tabulations will be used to
describe sample characteristics using descriptive statistics of mean, percentage and
frequencies. Inferential statistics of Pearson’s Correlation Coefficient will be used to
establish the strength of significance between the study variables. The regression analysis
will be used to examine the relationship between community participation and sustainability.

3.8.2 Qualitative Data Analysis

Data in form of recorded interviews will be analyzed using interpretational analysis. It will
be transcribed and themes will be extracted from the transcription. The researcher will make
analysis and draw conclusions from the data that will be generated from the field.
3.9 Measurement of variables
The researcher measured the variables using the Likert scale where statements were followed
by five category responses continuum of strongly agree, agree, undecided, disagree, and
strongly disagree. The respondent selected the best response that best described the reaction.
Then responses were weighed from 1 to 5 and averaged for all items. The researcher used this
measurement because of its flexibility and ease in its construction (Amin, 2005). Also the
qualitative data was generated through interviews with the respondents on the relevant
aspects of the research.

3.10 Ethical Considerations

This study will commence after an introductory letter is obtained from Uganda Management
Institute. The researcher will explain the reasons for research, seeking consent from the
respondents and the right of the respondents either to accept or refuse will be respected.
Giving an assurance to the respondents that their reputations and that of the community will
be accorded due respect and confidentiality was much emphasized. This will be ensured
through requesting them to be anonymous in their responses and using the responses as
provided for by the respondents.
 REFERENCE

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Uganda: A Report to the Government of Uganda (Research report). Available online,
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Agaba, A.M.O and Ushie, E.M. (2010). Motivational Incentives and Staff Turnover in the
Hospitality Industry in Cross River State, Nigeria. Global Journal of Management
and Business Research, Vol. 8 ISN (10), pp 18-28.

Ajila, C. & Abiola, A. (2004). Influence of rewards on workers performance in an

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Allan, B., G. (2004). Elementary Statistics: A Step by Step Approach, 5th ed. Boston:
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Boachie-Mensah, F & Dogbe, O.D. (2011). Performance-based pay as a motivational tool for
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Brink, P.J. and Wood, M.J. (1998). Advanced design in nursing research, 2 nd ed. London:
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Leadership. M.E Sharpe, New York.

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 Appendix A

Questionnaire for Employees of Centenary Bank

Dear Respondent,

The following questionnaire is designed to gather data on the relationship between rewards
and employees performance in Centenary Bank, Entebbe Road Branch. No individual
information about the respondents will be published or disclosed. Your responses will be
combined with that of others and reported as grouped data. This information is being
gathered and analyzed as part of the requirements for completing my Postgraduate Diploma.

Thank you for taking time to fill in this questionnaire to enhance our understanding of the
relationship between rewards and employees performance in Centenary Bank, Entebbe Road
Branch.

Sincerely,

Belinda Nalwoga
SECTION A:

(1). Gender: Male Female

(2). Age bracket:

Below 30 years 31 – 40 years 41 – 50 years

51 years and above

(3). Education qualification

‘O” Level “A” Level Diploma Degree

Others please specify...............................................................................

(4). Year of service

0 – 5 years 6 - 10 years 11 years and above

(5). How favourable is your working condition?

Not favourable Favourable Very favourable

SECTION B:

(6). Please read each item in the Table below and carefully indicate by TICKING your
agreement or disagreement on satisfaction with non-monetary rewards in Centenary Bank,
Entebbe Road Branch.

Key: 1=strongly agree (SA), 2=agree (A), 3=not sure (NS), 4=disagree (D)
5=strongly disagree (SD)

Statement SA A NS D SD

My work is highly recognised by my supervisor          

Promotion is for every staff in Centenary          

Centenary has a clear communication process          

Feed back is frequently given to employees          

staff development is open for all employees          

Good interpersonal relationship exist in Centenary          

Centenary formally recognise good performance          

Centenary maintain an open door policy          

Centenary provide flexible work hours for staff          

Caritas has pleasant work environment

Centenary encourage participation by staff          

(7). Please read each item in the Table below and carefully indicate by TICKING your
agreement or disagreement on satisfaction with monetary rewards in Centenary

Key: 1=strongly agree (SA), 2=agree (A), 3=not sure (NS), 4=disagree (D)
5=strongly disagree (SD)

Statement SA A NS D SD

Staff are paid timely in Centenary          

Employee is paid exact money in the contract agreement          

Payment is in line with my tasks          

Centenary provide frequent salary increment          

Salary I get meets all my basic needs          

Centenary give cash bonus to staff          

Volunteers are well paid by Centenary          

Employee with high academic qualification get high salary          

Employee holding higher position get higher salary          

Employees are given leave allowance in cash form

Employees are paid cash to go for recreational activities          

Lunch allowance is paid to all employees          

(8). Please read each item in the Table below and carefully indicate by TICKING your
agreement or disagreement on employees’ performance in Centenary Bank.

Key: 1=strongly agree (SA), 2=agree (A), 3=not sure (NS), 4=disagree (D)
5=strongly disagree (SD)

Statement SA A NS D SD

I complete my tasks independently with little intervention          

I am punctual at my work station          

I submit my report within assigned time          

I attend all meetings in my department          

I complete all my project work in time          

I finish all community work as assigned          

I share resources with other staff          

My work satisfy my supervisor

I have good communication and interpersonal skills          

My response to emergency is excellence          

(9). what are some of the major problems which affect your performance while working with
Centenary, Entebbe Road Branch.

......................................................................................................................................................
......................................................................................................................................................
. (10). in your own opinions, how do you think these problems can be solved?

......................................................................................................................................................
......................................................................................................................................................
......................................................................................................................................................

THANK YOU
 Appendix B

Interview Schedule for Key Informants:

This interview is designed to gather data on the relationship between rewards and employees
performance in Centenary Bank. No individual information about the respondents will be
published or disclosed. Your responses will be combined with that of others and reported as
grouped data. This information is being gathered and analyzed as part of the requirements for
completing my master’s degree which is purely academic.

Thank you for taking time to respond to the interview as it will enhance our understanding of
the relationship between rewards and employees performance in Centenary Bank.

Sincerely,

Belinda Nalwoga

1. Work Station
2. How do you describe the general work condition in Centenary?
3. How do you describe the general level if satisfaction of staff with:-
 Non-monetary rewards
 Monetary rewards
4. In your opinion which of the rewards system is better for Centenary
5. What are your opinions on the level of performance of staff in Centenary?
6. What are your general comments on the effects of non-monetary/ monetary rewards
on employees’ performance levels in Centenary

Thank you very much for your time

 Appendix C

Challenges and solutions to employees’ performance Coding Sheet

1 – Challenges

No Code Frequenc
. Challenges Facing Performance y
1 DD Delay in the release of funds by donors 14
2 PC Lack of proper communication to the staff 9
3 TP Inadequate transport facilities 8
4 DS Delay in paying salary 7
5 IM Inadequate motivation 7
6 NAL No allowance 5
7 ISA Inadequate salary 4
8 PRC Poor road condition 3
9 PICT Poor information and communication technology 3
10 LSD Lack of staff development 3
11 SAR Increment of salary is not regular 2
12 SP There is no staff promotion 2
13 WE Work equipment not up to date 2

2- Solutions

Frequenc
No. Code Solutions to Challenges Facing Performance y
1 CM Proper communication should be establish by organization 7
2 TP Maintaining transport equipments 5
3 LO More lobbying for funds 4
4 LA Provide lunch allowance to staff 3
5 MO Strengthen rewards to motivate staff 3
6 PL Proper planning should be in place 3
7 SD Staff development must be taken seriously 3
8 CA Contract agreement should be followed 2
9 ME Regular staff meeting to iron out challenges 2
Appendix D

Summary of Interview Transcript

(1)- How do you describe the general work condition in Centenary Bank?

 Team spirit exist within, Centenary however there are some staff who may apparently
do not understand their job description.
  There is marked improvement in the working condition depending on project
availability
 Work condition is supportive good and encouraging at all level among staff
 The general work condition is fair as there is good working relationship, there is
improvement in payment of salaries but there is need for staff development
 The general work condition is good and the working environment is better. The only
area for improvement is transport facilities.

(2)- How do you describe the general level of satisfaction with non-monetary rewards?

 Non-monetary rewards should take the form of recognitions and promotion

 Non-monetary rewards is at average level
 Non-monetary rewards is good as our contributions are always recognised and
appreciated or at time positively criticised
 The trend of management in the branch office is quite good in that a lot of issues are
handled before the main office
 Satisfaction with non-monetary reward is below average

(3)-How do you describe the general level of satisfaction with monetary rewards?

 Monetary rewards can lead to frequent breakdown of the team; create non
productivity in its absence
 Salaries and allowances are still low
 Strictly we get salaries
 Satisfaction is average
 Is fair but there is need for salary increment and there is need for retirement package
 Quite a number of staff are not satisfied with the net pay they get as a result of duties
assignment

(4)-In your opinion which of the rewards system is better for Centenary Bank?

 Non-monetary rewards favour Centenary bearing in our source of finance, in

encourages the mission and vision of service
  Both monetary and non-monetary rewards are all importance and should be taken
seriously
 Monetary rewards prove better for most of the staff

(5)-What are your opinions on the level of performance of staff in Centenary Bank?

 Performance level of staff is average with very few exceptional case and those few
below expectation
 This year 2020 has seen tremendous deduction of staff in their performance
 The level of performance is satisfactory and most of them are committed staff
 Staffs are dedicated, cooperative, hardworking and loyal
 The level of performance is average as some work hard with minimal supervision but
others who need to be pushed by supervisors
 Centenary staff endures to work sincerely in line with their contract objectives but
some facilities make work difficult

(6)-Do you think non-monetary/ monetary rewards have impact on performance level?
If yes, what are the effects of these rewards on performance levels?

 Yes, it increases the self-motivation of staff and addresses the temporal welfare.
However, the best is to look at non-monetary reward that promote the mission of
Centenary, but need to be balance with administrative measures in sanctioning value
for money
 Not yet put in practice
 Monetary and non-monetary rewards increase level of performance, if not practice
well, performance will drop – it is a way of motivating staff
 Monetary and non-monetary rewards increase performance and build confidence in
staff. Well motivated staff needs less supervisions
 Monetary and non-monetary motivate staff to work hard, improve quality of work
done, and improve leadership. Non-monetary rewards save resources. It also makes
staff happy and therefore they extend the happiness to the community they serve