SCHOOL OF GRADUATE STUDIES OF ARBA MINCH UNIVERSITY IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION

Abstract

The main purpose of this study was to investigate the effect of reward practices on the sales force engagement. Therefore, the explanatory research design was planned to examine the relationship between reward practices on the sales force engagement. Also, the descriptive research design adopted for assessing the existing reward system. The target population was all 465 sales force of distributors of the Hasbesha Breweries S.C. the sampling approach for determining the sample size was probability sampling technic particularly stratified sampling. Then, by using the formula the sample size selected was 215 sales force. The data collection tools used to measure the reward system, and sales force engagement. The reliability and validity of this instrument already calculated by previous scholars and recommended items. The five point likert scale and self-administered structured questionnaire was used. SPSS 20 version used for analyzing the data. Pearson correlation used to examine the relationship between the variables. The regression analysis incorporated to investigate the effect of independent variable on dependent variables. Thus, the main findings revealed that the current status of the reward system and sales force engagement exist at favorable level in the company. Also, the reward practices have positive relation with the distributors sales force engagement. Finally, the study indicated the reward systems such as base pay, contingency pay, recognition, career development and working condition have statistically positive effect on the sales forces engagement in the company. But, the base pay and recognition have lower effect on the sales forces engagement in the company, relative the other variables. Therefore, the study recommend that should increase sales force engagement, the manager should create a good salary for employee and motivate in workplace by adjusting salary amount between employer and employee’s expectations. Also, increase sales force engagement, the company should give a salary payment on individual performance that motivates to perform at a job