Examining Effectiveness of Organisational Rewarding System for Employee Performance: A Case Study of the National Health Insurance Management Authority

Consideration needs to be given to such issues as short versus long term performance, risk taking versus risk aversion, division performance versus total corporate performance, maximization versus sales growth and so on. The best designed reward system can often go awry in producing the intended results because poor implementation. Rewards succeed at securing only in securing one thing, that is a temporary compliance. The study seeks to examine effectiveness of organisational rewarding system for employee performance. This is a case study of the national health insurance management authority. This academic study adopted a case study design. The population of interest in this study will consist of the staff from NHIMA. Sampling is the act, process or technique of selecting a suitable sample or a representative part of a population for the determining parameters or characteristics of the whole population. A sampling frame is a list, directory or index of cases, that enables realization of a representative sample. This academic study adopted the non- probability sampling technique to select the 50 respondents. Specifically, the purposive sampling techniques that was employed with a view of getting samples that are as representative as possible. The analysis of responses regarding the use of promotions as a reward for high-performing staff reveals distinct patterns across departments within NHIMA. The IT department demonstrated the highest level of agreement, with 100% of respondents either agreeing (33.3%) or strongly agreeing (66.7%). Similarly, in the Admin department, all participants (100%) agreed that promotions are used as a reward system. In contrast, the Claims department reflected a high degree of uncertainty, with 80% of respondents remaining neutral. Only 5% agreed. The Finance department showed unanimous disagreement, with 100% of respondents expressing disagreement, suggesting an absence of promotions as a performance-based reward in this unit. Likewise, in the HR department, 50% strongly disagreed and 50% disagreed. The statistical test results reinforce these findings. The Pearson Chi-Square value of 125.481 with a p-value of .000 indicates a statistically significant association between department and perception of promotions as a reward.). (Coefficients) further reveals that among the four predictors, training content relevance to actual job and reward process had the strongest and statistically significant effect on improved employee performance (β = 0.907, p < 0.001).Conversely, other predictors - including understanding reward criteria (p = 0.555), explanation of rewards-performance linkage (p = 0.146), and increased motivation to work for rewards (p = 0.184) - did not show statistically significant contributions to performance enhancement in this model. Residual statistics (Table 3) show a low standard deviation of 0.177 in residuals and a near-zero mean, supporting the model’s robustness and the suitability of the predictors. The study recommends that there is a need to harmonize on packages that will be appreciated by staff and thus enhance performance. There is also a need to train staff in HR so as to increase knowledge on rewarding systems.