The Relationship between Reward Management and Organisational Growth: Evidence from Commercial Banks in Zimbabwe through Balanced Panel Data Analysis (2017-2023)

Abstract

The study aims to analyse the impact of reward management on organisational growth in the Zimbabwean banking sector. The objectives of the study are to analyse the nature of relationship between reward management and organisational growth as well as examine the impact of reward management on organisational growth. Economic growth is regarded as way through which a country can achieve its developmental goals, such as reducing poverty, eliminating hunger and creating employment. Organisational growth is one area through which private institutions and organisations can support the economic growth drive of a country. To achieve growth, organisations have normally used various reward management methods. In Zimbabwe many organisations have been failing to manage reward management practices, leading to poor performance by employees and retarded organisational growth prospects. Employees in Zimbabwean banks are dissatisfied with the reward management practices that they are exposed to, posing a huge threat to the growth of the banking industry. Despite the increased interest, there are a few studies on reward management in the banking sector, especially in developing countries. The study employs panel cointegration and pooled ordinary least squares regression to analyse the impact of reward management on organisational growth. The study uses secondary data from 2017 to 2023, collected from a sample of 10 Zimbabwean banks. The panel cointegration study results show that reward management and organisational growth have a long-term relationship, whilst the pooled regression results show that reward management has a negative impact on organisational growth. A 1% increase in innovation and adaptability and social benefits results in a respectively 22% and 6% decline in organisational growth. The study recommends digital transformation of banks, streamlining of processes, adoption of strong ethical leadership andmanagement practices and foster macroeconomic stability by policy-makers in order to promote growth of banks.