The Effects of Pay Policy Systems on Motivation of Employees in Institutions of Higher Learning in Rwanda (A Case Study of Selected Private Institutions of Higher Learning in Rwanda)

Abstract

The main objective of this study was to investigate the effects of pay policy Systems on motivation of employees in selected Private Higher Learning Institutions in Rwanda. Private Higher Learning Institutions face challenges of employees' motivation as a result of inadequate pay policy. The researcher used a descriptive design based on qualitative and quantitative approach in order to get better analysis of the study. The researcher also used both primary and secondary data collection tools with their relevant tools like questionnaire and documentary analysis in order to come up with required data. The study population of this research project was 180 lecturers from 7 selected private Institutions of High Learning in Rwanda where a sample size of 112 respondents was calculated by using Slovin's formulas. The data collected were analyzed using SPSS version 22 and the results from analysis, interpretation and presentation were displayed in tables. In the findings it was established that pay policy systems such as fixed pay, skilled fixed pay, performance pay and tangible pay has a significant effect on motivation of lecturers in institutions of High learning and this increase productivity, ensure stability of lecturers in the Institutions, improve timely service delivery and lastly it makes lecturers comply with rules and regulations. The Pearson correlation has indicated that there is a significant relationship between Pay Policy Systems and Motivation of employees in Higher Institutes of learning whereby the respondents N was 112 and the significant level is 0.01 and the sig is .000 and when sig is less than significant level, it means that variables are correlated and pay policy system has a positive strong relationship to motivation equal to .983** and there is a significant relationship between Pay Policy System and Motivation of Employees in selected Private Higher Learning Institutions in Rwanda. Consequently, Pay Policy System has effects on Motivation of Employees in selected Private Institutions of Higher Learning in Rwanda.