Monetary Rewards and Teacher Performance in Selected Secondary Schools in Central Region of Uganda

Monetary Rewards and Teacher Performance in Selected Secondary Schools in Central Region of Uganda

Muhamad Aisa, Frank-Pio Kiyingi, Esther Namugumya

Department of Educational Management, Nkumba University: P.O BOX; 237 Entebbe Uganda

DOI: https://dx.doi.org/10.47772/IJRISS.2024.803176S

Received: 21 June 2024; Accepted: 05 July 2024; Published: 08 August 2024

ABSTRACT

This study examined the influence of monetary rewards on the performance of teachers in selected secondary schools within Uganda’s central region. The study was based on Herzberg two Factor theory and Adam Stacey Equity theory. Using a deductive research approach, hypotheses were formulated to explore causal relationships between variables. Data collection utilized a cross-sectional correlation survey design with closed-ended questionnaires and interviews with key stakeholders, focusing on four districts within the central region. The study was guided by Herzberg Two Factor Theory and Adam Stacey’s Equity Theory. A sample size of 300 respondents, including teachers and school administrators, was obtained through proportionate sampling. A cross-sectional mixed methods design and a survey approach were used. Data validity and reliability were ensured through pre-testing, content validity index computation, and reliability assessment using the Cronbach Alpha method. Correlation and regression analyses were conducted to investigate the relationship between monetary rewards and teacher performance. Findings indicated a significant positive correlation between monetary rewards and teacher performance (r=0.4193, p=0.000). Regression analysis showed that monetary rewards account for 16.5% of the variation in teacher performance. Positive correlations were also found between monetary rewards and both academic (r=0.2963, p=0.0001) and non-academic performance (r=0.3999, p=0.000). Additionally, a model was developed demonstrating the mediating effect of perceived fairness on the relationship between monetary rewards and teacher performance. Specifically, the recommendations include reviewing and improving the reward system, conducting regular performance evaluations, exploring non-monetary motivational factors, and ensuring transparency and fairness in reward distribution.

Overall, this research highlights the significance of monetary rewards and equitable distribution in driving teacher performance within educational institutions.

Keywords: Equitable Monetary Rewards System (EMRS), Monetary rewards, non-monetary rewards, Perceived fairness Teacher performance.

INTRODUCTION  

In the realm of education, the performance of teachers holds paramount importance. The indicators of teacher performance include, factors such as students’ academic achievements, participation in extracurricular activities, and the effectiveness of pedagogical methods, including lesson planning and assessment techniques (Danielson, 2007; Harris, 2011). Baeder (2018) underscores the significance of standardized test scores as indicators of teacher performance, with higher scores reflecting better teaching efficacy.  Ensuring that teachers perform optimally is crucial for the educational ecosystem, and equitable compensation plays a pivotal role in achieving this goal. The International Labour Organization’s Article 115(c) of 2018 emphasizes the importance of providing teachers with a decent standard of living and opportunities for further professional development (Baeder, 2018). Consequently, educational institutions must establish reward systems that not only acknowledge but also reward exemplary performance. This approach highlights the necessity for schools to nurture a cadre of teachers capable of consistently delivering high-quality instruction and contributing to institutional objectives through fair rewards.

Teachers in Uganda’s central region strive to meet the demands of the competence-based curriculum at the ordinary level (O-level). However, recent research indicates a decline in learner outcomes due to teacher absenteeism and work avoidance. Teacher performance is critical and linked to fair reward systems. Performance is assessed through involvement in school activities, learner achievements, and pedagogical practices such as lesson planning and student evaluation (Harris, 2011). Despite the importance of fair compensation, a survey by the Wakiso Secondary School Head-teachers Association (WAKISSHA) (2019) revealed that teachers in Uganda’s central region often receive inadequate pay, with some earning below the minimum wage, especially in private schools and as part-time government school teachers. Additionally, there is a salary disparity in government schools where science teachers earn significantly more than arts teachers (UNATU, 2022). Limited promotion opportunities and inconsistent recognition for exceptional performance further exacerbate the issue. The academic performance in secondary schools in the central region is declining. High-performing schools are few, with only 100 out of 580 schools considered top-performing (WAKISSHA, 2018). The 2018 WAKISSHA joint mock exam results showed low grades, with 53.2% of students achieving fourth grades. In 2019, performance further declined, with only 1.12% of students attaining first grades and a significant number failing (WAKISSHA, 2019). Teacher involvement in extracurricular activities is also low, with a decline in participation in science fairs and workshops (SESEMAT Report, 2019). Only 2% of teachers participated in music, dance, and drama (MDD), and 49% focused on football and netball, indicating a lack of emphasis on holistic student development (WAKISSHA, 2019). This low engagement is attributed to poor and unfair reward management practices, leading to absenteeism and disengagement (Aguti et al., 2021; Kyeyune, 2022). Nationally, teacher absenteeism stands at 27% at the school level and 59% at the classroom level (Aguti, 2019). Over 56% of secondary school teachers are reluctant to teach all assigned lessons, and 64% feel demoralized by continuous assessments (Ssebuyungo et al., 2016). Teacher work avoidance, low participation in professional seminars, and absenteeism reflect poor performance due to inadequate reward management (Bennell, 2004).

The decline in teacher performance is evident in academic grades from UNEB exams, with a significant drop in pass rates over the years. For instance, O’ Level pass rates declined from 70% in 2007 to 55% in 2016, and A’ Level pass rates dropped from 60% in 2005 to 35% in 2018 (UNEB, 2018). The 2018 UCE exams saw 42,334 candidates fail, with 4,525 results withheld due to suspected malpractice (UNEB, 2018). This decline in student performance underscores the impact of poor teacher performance.

A 2023 UNATU survey reported significant teacher dissatisfaction, with low participation in tasks and limited innovative behavior due to inadequate rewards. 68% of teachers reported dissatisfaction, and 45% felt unrecognized for outstanding performance (UNATU, 2023). High teacher turnover rates also disrupt continuity in teaching and negatively affect learning (MoES, 2019). This study investigated the nature of monetary rewards offered to teachers, analyzed the level of teacher performance, examined the relationship between monetary rewards and teacher performance, and analyzed the mediating effect of perceived fairness in this relationship in secondary schools in the central region of Uganda

LITERATURE REVIEW

This study was guided by Herzberg’s Two-Factor Theory (motivators and hygiene factors) and complemented Adam Stacey’s Equity Theory. This study leaned on the hygiene factors that Herzberg defined. Hygiene factors include the monetary rewards (salary and allowances); salary, working conditions, and company policies, which play a key role in preventing dissatisfaction among employees (Herzberg, 1959). Adam Stacey’s Equity Theory posits that employees are motivated by fairness, and they compare their input-to-output ratios with those of others to determine equitable treatment (1963). Several researchers have examined the effect of the perceived fairness of monetary rewards on teacher performance. Bao & Wu (2017) found a link between the perceived fairness of monetary reward management and organizational performance. Their study, conducted with German employees of a global logistics company, revealed that perceived underpayment negatively impacts effort, efficiency, productivity, and job time, harming overall organizational performance. This indicates the need to explore if these findings apply to teachers in secondary schools in Uganda. Cole (1997; 2016) and Halsey (1891) define salary and wages as periodic payments to employees, usually expressed in terms of money. Holden stated that establishing a pay structure is crucial for administering financial rewards. Monetary rewards significantly influence teacher performance and motivation. Basic pay, linked to qualifications, experience, and responsibilities, is essential for attracting and retaining talented educators (Johnson & Grant, 2019). Competitive salaries provide financial stability, which is crucial for job satisfaction and well-being. Financial allowances, such as bonuses for exceptional performance, leadership roles, or specialized skills, serve as targeted incentives to motivate and reward teachers. Studies show that performance-based financial incentives can enhance teacher motivation and engagement (Kraft & Gilmour, 2018). Transparent and merit-based systems for allocating financial allowances can maintain trust and maximize the impact of monetary incentives on performance and job satisfaction (Podgursky & Springer, 2019).

Similarly, Kollmann et al. (2020) found that employees who perceive fair rewards compared to their task contributions are motivated to perform optimally, contributing positively to organizational performance. In contrast, perceived negative inequity in rewards demotivates employees, lowering performance. These findings suggest a positive relationship between perceived fairness of monetary rewards and teacher performance, but they were drawn from German employees, raising the need to validate them in the context of Ugandan secondary schools. Ibrar & Khan (2015) found a positive relationship between perceived fairness of rewards and employee performance in a Swiss private school. The study concluded that fair rewards systems increase job performance, but did not explore public schools in Uganda. Similarly, Khan et al. (2017a) found a strong positive relationship between perceived fairness of monetary rewards and employee performance in Pakistan, suggesting a need to validate these findings in Uganda. Other studies (Caraccio, 2017; Chitimwango, 2016; Cilliers et al., 2013; Edabu, 2013; Hart, 2017; Nankya, 2011; Onyango, 2014) link perceived fairness of monetary rewards to teacher performance, encouraging tasks such as lesson planning, student assessment, and extracurricular activities. However, these studies did not explore secondary schools in Uganda, indicating a gap this study aims to fill. Allen & Kilmann (2001) assert that monetary rewards significantly induce desired performance. Hart (2017) and Nsubuga (2008) contextualize this to teacher performance but emphasize the need for perceived fairness. Research shows that perceived inequity in monetary rewards diminishes their motivating power (Nsubuga, 2008). Monetary rewards can undermine intrinsic motivation, with teachers focusing on earning incentives rather than the inherent value of their work (Deci et al., 2017). Designing and implementing fair reward systems is complex and resource-intensive, requiring alignment with organizational goals, non-monetary rewards and reliable performance metrics (Brewer & O’Leary, 2018). Inadequate systems may lead to perceptions of unfairness, undermining trust and motivation. Monetary rewards also risk short-term focus and unethical behaviors to maximize rewards, detracting from teaching quality (Hitt & Tambe, 2019). Disparities in access to rewards can exacerbate existing inequities, particularly in high-need schools or underserved communities (Wiswall & Zafar, 2018). Therefore, careful consideration of equity is essential in designing effective monetary reward systems.

Conceptual framework

Developed by: Aisa Muhamad 2022

The conceptual framework in Figure 1 above was based on the assumption that rewards management determines the performance attained by any school. This assumption suggested that rewards management was the independent variable while Teacher performance was the dependent variable (DV). Rewards management was measured in terms of how appropriate the provided monetary rewards are perceived to be fair from the school employer and employee perspective. The provided monetary rewards to be investigated included basic pay or salary and financial allowances. Teacher performance was measured using academic measures (extent of teaching, student evaluation, and quality of academic grades from UCE and UACE exams) and non-academic indicators (extent of developing students’ extracurricular talents/skills). Perceived fairness in this study was used as the mediating variable that is caused by rewards management and its perception affects Teacher performance. Perceived fairness in this study was subdivided into distributive fairness (proportional fairness and fairness of equality) and procedural fairness.

METHODOLOGY

The study adopted a deductive research approach (Bryman, 2008; Saunders et al., 2015). This method entailed formulation of hypotheses which guided the research process, allowing for the exploration of causal relationships between variables and facilitating the quantification of concepts to generalize findings (Saunders et al., 2015).  A cross-sectional correlation survey design was utilized for data collection (Creswell & Creswell, 2017). Data were gathered through closed-ended questionnaire items and open ended interview guides.

Respondents from selected secondary schools in Uganda’s central region, including various stakeholders such as head teachers, government officials, and teachers, were analyzed (Creswell & Creswell, 2017).  Quantitative and qualitative data were collected to investigate the influence of monetary rewards on teacher performance. The study focused on four districts in the central region with a high concentration of secondary schools, ensuring convenient access to the target population (MOES, 2019b).

The sample size for the study was determined using G-Power software, with 40 secondary schools selected using a proportionate sampling technique (Kang, 2021; MOES, 2019b). The study encompassed a population of 468 respondents, including teachers and school administrators, with a minimum of seven teachers per school (Creswell & Creswell, 2017). The survey method was employed to collect data (Kothari et al., 2009; Oso & Onen, 2008). Interviews were conducted with key informants, while surveys were administered to teachers to gather quantitative data.

The study employed various techniques to ensure the validity and reliability of the data collected (Creswell & Creswell, 2017; Leedy & Ormrod, 2015). Content validity was ensured through pre-testing and computation of the content validity index, while reliability was assessed using the Cronbach Alpha method (Creswell & Creswell, 2017). Quantitative data were analyzed using correlation, regression techniques and structural equation modeling. Qualitative data from interviews was analyzed by developing themes using At.lasti software.

RESULTS AND DISCUSSION

The response rate for the distributed questionnaires was exceptionally high, with 160 out of 168 returned, representing a robust 94.7% participation rate, indicating a strong interest and willingness among respondents to contribute to the study’s objectives, aligning with recommended thresholds for analysis and reporting (Mugenda & Mugenda, 2003). Analysis of respondent demographics revealed a significant gender disparity, with males constituting 66.88% and females only 33.13%, reflecting broader trends of inequality in the educational landscape of the selected secondary schools (Orsini et al., 2016; McCowan, 2012). Coleman (2018) attributes this gender imbalance to socio-economic and cultural factors, including poverty, limited infrastructure access, and entrenched norms, perpetuating disparities in educational opportunities, particularly impacting female enrollment and retention rates.

This gender disparity among respondents has profound implications for teacher rewards, potentially exacerbating existing disparities in reward systems and impacting teacher motivation, job satisfaction, and performance. Gender imbalances may reflect biases in hiring, promotion, and career advancement, leading to perceptions of unfairness and inequality (Coleman, 2018). Overrepresentation of male teachers in leadership roles and high-value subjects could grant them greater access to incentives and advancement opportunities, while female teachers may face barriers, potentially leading to demotivation and disillusionment. Addressing these disparities is crucial for creating equitable educational environments that support the professional growth and well-being of all teachers

Teacher performance

Table 1. Teacher performance

In conclusion, despite teachers reporting effective practices, observational findings reveal a decline in performance, indicating a discrepancy that necessitates further investigation and targeted support to enhance their effectiveness and align their methods with student learning goals. The 2019 Joint Mock examination results reveal a concerning trend of declining performance in central Uganda, with only a marginal 1.1% achieving the first grade, underscoring the pressing need for educational interventions to address the disparities across grades and improve overall academic outcomes in the region.

Source: Primary data (2022)

The researcher found out that every selected school in the central region of Uganda had at least one of the forms of allowances given to the employees as this was supported by the qualitative findings below. The interview question was ‘‘what form of rewards do you give to your staff?’’

A head teacher LB said

“…Apart from motivating them, we give them a salary at the end of the month so that they can have something to carry home. Apart from salary, we give allowances to our staff for the extra time they give in. We give allowances to our heads of department because they help to supervise the juniors and also we delegate work to them. We give allowances to Teachers sent on official duties for example seminars in different areas where he or she is not spending the money on behavior of the organization.…” (Head Teacher LB, ID5).

Another Head Teacher LN said

“…Here we give salary and wages given at the end of the month, part-time Teachers are rewarded weekly and full-time Teachers are paid monthly. We also offer transport allowances which are shared among the school and Teachers.  We all contribute half pay. During exam time we also give them some small allowances and also to the sports department. For non-monetary rewards, we encourage appreciation and write letters that motivate the performance. We also contribute to the tours for staff which each party contributes half pay. We also contribute to the staff’s social functions for example introductions, weddings, funerals among others….”(Head Teacher LB, ID5).

The head Teacher LK said

“…I allocate our Teachers to different departments and attach a monetary reward allowance which is paid every month in addition to the salaries…”(Head Teacher LK, ID15).

The Head Teacher LB said

“… another type of rewards we give to our staff is the non-monetary rewards like accommodation, electricity, and water, recognition, thank you, end of year parties among others…” (Head Teacher LB, ID5).

Figure 2: provided non-monetary rewards

From the illustration in Figure 14 above, the non-monetary intangible rewards provided to the Teachers in the selected secondary schools in the central region of Uganda were appreciation through smiles, attending and organizing staff social functions such as weddings, funerals, and parties, and arranging staff tours. These were all analyzed from the responses in interviews

In conclusion, the researcher found out that for achieving maximum positive teacher performance, the monetary rewards were accompanied with non-monetary rewards by the reward administrators. The provided non-monetary rewards provided included, verbal appreciations, professional development opportunities, recognition, certificates, gifts and job security.

Table 2: Correlational analysis for Monetary Rewards and Teacher Performance

Source: Primary data (2022)

The correlation between monetary rewards management and teacher performance is medium (r=0.4193, p=0.000), with significant positive correlations found between monetary rewards and academic performance (r=0.2963, p=0.0001) as well as non-academic performance (r=0.3999, p=0.000) (Cohen, 1988). These results suggest that monetary rewards positively influence both academic and non-academic performance, although the correlations are not strong. It is crucial to ensure the fair distribution of rewards to maintain equity, as performance-based rewards can exacerbate inequalities if not distributed fairly. While incentives can motivate, fairness in distribution is paramount for upholding equity within schools and promoting inclusivity. Studies have shown that a balanced approach combining monetary and non-monetary rewards can be more effective in enhancing teacher performance (Muralidharan & Sundararaman, 2011; Silva & Oliveira, 2022).

Table 3: Regression Analysis for Monetary Rewards and Teacher Performance

Standard errors in parentheses

*** p<0.01, ** p<0.05, * p<0.1

Source: Primary data (2022)

The regression results indicate that monetary rewards account for 16.5% of the variation in teacher performance, a relationship that is statistically significant. This finding aligns with Herzberg’s Two-Factor Theory, which emphasizes the importance of hygiene factors, such as salary, in preventing dissatisfaction and maintaining baseline performance levels. While monetary rewards may not be strongly correlated with high performance quantitatively, their adequate provision is crucial for preventing dissatisfaction and ensuring that teachers remain motivated.

The R-squared value represents the proportion of variance in the dependent variable explained by the independent variables, with values closer to 1 indicating a better fit. In this case, the R-squared value of 16.5% suggests that monetary rewards explain a moderate portion of the variation in teacher performance. Additionally, the p-values indicate the statistical significance of each coefficient, with values less than 0.05 typically considered significant. The statistically significant relationship between monetary rewards and teacher performance further supports the importance of adequate compensation in motivating teachers and improving their performance (Frost, 2019).

Path analysis for Monetary Reward and Teacher Performance

Table 26: Path Coefficients for the Model of Monetary Rewards and Teacher performance

Source: Primary data (2022)

The results of the model also show that fairness of equality for monetary rewards mediates the negative relationship between monetary rewards management and Teacher performance. This is the final model for this study since it has a good fit as shown in figure below

Table 2: Goodness of fit Model

Source: Primary data (2022)

The findings from Table 27 suggest a varied assessment of the goodness of fit for the structural equation model (SEM) examining health service delivery. While the Root Mean Squared Error of Approximation (RMSEA) indicates an acceptable fit, with a value of 0.000 falling well below the recommended threshold of 0.10, the Standardized Root Mean Squared Residual (SRMSR) demonstrates a good fit, below the threshold of 0.05. Moreover, the Comparative Fit Index (CFI) of 1.0 suggests an excellent fit for the model in predicting health service delivery, exceeding the threshold of 0.90.

These results collectively indicate that the SEM provides a robust framework for understanding the factors influencing health service delivery. The low RMSEA and SRMSR values suggest that the model adequately represents the observed data, while the high CFI value further supports the model’s predictive accuracy. Overall, the findings underscore the importance of the SEM in elucidating the complex relationships between various factors and health service delivery outcomes, providing valuable insights for policymakers and healthcare practitioners.

CONCLUSIONS

Objective one: The school provides various forms of monetary rewards and allowances, including basic salary, holiday pay, on-time salary payment, task-based allowances, marking allowance for assessments, per-diem for distant workshops, and cash awards for student distinctions in UCE and UACE exams, as well as a bonus scheme and increment in payment based on school progress. To combat this, the reward providers should; conduct a comprehensive review of the current monetary reward system to ensure it is competitive and aligned with the educational standards and regional norms. Implement a transparent and structured reward system that clearly outlines the criteria and process for awarding various forms of monetary rewards and allowances. Provide regular training and guidance to teachers on how to access and maximize the benefits of the monetary reward system. The reward administrators should include non-monetary rewards such as professional development opportunities, appreciation, job security, housing, and certificates to act as teacher motivators and these rewards should be performance based.

Objective 2: While teachers report engaging in effective practices such as marking exercises during lessons and facilitating discussions, qualitative and observational findings indicate a decline in teacher performance in the selected secondary schools in central region of Uganda. This suggests a discrepancy between reported practices and actual outcomes, highlighting the need for further investigation into the effectiveness of these practices. To avert this the Ministry of education and sports together with school administrators should: Provide more targeted support and feedback to help teachers align their practices with student learning goals and improve overall performance. Implement a system for monitoring and evaluating teacher performance to track progress and identify areas for improvement. This could include regular classroom observations, student performance data analysis, and teacher self-assessments. Establish regular feedback mechanisms for teachers to receive input on their teaching practices. This could include peer evaluations, student feedback surveys, or observations by school administrators.

Objective 3: The findings indicate that monetary rewards do not significantly affect teacher performance, as evidenced by the negligible path coefficient (β = -0.004, p = 0.942). This suggests that factors other than monetary rewards play a more substantial role in influencing teacher performance in this context. It challenges the traditional assumption that financial rewards are primary motivators for teachers and underscores the need to explore alternative approaches to enhancing performance in educational settings. Exploration of non-monetary factors that may influence teacher performance, such as job satisfaction, work-life balance, and professional growth opportunities can be a backup to this finding. Reward managers should also consider implementing incentive programs that recognize and reward teachers for non-monetary contributions, such as mentoring, leadership, and innovation in teaching methods. They should also conduct further research to understand the complex interplay between monetary rewards and other motivational factors in the context of teacher performance.

Objective four: The study shows that fairness in the distribution of monetary rewards plays a crucial role in mediating the relationship between reward management and teacher performance, with perceptions of fairness significantly impacting teacher motivation and performance, underscoring the need for equitable reward practices. Therefore, reward providers should consider transparency and communication regarding the criteria and process for awarding monetary rewards to ensure positive perceived fairness among teachers. They should also establish a grievance redressal mechanism to address any concerns or disputes related to the distribution of monetary rewards. They should also conduct regular surveys or focus group discussions to gather feedback from teachers on the perceived fairness of the reward system and make necessary adjustments based on the feedback.

In general, the study extended Herzberg’s theory to integrate perceived fairness of reward management in supporting teacher performance. It emphasized the importance of competitive performance-based criteria implementation. Integration of reward management fairness with Herzberg’s theory aimed to enhance teacher performance. Competitive performance-based criteria was proposed to support teachers in selected secondary schools in Uganda’s central region.

The study developed a model Equitable monetary reward system (EMRS) that shows a sustainable systematic approach of managing monetary rewards to achieve positive teacher performance.

EQUITABLE MONETARY  REWARD SYSTEM (EMRS)

Developed by: Aisa Muhammad

The model Equitable Monetary Reward system (EMRS) above shows that management of provided monetary rewards such as salary and allowances should be done in a systemic approach were the provision of the rewards is based on a fair sustainable system.  It shows that the monetary rewards should be given based on employee perception of how fair the rewards are in terms of equality, proportionality and procedural fairness and through an equitable system which is transparent, consistent, considers inclusivity of employees’ in decision making and appeal processes. Only through this channel will the teachers get motivated and become committed to improve their teaching practices, prepare schemes of work in time, work extra time, engage students in extra-curricular activities, regularly evaluate students’ assignments and exercises and at the end students will have quality academic grades and improved creative skills and talents.

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