Human resources are the most important among all the resources an organization owns. To retain efficient and experienced workforce in an organization is very crucial in the overall performance of an organization. Motivated employees can help make an organization competitively more value added and profitable Rewards management always plays an important role in organization’s growth and better performance. The present study is an attempt to find out the major factors that motivate employees and it tells and examines the role of reward management towards job satisfaction and performance, using the case of Temeke Municipal Council. The data was collected from employees in eight departments of the council. In all, 150 self-administered questionnaires were distributed among the employees of 120 questionnaires were returned duly completed at a response rate of 88%. Participation in the survey was voluntary and confidentiality of respondents was ensured. Standardized questionnaires were used to collect data. Results showed positive trends in all variables. Extrinsic and intrinsic rewards appeared to be more important when employee’s job satisfaction and performance were evaluated. The results of regression analysis showed that job satisfaction and performance was more dependent on extrinsic and intrinsic rewards. The statistical analysis showed that different dimensions of work motivation and satisfaction were significantly correlated and rewards and recognition had great impact on motivation of employees. Implications of the study for leaders and policy makers in the context of human resource practices have been discussed. Limitations and guidelines for future research have also been provided.

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