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A cross-sectional and correlation research was conducted to investigate the effects of performance-based rewards on the performance of teachers in selected private secondary school in Gayaza Township in Uganda; using questionnaire and interview guide to 113 respondents. The study revealed the types of performance-based rewards common in private secondary schools to be public appreciation (mean, 3.67), packages (gifts or presents) (mean, 3.44), duty allowance (mean, 3.41), certificate of merit (mean, 3.21), and overtime pay (mean, 2.98). The study revealed also that there is a significant relationship between the performance-based rewards and performance of teachers which was moderately rated (mean, 3.22), with r-value = 0.743 and p-value = 0.012 at α = 0.05. It is concluded that, when used properly, performance-based rewards can improve teachers’ performance, consequently the general performance of students.
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