Submitted in fulfillment of the requirements for the Degree of Masters in Management Sciences Specialising in Human Resources Management, Durban University of Technology, Durban, South Africa, 2017. / This research project was aimed to investigate the impact of extrinsic rewards on employee motivation and organisational effectiveness at ZFC Limited in Zimbabwe. In the globalised environment, it is of important to ensure a motivated workforce because employees are the only asset that appreciates in value over time, thereby directly contributing to organisational outcomes. Employee motivation has been a major problem in manufacturing companies in Zimbabwe, due mainly to poor salaries and pecuniary benefits such as transport allowances and bonuses. The main objectives of the study were to determine employee perceptions of extrinsic rewards, ascertain the relationship between extrinsic rewards and employee motivation and determine the effect of extrinsic rewards on organisational effectiveness. The study adopted a quantitative paradigm, which entailed a structured questionnaire being distributed to respondents. The structured questionnaire comprised Section A and Section B. The sample size was 140, which was derived from a target population of 280 employees through the systematic sampling technique. The researcher used the personal method in distributing and collecting questionnaires to sample respondents and 98 completed questionnaires were returned. This equated to a high response rate of 70%. Furthermore, the data collected was analysed using the Statistical Package for Social Sciences (SPSS) Version 24.0 for Windows. Upon completion, the entire dissertation was checked for plagiarism through the TURNITIN program. The study found that salaries, bonuses and transport allowances were amongst the top extrinsic rewards at ZFC Limited in Zimbabwe. Good financial rewards are vital in influencing the behaviour of employees, as well as in enhancing organisational outcomes. The researcher recommended that ZFC Limited should consider reviewing the reward system, offering competitive financial rewards and timeously rewarding employees. The research project concluded with directions for future research on the role of extrinsic rewards on employee behaviour. / M