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In current highly competitive business environment, having well performing and inspired employees are the main success factor for any organization. In realizing that, in one hand researchers argue well-designed reward strategy plays the major role through enhancing the performance of employees. In the other hand, other scholars claim that rewards have nothing to do with employees' performance.The aim of this study was to examine the effect of reward management system on employee performance in the case of IE Network Solution PLC. in Addis Ababa. This study was conducted through a mixed research approach with in both a descriptive and explanatory research design. The correlation analysis result shows that promotion and employee recognition positively and moderately associated with performance of employees. The multiple regression analysis revealed promotion (beta=0.313), employee recognition (beta=0.319), work condition (beta=0.256), and salary (beta=0.189) has a significant effect on employee performance. However benefit packages have no significant effect on performance of employees.