STUDY OF THE EFFECT OF EMPLOYEES MOTIVATION ON

ORGANIZATIONAL PERFORMANCE: IN CASE OF COMMERICIAL

BANK OF ETHIOPIA ASELLA BRANCH

THE RESEARCH PAPER SUBMITTED IN PARTIAL FULFILLMENT OF

THE REQUIREMENT BA DEGREE IN MANAGEMENT

PREPARED BY:

ALIYI MUSA R/246/08 and

ZINASH TESHOME R/392/08

ADVISOR: IDRIS YUSUF

ARSI UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

JUNE, 2018
Asella, Ethiopia
Acknowledgment
First and for most we would like to thanks God, because he has helped us in every aspect of our
life. Next to that we would like to express our sincere gratitude to our Advisor Idris Yusuf for his
Advice and constructive comment in all of this paper.

Finally, we would like to express our deeply heart thanks to those who had not been mentioned
their name but contribute a lot to this achievement.

i
Abstract
The main objective of this study was to identify the effect of employee’s motivation on
organization performance in case of commercial bank of Ethiopia Asella main branch. The
relevant data for this study collected from both primary and secondary sources. To collect
primary data self-administered questionnaire used. Secondary data was collected by
organizational records and written materials about the organization. Census was sampling used
to collect data from employees because of they were small in numbers.

The collected data effectively processed, Analyzed and presented by using percentage and
tabulating. Based on the analysis of fact and findings, the followings are recommended to
upgrade employee’s motivation that has positive impact on productivity of the organization.

The company should practice the system of increasing the scale of salary and rewards for those
whose productivity is better than others.

The management of the organization should be approachable and listen the comment of
employees regarding motivation problems in the organization to increase the performance of the
organization

ii
 Table of Contents
Contents Pages

Acknowledgment____________________________________________________________________i
Abstract___________________________________________________________________________ii

CHAPTER ONE_______________________________________________________________1
Introduction___________________________________________________________________1
1.1. Background to the Study______________________________________________________1
1.2. Back ground of the organization________________________________________________2
13. Statement of the problem______________________________________________________4
1.4. Objectives of the study________________________________________________________4
1.4.1. General objective___________________________________________________________________4
1.4.2. Specific objective___________________________________________________________________4

1.5. Significance of the study_______________________________________________________5

1.6. Scope of the study____________________________________________________________5
1.7. Limitation of the study________________________________________________________5

CHAPTER TWO_______________________________________________________________6
REVIEW LETRATURE_________________________________________________________6
2.1. Motivation__________________________________________________________________6
2.2. How to motivate employees____________________________________________________6
2.3. Challenges of Motivation______________________________________________________7
2.4. Importance of motivation______________________________________________________7
2.5. Source of motivation__________________________________________________________7
2.6. Theories of Motivation________________________________________________________8
2.6.1. Maslow theory_____________________________________________________________________8
2.6.2. Alderperson ERG theory_____________________________________________________________9
2.6.3. McClelland’s Theory_______________________________________________________________10

2.7. Motivation, Performance and Job satisfaction____________________________________10

2.8. Consequence of Job dissolution________________________________________________11
2.9. Ways to motivate employees___________________________________________________11
2.9.1. Motivating workers________________________________________________________________12

a
 2.10. Employee motivation impact on organizational performance_______________________15

CHAPTER THREE____________________________________________________________16
RESEARCH METHODOLOGY__________________________________________________16
3.1. General Research Design_____________________________________________________16
3.2. Types and source of data_____________________________________________________16
3.3. Target Population___________________________________________________________16
3.4. Sample Size and Sampling Techniques__________________________________________16
3.5. Method of Data Collection____________________________________________________17
3.6. Data processing and Analysis__________________________________________________17

CHAPTER FOUR_____________________________________________________________18
DATA ANALYSIS AND DATA PRESENTATION___________________________________18
4.1. General employee’s background________________________________________________18
4.2. Motivational practice_________________________________________________________19
4.3. Motivational impact__________________________________________________________20
4.4. Additional reward system______________________________________________________21
4.5. Security of job_______________________________________________________________21
4.6. Punctuality of employees______________________________________________________22
4.7. Staying in organization________________________________________________________22
4.8. Effect of motivation__________________________________________________________23
4.9. Effect of Absenteeism_________________________________________________________24

CHAPTER FIVE_________________________________________________________________29
Conclusion and recommendation_________________________________________________29
5.1. Conclusion__________________________________________________________________29
5.2. Recommendation____________________________________________________________30
References________________________________________________________________________31

APPENDIX____________________________________________________________________32

b
 CHAPTER ONE
INTRODUCTION
1.1. Background to the Study
The success of any business or organization as a matter of fact depends largely on the motivation
of the employees. Human resources are essential to the prosperity, productivity and performance
of any company. Motivation is the key to creating an enabling environment where optimal
performance is possible. This leads to the question how then do we ensure that the individual
motivation is at its peak within the organization or workplace (Chapman, 2004).

The development and growth of business organization in competitive business environment is

depends on the efficient utilization of resource. The performance of organization is affected by
different factors such as motivation, working condition, and job security. Taking this in to
account motivating employees helps organization to get competitive advantage. No doubt that
the survival of an organization largely depends on effective and efficient management of its
resource. Human resource is one of these that need to be well managed. It plays a crucial role in
achieving both the long- run and short- run objectives of an organization. Managing people is not
as easy as managing resource. This is due to the complex nature of human being and as a result
in as single organization different people may have different personalities, attitudes, beliefs and
values. Managers must use different strategies and skills to wards motivating employee for the
survival and best performance of organization (Ryan, 2011).

Employee motivation promotes workplace harmony and increased employee performance. It is

the key to long term benefits for the company. Motivated employees means staff retention and
company loyalty, which in the short run will give birth to growth and development of business
(Jishi, 2009).

The above submission shows that employee motivation is very essential to the growth,
development and success of any business entity is it small or big. In the business world or better
still the workplace human resources are the most valued and cherished resources above all
others. Motivated employees are productive, happy and highly committed to their job.

1
1.2. Back ground of the organization
The agreement that was reached in 1905 between emperor Minilik II and Mr. Magillivray,
representative of the British owned national bank of Egypt marked the introduction of modern
banking in Ethiopia.

Following the agreement, the first bank called bank of Abyssinia was in guaranteed in February
16, 1906 by emperor and the bank was totally managed by the Egyptian National bank. By 1931,
bank of Abyssinia was legally replaced by bank of Ethiopia shortly after emperor Haile Selassie
came to power.

The new bank, bank of Ethiopia, was purely Ethiopian institution and east the first indigenous
bank in Africa and established by official decree on August 29, 1931 with a capital of Birr
750,000. Source:( [Link])

The first indigenous bank which functions as both as commercial bank and central Bank was
established in 1963, under the name of state of Ethiopia. In 1963, new banking law split the state
bank of Ethiopia to central and commercial banking namely national bank of Ethiopia (NBE) and
commercial bank of Ethiopia (CBE). The former was responsible for supervision of banks in the
country. The national bank of Ethiopia with more power and duties started its operation in
January 1, 1964.

Following the incorporation as a share company on December 16, 1963 as per percolation No,
207/1997s o October 1963 took over the commercial bank activates of the former state bank of
Ethiopia. it started operation on January 1,1964 with a capital of birr 22 million in the new
commercial bank of Ethiopia, in contrast , with the former state bank of Ethiopia, all employees
where Ethiopians.

Consequently, the present day commercial bank of Ethiopia was established under proclamation
No, 184 of August, 1980.

2
According to this proclamation the main objectives of the commercial bank of Ethiopia are as
follows:

1. To extend commercial banking services throughout the country

2. To extend loans, credits and all other banking facilities to any person for specific purpose
and periods.
3. To encourage the mobilization of saving by making the people aware of the use of
banking.
4. To spread widely banking habits among the people.

Moreover, according to this proclamation, the bank shall have the responsibility to perform the
following duties in accordance with the general directives issued to it by the supervising
authority, namely the national bank of Ethiopian.

1. Receive saving demand and time deposits

2. Make loans and advances
3. Draw, accept, discount, buy and sell bill of exchange, drafts, and promissory notes
payable within or outside Ethiopia.
4. Issue letter of credit.
5. Buy, sell, hold or otherwise deal in foreign exchange,
6. Control the end use of credit loans, and other facilities that provide to its customers.
7. Act as an agent for persons and in this capacity, engage in the sale of money and shares.
8. Negotiate, under write or issue bond.
9. Keeping safes securities, jewelry, precious metal and other valuables materials.
10. Hold, acquire and sell negotiable instrument and security by the government or private
person.
11. Acquires, poses, mortgage sell, exchange and dispose of property for the purpose of
attaining its objectives and proper functioning its operations.
12. Performs such other banking activities as are customarily carried out by commercial
bank.

Source:[Link] National Bank of Ethiopia, “History of banking”

3
13. Statement of the problem
Employee motivational programs go a long way towards ensuring employees feel appreciates
and bad. This alone can help with employee’s motivation across the board. The great thing about
this program is they are very individualized. Motivational program increase motivation because
they are not only encouraging productivity performance but also show employees the company
cares. (Hucznsky, 2001).

Motivates employees are happy on behave of the job and strive for increasing productivity of the
business. They also try to develop a new mechanism of doing a job so as to improve their
productivity. In contract to this, poor motivation leads to eradicate the productivity of the
organization by a means of unpunctual and absenteeism. ([Link] al, 2002)

The study was focuses on the motivational tools that management generally uses to employees.
Motivation are financial and non-financial motivational. Financial motivation include like
reward, piece rate wage and the non-financial motivation also include motivation status,
responsibility, making job pleasant and interesting.

The basic question of this research was

1. Does Asella CBE main branch motivate its employees?

2. What methods does the organization use to motivate its employees?
3. What types of impact employees’ motivation impose on performance?
4. What are the problems relates to motivation in the organizations?

1.4. Objectives of the study

1.4.1. General objective

The general objective of this research is to study the effect of Employees motivation on the
organizational performance in case of CBE Asella branch.

1.4.2. Specific objective

 To identify the management system of the organization
 To identify methods used to motivate employees in CBE
 To identify the impact of employees motivation on organizational performance
 To prepare method of measuring employees performance

4
1.5. Significance of the study
The study has the following importance for concerned stakeholders.

 The study enables the organization to know their strength and weakness and then to
follow the way to motivate and increase their productivity in easy way.
 The study also provide relevant information to this on varies level of management,
employees and labor union leads to understand the importance of motivational factors on
performance of employee.
 Lastly, it creates awareness to minimize the problem related to employee motivation.

1.6. Scope of the study

The research was carried out at commercial bank of Ethiopia Asella branch. Commercial bank of
Ethiopia cover large market share, thus, the study is restricted only at Asella branch. It is
infeasible to do the study above one organization because of this and related restriction the
researchers do their research only commercial bank of Ethiopia at Asella branch.

1.7. Limitation of the study

During the study, researcher may find some limitations. These include:
 Data’s needed for analysis concerning motivation can be gained from primary data, since
most of the data are related to attitude of employees.
 Shortage of time for gathering all necessary data from the organization.
 Lack of financial resource is the major constraint.

5
 CHAPTER TWO
REVIEW LETRATURE
The employee motivation has major impact on economic performance of the firm. The firm used
different essential resource for its economic performance. Especially human resource is most and
significant and ingredient part of resource and managers apply a variety of motivational scheme
to give employees highly productive and always they stand for a common good of firm. This
chapter tries to present the theoretical aspects of motivation (Hitt, 2001).

2.1. Motivation
There is no standard definition of motivation but there are number of common agreement.
Motivation has to do three broads are as with respect to individuals behavior (Boddy, 2008).

 Direction what someone is trying?

 Persistence has along someone continual trying.
 Effort how hard someone is trying

According to Bernard Berenson and Gram A. Steiner” motivation is an energized action at

channels behavior reward’s the goals”. Motivation in practice and theory are difficult issues
conducting on several disciplines. In spite of research basic as well as applied, the subject of
motivation not clearly understood more often than not poorly practiced. People in the
organization come from different places with respect to attitudes towards job peers, subordinates,
organizational rules and procedures. As a result of these mangers or organization encounter big
problem of having different outlook and at same goals and objective achieved by integrating and
coordinating people (Robbins &Decenzo, 2008).

2.2. How to motivate employees

The successful managers have known how to motivate their employees. Even though everyone is
motivated by different needs, most people tell that two of most important issues they look for the
company are mutual respect and personal involvement (Bernard & Stoner, 2005).

6
There are some ways of motivating employees they are:

 Be aware of moral level of your organization.

 Involve employees in decision making.
 Outline job responsibilities.

2.3. Challenges of Motivation

Motivation in practice and theory are difficult issues conducting on several disciplines. In spite
of research basic as well as applied, the subject of motivation not clearly understood more often
than not poorly practiced. People in the organization come from different places with respect to
attitudes towards job peers, subordinates, organizational rules and procedures. As a result of
these mangers or organization encounter big problem of having different outlook and at same
goals and objective achieved by integrating and coordinating people (Plunkent, 1997).

2.4. Importance of motivation

Motivation is important because of its determinants factors on performance and its intangible
character. The performance of individual’s is determined by:

 Motivation ‘the desire to do the job

 Ability; the capability to do the job

Motivation process begins with needs as deficiency. Motivated employees are a tower of the
company and they will brings dramatically change in every activities of their performance and
they are more productive to be effective manager needs to understand what motivates employees
within the context of they perform Source (Bowen and Radian Krishna, 2001).

2.5. Source of motivation

 Positive motivation: involves proper recognition of employee’s effort and appreciation
of employee’s contribution towards organizational goals achievement. Some of these are
delegation of Authority and responsibility to subordinates participation indecision
making (Hitt, 2008).
 Negative motivation: is based up on use of force, power and treats. The fear of
punishment or unfavorable consequence affects the behavior change.

7
  Extrinsic motivation: is induced by external factors which are primarily financial in
nature.
 Intrinsic motivation: it stems from feeling achievement and accomplishment and is
concerned with state of self-actualization in which the satisfaction of accomplishment
something worthwhile motivates the employees. It’s self-generated and independent of
financial rewards like recognition, responsibilities, esteem needs source (Chand
an ,1995).

2.6. Theories of Motivation

This station presents various theories of motivation proposed by different individuals and
researchers.

2.6.1. Maslow theory

Maslow theory is a hierarchy need theory which is popular theories of motivation and it’s based
on the following facts:

“Man is not always satisfied with it on hand. He is always in need of something which he does
not have. Human needs are unlimited, that is if one need is satisfied the other need would be
activate and the process continuous in definitely.” Maslow need hierarchy, source (Hitt, 2009).

Maslow categorizes the need in five:

 The physiological needs: involves a need for basic thing like food, water, shelter and
sex, when this fundamentals needs are not meet no other higher level needs will act as
motivation. On another way, once primary needs satisfied, safety or security needs are
activities.
 Safety needs: include protection from physical harm, economic disaster and futuristic
needs in that they represent a desire to ensure ability to physical need (Hayes, 2009)
 Social need: is need for belongingness and love that comes in to play only when physical
and safety need are reasonable secured.
 Esteem needs: include self-respect and feeling of competency and the need for
recognition and administration in the eyes of other.

8
  Self-actualization: The process of making actual persons perception of his/ her real self.
Aracely attained self-actualization impulse to become when one is capable of becomes of
Achieving ones full potential in the most creative self-motivated way source (Hitt,2009)

2.6.2. Alderperson ERG theory

The ERG need theory, developed by Clayton alderperson is a refinement of Maslow’s need
hierarchy, Instead of manioc’s five needs, ERG Theory condenses these five need in to three
needs.

 Existence needs: These needs are roughly compatibilities to the physiological and safety
needs of Maslow’s models are satisfied primarily by material incentives. These include
the need for shelter physical and safety from threats on people’s existence and well-
being.
 Relatedness needs: These roughly correspond to social and esteem in Maslow’s
hierarchy. These needs are satisfied by personal relationship and social interaction with
others. It involves open communication and honest exchange of thought and feelings with
other organizational members.
 Growth needs: These are needs to develop and grow and reach the five potential that
person is capable of reaching. Their needs are fulfilled by strong personal involvement in
organization environment and look for new opportunities and challenge. ERG different
from Maslow’s in proposing that may be motivated by more than one kind of needs at the
time.

While Maslow proposes that in the hierarchy needs, a person will satisfy the lower level need
before it moves up to the next levels of needs and will say at the need until it is satisfied. ERG
Theory suggests that if the person is frustrated in satisfying his needs at a given level, he will
move back to the lower level needs (Hayes, 2001).

9
2.6.3. McClelland’s Theory
David McClelland’s theory and his associate John Atkinson proposed another important Theory
of motivation and achievement of motivation. According to theory organization offers an
opportunity to satisfy of at least three needs (Davis, 2000).

 The need for achievement (n- Ach): Achievement motivation is driven some people
have to overcome challenges and obstacles in the pursuit of goals. An individual with this
drive wishes to develop and grow up the ladders of success characteristics of
Achievement oriented. Employees are work harder when they perceives that they will
receive personnel credit for their efforts when there is only moderate risk of failure and
when they receive specific feedback about past performance.
 Need for Affiliation: Affiliation motivation is a drive to relate to people on social basic.
Affiliation oriented people work better when they are complimented for their favorable
attitudes and cooperation. They receive inner satisfaction from being with friends and
they want the job freedom to develop those relation.
 Need for Power: Power motivation is drive to influence people and change situation.
Power motivated people wish to create an impact on their organization and are willing to
taking risks to do so Once this power is obtained it may be uses either constructively or
destructively. Power motivated people make excellent managers if their drives are per
instructional power instead of personnel power.

2.7. Motivation, Performance and Job satisfaction

It has often been said that a happy employee is a productive and happy employee must be
satisfied with his job, Job. Satisfaction can be defined as the extent of positive feeling of attitudes
that individuals have towards their job feels, good about it and values his job highest on other
and serious job dissatisfaction results in stress and tension which is usually the cause of a variety
of physiological disorder (Chandara, 2000).

10
2.8. Consequence of Job dissolution
Job dissatisfaction produces low mental among workers and low mental at workers. Some of the
indicators to low morale are: Employees unrest, the workers may not attend to his job properly,
may be involved in a day a reaming, be forgetful or just may not care. If this unrest affect a
sufficient numbers of workers, they may take a collective action such as go slows, worker
stoppage sticks and other allied group actions (Olajide, 2000).

 Absenteeism: job satisfaction is highly related to absenteeism. Studies have found that
less satisfaction employers are more likely to be absent from work due to “Avoidable
reason”. Management must be concerned with excessive absenteeism for it disrupts
production and business operation.
 Employee turnover: high turnover distributes normal operation and continuously
replacing the employee who leave is costly and both technical and economically
undesirable. Turn over may be voluntary which initiated by the employee and may be due
to Job dissatisfaction or other personal reason beyond management control.
 Early retirement: These has been that employee who choose early retirement tend to
hold less positive attitudes, challenges and, work opportunities are less likely to seek
requirement than employees with lower levels jobs.

2.9. Ways to motivate employees

No longer can leader hire workers and expects to get motivated individuals. Learning how to
motivate is now one of the most relevant and essential skills leaders can possess in today’s ever-
changing work place. This guide provides some insight in to human motivation by offering 77
practical suggestion for motivating works. Today, leader usually must go beyond the day –to –
day operation and “though decisions”.

Leaders in today’s society are expected to be social scientist and the great leaders of today and
tomorrow are those gifted individuals who have mastered the art of motivation. The ability to
understand people and to be able to tap in to their respective motives is the skills that make
difference in today’s society.

11
What separates exceptional leaders from ordinary leaders is the ability to inspire and motivate
employees. In recent studies, researcher at the university of Nebraske-Lincol examined source of
motivation of Nebraska workers in urban and rural settings. The results have demonstrated that
five unique source of motivation exist:

 Intrinsic process-motivated by fun

 Instrumental-motivated by reword
 Self-concept-external motivated by reputation
 Self-concept- internal motivated by challenge
 Goal internalization- motivated by cause or purpose

Each of the five sources requires different organizational and leadership characteristics to tap in
to them. Exceptional leaders will find ways to tap into each source. Those who tap into just one
or two will motivate only a small percentage of their workers and be less effective.

2.9.1. Motivating workers

This section includes a list of 43 ways to motivate workers by gapping in to each of the five
source of motivation; fun, rewards, reputation, challenge, and purpose.

Fun: Some workers really want to enjoy the work they do. Many who enjoy activities they
participate in at work place look forward to the day each morning.

There are 10 things leaders can do to make the work place and the experience of workers more
enjoyable for workers:

 Find out which task are each of your employee’s favorites.

 Find ways to assign more of the tasks they enjoy and fewer of the once they do not like to
do.
 If you are a good joke teller, tell tots of them.
 If you are not much of a joke taller, buy a joke book.
 Plan societal event for your employees.
 Make sure that every meeting has some scheduled fun time
 Always start a meeting with something social.
 Do something interesting with the lunch room.

12
  Create a quote of the week
 Sponsor a company bar be cue.

Rewards

 There are 10 ways to motivate people motivate by rewords:

 Create incentive laden pay scales (les output-lespay)
 Create sale contest
 Create clear work objective and goals.
 Remind workers of what they will get for their efforts.
 Create incentives attached to predetermined objectives and task.
 Give special reward to top performers on a regular basis.
 Offer extra holiday time for outstanding performers.
 Be fair, these workers will watch closely to see what the consequence are of very one’s
actions.
 Follow through on all of your promises.
 Make sure that workers do not receive perks if they have not earned them.

Reputation

 Eight ways to motivate persons who are motivated by reputation.

 Give workers lots of feedback about the way they are performing.
 Give PRAISE in front of other people.
 Criticize these individuals only in private (never of in front of others).
 Tell your workers that you appreciate the work they do.
 Tell people they are important both to the business and to you.
 Ask workers if anything interesting happened to them this weekend.
 Make sure that you give credit to everyone that contribute,
 Put up pictures and biographies of all your employees in accentual place.

13
Challenges

Six ways to motivate people motivate by challenges:

 Stay out of their way and let them do the work if they know how to do it.
 Assign tasks that requires their skills and talents
 Find ways to help them to continually develop their abilities.
 Avoid assigning mundane tasks to those workers.
 Give them a challenge, then get out of their way.
 Give them autonomy to structure and perform their job as they see best.
Purpose

Nine ways to motivate people high in purpose or goal internalization are listed below.

 Communicate the purpose of the task being assigned.

 Make sure the company has vision and mission that it is pursuing.
 Communicate the organization’s vision and purpose and on daily basis.
 Refer to the purpose of organization and “why we exist” when outline strategies and
goals.
 Remind employees of who depends on this organization to succeed.
 Discuss why (in terms of contributing to the mission) things need to occur.
 Remind workers how their efforts make a difference for the company in its pursuit of
it vision
 Make links between their work and the company vision so they can see how they fit
into the bigger picture.
 Include works in the visioning and strategies planning process that they feel they have
a stake in the organizational outcomes.
Source: [Link]/pases/publicatindijsp?publication=1999

14
2.10. Employee motivation impact on organizational performance

Maintaining stability

Employees are a company livelihood. How they feel about the work they are doing and the result
received from that work directly impact on organization performance and ultimately, its stability.
For instance, if organization employees are highly motivated and protective, they will do
whatever is necessary to achieve the goals of the organization as wells keep track of industry
performance to address any potential challenges. This two-prong approach builds an
organization’s stability. An organization whose employees have low motivation is completely
vulnerable to both internal and external challenges because its employees are not going the extra
mile to maintain the organizations stability and unstable organization under forms.

Reduction in productivity

Lack of motivation equates to less work being accomplished, productivity does not disappear; it
is usually transferred to aspects not related to the organizations work. Things like personal
conversation, internet services or taking longer lunches cost the organization time and money.
Reduced productivity can be detrimental to an organization performance and future success.

Negative changes to reputation

Low employee motivation could be due to decreased success of the organization, negative effects
from the economy or dramatic changes or uncertainty within the organization. No matter what
the cause, having the reputation of having unpleasant work environment due to low employee
motivation will ultimately impact how existing and potential clients or parents view working
with an organization. A reputation can proceed on organization and indicate its future in the
industry.

Source: [Link]

15
 CHAPTER THREE
RESEARCH METHODOLOGY
3.1. General Research Design
The study wasemployed descriptive survey research design to carry out the research to describe
the issue and came up with relevant solution.

The main purpose of descriptive research was to describe the state of nature and affaires as if it
exists at present to report what would happen or would be happening (Mandy, 1990).

3.2. Types and source of data

For the study both primary and secondary sources of data were used in order to arrive at the
finding. Primary source of data werecollected from the total employees of the bank. The
secondary data were collected from documents, reports, graphs and forms which were retained in
the bank and other sources like website and related literature.

3.3. Target Population

As indicated above, the researchers was conducted the research on the total population of the
Bank. The total populations of the Bank are generally 55 and all of them were taken as target
population of the study.

3.4. Sample Size and Sampling Techniques

The Researcherswere employed Census technique in the study, the open ended interview (with
bank Manager) and closed ended questionnaires (employees) for the census
[Link] Bank Ethiopian Asella main branch had a total of 55 permanent
employees (as of May 16, 2018).The reason why the researchers used census inquiry for the
research was that the size of the population of the organization was small and it is not so much
expensive and time consuming to collect data from all the population. Because, for small size
population and in need of accurate information, census survey is best fit.

16
3.5. Method of Data Collection
There are several instruments used in the collection of data, and the choice of instrument is
dependent on the purpose of the study. Both the questionnaire and unstructured interview guide
were used as a data collection for the study.

Self-developed questionnaires were administered to respondents. The choice of questionnaire

results it is a useful tool for collecting field data, and also has a cost advantage, options, and
allows respondents to thinks about question items (Cooper & Schindler, 2000). The
questionnaire was developed based on the research questions posed by the study. The
questionnaire composed of three parts. The first part, which is Part I presents demographic
information about respondents, and the second part and third part (Part II and Part III) consisted
of statements related to the Motivational Question and Semi-structured interview respectively.

The interview question was also designed in accordance with the objectives of the study,
especially researchers undertaken it with CBE Asella main branch Manager about the general
aspects of CBE employee and general profile of the Organization.

3.6. Data processing and Analysis

After collection of filled and returned back questionnaires’ from respondents using the above
sampling and data collection method, data analysis would be done. The report would be prepared
on the basis of data collected from the respondents. The data was analyzed using descriptive
analysis with tabulation, percentages and statements.

17
 CHAPTER FOUR
DATA ANALYSIS AND DATA PRESENTATION

This section is concerned with analysis and interpretation of data that were gathered by primary
source. These data mainly analyzed and interpreted item in the form of table computation and
summery format. The questionnaires were distributed for 55 employees. Even though the
questionnaires were distributed for 55 employees only 43 of them were responded in appropriate
manners. So, data analysis and interpretation were based on 43 employees.

4.1. General employee’s background

Under this portion the analysis and interpretation were mainly consist of sex, age, educational
qualification and marital status

Table 4.1 Age, sex, educational level and martial tutus of respondents

Item Response Number of Percentage

respondents
Age Below 25 10 23
26-35 20 47
36-45 8 19
46 and move 5 11
Total 43 100
Educational level Diploma 4 9
Degree 39 91
Master -
PHD -
Total 43 100
Sex Male 28 65
Female 15 35
Total 43 100
Marital status Married 15 35
Unmarried 28 65
Widow -
Divorce -
Total 43 100
Source: compiled from questionnaire, 2018

18
According to table out of the total respondents 20(47%) were below 25, 10(23%) were between
age. 26-35, 8(19%) were between age 36-45 and the remaining 5(11%) were above 46 age
regarding marital status 15(35%) marred, 28(65%) were UN married and there were no widow
and divorce employees in the organization. Among total respondents 28(65%) were male and
15(35%) were female. On education side 4(9%) were diploma holders, 39(91%) were first
degree holders and. To conclude, most of employees found below age 26-35, degree holders,
male and unmarried.

4.2. Motivational practice

Table 4. 2. Response on motivational practice in organization

Items Response Number of respondent Percentage

Is there motivational Yes 43 100
practice in your NO
organization
Total 43 100
If you there is Financial 43 100
motivational practice Non finical - -
in your organization
which types of
motivational tool is
used?
Total 43 100

The above table depicts that out of total respondent 43(100%) said “Yes” that indicate there were
motivational practice in the organization and no employees replied NO that indicate there were
not motivational practice in the organization. So, as all of employees replied that there were
motivational practices in the organization, it is better for organization to practice motivation in
order to enhance productivity. In addition, all employee show said yes for existence of

19
motivational practice in organization again the said there were financial motivations in
organization

4.3. Motivational impact

Table 4. 3, Response about motivational impact on productively

Items Response Number of Percentag

respondent e
What is your opinion about the Satisfied -
payment system of the Very satisfied -
organization? Dissatisfied -
neutral 43 100

43
Total 100
If you satisfied with payment Recognition letter, 43 100
system of your organization, what high position for
is your contribution? future

Total 43 100
Source: compiled from questionnaire, 2018

The above table depict that among total respondents 43(100%) replied they were neutral with the
payment they receive that indicate not negative or not positive effect on employee performance.
So, since all of respondents were neutral there is no doubt to say there is no good payment or
good payment system in the organization.

20
 4.4. Additional reward system
Table 4.4. Response about additional reward system

Items Response NO of Percent

respondents age
Is there additional reward system to Agree 26 61
who Performance better Disagree 17 39
Strong agree -
Strong disagree -

Total 43 100
As it shown in above table 17 (39%) of employees said “disagree” that indicate there were no
additional reward system in the organization and 26(61%) of them said “agree” that depict there
were additional reward system in the organization.

4.5. Security of job

Table 4. 5. Response on security of job

Items Response No of Percentage

response
What do you think Satisfied 28 65
about job security of Dissatisfied -
the organization neutral 15 35

Total 43 100

According to the result in above Table 28(65%) respondents said that satisfied about job security
15(35%) said that neutral. No respondents replied dissatisfied. As majority of respondents replied
that satisfied on their job security of the organization.

21
 4.6. Punctuality of employees
Table 4.6 Response about punctuality of employees

Items Response No of response Percentage

Are you punctual for your job Yes 28 65
NO 15 35
Total 43 100
Items Response No of response Percentage
If you responded for question The 15 35
above No what is the reason? motivational
practice is
not good in
the
organization
Total 15 35

The above able show that among total respondents 15(35%) said “No” that indicate they were
not punctual to their jobs and 28(65%) said “Yes” that indicate they were punctual for their jobs
that again indicate there no problem in the organization. Furthermore, employees who were
absent or not punctual replied that the reason for absenteeism were the organization has not well
in motivation practice. In addition, all employees who said No. for who not punctual for

Their job they said the reason for not punctual for their job due to low salary and low
motivational. So the organization increases both reward and motivation, the degree of turnover
not punctual.

4.7. Staying in organization

Table 4. 7. Response on staying in organization

Items Response No of response Percentage

Do you happy If you stay in the Yes 30 69
organization NO 13 31

22
 Total 43 100
If ‘YES’ in above question what is your I have do 30 69
contribution? my duties
&
responsibi
lity
effectively
Total 30 69
Compiled from questionnaires 2018

The above tale show that out of total employees 30(69%) said “Yes” that indicate they are happy
and want to stay in the organization while 13(31%) said “NO” that indicate they want to leave
the organization. So if the organization motivate and make them to stay in the organization it is
good for it performance.

4.8. Effect of motivation

Table 4.8 Response about effect of motivation

Items Response No of response Percentage

Is there positive effect of Agree - -
motivation on performance in Disagree 18 42
your organization? Strong - -
agree 25 58
Strong
disagree

Total 43 100
Compiled from questionnaires 2018

23
The above table show that 18(42%) of employees said “disagree” that indicate there were no
positive effect of motivation and 25(58%) said “strong disagree” that indicate there were never
positive effect of motivation on performance in their organization.

4.9. Effect of Absenteeism

Table 4.9. Response on Absenteeism of employees

Items Response No of Percentage

response
Is there effect Absenteeism of employee Agree 33 78
from job on the organization Disagree 10 22
performance? Strong agree
Strong disagree
NO
Total 43 100
Your salary level is satisfactory? Satisfied 12 28
very satisfied - -
dissatisfied - -
neutral 31 72

Total 43 100
Compiled from questionnaires 2018

The above tale show that out of total employees 33(78%) said “agree” that indicate there where
Absenteeism have effect of employee from job and while 10(22%) said “disagree” that indicate
they were not effect of employees from job. And out of total employees 12(28) said “satisfied”
that indicate their salary level is satisfied. And 31(78) said “neutral” that indicate they were
interest to something.

24
Table 4.10. Response on who fairly rewarded in the organization

Items Response No of Percentage

response
Employees are fairly rewarded in Agree 26 60
your organization? Strong agree -
Disagree 17 40
Strong disagree -

Total 43 100
Compiled from questionnaires 2018

According to above table 26(60%) of employees said “agree” that indicate there were employees
who fairly rewarded in the organization and 17(40%) said “disagree “that indicate there were
employees who not fairly rewarded in the organization

Their job they said the reason for not punctual for their job due to low salary and low
motivational. So the organization increases both reward and motivation, the degree of turnover
not punctual.

NO Items response NO 0f response percentage

1 Doesthe organizationmanage Yes 33 77%

employees motivation efficiently
and effectively
No 10 23%

Total 43 100%

Table 2.2 Employeesmotivation management

25
As illustrated in table 2.2 above 33( 77% ) of respondents replied that organization manage
employees performance efficiently and effectively and 10( 23% ) of respondents of employees
replied that the organization didn’t manage employees motivation efficiently and effectively.

Table 2.3 method of motivating employees

N Items Response NO of response Percentage

O

2 Which method the organization Financial 30 70%

used to motivate employees

Non-financial 13 30%

Total 43 100%

As illustrated in table 2.3 above 30( 70% ) of employees replied that the organization used
financial motivation in order to motivate employees and 13( 30%) of employees replied that
we are motivated for non-financial rewards or the organization motivated us by non- financial
motivation. Thus researchers concluded that large number of respondents / employees replied
that we are motivated by financial motivation.

Table 2.4 effect of employee’s motivation on organizational performance

NO Items response NO of response Percentage

3 Does employees motivation Yes 10 23%

affected the organization
performance
No 33 77%

26
 Total 43 100%

As described in table 2.4, 10( 23% ) of respondents replied that motivation of employees affected
the organization performance and 33( 77% ) of respondents /employees replied that motivation
of employees couldn’t affect the organization performance. Thus researchers concluded
that large number of employees replied that motivation of employees couldn’t affect the
organization performance.

Table 2.5 method of measuring the employee’s performance

NO Items response NO of response Percentage

4 What method the organization Control system 20 47%

used to measure the employees
performance computer system 10 23%

Training system 7 16%

other 6 14%

Total 43 100%

As illustrated in table 2.5, 20(47%) of respondents replied that the organization used control
system to measure the employees performance and 10( 23%) of respondents/employees replied
that the organization used computer system to measure the employees performance and 7( 16% )
of respondents replied that the organization used training system to measure the employees
performance and 6( 14%) of employees replied that the organization used other factors to
measure employees performance.

27
Table 2.6 current influence of employees on organizational performance

NO Items response NO of response Percentage

5 What is the current influence High 20 47%

of employees performance
on the organizational
performance Fewer 10 23%

Medium 13 30%

Total 43 100%

As mentioned table 2.6, 20(47% ) of employees replied that current influence of employees on
organization was high and 10( 23%) of employees replied that current influence of employees
on organizational performance was fewer and 13( 30% ) of employees replied that current
influence of employees on organization was medium.

28
 CHAPTER FIVE
CONCLUSION AND RECOMMENDATION
5.1. Conclusion
Most of the employees of commercial banks of Ethiopia in Asella Brach are found below the age
of 25 and most of them are male

Commercial bank of Ethiopia used financial motivation to motivate employees.

Motivation has positive impact on the productivity of the organization.

There is no sufficient and enough monthly salary for employees. This less payment has
an adverse effect on the motivation, further on the productivity of the organization
performance as whole.

Most of the workers of the organization dissatisfied with payment system of organization
and there is not good payment system in the organization.

There is no good opportunity for promotion and no additional reward system for who
perform better.

Almost all of the workers happy to stay in the organization.

Most employees of organization are not punctual because the organization is not good in
motivational practice.

29
 5.2. Recommendation
Based on the analysis of fact and findings, the followings are recommended to upgrade
employee’s motivation that has positive impact on productivity of commercial bank of Ethiopia
in Asella Brach.

The company should practice the system of increasing the scale of salary and rewards for those
whose productivity is better than others.

Since dissatisfaction of employees leads to turn over which has adverse impact on
productivity of organization, the organization should satisfy those who were dissatisfied.

Due to the fact that motivated employees have good commitment to the organization and
perform their job accordingly, the organization should give the chance of motivation to
employees.

The management of the organization should be approachable and listen the comment of
employees regarding motivation problems in the organization to increase the performance of
the organization.

Prime focus should be given on the side of organization for employees who perform better
and initiate other employees in order they perform better.

The organization should follow up the employees who are not punctual to their jobs and
make them punctual.

Since the organization was good in a system of staying employees, they should continue in a
good manner for future.

30
 References
1. Kreitner, R. & Cassidy, C. (2012) “Management”,Cengage Learning
2. Llopis, G. (2012) “The Top 9 Things That Ultimately Motivate Employees to
Achieve”, Forbes, April 6, 2012
3. Lockley, M. (2012) “The Secret to Motivating a Team” The Guardian, January 6,
2012
4. Maslow, A.H. (1943) “The Theory of Human Motivation” Psychological Review
5. Shields, J. (2007) “Managing Employee Performance and Reward: Concepts,
Practices, Strategies” Oxford University Press
6. Thomas, K.T. (2009) “Intrinsic Motivation at Work: What Really Drives Employee
Engagement” 2nd edition, Berrett-Koehler Store.

31
 APPENDIX
ARSI UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

SURVEY QUESTINONNAIRE ON THE ON THE EFFECT OF EMPLOYEE

MOTIVATION ON ORGANIZATION PERFORMANCE

Dear respondents, the purpose of this questionnaire is to collect data for the study about effect
of employee motivation on organization performance in case of CBE Asella main branch..
Responding to this questionnaire will not create any harm. Therefore you are kindly requested to
respond with confidence while you are asked.

NB: No need to write your name

i) Put a “X: mark for your answer

ii) Please give brief description for open ended questions.
iii) For closed end question give your answer on the space provided.

PART I: RESPONDENTS BACK GROUND

1.1 Sex male  female 

1.2 Age less than 25 years  26-35 years 

36- 45 years  46 -55 years above 56 

1.3 Education level

Diploma  first Degree  PHD 

Master (2ndDegree) 

1.4 Marital status

Married  Widow  UN married  Divorce 

32
 PART 2: QUESTIONS RELATED WITH MOTIVATION

1) Is there motivational practice in your organization?

Yes  No 

2) If you said “yes” for question one which types of motivation?

Financial  non-financial 

3) Do you think you would be happy on your organization performance?

Yes No

4) If yes in above question what is your contribution?

________________________________________________________________________
__________________________________________________________
5) If you said “NO” for 4 question what is your reason?
________________________________________________________________________
____________________________________________________________
6) What is your opinion about the payment system of organization?

Satisfied  neutral 

Very satisfied  dissatisfied 

7) Is there any additional- reward system to those who perform better?

Agree  Disagree 

Strong Agree Strong Disagree

8) If agree in above question what are they?

_________________________________________________________________

9) What do you think about job security of the organization?

Satisfied  neutral  Dissatisfied 

33
10) ARE you happy and punctual for your job?

Yes  No 

11) If you responded for question No 10 is No .what is the reason?

______________________________________________________________________________
_________________________________________________________

12) Is there positive effect of motivation on performance in your organization?

Agree Dis agree

Strong agree Strong disagree

13) Is there effect Absenteeism of employees from job on the organization performance?

Agree Disagree Strong Agree Strong Disagree

14) Your salary level is satisfactory?

Satisfied Dissatisfied

Very Satisfied Neutral

15) Employees are fairly rewarded in your organization?

Agree Disagree

Strong agree Strong disagree

16. Does the organization manage employees’ motivation efficiently and effectively

Yes No

17which method the organization used to motivate employees

34
Financial nonfinancial

18. Does employees motivation affected the organization performance?

Yes No

19. What method the organization used to measure the employees performance

Control system Computer system

Training systemothers

20. What is the current influence of employees’ performance on the organizational performance

High Fewer medium

35