ADDIS ABABA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF HUMAN RESOURCE MANAGMENT

ASSESSING THE EFFECT OF MOTIVATION ON JOB SATISFACTION AND

EMPLOYEES PERFORMANCE: CASE OF COMMERCIAL BANK OF
ETHIOPIA

BY
RUTH GETAHUN

Advisor: ABDUREZAK MOHAMMED (PHD)

JUNE, 2020
ADDIS ABABA, ETHIOPIA
 ASSESSING THE EFFECT OF MOTIVATION ON JOB SATISFACTION AND
EMPLOYEES PERFORMANCE: CASE OF COMMERCIAL BANK OF
ETHIOPIA

BY
RUTH GETAHUN

A THESIS SUBMITTED TO SCHOOL OF COMMERCE, IN PARTIAL FULFILMENT

OF THE REQUIRMENTS FOR THE DEGREE OF MASTER OF ART IN HUMAN
RESOURCE MANAGEMENT

JUNE, 2020
ADDIS ABABA, ETHIOPIA

2
 ADDIS ABABA UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF HUMAN RESOURCE MANAGMENT

ASSESSING THE EFFECT OF MOTIVATION ON JOB SATISFACTION AND

EMPLOYEES PERFORMANCE: CASE OF COMMERCIAL BANK OF
ETHIOPIA

BY
RUTH GETAHUN

APPROVED BY BOARD OF EXAMINERS

Dean, Graduate studies

Advisor

_
External Examiner

_
Internal Examiner
DECLARATION

I Ruth Getahun Sherefa, declare that this thesis is my original work, prepared
under the guidance of Abdurezak Mohammed (PHD). All sources of materials
used for the thesis have been duly acknowledged. I further confirm that the thesis
has not been submitted either in part or in full to any other higher learning
institution for the purpose of earning any degree.

Ruth Getahun Signature

Addis Ababa University, School of Commerce, Addis Ababa June, 2020

1
ENDORSEMENT

This thesis has been submitted to Addis Ababa University, School of Commerce
for examination with my approval as a university advisor.

Advisor Signature
Addis Ababa University, School of Commerce, Addis Ababa June, 2020

2
 List of Tables
Title Page
Table 3.1.List of Sample Branches................................................................................29
Table 4.1: Frequency Distribution of Demographic Variables.....................................32
Table 4.2: Employees Response on Salary and Benefit.................................................34
Table 4.3: Employees Response on Promotion.............................................................37
Table 4.4: Employee Response on Recognition............................................................41
Table 4.5: Employees Response on Work Content.......................................................44
Table 4.6: Employees Response on Working Condition................................................47
Table 4.7: Employees opinion on motivation, job satisfaction and
Employee performance...................................................................................................50
Table 4.8: ANOVA analysis..........................................................................................52
Table 4.9: Correlation Matrix........................................................................................53
Table 4.10: Coefficient Matrix on the two....................................................................53
Table 4.11: Coefficient Matrix on the three....................................................................54

3
 List of Figures

Figures Page
Figure 2.1.Maslow’s Hierarchy of Needs.........................................................12
Figure 2.2.Herzberg’s Motivator-Hygiene Theory............................................14
Figure 2.3.ERG Model.......................................................................................15
Figure 2.4.Vroom’s Expectancy Model..............................................................17
Figure 2.5.Conceptual Frameworks....................................................................24

4
 Table of Content
Content Page
Acknowledgement...................................................................................................I
List of Acronyms....................................................................................................II
Abstract...................................................................................................................III
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study....................................................................................1

1.2 Background of the Organization.........................................................................3

1.3 Statement of the Problem...................................................................................4

1.4 Research Questions.............................................................................................6

1.5 Hypothesis of the Research.................................................................................6

1.6 Objective of the Study..........................................................................................7

1.7 Significance of the Study......................................................................................7

1.8 Scope of the Study................................................................................................8

1.9 Limitation of the study...........................................................................................8

1.10Definition of Terms...............................................................................................9

CHAPTER TWO
REVIEW OF RELATED LITERATURE

2.1Theoretical Lit erature Review..........................................................................10

2.1.1Motivation..................................................................................................10
2.1.2Theories of Motivation...............................................................................11
2.1.2.1........................................................................................Content Theory 11

5
 2.1.2.1.1...........................................................Maslow’s Hierarchy of Needs 12
2.1.2.1.2.........................................................Herzberg’s Two–Factor Theory 13
2.1.2.1.3.....................................................................Alderfer’s ERG Theory 15
2.1.2.1.4.....................................................Mc Cleland’s Three Needs Theory 16
2.1.2.2......................................................................................Process Theory 16
2.1.2.2.1.............................................................................Expectancy Theory 17
2.1.2.2.2.....................................................................................Equity Theory 18
2.1.2.2.3...........................................................................Goal Setting Theory 19
2.1.3Motivational Factors....................................................................................19
2.1.3.1.....................................................................................Salary and Benefit 20
2.1.3.2...............................................................................................Promotion 20
2.1.3.3.............................................................................................Recognition 20
2.1.3.4.........................................................................................Work Content 21
2.1.3.5....................................................................................Working Condition 21
2.2 Empirical Review...................................................................................................22
2.3 Conceptual Framework..........................................................................................23

CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY

3.1 Research Approach...............................................................................................25

3.2 Research Design...................................................................................................25
3.3 Research Population..............................................................................................26
3.4 Sampling and Sampling Techniques.....................................................................27
3.5 Source and Method of Data Collection..................................................................29
3.6 Data Analysis Method.............................................................................................30
3.7................................................................................................Validity and Reliability 31
3.8Ethical Consideration.............................................................................................31

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 CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.1Response Rate......................................................................................................32
4.2Response Profile....................................................................................................32
4.3Descriptive Analysis of Response..........................................................................34
4.3.1Salary and Benefit...........................................................................................34
4.3.2Promotion.........................................................................................................37
4.3.3Recognition......................................................................................................41
4.3.4Work content.....................................................................................................44
4.3.4 Work condition.................................................................................................47
4.4Multiple regression analysis of employee response...............................................50
4.5Mediation reporting result.........................................................................................55

CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1Summary of Major Finding......................................................................................58

5.2Conclusion..............................................................................................................60
5.3Recommendation....................................................................................................61
Reference.....................................................................................................................63
Appendix.......................................................................................................................68

June, 2020
Addis Ababa, Ethiopia

7
 ACKNOWLEDGMENTS
First, I am truly indebted to thank the almighty God, not only for the successful accomplishment
of this paper but also for his bright gifts throughout my life from the beginning wherever I go.
I am heartily grateful to express my deepest gratitude to my advisor, Abdurezak Mohammed
(PHD) for all his expert guidance, valuable suggestions and encouragement from the
commencement to the final write-up of the thesis. I thank you deep in to my heart.
I would like to extend my love and respect to my husband, Ato Telila Bacha and all my family
for they spent their entire life living for me. What you owe me is a lot to repay.
Special thanks also goes to Commercial Bank of Ethiopia for giving me the needed material
documents necessary for this study. In addition, I would like to express my appreciation to CBE
sixteen branch staff members for filling out my questionnaire.
My sincere thanks also go to my colleagues and friends for their unreserved contribution for the
successful accomplishment of my graduate study starting from the very beginning. Last, but not
by any means least, and yet importantly, I want to extend my sincere thanks to all CBE Gara
Bolo staff who was very cooperative to participate in questioner and in-depth interview by taking
time.

Ruth Getahun

I
LIST OF ACRONYMS

BBO Banking Business Officer

CBE Commercial Bank of Ethiopia
HRHuman Resource
SBBO Senior Banking Officer
SPSS 25 Statistical Software Package for Social Science Version 25
ABSTRACT
The aim of this research paper is to assessing the effect of motivation on Job satisfaction and
lead to Employee Performance by the case organization, Commercial Bank of Ethiopia.
Motivational factors (Salary and Benefit, Promotion, Recognition, Work Content, and Working
Condition) are assessed in order to find motivation effect on job satisfaction. The study takes job
satisfaction as a mediator between motivation and employee performance. The study was
conducted based on the data gathered from sixteen branches of commercial bank of Ethiopia. A
mixed research approach was used to answer the research questions that emerged through the
review of existing literature and the experiences of the researcher in respect to effect of
motivation on job satisfaction and lead to employee performance. The study statistically
analyzed data obtained from the survey questionnaire. A research framework developed based
on Herzberg Two Factor Theory and modified by the researcher is used to guide the study. The
result of the study indicated that job satisfaction is highly lead employees to performance in
other word job satisfaction is a significant and strong mediator between motivation and
employee performance but related to motivation employees are not satisfied and motivated with
the current procedure carried out by the bank. It revealed that they are mostly not satisfied with
the promotion, recognition and work content practice of the bank. The study suggests different
measures include: drafting and implementing clear and appropriate career advancement
procedures, providing proper and timely recognition as part of the system, the basis of
motivational procedures taken up by the organization should follow the interest of employees,
and shaping and implementing appropriate motivational techniques in order to satisfy its
employees and to get high employee performance In order to achieve organizational objectives.

Key words: Motivation, Job Satisfaction, Employee Performance, Salary and Benefit,
Promotion, Recognition, Work Content, and Working Condition
 CHAPTER ONE
INTRODUCTION
1.1. Background of the Study
Workers in any organization need something to keep them working. Employee motivation is one
of the major issues faced by every organization. Understanding what motivates employees is one
of the key challenges for managers (Armstrong, 2006).Motivation is the internal and external
factors that lead an individual to engage in goal-related behavior (Robbins, 2002). Motivation
can affect the intensity, direction, and persistence a person shows in working toward a goal.
Intensity is concerned with how hard a person tries. High intensity is unlikely to positively affect
job performance unless the effort is channeled in a direction that is useful and persistence is a
measure of how long a person can maintain his or her effort. Motivated individuals stay with a
task long enough to achieve their goal (Robbins, 2002).

Increasing motivation and raising levels of commitment and engagement are key organization
imperatives (Lawyer, Boudreau, & Mohrman, 2006). In order to increase HR’s contribution to
organizational effectiveness in the future, organizations must rethink its basic value, proposition,
structure, services, and programs in order to address how it can add value in its human resources
(Lawyer, Boudreau, & Mohrman, 2006). People have always been important to organization,
because they provide inspiration, creativity, vision, and motivation that keep and also maintain
an organization alive. They provide the skills and competencies required to make an organization
work. And of course they provide the labor that produces the goods and services that an
organization supplies. They are a major and often the most important resource that an
organization has. Giving close attention to how individuals can best be motivated through such
means as incentives, rewards, leadership and, importantly, the work they do and the organization
context within which they carry out that work is necessary (Armstrong, 2006).

Management should extend good workable environment and use different strategies and skill to
motivate workers to be more efficient and to have higher performance and job satisfaction. If
workers are motivated and satisfied in their job; they will exert high effort to the organization
goal and try to be creative by developing new mechanism of doing their job to improve their

1
performance. Management should also maintain good and sustainable performance using
different extrinsic and intrinsic motivation factor. The challenge for today’s management is to
administer motivational programs which will encourage employees to improve their work
performance and productivity. Managers of companies in the financial services industries are
therefore adopting various kinds of motivational packages not only to retain employees but also
help them to achieve competitive advantage in the all market.

The motivation of a banks’ employee plays a major role in achieving high level of satisfaction
among its customers (Petcharak, 2002). Commercial banks play important roles in worldwide
economies and their employees are the best sources of delivering good services to their
customers. Excellent services provided and offered by employees can create a positive
perception and ever lasting image in the eyes of banks’ customers. Commercial Bank of Ethiopia
is one of the financial service industries and the largest government owned commercial bank in
Ethiopia. The bank provides a variety of integrated services ranging from deposit, credit, trade
services, card banking, and foreign banking to the new and modern internet and mobile banking
services. Now a day, CBE carries a comprehensive banking business such as, providing different
types of loans for borrowers, Internet Banking, Mobile Banking, ATM/Visa Card, Interest Free
Banking, different types of saving deposits, providing local and foreign money transfer and
facilitating domestic and international trade in and between the country with the help of its 1456
(one thousand four hundred fifty six) branches as of June 30, 2019 and around 22,908 ( twenty
two thousand nine hundred eight) employees all over the country (CBE, 2018/19). Commercial
Bank of Ethiopia (CBE) faces a number of challenges related to human resource like many
banking industries; one of the challenges is motivation. Therefore this study is conducted with
the aim of assessing the extent to which motivation has effect on job satisfaction and lead to
employee performance by taking commercial bank of Ethiopia as study unit.

In this study, the researcher used relevant theories in the field of motivation related to job
satisfaction and employee performance and assess whether or not these theories are in check with
actual human resource situations and also try to find the mediation effect of job satisfaction
between motivation and employee performance with in Commercial Bank of Ethiopia.
Motivational factors like Salary and Benefit, Promotion, Recognition, Work content, and
Working condition are applied to assess the motivation.

1.2. Background of the Organization (Commercial Bank of Ethiopia)

Commercial Bank of Ethiopia (CBE) is the leading and pioneer bank to introduce modern
banking to the country which was established in August 1942 G.C. (CBE, 2018/2019). Since its
establishment it has made a lot of developments and currently it has more than 1456 branches
stretched across the country. It is leading African bank with an asset of 711.96 billion birr as of
June 30 2019. CBE plays a significant role in the economic progress and development of the
country. Since its creation up to 1963 GC CBE combined official and private functions acting at
the same time as a Central Bank of Issue and the only important deposit Bank operating in the
country. Now a day, CBE carries a comprehensive banking business such as, providing different
types of loans for borrowers, Internet Banking, Mobile Banking, ATM/Visa Card, Interest Free
Banking, different types of saving deposits, providing local and foreign money transfer and
facilitating domestic and international trade in and between the country with the help of its 1456
(one thousand four hundred fifty six) branches as of June 30, 2019 and around 22,908 ( twenty
two thousand nine hundred eight) employees all over the country.

The vision of Commercial Bank of Ethiopia (CBE) is to become a world- class commercial bank
by year 2025 and its mission is: “Being committed to best realizes stakeholders’ value through
enhanced financial intermediation by deploying the best professional and technology” (CBE,
2018/19).

CBE, which is determined to become a world class bank, is rendering state-of-the-art and reliable
and consistent service of its millions of customers. The bank is implementing different strategies
to improve its organizational efficiency in order to deliver quality service. And, it is striving to
outstanding the market competition. Aiming to improve organizational performance, it has been
adapting different business strategies. The strategies of the bank focus on the interest of public it
serves. In order to improve its service delivery and meet its vision, it is therefore needed to
enhance the human power capacity. As a result it has been integrating its strategic objectives
with employee’s objectives, which is intended to deliver successful results in an organization by
improving the performance and developing the capabilities of teams and individual employees.
1.3 Statement of the Problem
Organizations are place in order to achieve some set goals and to achieve these goals and
objective, motivated human resource is the most important one. Motivation is crucial for
organizations to function; without motivation employees will not put up their best and the
company’s performance would be less efficient (Halepota, 2005). Motivating employees requires
a profound understanding of individual differences, human nature and perceptions (Armstrong,
2006). Understanding the meaning of motivation or what motivation is will help managers to
decide what actions have to take to motivate their employee as much as the organization needed.
Most employers today would like to have their employees motivated, but do not understand what
truly motivates them. In order to solve these challenges, companies should create a strong and
positive relationship with its employees and direct them towards task fulfillment. If the
employees are not satisfied with their jobs and not motivated to fulfill their tasks and achieve
their goals, the organization cannot attain success.

Employees want to earn reasonable salaries, as money represents the most important incentive,
when speaking of its influential value (Sara, 2004). According to this statement, pay has a major
effect in establishing employees’ diligence and loyalty, and is a key motivator for employees.
But there are many contradicting ideas, studies have shown that pay does not boost productivity
on the long term and money does not improve performance significantly (Whitley, 2002).

In the case of many organizations in Ethiopia, we can observe that implementation of appropriate
motivational strategies and techniques are very much neglected. This lack of appropriate
motivational strategies and techniques may lead to a higher level of turnover rate, absenteeism,
job dissatisfaction and other related issues, which are all directly related to productivity of
employees or employee performance. And when employees are not productive and not using
their full potential, it will highly affect the profitability of the organization.

Service industry jobs have human business nature , so it’s all about selecting people who are
properly or correctly suited to excel in a customer service environment and then improve the
skill level of those workers to help meet new market demands and lead to continuous
improvement of a service organization’s performance. As the banking industry is a major service
industry which plays a fundamental role in the economic development of any nation, it needs to
have well motivated and committed employees so that it’s possible to achieve its stretched goals
and objectives. CBE is one of the largest banking industries in our country and creating
motivated and proficient employees is one of its strategic goals by 2025. In the current
competitive market environment among local organizations and the need for national and
international competitiveness calls for improved performance of each individual and teams
working together to achieve organizational goals. Without having a high performing employee
and units it will be difficult for organizations to compete with national and international market.

From the researchers’ judgment as employee of CBE for more than six years, I observed a wide
array of problems related to motivation and also job satisfaction which can lead to employee
performance. Most of employees are not interested on their job and majority of them think that
they are not a good fit for the job they are doing but most of employees in the bank have direct
contact with customers all the time. As a result of this they fail to deliver accurate customer
service with full respect to customer, and obviously this is followed by high levels of customer
compliant which have a great effect on the bank.

Recently, the bank has made attractive salary revision including different allowance packages
and develops new structure which is aimed to motivate employees for higher level of
performance and job satisfaction. However, authorities in the bank are claiming that the new
salary and benefit adjustments are not helping the bank to motivate employees as per the
expectations made in advance. Employee motivation plan is a difficult task to many managers
because it is exposed to many expected or unexpected errors if it is not carefully administered.
Careless handing of employee motivation plan leads to poor decision regarding motivational
issues, which has an adverse effect on employee performance and job satisfaction. Thus this
research is tried to assess the extent to which motivation has effect on job satisfaction and lead to
employee performance by taking salary and benefit, promotion, recognition, work content and
working condition as quantitative testing variables in order to measure motivation.
1.4 Research Questions
In today’s work place where issues such as competition, technology, downsizing, reengineering
and others are dominant, organizations must do more than pay well. They need to create a
comprehensive human resource model that provides a dynamic, rewarding and empowered
environment to the employees so that they would be able to meet the expectations of customers
and other stakeholders of the company.

Organizations could be more efficient if the employees had an invested interest in the future of
the company but that is possible if employers understand what truly motivates employees. This
research is conducted to assess the extent to which motivation has effect on job satisfaction and
lead to employee performance by addressing the following basic questions throughout the research:
Q1.What is the relation between motivation and job satisfaction?
Q2. What is the relation between job satisfaction and employee performance?
Q3. What techniques are used to motivate employees in the company?
Q4. What is employee’s perception towards the five motivational variables (salary and
benefit, promotion, recognition, work content, and working condition) of the
organization?

1.5 Hypothesis
Based on the problem statement and research questions of the study the following hypothesis
will formulate:
 There is positive relation between motivation and job satisfaction.
 There is positive relation between job satisfaction and employee performance.
 There is positive relation between salary and benefit, promotion, recognition, work
content, work condition and motivation.
1.6 Objective of the Study
1.6.1 General Objective
The main objective of this study is to assess the extent to which motivation has effect on job
satisfaction and lead to employee performance in case of commercial bank of Ethiopia.

1.6.2 Specific Objectives

The specific objectives of the study are the following;
1. To examine the effect of motivation on job satisfaction.
2. To find out the relationship between job satisfaction and employee performance.
3. To identify the techniques used to motivate employees in the company.
4. To evaluate employee’s perception towards the five motivational factors (salary and
benefit, promotion, recognition, work content, and working condition) in the
organization.

1.7 Significance of the Study

The study is expected to generate the following benefits:
1. It assesses and creates a good understanding of the current motivational factors that is
practiced in Commercial Bank of Ethiopia to increase job satisfaction and gain high
employee performance.
2. It creates great value too many organizations to have a good understanding about effect
of motivation on job satisfaction and also the relationship between job satisfaction and
employee performance.
3. It improves the awareness of managers in motivating the workforce and expected to
contribute to the existing body of knowledge and literature.
4. It improves the practice of managers in the area of motivation in order to increase job
satisfaction and also it can improve policy makers practice in the area of motivation.
5. It is also used as a source of document by providing useful information for researchers
who will be interested to conduct further study on the area under investigation.
6. It gives support in alerting the Human resource managers of CBE to maximize on their
strength and correct their weakness through managing process to achieve their objectives.
1.8 Scope of the Study
The study is narrowed to the matter of assessing the extent to which motivation has effect on job
satisfaction and lead to employee performance in case of Commercial Bank of Ethiopia (CBE).
CBE has 1456 branches as of June 2019, so it is also bordered to branch outlets and offices
located in Addis Ababa so as to make information being easily and precisely available. The
researcher addressed sixteen branches from the two different districts namely south and west
districts under Addis Ababa city branches. These sixteen bank branches are selected due to time
constraint face by the researcher to cover the whole population. It is difficult to involve the
whole population in a research study because it consumes time and resource. Thus, selecting a
representative sample out of the population is important. The sixteen bank branch consists of 536
employees and it is considered as a research population. The representative population (224
employees) selected out of the research population. The researcher only assesses the extent to
which motivation has effect on job satisfaction and lead to employee performance and only
taking five motivational factors namely, salary and benefit, promotion, recognition, work content
and work condition of the organization to evaluate motivation.

1.9 Limitation of the Study

This study required availability of sufficient resources like time, budget, and also other resource,
and due to limited time and budget the researcher give, the researcher is not focus on other
branches, so that the finding and conclusions are more general. In addition, the willingness of
selected employees to give adequate information for conducting the study is another limitation.
Another challenge for this study is lack of the experience of the researcher and the current
situation faced in our country and all over the world which is COVID.
1.10 Definition of Terms
Motivation: Motivation is defined as a willingness of an individual to put forth high levels of
effort toward organization goals while simultaneously satisfying his or her needs (Armstrong,
2006).

Employee Work Motivation: refers to the driving force by which employees try to deliver their
service (Robbins & Judge, 2013). It is also a set of energetic forces that originate both within as
well as beyond an individual’s being, to initiate work-related behavior, and to determine its form,
direction, intensity, and duration (Robbins & Judge, 2013).

Job Satisfaction: describes how much an individual’s pleased, comfortable or satisfied with his
or her job. Job satisfaction can be defined as the extent of positive feelings or attitudes that
individuals have towards their job (Chandan, 1994).

Benefits: include both monetary and non-monetary reimbursements to the employees such as
pension benefits, medical benefits etc (Armstrong, 2009).

Promotion: refers to opportunities that organizations offer for advancement. It creates the
opportunity for personal growth, increased levels of responsibility and an increase on social
standing (Robbins & Judge, 2013).

Recognition: refers to acknowledgement of an individual’s contribution showing appreciation

and reward individuals for an accomplishment of task (Robbins & Judge, 2013).

Work Content: task identity, task variety, task significance, autonomy and feedback (Robbins,
2002).

Working Condition: includes working hours, relationship with coworkers and quantity of work
and availability of resources (Robbins, 2002).
 CHAPTER TWO
Review of Related Literatures

2.1 Theoretical Literature Review

2.1.1. Motivation
Just like any other word, variety of definitions can be found for the concept of motivation.
However, for this research purpose it is important to focus on those that are related to the work
place motivation. The word motivation is originally imitative from the Latin word mover; its
meaning is to move. Guay et al. (2010) discuss that motivation mentions to the drive essential
behavior. Motivation is the internal feeling that encourages an individual to involve in specific
manners and thought that motivation it could be observed from two sides (Spector, 2003).
Motivation is an interesting, challenging, necessary and complex area of Human Resource
Management studies which is rapidly shifting both in terms of its nature, understanding,
functions, purpose, as well as method of application. It is generally agreed that managers need
employees to work with respect to organizational strategies. These employees do not only have
to show up at work but more importantly they need to be motivated to perform their duties.
Because the definition of motivation is so complex, it would seem that solution to motivational
problems also would be complex and beyond the capability of managers. People who are well
motivated take action that they expect will achieve their clearly defined goals (Armstrong, 2006).

A vast array of literature exists examining the concept of motivation within organizations.
Experts have not yet agreed on a single definition of motivation (Reid & Parsons, 1995). Perhaps
this is because every person is motivated differently. Motivation is defined as a willingness of an
individual to put forth high levels of effort toward organization goals while simultaneously
satisfying his or her needs (E. Lightfoot, 2002). Different things motivate different people. One
may motivated by praise. Others are motivated by knowing they did a good job. Still others are
highly motivated by being able to cross off all of the items on their to-do list at the end of each
week. Work motivation may be regarded as a set of internal and external forces that initiate
work-related behavior, and determine its form, direction, intensity and duration (Pinder, 1998).
The concept relates to the work context specifically, and includes the influence on work behavior
of both environmental forces, and those inherent in the person.

Motivation is a set of psychological processes that causes the arousal, direction, and persistence
of individual’s behavior towards attaining a goal (Robinson & Judge, 2013). According to this
definition, motivation has three pillars: arousal, direction, and persistence. Arousal is the
intensity of the behavior, direction indicates whether the behavior is in accordance with
organizational goals, and persistence entails lastingness of the behavior. The only way to infer
motivational processes is to analyze streams of behavior caused by environmental or inherited
factors which can be observed through their effects on abilities, beliefs, knowledge and
personality.

Even if there are many definitions about motivation, there are some features of motivation that
are common for most definitions. It can be observed from the examples presented above that
when authors describe motivation they mention an action or behavior that is directed and
sustained as a result of motivation. In other words motivation is usually described as an invisible
force that pushes people to behave in a certain way.

2.1.2. Theories of Motivation

There will be different categories of motivation theories, but for this research purpose the
researcher try to summarize two categories of motivational theories namely; content theories
(Need-based theories) and process theories.

2.1.2.1. Content Theory

Content theory of motivation states that unsatisfied needs create tension and disequilibrium
(Armstrong, 2006). In order to gain balance individuals identify goals and behavioral path ways
that make them to satisfy their needs. The content theories are characterized by emphasis on
what motivates people. They concern with individual goals and needs which are said to be the
same for every person. Although, they assume that all people possess a similar set of needs, they
differ in defining those needs. The content theories focus on the factors within the person that
strengthen, direct, sustain, and stop behavior. The four important content theories of motivation
are:-

2.1.2.1.1. Maslow’s Hierarchy of Needs

Hierarchy theory is developed in 1940 by Dr. Abraham Maslow. His basic propositions is that
people are wanting beings, they always want more, and what they want depends on what they
already have. He believed that all individuals have a set of hierarchy of needs, which they want
to be satisfied.
Figure 2.1 Maslow’s Hierarchy of Needs

Self Actualization
Psychological Higher-Order
Self esteem
Growth Needs
----------------------------------
Social
Lower-Order
Security
Need
Physiological needs

Source: www.maslowneedttheory.com
All are starts at the bottom of the pyramid and works to achieve the goals of the next layer
working to the top sector. No one is able to move on to the next level of the pyramid until the
needs of the first level are met. Once they move to the next level, those needs must be met and if
they are not, then it is possible to fall back down the pyramid.

The physiological need, which is the first level needs are thought to be the most basic needs and
include the need for food, water, and shelter. These needs represent the ground of a theory. The
next step is security, which means that the person’s surroundings are not threatening to them or
their family. If the environment seems to be safe, then it means that there is a sense of certainty
and stability in the surroundings. This could be achieved by creating a retirement package,
securing job position, insurance and other. The third level is social needs, which is one’s desire
to be accepted by one’s peers and to develop friendship and the need to feel a sense of belonging
or to be loved and also feel as though they are a part of the group and included in the work. The
fourth level is explained as self-esteem needs. These needs focus on one’s desire to have a
positive self image and to receive recognition, attention, and appreciation from others for one’s
contribution. In order to fully understand this level, the person must have a high image of them
and encompass self-respect. The final stage is self-actualization, which defined as someone being
all they can be and they have met each of the previous stages. In this particular level, the person’s
talents are being completely utilized. Maslow believes that no one is ever completely self-actualized.
People are always striving to be better and use their talents in new ways.

2.1.2.1.2. Herzberg’s Two-Factor Theory

Frederick Herzberg’s believed that there are two equally important groups of factors relevant to
motivating staff. He suggested that hygiene factors or dissatisfies do not actually motivate, but
needs to be at least satisfactory if they are not happen they lead to de motivate people. The
theory developed from research concerns hygiene factors, which are necessary for the employee
to experience but do not motivate them to work. The explanation for hygiene factors could be a
person’s relationship with the environment in which one operates.

According to Herzberg, the factors leading to job satisfaction are separate and distinct from those
that lead to job dissatisfaction. As a result, such characteristics as salary, status, security,
working condition, fringe benefits, policies and administration practice and interpersonal
relationships have been characterized by Herzberg as hygiene factors. When they are enough,
people will not be dissatisfied; however neither will be satisfied. If we want to motivate people
on their jobs, Herzberg suggested emphasizing on including meaningful work, challenging work,
recognition for accomplishment, increased responsibility and opportunities for growth. These are
the characteristics that people find intrinsically rewarding. (Robbins and Judge, 2010)

Figure 2.2 Herzberg’s Motivator-Hygiene Theory

Motivator Factors
Hygiene Factors

Job Dissatisfaction Job satisfaction

Salary
Meaningful Work
Status
Challenging Work
Security
Recognition for
Working
Accomplishment
Condition Fringe
Feeling of Achievement
Benefits Increased
Policies and Admin Practice Responsibility
Interpersonal Relationships Opportunities for Growth

Source: www.herzbergsmotivator-hygienemodel.com

In general Herzberg’s major contributions were first it is important to argue that work content or
job design was important. His model also appealing easy to understand and it explained well why
hygiene factors did not increase motivation.
2.1.2.1.3. Alderfer’s ERG Theory

As Bancha, 2016 states in his paper even though Alderfer agrees with Maslow in the
arrangement of individual needs hierarchy, he proposed three sets of need hierarchy. Clayton P.
Alderfer proposed the ERG (Existence, Relatedness, and Growth) Theory of motivation in 1972.
His study was based on empirical research in organizational settings. The first group (existence)
is closely related to Maslow’s physiological needs and partly to security needs (only physical
security). Existence needs are concrete in nature and are usually limited. The second relatedness
needs basically consist of the interpersonal security needs, the need for prestige and esteem from
others. Satisfying relatedness needs requires development of relations and interactions with other
people. The last group of needs in Alderfer’s theory contains growth needs. Although, growth
needs are corresponding to Maslow’s self-esteem and self-actualization needs there are some key
differences in a point of view of those two authors. Maslow said that self-actualization consist of
a fulfillment of unique, innate potentials; whereas Alderfer’s growth needs contain desire to
interact with environment by investigating, exploring and mastering it. Based on ERG theory,
managers who focus exclusively on one need at a time do not effectively motivate their
employees.

Figure 2.3: ERG Model

Growth Self Actualization Self Esteem

Relatedness External (social) Esteem Social Needs Satisfaction

Frustration Progression
Regression
Existence Security Physiological Needs

Source: www.ERGmodel
2.1.2.1.4. McClelland’s Three Needs Theory

McClelland’s theory states the three basic motivating need, these are associated with learning
concepts: the needs for achievement, the need for affiliation, and the need for power. The main
subject of McClelland’s theory is that these needs are learned through coping with one’s
environment. As a result of the learning process, individuals develop unique configurations of
needs that affect their behavior and performance. (Bancha, 2011)

According to McClelland (1961), achievement-motivated people are those individuals who have
an imbibed desire to always improve upon their status and such individuals are people who focus
on getting things done and have the potential of becoming managers but most often are not able
to live up to expectation because they are mostly job oriented; they work by using their full
capacity. There is option of that such only job-oriented people, lack interpersonal or human skills
which are necessary to be successful. Even if people may have the competence and ability to be
fruitful or productive, they tend to require a high need of affiliation towards their job, and if this
is not present, then effective management cannot be achieved.

To sum-up, each of the four content theories try to clarify behavior from a significantly different
angle. None of the theories has been accepted as the sole basis for clearing up motivation;
however, each of the theories can provide the manager with some understanding of behavior and
help them to create motivations which affect job satisfaction in the work place.

2.1.2.2. Process Theory

Unlike to content theory process theories of motivation are concerned with answering the
questions of how individual behavior is energized, directed, maintained, and stopped. The main
concern is how motivation occurs and tries to explain how and why peoples’ behavior is directed
to certain choices. The focus of all process theories is put on “the role of individual’s cognitive
processes in determining his or her level of motivation” (Fincham & Rhodes, 2005). Different
process theories of motivation are there but for this research paper the following theories have
been selected.
 2.1.2.2.1 Expectancy Theory
Expectancy theory is one of the most popular explanations of motivation which developed by
Victor Vroom (1984). Vroom has propagated Expectancy theory based on employee expectancy.
He believes that employee is motivated to exert high level of efforts when they believes that their
efforts will lead to good performance and therefore organizational rewards that will satisfy
achievement of personal goals. The focus of the theory has three elements (Kondalkar, 2007)

1. Valence: Vroom notes that Valence is the importance or value that the individual places
on the outcome. Valence is positive if the individual wants to acquire or achieve the
outcome and negative if what the individual will like to avoid. If the individual does not
place much value on the outcome, then their level of effort might change Thus effort is
directly proportional to the outcome.
2. Instrumentality: Instrumentality is deals with what you get from what you deliver; that
is, receiving a valued outcome after one delivers an expected performance.
3. Expectancy: deals with the probability that an outcome will be achieved; that is, putting
in more effort will result in an increase in reward.

Figure 2.4 Vroom’s Expectancy Model

Expectancy Instrumentality
Effort Performance Outcome

Valence
Source: www.vroomsexpectancymodel

Management should recognize individual goal pattern and lay down performance criteria and
reward system. The key is to understand of an individual’s goal linkage between efforts and
performance, between performance and rewards, and between rewards and individual goal
satisfaction.

2.1.2.2.2 Equity Theory

Equity theory said that employees compare their job inputs and outcomes with those of others,
inputs include effort, experience, education, competence, and creativity and outcomes include
salary levels, raises, recognition, challenging assignments, working conditions with those of
others (Kondalkar, 2007). We perceive what we get from a job situation (the outcomes mention
above) in relation to what we put into it (the inputs mentioned above), and then we compare our
outcome-input ratio with the outcome-input ration of relevant others.

Recent research has been directed at redefining what is meant by equity, or fairness. Historically,
equity theory focused on distributive justice, or the perceived fairness of the amount and
allocation of rewards among individuals. But people also care about procedural justice- the
perceived fairness of the process used to determine the distribution of rewards and also they care
about interactional justice-the quality of the interpersonal treatment received from a manager.

Equity theory demonstrates that for most employees, motivation is influenced significantly by
relative rewards, as well as by absolute rewards however, some key issues are unclear. For
instance, how do employees handle conflicting equity signals, such as when unions point to other
employees handle conflicting equity signals, such as when unions point to other employee
groups who are significantly better off, while management argues how much things have
superior than other? How do employees define inputs and outcomes? How do they combine and
weigh their inputs and outcomes to arrive at totals? Despite these problems, equity theory
continues to offer some important insights in to employee motivation (Kondalkar, 2007)

2.1.2.2.3 Goal-setting Theory

The goal-setting theory emphasizes that a goal serves as a motivator. It is important for any goal
to be clear, meaningful, and challenging. The ability of a person can limit his or her efforts to
accomplish goals. If a manager sets a difficult goal and a person lacks the ability to accomplish
it, there will not be accomplishment. As goals are accomplished and evaluated, rewards are
distributed based on the performance received. If the rewards are preferred as discussed in
expectancy theory, employees are likely to be satisfied and motivated. (Bancha, 2011)

Goal-setting is an important management tool for enhancing employee performance. Certain

aspects of goal setting need to be subjected to scientific examination. One such area centers on
individual differences and their impact on the success of goal-setting programs. Factors like
personality, career progression, training background, and personal health are important
individual differences that should be considered when implementing goal setting programs.
Ongoing examination to monitor attitudinal and performance consequences are needed when
implementing goal setting programs. Goal setting can be very influential technique for
motivating employees, especially when used correctly, carefully monitored, and actively
supported by managers, goal setting can improve performance. However, neither goal setting nor
other technique can be used to correct every problem. (Robbins and Judge, 2010)

Generally Goal setting theory suggests that goal setting processes with the following
characteristics can increase motivation:
 Goal are challenging but realizable
 Goal are specific
 They are seen as fair and reasonable
 Individuals, participate fully in goal setting

2.1.3. Motivational Factors

Employees are the most important assets of an organization especially in service industry like
banks. The organizations with more motivated employees tend to be more effective than
organizations with fewer motivated employees. There is no definite way to motivate employees
equally; some motivational factors may be sound for a given situation and employees than
others. Many motivational factors are there in order to motivate employees in the work place and
can be used to encourage job satisfaction and lead them to employee performance, for the
purpose of this study the following motivation factors are selected from Herzberg’s Two Factors
Theories:
 2.1.3.1. Salary and Benefits
Salaries do play a significant role in determining of motivation which has effect on job
satisfaction. Pay is an instrument in fulfilling so many needs. Money facilities food, shelter, and
clothing and provides the means to enjoy valued leisure interest outside of work. Employee
salary must ensure him the social status and should be able to fulfill the expectations. According
to Herzberg theory, in order to prevent dissatisfaction, management needs to continue to observe
competitors salaries and keep their staff’s salaries in line with at least competitors. Managers
should understand what motivate their employees and should develop and handle proper
motivational factors as organizational level.

Benefits include both monetary and non-monetary reimbursements to the employees. Armstrong
(2009) defines benefits as indirect pay and includes such as pensions, sick pay, various types of
loans, insurance, company cars and annual vacation.

2.1.3.2. Promotion
Promotional opportunities have a reasonable effect on job satisfaction by getting motivation in
the work place. It involves a competitive selection process, and results in the employee’s
movement in to a different role in a superior pay band. If it is done reasonably or fairly it
enhance employee motivation and competitiveness. Promotion contributes significantly to the
satisfaction or dissatisfaction of employees.

2.1.3.3. Recognition
Employee recognition may have many different ways-through saying thank you, giving praise,
providing opportunities, or showing respect. Recognition schemes assist appreciation to be
shown to individuals for their achievements either informally on a day-to-day basis or through
formal recognition arrangements. They can take place quietly between managers and individuals
(Armstrong, 2009). Recognition of work is the strength of mind for securing good work. It is
one of the most powerful motivators to get job satisfaction and receive employee performance in
the work place.
 2.1.3.4. Work content
The content of the work itself plays a very major role in determining how satisfied employees are
with their jobs. The content of the work should be encouraging and exciting and have variety in
built in it so that it is not unexciting. Positive feedback from the job and autonomy has been
considered to be important for motivation of employees (Kondalkar, 2007). He also adds that too
tough or job having two little challenge brings frustration and feeling of failure hence the job
should be moderately tough so that the individual has to stretch his ability, imagination and
skills. In general, job with a moderate amount of variety produce the most job satisfaction than
others.

2.1.3.5. Working Condition

Work environment may include health and safety in the physical work environment the physical
layout of the work place and employee’s emotional or psychological experience of the work
place. The latter includes employee involvement in decision making, extent of and promotion of
and respect for diversity, encouragement of a balance between life and work, as well as
organizational culture. The employees desire good working condition because they direct them
to greater physical comfort. The working conditions are important to employees because that can
influence life outside of work, because if people are required to work for long hours or over time,
they will have very little felt for their families, friends and recreation outside work (Kondalkar,
2007).
2.2. Empirical Review
There are numerous studies conducted on issues related to employee motivation, job satisfaction
and also performance both employee and also organizational performance. Something that
motivates or satisfy one person may not motivate or satisfy the other.

The research made on the impact of employee motivation on organizational performance; these
were conducted by two researchers Nadema & Majed, (2015). The study was made on Hayat
University at Iraq aimed on analyzing the drivers of employee motivation to high levels of
organization performance. In the research the impact of employee motivation on organizational
performance are explained or researched by five independent and one dependent variable. The
independent variables are empowerment, job enrichment, leadership, promotional opportunities
and reward factors and the dependent one is organizational performance. As a result the
researchers concluded that when these motivation factors are not obtained, employees have a
tendency to express their dissatisfaction through poor performance and non-commitment to their
actions.

Boamah Richard (2014) conducted a study on the effect of motivation on employees’

performance in education directorate examined the effect of motivation on employees to identify
factors that motivate employees; to determine the employees’ performance and to assess the
effect of motivation on the employees’ performance. The study has exposed that promotion and
opportunity for advancement are the main motivation factors and the study has also naked that
motivation level is low in the area of wages and salaries. It was recommended that Ghana
Education Service should consider as a matter of necessity, the need to make upward adjustment
in wages and salaries which will go a long way to reduce the high incidence of labor turnover.

Patcharak (2002) has also conducted a study on employees of Saint Paul hotel. The title of the
study was assessment of motivation. The motivating variables such as salary, job security,
flexible hour, advancement, work environment and benefit were used to execute the study. The
result indicated that these factors had significance and positive relationship with work
motivation. Especially salary and work content had strong relationship with work motivation.
A study by Elshaday (2016), pointed out that Hafiza, Shah, Humera Jamsheed (2011) indicate
there is significant and positive relationship between extrinsic rewards and employee motivation
but organizations are not offering right amount of financial rewards (extrinsic rewards) to their
employees. Pay is a significant factor which affects employee motivation.

A study by Ali and Mohammed (2012) pointed out that there is positive impact of financial
rewards on employee’s motivation and satisfaction and Ovidiu-Iliuta (2013) conduct a study on
relation of employee motivation and organizational performance. Both researchers are
researched on motivation but the first related to satisfaction and the second related to
organizational performance. Ali and Mohammed revealed that, financial rewards lead to
employee’s motivation. It is also discovered that new entrants in to an industry are highly
motivated and the working conditions, environment and superior’s behavior plays a vital role in
determination of their satisfaction level. On the other hand Ovidiu-Iliuta (2013) shows that
employee participation and empowerment do not only enhance efficiency, growth, and
innovation but they also increase employee motivation and trust in the organization. If employee
feel respected for their work and are involved in decision making, their enhanced enthusiasm and
motivation will lead to a better productivity and loyalty.

Kahn (2010) researched on the influence on payment, recognition, promotion on employee work
motivation. The final result shows that there is strong relationship between reward and employee
motivation. This study has greatly contributed in revealing the fact that different tactics and
policies would have different motivational impact on varied people.
2.3. Conceptual Framework
In this research paper; five motivational factors that have effect on Job Satisfaction is used to
assess the motivational factors in the case of Commercial Bank of Ethiopia. These motivational
factors are adopted from Herzberg’s two factor theories, namely Salary and Benefits, Promotion,
Recognition, Work Content and Working Condition.

The following figure is the research map which shows the expected relationships among the
variables, for this study purpose Motivation is takes as Independent Variable; Job Satisfaction
takes as Mediating Variable and Employee Performance also takes as Dependent Variable.

Figure 2:5 Conceptual Frameworks

Employee Performance
Motivation

Job Satisfaction

Source: www.mediation variable and modified by the researcher (2020)

According to the above figure we can see the effect of motivational factors on job satisfaction
and this job satisfaction will have a direct effect on employee performances. Those motivational
factors have a significant relationship with job satisfaction.
 CHAPTER THREE
Research Design and Methodology

3.1) Research Approach

Research approach is the general framework for the study that links, knowledge claims,
strategies of enquiry and specific methods. The research approach implicitly reflects the
researcher attitude as to how knowledge is constructed and also commands what method will be
employed in the study (Creswell, 2009). There has been widespread debate in recent years
within many of the social sciences regarding the relative merits of quantitative and qualitative
strategies for research. The positions taken by individual researchers vary considerably, from
those who see the two strategies as entirely separate and based on alternative views of the world,
to those who are happy to mix these strategies within their research projects (Hughes, 1997).

There are three basic types of research approaches, quantitative, qualitative, and mixed approach.
Quantitative research consists of those studies in which the data concerned can be analyses in
terms of numbers and its main characteristic is its objectivity. Research can also be qualitative,
that is, it can describe events, persons and so forth scientifically without the use of numerical
data and its main characteristic is; it is attitudinal. Quantitative research is more directly on its
original plans and its results are more readily analyzed and interpreted. Qualitative research is
more open and responsive to its subject. These approaches are different in terms of their
philosophical assumptions as well as techniques used in data collection, analysis and
interpretation (Creswell, 2009). Both types of research are valid and useful. They are not
mutually exclusive. It is possible for a single investigation to use both methods (Mixed
approach).

The selection of one over the other approach to conduct of the study is based on the research
problem or issue or concern that needs to be addressed, the researcher’s own personal experience
and with the support of the audiences (Creswell, 2009). In collecting and analyzing data as will
be discussed in the following section the core argument for a mixed methods approach is that the
combination of both forms of data provides a better understanding of a research problem than
either quantitative or qualitative data by itself. When deciding the approach to be taken to the
research, a further consideration to the purposes and research questions is given, bearing in mind
that the way questions are asked influences what needs to be done to answer them.

To sum up, In order to achieve the objective of this study and answer the research questions, the
researcher is used both qualitative and quantitative approach (mixed approach) and try to assess
the effect of motivation on job satisfaction which leads to employee performance by taking
Commercial Bank of Ethiopia as a case study.

3.2) Research Design

The function of a research design is to ensure that the evidence obtained enables us to answer the
initial question as unambiguously as possible (David de Vaus, 2001). The purpose of this study
is to assess the effect of motivation on job satisfaction which leads to employee performance
within Commercial Bank of Ethiopia. In order to satisfy this purpose, the researcher is applied
descriptive and multiple regression research design using the fact that a descriptive research
design helps us to understand and summarize the data and also regression analysis help us to
analyze mediator variable. Descriptive research design is used to collect numerical data from
large population. In addition to this by using descriptive research method it is easy to use various
forms of data as well as incorporating human experience which enabled the researcher to look
the study in so many various aspects and can provide bigger overview about the subject matter
(Creswell, 2007).

3.3) Research Population

The study area for this research is sixteen branches from the two districts of Commercial Bank of
Ethiopia. These selected branches are all found in the capital city, Addis Ababa. These 16 bank
branches are selected due to time constraint face by the researcher to cover the whole population.
It is difficult to involve the whole population in a research study because it consumes time,
resource and so on. So, selecting a representative sample out of the population is important. The
sixteen bank branch consists of 536 employees and it is considered as a research population. The
representatives also selected out of this population.
3.4) Sampling and Sampling Techniques
According to (Sekaran, 2003) sampling is “the process of selecting a sufficient number of
elements from the population, so that a study of the sample and an understanding of its properties
or characteristics would make it possible for us to generalize such properties or characteristics to
the population elements.” Sampling essentially involves a system of selecting a population
representation from the general population depending on the objective of the study, availability
of money, time, and effort in gathering research data (David, 2005). Or Sampling is the process
of choosing smaller and more manageable number of study units from a defined study
population. Based on this definition, we may define sampling as a way of identifying, selecting,
and gathering data from the individuals that will represent population in order to attain the
purpose of research with the proper utilization of money, time, and effort. Commercial Bank of
Ethiopia is the biggest organization to the country which was established in 1942. Since its
establishment it has made a lot of developments and currently it has more than 1456 branches
stretched across the country. The samples are drawn from the total collection of all members or
population about which this study wishes to draw conclusions.

Sample size determination is the act of choosing the number of observations or replicates to
include in a statistical sample. The sample size is an important features of an empirical study in
which the goal is to make inferences about population from sample (Barlett, 2001). In choosing
the research participants, a stratified simple random sampling technique is applied that enabled
the researcher to answer the research questions and to meet the research objectives. Since each
stratum is more homogeneous than the total population, we are able to get more precise estimates
for each stratum and by estimating more accurately each of the component parts, we get a better
estimate of the whole (Kothari, 2004).

In short, a stratified sampling result is more reliable and exhaustive information. Under this
method, the researcher categorized the staff of Commercial Bank of Ethiopia according to their
already obtainable branches, then to select the appropriate sample under each stratum simple
random sampling is used. Random sampling is a process of selecting sample cases of subset of
sample cases from a population giving all the sampling units equal chances of being included as
a sample (David, 2005). In distributing the questionnaires; sixteen branches which are located in
Addis Ababa city under the two districts namely, south and west districts is consider.

Sample Size Determination

Cochran’s sample size formula for categorical population is used.

N0 =z^2*(p) (1-p)/e^2, n1= n0/

(1+n0/population) Where, n0 = Sample error size,
Z= standard normal distribution which is 1.96 (a confident interval of 95% sample estimates,)
P= sample proportion of successes (0.5), thus the variance of P* (1-P) gives the maximum
possible sample size = 0.25,
e= Acceptable margin of error for proportion being estimated which is 0.05 % (error the
researcher is willing to accept)

N0 =z^2*(p) (1-p)/e^2
N0= (1.96)2*(0.5) (1-0.5)/0.05^2
N0= 384
Therefore; for a population of 536, the required sample size is calculated as follows:
n1 = n0/ (1+no / population)
n1= 384/ (1+384/536)
n1 = 224

Proportionate Sampling: - Sizes based on their proportion in the population

In this study paper, since each CBE branch varies in its number of employees, the number of
subjects taken from each is proportionate to the size of the branch. By considering the sample
size obtained from the above formula, the proportion or the strata sample size is determined for
each branch based on the following equation:
nh=(Nh/N)*n
Where,
nh - is the sample size for stratum h;
Nh - the population size for stratum h;
N -is the total population size;
n -is the total sample size.

Table 3.1 List of Sample Branches

No. Branch Names Number of Employees Sample Size
1. Gara bolo 34 14
2. Jemo Kutir Hulet 13 5
3. Furi Adebabay 15 6
4. Tewekel 11 5
5. Mexsico 48 20
6. Gofa Sefer 68 28
7. Hiwot Amba 26 11
8. Jemu 49 20
9. Alemgena 36 15
10. Sebeta 66 28
11. Kenteri 20 8
12. Wolete 28 12
13. Mekannisa 37 16
14. Lebu Varnero 22 9
15. Ertu 30 13
16. Lebu 33 14
Total 536 224

3.5) Source and Method of data collection

3.5.1 Source of data collection
To address the research objectives in the research process both primary and secondary source of
data was utilized as per their necessity. To organize the primary data, the researcher used adapted
close and open ended questioners. Whereas, secondary data is obtained by investigation of
related document in order to understand the subject matter, different published and unpublished
documents will review by the researcher i.e. website, annual and quarterly report of the bank ,
magazines, broachers, Medias and other documents that are related to the topic and other
material found in the library.

3.5.2 Method of Data collection

Data collection is the process of gathering and measuring information on targeted variables in a
recognized systematic fashion, which then enables one to answer relevant questions and evaluate
outcomes. The goal for all data collection is to capture quality evidence that then translates to
rich data analysis and allow the building of a convincing and credible answer to questions that
have been posed. To address the research objectives the main data collection method that is
employ in this study is mainly focus on the primary source of data that is questionnaires, both
open and close ended questionnaires was deploy as data collection method of the study. The
questionnaire method as instrument of data collection is used because it provides wider coverage
to the sample and also facilitates collection of a large amount of data. The questionnaire contains
close and open ended questions and it will administer by the researcher. In addition, a related
survey document, magazines, annual reports, broachers, Medias and other documents undertaken
at different time in different process of the bank also review and used as a source document.
Basically, the data will collect by using questionnaires for 16 (sixteen) branch employees. A five
point Liker scale that has five different levels of conformity; strongly agree, agree, neutral,
disagree, and strongly disagree is used to tackle the main questions regarding the effect of
motivational factors on job satisfaction which leads to employee performance within CBE and
other questionnaires also questioned to know respondents background and opinion on different
research related issues.

3.6) Data Analysis Method

Analysis of data is a process of inspecting, cleaning, transforming, and modeling data with the
goal of discovering useful information, suggesting conclusions, and supporting decision making.
The data collect from close ended questionnaires will analyze with descriptive statistics and also
regression analyzing using Statistical Package for Social Science (SPSS version 25).
Frequencies, arithmetic mean, standard deviation, Pearson correlation, percentage, ANOVA
result, stand. Error, beta and other is computed to generate the required result and at last the
mediation result also interpreted and also the data gained from open ended questions, and
document review will be analyzed contextually as per the research basic questions.

3.7) Validity and Reliability

3.7.1. Validity
To make sure the research is valid; the study is used reliable sources such as published books and
recent articles written by highly praised authors in the motivation field. Several measures are
employed to ensure that the results are free from material errors starting from the design of the
questionnaire to interpretation of the results. The questionnaire will present in a suitable manner
by making minor modification to be applicable on the current scenario. The questionnaire is
forwarded to my advisor and as soon as appraisal is gathered, the survey questionnaire is
distributed to stated sample population.

3.7.2. Reliability
Reliability of the primary data is very important because the study mainly depend upon the
respondent’s opinion. Research instruments are structured using easy and clear language to
ensure respondents have a clear understanding of what each questions are meant to ask and
sequence of questions are requested to increase the probability of consistent respond.

3.8) Ethical Considerations

Respondents who are involved in the study entitle the right of privacy and dignity of treatment.
Respondents were informed about the purpose of the study and their privacy and dignity also
maintained and also respondents were not required to mentions their name and identification
number in the questionnaire. Willingness of the participants in the data gathering process was a
prerequisite for the study. Information obtained from respondents is handled confidentially. And
also confidential information of the bank is disclosed and the collected data is used for the
purposes of this study only.
 CHAPTER – FOUR
DATA PRESENTATION, ANALYSIS AND
INTERPRETATION
Under this chapter the data that was gathered from open and close ended questionnaire that was
distributed to the sixteen bank branches of CBE is analyzed and interpreted.
4.1. Response Rate
As explained in the methodology part of this thesis, for 536 population 224 sample size was
taken and questionnaire was distributed accordingly. However, out of the total sample size only
178 responses were collected making the response rate 79% which is acceptable to make this
study accurate and generalize.
4.2. Respondents Profile
Presentation of respondents profile gives readers a chance to analyze the background information
of respondents. It also helps person who reads this paper to assess mix in terms of age and sex,
respondents.

Table 4.1: Frequency Distribution of Demographic Variables

Respondents profile
Demographic Category Frequency Percentage
Characteristics
Gender Male 117 65.7%
Female 61 34.3%
18-28 85 47.8 %
Age 29-39 75 42.1 %
40-50 16 9.0 %
Over 50 2 1.1 %
College Diploma 12 6.7 %
Education Status Degree 122 68.5 %
Masters 44 24.7 %
PHD 0 0%
< 2 years 36 20.2 %
 Work Experience in 2-5 years 55 30.9 %
CBE 5-10 years 63 35.4 %
>10 years 24 13.5 %
Managerial Position 34 19.1 %
Current Position Banking Business 81 45.5 %
Officer
Senior Banking 35 19.7 %
Business Officer
Others 28 15.7 %
Source: Researcher’s Survey, 2020

The above table 4.1 indicates respondent’s profile that properly filled and returned the
questionnaire. As depicted on the table the distribution of respondents based on gender is 61
(34.3%) of the total respondents are females working in the bank. The percentage of male
respondents constitutes the largest part 117 (65.7%) of the total sample. Indeed, the number of
female respondents’ participated in the study is almost proportional, given the total number of
female employees in commercial bank of Ethiopia.

The distribution of respondents based age category revealed that majority (47.8%) of the
respondents fall within the age range of 18-28 years. The remaining respondents, 42.1%, 9.0% &
1.1% fall with the age of 29-39, 40-50 & >50 years respectively. This indicates that the bank
consists young generation that have a capacity of doing things effectively.

Respondents profile regarding their educational status revealed that majority (68.5%) of
respondents are BA degree holders and the remaining (24.7%) & (6.7%) are Post graduates and
diploma holders respectively, no PHD holder respondents are found. From this, one can easily
understand that the people taken as subjects of the study are capable of understanding and answering
the questions provided to them.

Distribution of respondents with regard to years of service in the bank shown us that majority of
the respondents (35.4%) are served the bank for 5-10 years and the remaining 30.9%, 20.2%, &
13.5% have a service year of 2-5 years, < 2 years & >=10 years respectively.
Table 4.1 also represents the distribution of current job position of respondents that ranges from
Managerial position to others. (45.5%) which is the majority of the respondents are BBO (Banking
Business Officer). The second highest percentage is 19.7% representing the SBBO (Senior Banking
Business Officer). The remaining 19.1% and 15.7% of the respondents are Managerial position and
others respectively.

4.3. Descriptive Analysis of Employee Responses

In order to grasp the general perception of respondents on the issue of motivational factors, the
researcher has included the measures stated the frequency, percentage, mean, and standard
deviation for each response which is again analyzed and interpreted.
4.3.1. Salary and Benefits
Table 4.2: Employees Response on Salary and Benefits

Particular Level of Freque Percent Mean Std

Agreem ncy age Deviat
ent ion
Strongly 31 17.4%
Agree
Agree 77 43.3%
I feel am being paid a fair amount for
the work I do Neutral 29 16.3%
2.4888 1.1059
Disagree 34 19.1%
Strongly 7 3.9%
Disagree
Total 178 100%
Strongly 31 17.4%
Agree
Agree 58 32.6%
I earn the same salary and benefits
with others doing the same job in the Neutral 39 21.9%
2.6798 1.1950
bank Disagree 37 20.8%
Strongly 13 7.3%
Disagree
Total 178 100%
 Strongly 27 15.2%
Agree
Agree 41 23.0%
Neutral 66 37.1%
I feel that the existing salary and 2.81 1.158
benefit motivates me to perform well Disagree 27 15.2%
9.6%
Strongly 17
Disagree
Total 178 100%
Strongly 21 11.8%
Salary and benefit increments are Agree
made based on the performance Agree 26 14.6%
results of employees
Neutral 31 17.4%
3.4326 1.3270
Disagree 55 30.9%
Strongly 45 25.3%
Disagree
Total 178 100%
31.5%
Strongly 56
Agree
Agree 49 27.5%
Performance related incentives 16.3%
improve my work motivation Neutral 29
2.4494 1.3447
Disagree 25 14.0%
10.7%
Strongly 19
Disagree
Total 178 100%
Source: Researcher’s Survey, 2020

As shown on table 4.4, the respondents are asked to give answers to five questions related to
salary and benefit practice of the bank. The first question being employees perception of fair
payment for the amount of work they do; 43.3% of the respondents agree that they are paid a fair
amount for the works they do adding to that, 17.4% of the respondents strongly agree to the idea
of fair payment. 16.3% of the respondents are neutral and 19.1% and 3.9% of the respondents
disagree and strongly disagree with the statement of being paid a fair amount for the work done.
The mean (2.49) and SD (1.11) show that more than half of the respondents agree that they are
being paid a fair amount for the work they perform this is because of recently adjustment is made
related to salary and benefit in the bank after few year request.

Respondents were asked to rate their agreement/ disagreement on the subject of earning the same
salary and benefit with others doing the same job in the bank. 32.6% of the respondents agree
that they are being paid the same salary with others doing the same job in the bank and 17.4%
also strongly agree to the statement. 21.9% are neutral and 20.8% and 7.3% of the respondents
disagree and strongly disagree on being paid the same salary and benefit with others doing the
same job within the bank. The mean and SD with a respective score of 2.68 and 1.19 conform
that employees agreement as to being paid the same salary to others doing the same job within
the bank. Employees expect fairness and equity when being rewarded to behave in a certain way
that is parallel to organizational goals. Employees should have the perception of being paid the
same salary as to those doing the same job, if not employees may reduce their effort to perform
their job due to their unsatisfied need.

Respondents are questioned to rate their perception if the existing salary and benefit motivates
them to perform well. 37.1% respondent are neutral and 23.0% and 15.2% of the respondent
agree and strongly agree respectively as to being motivated by the existing salary and benefit.
15.2% of the respondents disagree to being motivated and 9.6% strongly disagreed to it. The
mean (2.81) and SD (1.158) shows that the majority of the respondents believe that the existing
salary and benefit are motivated to perform well in the bank.

In order to know their perception about the salary and benefit increment basis of the bank, the
respondents were asked if they agree that salary and benefit increments are made based on the
performance results of employees. The majority of the respondent which is 30.9% of the
respondents was disagreed to the statement and 25.3% strongly disagreed. And only 11.8% and
14.6% of the respondents agree and strongly agree to the statement. The remaining 17.4% are
neutral. The mean and SD for this question shows 3.43 and 1.33 value respectively showing that
employees disagreement to the statement. If organization’s salary and benefit increments are not
based on the performance of employees, employees won’t be motivated to expert more effort to
their work because a reward is not going to follow and according to expectancy theory
individuals make choices based on their perceived expectancy that certain rewards will follow. In
addition, in the open ended questioners part employees were asked the challenges they faced as a
result of motivational implementation in the bank and many respondents raise the issue of
performance relate benefit and respondents said that the banks benefit are not given based on
employee performance rather it is based on branch performance but in the branch every
employees may have different performance but equally benefited this is one of the main
challenge faced by respondents.

The respondents were asked if performance related incentive motivates them to improve their
work. 31.5% of the respondents strongly agree that performance related incentive will motivate
them and adding to that 27.5% of the respondents agrees to the statement and only 14.0% and
10.7% of them disagree and strongly disagree. The majority of the respondents which is evident
by the mean 2.45 and SD 1.34 stated that performance related incentives motivate them. Even if
the bank makes adjustment in its salary and benefit and the respondent were answer being paid a
fair salary there is problem related to motivation as one can see easily from the table above
because of the salary and benefit the bank give is not based on employee performance.

4.3.2. Promotion
Table 4.3 Employees Response on Promotion
Particular Level of Freque Percent Mean Std
Agreem ncy age Deviat
ent ion
There are opportunities to advance a Strongly 29 16.3%
better position
Agree
Agree 60 33.7% 2.7809 1.2677
Neutral 29 16.3%
Disagree 41 23.0%
Strongly 19 10.7%
Disagree
Total 178 100%
Everyone has an equal chance to be Strongly 21 11.8%
promoted
Agree
Agree 38 21.3%
Neutral 39 21.9% 3.1798 1.2850
Disagree 48 27.0%
Strongly 32 18.0%
Disagree
Total 178 100%
Promotions are performance related
Strongly
Agree 19 10.7%
Agree 39 21.9%
Neutral 33 18.5%
3.1854 1.2233
Disagree 64 36.0%
Strongly
Disagree 23 12.9%
Total 178 100%
There are good promotion Strongly
opportunities for employee’s within
the bank Agree 27 15.2%
Agree 27 15.2%
Neutral 43 24.1%
3.1404 1.2745
Disagree 56 31.5%
Strongly
Disagree 25 14.0%
Total 178 100%
The organization’s promotion policy is
Strongly
clearly communicated to all employees
Agree 23 12.9%
Agree 25 14.0%
Neutral 41 23.0%
Disagree 54 30.3% 3.2978 1.291
Strongly
Disagree 35 19.7%
 Total 178 100%
Promotion is very important to
Strongly
improve my work motivation
Agree 78 43.8%
Agree 47 26.4%
Neutral 27 15.2%
2.0674 1.2194
Disagree 15 8.4%
Strongly
Disagree 11 6.2%
Total 178 100%
Source: Researcher’s Survey, 2020

With the aim of understanding CBE employee’s perception on promotion a series of six
questions were asked and the result is presented for each items.
When asked whether they believe that there are opportunities to advance to a better position
within the bank, the majority 33.7% and 16.3% of the respondents agree and strongly agree to
the statement. 23.0% and 10.7% of the respondents disagree and strongly disagree that there are
opportunities to advance to a better position while the rest 16.3% of the respondents are neutral.
The mean and SD with a score of 2.78 and 1.27 respectively showing that a greater number of
respondents believe that there are opportunities to advance to a better position within the bank.

The second question is asking if everyone has an equal chance to be promoted. 27% of the
respondents disagree to the statement and adding to that 18% strongly disagree to the statement.
21.3% of the respondents agree to the statement and adding to that 11.8 % of the respondents
strongly agree. The majority of the respondents which is evident from the mean 3.18 indicate
that not everyone has an equal chance to be promoted. If fairness is not perceived in the
promotion process, it will lead to workplace de motivation. Employees’ expect fairness when
being rewarded, if not it may lead to a negative workplace attitude directly affecting employee
performance and job satisfaction and also the productivity of the organization as a whole.

The third question is asking employees their perception of performance being the basis of
promotions in the bank. 36% of the respondents don’t agree that performance is the basis for
promotion and 12.9% are strongly disagreeing. 21.9% and 10.7% believe that performance is the
basis of promotion and the remaining 18.5% are neutral. The mean score and SD shows 3.18 and
1.22 respectively showing that the majority of the respondents have a perception that promotions
are not given with the basis of performance implying that promotional practice of the
organization is not performance related.

31.5% of the respondents disagree that there are good promotion opportunities within the bank
and 14% strongly disagree to the statement. 15.2% of the respondents were agreed and strongly
agree to the statement. The remaining 24.1% of the respondents are neutral. The mean 3.14 and
SD 1.27 also indicates that more than half of the respondents don’t have a positive perception on
the career advancement opportunities within the bank. Employees perform well when they have
the perception that a reward will follow, if this expectation is not met employees may not exert
their full potential to get expected employee performance for the work they perform and may
lead higher number of unmotivated employees within the bank. Even if the opportunity is there
in the bank if there is no good promotion opportunities job satisfaction will affect which lead to
low employee performance. In addition if there is no good promotion opportunities to advance to
a better position, employees may lose their motivation to put more effort in their job. Employees
need to perceive that their efforts for the contribution to the productivity of the organization will
help them in-turn forward a reward of one form.

For the statement ‘The organization’s promotion policy is clearly communicated to all
employees’ 30.3% were disagree and adding to that 19.7% of the respondents strongly disagree.
Only 14% and 12.9% agree and strongly agree to the statement. The mean and SD score show
the value of 3.29 and 1.29 respectively signifying that a greater majority of the respondents don’t
believe that the organization’s promotion policy is clearly communicated to all employees
showing that the organization doesn’t have a clear communication policy with in the bank.
Communication of the promotion policy of an organization plays a significant role in the work
morale and job satisfaction of employees. Employees perform well when they know what will
follow and also when they are satisfied on the job they do. Accordingly if the promotion policy is
not communicated, they wouldn’t know their career advancement procedure which is important
in motivating employees and play a great rule to employee performance.
Last of all, respondents were asked if promotion is very important to improve their work
motivation; 43.8% strongly agree that promotion plays a significant role in improving their work
motivation. The second highest 26.4% agree to the statement showing how promotion is
important in motivating employees to put up their best. Only 8.4% and 6.2% of the respondents
were disagreed and strongly disagree to the statement. The mean 2.06 and SD 1.22 is the score
showing that employees of CBE are highly motivated and satisfied through promotion. The
respondents indicated that promotion is important to improve motivation which have direct effect
on their job satisfaction and lead to good employee performance. This signifies that promotion is
a high work place motivational factor for employees of CBE.

4.3.3. Recognition
Table 4.4 Employees Response on Recognition
Particular Level of Freque Percent Mean Std
Agreem ncy age Deviat
ent ion
Strongly
Agree 33 18.5%
I receive recognition from my near Agree 23 12.9%
manager for work well done
Neutral 24 13.5%
3.2978 1.4443
Disagree 54 30.3%
Strongly
Disagree 44 24.7%
Total 178 100%
Strongly
Agree 19 10.7%
Agree 27 15.2%
I get credit for the work I done
Neutral 45 25.3%
3.3202 1.2504
Disagree 52 29.2%
Strongly
Disagree 35 19.7%
Total 178 100%
Strongly 41 23.0% 2.6011 1.2682
 Agree
Agree 54 30.3%
The acknowledgment I get for my Neutral 33 18.5%
accomplishment will make me exert
more Disagree 35 19.7%
Strongly
Disagree 15 8.4%
Total 178 100%
Strongly
Agree 33 18.5%
Agree 35 19.7%
I receive feedback on making
progresses Neutral 22 12.4%
3.1461 1.4423
Disagree 49 27.5%
Strongly
Disagree 39 21.9%
Total 178 100%
Strongly
Agree 66 37.1%
Agree 43 24.2%
Recognition is very important to
improve my work motivation Neutral 29 16.3%
2.3371 1.3406
Disagree 23 12.9%
Strongly
Disagree 17 9.6%
Total 178 100%
Source: Researcher’s Survey, 2020

In order to measure the perception toward recognition, respondents were asked to rate whether
they receive recognition from their near manager for work well done and 30.3% of respondents
disagree that they receive recognition from their near manager for work well done while 12.9%
and 18.5% of respondents argue and strongly agree that they do receive recognition from their
near manager and 13.5% of respondents were neutral. 24.7% of respondents strongly disagree
that they get recognition for their work well done. The mean 3.29 and SD 1.44 shows that more
than half of the respondent stated that they don’t receive recognition from their near manager for
work well done.

As presented on table 4.6, 29.2% and 19.7% of the respondents disagree and strongly disagree
respectively that they get credit for the work they do while 15.2% agree that they get credit for
the work they do. Again 25.3% remain neutral. The mean and SD value 3.32 and 1.25
respectively signify that more than half of the respondents disagree that they get credit for the
work they perform.

The third question is asking employees their argument about if acknowledgement they get for
accomplishment will make them exert more. 30.3% and 23.0% of the respondents agree and
strongly agree respectively that the acknowledgement they get for accomplishment will make
them exert more while 19.7% and 8.4% of the respondents disagree and strongly disagree
respectively on the statement, getting acknowledgement for accomplishment will not make them
exert more and the remaining 18.5% of the respondents are neutral. The mean and SD value of
2.60 and 1.26 respectively signify that the majority of the respondents would be motivated if
they get acknowledgement for the accomplishment.

For the statement ‘ I receive feedback on making progress’ 27.5% were disagree and adding to
that 21.9% of the respondents strongly disagree. Only 19.7% and 18.5% agree and strongly agree
to the statement. The mean and SD score show the value of 3.15 and 1.44 respectively signifying
that a greater majority of the respondents don’t receive feedback on making progress. Feedback
plays a significant role in the work morale and job satisfaction of employees in order to enhance
employee’s performance.
Last of all, respondents were asked if recognition is very important to improve their work
motivation; 37.1% strongly agree that recognition plays a significant role in improving their
work motivation and job satisfaction. The second highest 24.2% agree to the statement showing
how recognition is important in motivating employees to put up their best and increase employee
performance. Only 12.9% and 9.6% of the respondents were disagreed and strongly disagree to
the statement. The mean 2.34 and SD 1.34 is the score showing that employees of CBE are
highly motivated and satisfied through recognition. The respondents indicated that recognition is
important to improve motivation which have direct effect on their job satisfaction and lead to
good employee performance.

In general, the recognition practice of the organization is very lacking and needs a crucial
change. More than half of the respondents believe that they don’t receive recognition for the
work they perform from their near manager. There is also a very lacking praise giving practices
in the organization. All the cases presented above indicate that there is a big gap filling
procedure that the case organizations have to do regarding recognition. Whether formal or
informal, recognition programs acknowledge employee contributions immediately after the fact,
usually without predetermined goals or performance levels that the employee is expected to
achieve. It is vital that an organization understands what types of recognition are most
meaningful to its teams and individual employees to get job satisfaction and enhanced employee
performance and have to apply consistently and equitably.

4.3.4. Work Content

Table 4.5 Employees Response on work content
Particular Level of Freque Percent Mean Std
Agreem ncy age Deviat
ent ion
Strongly
I am interested in my work
Agree 27 15.2%
Agree 28 15.7%
Neutral 13 7.3%
Disagree 57 32.0%
Strongly 3.4551 1.4422
Disagree 53 29.8%
Total 178 100%
Strongly
Agree 33 18.5%
Agree 35 19.7% 3.1966 1.4528

My job has variety Neutral 15 8.4%

Disagree 54 30.3%
 Strongly
Disagree 41 23.0%
Total 178 100%
Strongly
Agree 35 19.7%
Agree 65 36.5%
Neutral 18 10.1%
2.76 1.414
I am trained related to my work Disagree 27 15.2%
Strongly
Disagree 33 18.5%
Total 178 100%
Strongly
Agree 33 18.5%
Agree 30 16.9%
I have certain degree of autonomy in
my work Neutral 11 6.2%
3.2640 1.4470
Disagree 65 36.5%
Strongly
Disagree 39 21.9%
Total 178 100%
Strongly
Agree 67 37.6%
Agree 57 32.0%
My work has great value in my branch
Neutral 17 9.6%
Disagree 21 11.8%
Strongly 2.22 1.308
Disagree 16 9.0%
Total 178 100%
Source: Researcher’s Survey, 2020

With the aim of gathering employee’s perception, a series of five questions were included in the
questionnaire distributed with the specific concept of work content. The first question enables us
to understand the level of interest the respondents have in their work. 32.0% and 29.8% of the
respondents disagree and strongly disagree respectively of being interested in their work. 15.7%
and 15.2% of the respondents agree and strongly agree that they are interested in their work
while the remaining 7.3% of the respondents remain neutral. The mean and SD value of 3.45 and
1.44 respectively show that more than half of the respondents are not interested in their work.

On the other hand, respondents were asked the level of variety in their job. The majority of the
respondents 30.3% of the respondents disagree that there is a variety in their job while the
second highest percentage 23.0% strongly disagree to the statement of having variety in their job.
19.7% and 18.5% of the respondent agree and strongly agree respectively as to having variety in
their job while the remaining 8.4% of them are neutral. The mean and SD value of 3.19 and 1.45
respectively show that employees don’t have variety in the work they perform.

The majority of the respondents 36.5% of the respondents agree that they are trained related to
the work they perform and 19.7% of the respondents strongly agree to the statement. While
10.1% of the respondents are neutral, 15.2% and 18.5% of the respondents disagree and strongly
disagree respectively for the statement of being trained related to their work. The mean and SD
value of 2.76 and 1.41 respectively show that the organization trains its employees for the work
they perform.

In order to know the level of autonomy in the respondents work, the question of work autonomy
was raised. The majority of the respondents 36.5% of the respondents disagree that they have
certain degree of autonomy in their work. Adding to that percentage, 21.9% of the respondents
strongly disagree to the statement. 6.2% of them are neutral to the statement and the remaining
16.9% and 18.5% of the respondents fall in to the agreeing and strongly agreeing segment of the
answers respectively. The mean and SD value of 3.26 and 1.45 respectively shows that the
organization does not give its employee the benefit of autonomy in their work.

To finish, significance of the respondents to their corresponding branches were assessed. The
majorities percentages are 37.6% and 32.0% measuring for strongly agree and agree respectively
that their work has a great value in their branches. 11.8% don’t think that their work has that
much of significance to their branches while 9.6% remain neutral. The mean and SD value of
2.22 and 1.31 signify that employees of the bank contribute to the overall success of the bank.

Largely, the work content of the case organization needs a great deal of improvement. The
majority in every category except being trained show disagreement to the bank’s procedure. The
majority of the respondents were agreeable only to the training procedure of the case
organization. Employees need to be interested and satisfied in the work they perform in order to
perform well. Lack of autonomy will also induce employee lack of motivation and job
satisfaction to get high employee performance and also employees need to feel a sense of
ownership in the work they perform but as seen in the numbers above, this is not provided by the
bank.

4.3.5. Work Condition

Table 4.6 Employees Response on Work Condition
Particular Level of Freque Percent Mean Std
Agreem ncy age Deviat
ent ion
Strongly
Agree 21 11.8%
I have the necessary equipment and Agree 34 19.1%
supplies to perform my job
Neutral 23 12.9%
3.3427 1.3193
Disagree 63 35.4%
Strongly
Disagree 37 20.8%
Total 178 100%
Strongly
Agree 35 19.7%
Agree 33 18.5%
I have good working relationship with Neutral 13 7.3% 3.2303 1.5062
my near managers Disagree 50 28.1%
Strongly
Disagree 47 26.4%
 Total 178 100%
Strongly
Agree 71 39.9%
Agree 57 32.0%
I have good working relationship with
my colleagues Neutral 15 8.4%
2.1742 1.3140
Disagree 18 10.1%
Strongly
Disagree 17 9.6%
Total 178 100%
Strongly
Agree 49 27.5%
The amount of work expected from me Agree 46 25.8%
is reasonable
Neutral 35 19.7%
2.5449 1.2978
Disagree 33 18.5%
Strongly
Disagree 15 8.4%
Total 178 100%
Strongly
Agree 47 26.4%
Agree 57 32.0%
Neutral 20 11.2%
My working hours are reasonable Disagree 28 15.7%
Strongly
2.6011 1.4035
Disagree 26 14.6%
Total 178 100%
Source: Researcher’s Survey, 2020

As shown in table 4.8; 35.4% of the respondents disagree that the organization offers them the
necessary equipment and supplies to do their job and 19.1% of the respondents agree with the
statement that they have the necessary equipment and supplies to perform their job while 12.9%
of the respondents are neutral. The mean and SD value of 3.34 and 1.32 respectively show that
the organization don’t provide employees with the necessary equipment and supplies to perform
their job.

When looking into working relationships; 28.1% and 26.4% of the respondents disagree and
strongly disagree that they have a good relationship with their near manager, 7.3% of the
respondents are neutral to the issue and 18.5% of the respondents stated that they have a good
relationship with their near manager. The mean and SD value of 3.23 and 1.50 respectively
implies that near managers don’t necessarily have a good relationship with employees for the
most part.

On the other hand, respondents were asked to rate their working relationship with colleagues,
39.9% of respondents believe that they have good relationship with their colleagues and 10.1%
of the respondents disagree to the statement and 8.4% of respondents are neutral. The mean and
SD value of 2.17 and 1.31 indicates that majority of respondents perceive that there is good
relationship among employees of the organization.

In order to check the reasonability of work expected from them, respondents were asked to
express their level of agreement whether the amount of work expected from them is reasonable
accordingly, 27.5% of respondents perceive that the work expected from them is reasonable,
18.5% disagree that it is reasonable and 19.7% of respondents are neutral to the statement. The
remaining 8.4% and 25.8% of the respondents fall in the strongly disagree and agree category of
the answers respectively. The mean and SD value of 2.54 and 1.29 show that the organization
does not over work its employees. The work expected from employees is reasonable.

Similarly, 32.0% of the respondents specified that their working hours are reasonable while
15.7% of the respondents disagree with the statement and the remaining 11.2% of respondents
are neutral. The mean and SD value of 2.6 and 1.4 shows that respondents believe that the
working hours expected from employee are reasonable.

Generally, as the result indicated majority respondents are satisfied particularly with their
working relationship with their colleagues but not so much with their near managers.
Maintaining a strong employer and employee relationship can be the key to the ultimate success
of an organization, the results are advantageous. It is known that if a strong relationship is in
place employees will be more satisfied, productive, more efficient, and more motivated to
perform their work with more effort. The other factors; having reasonable amount of work
expectation from the case organization and having a reasonable working hours show a positive
sign indicating that the respondents have general agreement with that aspect of the working
condition. Having the necessary equipment and supplies to perform their job is another problem
raise by employees.

4.4. Multiple Regression analysis of Employee Responses

In order to grasp the general perception of respondents on the issue of effect of motivation on job
satisfaction which leads to employee performance, the researcher has included the measures
stated the frequency, percentage, mean, standard deviation, Pearson correlation, coefficients beta
and ANOVA result for each response which is again analyzed and interpreted.

Note: 1= Very high, 2= High, 3= To Some extent, 4= Note at all

Table 4.7: Employees Opinion on motivation, job satisfaction and employee performance

Particular Level of Frequency Percentage Mean Std

Agreement Deviation
Motivation: To Very high 71 39.9%
what extent High 67 37.6%
motivation has To some extent 30 16.9% 1.8820 0.8847
effect on your job Not at all 10 5.6%
satisfaction Total 178 100%
Job satisfaction: Very high 93 52.2%
To what extent job High 59 33.1%
satisfaction lead to To some extent 16 9.0% 1.6798 0.8595
employee Not at all 10 5.6%
performance Total 178 100%
Employee Very high 89 50.0%
1.6236 0.7433
performance: To High 73 41.0%
 what extent your To some extent 10 5.6%
performance relate Not at all 6 3.4%
to your satisfaction Total 178 100%
Source: Researcher’s Survey, 2020

With the aim of gathering respondent’s perception, three questions were also included in the
questionnaire distributed with the specific concept of effect of motivation on job satisfaction
which leads to employee performance. Respondents were asked the extent motivation has effect
on job satisfaction of employees. Of the respondents, 39.9% said the effect of motivation on their
job satisfaction is very high, 37.6% replied motivation has high effect on their job satisfaction of
employees and 16.9% of respondents said to some extent and only 5.6% said not at all that
motivation has effect on their job satisfaction. The mean and SD value show 1.88 and 0.88
respectively indicating that many respondents believe that motivation has a great effect on job
satisfaction.

Respondents were also asked to indicate the extent of job satisfaction lead to perform well. Of
the respondents, 52.2% said job satisfaction is very highly lead to employee performance, 33.1%
replied job satisfaction highly lead to employee performance and 9.0% of respondents said to
some extent and only 5.6% said not at all. The mean and SD value show 1.68 and 0.86 respectively
indicating that many respondents believe that job satisfaction very highly lead to employee
performance.

Finally respondents were asked the extent of their performance relate to their satisfaction. Of the
respondents, 50.0% said their performance is very highly related to their satisfaction, 41.0%
replied their performance is highly related to their satisfaction and 5.6% of respondents said to
some extent and only 3.4% said not at all their performance is related to their satisfaction. The
mean and SD value show 1.62 and 0.74 respectively indicating that many respondents believe that
their performance is highly related to their satisfaction.
Table 4.8: Regression analysis ANOVA results

Model Sum of Squares Df Mean Square F Sig.

1 Regression 111.916 2 55.958 368.063 .000b
Residual 26.606 175 .152
Total 138.522 177
Source: Researcher’s Survey, 2020
a. Dependent Variable: Employee performance: extent your performance relate to your
satisfaction
b. Predictors: (Constant), Motivation: extent motivation has effect on job satisfaction, Job
satisfaction: extent job satisfaction lead to employee performance.

The ANOVA output table describes the overall variance accounted for in the model. The F
value (368.06) and the small significance value level (0.000) indicate that the predictor
variables are not contributing equally to the overall employee performance. Moreover, the
significance level (0.000) is less than 0.05. Thus the stated variable motivation and job
satisfaction have an effect on employee performance, as is indicated by the F statistics.

Table 4.9: Correlation matrix of motivation, job satisfaction and employee

performance (n= 178)

Job
Motivation: satisfaction: Employee
extent extent job Performance:
motivation satisfaction extent your
has effect on lead to performance relate
job employee to your
satisfaction performance satisfaction
Motivation: extent Pearson Correlation 1 .894** .869**
motivation has effect on job Sig. (2-tailed) .000 .000
satisfaction N 178 178 178
Job satisfaction: extent job Pearson Correlation .894** 1 .933**
satisfaction lead to employee Sig. (2-tailed) .000 .000
performance N 178 178 178
Employee Performance: Pearson Correlation .869** .933** 1
extent your performance Sig. (2-tailed) .000 .000
relate to your satisfaction N 178 178 178
Source: Researcher’s Survey, 2020
Correlation is significant at the 0.01 level (2-tailed).

The correlation coefficients for each path, that is, the links between each of the variables, is
statistically significant. Note the particularly strong association between job satisfaction and
employee performance. These results indicate that, at the bivariate level, each of the conditions
necessary to test for the possible role of a mediator has been met. In addition, when analyzing
the data of 178 sample respondents yield that, Pearson correlation coefficient of (0.894) which is
significant at the 95 % confidence level. And job satisfaction of employees is positively
correlated (0.894). The correlation implies that motivation has a positive and high effect on job
satisfaction. Pearson correlation coefficient of (0.869) implies that motivation has a positive and
high effect on employee performance. At last, Pearson correlation coefficient of (0.933), which
is significant at the 95 % confidence level. The correlation implies that job satisfaction has a
positive and very high effect on employee performance.

Table 4.10: Coefficient matrix of motivation and job satisfaction

Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) .046 .068 .669 .505
Motivation: extent .868 .033 .894 26.428 .000
motivation has effect on
job satisfaction
Source: Researcher’s Survey, 2020
a. Dependent Variable: Job Satisfaction: extent job satisfaction lead to employee performance
 The raw regression coefficient for the association between motivation (IV) and job
satisfaction (the mediator) is .87 and the standard error for this raw regression coefficient
(labeled ‘Std. Error’) is .033.

Table 4.11: Coefficient matrix of motivation, job satisfaction and employee performance

Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) .219 .046 4.734 .000
Motivation: .144 .050 .171 2.895 .004

extent motivation has

effect on
job satisfaction
Job satisfaction: extent .675 .051 .781 13.223 .000
job satisfaction lead to
employee performance
Source: Researcher’s Survey, 2020
a. Dependent Variable: Employee Performance: extent your performance relate to your
satisfaction
The raw regression coefficient for the association between satisfaction and employee
performance is .67; the standard error for this regression coefficient is .05. These variables have
positive relationship if motivation increases, employee performance will increases at 0.144 rates.
And the two variables are positively correlated with r=0.171. These variables have positive
relationship if satisfaction increases, employee performance will increases at 0.675 rates. And
the two variables are positively correlated with r=0.781. The result on the above Table 4.11 also
shows, job satisfaction and motivation has effect on employee performance are found
significantly related to overall employee performance level and they have no equal contribution
to employee performance level, as is seen in the standardized coefficient column.
The standardized coefficient beta values indicated shown above indicates motivation and job
satisfaction has a unit effect on overall employee performance. For example, from the table
above, a 0.171 motivation has a unit effect on overall employee performance; a change in 0.781
job satisfaction has a unit effect on employee performance. This shows that both motivation and
job satisfaction has effect on employee performance but that of job satisfaction is highly leads to
employee performance.

4.5. Mediation reporting result

Model : 4
Y : employee
X : motivati
M : jobsatis

Sample
Size: 178

**************************************************************************
OUTCOME VARIABLE:
jobsatis

Model Summary
R R-sq MSE F df1 df2 p
.8937 .7987 .1495 698.4486 1.0000 176.0000 .0000

Model
coeff se t p LLCI ULCI
constant .0457 .0683 .6687 .5045 -.0891 .1804
motivati .8683 .0329 26.4282 .0000 .8034 .9331

OUTCOME VARIABLE:
employee

Model Summary
R R-sq MSE F df1 df2 p
.9366 .8772 .0686 625.1701 2.0000 175.0000 .0000

Model
coeff se t p LLCI ULCI
constant .2192 .0463 4.7338 .0000 .1278 .3106
motivati .1436 .0496 2.8952 .0043 .0457 .2415
jobsatis .6751 .0511 13.2229 .0000 .5744 .7759
OUTCOME VARIABLE:
employee

Model Summary
R R-sq MSE F df1 df2 p
.8686 .7546 .1364 541.0575 1.0000 176.0000 .0000

Model
coeff se t p LLCI ULCI
constant .2501 .0652 3.8346 .0002 .1214 .3788
motivati .7298 .0314 23.2606 .0000 .6679 .7917

Indirect effect(s) of X on Y:
Effect BootSE BootLLCI BootULCI
jobsatis .5862 .0640 .4548 .7060

Based on the above output we can analyze the data as below:

Without JS=0.7298
With JS= 0.1436 Employee Performance
Motivation

0.8683
0.6751
Job Satisfaction

0.5862: (0.4548, 0.7060)

Based on the output obtain above motivation to job satisfaction has coefficient of 0.8683, which
express a significant relationship and job satisfaction to employee performance has significant
relationship with 0.6751. The other employee performance to motivation is not significant by
coefficient number 0.1436 and the total effect model is 0.7298, which is significant.
To test mediation, as we can see in the output above on indirect effect table, that is indirect effect
of X on Y or indirect effect of motivation on employee performance is 0.5862. We can check
this by multiplying 0.8683 with 0.6751, M=0.8683*0.6751
M= 0.58618933, which is equal to 0.5862

In order to be significant it has to be between upper and lower limit which is between 0.4548 and
0.7060, so 0.5862 is between this limit. So, job satisfaction is significant and stronger mediator
and also it create transitive relationship between motivation and employee performance this
means motivation is necessary for any employee and it has to come first but if employees are not
satisfied it may not lead to employee performance.

In addition, respondents were asked the major benefits gained for the bank and yourself from
motivation in order to evaluate their understanding level. For this questions respondents raise
different issues and to summarize the major benefit for the bank as per the respondent response
were accountability from its employees, the employee performance increase because employees
did as per the target, employees try to increase its relationship with its near manager and
colleagues, the bank get efficient work, it help the bank to achieve its mission and vision, quality
of service is increase and because of that the bank will being chosen by customers. The major
benefit for employees as raise by the respondents were job satisfaction, increase work moral,
working in a better way, good social life with their colleagues, better work environment and
team work, moral, increase creativity and quality of work, increase performance.

Respondents also were asked the major challenges you faced as a result of motivation
implementation in the bank. The respondents raise different issues, to summarize the challenge
faced by the respondents in the implementation were knowledge gaps/lack of awareness of near
managers about the important of motivation, implementation of motivation only for short period,
lack of team work of coordination, dissatisfaction on job, boring work environment, lack of
proper flow of direction, carelessness, less employee performance.
 CHAPTER - FIVE
SUMMARY, CONCLUSION, AND
RECOMMENDATIONS
This chapter summarizes the major findings of the data analysis, give conclusion and last make
recommendation based on the data analysis and interpretation provided in chapter four.
5.1. Summary of Major Findings
 Majority of the respondents 60.7% believe that they are being paid a fair amount for the
work they are doing and only 16.3% of the respondents are neutral on the existing salary
and benefit motivates them to perform well.
 56.2% of the respondents don’t agree that the salary increments are made based on the
performance result of employee and only 26.4% of respondent’s agree to the statement.
 59% of the respondents agree that performance related incentives improve work
motivation and only 16.3% of respondents were neutral.
 50% of the respondents believe that there are opportunities to advance to better position
as in a carrier development but 45.5% of the respondents don’t believe that there are good
promotion opportunities for employees within the bank.
 Performance: 48.9% of the respondents disagree to the statement that promotions are
performance related.
 50% of the respondents disagree to the statement that organization’s policy is clearly
communicated to all employees.
 Motivation: 70.2% of the respondents stated that promotion is very important to improve
their work motivation.
 55.1% of the respondents noted that they don’t receive recognition for work well done.
Another 48.9% of the respondents stated that they don’t get credit for the work they do.
 49.4% of the respondents noted that they don’t get feedback on making.
 Motivation: 61.2% of the respondents stated that recognition is very important to improve
their work motivation.
 The majority which is 61.8% of the respondents noted that they are not interested in the
work they are doing. Relating to that, another majority of the respondents 53.4% of the
respondents noted that their work does not involve variety.
 58.4% of the respondents noted that they don’t have any autonomy in their work. 69.7%
of the respondents specified that the work they perform has great value to the branch they
are currently providing their service to.
 56.2% of the respondents identified that all the necessary equipment and supplies to
perform their job is not provided. Another 30.9% of contradicting respondents noted that
the necessary equipment’s and supplies to provide the job is provided.
 Working relationship with near manager: 54.5% of the respondents noted that they don’t
have a good relationship with their near manager but working relationship with their
colleagues: 71.9% is satisfactory and encouraging, this possibly enhance employees
motivation and performance.
 53.4% of the respondents have a perception that the amount of work expected from them
is quite reasonable, adding to that 58.4% of the respondents agreed that their working
hours are reasonable.
 Majority of the respondents 77.5% believe that the extent motivation has effect on job
satisfaction of employees (motivation issue) is high and very high and 16.9% of the
respondents response to some extent and also only 5.6% of the respondent response not at
all to the statement.
 Majority of the respondents 85.4% believe that the extent job satisfaction leads to
employee performance (job satisfaction issue) is high and very high and 9.0% of the
respondent’s response to some extent and also only 5.6% of the respondent response not
at all to the statement.
 Majority of the respondents 91% believe that the extent you performance relate to your
satisfaction (employee performance issue) is high and very high and 5.6% of the
respondent’s response to some extent and also only 3.4% of the respondent response not
at all to the statement.
 In ANOVA out put the F value 368.06 indicate that job satisfaction and motivation have
their own effect on employee performance.
  The correlation result show that the mediator job satisfaction has significant effect on
employee performance by Pearson correlation coefficient of 0.933.
 The raw regression coefficient in standardize coefficient beta value indicates that both
motivation and job satisfaction has effect on employee performance but job satisfaction
has high effect which can highly lead to employee performance.

5.2. Conclusion
Based on the data presented and analyzed in chapter four from the responses of employees
through questionnaire conducted with employees of CBE, the following conclusions are reached.
 Clear and systematic techniques of motivating factors are necessary in order to
strategically motivate employees in a way that increase their satisfaction and lead to high
employee performance.

 Employees of CBE are not pleased with the salary and benefit they are paid and it is not
motivating them to exert more and to being satisfied for the work they perform. The
organization should think about the ways and commit to advance its practices in this
regard.

 Employees of CBE are not satisfied with the current promotional practices of the
organization. They felt some kind of unfairness and injustice in the organization’s
advancement opportunities which might lead to low employee performance because
promotion looks to be a huge motivational factor for the majority of the respondents in a
way to improve performance and increase job satisfaction.

 The recognition practice of the organization show that the culture of giving recognition
from the supervisor’s side for work well done is neglected. The culture of giving
feedback on employees making progress in their work also shows a low number of
agreeableness. Recognition presents to be a high motivator according to the respondents
to increase job satisfaction and lead to employee performance.

 Employees of CBE are not interested in the work they perform. The analysis also shows
that the work they perform does not have variety which is also very important for work
 place motivation in a way to increase job satisfaction and improve performance.
Respondents also said that they have not a degree of autonomy in the work they perform.

 Employees of CBE don’t have a satisfactory working relationship with their near
managers but they have a good relationship with their colleagues.

 The survey revealed that employees are not satisfied and motivated with the current
motivational procedure carried out by the bank which has a direct effect on their
performance. It revealed that they are mostly not satisfied with the promotion and
recognition practice of the bank. The result of this survey gives us the privilege to
conclude that the presented motivational practices of the case organization fail to increase
job satisfaction and lead to employee performance.

 The survey revealed also included that the effect of motivation on job satisfaction and
leads to employee performance is acceptable and motivation and satisfaction issue have
to be considered in order to get high employee performance which have direct effect on
organizational performance of CBE and also it is conformed that the mediation reporting
result of job satisfaction is a significant mediator between motivation and employee
performance.

 In general it can be concluded at least by implication that if employees are dissatisfied

they don’t perform well which may lead to high customer dissatisfaction and complain, if
customers are dissatisfied, they will migrate to other competitive banks, this finally leads
CBE to unmeet objectives.

5.3. Recommendation
The researcher having all the findings the base for recommendations to create job satisfaction
and lead to high employee performance as per the organization desired, so based on the above
motivational factors the case organization’s practice the researcher can advises the following:
 Salary and benefit increment should be based on merit and performance of employees.
The case organization needs to adjust its increments package since majority of the
respondents disagree that the salary and benefit increments are based on performance
results of employees. CBE should interpret its corporate vision into measurable
 operational goals and communicate it to employees and link them to individual employee
performance. Individual employees then would have salary increments based on good
point and their performance.

 The organization should examine, draft, and implement clear and appropriate career
advancement procedures that could be applied regularly. The current career path trend
should be evaluated and redesigned by considering the competencies of employees.
Establishing fair, workable and consistently managed promotion policies and procedures
is the most one.

 Proper and timely recognition should be part of the system to get job satisfaction which
lead to employee performance. The organization should try to incorporate formal and
informal employee recognition programs like by being specific when giving recognition,
being specific helps employees relate the recognition to their behavior, encouraging
continued strong performance and by going beyond a bonus or a raise and considering
personal gifts, tickets to events, or other purchases that show employees their reward is
personalized to them.

 Work content of the organization should be considered to include attributes which will
make employees feel rewarded and satisfied of the job. Bank jobs are known to be
repetitive and the study indicates that their job does not allow them to use their
knowledge and skills since their job lacks variety in nature. The bank can exert
significant amount of effort to generate job variety by instigating job rotation, job
enlargement and job enrichment within the branches.

 All employees are not motivated and also satisfied on the same packages of motivators,
in most cases one employee can satisfy by salary and benefit but the other can be
promotion or other else. So, the organization should craft and implement appropriate
motivational techniques in order to satisfy its employee’s and get high employee
performance. Knowing its employees will allow the case organization know what will
actually motivate and satisfy them and encourage its employees to perform well as the
per the organization expectation.
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Appendix: Questionnaire

Dear Sir/Madam

My name is Ruth Getahun, a student at Addis Ababa University School of Commerce,

department of Human Resource Management general. This questionnaire is designed to collect
primary data for conducting a study on “Assessing the impact of motivation on job satsfaction
and employees performance” in partial fulfillment of MBA in Human Resource Management at
Addis Ababa Universty School of Commerce. In this regard, I kindly request your time to
provide me with reliable information, so that the findings of this study would meet the intended
outcome. I strongly assure you for the confidential treatment of your answers. I would like to
thank your voluntary participation for the success of my research study. Hence, I believe that you
will enlarge your assistance by participating in the study. Your honest and thoughtful response is
invaluable.

Thank you for your participation.

Best regards,

Ruth Getahun Sherefa,

MSc student at Addis Ababa University School of Commerce
Department of Human Resource Management
June, 2020
Part One: Profile of Participants
1. Gender
a) Male

b) Female

2. Age

a) 18-28 c) 40-50

b) 29-39 d) Over 50

3. Education status

a) College Diploma c) Masters

b) Degree d) PHD

4. How long have you been working in the bank?

a) Less than 2 year c) 5-10 years

b) 2-5 years d) 10 years or more

5. What is your current position?

a) Managerial Position

b) Bank Business officer

c) Senior bank business officer

d) Others

6. In your opinion, to what extent motivation has effect on job satisfaction of employees?
a) Very high c) To some extent

b) High d) Not at all

7. In your opinion, to what extent job satisfaction leads to employee performance?

a) Very high c) To some extent
 b) High d) Not at all

8. In your opinion, to what extent your job performance relate to your satisfaction?
a) Very high c) To some extent

b) High d) Not at all

Part Two: Motivational Factors Questions

Note: 1= Strongly Agree, 2= Agree, 3= Neutral, 4= Disagree and 5= Strongly

Disagree

SN List of questions 1 2 3 4 5
1. Salary and Benefits

I feel am being paid a fair amount for the work I do

I earn the same salary and benefits with others doing the
same job in the bank

I feel that the existing salary and benefit motivates me to

perform well

Salary and benefit increments are made based on the

performance results of employees

Performance related incentives improve my work

motivation

2. Promotion

There are opportunities to advance a better position

Everyone has an equal chance to be promoted

Promotions are performance related

There are good promotion opportunities for employee’s

within the bank

The organization’s promotion policy is clearly

communicated to all employees
 Promotion is very important to improve my work
motivation

3. Recognition

I receive recognition from my near manager for work well

done

I get credit for the work I done

The acknowledgment I get for my accomplishment will

make me exert more

I receive feedback on making progresses

Recognition is very important to improve my work

motivation
4. Work Content

I am interested in my work

My job has variety

I am trained related to my work

I have certain degree of autonomy in my work

My work has great value in my branch

5. Working Condition

I have the necessary equipment and supplies to perform my

job
I have good working relationship with my near managers

I have a good working relationship with my colleagues

The amount of work expected from me is reasonable

My working hours are reasonable

6. What are the major benefits gained for the bank and yourself from motivation?

.
7. What are the major challenges you faced as a result of motivation implementation in the
bank?

.
8. Please, write other points that are not addressed in the questionnaire, if any.