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Ruth Getahun
Ruth Getahun
BY
RUTH GETAHUN
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
JUNE, 2020
ADDIS ABABA, ETHIOPIA
2
ADDIS ABABA UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF HUMAN RESOURCE MANAGMENT
BY
RUTH GETAHUN
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.
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
1.10Definition of Terms...............................................................................................9
CHAPTER TWO
REVIEW OF RELATED LITERATURE
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
6
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
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
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.
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.
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).
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
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.
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.
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)
Motivator Factors
Hygiene Factors
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.
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.
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.
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.
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)
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
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.
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.
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.
Employee Performance
Motivation
Job Satisfaction
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
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.
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.
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
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.
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.
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.
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.
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.
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.
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
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.
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.
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
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
Without JS=0.7298
With JS= 0.1436 Employee Performance
Motivation
0.8683
0.6751
Job Satisfaction
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.
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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Dear Sir/Madam
b) Female
2. Age
a) 18-28 c) 40-50
b) 29-39 d) Over 50
3. Education status
b) Degree d) PHD
a) Managerial Position
d) Others
6. In your opinion, to what extent motivation has effect on job satisfaction of employees?
a) Very high c) To some extent
8. In your opinion, to what extent your job performance relate to your satisfaction?
a) Very high c) To some extent
SN List of questions 1 2 3 4 5
1. Salary and Benefits
I earn the same salary and benefits with others doing the
same job in the bank
2. Promotion
3. Recognition
I am interested in my work
5. Working Condition
.
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.