THE IMPACT OF EMPLOYEE MOTIVATION ON

PRODUCTIVITY
(In Case Of Commercial Bank Of
Ethiopia In Chiro Branch)

THE RESEARCH PAPER SUBMITTED IN PARTIAL

FULFILLMENT OF THE REQUIREMENT BA
DEGREE IN MANAGEMENT

PREPARED BY: ARIF JEMAL

ADVISOR: YOHANNES TADESSE (MBA)

JIMMA UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF MANAGEMENT

May, 2011

JIMMA, ETHIOPIA
The main objective of this study is to identify the impact of
employee motivation on productivity in case of commercial bank
of Ethiopia Chiro branch. The relevant data for this study
collected from both primary and secondary sources. To collect
primary data self administered questionnaire used. Where as,
secondary data collected via organizational records and written
materials about the organization. Census used to collect data
from employees because of they were few in numbers. The
collected data effectively processed, Analyzed and presented by
using percentage and tabulating. This study indicated Motivation
has positive impact on the productivity of the organization.

I
II
 Acknowledgement
First and for most I would like to thanks Almightily Allah he has helped
me in every aspect of my life. Next to that I would like to express my
sincere gratitude to my Advisor Ato Yohannes Tadesse for his Advise
and comment in all of my paper.

Finally, I would like to express my deeply heart thanks to those who

had not been mentioned their name but contribute a lot to this
Achievement.

III
 Table of content
Abstract................................................................................................................................I
Acknowledgement..............................................................................................................II
Table of content.................................................................................................................III
List of table.........................................................................................................................V
Chapter One.........................................................................................................................1
1. Introduction..................................................................................................................1
1.1 Background of the study............................................................................................1
1.2. Back ground of the organization................................................................2
1.2 Statement of problem......................................................................................5
3. Objectives of the study..........................................................................................6
3.1 General objective..............................................................................................6
3.2 Specific objective...............................................................................................6
4. Significance of the study.......................................................................................7
5. Scope of the study...................................................................................................8
6. Limitation of the study.......................................................................................8
Chapter two.....................................................................................................................9
2.2 Review of Related Literature.........................................................................9
1.1 Motivation.............................................................................................................9
2.3 Challenges of Motivation..............................................................................10
2.4 Importance of motivation.............................................................................10
2.5 Source of motivation......................................................................................10
2.6 Theories of Motivation...................................................................................11
2.6.1 Maslow theory...........................................................................................11
2.6.2 Alderfers ERG theory.................................................................................12
2.6.3 McClelland’s Theory................................................................................13
2.6.4 Motivation, Performance and Job satisfaction..............................14
2.6.5 Consequence of Job dissociation...........................................................14
Chapter 3....................................................................................................................20
Materials and research methodology..............................................................20
3.1 Study area..........................................................................................................20
3.2 Methods of Data collection..........................................................................20
3.3. Census................................................................................................................20
3.4 Method of data analyzing and interpretation.......................................20
CHAPTER FOUR........................................................................................................21
4. Data analysis and interoperation.................................................................21
4.1. General employees background...............................................................21
4.2. Motivational practice....................................................................................22
4.3. Motivational impact.......................................................................................23
4.4. Need of motivation........................................................................................24

IV
 4.5. Payment system of organization..............................................................24
4.6. Additional reward system...........................................................................25
4.7. Opportunities is for promotion..................................................................25
4.8. Staying in organization................................................................................26
3.10. Punctuality of employees.........................................................................27
CHAPTER FIVE...............................................................................................................29
Conclusion and recommendation.........................................................................29
5.1. Concussion........................................................................................................29
5.2. Recommendation...........................................................................................30
References.....................................................................................................................31
Appendix.........................................................................................................................32

V
 List of table
Table 4. 1. Age, sex, educational level and martial tutus of respondents
.............................................................................................................21
Table 4. 2. Response on motivational practiced organization..............22
Table 4. 3, Response about motivational impact on productively........23
Table 4. 4. Response on need of motivation.........................................24
Table 5. 5. Response about payment system of organization..............24
Table 4. 6. Response about additional reward system..........................25
Table 4. 7. Response about opportunities is for promotion..................25
Table 4. 8. Response on staying in organization...................................26
Table 4. 9. Response on staying in organization...................................26
Table 4.10. Response about punctuality of employees........................27
Table 4. 11. Response about dissatisfaction in the organization..........28

VI
 Chapter One
1. Introduction

1.1 Background of the study

The success of any business depends largely on the motivation of the

employees. Human resource are essential to prosperity, productivity
and performance of any company. Motivation is the key to creating an
environment where the optimal performance is possible.
(staff@incentivequotes.com)
The development and growth of business organization in competitive
business environment is depends on the efficient utilization of
resource. The performance of organization is affected by different
factors such as motivation, working condition, and job security. Taking
this in to account motivating employees helps organization to get
competitive advantage.

No doubt that the survival of an organization largely depends on

effective and efficient management of its resource. Human resource is
one of these that needs to be well managed. It plays a crucial role in
achieving both the long- run and short- run objectives of an
organization. Managing people is not as easy as managing resource.
This is due to the complex nature of human being and as a result in as
single organization different people may have different personalities,
attitudes, beliefs and values.

Managers must use different strategies and skills to wards motivating

employee for the survival and best performance of organization.

1
The rationale provides some of the reasons for doing this study are
there is no good motivational practice in this branch which make
employee unpunctual and absent from their work.

1.2. Back ground of the organization

The agreement that was reached in 1905 between emperor minilik II

and mr, Magillivray, representative of the British owned national bank
of Egypt marked the introduction of modern banking in Ethiopia.

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

The new bank, bank of Ethiopia, was apurely Ethiopian institution and
eas the first indigenous bank in Africa and established by official
decree on August 29,1931 with a capital of Birr 750,000
(http:en,wikipedia,org/wiki/ commercial bank of Ethiopia)

The first indigenous bank which funtions as both as commercial bank

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

Following the incorporation as a share company on December 16,1963

as per percolation No, 207/1997s o October 1963 took over the

2
commercial bank activates of the former state bank of Ethiopia. it
started operation on January 1,1964 with a capital of birr 22 million in
the new commercial bank of Ethiopia, incontrast , with the former state
bank of Ethiopia, all employees where Ethiopians (http://www.teh
history of corporate, com)

Consequently, the present day commercial bank of Ethiopia was

established under proclamation No, 184 of August 1980.

- According to this proclamation the main objectives of the commercial

bank of Ethiopia are as follows:-

1. To extend commercial banking services through out the country

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

Moreover, according to this proclamation, the bank shall have the

responsibility to perform the following duties in accordance with the
general directives issued to it by the supervising authority, namely the
national bank of Ethiopian.

1. Receive saving demand and time deposits

2. Make loans and advances
3. Draw, accept, discount, buy and sell bill of exchange, drafts, and
promissory notes payable within or outside Ethiopia.
4. Issue letter of credit.
5. Buy, sell, hold or other wise deal in foreign exchange,

3
6. Control the end use of credit loans, and other facilities that provides
to its customers.
7. Act as anagent for persons and in this capacity, engage in the sell of
money and shares.
8. Negotiate, under write or issue bond
9. Keeping safes securities, jewelry, precious metal and other valuables
materials.
10. Issue cheques and travelers cheques and generally deal with
cheques.
11. Hold, acquire and sell negotiable instrument and security by the
government or private person.
12. Acquires, poses, mortgage sell, exchange and dispose of property
for the purpose of attaining its objectives and proper functioning its
operations.
13. Performs such other banking activities as are customarily carried
out by commercial bank.

Commercial bank of Ethiopia, chiro branch was started its operations in

February 10,1982. The bank was wholly owned by state and opeated s
an autonomous institution under the commercial code of Ethiopia.

4
1.2 Statement of problem

Employee incentive programs go a long way towards ensuring

employees feel appreciated and worth while. This alone can help with
employees motivation across the board. The great thing about these
program is they are very individualized. Incentive program increase
motivation because they are not only encouraging productivity
performance but also show employees the company cares.

The motivational tools that management generally uses to increase

employees motivation are financial and non financial motivation.
Financial motivation include like rewards, piece rate wages and Tayllow
differential and the non financial motivation also include promotion,
status, responsibility, making job pleasant and interesting and the like.

Motivated employees are happy on behave of the job and strive for
increasing productivity of the business. They also try to develop anew
mechanism of doing a job so as to improve their productivity. In
contract to this, poor motivation leads to eradicate the productivity of
the organization by a means of unpunctual and absenteeism. The
basic question of this research will be
1) Does CBE in chiro branch motivates its employees?
2) What methods does the organization use to motivate its
employees?
3) What type of impact employees motivation impose on
productivity?
4) What are the problems related to motivation in the
organizations?

5
3. Objectives of the study
3.1 General objective
The general objective of this research is to find out the impact of
employees motivation on productivity.

3.2 Specific objective

 To identify what methods used in order to motivate employees of
the organization.
 To identify what type of impact employees motivation impose on
productivity.
 To identify the problem related to motivation in the organization

6
4. Significance of the study
The study was believed to have the importance:-

- It study enables the organization to know their strength and

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

7
5. Scope of the study
The scope of this study limited to the impact of employee motivation
on productivity in case of commercial bank of Ethiopia in chiro branch.
During the study the researcher stayed n commercial bank of Ethiopia
office and collected the necessary data on this topic. In addition, the
study focused on permanent employees because of reaching this
employee is suitable. So, the scope of the study limited only on
commercial bank of Ethiopia in chiro brach.

6. Limitation of the study

While conducting this study the limitation that the researcher faced
were under the following.
- Lack of cooperation and interest of employees in responding to
questionnaire and filling it care fully.
- Lack of up-to date literature that related to the study.

Shortage of time for gathering all necessary data from the

organization.
- Lack of financial resource were the major constraint.

8
 Chapter two
2.2 Review of Related Literature
The employee motivation has major impact on economic performance
of the firm. The firm used different essential resource for its economic
performance. Especially human resource is most and significant and
ingredient part of resource and managers apply a variety of
motivational scheme to give employees highly productive and always
they stand for a common good of firm. This chapter tries to present
the theoretical aspects of motivation.(staff@incentivequotes.com)

1.1 Motivation
There is no standard definition of motivation but there are number of
common agreement. Motivation has to do three broads are as with
respect to individuals behavior. Source (Anderson 1989. PP63).

1) Direction what some one is trying.

2) Persistence has along some one continual trying.
3) Effort how hard some one is trying
According to Bernard bereslon and Gram A. Steiner” motivation is an
energized action at channels behavior reward’s the goals”.
2.2 How to motivate employees
The successful managers has know how to motivate their employees.
Even though every one is motivated by different needs, most people
tell that two of most important issues they look for the company are
mutual respect and personal involvement. There are some ways
motivating employees are
- Be aware of moral level of your organization.
- Involve employees in decision making.
- Out line job responsibilities.

9
2.3 Challenges of Motivation
Motivation in practice and theory are difficult issues conducting on
several disciplines. In spite of research basic as well as applied, the
subject of motivation not clearly understood more often than not
poorly practiced. people in the organization come from different places
with respect to attitudes to wards job peers, subordinates,
organizational rules and procedures. As a result of these mangers or
organization encounter abig problem of having different out look and at
same goals and objective achieved by integrating and coordinating
people. Source ( plunkent, 1997.PP390).

2.4 Importance of motivation

Motivation is important because of its determinants factors on
performance and its intangible character. The performance of
individual’s is determined by
- Motivation ‘the desire to do the job
- Ability; the capability to do the job
- The work environment the goals, material and information.
Motivation process begins with needs as deficiency. Motivated
employees are a tower of the company and they will binges
dramatically change in every activities of their performance and
they are more productive to be effective manager needs to
understand what motivates employees within the context of they
perform.
- Source (Bowen and Radhan kishna, 9191 W.W.W. jo.oxgn).

10
2.5 Source of motivation
1. Positive motivation; involves proper recognition of employees effort
and appreciation of employees contribution towards organizational
goals achievement. Some of these are delegation of Authority and
responsibility to subordinates participation indecision making..
2. Negative motivation; is based up on use of force, power and treats.
The fear of punishment or unfavorable consequence affects the
behavior change
3. Extrinsic motivation; is induced by external factors which are
primarily financial in nature.
4. Intrinsic motivation, it stems from feeling achievement and
accomplishment and is concerned with state of self actualization in
which the satisfaction of accomplishment something worth while
motivates the employees. It’s self generated and independent of
financial rewards like recognition, responsibilities, esteem needs
source (Chandan 1995. PP 57).

2.6 Theories of Motivation

This station present various theories of motivation proposed by
different individuals and section

2.6.1 Maslow theory

Maslow theory is a hierarchy need theory which is popular theories of
motivation and it’s
based on the following facts.
 Man is not always satisfied with it on hand. He is always in need
of something which he does not have.
 Human needs are unlimited, that is if one need is satisfied the
other need will be activate and the process continuous in
definitely. Maslow need hierarchy, source ( Daver, 1994.PP14).
Maslow categorize the need in to the following five.

11
A) The physiological needs; involves a need for basic thing like food,
water, shelter and sex, when this fundamentals needs are not meet
no other higher level needs will act as motivation. on another way,
once primary needs satisfied, safety or security needs are
activities.
B) Safety needs; include protection from physical harm, economic
disaster and futuristic needs in that they represent a desire to
ensure ability to physical need.
C) Social need; is need for belongingness and love that comes in to
paly only when physical and safety need are reasonable secured.
D) Esteem needs; include selfrespect and feeling of competency and
the need for recognition and administration in the eyes of other.
E) Selfactualziation; The process of making actual persons perception
of his/ Her real self. Ararely attained self actualization impulse to
become when one is capable of becomigs of Achieving ones full
potential in the most creative self motivated way source
( Resenabaum, 1982 PP75).

2.6.2 Alderfers ERG theory

The ERG need theory, developed by clayton alderfers is a refinement
of maslow’s need hierarchy, In stead of manioc’s five needs, ERG
Theory condenses these five need in to three needs.
1. Existence needs- these needs are roughly compatibilities to the
physiological and safety needs of maslow’s models are satisfied
primarily by material incentives. These include the need for shelter
physical and safety from threats on people’s existence and well
being.
2. Relatedness needs- these roughly correspond to social and esteem
in maslow’s hierarchy. These needs are satisfied by personal
relation ship and social interaction with others. It involves open

12
 communication and honest exchange of thought and feelings with
other organizational members.
3. Growth needs’. These are needs to develop and grow and reach the
five potential that person is capable of reaching. Their needs are
fulfilled by strong personal involvement in organization
environment and look for new opportunities and challenge. ERG
different from maslows in proposing that may be motivated by
more than one kind of needs at the time. While maslow proposes
that in the hierarchy needs, a person will satisfy the lower level
need before he moves up to the next levels of needs and will say at
the need until it is satisfied. ERG Theory suggests that if the person
is frustrated in satisfying his needs at a given level, he will move
back to the lower level needs. ( Wright patric 1996, PP:364- 366).

2.6.3 McClelland’s Theory

David mccllands theory and his associate John Atkinson proposed
another important Theory of motivation and achievement of
motivation. According to theory organization offers an opportunity to
satisfy of at least three needs ( Davis, 1989 PP:104)

1) The need for achievement (n- Ach)

Achievement motivation is driven some people have to overcome
challenges and obstacles in the pursuit of goals. An individual with
this drive wishes to develop and grow up the ladders of success
characteristics of Achievement oriented. Employees are work harder
when they perceives that they will receive personnel credit for their
efforts when there is only moderate risk of failure and when they
receive specific feed back about past performance.
2) Need for Affiliation
Affiliation motivation is a drive to relate to people on social basic.
Affiliation oriented people work better when they are

13
 complimented for their favorable attitudes and cooperation. They
receive inner satisfaction from being with friends and they want
the job freedom to develop those relation.
3) Need for Power
Power motivation is drive to influence people and change situation.
Power motivated people wish to create an impact on their
organization and are willing to taking risks to do so Once this power
is obtained it may be uses either constructively or destructively.
Power motivated people make excellent managers if their drives are
per instructional power instead of personnel power.

2.6.4 Motivation, Performance and Job satisfaction

It has often been said that a happy employee is a productive and
happy employee must be satisfied with his job, Job. Satisfaction can
be defined as the extent of positive feeling of attitudes that
individuals have towards their job feels, good about it and values his
job highest on other and serious job dissatisfaction results in stress
and tension which is usually the cause of a variety of physiological
disorder ( Chandara 1995. PP:87).

2.6.5 Consequence of Job dissociation

Job dissatisfaction produce low mental among workers and low mental
at workers. Some of the indicators to low morale are:- Employees
unrest, the workers may not attend to his job properly, may be
involved in a day a reaming, be forgetful or just may not care. If this
unrest affect a sufficient numbers of workers, they may take a
collective action such as go slows, worker stoppage sticks and other
allied group actions.
- Absenteeism: job satisfaction is highly related to absenteeism.
Studies have found that less satisfaction employers are more
likely to be absent from work due to “ Avoidable reason”.

14
 Management must be concerned with excessive absenteeism for
it disrupts production and business operation.
- Employee turnover: high turnover distributes normal operation
and continuously replacing the employee who leave is costly and
both technical and economically undesirable. Turn over may be
voluntary which initated by the employee and may be due to Job
dissatisfaction or other personal reason beyond management
control .
- EARLY retirement: These has been that employee who choose
early retirement tend to hold less positive attitudes, challenges
and, work opportunities are less likely to seek requirement than
employees with lower levels jobs.

77 ways to motivate employees

No longer can leader hire workers and expects to get motivated

individuals. Learning how to motivate is now one of the most relevant
and essential skills leaders can possess in to days ever-changing work
place. This guide provides some insight in to human motivation by
offering 77 practical suggestion for motivating works. Today, leader
usually must go beyond the day –to –day operation and “though
decisions”. Leaders in today’s society are expected to be social
scientist, and the great leaders of today and tomorrow are those gifted
individuals who have mastered the art of motivation. The ability to
understand people and to be able to tap in to their respective motives
are the skills that make difference in today’s society.

What separates exceptional leaders from ordinary leaders is the ability

to inspire and motivate employees. In recent studies, researcher at the
university of Nebraske-Lincol examined source of motivation of

15
NebrasKa workers in urban and rural settings. The results have
demonstrated that five unique source of motivation exist:
- Intrinsic process-motivated by fun
- Instrumental-motivated by reword
- Self concept-external motivated by reputation
- Self concept- internal motivated by challenge
- Goal internalization- motivated by cause or purpose
Each of the five sources requires different organizational and
leadership characteristics to tap in to them. Exceptional leaders will
find ways to tap into each source. Those who tap into just one or two
will motivate only a small percentage of their workers and be less
effective.

Motivating workers
This section includes a list of 77 ways to motivate workers by gapping
in to each of the five source of motivation; fun, rewards, reputation,
challenge, and purpose

Fun

Some workers really want to enjoy the work they do. Many who enjoy
activities they participate in at work place look forward to the day each
morning.
There are 10 things leaders can do to make the work place and the
experience of workers more enjoyable for workers:

A, Find out which task are each of your employee’s favoriteis.

B, Find ways to assign more of the tasks they enjoy and fewer of the
once they don not like to do
C, If you are a good joke teller, tell tots of them.
D, If you are not much of a joke taller, buy a jok book.

16
E, Plan societal event for your employees.
F, Make sure that every meeting has some scheduled fun time
H, Always start a meeting with some thing social
G, Do something interesting with the lunch room
I, Create a quote of the week
J, Sponsor a company bar becue.

There are 10 ways to motivate people motivate by rewords:

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

Reputation
Eight ways to motivate persons who are motivated by reputation
A, Give workers a lots of feedback about the way they are performing.
B, Give PRAISE infront of other people
C, Criticze these individuals only in private (never of infront of others)
D, Tell your workers that you appreciate the work they do
E, Tell people they are important both to the business and to you
F, Ask workers if anything interesting happened to them this weekend.
G, Make sure that you give credit to every one that contribute

17
H, Put up pictures and biographies of all your employees in accentual
place

Challenges
Six ways to motivate people motivate by challenges:
- Stay out of their way and let them do the work if they know how
to do it.
- Assign tasks that requires their skills and talents
- Find ways to help them to continually develop their abilities.
- Avoid assigning mundane tasks to those workers.
- Give them a challenge, then get out of their way.
- Give them autonomy to structure and perform their job as they
see best.
Purpose
Nine ways to motivate people high in purpose or goal internalization
are listed below.
- Communicate the purpose of the task being assigned.
- Make sure the company has vision and mission that it is
pursuing.
- Communicate the organization’s vision and purpose and on
adaily basis.
- Refer to the purpose of organization and ”why we exist” when
outline strategies and goals.
- Remind employees of who depends on this organization to
succed.
- Discuss why (interms of contributing to the mission) things need
to occur.
- Remind workers how their efforts make a difference for the
company in its pursuit of it vision
- Make links between their work and the company vision so they
can see how they fit into the bigger pictue.

18
 - Include works in the visioning and strategies planning process
that they feel they have a stake in the organizational outcomes.
Source: www.janrubs.unl.edu/pases/publicatindijsp?publication=1999

Employee motivation impact on organizational

performance
Maintaining stability

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

Reduction in productivity

Lack of motivation equates to less work being accomplished,

productivity does not disappear; it is usually transferred to aspects not
related to the organizations work. Things like personal conversation,
internet surfins or taking longer lunches cost the organization time and
money . reduced productivity can be detrimental to an organization
performance and future success

Negative changes to reputation

19
Low employee motivation could be due to decreased success of the
organization, negative effects from the economy or drastic hages or
uncertainty within the organization. No matter what the cause, having
the reputation of having unpleasant work environment due to low
employee motivation will ultimately impact how existing and potential
clients or parents view working with an organization. A reputation can
precede on organization and indicate its future in the industry

Source: www.ehow.combuisenss
.

Chapter 3

Materials and research methodology

3.1 Study area

The study conducted in western Oromia region chiro town which is
found on 345 km from the capital city of Addis Abeba. This study
concocted on impact of employee motivation on productivity in case of
commercial bank of Ethiopia in Chriro branch.

3.2 Methods of Data collection

Both primary and secondary data used in the study. The primary data
collected by self Administered questionnaire for employees and
structured interview for mangers. Secondary data collected from
organizational records and source written about the organization.

20
3.3. Census
Census used to collected data from the whole employees. The rationale
to use the census is that the numbers of employees in the organization
is small. The total employees 27, so the study conducted on them.

3.4 Method of data analyzing and interpretation.

In the study different types of raw data collected. This raw data
processed, Analyzed interpreted. The intended out come obtained, the
collected data edited, classified and error omitted. By using descriptive
analysis data further processed and analyzed.

Finally the data effectively process, analyzed and interpreted by using

percentage, frequency and tabulating etc. and lastly the processed,
Analyzed and interpreted data leads to conclusion and
recommendation of the study.

CHAPTER FOUR

4. Data analysis and interoperation

This section is concerned with analysis and interpretation of data that

were gathered via primary source. These data mainly analyzed and
interpreted item in the form of table computation and summery
format.

The questionnaires were distributed for 27 employees who were the

total number of employees in the organization. Even though the
questionnaires were distributed for 27 employees only 22 of them were
respond in appropriate manners. So, data analysis and interpretation
were depend on 22 employees.

21
4.1. General employees background
Under this portion the analysis and interpretation were mainly consist
of sex, age, educational qualification and martial status

Table 4. 1. Age, sex, educational level and martial tutus of

respondents

Item Response Number of Percenta

respondents ge
Age Below 2.5 10 46
26-35 6 27
36-45 4 18
46 and move 2 9
Total 22 100
Educational level Diploma 13
Degree 17
Master 2
PHD -
Total 22 32
Sex Male 14
Female 8
Total 22 100
Marital status Married 9 41
Unmarried 13 59
Widow -
Divorce -
Total 22 100
Source: compiled from questionnaire, 2012

According to table out of the total respondents 10(46%) were below

25, 6(27%) were between age. 26-35, 4(18%) were between age 36-45
and the remaining 2(9%) were above 46 age regarding marital status
9(41%) marred, 13(59%) were un married and there were no widow
and divorce employees in the organization. Among total respondents
14(64% were unmarried and there were no widow and divorce
employees in the organization. Among total respondents 14(64%) were
male and 8(36%) were female. On education side 13(59%) were
diploma holders, 7(32%) were first degree holders and the remaining

22
2(9%) were master holders. To conclude, most of employees found
below age 25, diploma holders , male and unmarried.

4.2. Motivational practice

Table 4. 2. Response on motivational practice in organization

Items Response Number of Percenta

respondent ge
Is there Yes 4 18
motivational NO 18 82
practice in your
organization
Total 22 100
If you side “Yes” for Financial 4 100
above question Non faincial -
which types of
motivational tools?
Total 4 100

The above table depicts that out of total respondent 4(18%) said “Yes”
that indicate there were motivational practice in the organization and
18(82%) replied NO that indicate there were not motivational practice
in the organization. So ,as majority of employees replied that there
were no motivational practice in the organization, it is better for
organization to practice motivation in order to enhance productivity. In
addition, all employee show said yes for existence of motivational
practice in organization again the said there were financial motivation
in organization

4.3. Motivational impact

Table 4. 3, Response about motivational impact on

productively

23
Items Response Number Percent
of age
responde
nt
Do you think motivation has Yes 22 100
impact on productive No -
Total 100
If you said “yes “ for above Positive 22 100
questioning what types of Negative -
impact
Total 22 100
Source: compiled from questionnaire, 2012

The above table shows that all of the respondents (i.e 22 or 100%) said
“Yes” by indicating as employees motivation has impact on
productivity. As the same fashion all respondents replied that
motivation has positive impact on productivity.

24
4.4. Need of motivation
Table 4. 4. Response on need of motivation

Items Response No of Percenta

respons ge
e
Why do you need To survive - -
motivation To increase work performance 18 82
To fulfill personal interest 4 18
If other specify - -
Total 22 100

According to the result in above Table 18(82%) respondents said that

motivation are required to increase work performance while 4(18%)
said that motivation are required to fulfill personal interests. No
respondents replied the need of motivation for survival. As majority of
respondents replied that motivation is required to increase work
performance, motivation is crucial factors to increase work
performance

4.5. Payment system of organization

Table 5. 5. Response about payment system of organization

Items Response No of Percentage

response
What is your Satisfied 3 14
opinion about he Neutral 7 32
payment system of Very satisfied - -
organization Dissatisfied 12 54
Total 22 100

25
The above table depict that among total respondents 12(54%) replied
they were dissatisfied with the payment they receive that indicate
negatie impact on productivity and 7(32%) said neutral 3(14%) said
satisfied. So, since majority of respondents were dissatisfied there is no
doubt to say there is no good payment system in the organization.

4.6. Additional reward system

Table 4. 6. Response about additional reward system

Items Response No of Percen

respondent tage
number
Is there additional reward Yes 7 32
system to who Performance NO 15 68
better
Total 22 100
If you said “yes” for above Financial 7 100
question what are they rewards

As it shown in above table 7 (32%) of employees said “yes” that

indicate there were additional reward system in the organization and
15(68%) of them said “No” that depict there were no additional reward
system in the organization. In addition, those who said there were
additional reward system, for question what they answered “ financial
reward” system

4.7. Opportunities is for promotion

Table 4. 7. Response about opportunities is for promotion

Items Respons No of response Percentage

e
Is there any opportunities Yes 4 18

26
for promotion NO 18 82
Total 22 100
Complied from questionnaires 2012

The above table show that 18(82%) of employees said “NO” that
indicate there were no opportunity for promotion and 4(18%) said
“yes” that indicate there were opportunity for promotion to generalize,
even if a few of employees said there were a promotion, majority of
them said there were no promotion in organization. The organization
has try to promote the out standing employees to improve its productivity

4.8. Staying in organization

Table 4. 8. Response on staying in organization

Items Respon No of Percenta

se response ge
Would you happy If you stay in the Yes 15 68
organization NO 7 32
Total 22 100
Complied from questionnaires 2012

The above tale show that out of total employees 15(68%) said “Yes”
that indicate they are happy and want to stay in the organization while
7(32%) said “NO” that indicate they want to leave the organization. So
if the organization motivate and make them to stay in the organization
it is good for it performance.

Table 4. 9. Response on who leave the organization

Items Response No of Percentage

response
Is there a person who leave Yes 16 73
the organization No 6 27
Total 22 100
If you replied for question Low salary 16 100

27
 above “yes “ what Is the And low
reason behind motivation
Total 16 100
Complied from questionnaires 2012

According to above table 16(73%) of employees said “yes” that

indicate there were a person who leave the organization and 6(27%)
said “NO “that indicate there were no person who leave the
organization in addition, all employees who said “Yes “ for who leave
the organization they said the reason for leaving the organization is
low salary and low motivational. So, if the organization increase both
reward and motivation, the degree of turn over decreased .

3.10. Punctuality of employees

Table 4.10. Response about punctuality of employees
Items Response No of response Percentage
Are you punctual for your Yes 5 32
job NO 17 68
Total 22 100

The above able show that among total respondents 5(32%) said “yes”
that indicate they were punctual to their jobs and 17(68%) said “NO”
that indicate they were absent or not punctual for their jobs that again
indicate there were a problem in the organization. Further more,
employees who were absent or not punctual replied that the reason for
absenteeism were the organization has not good in motivation
practice.

28
Table 4. 11. Response about dissatisfaction in the organization
Items Response No of response Percentage
Is there a sense of Yes 13 59
dissatisfaction in your NO 9 41
organization
Total 22 100

As shown in table 4.11 among total respondents 13(59%) said “yes”

which indicate there were sense of dissatisfaction in the organization
and 9(41%) said “NO” which indicate there were not a sense of
dissatisfaction in the organization. Therefore, since the majority of
resonances were dissatisfied it is better for the organization to satisfy
the employees. In addition, for the close end question which is what is
the reason behind for dissatisfaction in the organization the
respondents who dissatisfied again replied there were not promotion
and good motivation in the organization

What is the benefit of motivation for your self? The respondents replied
on the following way:-

 Help me to stay in the organization

 Help me to complete my job effectively

 Create good relationship with other

 Make me to do more time

 To build organizational commitment

 To increase work performance

So, since the motivation had many positive contribution for employees
it better for organization if it motivate employees.

29
 CHAPTER FIVE
Conclusion and recommendation
5.1. Concussion

Most of the employees of commercial banks of Ethiopia in Chiro Brach

are found below the age of 25 and most of them are male

 Commercial bank of Ethiopia used financial motivation to

motivate employees.

 Motivation has positive impact on the productivity of the

organization.

 There is no sufficient and enough monthly salary for employees.

This less payment has an adverse effect on the motivation,
further on the productivity of the company as whole.

 Most of the workers of the organization dissatisfied with payment

system of organization and there is not good payment system in
the organization.

 There is no good opportunity for promotion and no additional

reward system for who perform better.

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

 Most employees of organization are not punctual because the

organization is not good in motivational practice.

30
5.2. Recommendation

Based on the analysis of fact and findings, the followings are

recommended to up grade employees motivation that has positive
impact on productivity of commercial bank of Ethiopia in chiro Brach.

 The company should practice the system of increasing the scale

of salary and rewards for those whose productivity is better than
others.

 Since dissatisfaction of employees leads to turn over which has

adverse impact on productivity of organization, the organization
should satisfy those who were dissatisfied.

 Due to the fact that promoted employees have good

commitment to the organization and perform their job
accordingly, the organization should give the chance of
promotion to employees.

 The management of the organization should be approachable

and listen the comment of employees regarding motivation
problems in the organization.

 Prime focus should be given on the side of organization for

employees who perform better and initiate other employees in
order they perform better.

 The organization should follow up the employees who are not

punctual to their jobs and make them punctual.

31
  Since the organization were good in a system of staying
employees, they should continue in a good manner for future.

References

Davis and new arom (1989) Human behavior at work.

Dessler (1998). Human resource management, 9th edition.
Davis, (1994), “ personnel management and industrial
relationship, 10th edition PP.164
Bowen and Radhan Kishha, 1991,WWW.Jo.xgn.
Stephen p. Robbins,(1943),Organizational Behavior,second Canadian
edition.pp(138)
Bernard L.Rosembaum,1982.How to motivate todays workers.USA,MCG
raw Hill Book co.
Fred L uthans.1995.Organizational behavior 4th edition USA,Mc raw will
Book.
Ivan Cenvich and Matheson,1990.Organizational behavior,USA,Richard
D.Irwisn Inc.
Ricky W.Griffin,2000,management 4th edition.USA Houghton Miffilin
Stephen P. Robbins,2001,Organizational behavior San Diego state
univeresity

32
 Appendix
JIMMA UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMIC
DEPARTMENT OF MANAGEMENT

A questionnaire developed to collect the data from employees. This

questionnaire is designed to collect data on the impact of employee
motivation on productivity.

Dear respondents, the purpose of this questionnaire is to collect data

for the study about impact of employee motivation on productivity in
case of chiro branch Ethio Telecom.. Responding to this questionnaire
will not create any harm. There fore you are kindly requested to
respond confidentially while you are asked.

No need to write your name

i) Put a “X: mark for your answer
ii) Please give brief description for open ended questions.
iii) For closed end question give your answer on the space provided.
Iv) Respondents back ground/
1.1 Sex male  female 
1.2 Age less than 25 years  26-35 years 
36- 45 years  46 -55 years Above 56 
1.3 Education level
Diploma  first Degree  PHD 
Master ( 2nd Degree) 
1.4 Marital status
Married  Widow  Un married  Divorce 

1) Is there an motivational practice in your organization?

33
 Yes  No 
2) If you said “yes” for question one which types of motivation?
Financial  non financial 
3) Do you think that motivation has impact on productivity?

Yes  No 
4) If you said “ yes” for above question what type of impact
Positive  Negative 
5) Do you think that performance of employees determined by
motivation?
Yes  No 
6) Why do you need motivation?
To Survive 
To increase work performance 
To fulfill personal interest
Please if there is other specify _______________________________
7) What is your opinion about the payment system of organization
Satisfied  neutral 
Very satisfied  dissatisfied 
8) Is there any additional- reward system to those who perform better?
Yes  No 
9) If yes in above question what are they ________________________
10) What do you think about security of the organization?
Satisfied  neutral  Dissatisfied 
11) Is there any opportunities for promotion.
Yes  No 

12) Do you think you would be happy is you stay in the organization?
Yes  No 
13) Is there person who leave his job in your organization
Yes  No 

34
 14) If you replied for question 12”yes” what is the reason behind?
_____________________________________________
_____________________________________________
15) ARE you happy and punctual for your job?
Yes  No 
16) If you responded for question 15 “ No” what is the reason?
_____________________________________________
_____________________________________________
17) What is your Attitudes towards the motivational practice of the
organization?
Good  Bad 
18) Is there a sense of dissatisfaction in your organization?
 yes  No
19) If you respond for question 19 yes what is the reason behind?
_______________________________________________
________________________________________________
________________________________________________
20) What is benefit of motivation for your self ?
_______________________________________________
________________________________________________
________________________________________________

35
 Section 2 Appendix 2
INTERVIEW
1) Do you practice motivation for the employees
 yes  No
2) If you said yes for above question “ yes” which types of
motivation?
Financial  Non financial 
3) Is there positive impact of motivation in productivity in your
organization
 yes  No
4) Is there Absenteeism of employees from job in the organization?
Yes  No 
5) If you replied for question “ 4” yes” what is the reason behind?
_______________________________________________
________________________________________________
________________________________________________
6) what are the motivation tools .
_________________________________________________
7) How they practice in the employees
__________________________________________________
8) Did they see its positive contribution on employees productivity?
___________________________________________________

36