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Leadstar College of

Management and
Impact of motivation on organizational

Proposal Paper for a Partial Fulfillment of Master Thesis

(The first draft of proposal excluding literature review)

Prepare by: Tewodros Gashaw( Tel.0913 251021)

Advisor: Jabeessaa

DATE : Dec, 2017

1. Background of the study

The Commercial Bank of Ethiopia (CBE) is the largest commercial bank in Ethiopia As
of June 2017, it had about 303.6 billion Birr in assets and held approximately 67% of
deposits and about 53% of all bank loans in the country. The bank has around 30,000
employees, who staff its headquarters and its over 1160+ branches positioned in the
main cities and regional towns. CBE's banking network has reached online all branches.

The bank also operates two branches in South Sudan, and is contemplating opening re-
opening a branch in Djibouti, and opening branches in Dubai and Washington, DC, all
to serve the Ethiopian Diasporas.

The bank is pioneer to introduce modern banking to Ethiopia and credited for playing a
catalytic role in the economic progress and development of the country. It is also the
first bank in Ethiopia to introduce ATM service for local users

Currently CBE has more than 13.3 million account holders and the number of Mobile
and Internet Banking users also reached more than 1,352,000 as of September 30 th 2016
(68% active users). Active ATM card holders reached more than 3 million (61% active
users). The leading African bank with assets of 384.6 billion Birr as on June 30th 2017.

A few years ago, the government restructured CBE and signed a contract with Royal
Bank of Scotland for management consultancy services. After the death of its former
President, Mr. Gezahegn Yilma, the Board of Management appointed Mr Abie Sano as a
new President of the Bank. It has strong correspondent relationship with more than 50
renowned foreign banks like Commerz Bank A.G., Royal Bank of Canada, City Bank,
HSBC Bank,...

The Bank has designed Products and services to meet the demands of different types of
customers like children(minor accounts),students (platinum accounts), employees (
salary accounts), sole proprietors accounts, company accounts, corporation accounts,
non business accounts , partnership accounts and general account for others who do not
fall under any specified group ( quick account).

Having good products alone is not enough to attract more customers to join and
transact with the bank unless skilled and motivated Employee’s, because motivated
employees are productive and more profitable employees. When employees are not
satisfied or motivated, they become less creative, less productive of the organization. It
is more important for an organization to achieve their goals for that they have to
increase productivity and efficiency in the work place in any organization.
Word travels fast. Low employee motivation could be due to decreased success of the
organization, negative effects from the economy or drastic changes or uncertainty
within the organization. No matter what the cause, having the reputation of having an
unpleasant work environment due to low employee motivation will ultimately impact
how existing and potential clients or partners view working with an organization. A
reputation can precede an organization and dictate its future in the Bank.

1. Statement of the Research Problem

Management of Commercial Bank of Ethiopia does take initiatives to motivate its
employees in order to attain Strategic Plan of financial performance, capital
growth, operational excellence and staff talents and skills.

Researcher wants to find out factors of motivation which affect to the productivity of an
organization in order to understanding the motivation level of employees in banks.

Therefore, this study aimed at finding out the impact of employee motivation on job
2. Objective of the Study

1.1 General Objective

The general objective of this study is to assess

The impact of employee motivation on Organizational performance in the case of Commercial
Bank of Ethiopia.

1.2 Specific Objectives

1. To examine how salary increment influence the performance of employees in CBE.
2. To assess the roles of team work in enhancing job performance.
3. To find out whether motivational packages has an impact in job performance.
4. To identify the most packages for improving Organizational performance in CBE.

1. How salary increments influence the performance of employees in CBE?
2. What is the role of team work in enhancing job performance?
3. What are the motivational packages for employees in CBE?
4. Which of motivational package is most important for improving Organizational

1.3 Hypothesis:

Ho: Impact of reward and benefit does not target to low productivity.

H1: Impact of reward and benefit target to low productivity.

2. Methodology:

This Research addresses the approach to the study. It provides rationalization of the research
design (Sample size, questionnaire development, Survey, instruments description) details
regarding the sample, research model and variables (Independent variables, intervening and
dependent variables), hypotheses and response rate, selected measurement instruments, data
collection means and data analysis. The core objective of this chapter is to delineate the steps
followed in carrying out the research.

3. Significance of the study

The need for the study is increase the researcher perspective to develop the research
knowledge and valuable for other academician who is interested on the sector for further
research paper.
This research paper would be a guideline for all interested party, for instance the government
regulatory, other commercial banks, potential customer, business advisor and other for the
assessment & evaluate the challenge and prosperity of impact of employee motivation on
organizational performance

4. Scope of the Study

The study was carried out in CBE, selected branch and Head office organs, The study ought to
examine impact of employees ‘motivation on Organizational performance, what motivate
employees to perform and suggest ways of enhancing motivation and Organizational
Performance in CBE .
5. Research methodology

The researcher will be assess the methodology of the study, study of design, sampling design,
data source and collection, data analyzing method and the description of multi regression
Thus, in order to achieve objective the researcher will be conduct this study mainly employ
mixed research approach. Secondary data will be collected from the audited financial
statements of the last 15 years from commercial bank of Ethiopia and development bank of
Ethiopia and use panel date and analyze by stata12.

6.1 Research Design

Research design provides the structure for the collection and analysis of data ( Bryman
& Bell, 2011). And it is the preparation and structure of investigation so conceived as to obtain
answers to research questions (Cooper & Emory, 1995). This means it gives the procedure
necessary for obtaining the information needed to solve the research problems. Many research
designs will be used to study business problems (Hair et al., 2011). As per the researcher
research design will conduct to mixed research used approach.

6.2 Sampling Design

Study Population & sampling of data

According to Sekaran (2003), Population refers to the entire group of people, events or
things of interest that the researcher wishes to investigate addressee the objective
studies. This study will be the entire with population or participants of this research are
focus on Commercial bank of Ethiopia. Sampling size can be defined as the number of
units in a population to be studied.