ASSESSMENT OF EMPLOYEES MOTIVATION AND IT’S IMPACT

ON PRODUCTIVITY

(A CASE OF GONDAR MOHA SOFT DRINK BRANCH)

A RESEARCH PROPOSAL SUMBITED TO DEPARTEMENT OF

MANAGEMENT FOR PARTIA FULFILLMENT OF BA DEGREE IN
MANAGEMENT

PREPARED BY: FITALEW SEMAGN

(ADVISOR: FITALEW, BCS)

GONDAR UNIVERSITY

COLLEAGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

GONDAR, ETHIOPIA

June, 2013 E.C

 ABSTRACT

Employee Motivation has its own impact on productivity in MOHA Soft Drink
Company GONDAR Branch. The objective of the study is to assess the existing
Motivational strategies in MOHA Soft Drink to analyzed and evaluate its impact on
employee’s productivity.
This Study was intended to assess the impact of employee motivation on productivity
in case of MOHA soft Drink share company Gondar branch the study is significant to
MOHA to identify motivational problems of the company and take corrective measures
and researcher to acquire more experience on research.
The study was conducted at Gondar MOHA soft drink Company from nonmember to
June, 2013 and used a simple random sampling technique. By using both primary
and secondary source of data. The methods that are to collect the necessary
information are questioner and interview. Both open and close ended equation is
included in the questionnaire the interview method that use in this research is
structured one. The results were analyzed through Descriptive method of data
analysis such as tables, averages and percentages. Finally the researcher was
interpret the data in understandable and communicable manner to the reader and
was put his own conclusions and recommendations.
Acknowledgement
First and for most, my thanks goes to the almighty God, for every thing he has done
for me to accomplish this research.
Secondly, my deepest gratitude goes to MULUYE (BCS,) for his wonderful consultancy
and effective advisory role throughout the study.
Thirdly, I would like to thank Ato Fitalew Semagn for her immense contribution in writing
the whole part of the study with fired.
Finally, my acknowledgment goes to different individuals including the manager of
MOHA Soft Drink in Gondar branch forgiving information and providing different
support for the study.
 CHAPTER ONE
INTRODUCTION
1.1 Background of the organization

This section is the brief review of history of Gondar Pepsi cola plant in particular and
MOHA soft drink in general.
Soft drink are known to have first introduce in Ethiopia in the 1920s, particularly
MOHA soft drink company establish on march 26, in 1944 E.C in the form of joint
venture with two person in Gondar town specifically in PIYASA. MOHA hold 52% of the
market share in soft drink industry in the country. With an expansion and
replacement of obsolete machinery, production capacity of the plant has increased
substantially.
MOHA Pepsi cola soft drink industry has different bottling plant which has found in
different part of country. From those branch Gondar MOHA soft drink branch is one
of the fastest growing industry in Central part of Gondar in Amhra region which is
located at the Central direction 75 KM far from Bhiar Dare.
The major product of Gondar MOHA soft drink industry are; Pepsi cola, Miranda
orange, 7-up, Miranda tonic, Miranda apple, and bottled water products.
The annual turnover of the company has reached to birr 656 million & sales stands at
average annual growth rate of 14%.
MOHA soft drink industry has adhered to Pepsi cola international standards and good
manufacturing practices (GMP).
1.2 Back Ground of the Study
The Survival of organization is only possible through effective and efficient
management of organization resources.
Human resource is one of these resources that need to be well managed. As a
resource, human resource plays a vital role in achieving both the long run and
short run objectives of the organization. Managing people at work is not easy
like managing of others resources because of complex nature of human being
(Macmillan India Ltd, 2005).
Even, in a single organization employees have different personality, attitudes,
beliefs and values. Hence, we need different approaches (Mean) to motivate
them. Taking in to account people’s complicated psychological make up
managers must use different strategies and skills motivating employees for the
survival and best performance of the organization.

Employee Motivation is directly related to a firm’s productivity. Motivated

employees feel encouraged to work towards achieving the goals of the firm
while at the same time, they achieve their goals (WHETTEN and Cameron,
2003).
The study of Motivation important for worker will tend to be as efficient as
possible by moving up on their skill and knowledge, for performing any task,
two things are necessary, they are :
 Ability to work
 Willingness work
A comprehensive understanding of the way in which organization function
requires that at least some attention to be directed toward the question of why
people behave as they do on the Job. An understanding of the concept of the
motivation is thus essential in order to comprehend more fully the effect of
variations in factors such as leadership, job design and salary systems they
related to performance, satisfaction and forth. (Ibid)
Employee motivate is the base for productivity of one organization so, the
researcher was conduct the study in MOHA soft Drink share company Gondar
branch, because of in developed country employee motivation is well
implemented (Practice), but in our country context their is no any researchers
who is able to identify motivational factors and also their is no any organization
on which employee motivation well implemented (Practices) so, the researcher
is initiated to clearly identified the problems.
1.3 Statement of the Problem
Motivation is one of the essential activities of organization in quality of
productivity. The one who a manager in an organization must focus on
motivation and productivity. Employee motivation is one of the policies of
managers to increase effectual job management amongst employees in
organizations (Shadare et al, 2010).

Motivated employee is responsive of the definite goals and objectives he/she

must achieve, therefore, he/she directs its efforts in that direction. Employee
plays an important role in accelerating organizational development (Bulent et
al, 2009). Motivation is an internal strength that driver individuals to pull off
personal and organizational goals (Reena et al, 2009)

Motivation formulates an organization more successful because provoked

employees are constantly looking for improved practices to do a work, so it is
essential for organization to persuade motivation of their employees
(Kalimullah et al, 2010)

Currently their are many problems in the study area those are:- Insufficient
basic salary, availability of bones & over time , Unsuitable work in condition,
No compensation for good performance and bad supervision from their
management. The other researcher side that, conducive work condition,
Motivational techniques other than payment system such as recognition, clear
communication, accountability to job, job satisfaction training, improving the
management system, consistent and clear job description should be designed
according to their qualification and performance, but this creates a gap among
researchers to fill this gap the researcher raised the following equations.
 What are the roles of employees in productivity?
 How motivation factors affects performance of employees?
1.4 OBJECTIFE OF THE STUDY

1.4.1 General Objective

The study is investigated the existing Motivational strategies in MOHA
soft Drink and analyze and evaluate its impact on employees
productivity.
1.4.2 Specific Objective
 Evaluation of employee satisfaction with the motivational practice
of the company
 Suggesting possible solution to the existing Motivational problems
 To know the motivational polices and practice in giving the
intended results.
 To know the MOHA work environment contribute to employee
Motivation or not
 To know whether there is a relationship between compensation
and employee motivation in MOHA.
1.5 SIGNIFICANCE OF THE STUDY
The reason for the existence of any kind of business in the market is to make
profit. Effective & efficient production of products and market them for
customer are always pre requisite for making profit. Therefore, a cues study on
motivation benefits the organization to reach target profit level through
employee motivation:-
 It was helping MOHA to identify Motivational problems of the
Company and take corrective measures.
 The findings & recommendation are suggested the MOHA soft Drink
Company help’s other Company
 The study was also helps the researcher to acquire more experience
on research.
 And finally, the study can attract or the researcher to take extensive
research paper on the company to fill researcher gap.
1.6 SCOPE OF THE STUDY
This study was intended to assess the impact of employee motivation on
productivity in case of MOHA Soft Drink Share Company Specifically Gondar
branch.
 CHAPTER TWO
REVEW OF RELATED LITERATURE
2.1 INTRODUCTION
What is motivation? What Factor Influence motivation?
The challenge of an organization leaders and manager to motivate is expectedly
complex. They must find out what workers for them in their situation in their
perspective organization.
The chapter addresses different traditional theories and some aspects if their
application in today’s business environment. It also of motivation and some briefly
touches some method of motivating employees at work places.
Finally, it summarizes the challenges of motivations in today’s business environment.
(Agarwal 1982:193).
2.2 MOTIVATION: DEFINED
It is evident that motivation directs our behavior towards specific goals. Especially,
performance of works in organization is highly influenced by the motivation practices
of the organization. The reason for studding motivation of personnel is the desire to
secure or maintain optimum performance form employees.
Performance can be seen as a function of the individual’s knowledge and motivation
(willingness to perform). The more presence of ability & knowledge can note guarantee
that the individual will put forth his best effort. There is another factor operating in
the situation, namely motivation which finally determines the effort which can
reasonably be expected from such employee. (Its Chandan 1994:55).

This chapter tries to present brief discussion of the major motivational theories that
must be taken in account while managing employees in the wok place to all managers
will be sensitive to variation in employee’s needs, abilities & goals.

Motivation can be defined in a verity of ways depending on which goals ask. If you ask
someone on the street, you may get a response like. “It what drives us” or “Motivations
what makes us do the things we do”. As far as the formal definition, motivation can
be defined as forces within an individual that account for the level, direction and
persistence of effort expanded at work (Schermerhorme etal 1984:76). The term
motivation was organize derived from Latin work “Mower” which means to move (Steer
& porter 1983:3).

Motivation has been defend in different way by different authors; there is no single
universally accepted definition for this term. To mention few, motivation was defined
as stimulation to action resulting from the individual’s desire to reach or established
goal or purpose (Smith 1961:584).
It has also defined as those Psychological processes that cause the arousal and
persistence of voluntary action that are goals directed (T.R. Mitchell 1982:80).
Those from the above definitions we understand that motivation is orating a force in
and individual that cans him, her towards desired action.

2.3 IMPORTANCE OF STUDING MOTIVATION

A. Motivation is one of the important elements in the directing process.

B. Worker will tend to be as efficient a responsible by moving up on their skill &
knowledge.
C. For performing any two things are necessary, they are:
 Ability to work
 Willingness work
Without willingness to work, the ability to work is no use. Willingness to work can be
treated any by motivation.
In other words, for organization to be effective, it most come to grips is the
motivational problems of simulation by the direction by the decision to participate and
the decision to product at work (Andent, 2003:5) and also, motivations are a concept
presents a multitude of factors in the organization set up. A comprehensive
understanding of the way in which organization function requires that at least some
attention to be directed toward the question of why people behave as they do on the
job.
An understanding of the concept of the motivation is thus essential in order to
comprehend more fully the effects of variations in factors such as leadership, job
redesign, and salary systems they relate to performance, satisfaction and forth (Ibid).
Finally, organizations are used to see their financial and physical resources form along
term perspective, only recent sly have they begun to seriously apply this same
perspective to their human resources many organizations are how beginning to pay
increasing attention to developing their employees as future resources up on which
they can draw as they grow more concern is being directed in addition toward
simulating employees to enlarge their job skills through training, job designing and job
rotate: on and so an at both the blue color and the white color levels in an effort to
ensure a continual reservoir of well-trained & highly motivated people (Richared M.
Steers 1972:1-2) for these reasons, the topic of motivation has been going increased
attention by both managers and organizational behaviorists.
Once we have discussed the importance of studding motivation let us try to consider
different motivational theories.

2.4 THEOIES OF MOTIVATION

In order to understand more fully how motivation occurs, it is helpful to examine three
concepts.
1. Intrinsic Motivation
2. Extrinsic Motivation
3. Vicarious Motivation
The term intrinsic & extrinsic Motivation refers to the sources of motivation and the
nature of its consequences. The source of intrinsic motivation is a need or other
stimulus that occurs in an individual extrinsic motivation, on the other hand, is
caused by incidents or stimuli: that occur externally, extrinsic motivation takes place
when out comes occur externally and their relationship to the motivated behavior is
arbitrary rather than natural. (Jit S. Chandan 1994:54) and finally, vicarious
motivation refers to the fault that seeing others rewarded or punished function as a
motivator by arousing a person’s expectations that he is likely to experience similar
out comes for his own comparable performance white and (Bendar, 1991: 145-146).

There appears to be no single cause of motivation manage factor are believed to

influence a person’s desire to work or to behave in a certain way, different theories of
motivations have been forwarded in explaining human behavior at work place in
different situations, their theories are grouped into two tipes Namely: The content
theories and process theories.
Content theories explain motivation as primarily a phenomenon occurring within
individual. In other word, these theories emphasize explicit on the attempts to develop
and understanding of human needs, it focuses on the factor within the people that
energize, direct, sustain and stop behavior (John Invancevith, 1994:1240).

Process theories on the other hand provide description and analyses of how behavior
is energized, directed, sustain and stop behavior (John Ivancevith, 1994:1240).

Process theories on the other hand provide a description and analysis of how behavior
is energized, directed, sustained and stopped (Jhon Invancevich 1994: 1240) these
theories are concerned with the means by which effort related decision are made.

In the following section, different types and concepts of motivation theories and their
implications will be discussed.

2.5 CONTENT THOR’S OF MOTIVATION

Content theories suggest that motivation is interim sic (initiated within individual) and
focus on what stimulates or arouses individual behavior. On view suggest that
motivation is linked to need satisfaction, according to this view, motivation occurs
when a felt need or deficiency within individuals initiates derive toward a specific goal.
Content theories of motivation use individual need to explain the behavior & attitudes
of people at work, these theories are usually concerned with individual needs or the
arrangement of those needs in some hierarchy or order importance, (White and
Bender, 1991L148), Although each of the following theories discusses a slightly
different set of needs, all agree that needs cause tensions that influence attitudes &
behavior.
Included in these theories are, Maslous’s Heracchy of needs, Alderfer’s ERG theory.
Frederick Hertzberg’s two factor theory and Maceed’s theory of learned needs. For our
purpose consider two main types of motivation theories.
 2.6 Maslow’s Hierarchy of Needs
According to gray and strike (1984:76) Maslow’s Hierarchs of Need is one of the most
dominant & widely practiced theories of motivation. This theory assumes that human
behavior is influenced when individuals’ or groups of individual’s attempts gratify their
unsatisfied needs (Andent, 2003:11).

Maslow’s theory contends that each of five needs, either by itself or in combination of
other needs, is capable of motivating behavior. However, the needs are arranged in a
distinct hierarchy is the appearance of one need resting up on full or partial
satisfaction of other more proponent needs thus according to Maslow’s need hierarchy
a clear pattern of need progression exists the exception to the need progression
process is self actualization as people experienced self actualization, they desire more
rather than less of this need (Steven L. and marry Ann, 2000:67).

Maslow’s theory assumes that a person attempts to satisfy the more basic Needs
(Physiological) before diversifying behavior towards satisfying upper laves. In addition,
according to Maslow’s when a need increases in strength, then the decrease in the
strength of a satisfied need led Maslow to assert threat satisfied need is not motivator.
(Adnent, 2003:11). According to Maslow there are five basic needs (or Motives) are
common, on to all mentally healthy adults these needs includes:
I. Psycholpical
II. Safety Needs
III. Social Needs
IV. Esteem Needs
V. Self-Actualization Needs
To put in details:
I. PSYCHOLGICAL Needs
Their needs are concerned with life necessities, such as food, air, and the needs for
rest, and some other essential to our existent. (Jit S. Chandan 1982:62).
II. SAFETY NEEDS
Also known as security needs, these include the for protection against danger, the
need for freedom from threat and deprivation and protection against hazards
things. In other words, these are the assurance that basic physiological needs will
be satisfied in the future (Ibid).
III. SOCIAL NEEDS
These needs deals with need to belong to community giving and receiving love,
friendship, affiliation needs there imply that employees need interaction with their
peers and community at large (Jit S. Chanada, 1982:63)
IV. ESTEEM NEEDS
These are the needs for self-respect and for respect from others self esteem
encompasses such items as self-confidence, achievement and independence, the
esteem from others deals with one’s regulation, status, and recognition. Hence
employees need to be respected appreciated by their bosses (Ibid).
V. SELF-ACTUALIZATION NEEDS
These are the needs for self fulfillment: the need to reach one’s potential by
making maximum use of abilities and skills. (S it S. Chandan 1982L62).

If a manager embraces Marlow’s hierarchy, he/she will motivate employees,

keeping the order of need in mind.
Maslow’s needs hierarchy is one of the best known motivational theories, but the
model is too Muchrisid to explain the dynamic and unstable characteristics of
employee needs. According to Griffin (1984:388) we cannot limit the level need &
the order of the level & be affected by environmental factors.

2.7 HERTZBERG’S TWO FACTOR THEORY

The two factor theory of work motivation (also known as the Motivator hygiene
theory) added an additional dimension to motivation theory and focused attention
on Motivation in the work place. While studding mangers in engineering and
accounting firms, Hertzberg concluded that two separate and distinct sets of
factors influence individual motivation. Hertzberg referred to there groups of factor
satisfiers and dissatisfies even fumy Motivators and hygiene. (F. Hertzberg. etal
1959:148).
Hertzberg argue that hygiene factors in the work setting are sources of job
dissatisfaction also he says that Motivator’s factors in work tasks are source of job
satisfactions. (f. Hertzberg. etal 1959:148) Early research suggested that factors in
the work environment (hygiene) such as working conditions, pay, and technical
supervision could prevent dissatisfaction but did not contribute to an employee’s
Motivation. Instead, factors related to the job itself (e.g. opportunities for
achievement, recognition, Meaningful work growth, responsibility know as
Motivation, Influenced work Motivation. (White and Bendar 1991:152).

Two factor theories has caused managers to question traditionally held views about
the importance of such things a fringe benefits, technical supervision and working
conditions on job performance and productivity. His theories can be summarized
by quote from him, “If you want people to do a good job, give them a good job to
do”. (S it S, Chanda, 1982:67).

2.8 PROCESS THORIES OF MOTIVATION

So far, we distinguished the content theories from process theories. Content
theories explain why people have different Needs at different times, whereas
process theories describe the processes though which need deficiencies are
translated into behavior process theories equate Motivation in the decision to act or
put forth effort. These theories are concerned with the means by which
individually gather and analyze information and the process by which effort related
decisions are made. (S It S, Chandan, 1982:76)

2.9 METHODS OF MOTIVATIONG EMPLYEES

We have discussed different concepts of motivation theories that can be translated

by managers into practices although the theories have their own short comings
(Ivance VIC, 1990:308) we cannot say a particular kind of motivator can motivate
all the employees in and organization, because individual needs and wants vary
depending on many factors (Sochar age, Sex, education, status, Background).
 However in this section, I will try to explain some of the common Motivators
(IvanceVIC, 1990:308).

2.10 THERE ARE TWO BROAD MEANS OR TOOLS OF MOTIVATION

Applied by Mangers (Ivance VIC, 1990:308) there are:
 Non-Financial Means of Motivation and
 Financial Means of Motivations
Non-Financial Means of Motivation
There categories of Motivation include:

2.10.1 Job Enrichment

Job enrichment occurs when employees are given more responsibility for scheduling,
coordination and planning their own work. Although some writers suggest that job
enrichment is any strategy that increase one or more of the core job characteristics,
Hertzberg said that jobs were enriched only through autonomy and the resulting
feeling of responsibly (Steuen L. & Marty Ann, 2000:115) Viewed in terms of
Hertizbrigs motivational factors, Job environment occurs when the work itself is more
changing, when difficult, repetitive and boring tasks are minimized, when achievement
in encourage, where there is opportunity for growth, and when responsibility
advancement and recognition provided (Sosias, 1998:11).

2.10.2 ASAFE AND HALHY WORK ENVIRONMENT

The work environment can either make people feel good or demotivate them if it is not
satisfactory. Mangers are in aspiration to ensure safe working conditions and build
up healthy environment (Davies, 1981:152).

2.10.3 EMPLOYEE DEVELOPMENT

Employee development might be described as a continuity process of improving
employees so that they make the fullest possible use of their abilities. This is done by
encourage self development and training (K. Parased 2005: 252)
 2.10.4 PARTICIPATION

Participation is mental and emotional a involvement of person in group situations that

encourage them to contribute to group goals and share responsibly for them (Davis,
1981:152).
2.11 FINANCIAL MEANS OF MOTIVATION
This type of Motivation system can be in the form of incentives, bonuses, fringe
benefits, salaries and wages.
Reward systems are clearly related to Vroom’s expectancy theory of motivation
financial rewards are fundamental part of the employment relationship. Organizations
distributes money and other benefits in exchange for the employee’s availability,
competencies, and behavior rewards help to individual’s contribution (URS-Davar
1999:237-238)

2.11.1 FRINEC BENEFITS

Such extra benefits, in addition to the normal wage or salary compensation, are
referred to as fringe benefits. (Ivano VIC, 1988:79) employee fringe benefits can be
grouped into the following groups.
These are:
I. Payment without wok
II. Retirement benefits
III. Safety and health provision; and
IV. Recreation and other benefits (K, PRASAD 2005:169)
How could the employee fringe benefits motivate employee by:
1. Inducing happier employers employee relations
2. Generating good morale in the employees.
3. Providing a psychological environmental satisfactory work
4. Promoting the health and the safety of employees
5. Inducing loyalty to the company and many more (Ibid)

2.11.2 BONUS: Are essentially rewards for success and are paid out as lupsum. This
is accomplished when the organization, individual or team has achieved something out
standing or when organizational performance has exceeded it largest. (Ivono VIC
1988:58)

2.12 JOB SATISFACTION

Job satisfaction results from the employee’s perception that the content and context
actually provide what can and employee values in the work situation. It can redefine
as “a pleasurable or positive emotional state resulting from the appraisal of one’s job
or job experience”. This positive emotional state is highly contributory to an
employee’s physical & mental well-being organizationally speaking, high lave of job
satisfaction reflects a highly favorable organizational climate resulting in attracting
and retaining better worker (Sit S. Chandan 1984:80).

2.13 SOURCES OF JOB SATIFACTION

Many research studies have been conducted on the subject of job satisfaction and
employee morale in order to establish some of the causes that result in job
satisfaction. These studies have revealed that certain variables are consistently
correlated in job satisfaction (Ibid).
Some of Sources of Job Satisfaction are:
I. Organizational factors
II. Work Environmental factors
III. Factors related to work itself
IV. Personal factors
I. Organization factors are
 Salary & Wages
 Promotions
 Company policy Unit S. Chandan, 1984:89-90).
II. Work Environmental Factors are
 Supervisory style: It has been established that whatever the supervisory
are friendly and supportive of workers. There is job satisfaction.
 Workgroup the group size and the quality of interpersonal reallocations
within the group play a significant role in worker happiness.
 Work conditions-good working conditions are highly desirable because
they lead to greater physical comfort (Ibid).
III. Work It Self
By and large, the work itself plays a major role in determining the level of job
satisfaction. The job content has two aspects. One is the “job scope” which
involves the amount of responsibility, work face and the feedback provided. The
higher the level of their factors, the higher the job scope and thus higher the
level of satisfaction, the second aspect it variety (Sit S. Chandan 1984:91).
IV. Personal Factors
While the external environment within the organization and the nature of the job
are important determinants of job satisfaction, personal attributes of individual
employee play a very important role as to internist source of satisfaction which
comes from within the person and is a function of the employee’s personality.
Some of the personality traits that are directly related to increase job satisfaction
are self assurance, self-esteem, and maturity, and decisiveness, sense of
autonomy, challenge and responsibility. (Ibid).

2.14 CONSEQUENCE OF JOB SATISFACTION

Job satisfaction or dissatisfaction is of great concern to management since there
seems to be a relationship between job satisfaction and job performance. Job
dissatisfaction produces low morale among workers & low morale at work is highly
undesirable accordingly, managers must be constantly watching for any signs of
low moral & job satisfaction and take corrective action as soon as possible, (Jit S,
Chandan 1984:87).
Some of true the indicates of low morale are:
 Employee Unrest
 Absenteeism
 Tardiness
 Employee Turnover (Sit S, Chandan, 1984:88).
2.15 Various Approaches and Opines for Job Redesign
While job enrichment, which primarily means making the jobs more meaningful
interesting and challenging, forms the foundations for the job more redesigns,
there is much other aspect of the existing jobs that can be employees. (Sit S,
Chandan 1984: 107).
 2.15.1 JOB ROTATION
When and organization has a series of routing job that cannot be combined or
enriched the employees maybe shifted from one job to another order to provide
some Varity so as to minimize the monotony and boredom (Ibid).

2.15.2 FLEXI TIME

Flexi Time Iran approach which allows employees more freedom in determining their
own schedules within the general organizational guidelines. It gives employees a daily
choice in the timing between work and non-worker activities, they may come to work
late in the morning and leave early in the evening. They may come to work late in the
morning and leave late. However, they must be present a t work during certain daily
core hours so that necessary interpersonal and interdepartmental activities can take
place. (Ibid).

2.15.3 JOB SHARING

In job sharing two part time employees share one full time job. One person may
perform the job from 8:00 Am till soon and another from 1:00 pm till pm. Job sharing
is beneficial to the organization because it is then being able to attract more talented
people (Sit S, Chandan, 1984:108).

2.15.4 TELECOMMUTING
Tele-Commuting is the result of high technology at work, where people can work from
their homes using a computer linking them to place of work. Telecommuting provides
flexibility of working and comfort of home even though it isolates the employees form
the team spirit and the employee supervision is more difficult. Telecommuting is
popular among computer programmers, financial analysis and among secretarial
support services (Sit S, Chanadan, 1984:109).

2.16 Money AND MOTIVATION

Behavioral theories of motivation have tended to de-emphasis the role of money as
motivators. The fact remains that money continues to be an important Motivators at
least in under-developed countries where physiological needs of workers are only
partially satisfied even in developed countries, financial incentive plans do result in
greater productivities In order to get a motivator or to high performances, financial
incentive plan should posses the following characteristics; (I) reward should be related
directly to productivity (ii) reward should be given immediately rather than later; (iii)
reward should be given consistently (R.DA Sarwal 1982:200).
 CHAPTER THREE
METHODOLOGY OF THE STUDY
3.1 Research Design
The study would be focused assessment on employee motivation its impact on
productivity. In MOHA Soft Drink share company Gondar Branch and it was
conducted by descriptive analysis. It uses the present situation of the motivation in
the area and identifying the major problem that affects the motivational activities in
the company.
3.2 SOURCE OF Data

The researcher was used both primary source & secondary source of data primary
sources are responses of employees of MOHA Soft drink company, while secondary
sources are written document of the company.

3.3 METHODS OF DATA CONACTION

The researcher would be collected through interviews, and questionnaires, to conduct
primary data. The secondary data would be also collected from books, Journals,
magazines, and News papers.

3.4 TARGET POPULATION

Total population of MOHA Soft Drink of Gondar Branch is 125 out of this 52 (16%)
are females and the remaining 108 (84%) are moves.

3.5 SAMPLING TECHNIQUES

The researcher was use simple random technique. The reason behind is to minimize
the time required for data analysis and the company’s operations system was made
the process of primary data collection is difficult to the target population.
3.6 SAMPLE SIZE
The number of samples need for the study would be determined by the following
general formula
N=Z2.p.q.N
e2(N-1)+z2. P.q
Where:-
n= Number of sample size
Z= Table value of confident
N= Total interval population of the company
p= Profanity of success
q= Probability of failure
e= allowable error
Confidence interval = 90%=0.1
Z=1.65
P= 0.5
q=0.5
e=0.1
N=270
n= Z2,p.q.N = 1.652*0.5*0.5*270
e2 (N-1)+Z2p.q 0.12(270-1)+1.652*0.5*0.5

n=55
Total this sample site would be selected randomly by using lottery means from the
total population.
Methods of data analysis and interpretations. The researcher was analyzed the
connected data by using descriptive method of data analysis tools such as
percentages, tables, averages. Finally the researcher was interpreted the analyzed
data in communicable and understandable manner for the readers.
 CHAPTER FOUR
DATA ANALYSIS AND INTERPRETATION
This chapter focus on a composition between data is collected from employees
and management analysis. As indicated in the proposal part of the study; the
data are going to use were collected through interviews and questionnaires.
4.1. Background Information of Respondents
The following table represents back ground information of employee’s
respondents
Table1: Background Information of Respondents
No Items Number of Respondents %
Age Rang
1 a. 20-29 21 38.1
b. 30-39 15 27.2
c. 40-49 10 18.1
d. 50-59 9 16.3
e. >60 - -
Total 55 100
Sex
a. Male 32 58.8
b. Female 23 41.2
Total 55 100
Educational Level
a. 12 Complete 12 21.1
b. <12 8 14.5
c. Diploma 19 34.5
d. Degree 16 29.9
Service year
a. 1-5 21 38.8
b. 6-10 17 30.1
c. 11-20 13 23.3
d. >21 4 7.7
Total 55 100
From the response of table 1 on item1, 21(38.1%) of the respondents are within
the age range of 20-29. 15 (27.2%) are in the age range of 30-39, 10(18.1%) are
in the age range of 40-49 and the rest 9(16.3%) are in the age range of 50-59.
When we look at item 2 of table 1, sex characteristics of the respondents, 32
(58.8%) of the total respondents are males, 23 (41.2%) of the respondents are
female. Item 3 of table 1, indicates the education level of respondents.
According to this table 12(21%) of the respondents are grade 12 complete,
8(14.5%) of the respondent have not completed grade 12, 19(34.5%) of the
respondents are diploma holders, the rest 16(29.9%) are degree holders. From
this data we can understand the sample constitutes all types of employees in
the organization.
Item 4, of table 1 is about employees work experiences. From all the
respondents 21(38.8%) have served 1-5 years, 17(30.1%) have served 6-10
years, 13 (23.3%) have served the organization for 11-20 years and the
remaining 4(7.7%) have stayed in the organization for more than 21 years.
This implies that majority of the workers have served the organization for more
than six years.
4.2. Employees Attitude towards Salary
The first thing for which people engage in different activities is to satisfy their
basic needs, employees use their salary for the purchase of food, clothes,
housing, transportation, education of their children and many other things. To
fulfill these needs employees should get sufficiently or enough salary. The
researcher asked respondents about their salary, the summary is presented as
follows.
 Table 2: Employee Attitudes towards Salary
No Items No of %
Respondents
1 In which range your salary Scale?
a. 150-400 1 1.8
b. 401-600 3 5.5
c. 601-735 5 9.1
d. 736-1000 8 14.5
e. 1000+ 38 69.1
Total 55 100
2. Have you ever felt Happy by your salary?
a. Yes 34 61.2
b. No 11 20
c. Some how 10 18.8
d. I don’t know - -
Total 55 100
3 When you Compared with employees of
equal education level and service year, your
salary is?
a. Higher - -
b. Equal 19 34.4

c. Lower 36 65.6
Total 55 100
Item 1 of Table 2 forwarded for employees to asses whether they have ever felt
to be motivated because of their salary, most of them 61.2%(34) said yes,
20%(11) said no and the remaining 10(18.8%) said some extent they motive.
Concluded from above item 1 and item 2, are that most workers have
suggestion about their salary. Since employees are naturally too sensitive to
their salaries, management should pay attention to solve their problem item 3
of table 2 is about comparison of salary of employees having equal education
level & experience out of the respondent who filled the questionnaires more
than half 36 (65.6%) replied that their salaries are low with compared to other,.
The rest 19(34.4%) said their salaries are comparable (equal).
This figure indicates that employees feel as if their salaries are low when
making comparison with others.

4.3. Effect of Performance Evaluation on Motivation

Performance evaluation is a method of evaluating workers whether they have
accomplished jobs according to the company standards based on this
evaluation exists in MOHA soft drinks industry and employees attitude toward
the evaluation it if presented in the following table.
No Items No of %
Respondents
1 Is performance appraisal result show to
employees?
a. Yes 55 100
b. No - -
c. I do not know - -
Total 55 100
2 Do performance appraisal criterions evaluate
workers effectively?
a. Yes 25 45.5
b. No 30 54.5
c. Some how - -
d. No Answer - -
 Total 55 100
3 Do leaders of your organization evaluate
employees appropriately?
a. Yes 20 36.4
b. No 35 63.6
Total 55 100
4 What do you think the reason for
employee’s evaluation?
a. For promotion 10 18.2
b. For Transfer - -
c. For punishment 10 18.2
d. To establish good employee 35 63.6
performance evaluation?
Total 55 100

Questions were presented to respondents to know whether performance

appraisal result is show to employees.

All of the respondents answered that it is provided to employees this is very

important to employees because they can check themselves a head of time and
correct their short comings, if any. It also tells the employees how much they
are meeting the company’s standard.

Respondents were also asked to give their opinions about the effectiveness of
performance appraisal criterion, out of 55 respondent 25(45%) said that the
criteria used are effective and 30(54%) of the respondents said that the
criterion do not evaluate employees performance effectively the above figures
indicates the existence of problems regarding criterion used to evaluate
workers performance.

Another question that was forwarded to respondents was aimed to know

whether the leader of the organization evaluate employees appropriately or not.
In response to this question 20(36.4%) of the respondents said that the leaders
appropriately evaluate workers performance and the remaining 35(63.6%) of
the respondents said that the leaders do not evaluate them appropriately. Here
it is important to know that the criterion should be administered appropriately
otherwise it would be difficult to measure that effectiveness of criterion
themselves. From the figure above leaders of MOHA are not appropriately
evaluating their worker performance. The last question to respondents
regarding their opinion towards performance evaluation is stated as follows.

The number of respondents who said that evaluation is to punish workers and
to promote them are equal i.e. 10(18.2%) out of the 55 respondents. The rest
of 35(63.6) respondents said that the evaluation undertaken is to establish
good employees relationship. From the figures we can safely conclude that
majority of MOHA’S workers are optimistic towards the purpose of employees
evaluations. They are positives out look towards employee’s performance
appraisal program of MOHA’S.

4.4. Roles of Training and Promotion of Motivation

Training Helps the employee to increase their skills and also refreshes the
already learnt skills at the same time, it is also creates an opportunity for
employees to know each other as well as to share experiences. On the other
hand, promotion develops on employees the sense of importance and
accomplishing tasks that require greater knowledge and responsibility. These
elements can therefore motivate employees.

Table 4: Roles of Training and Promotion

No Items Numbers of %
Respondents
1 Are your skill matches with the job
requirement?
a. Yes 55 100
b. No - -
c. No Sure - -
Total 55 100
 2 Are you willing to take job that
requiring different skills?
a. Yes 43 78.2
b. No 12 21.8
c. To Same how - -
d. No sure - -
Total 55 100
3 Are you willing to take additional
responsibilities without salary
increment?
a. Yes 16 29.1
b. No 15 27.3
c. Not sure 24 43.6
Total 55 100

Item 1, of table 4 indicated that all respondents conform that matching or their
skills and the skills their job demands increase their productivity, from this we
can understand that management should assign and workers according to
their skills of greater motivation and productivity are required.

Respondents were asked whether they are willing to take jobs that requiting
different skills of the respondents, 43(78.2%) said, they are willing and
12(21.82%) are not willing to take jobs that requiring different skills.
According to the figure above, majority of the workers want to accomplish jobs
requiring varied skills. If such workers are wanted to best way is to enlarge
their jobs horizontally.

As indicated at the beginning of this topic, promotion employees to higher

responsibility is one of the methods of motivation, on Item 3, of table 4,
employees were asked whether they are will to take additional responsibility or
not without salary increment, out of all respondents 16(29.1%) are willing,
15(27.3%) are not willing, and 24(43.6%) are not sure additional responsibility
even without salary increment. Such employees are in a high need for
achievement profile. Management should identify such workers so that
appropriate responsibilities will be given to them in order to motivate them.

4.5. Motivation and productivity

It is evident that motivated workers are more productive than none motivated
when workers are motivated, they can properly administer company’s
resources. Use best of their knowledge and their skill little scraps, and less
absenteeism and turn over, in this part of the study, we investigate whether
motivation affects productivity in MOHA soft Drink industry or not. questions
were addressed to employees and presented in the following table.

No Items Numbers of %
Respondents
1 Is there any benefits you get from
the organization motivate you for
better performances?
a. Yes 18 32.7
b. No 37 63.3
c. To some extent - -
d. I do not know - -
Total 55 100
2 Do you think Motivation from your
organization increase your
productivity?
a. Yes 15 27.3
b. No 40 72.7
c. Some how - -
d. I do not know - -
Total 55 100

Benefit packages motivate employees for higher performance item 1 of table 5

briefly indicates this, 18(32.7%) of respondents agreed that the benefits they
set from the organization motivate them for better performance. The rest
37(63.3%) stated that the benefits they get from the company do not motivate
them for better performance. One can certainly conclude from this that
productivity and greatly depends on employee motivation.

In response to the question presented in item 2 of table 5, 15 (27.3%) of

respondents asserted that motivation they get from the organization increase
asserted that motivation they get from the organization increase their
productivity of these respondents 40 (27.71) Agreed that the motivation from
their organization increase their productivity. From the above figure it is
evident that motivation from the organization is unable to increase employee
productivity.

4.6. Work environments and Facilities

An organization’s work environment includes its location, site, building

facilities, cafeterias. Those work environments affect workers either positively
of negatively.
 Table 6: working conditions and facilities

No Items Number of %
Respondents
1 Do you have good Relationship with your workmates?
a. Yes 55 100
b. No - -
c. I do not know - -
Total 55 100
2 If your answer to the above question is yes, does that
motivate you to perform your job well?
a. Yes 55 100
b. No - -
c. Some extent - -
d. I do not know - -
Total 55 100
3 How much do you satisfied with your work environment?
a. Very Much 12 21.8
b. Some What 33 60
c. Does not satisfy me 10 18.2
Total 55 100

Good employee relation is one of work environments questions was forwarded

to employees to investigate their relationship with work mates.

All of the respondents indicated that they have good relationship with their
peers. If workers have good relationship with each other, they can cooperate
on works and may higher performance. The respondents all together said that
good relationships motives them to accomplish their job well employees were
asked to give their opinion on how much they are satisfied with the existing
company is working environments, 12(21.8%) said that they are very much
satisfied 33(60%) said they are somewhat satisfied and with the reaming
10(13.2) said they not satisfied with the working environments, from this one
can conclude that MOHA’S work environments are fairly satisfactory for
employees to perform their job in well manner and to have smooth relationship
with the organizational communities.

4.7. Effectiveness of Motivation Practices of MOHA

When one policy is adopted, it should be followed up and measured for its
effectiveness, it is in effective, it may subject to revision and improvement. In
this last section of data presentation the research tries to evaluate whether the
motivation policies of the company (MOHA) has attained the intended results or
not.

Table 7: effectiveness of Motivation in MOHA

No Items Number of %
Respondents
1 Is motivation practice from your organization
enough?
a. Yes 20 36.4
b. No 29 52.7
c. No Answer 6 10.9
Total 55 100
2 Rate your absence from working area?
a. Always - -
b. Usually - -
c. Some times 36 65.5
d. Not at all 19 34.5
Total 55 100
 3 Reason for your absence or lateness?
a. Dissatisfaction with the job 8 14.5
b. Dissatisfaction with the boss - 7
c. Personal Problems 40 72.7
d. I do not know 7 12.7
Total 55 100

According to item of Table 7, 36.4% (20) of respondents admitted that the

motivation they receive MOHA is enough. On the other hand 52.7% (29) of the
respondents agree on the insufficiency of the motivation and the rest 10.9(6)
did not want to say and thing about this implies that MOHA does not have
sufficient motivational practices that is a major contribution to succession of
each and every workers. Employees save answer to the question presented to
them regarding absenteeism or lateness from work of all the respondents
36(65.5%) said they are sometimes late or absent, 19(52.7%) asserted that they
are never late or absent at all this indicated that absenteeism is minimal in
HOHA. Here one may ask absenteeism could be less while there is no enough
motivation in the company.
The possible answers could be there are other factors such as rules and
regulations and possibly self-discipline of worker themselves and so on. The
employees also respondents to the question which asks about the reason for
their lateness or absence, out of these respondents 8(14.5%) indicated that
dissatisfaction with their job, 40(72.7%) said the reasons are their own
personal problems, 7 (12.7%) indicated that they do not know the reason.
None of the respondents indicated that reason to be dissatisfaction with their
boss. This indicates their boss is flexible, open-minded, and a boss wants to
satisfy by the quality products.
 4.8. Data analysis through Interviews
Q. 1. Is there good relationship between management and employees in this
organization?
According to the above question, the managers said that the employee has good
relationship with the management of the organization by freely participating in
decision making to solve organizational problem.
Some of the issues that need a relationship between employees and
management of the organization are:
 To improve quality, quantity and the price of the product
 Decision making on employees conflict
 Decision making on employees lateness from organization
Q.2. How does your organization motivate employees?
According to the respondent, organizations motivate employees by:
Giving bonus and Fringes benefit
Allowing permission who have special case to absent
Giving training and share experience to the other employees of the
organization.
Q. 3. Is there any change in the way employees are motivated?
According to respondents, they said “Yes” the employees were changed
themselves from motivational practices like: self confidence, self
competence, create harmony relation organization.
Q. 4. Do you think that the leadership style of the organization motivate
employees?
According to the above question, manager’s said that the organization motivate
employees through democratic type of leadership. The manger doing work
through sociability to workers, work division to workers the well designed
decision making process, morale courage and integrity flexibility and emotional
stability.
Q. 5. Is there any relationship between employee’s motivation and their
productivity? According to the manager’s they said “Yes” because if employees
are highly motivated they perform their tasks in well and proper manner, it
avoids their carelessness to the job, It increases relationship among employees
which helps to create co-operative effort these factors directly of indirectly
increase the productivity of employees.
 CHAPTER FIVE
CONCLUSSION AND RECOMMENDATION
5.1. CONCLUSSION
This study was conducted in MOHA soft drink Share Company of Gondar
Branch. It is one of the known soft drink company in Ethiopia, located in
central part of Gondar town. Currently the company produces Pepsi, Merinda
and 7UP & Water. This Company aimed to maximize their profit by producing
qualified product.
In general the researcher put the following as a finding of the study.
 Salary is among the best satisfying elements; no other element can
satisfy the employees like that of salary as it is the main component of
employee income. According to the response from the respondents, the
substantial number of employees indicated that the current salary scale
does not motivate them.
 As per the response of many numbers of employees, the workers are not
equally compensated even though they have the same experience and
qualification. Such difference might be related to bias by the
management as regard to age, friends, family members who have
contributed a lot for employee’s motivation.
 Effective manager has needed to exert his/her effort to increase
motivation and productivity of employees.
 The criterion set by the company for performance appraisal, which is
designed to evaluate employees performance has its own problem on
employee’s motivation according to the responses of employees. The
majority of the respondents replied that they are not fairly evaluated, i.e.
the existing performance appraisal lacks transparency. To the contrary,
employees are optimistic towards the purpose of employee’s evaluation
and they also indicated that performance appraisal results are conveyed
to them.
 According to the respondents the motivational practice is not sufficient
to employees. Because it is depends on the age family and friends. As
per the response of many numbers of employees, the workers are not
equally motivational practices even though they have the some work
experience and responsibility to the organizations.
 As a respondent the leadership style of company is very well, sociable to
workers, work division to workers and active participation in activity of
productivity and satisfaction of subordinates.
 Also the role motivation according to the respondents it helps the
employees to increase their skills and refreshers learnt skills. At the
same time it is creates an opportunity for employees to know each other
as we as to share experiences. On the other hand, promotion develops
on employees the sense of importance and accomplishing takes that
require greater knowledge and responsibility.
 According to the manager the employees motivated by giving bonus and
giving training and share experience to the other employees of the
organization. Though, there exists written performances appraisal
criterion, the employees claimed that the management is not
appropriately manipulate or utilize it.
 MOHA has good employee relations and self motivated workers who are
not absent from work unless they are forced by personal problems. This
may be the reason for the companies’ competitiveness.
 Regarding the work environment, the majorities are not happy with the
current working environment. From the responses of employees it is
evident that the benefits they receive from the company affect their
performance to increase productivity.
 As per the respondents reaction, the motivations they receive from the
company is not enough to them.
5.2. RECOMMENDATIONS
To motivate employees for better productivity:
 MOHA should improve the salaries of its workers.
 The company should also implement fully its motivational polices
regarding performance appraisal results to the workers.
 The company also expected to compensate employees according to their
performances.
 Many numbers of employees have comments about the validity of
performance appraisal criterion. Hence the management should review
and check whether the criterions are valid and consistent.
 A manager of MOHA should give training and share experience to the
other employees sufficiently.
 Working environment also needs attention as it can greatly affect
employee’s productivity.
 Finally, MOHA is recommended to increase the level of material supply
which are meant for production and safety of the employees.
 Also the company should be advised to formulate well strengthen
research and development department to improve its out put (product).
 GONDAR UNIVERSITY
COLLAGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF MANAGEMENT
Dear Respondents:
The purpose of this questioner is to conduct a research on motivational practices of
desire MOHA soft share company drinks industry and it’s impact on productivity.
Your responses are very much important for the success of the study and you are
expected to be confidential. You are kindly requested to fill the questionnaires.
Notice: Please you do not write your name & address.
Instruction: Answer the following questions by making (x) on the space provide.
Thank you!
I. Questioner Related to Back ground of the Study
1. Age Range
a. 20-29 c. 40-49
b. 30-39 d. 50-59
2. Sex
a. Male b. Female
3. Educational Level
a. 12 complete d. Degree
b. Under 12 e. Master
c. Diploma
4. Salary Scale
a. 150-400 birr d. 736-1000
b. 401-600 Birr e. 1000+
c. 601-735
5. Service Year
a. 1-5 year c. 11-20 year
b. 6-10 year d. 21+ year
II. Questioner Related to the Study
1. Have you ever felt a happy because of your salary?
a. Yes
b. No
c. I don’t know
2. When you compared with employees of equal education level and service year,
your salary is
a. Higher
b. Equal
c. Lower
3. Do you have good relationship with your workmates?
a. Yes
b. No
c. I don’t know
4. If your answer to question 3 is years, does relationship motivate you to perform
your job well?
a. Yes
b. No
c. I don’t know
5. Do the benefits you get from the organization motivate you for better
performance?
a. Yes c. To some extent
b. No d. I don’t know
6. If your skills much with the job requirement?
a. Yes
b. No
c. No Sure
7. Are you willing to take jobs requiring different skills?
a. Yes c. To some extent
b. No d. I don’t know
8. Are you willing to take additional responsibility out salary increment?
a. Yes
b. No
c. No sure
9. Rate your absence from working area?
a. Always
b. Some times
c. Not at all
10.If your answer for the above questions is “A’ or ‘B” in the care of what?
a. Dissatisfaction with the job c. Personnel Problems
b. Dissatisfaction with the boss d. I don’t know
11.How much you get satisfied with following things?
Very Much Some what Does not satisfy me
You’re Salary

Promotion

Work environment

With peers

With superior

Fringe Benefits

12.Do you think that motivation from your organization increase your
productivity?
a. Yes c. Some what
b. No d. I don’t know
13.Is motivation in your organization enough?
a. Yes
b. No
c. No Answer
14.Do you believe performance appraisal criterion evaluate work are effectively &
efficiently?
a. Yes
b. No
c. I don’t Know
15.Have you ever taken training?
a. Yes b. No
16.What do you think the reason of employee performance evaluation?
a. For promotion
b. For transfer
c. For punishment
d. To establish good employee motivation
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