Mohammed's Final Resrach Paper

A research paper on effect of motivation on employees performance in case of Holeta Agricultural Research center
CHAPTER-ONE
INTRODUCTION
1.1Background of the study
People are the main resources of any organization. As (Ivancevich, 2007, 231) puts it even
though an organization uses different resources like material, financial and human power
for effective work and achievements of goal, human resource is the most determinant
factor, which serves as an engine to utilize the other resources.
From the previous studies regarding the motivation approach and its impact on various
business dimension it deliberately identified that organization involvement and
commitment can be one of the major factors that might contribute to the overall job
performance of the employees. As (Chugtai, 2008, P: 9) found out motivational approaches
definitely satisfy the needs of the employees and in turn the employees reply on it through
the hard work. Hence, Identifying the need and answering it is the most basic approach of
every organization to earn the organization commitment of the employees
According to (hucznsky, 2001, P: 321) the practice of motivational factors required from an
employer determines the performance of employees and the success and failure of the
organization. He further stated that the relationship between performance and motivation
clearly shows that manager should hire individual who have the ability to do what is
required.
The organization understudy (HARC) have employees who are working in agricultural
research and related activities with different profession and educational background.
Based on the information the student researcher collected through informal
communication with employees of the center during his preliminary survey, the company
is providing motivation for its employees to perform their job effectively.
A research paper on the effect of motivation on employees performance in case of Holeta Agricultural Research Center page 1
However, the survey found out that the effects of motivation on the performance of
employees are questionable in that there were problems on motivating employees to work
their job better.
So, the study tried to assess the impact of motivation on employees’ performance of
Holeta Agricultural Research Center and suggest possible and plausible recommendation
that helps the center in using its employees effectively through improving motivational
activities of the center.
1.2 Background of the organization

Holeta agricultural research center (HARC) which is one of the federal research center of
the Ethiopia institute of agricultural research (EAIR), was established in 1966. It is located
34km west of Addis Ababa and situated at an altitude of 2400 meter above sea level, HARC
was basically intended to cater for generating agricultural technology appropriate for
farming system in the mid-to high altitude areas of the country in general. Over the last 45
years of its lifetime, HARC has passed through a number of growth phases. The heart of its
research experiences, however, remained to be associated crops, livestock, natural
resource and socio economic themes. The center has 452 employees both in permanent
and contingent basis with various levels of educational backgrounds (magazine of HARC,
2010-11).
1.3 Statement of the problem

In spite of the fact that an organization has sufficient number of personnel or even excess,
it may not be successful. This can be attributed to a number of reasons; one among the
most important is the absence of motivational structure in the organization that will lead
employees’ unwillingness to work towards the achievement of the organizational goal.
However, if employees are motivated, their work performance in terms of effectiveness
and efficiency increases. (Sheila, 2004, 71).
Employees need motivation to perform their job competitively as students need to study
hard and score good result. So, motivation for any one is an engine to be fruitful for the job
he/she is assigned. Hence, the student researcher was interested to study on this area
since the success or failure of a given organization depends on the active participation and
Performance of the employees who are the most important assets of organization who are
in turn affected by motivation given to them. Moreover, the student researcher’s had
some information from his friends as there are problems related to motivation which need
investigation through conducting research. This is important since there was no research
made in the center regarding motivation as the student researcher made preliminary
investigation in the area through interview.
Therefore, in the organization understudy (HARC), this study attempted to answer the
following basic questions.
1. What are the effects of motivational factors on the work performance of employees?
2. What are the perception of employees of the center on motivational practice and its
effect on employees’ performance?
3. What are the problems related to motivation in the center?
4. What could be done by the center in order to solve problems related to
motivation?
1.4 Objective of the study

1.4.1General objective
The general objective of this study is to assess the effects of motivation on the work
performance of employees and forward some feasible solution that can help the center to
use motivation effectively and efficiently in terms of boosting the performance.
1.4.2 Specific objectives
Specifically the study tried to achieve the following objectives.
1. To identify the effects of motivational factors on the employees work performance
in the center.
2. To assess the perception of employees about motivational practice of by the center

and its effect on the employees performance.
3. To identify problems related with motivation in the center.
4. To forward some recommendation for the center to solve problems related to
motivation.
1.5. Significance of the study

The study will have the following significance.
Based on the research findings, the study provides the center with possible
recommendation to solve problems on the existing motivation activities in the center that
improves employees’ performance other performance determinant factors remain
constant.
The final result of this study may instigate other researchers to do further works in large
scale on the topic in the future in the organization under study or other similar
organizations.
1.6 Scope of the study

There are many factors related to motivation that have effect on performance of
employees. Since studying the effects of all factors on employees’ performance is
unmanageable, the student researcher tried to limit the factors to salary and rewards,
career development, participation and safety and healthy work environment. In addition,
the study is also limited to one company, Holeta Agricultural Research Center due to
limited knowledge, skills and financial resource that the student researcher had.
1.7 Limitation of the study

While conducting this study the student researcher encountered the following limitation.
A. Nine questionnaires were not filled and returned by respondents.
B. Data’s needed for analysis concerning motivation can be gained from responses of
employees using primary data since most of the data are related to attitude of
employees.
Inculcating secondary data in the study boosts the accuracy and completeness of the
result. However, there was difficulty of getting secondary data from the center. Hence,
the student researcher wants to say that if future researchers make the study on the
area using secondary data the result will be more significance, accurate and reliable.
1.8 Organization of the study

The study consists of five chapters. The first chapter includes introduction, background of
the study and the organization, statement of the problem, objective of the study,
significance of the study, limitation, methodology and organization of the study. The
second chapter is about review of related literature, the third chapter deals with analysis
and interpretation of the collected data and the last chapter (chapter five) covers
summary, conclusion and recommendation of the study.
CHAPTER TWO
Review of Literature
2.1 Definition of motivation
The word “motivation” came from the word to motivate in which case to motivate means
to move, to active. In general sense, anything initiates activity whether external or
internal, is motivating. Today the term means a lot more than this motivating is the work
manager performs to inspire, encourage and impel people to take required action. (Rao,
2000, P: 514-515). Some of the widely quoted definitions are given below by different
authors (as cited in Rao, P. 515)
1. Motivation is a predisposition to act in a specific goal directed way S.Zedeck and
M.Blood (1974, as cited in, Rao, 2000)
2. The immediate influence on the direction, vigor and persistent of action Atkinson
(1964,as cited in Rao,2000)
3. Steering one’s action toward certain goals and committing a certain part of one’s
energies to reach them S.W Gallermen, (1963,as cited in ,Rao,2000)
4. How behavior gets started, is energized, is sustained, is directed, is stopped and
what kind of subjective reaction is present in the organism while all this is going on
Jones, (1955,as cited in ,Rao,2000)
Motivation can be defined in a variety of ways depending on whom you ask. If you ask
someone on street, you may get a response like, It’s what drives us “or” motivation is what
makes us do things he do. As far as the formal definition, motivation can be defined as
forces job. An understanding of the concept of motivation is thus essential in order to
comprehend more fully the effect of variations in factor such as leadership, job redesign,
and salary system they relate to performance, satisfaction and forth (Jits Chandan 1994:56)
2.2. Characteristics of motivation

According to Shanks (2007:p.214), motivation is characterized as follows.
1. Motivation is always internal to the person: It is essentially a psychological
phenomenon. In this regard, Berelson and sterner (2003) said that a motive is an inner
state that energizes, activates or moves towards goals.
2. Motivation of a person is in totality and not in part : Human behavior is caused by the
various needs. A worker works in a satisfactory because one needs money. Similarly, a
thirsty man feels the water to conquer his thirst. The feeling of needs is continues process
and the satisfaction of one-need leads to the creation of a new need. All needs are
interrelated and motivation should be in totality.
3. Performance is the result of ability and motivation: if an employee s highly
qualified but is very poor, it can be due to the absence of motivation.
Performance=Ability*motivation
According to Keith and Davies (2003), motivation is essential to the operation of
organizations. No matter how much machinery and equipment an organization has, these
things cannot be put to use until they are released and guided by people who have been so
motivated (ibid). This is the most important characteristics of motivation that this study
tried to see the effect of motivation on employees’ performance.
4. Motivation can be positive or negative: Positive motivation means use of
incentives may be financial and non financial pay revision; confirmation of job and the like
are positive motivators. Negative motivation refers to emphasizing penalties; demotion
and termination from service are some of the example of negative motivation.
5. Frustrated person cannot be motivated: if a person does not have his basic
needs satisfied, he might be frustrated, mentally ill to some extent. Such a frustrated
person cannot be motivated unless his basic needs are satisfied.
2.3 Importance of motivation

Motivation according to (Rao, 2000 P. 517) is the process that influences people to act and
determine the organizational efficiency. He stated that all facilities may go wasted if
employees are not properly motivated. The same author describes as the importance of
motivation can be judged from the following factors:
a. Need satisfaction: Motivation helps in satisfying individual as well as group need
employees. It results in the voluntary co-operation and co-ordination of
employees. In addition the goal of the organization can be easily achieved.
b. Job satisfaction: when employees are properly motivated, they use their skill and
knowledge up to their maximum ability to show better results to the management
c. Productivity: Motivation results in increased productivity since its basic objective is
to achieve the goals to the enterprise and the being motivated workers give their
best performance that helps in increasing the productivity of the organization
d. Acceptance of organizational changes: Technological changes taking place in the
world have brought about revolutionary changes on productivity. Generally,
employees resist these changes but with proper motivation, they accept these
changes, thereby keeping the organization in line with the other competing
concerns.
e. Increasing all round efficiency: The friction between the workers themselves and
between the management and worker is decreased, resulting in an all-round
efficiency. It helps in decreasing the wastages, accidents, complaints and
grievances.
f. Reduction in labor turnover and absenteeism: One of the most important
contributions of motivation is that employees prefer to stay in the organization
there by bringing the labor turnover to the minimum. Similarly, motivated
employees tend to be regular and the problem of absenteeism is minimized.
g. Basis of co-operation: Efficiency and output are increased through cooperation.

The cooperation could not be obtained without motivation; thus, motivation is a
basic of cooperation.
2.4 Types of motivation

Gate wood (1995, p. 376) classified work place motivation in to two ways these are:
1. Intrinsic motivation: it is derived from the content of the job. It is a
motivation created by the worker itself in that what people do satisfy their need
for achievement, recognition, responsibility and personal growth.
2. Extrinsic motivation: this is what is done for people to motivate them. It arises
when management provides such as awards, increased pay, praise or promotion.
Extrinsic motivators can have an immediate effect on performance, but this will
not necessarily last. The intrinsic motivators which are concerned with quality of
working life, are likely to have deeper and longer-term effect because they are
inherent in people and not imposed from outside, although they may be nurtured
b the organization.
2.5 Factors of Employees’ motivation and their effect on employees’

performance
Work motivation strategies employed by managers in an organization are many kinds.
Employee motivation is one of the strategies of managers to enhance effective job
performance among workers in organizations. Louis (1986, p.61), motivation is a basic
psychological process. Motivating is the work managers perform to inspire, encourage and
impel people to take action. To motivate the employee, the employee must be reached; to
reach him there must be a completed understanding of the complexity of his make-up
(Allen, 1986, p.61). From this it is understandable that motivation efforts directed
employees towards improving company operations.
To be effective, however, they must also be designed to show benefits to the employee.
Furthermore, motivation can best be accomplished when workers are able to merge their
personal objective with those of the company.
We cannot say a particular kind of motivator can be used for all the employees in an
organization. Because individual need and want vary depending on many factors (such as
age, sex, education, status background) (Ivancevic, 2007: 308).Hence, the student
researcher discussed the methods of motivation from the same author. There are two
broad means or factors of motivation applied by managers, (Ivancevic 2007: 309) these
are:-Non financial factors of motivation and financial factors of motivation.
2.5.1. Non financial factors of motivation that affect employees’

performance
The followings are non-financial motivational factors:
2.5.1.1. Job Enrichment
Job enrichment occurs when employees are given more responsibility for scheduling,
coordinating, and planning their own works. Although some writers suggest that job
enrichment is any strategy that increase one or more of the core job characteristics,
Hertzberg gain that jobs were riched only through autonomy and the result of
responsibility ( Steven L. and Marty Ann, 2000: 115) viewed in terms of, Hertzberg’s
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 are provided. (ibid).
2.5.1.2. A safety and healthy work Environment
The work environment is comprised of the physical location, equipment, materials

processed or used, and the activities of an employee while engaged in the performance of
his work, whether on or off the railroads property.
There are no stated exclusions of place or circumstance. Work environment is a major

factor in the motivation present in a given situation. Social relationships, creative freedom,
incentive programs and organizational pressures all play a role in workplace motivation.
Because motivation is an essential ingredient in the workplace, understanding the way

these elements affect each individual is a great way to boost motivation and improve
company morale. The work environment can either make people feel good or de motivate
them if it is not satisfactory. Mangers are in an aspiration to ensure safe working
Conditions and build up healthy environment. ( ibid ).
Workplace environment plays a vital role in motivating employees to perform their

assigned work. Since money is not a sufficient motivator in encouraging the workplace
performance required in today’s competitive business environment. Managers and
supervisors will need to be comfortable with working with the whole gamut of workplace
factors that influence employee motivation. Skills required include the ability to engage
employees in mutual goal setting clarify role expectations and provide regular performance
back. Time and energy will also need to be given to providing relevant performance
incentives, managing processes, providing adequate resources and workplace coaching.
Last but not least, to drive their organizations to peak performance managers and
supervisors must put out front the human face of their organization. Paramount here is the
human-to-human interaction through providing individualized support and encouragement
to each and every employee.
2.5.1.3. Career Development

Employee development might be described as a continually process of improving
employees so that they make the fullest possible use of their abilities. This is done by
encouraging self development and training. (Ivancevic, 2007: 310).Career development has
strong implications for both employees and employers in any company.
According to Schultz (1960, p.73), organizations invest in skill development or human

capital when they expect that the value of additional future benefits (such as, greater
Productivity) will offset the extra costs incurred in the present to obtain them (like, costs of
training programs and production forgone while individuals are in training). In fact, the
purpose of career development is to enhance each employee's current performance,
enable employees to take advantage of future job opportunities, and fulfill their
employer's goals of achieving a dynamic and effective workforce.
To put as general, the purpose of career development is to enhance each employee's

current performance, enable employees to take advantage of future job opportunities, and
fulfill their employer's goals of achieving a dynamic and effective workforce.
Goldstein and Gilliam (1990, p.69) point out that training is one area in which human
resource management departments help organizations maintain competitiveness and
prepare for the future. That means training helps to create company-specific human
assets, which are strongly linked to a company's core competencies. Furthermore, more
and more organizations are providing quality management and customer service training in
an attempt to keep up with rising employees’ development opportunities. There is little
doubt there has been a growing recognition during the last decade of the importance of
training and development as a source of sustained competitive advantage particularly as
employers introduce more skills-specific forms of training (Pfeffer, 1998, p.98).
Generally, training and development implies a high level of concern for employees, which
in turn increases identification with their organization. In fact, effective career
development support is important not only for individuals but also for the organizations
that employ them. For both of them it is part of a strategy of achieving flexibility to handle
change more effectively.
2.5.1.4. Employee Involvement
Employee involvement (EI) is the process of developing ‘a feeling of psychological

ownership among organizational members’ and has been implemented through the
participation of employees in information processing, decision-making and/or problem
solving,(Kearney, 1997,p.60). In fact, employee involvement means that every employee is
regarded, as a unique human being not just a component in a machine and each employee
is involved in helping the organization meet its goals. Each employee’s input is solicited and
Valued in employee-management relationship. Employees and management recognize
that each employee is involved in running the business.
Participation is mental and emotional involvement of persons in group situations that

encourage them to contribute to group goals and share responsibly for them. One
important benefit of participation is it motivates. Employees are given opportunity to
release their own sources initiative and creatively toward the objective of the organization
participation specially improve motivation by helping employees understand and clarify
their paths towards goals. The improved understanding of path goals relationships
produces a higher expecting of goal attainment. The result is improved motivation
(Ivancevic, 2007: 311).
2.5.2. Financial factors of motivation that affect employees’ performance

This type of motivation system can be in the form of rewards, bonuses, fringe benefits,
salaries and wages.
2.5.2.1 Rewards
Malhotra (2007:2097) define rewards as ‘all forms of financial return, tangible services and
benefits an employee receives as part of an employment relationship. It is without doubt
that every employee expects some level of reward after delivering a function or task.
Employees expect employers to deliver or execute designated duties to their satisfaction
whilst employees also expect their employers to assure them of adequate wages and
salaries (rewards) after they dutifully deliver what is expected of them. According to the
oxford dictionary; performance, which originates from the word ‘perform’, is to carry out,
accomplish or fulfill an action, task or a function. The reward for executing a task or a
function is what is termed as motivation. Reward systems are clearly related to vroom’s
expectancy theory of motivation financial rewards are fundamental part of the
employment relationship.
Organization distributes money and other benefits in exchange for the employees’
availability, competencies, and behavior, rewards help to individual’s contribution. (ibid)
2.5.2.2. Fringe benefits

Such extra benefits, in addition to the normal wage or salary compensation, are referred to
as fringe benefits. (Ivancevic ,2007: 311). Employee fringe can be grouped into the
following groups.
These are:-
i. Payment without work
ii. Retirement benefits
iii. Safety and health provision: and
iv. Recreation and other benefits.
2.5.2.3. Bonus
Are essentially rewards for success and are paid out as lump sum. This is accomplished
when the organization, individual or team has achieved something out standing or when
organizational performance has exceeded what it has planed. ( ibid).
2.5.2.4 Salaries
Salary is a form of periodic payment from an employer to an employee, which may be
specified in an employment contract. It is contrasted with piece wages, where each job,
hour or other unit is paid separately, rather than on a periodic basis. A wage is
compensation, usually financial, received by workers in exchange for their labor.
Compensation in terms of wages is given to workers and compensation in terms of salary is
given to employees. Compensation is a monetary benefit given to employees in return for

the services provided by them. They are the most determinant factor for employees work
performance because it is the compensation for their effort through some period of time.
The higher the salary the employees expected performance will be. (ibid).
2.6 Motivation and Performance

According to Sheila Rich (2004:233), motivation is essential to the operation of
organizations. No matter how much machinery and equipment an organization has, these
things cannot be put in use until they are released and guided by people who have been so
motivated.
The general picture emerging from the studies is that the effects of motivation on
employees’ performance are dependent on the level of ability of the employee. The effects
of ability to performance are dependent on the motivation of employee. The effects of
ability and motivation and motivation on performance are not additive but interactive. The
data presently available on this question suggests something more closely resembling the
multiplicative relationship depicted in the following formula
Performance= (Ability*motivation)
It follows from such formula that, when ability has low value, increments in motivation will
result in smaller increases in performance that when ability has high value. Furthermore,
when motivation has a low value, increments in ability will result in smaller increases in
performance than when motivation has high value.
The value program of selection and training depends on the organization’s previous
success in creating condition conducive to a high level of individual motivation. Similarly,
and the value of programs designed to motivate employees depends on the skill level of
the employees (Sheila, 2004, p.236).
The same author further described that performance of employees can be explained by
Profitability, Quality, Innovation, Market share, Sales growth and employee satisfaction.
2.7 Rules for effective motivation

According to Sheila (2004, p: 219), the following rules are used by the managers to
effectively motivates the employees.
1. Every individual is different from the other (individual differences respected)

2. Appreciate good work in public and criticize the bad work privately.
3. Give suggestion rather than order.
4. Set good example since subordinates adopt the actions of superiors.
5. Have confidence in the employees’ .i.e. believing the employee can do the work.
6. Encourage participation of subordinates in decision making.
7. Communicate in clear terms.
8. Listen to the subordinates very attentively.
9. Do not keep everything secret as it may induce frustration.
10. Try to get voluntary co-operation from employees.
2.8. Factors That Affect Motivation in the Work Place

According to the scholar (Leigh Goessel, 2001), there are 5 factors that affect the
employees motivation in the work place, these are:
a. Cultural factors
If an organization cultural atmosphere is pledged with negativity this can be disastrous as
once cultural mind set is in place it is difficult to change leaders who invest time and effort
into developing positive working environment often find their employees are happier and
this attributed becomes a part of the company’s culture
b. Environmental condition
Environmental conditions tend to impact motivation in the work place. This includes
temperature, lightening, an ergonomics and tools. The availability of moderate
temperature, lighting, and good arrangement of office materials and different tools
increases the motivation of employees which in turn leads to good performance of work by
employees.
c. Reward
Many organizational studies over the years have suggested reward play a distinct rule in
level of employees’ motivation.
Employees who lack motivation are more likely to be careless and sloppy with their work,
but on the other hand employees who are valued and provided some sort of initiative are
more apt to take pride in their work and strive.
d. Security and Job Advancement
Job security can result in higher motivation. Employees who spend each day working
whether or not they are going to get the exe may become too destructed to be motivated
or could overtake connection abilities. Employees who are able to reasonably reassure
their staff their job will be there next week, next month or event year, or likely to see
stronger motivation. People may also be more willing to work hard if they know there is
room for advancement.
e. Respect
A lack of respect is going to likely result in poor motivation as no one like to be treated
poorly or with disrespect. Staff members who get respect from their bosses will be more
apt to respond and go out of their way to help the organization meet its mission and goals.
2.9 Paying for performance

How much and how employees are compensated for their performance obviously has
some influence on their motivation and effort, but the issue of how much pay motives may
cause problems for managers seeking ways to enhances motivation. Maslow and Herzberg
show that pay (money) enables and employee to satisfy his/her basic needs while Herzberg
Sees money as a maintenance factor that doesn’t necessarily motivate an employee to

perform at higher level, his theory indicates that low or in adequate pay may result in
dissatisfied, unmotivated employees. Equity theory suggests that employees must be paid
at least fairly, that they need to perceive that they are earning what their efforts are worth
(Getewood, etal, 1995, P: 481)
With this in mind, managers can create pay plans that motivate if they:-
 Show employees that good performance leads to high level of pay
 Minimize any negative consequence of good performance
 Create conditions that provide desired rewards other than pay for good
performance So-called merit pay, which rewards employees according to their
performance contributions, is a natural product of expectancy and reinforcement
theories because it links pay increases to work performance (Gatewood etal, 1995,
P: 451)
2.10 Motivating to Accommodate Individual Differences

Individual difference will happen on employees what makes motivate them. For example
some may motivated by good salary (money) but some other will be motivated by
challenging job. Some employees have also been willing to resituate for job security in lie
of in addition according to Stephen (2001, P: 159). Different types of jobs create additional
motivational concerns for employees. For instance, motivating temporary workers is
different from motivating professionals. Below we examine some of unique problems
faces in trying to motivate professional employees, contingent workers, low skilled service
worker (Stephen P, 2001, P: 159)
a. Motivating professionals – what motivates professional? Money and promotion
(extrinsic factor) are low on their priority list. Why? Because they tend to be will
paid and they enjoy what they do. In contrast, job challenger tends to be ranked
high. They like to tackle problems and find solutions. Their chief reward in their job
is the work itself (Stephen, 2001, P:160)
b. Motivating low skilled service workers: Unless pay and benefits are significantly
increased, high dissatisfaction is probably inevitable in these jobs. This can be
somewhat offset by widening the recruiting net, making these jobs more appealing,
and raising pay level. So, trying to understand the needs of these employees might
help motivate them better, (Stephen,2001: 162)
c. Motivating contingent workers: What will motivate involuntary temporary
employees? An obvious answer is the opportunity for permanent status.
d. In those cases where permanent employees are selected from the pool of
temporaries, temporaries will often work hard in hopes of becoming permanents
(Stephen, 2001: 161)
2.11 Theories/Models of Motivation

There are two categories of motivation theories; that is content and process. While
making a distinction between the two, Pluncket (2001, P:415) observed that the content
theories are concerned with identifying the needs, drives that people have and how these
needs or drives are prioritized. The process theories, on the other hand, are more
concerned with cognitive antecedents that lead to motivation or effort and, more
important, with the way they relate to one another. The same author described it as
follows.
2.11.1 Content Theories of Motivation

Content theories of motivation attempt to explain and describe factors within the person
that energize, direct, sustain and stop behavior. Plunket (2001, p: 416) discussed the major
content theories of motivation as follows.
2.11.1.1 Maslow’s theory of Human Motivation
Abraham Maslow, a famous social scientist and psychologist, developed a theory of

motivation, which is based on the hierarchy of needs. According to Maslow, there are five
kinds of needs: Physiological, safety, social, esteem and self-actualization. Maslow’s need
hierarchy concepts consists of five levels of human needs arranged in an ascending order
(Plunket, 2001, P: 416) as shown in the figure below
Source: www.web-books.com/eLibrary/NC/B0/B661057MB66.html
Figure 1: Maslow’s hierarchy of needs for motivation
a. Physiological needs: they refer to those needs, which are so essential that the
survival of human beings will be in danger if these needs are not satisfied.
Examples are food, shelter, clothing, water, sleep etc. These needs are biological in
nature and keep the body fit.
b. Safety needs: After the physiological needs are satisfied to a reasonable degree, the
safety needs take the place. Examples can be security of job, pension for old age,
insurance plan, compensation for lay off or retrenchment.
c. Social needs: Such needs include needs for love, affection, friendship, and
acceptance by group etc. A man is a social being and he has a need to love and to
be loved.
d. Esteem needs: These needs are concerned with one’s self-esteem such as self
respect, self confidence, status recognition, approval, appreciation etc
e. 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.
2.11.1.2 Hertzberg’s two-factor theory

In the late 1950s', Fredrick Hertzberg and his associates conducted a study of the job
attitudes of 200 engineers and accountants, and developed the two-factor theory
popularly known as motivational –hygiene theory, to see in detail.
2.11.1.2.1 Hygiene factor (Maintenance factor)
Hygiene factors are called extrinsic factors such as interpersonal relations with supervisors,
salary, security, working conditions and status. They do not motivate the satisfaction
although they result in job satisfaction.
Thus, the absence of extrinsic factors causes dissatisfaction among the employees. They
are called extrinsic factors because they are considered outside the work being
performance such hygiene factors, if not satisfied had an effect of reduced employee
efficiency (Plunket, 2001, P: 419) .
2.11.1.2.2 Motivation factors
According to Herzberg, motivation factors are the primary cause of job satisfaction. They
are intrinsic to a job and relate directly to the real nature of the work people perform. In
other words, motivational factors relate to job content. When an employer fails to provide
motivation factors, employees’ experience, employees enjoy job satisfaction and provide
high performance. (Plunket et al, 2001, P: 421), the same author discussed each factors as
follows.
Achievement: The opportunity to accomplish something or contribute something of value
conserve as source of job satisfaction.
Recognition: The wise manager let the employees know that their efforts have been worth
while and the management notes appreciates them.
Responsibility: The potential for acquiring new duties and responsibilities, either through
job expansion or delegation, can be a powerful motivation for some workers.
Advancement: The opportunities to improve one’s position as a result of job performance
gives employees a clear reason for high performances.
The work itself: when a task on opportunity for self expression, personal satisfaction, and
meaningful challenge, employees is likely to undertake the task with enthusiasm.
Possibility of growth: The opportunity to increase knowledge and personal likely to lead
job satisfaction (motivation) results in good work performance
In brief, Herzberg’s theory lays down that:
 The absence of first set of factors led to dissatisfaction although they are not
motivational factors. They are referred as extrinsic as they come outside the
person.
 The second set of factor lead to satisfaction and are termed as motivational factors
or intrinsic factors.
 Herzberg’s approach to motivation is based upon the fact that the country is rich.
 According to this theory, money is not motivational factor as it has been included in
the hygiene factors. This theory cannot be applied to poor or developing countries
where money is still a great motivator.
2.11.2 Process Theories of Motivation
While needs theories address the different needs that individuals have that could be used
for motivational purposes, process theories focus on the boarder picture of how someone
can set about motivating another individual. Written the process theories, we cover
expectancy theory and equity theory (Stephen et al, 2001, P: 144) as follows:
2.11.2.1 Expectancy Theories
From a practical perspective, expectancy theory say that an employee will be motivated to
exert a high level of effort when he or she believes that effort will lead to a good
performance; that a good performance will lead to organizational rewards, such as a
bonus, salary increase, or a promotion; and that the rewards will satisfy the employees
personal goals. (Ibid ). The theory, therefore focus on the relationships these are
a. Effort-performance relationship (expectancy)
The probability perceived by the individual that exerting a given amount of effort will lead
to performance. Employees are sometimes asked to do things for which they do not have
the appropriate skills or training. When that is the case, they will be less motivated to try
hard, because they already believe that they will not be able to accomplish the task that is
expected of them (Ibid)
a. Performance reward relationship (instrumentality)
The degree to which the individual believes that performing at a particular level will lead to
the attainment of a desired outcome. So, one possible source of low employee motivation
is the belief of the employee, that no matter how hard he or she works, the likelihood of
one’s performance recognized is low (Stephen etal, 2001, P:145)
b. Rewards –Personal goals relationship (Valence)
(Stephen 2005) this rewards personal goals as the degree to which organizational rewards
satisfy individual personal goals or needs and the attractiveness of those potential rewards
for the individual.
Table 1, Steps to increase motivation, using expectancy theory
Adopted from (Stephen etal, 2001, P: 146)
Expectancy theory relationship What mangers can do
Effort-performance relationship • Make sure that employees have the skills

(expectancy) required to do the task assigned
• Provide training
• Assign reasonable tasks and goals
Performance-reward relationship • Be sure to actually observe or recognize
(instrumentality) performance
• Be sure to deliver reward as promised
Rewards-Personal goals relation ship • Determine from employees what kinds of
rewards they value
• Be sure that the reward given is things
that are valued.
2.11.1.2 Equity theory

Equity theory is based on the assumption that a major factor in job motivation is the
individual’s evaluation of the equity or fairness of the reward received. Equity can be
defined as a ratio between the individual’s job inputs (such as effort or skill) and job
rewards (such as pay or promotion). According to equity theory individuals are motivated
When they experience satisfaction with what they receive from an effort in proportion to
the effort they apply. People judge the equity of their rewards by comparing either to the
rewards others are receiving for similar input or to some other effort/reward ratio that
occurs to them. (Stephen, 2001: 168)
He further stated that though equity theory emphasizes that employees are motivated by
absolute rewards end the relative rewards n the system. So, the manager should make
conscious efforts to establish and maintain equity in the work place.
From the above it is clear that various theorists have attempted to explain the issue of
motivation from different points of view. One recurring issue is that everyone is motivated
by one force or the other. This force is intrinsically related to their own desires to achieve
various achieve goals. Motivation is thus the means through which people achieve
performance and are all routed in the cognitive processes of what is expected, valued, and
received. For managers to motivate employees therefore there is the need to understand
these processes in order to come up with appropriate reward programs for effective
motivation.
2.12 Empirical descriptions

Various studies have been done to see the effect of the use of rewards as motivation for
employee performance. While some of the studies indicate that the use of rewards as
motivation enhances employee performance, others note that rewards do not motivate.
We describe some of these research findings in this chapter.
In a recent study by Veling and Arts, the authors aimed at examining ‘whether monetary
rewards can reduce failures to act on cued task goal’ (2010:188). With a research sample
comprising of thirty-six (36) undergraduates, the authors experimented to see how quick
their respondents reacted to specific tasks when given a range of monetary rewards
ranging from low to high rewards. The studies found out that giving relatively high
monetary rewards, led to ‘overall faster responses’ to the specific tasks given to
respondents. The authors noted that respondents overall fast response to task was
positively correlated to the high rewards given them. Conversely, the authors also noted
that when rewards were on the low side, respondents either slacked or showed little in the
task at hand. Their finding is consistent with other studies which noted that relatively high
monetary rewards may function as a catalyst for enhanced effort or determination by
employees to perform well (Bijleveld et al. 2009, Locke and Braver 2008, Waugh and Gotlib
2008).
In a meta-analysis of seventy-two field studies, Stajkovic and Luthans (2003) found that the
use of monetary rewards by organizations led to a 23% improved performance while social
recognition and the giving of feedback improved task performance by 17% and 10%
respectively. The authors however noted that when all three forms of incentives were
combined, it led to a 45% improvement in task performance. They thus concluded that
financial incentives or rewards only improve task performance moderately to a significant
level. The effectiveness of the use of monetary rewards is thus contingent on the
conditions which pertain in the organization in question.
A second meta-analysis by Stajkovic and Luthans (2003) focused only on manufacturing

and service industries. The authors noted that the use of financial incentives or rewards
generally led to improved performance in manufacturing industries than the service ones.
Significantly, their findings suggest that a combination of financial, nonfinancial, and social
rewards produced the greatest effect in task performance
Another meta-analysis of 39 studies done by Jenkins et al. (1998) focused specifically on

college students.
Here, the authors were interested in the effect of the use of financial rewards on the
quality and quantity of performance. The study noted that the use of financial rewards is
positively related to the quantity of performance but not its quality.
2.13 Summary
In this chapter, we have looked a few empirical works on the use of different motivational
schemes as motivation for improved performance. Peculiar to the various studies is the
fact that motivating employees requires a clear understanding of individuals and group
processes as well as the need for any kinds of motivation program to be contextualized and
not done in isolation. From the above it is clear that various theorists have attempted to
explain the issue of motivation from different points of view. One recurring issue is that
everyone is motivated by one force or the other. This force is intrinsically related to their
own desires to achieve various achieve goals. Motivation is thus the means through which
people achieve performance and are all routed in the cognitive processes of what is
expected, valued, and received. For managers to motivate employees therefore there is
the need to understand these processes in order to come up with appropriate reward
programs for effective motivation.
CHAPTER THREE
3. Methodology of the Study
In order to identify the existing problems of the organization under study, the following
methods have been used.
3.1 Types and Sources of data
In this study, both primary and secondary data were collected from primary and secondary
sources. The primary sources of data were employees and management bodies of the
center. Secondary sources were published books, internet (web pages) and magazines of
the organization.
3.2 Data collection method
Before collecting data through data collection tools, the student researcher made an
observation in the center. This observation helped the researcher to have more insight and
observations to the environment. In additions to this, it arranged a friendly atmosphere
along with respondents. Primary data was collected by distributing scheduled
questionnaire in which both closed and open ended types of questions are found.
Additionally, semi structured interview was conducted with human resource manager of
HARC with the aim of gathering information related with motivational practice in the
center. Review of books, magazines, and browsing of in ternate was made to gather
secondary data.
3.3 Population and Sample size
The total number of employees in the center was 452; from this 38 employees were not
permanent. So the student researcher excluded them because they may not be sufficient
knowledge on the effect of motivation on employees’ work performance. Hence, the
researcher took 84 (20.2%) sample respondents from the sample frame of 414 employees.
Sample Size Determination Formula:
n =106
Description:
N= is the population size

n = required sample size
z = confidence level at 95% (standard value of 1.96)
E = margin of error at 5% (standard value of 0.05)
p =population proportion at which the sample size is maximum (at p=0.5 and q=0.5,
p*q=0.25) Where q=1-p
To check the finite population correction (FPC) the researcher divides the determined
sample size to the population. If the result is greater than 5% (i.e. n/N>5%N), FPC used to
adjust the final sample size unless the required sample size can be accepted as it is.
FPC formula: Where c=n/N and nf =final sample size
Since c is greater than 5% (c>5%N), FPC formula must be used
Hence, final sample size (nf) is 84 Target population=414 employees
 Sample size of the first strata (employees in different managerial level):
63emplyees*20.2=13 samples are selected.

 Sample size of the second strata(non-manager employees):
351 employees*20.22=71 samples are selected.
3.4 Sampling technique

According to Kumar (2005, p.164) sampling can be defined as, the process of selecting a
few (a sample) from large group (the sampling population) to become the basis for
estimating or predicating the prevalence of an unknown piece of information, situation or
outcome regarding the large group. At least, the sampling technique to be used
encompasses the followings.
A. Sampling Units: - Accordingly, in this study, the element and sampling unit is being the
same and then the information was collected from managers and non managers.
B. Sampling Frame: - In the study two sampling frame set. That is, list of managerial and
non-managerial (subordinates) was used.
C. Sampling Design: It describes the procedure by which sample is selected.

For the study probability sampling technique was used since different effects of the various
types of motivation on employees’ satisfaction and performance are seen for employees
with different positions in the center. The student researcher took stratified random
sampling technique. The criterion for creation of strata was position level. Two strata
namely managers (top-level, middle level and lower level of management) and non-
managers had been used.
3.5 Data analysis
In order to arrange the gaps which were made by the respondents, while responding the
questionnaires, a kind of adjustment was taken place through: Coding, categorizing and
recording the data in a convenient way Analysis of data was depends on the information
gathered from different sources. Tables are used for presentation of data, and
interpretation is made under each table through descriptive method due to qualitative
nature of the data. Based on this analysis and interpretation, the researcher has made
conclusion and recommendations.
CHAPTER FOUR
4. Data Presentation and Analysis
This part of the study presents analysis and interpretation of data collected through
questionnaire from sample employees of Holeta Agricultural research center (HARC) and
interview results from human resource manager of the center.
From the total 84 questionnaires that are distributed to the selected sample employees’
respondents only 75 are returned back. So, the analysis based on the questionnaires data
was from 75 respondents. Hence, the information obtained from the sample employees
was the basis for the analysis of motivational tools and techniques and its effects on
employees performance.
The data is presented in tables and pie charts. Qualitative data analysis is the method for
the data analysis and the data which is collected from the sample respondents are
interpreted according to the data from tables.
4.1 Respondents’ Demographic Information

The first part of the questionnaire deals with the biographical information of the
respondents and the following table illustrate the responses for each question
Table 2, Employees personal information

No Item Response Number of Percentage
respondents (%)
A Age 20-29 years 27 36
30-39 “ 30 40
40-49 “ 15 20
50 -59 “ 3 4
Above 60 years - -
Total 75 100
B Sex Male 44 58.6
Female 31 41.4
Total 75 100
C Educational level Below Grade 12 3 4
Grade 12 complete 6 8
Certificate 9 12
Diploma 14 18.65
First degree 22 29.65
Maser 17 22.65
PhD 4 5.35
Total 75 100
D Job-title Researcher 25 33.33
Technical Assistant 21 28
Administrative employee 14 18.67
Field assistant 15 20
Total 75 100
E Work Below 5 year 22 29.35
Experience 6 – 10 16 21.35
11 – 15 14 18.65
16 -20 14 18.65
Above 20 years 9 12
Total 75 100
Source: filled questionnaire (Primary data)

As can be seen from the above table considering the age (refer item A of table 2 ) 40% of the
respondents were between 30 -39 years, 36% were between 20-29 years, 20% were
between 40 -49 years, the remaining 4% were between 50-59 years old. From this it can be
concluded that most (76%) employees of the center were 20-39 years old, this may
indicate that the employees of the center were at the productive age that may have the
motive to perform their work effectively if they are motivated.
When we see the sex composition of the respondents (refer item B of table 2), the males
account for 58.6% and the rest 41.4% were females. This clearly shows that the number of
males and females do not have significant difference. So the females’ participation in the
center may motivate themselves as they can do what the males does and it may even
inspire those females outside the center.
As with the educational level of the respondents (refer item C of table 2), 29.65% of them
were first degree holders on different field of specialization, 22.65% graduated with master
degree, 18.65% were diploma holders. 8% and 12% of the respondents’ educational status
were grade 12 complete and certificate holders respectively. 5.3% were diploma holders
and the remaining 4% only accounted by respondent below 12 grade. So, this educational
composition of the employees enables the center to engage in research activities well since
most of the employees had degree which is important to conduct a research in the center
according to semi structured interview with manager of the center. And those who have
diploma, certificate and below may be motivated to learn and upgrade on their profession
which creates competition among these employees to be good performers if the center
provides motivation based on employees performance and types and level of work.
As far as the position (Job title) of the respondents is concerned, as can be seen in table 2
of item D, 33.35% of the respondents were researchers, 28% were technical assistant, 20%
were field assistant and the remaining 18.67% were administrative employees in Holeta
Agricultural research center. Hence, the researchers comparatively contain larger
proportion in the center. They may be motivated by the responsibility they are assigned
and by different motivation techniques which may create inspiration to compete each
other within the company in discovering something new with good performance since
there is motivation based on performance as witnessed by managers on semi structured

interview.
Regarding the experience of the employees in the center (refer item E of table 2) 29.35%
of the respondents had 5 years or less work experience, 21.35% had a working experience
that ranges between 6 -10 years. The respondents that had a work experience of 11-15 and
16 – 20 years account for the same percentage (18.65%). The remaining 12% had a job
experience above 20 years. So, from this finding it can be concluded that majority of the
employees of HARC had a work experience that lies between 1 -5 years. This indicates that
most of the staff was less experienced which in turn implies that they need training and
development program that increases employees’ motivation which further increases their
performance. (K.prased 2005; 252) witnessed this as employee development might be
described as a continually process of improving employees so that they will be motivated
and make the fullest possible use of their abilities. This is done by encouraging self
development and training.
4.2 Motivation and Its Effects on Performance of Employees

Many authors wrote more about the motivation and its effect on employees’ performance.
To mention (Gate wood 1995, p.491) describe it as motivation is the force that makes us do
things and this is a result of our individual need being satisfied so that we have inspiration
to complete the task. In line with this the sample respondents were asked whether
motivation on the workplace has an effect on their performance or not since motivation
has different factors that it can be explained by as shown in the literature review part.
Some of the factors stated by (Ivancevic, 1990: p.308) and are used for the study as stated
in the scope of the study are salary and reward, career development, participation and
safety and healthy work environment.
4.2.1 Salary and its effect on performance of employees
Salary is the most important compensation given to employees by the organization they
are employed.
It has direct impact on performance of employees as stated by (Daval, 1999: p.237-238)

Organization distributes money and other benefits in exchange for the employees’
availability, competencies, and behavior, rewards which help to individual’s contribution.
Here under is the data collected from employees concerning salary of employees.
Table 3, response of the respondents about salary issues in HARC
No of Percentage
ITEM responses
respondent (%)
A. Income level of the Below 500 3 4
Respondents 501- 1000 9 12
1001 – 2000 22 29.33
2001- 5000 41 54.67
Above 5000 0 0
Total 75 100
B. The salary level is: Very unsatisfactory 2 2.67
Unsatisfactory 46 61.33
Satisfactory 25 33.33
Very satisfactory 2 2.67
Total 75 100
C. Increase in salary boosts high 44 58.67
you performance level medium 21 28.00
low 10 13.37
Total 75 100
Source: Filled questionnaire (Primary data)
As it is depicted in the above table 3 of item A respondents were asked about their income
level. As a result, majority of the respondents (54.67%) received salary of 2001 to 5000
Birr per month, 29.33% of the respondents received salary level of 1001 to 2000 Birr, 12%
of the respondents earned birr 501 to 1000 Birr, and only 4% of the respondents received
the 500 and below.
Hence, majority of employees of the company earn salary level of 2001- 5000.
Respondents were asked about the level of satisfaction with their salary (refer Item B of
table 3). 61.33% of the respondents said their salary is unsatisfactory while 33.33% were
said satisfactory. The response for “very satisfactory” and “very unsatisfactory’ towards
their salary level constitutes the same percentage (2.67%). From the response it can be
generalized that employees were not satisfied by the amount of salary they received.
Concerning the level of effect on employees’ performance due to increase in salary,
58.67% of the respondents answered high, 28% of them responded medium and the rest
13.37% of the respondents replied low. Hence, the increase in salary of employees of the
center boosts the performance of employees of the center.
Having the above two description the researcher can conclude that employees’ salary of
the center had an impact on their performance. That means, if they are well paid they can
perform better if not their level of performance declines. But employees were not satisfied
by their salary which is one problem that deters the center’s performance. Hence, the
center is advised to give due concern for the problem and take corrective action
considering corrective points like those which are given in the recommendation part of
this study.
Additionally, the human resource manager of HARC was asked about the employees’ salary
level and life expensiveness in relation to employees’ performance. According to the
manger’s response, the salary is paid according to the salary scale but not satisfactory
which has a negative effect on the performance of employees. However, the manager
replied as there would be increment of salary to all employees regarding the situation
since this interview was conducted before the official announcement of salary increment
nationally.
4.2.2 Reward/Incentive system and its effect on performance of employees
The idea that deals with the different organizations reward system is a significant
situational factor that influences employees–management relationship that has long been
accepted in the motivation literature (Wiersma, 1992, cited in Wiley, 1997, p.67).In general
fact, employees have needs that they want to meet, employers have goals that they need
to reach, and they can work together as a team to satisfy the wants of both the employees
and their employer. Workers who are fairly rewarded help to reach the goal of the
employer that has direct or immediate connection with the performance of employees.
The following table shows whether the employees were fairly rewarded in the center or
not.
Table 4 Employees perception about fairness of reward
No of Percentage Total
ITEM responses
respondents (%) Percent
1. Employees are fairly strongly disagree 8 10.66
rewarded disagree 29 38.66 49.32
Neutral 12 16 16
agree 19 25.34
Strongly agree 7 9.34 34.68
total 75 100 100
2.The center have used strongly disagree 21 28
monetary incentives to disagree 18 24 52
motivate their employees Neutral 13 17.34 17.34
agree 15 20
total 75 100 100
3 The pay matches my strongly disagree 18 24
responsibility disagree 32 42.67 66.67

Neutral 10 13.34 13.34
agree 11 14.66
total 75 100 100

As the above table depicts 49.32% of the sample respondents responded that employees
were not fairly rewarded in this center even though 34.68% replied positively. This reflects
that majority of the employees in the center under study have negative attitude toward
fairness of the reward system of the center.
This finding contradicts previous researches and theories. Accordingly, Mercer (2003, p.34)
wrote employees will be more productive if they are fairly rewarded. It is possible to
conclude as employees tend to remain with their organization when they feel their
capabilities, efforts and performance contributions are recognized and appreciated and
perform better.
One of the responsibilities of management is creating extrinsic rewards such as monetary

incentives to increase productivity as well as employee-management relationship. The
above table, item number 2 deals with the response of employees with related to the
existence of monetary incentives to motivate employees in Holeta Agricultural Research
Center.
The table depicts as 52% of sample respondents replied there is no monetary incentives in
the center. But 30.66% of the respondents completely agreed with managers’ use
monetary incentives to motivate their employees. Here majority of the respondents
assured that the center did not use monetary incentives to motivate employees for better
performance.
The above results disagree with (Eisenberger et al.; 1992, p.50) has shown that a
company’s reward system plays a critical role in motivating employees to perform
creatively. As an effort to stimulate employees’ creativity, many managers have used
extrinsic rewards (such as, monetary incentives and recognition) to motivate their
employees (Fairbanks et al.; 2001, p.231). Reporters in the field have shown that rewards,
particularly extrinsic rewards are powerful factors pushing motivation and boosting
employees’ performance Taylor (1967, cited in Wiley, 1997, p.57). From this it is possible
to conclude that if the center keeps its program simple with the main objective to benefit
employees (like with monetary reward, salary increment) it helps to increase employees’
work performance.
Concerning the last item of the table, 66.67% of the sample employees replied that the pay
given to employees of the center does not match with the responsibility and amount of
work performed by employees. Only 19.99% of the employees responded the reverse in
that the pay system is proportional to the responsibility of the employees. Thus, it can be
inferred from the sample respondents’ response that center’s employees performance was
affected due to the mismatch of payment given to them and their responsibility (type and
amount work they do). Since employees feel dissatisfied if the payment they receive is not
based on their effort.
4.2.3 Career development and its effect on employees’ performance

Career development has strong implications for both employees and employers in any
company. According to Schultz (1960, p.73), organizations invest in skill development or
human capital when they expect that the value of additional future benefits (such as,
greater Productivity) will offset the extra costs incurred in the present to obtain them (like,
costs of training programs and production forgone while individuals are in training). In fact,
the purpose of career development is to enhance each employee's current performance,
enable employees to take advantage of future job opportunities, and fulfill their
employer's goals of achieving a dynamic and effective workforce.
The following table summarizes the response of respondents whether the center help their
employee to develop their skill and potential or not.
Table 5.Career Development opportunities in the center

response Number
the of Percentage (%) Total
Item respondents
Strongly disagree
1. The center exerts an effort to 11 14.67 65.34
Disagree 38 50.67
develop the skills and potential of
its employees. Neutral 3 4 4
Agree 23 30.66 30.66
Strongly agree 0 -
total 75 100 100
Strongly disagree
2. The center has career 24 32 60
Disagree
development plan for the 21 28
employees Neutral 5 6.67 6.67
Agree 19 25.33 33.33
Strongly agree 6 8
total 75 100 100
As table above shows, 30.66% of sample respondents replied that center help their team
members to develop their skills and potential but 65.34% of them said the center do not
help them. The response implies that the center gives little attention for the development
of skills and potential of employees by giving training, development which helps them
increase their ability and confidence. This disagrees with many theoretical aspects. As per
Gomez et al.; (1995, p.234) stated career development provides employees with abilities
that the organization will need in the future. In similar way Goldstein and Gilliam (1990,
p.69) point out that training is one area in which human resource management
departments help organizations maintain competitiveness and prepare for the future. In
short, training helps to create center’s specific human assets, which are strongly linked to
its core competencies.
As it can also be seen from the second item, the center did not have career development
plan for the employees according to the response of the sample respondents in that 60%
of the employees strongly disagreed and disagreed with the non existence of the plan.
This implies that the center did not give concern for employees’ performance development
which deters the organization’s productivity.
4.2.4 Employees participation and its effect on performance of employees

Employee participation (EP) is the process of developing ‘a feeling of psychological
ownership among organizational members’ and has been implemented through the
involvement of employees in information processing, decision-making and/or problem
solving,(Kearney, 1997,p.60). In fact, employee participation means that every employee is
regarded, as a unique human being not just a component in a machine and each employee
is involved in helping the organization meet its goals. One of the greatest underlying
factors in the success or failure of any organization is the power of its employee
involvement and how well that power is focused towards meeting organizational
objectives (Apostolou, 2002, p.45).
The following graph shows the summary of respondents’ response whether the
supervision style is encouraging employee involvement or not in the center.
Table6. Supervision style in Holeta Agricultural research center.
Item responses No of
Percenta
ge Total
(%)
(%)
respondents
The supervision style in the Strongly disagree 25 33.33
center is good at encouraging 54.66
Disagree
16 21.33
involvement of employees.
Neutral
11 14.67 14.67
Agree
17 22.67
Strongly agree 30.37
6 8
total 75 100 100

The above table shows that 30.37% rated supervision style as encouraging employee
involvement while 54.66% of respondents replied as there is no encouraging supervision
style. To cross check the case, interview was held with human resource manager of the
center.
Quite differently the response of the manager is positive in that there is good supervision
style that encourages employees to participate in management affairs. Hence, there is
contradiction on the response of manager and employees of the company that makes the
student researcher to face difficulty of making conclusion rather to let it open for other
researcher to scrutinize the case by considering additional necessary secondary data from
the center.
This is supported by (Lawler, 1996 cited in Theodosia, 2010, p.63) who wrote that
“employee involvement is expected to lead to increased product or service quality, greater
innovation, stronger employee motivation, lowers costs but a higher speed of production,
and lower employee absenteeism and turnover” which also highlights the positive impact
of employee involvement.
In fact, employee involvement or participation in decision-making is a concept that has not

been widely understood and accepted by many companies as forming a very important
part of human relations in organizations. The impression given by those who propose
participatory is that it will eliminate conflicts and disagreements between the employees
and management body when it comes to implementation and compliance since decisions
are taken both in the interest of the employee and the organization as a whole (McGregor,
1960, p.78). To see this effect on the organization under study, respondents were asked to
indicate the existence of participation in decision-making in the center and data collected
from them found in table below.
Table 7, Existence of employee participation in decision-making in the center
Item responses No of Percentage
respondents (%) total
Strongly disagree 7 9.33

1. There is a participatory type 44 58.67 68
Disagree
of decision- making in the 14 18.67 18.67
Neutral
center 8 10.67
Agree
2 2.66 13.33
Strongly agree
total 75 100 100
The table above implies that 68% of the sample respondents replied that, there is no
participatory type of decision-making while 13.33% responded reverse. From the data
collected, majority of respondents have not participated in decision making made in the
center. Hence, since employees are not involved, there is no complete sense of
appreciation of issues and accountability which will in the end make the center suffer when
goals and set objectives are not met.
However, employee participation is supported by numerous studies, accordingly (Marks et

al.; 1986,p.43) point out that “employee involvement does influence employee-
management relationship and organizational effectiveness; some of which includes lower
absenteeism”, enhanced work attitudes (Steel and Lloyd, 1988,p.34), higher individual
work performance (Bush and Spangler, 1990,p.59), lower employee turnover and
increased returns on equity (Vandenberg et at.; 1999,p.264), and improved organizational
learning (Thompson, 2002,p.123).
Actually, employee participation would ensure a favorable atmosphere for implementation

and creates smooth employee-management relationship in the center which in turn helps
to boost employees’ work performance.
4.2.5 Working Environment and Its Effect on Employees’ Performance

The workplace environment impacts employee morale, productivity and engagement -
both positively and negatively. The work place environment in a majority of industry is
unsafe and unhealthy. These includes poorly designed workstations, unsuitable furniture,
lack of ventilation, inappropriate lighting, excessive noise, insufficient safety measures in

fire emergencies and lack of personal protective equipment. People working in such
environment are prone to occupational diseases and it impacts on employee’s
performance. Thus productivity is decreased due to the workplace environment.
(Chandrasekhar, 2011: p.45).
Here under employees response for three different factors of work environment is
presented and discussed.
1) Space and Facilities Required doing the Job

The actual physical layout of an office is extremely important when it comes to maximizing
productivity.
Table 8 shows satisfaction of employees towards the space and facilities provided to do the
job. Accordingly, 58.63% respondents are satisfied with the space and facilities provided by
the company. Hence, majority of the employees are given the required space and facilities
to do their job.
Table 8: Satisfaction of Employees towards the Space and Facilities Provided

item Responses N0. of Percentage Total(%)
respondent
s
Satisfaction of strongly disagree 3 4
Employees towards Disagree 24 32 36
the Space and Neutral 4 5.34 5.34
Facilities Provided Agree 38 50.63
Strongly agree 6 8 58.63
Total 75 100 100
2. Relationship with Superiors at the Workplace in the center
Superiors act as advocates for employees, gathering and distributing the resources needed
by the employees in order to do a good job and providing positive encouragement for a job
well done.
It can be inferred from Table 8 shown below that 40.01% of the respondents did not
maintain a strong relationship with their superior at the workplace while 29.34% of the
employees have good relationship. Hence, it cannot be said that the relationship between
employees and supervisors in the center was strong.
However, friendly relationship between employees creates good working atmosphere and
motivation on employees in that their performance rises.
Table 9: Cordial Relationship with Superiors at the Workplace
Item Responses Number of the Percentage Total
respondents (%)
Relationship with Strongly agree 9 12
Superiors at the agree 13 17.34 29.34
Workplace is strong. neutral 23 30.66 30.66
disagree 17 22.67
Strongly 13 17.34 40.01
disagree
Total 75 100% 100
3. Environmental Factors are Conducive to Work
Companies have to provide a friendly and comfortable workplace to work. Most of the
employees agree that environmental factors such as temperature, lighting and ventilation
did not impact on health.
Table 10, it is seen that 64% respondents agree that the environmental factors are highly
conducive to work in the study organization. Hence, it can be said here in that
environmental factors of the center are favorable for work to employees of the center.
Table 10: Environmental Factors of the center

No of Percentage Total (%)
Item Responses
respondent (%)
Environmental strongly agree 2 2.67
factors(temperature, agree 46 61.33 64
lighting and ventilation)are Neutral 0 - -
Conducive to Work disagree 25 33.33

Strongly 36
2 2.67
disagree
total 75 100 100
4.3 Employees and Manager Perception about Motivational practice of the

center and its effect on the employees’ performance.
On an open ended question employees were asked what types of motivational tools the
company is using and what motivational tools they want to be applied in the center. They
mentioned transportation, housing, proper annual leave, scholarship advantage, skill
development and training and provision of the necessary equipment were being applied in
the center.
On the other hand, the manager mentioned; transportation service to employees who live
in Addis Ababa, provision of infrastructures and utensils for their job, first aid materials
for the victims in their work, salary increments according to employees year of existence in
the center, awarding the best performer of the year, training program specially for the
researchers, internet access, and library service for the researchers was some of the tool
that were being practiced by the HARC. And he responded he has good perception about
the motivational tools the center was applying.
25.4% of the employees’ response matches with the manager response about the
motivational tools practiced in the center, but majority of the respondents (74.4%) were
not agreed on the existence proper practice of motivational tools in the center that leads
them to low performance and may result in failure to achieve organizational objectives.
Hence, employees’ perception for the existing motivational tools of the center is not good
while the perception of the manager contradicts with the perception of employees. As can
be seen from the preceded discussion, motivational tool application is directly related with
the motivation for good employees’ performance. So, the center is advised to apply it to
increase the motivation and performance of the employees.
Employees were asked as to what types of motivational tools motivate them to perform
better. Accordingly, they responded that giving opportunity of upgrading their level of
education side by side to their job and getting housing service can make them perform
better.
4.4 Major problems raised by respondents related with motivation
The respondents mentioned the following major problems when they had been asked to
mention problems in the center related with motivation.
-There is no open discussion between management and employees
- Unfair application of motivational tool
- Lack of proper incentive distribution
- No proper and fair training and development practice
- Lack of infrastructure like good internet service
- Unfair treatments and rewarding system
The above mentioned problem were raised by respondents that makes them dissatisfied or
causes for demotivation and low performance in the center. So if the above mentioned
problems are handled by the responsible body of the center the companies productivity
will increase which results in high employees’ performance.
4.5 Respondents suggestions to the problems mentioned above
Respondents, in addition to mentioning the problems, were asked to give the possible
suggestion that can be used as a solution for problems related to motivation in the center.
The following are a summarized response of the sample employees they gave as a solution
for the above problems.
 Creating an open door communication and create discussions with employees on
a periodic bases.
 Providing fair distribution of motivational tools
 Practicing fair incentive distribution among employees.
 Providing proper training and development program.
 Providing infrastructures that are necessary for the work condition.
 Practicing Fair and clear rewarding system.
These were, the possible suggestion raised by employees. Based on this, the company will
motivate his employees if the center applies it that will increase employees’ performance
in the center.
CHAPTER FIVE
5. SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary
This study has attempted to examine the effects of motivation on employee’s performance
in case of Holeta agricultural research center. Hence, the major findings of this study are
summarized and presented as follows.
 This study tried to identity the social background of the respondents. Accordingly,
majority (58.6%) of employees’ respondents were male.
 To see the age composition of the employees’ respondents, majority (76%) of them
were between 20 – 39 years, i.e. at their productive age.
 As per the educational level of the sample respondents, 57.65% have first Degree
and above.
 Most of the employees’ respondents (61.3%) were researchers and technical
assistants.
 When we see the respondent’s works experience, majority of the employees in the
center had 5 years and less work experience which means they had less work
experience.
 Both the manager and the respondents of employees of HARC witnessed that as
existence of work place motivation has positive effect on the employees’
performance.
 Most of the respondents were earning above 2000 Birr. There feeling to their salary
level was unsatisfactory, and around 59% of the respondents witnessed that the
salary level they received has negative effect on their performance.
 49.32% of the sample respondents responded that employees were not fairly
rewarded in this center even though 34.68% replied positively. This reflects that
majority of the employees in the center under study have negative attitude toward
fairness of the reward system of the center.
 52% of sample respondents replied there is no monetary incentive in the center.

But 30.66% of the respondents completely agreed with managers’ use monetary
incentives to motivate their employees.
 66.67% of the sample employees replied that the pay given to employees of the
center does not match with the responsibility and amount of work performed by
employees. Only 19.99% of the employees responded the reverse in that the pay
system is proportional to the responsibility of the employees.
 30.66% of sample respondents replied that the center help their team members to
develop their skills and potential but 65.34% of them said the center do not help
them. The response implies that the center gives little attention for the
development of skills and potential of employees by giving training, development
which helps them increase their ability and confidence.
 68% of the sample respondents replied that, there is no participatory type of
decision-making while 13.33% responded reverse. From the data collected,
majority of respondents have not participated in decision making made in the
center.
 40.01% of the respondents did not maintain a strong relationship with their
superior at the workplace while 29.34% of the employees have good relationship.
Hence, it cannot be said that the relationship between employees and supervisors
in the center was strong.
 64% respondents agree that the environmental factors are highly conducive to
work in the study organization. Hence, it can be said here in that environmental
factors of the center are favorable for work to employees of the center.
 54.66% of respondents replied as there is no encouraging supervision style. To
cross check the case, interview was held with human resource manager of the
center. Quite differently the response of the manager is positive in that there is no
good supervision style that encourages employees to participate in management
affairs.
 58.63% respondents are satisfied with the space and facilities provided by the
company. Hence, majority of the employees are given the required space and
facilities to do their job.
No open discussion between management and employee, unfair application of
motivational tool, lack of proper incentive distribution, no proper and fair training and
development practice, lack of infrastructure like good internet service and unfair
treatments and rewarding system were some of the major problems raised by respondents
related to motivation in the center. Creating an open door communication and create
discussions with employees on a periodic bases, providing fair distribution of motivational
tools, practicing fair incentive distribution among employees, providing proper training and
development program, providing infrastructures that are necessary for the work condition
and practicing fair and clear rewarding system are the respective alternative solutions
raise by respondents
5.2 Conclusion
The research finally comes with the following conclusion based on the findings regarding
the effect of motivational factors on workers performance in Holeta Agricultural research
center. Basically, the information from both employees and managers indicated that
motivation practice of Holeta Agricultural Research Center had negative effect on the
performance of employees of the center. The researcher tried to identify the motivational
practice of the center in light with the motivational factors like salary, reward system of the
center, career advancement, participation of employees on managerial decision making,
and work environment of the center. Hence, the followings are the major findings on the
factors that affect employees’ motivation which in turn brings effect on the performance of
employees.
Salary is the most important compensation that workers are given in response to their
effort that they exerted for a certain period of time. It is one of the financial motivating
factors that contribute to better work performance. In this respect the attitude of
employees of Holeta Agricultural Research Center to their salary level was unsatisfactory
which has negative effect on their performance.
Incentives are usually defined as tangible rewards that are given to those who perform at a
given level and the center’s reward system is a significant situational factor that influences
employees’ performance. Here, there is poor reward system that negatively affects EMR in
the center. Such trend may hamper the application employees’ knowledge and skills for
better performance. In addition there is on the fairness of reward system of the center
which aggravates the problem.
Effective career development support is important for both employees and the
organizations that employ them. For both of them it is part of a strategy of achieving
flexibility to handle change culture more effectively for the achievement of the
organizational objective.
Concerning career development, the center did not help its employees to develop their
skills and potential and even it did not have career development plan in that the center did
not give concern for employees’ performance development which deters the
organization’s productivity.
Decision making is one of the basic functions of management that is made by managers
which help employees know what to do. However, it will be complete, sound and
effectively and efficiently applied when employees participate in the process of decision
making. Concerning this in the center there is no encouraging supervision style and there is
no participatory type of decision-making which has negative effect on the work
performance of employees’ since lack of employees’ participation on decision making de
motivate employees.
The workplace environment that is set in effects employee morale, productivity and
engagement - both positively and negatively. It is expressed by the space and facilities
provided by the company, the nature of environmental factors and the level of relationship
between employees and supervisors. By and large, in the organization under the study, the
employees were given the required space and facilities to do their job, environmental
factors of the center are favorable for work to employees of the center but the relationship
between employees and supervisors is not good.
What is more, Absence of free discussion between management and employees, unfair
application of motivational tools, lack of proper reward distribution, unfair training and
development practice, lack of infrastructure were some of the major problems raised by
respondents related to motivation.
5.3 Recommendation
Based on the problems identified from the sample respondents of HARC, the following
recommendation are suggested for improving the employees’ performance and the
center’s efficiency through solving problems related to motivation and keeping factors that
are encouraging.
Salary is the basic compensation for employees’ performance and effort. However, Most of
the employees were not satisfied by their salary level which will be the cause for
dissatisfaction and low performance of the employees. To prevent job dissatisfaction and
boost employees’ work performance, the center is advised to provide adequate salaries
which match with the tasks, effort, educational level, experience and performance of
employees getting performance results through fair and proper performance appraisal
result. The center is also advised to consider the salary scale of its employees by taking in
to consideration of other similar organizations and life expensiveness. What is more, it is
better that the salary is backed by incentives and fringe benefits like upgrading their level
of education side by side to their job and getting housing service that can make them
perform better as the employees responded on an open ended question (4.3, p.46).
In any organization rewards system; rewards are powerful factors pushing employees to
work. However, poor reward system exists in Holeta Agricultural Research Center that
could negatively affect performance of employees by resulting in low morale and declining
productivity. Therefore, it is advisable for the center to improve its reward system and to
use fair incentive Such as; praise or positive feedback and money for effective employees
through proper use of motivational tools according to the employees status, performance
and their job type (based on difficulty of their job) than basing on close informal
relationship between employees and managers which results in biasness. Performance
related schemes should flourish employees to work successful.
Effective career development support is important not only for individuals but also for the
organizations that employ employees.
Career development help to enhance each employee's current performance, enable

employees to take advantage of future job opportunities, and fulfill their employer's goals
of achieving a dynamic and effective work culture. Nevertheless, the center makes
insignificant help for its employees to develop their skills and potential and even it did not
have career development plan. Hence, it is advantageous for the center if it gives due
attentions for the careers development and training of both managers and employees in
order to get the smooth flow of the work system. Giving free in country scholarship
program for employees shall also be practiced by the center since most of employees
responded this on open-ended question saying that it motivates them to do better.
According to Bowen and Lowler (2003, p.123) employee involvement appears to be a

strong enabler of employees’ empowerment by motivating them. However, according to
the finding, there is no encouraging supervision style and participatory type of decision-
making in the center which has negative effect on the work performance of employees. To
cope up with this deterring factor of employees’ performance, as Apostolou (2002, P.45)
wrote organizations that can tap the strengths of their people will be stronger and more
competitive than those that cannot, management of the center is advised to recognize that
each employee is involved in running the business and he or she is also better be
encouraged to participate on matters that needs management decisions by applying
democratic leadership style since most of the employees of the center are educated. In
addition, the concerned party is better to give challenging tasks and responsibility for
employees which give them opportunity for more decisions and motivate them to do
better by having a feeling of good performers and competent employees.
Companies have to provide a friendly and comfortable workplace to work. Superiors act as
advocates for employees, gathering and distributing the resources needed by the
employees in order to do a good job and providing positive encouragement for a job well
done.
Fortunately, in the organization under the study, the employees were given the required
space and facilities to do their job, environmental factors of the center are favorable for
work to employees of the center but the relationship between employees and supervisors
was not good. Hence, the center is advised to keep its positive sides up with regard to
facilitating the required space and facilities to employees and making the environmental
factors like lighting favorable. However, superiors are advised to create friendly
relationship with their subordinates by making the environment favorable for employees
to practice points like the following. If employees have done something wrong, they try to
explain their boss the reasons behind it and convince their boss professionally. If they
don't understand something they ask without hesitation. Many employees tend to think
of their boss as a super human. But employees must realize that the boss is also a human
being with his own thoughts and actions. So if he has made any mistake, employees meet
him personally and bring it to his notice.
Generally, the center has not made sufficient attempts to motivate employees for better
work performance through creating good motivation system. Hence, in order to have well
motivated employees who can perform better at workplace, the management of the
center is advised to consider the systems of; salary , rewards, career development,
participation and safety and healthy work environment of the center. This is due to the fact
that the variables are the determinant factors to influence nature of motivation of
employees which in turn affects the performance of the employees in particular and the
objective of the center at large.
5.4 Recommendations for further research

Additional research should be carried out to gain a continuous view, insight and knowledge
of what motivates employees to perform best on their job. Employee motivation evens
after some 50 years of research continue to be one of the problems and challenges facing
organizations today.
Furthermore factors such as technological advances, globalization, retrenchments etc leave

employees with an uncertain future this is because most organizations today do not
guarantee life employment’s for their employees as it was the case before.
Therefore there is the need for researchers to continue carrying out employee surveys so
as to determine what motivates employees to go extra miles and thus put in 110% in their
work. The outcomes of such surveys will help organizations be at par with changes in
employee’s preferences. The outcome of this research shows that Growth rather than
Deficient factors are valued more by today’s employees.
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A research paper on effect of motivation on employees performance in case of Holeta Agricultural Research center

1.2 Background of the organization

1.3 Statement of the problem

1.4 Objective of the study

2. To assess the perception of employees about motivational practice of by the center

1.5. Significance of the study

1.6 Scope of the study

1.7 Limitation of the study

1.8 Organization of the study

2.2. Characteristics of motivation

2.3 Importance of motivation

g. Basis of co-operation: Efficiency and output are increased through cooperation.

2.4 Types of motivation

2.5 Factors of Employees’ motivation and their effect on employees’

2.5.1. Non financial factors of motivation that affect employees’

2.5.1.2. A safety and healthy work Environment

The work environment is comprised of the physical location, equipment, materials

There are no stated exclusions of place or circumstance. Work environment is a major

Because motivation is an essential ingredient in the workplace, understanding the way

Workplace environment plays a vital role in motivating employees to perform their

2.5.1.3. Career Development

According to Schultz (1960, p.73), organizations invest in skill development or human

To put as general, the purpose of career development is to enhance each employee's

2.5.1.4. Employee Involvement

Employee involvement (EI) is the process of developing ‘a feeling of psychological

Participation is mental and emotional involvement of persons in group situations that

2.5.2. Financial factors of motivation that affect employees’ performance

2.5.2.2. Fringe benefits

ii. Retirement benefits

iii. Safety and health provision: and

iv. Recreation and other benefits.

given to employees. Compensation is a monetary benefit given to employees in return for

2.6 Motivation and Performance

2.7 Rules for effective motivation

1. Every individual is different from the other (individual differences respected)

2.8. Factors That Affect Motivation in the Work Place

2.9 Paying for performance

Sees money as a maintenance factor that doesn’t necessarily motivate an employee to

2.10 Motivating to Accommodate Individual Differences

2.11 Theories/Models of Motivation

2.11.1 Content Theories of Motivation

2.11.1.1 Maslow’s theory of Human Motivation

Abraham Maslow, a famous social scientist and psychologist, developed a theory of

Figure 1: Maslow’s hierarchy of needs for motivation

2.11.1.2 Hertzberg’s two-factor theory

2.11.2 Process Theories of Motivation

Effort-performance relationship • Make sure that employees have the skills

2.11.1.2 Equity theory

2.12 Empirical descriptions

A second meta-analysis by Stajkovic and Luthans (2003) focused only on manufacturing

Another meta-analysis of 39 studies done by Jenkins et al. (1998) focused specifically on

Sample Size Determination Formula:

N= is the population size

FPC formula: Where c=n/N and nf =final sample size

Since c is greater than 5% (c>5%N), FPC formula must be used

Hence, final sample size (nf) is 84 Target population=414 employees

 Sample size of the first strata (employees in different managerial level):

63emplyees*20.2=13 samples are selected.

3.4 Sampling technique

C. Sampling Design: It describes the procedure by which sample is selected.

4.1 Respondents’ Demographic Information

Table 2, Employees personal information

Source: filled questionnaire (Primary data)

there is motivation based on performance as witnessed by managers on semi structured

Mohammed's Final Resrach Paper

Mohammed's Final Resrach Paper