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University of Gondar

College of Business and Economics

Department of Management

Effect of Job Design on Employee Performance: the mediation role of Employee Motivation

A Study of Dashen Bank with Reference to Gondar City Administration

A thesis submitted to college of Business and Economics, department of management in a


partial fulfillment of the requirement for the master degree in Master of Business
Administration

By: Solomon Fenta

Advisors

Principal Advisor:- Teshale Birhanu (PhD)

Co-advisor:- Ermias Worku (Assistant professor)

July, 2021

Gondar, Ethiopia
Declaration
I, undersigned declare that this thesis is my own original contribution and has not been presented
for a degree in any other university. In compliance with internationally accepted practices; and
that all sources of material used for the thesis have been duly acknowledged. I understand the
non-adherence to the principle of academic honesty and integrity, misrepresentation/fabrication
of any idea/data/fact source will ground sufficient ground for disciplinary action by the
university and can also evoke penalty action from the sources which have not been properly cited
or acknowledged.

Name: Solomon Fenta

Signature: _____________________

Date: ____________________
Letter of Certification

This is to certify that Mrs. Solomon Fenta has conducted a thesis on “Effect of Job Design on
Employee Performance: the mediation role of Employee Motivation A Study of Dashen Bank
with Reference to Gondar City Administration ” under our supervision. This work is original in
nature and it is suitable for submission in the partial fulfillment of the requirement for the Degree
of Master of Art in Business Administration.

Teshale B (PhD) ________________ ______________________


Name of Principal adviser Signature Date

Ermiyas W (MBA) ____________________ ______________________


Name of Co. adviser Signature Date
Table of Contents

Contents

Table of Contents ............................................................................................................................. i

List of Tables ................................................................................................................................. iv

List of Figures ................................................................................................................................. v

ACKNOWLEGEMENTS .............................................................................................................. vi

Abstract ......................................................................................................................................... vii

CHAPTER ONE: INTRODUCTION ............................................................................................. 1

1.1. Background of the study ...................................................................................................... 1

1.2. Statement of the problem ..................................................................................................... 2

1.3. Objective of the Study .......................................................................................................... 4

1.4. Research questions ............................................................................................................... 5

1.5. Significance of the Study ..................................................................................................... 5

1.6. Scope of the study ................................................................................................................ 6

CHAPTER TWO ............................................................................................................................ 7

2. LITERATURE REVIEW ........................................................................................................... 7

2.1. Theoretical Review .............................................................................................................. 7

2.2. Job Design .......................................................................................................................... 14

2.2.1. Task skill...................................................................................................................... 15

2.2.2. Task identity ................................................................................................................ 16

2.2.3. Task Significance ........................................................................................................ 16

2.2.4. Task Characteristics ..................................................................................................... 17

2.2.5. Task Feedback ............................................................................................................. 18

2.3. Employee motivation ......................................................................................................... 20

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2.4. Employee Performance ...................................................................................................... 21

2.3.1. Measuring Performance ............................................................................................... 22

2.3. Empirical review ................................................................................................................ 23

2.3. Conceptual framework of the study ................................................................................... 25

2.4. Hypothesis of the study ...................................................................................................... 26

2.4.4. Mediated effects .......................................................................................................... 26

CHAPTER THREE: RESEARCH METHODOLOGY ............................................................... 27

3.1. Research Approach ............................................................................................................ 27

3.2. Research Design ................................................................................................................. 27

3.3. Population and Sampling Design ....................................................................................... 28

3.3.1. Target population ......................................................................................................... 28

3.3.2. Sample Size ................................................................................................................. 28

3.3.2 Sampling technique ...................................................................................................... 29

3.4. Source of Data and Collection Methods ............................................................................ 29

3.4.1. Sources of Data ............................................................................................................ 29

3.5. Data Collection Instruments ............................................................................................... 29

3.5.1. Questionnaire ............................................................................................................... 30

3.6. Data Analysis Techniques .................................................................................................. 30

3.7. Ethical Considerations........................................................................................................ 31

CHAPTER FOUR: RESULTS AND DISCUSSIONS ................................................................. 32

4.1. Demographic Characteristics of Respondents.................................................................... 32

4.2 Confirmatory Factor Analysis ............................................................................................. 34

4.2.1. Test of regression assumptions .................................................................................... 34

4.2.2. The model fit ............................................................................................................... 37

4.2.3. Confirmatory factor analysis for each of constructs .................................................... 38

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4.2.4. Overall Confirmatory Factor Analysis (CFA) ............................................................. 44

4.3. Mediation analysis to examine the effects of Job design, Employee motivation and
Employee performance ............................................................................................................. 48

4.3.1. Test of preconditions set by Baron and Kenny (1986) ................................................ 48

4.3.2. The Effect of Job Design on Employee Motivation (path ‘a’) .................................... 54

4.4. Direct effect of job design dimensions (X) on employee performance (Y) (Path ‘c’)....... 57

4.5. The Indirect and Total effects of job design and employee motivation on employee
performance ............................................................................................................................... 58

4.5.1. Total effect of job design and employee motivation on employee performance ........ 59

4.5.2. Indirect effects of Job design on employee performance ........................................... 61

CHAPTER FIVE: CONCLUSIONS AND RECOMMENDATIONS ......................................... 64

5.1. Conclusions ........................................................................................................................ 64

5.2. Recommendations .............................................................................................................. 65

REFERENCE ................................................................................................................................ 67

APPENDIXES .............................................................................................................................. 72

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List of Tables

Table 4. 1 Demographic characteristics of respondents ............................................................... 32


Table 4. 2 Multicollinearity statistics............................................................................................ 36
Table 4. 3 thresholds used as a guideline to model fit .................................................................. 37
Table 4. 4 Model Fit Indices for job design constructs................................................................. 38
Table 4. 5 Convergent Validity, Discriminant Validity and Reliability ....................................... 39
Table 4. 6 Model fit for employee motivation constructs ............................................................ 41
Table 4. 7 Convergent Validity, Discriminant Validity and Reliability motivation construct .... 41
Table 4. 8 Model Fit Indices for employee performance constructs ............................................ 42
Table 4. 9 Convergent Validity, Discriminant Validity and Reliability for performance construct
....................................................................................................................................................... 43
Table 4. 10 Model Fit Indices for all constructs ........................................................................... 46
Table 4. 11 Convergent Validity, Discriminant Validity and Reliability for all construct ........... 47
Table 4. 12 Correlations P values between the predictor variable and the dependent variable .... 48
Table 4. 13 correlation between the independent and mediating variable .................................... 49
Table 4. 14. Correlation coefficient M is significantly associated with Y when X is also included
....................................................................................................................................................... 50
Table 4. 15 regression estimates of the independent variables with dependent variables ........... 52
Table 4. 16 regression estimates of the independent variables with dependent variables when the
mediating variable also included .................................................................................................. 53
Table 4. 17 Regression Weights: for Job Design, Motivation and Employee performance ......... 54
Table 4. 18 Total effects with the corresponding Bootstrap estimates ......................................... 59
Table 4. 19 Indirect effects with the corresponding Bootstrap estimates ..................................... 61

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List of Figures

Figure 1 Normality Histogram ...................................................................................................... 34


Figure 2 Scatter plot ...................................................................................................................... 36
Figure 3. CFA Constructs of Job Design ...................................................................................... 38
Figure 4 CFA Constructs of Motivation ....................................................................................... 40
Figure 5 CFA Constructs of Employee performance ................................................................... 42
Figure 6 CFA Constructs of for all Constructs ............................................................................. 45
Figure 7 the effect of Job design on performance......................................................................... 51
Figure 8 The effect of Job design and motivation on Performance .............................................. 52
Figure 9 Direct, Total and indirect effects .................................................................................... 59

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ACKNOWLEGEMENTS

I would like also to thank my advisors Dr. Teshale Berihanu and Ermiyas Worku(Assistant
Proff.) who are instructors in Gondar University, department of Business management, who
helped me to accomplish this study proposal with critical, valuable comments, follow-ups and
advice throughout the research.

I would like to extend sincere thanks Azmeraw Chekol and Alemu Agmas who have made direct
and indirect contribution to accomplish this proposal, especially in providing me literature &
books.

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Abstract

The main objective of the study is to examine the effects of job design on employee performance
through the mediation role of employee motivation in Dashen bank with reference in branches in
Gondar city administration. The study used explanatory design and quantitative research
approach. The study was based on both primary and secondary sources. Questionnaire was
distributed to 283 respondents, which were selected using simple random sampilng technique.
The data was analyzed using regression based mediation analysis. The overall results of the
study indicated that Based on the results, the study concluded that, the indirect effects of the
independent variables or job design dimensions on the dependent variable or employee
performance through employee motivation was found positive. Furthermore, the indirect effect of
task feedback, task skill, task characteristics, task identity dimensions on employee performance
through motivation was significant. However, the indirect effect of task significance on employee
performance through employee motivation was found insignificant. In addition, the study also
concluded that the proposed paths such as path “a”, path “b” and path “c” were significant for
task skill and task identity implying that employee motivation significantly but partially mediates
the relationship between task identity, task skill and employee performance. Conversely,
employee motivation positively, significantly and fully mediates the relationship between job
design dimensions of task characteristics, task feedback and employee performance.
Furthermore, as far as the effect size of the mediator variable or employee motivation was
concerned the study concluded that employee motivation explained about 53.92%, 88.02%,
32.83% and 59.71% from the total effect between task feedback, task characteristics, task
identity, task skill dimensions and performance respectively. Finally, the study also concluded
that comparing the magnitudes of these indirect effects, the indirect effect of task characteristics
is larger than the indirect effect of other job design dimensions in the study area.

Key words: Job Design, Motivation, Performance, Path

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CHAPTER ONE: INTRODUCTION

1.1. Background of the study

A broad definition of Job design would encompass disclosure by scholars have customarily
describes jobs as set of tasks which is deliberated plan to be accomplish by one employee and
tasks in simple words is the allocation of small patches of work to an employees who have been
accomplish it within the given time period (Griffin, 1987). Grant (2017) further elaborate tasks
as the fundamental and essential bases of jobs that neglect the reality that jobs are intended with
highly structured relational mechanism that impacts not only employee’s interpersonal relations
but associations as well. Business Leaders always motivate the people that they should pursue a
collaborative work design in which they make sure that employees should be responsible for
their work performance (Tanner, 2018). It is found that sometimes the imminent bond of job and
goals setting can help to enhance the level of performance and the design of job can increase not
merely the satisfaction but also the worth of performance as well (Garg & Renu, 2015).

When many pioneers of scientific management had explore new ways about the business
ideology like Taylor (2017), Gilbreth (2011) systematically examine the jobs with numerous
methods and techniques but all of these consider job design is the most important in the scientific
management. The first ever theory was presented related to individual job design that was two
factor theory (Herzberg, Mausner, & Snyderman, 2019) which basically describe two types of
the motivational factors. One is related to intrinsic motivation (e.g. authority, achievement and
self recognition) and other is a hygiene factor, which describes to extrinsic motivation of
individual work (e.g. salary. working environment and other fringe benefits).

Huselid and Becker (2017) maintain that operational excellence emanates from human resource
management systems that also generate financial gains in organizations with the help of job
design and its imminent goals ahead. It depends on nature of the job, some required role
performance which is found highly recurring on the other hand, some other jobs display
dominant flexibility in the tasks to be executed (Mueller, Boyer, Price, & Iverson, 2014). In
addition to it, job design includes perceived work demands, job control and social support that
lead to higher output (Love & Edwards, 2015). As many human resources professionals have

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discovered that there is strong impact of job design on the productivity and the motivation of
employees in an organization. Mean while company’s objectives and mission are also reliant of
employee’s performance. As a result of this, designing jobs and roles appropriately is very
imperative in elevating the motivation and performance of employees, which is addressed
through Job characteristic model. So this motivates the researcher to test that how job design can
enhance the motivation and performance of the employees.

The concept further explores by Hackman and Oldham’s (1976) through job characteristics
model, which describe more specifically about the individual job design, it also identifies five
core dimensions which are skill variety, task identity, task significance, autonomy and feedback.
It added more value and practical approach to the job design with changing circumstance.

1.2. Statement of the problem

Job design has been one of the most effective tools used for optimizing an employee's
performance. It can be defined as changing the content and processes of a job to increase an
employee’s satisfaction, motivation and productivity (Knapp & Mujtaba, 2010). Effective Job
design is measure of the degree to which the employee is involved in his tasks and assignments.
Many researchers have analyzed the relationship of job design and employee performance and
concluded that there is a strong positive relationship between them.

According to Dashen bank report (2019) believed that now a days most or 57.2% of the
employees are not happy with their job design or not assigned with the tasks that they feel
encouraged and motivated to perform (Dashen bank report, 2019). On the other hand studies
revealed that an effective job design brings involvement of an employee in work related
activities which clearly forecasts employee output, departmental productivity and organizational
success (Bates, 2014 and Baumruk, 2014). Again some other studies also indicated that
employee’s job performance increases if the job design is aligned with the employee
psychological requirements and perceptions (Harter, 2012). Studies also portrayed that an
effective job design for the employees can increase their involvement in the job, they enjoy
performing tasks and exert all cognitive, emotional and physical energies to achieve goals (Khan,
2012). With regard to motivation, Job design brings involvement, satisfaction and motivation to
employees. Such employees bear more pain for their work, they enjoy their work and stay extra

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hours willingly. They consider work as virtue for them and a part of their lives (Dubin, 2016;
Rabinowitz & Hall, 2017) employees also feel that they are getting what they want from their
jobs and fulfill their duties as ethical responsibility. These motivated, involved and delighted
behaviors tend to enhance the employee performance and ultimately organizational productivity.

As far as previously conducted research works were concerned, local studies conducted by
Bamlaku (2013) and Tesfa (2014) found a positive relationship between task skill, task identity,
task autonomy and employee motivation. In connection to the above, some other empirical
studies by Tamirat (2010), and Azmeraw (2016) have shown that the appropriate motivation, in
turn, has been tied to desirable outcomes such as employee work performance.

In sum, despite there is evidence of the purported mediation of motivation on the relationship
between job performance and job design as evidences in separate studies; the above studies have
evaluated job design as antecedents of employee performance/ motivation or evaluated the
effects of employees’ motivation on employees’ performance or using organizational culture as a
mediating variable. Thus there is a scarcity of research works that focused on examining the
mediation role of motivation. Most research has only examined the direct relationship between
job design and employee performance. On the other hand, various studies also analyze this
relationship between motivation and employee performance through the mediation constructs
such as culture (Ogbonna & Harris, 2010 and Lo, et al., 2010) and knowledge management
(Gowen, Henagan, & McFadden, 2019). However, understanding for the processes that through
which the job design influences to develop motivation among employees and in turn how
motivation is related to employee performance is still limited and largely not yet addressed by
the above studies. On the other hand, little empirical research has been studying about
association between these variables, particularly in the Ethiopian context.

In general, as far as the author’s knowledge, the above studies have shown the following gaps
and limitations. Firstly, no recent study in literature has investigated to what extent does task
skill, task identity, task significance, task feedback and task autonomy are existed during the
process of job designing phase. Thus, the above studies were failed to evaluate the extents of
employees’ motivation and performance by understanding the processes that through which the
job design put into practice to develop employee motivation and performance is still left to be
addressed.

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Secondly, even though a lot of research works has been conducted globally on the relationships
between job design and employee performance but, it has mainly focused on the direct
relationship. Most of the previously conducted research works have only examined the direct
relationship between task skill, task identity, task significance, task feedback and task autonomy
and employee performance in different study areas. As a result, whether the job design indirectly
invoke performance through developing employees’ motivation or, simply has a direct effect on
employee performance is still remains to be well understood. Thus, these studies missed to
investigate the indirect effects of job design on employee performance through the mediation
role of employees’ motivation.

Thus, this study addresses whether motivation makes a difference in the effects between job
design and employee performance by understanding the processes that through which the job
design put into practice to significantly affected with employee work performance by developing
employees motivation in the case of Dashen Bank, Gondar city administration.

1.3. Objective of the Study

General Objective
The general objective of the study is to examine the effects of job design on employee
performance through the mediation role of employee motivation in Dashen bank with reference
in branches in Gondar city administration.

Specific objectives
The specific objectives of the study were

1. To examine the effects of job design on employee motivation in Dashen Bank with
reference in branches in Gondar city administration.

2. To test the effects of employee motivation on employee performance in Dashen Bank


with reference in branches in Gondar city administration.

3. To test the direct effects of job design on employee performance in Dashen Bank with
reference in branches in Gondar city administration.

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4. To examine the mediation role of employee motivation in the link between job design
and employees’ performance in Dashen Bank with reference in branches in Gondar city
administration.

1.4. Research questions

The study answered the following research questions


1. Does job design (task skill, task identity, task significance, task feedback and task
autonomy) affected employees’ motivation significantly?

2. Does employees’ motivation affect and employee performance significantly?

3. Is there a significant effect of job design (task skill, task identity, task significance,
task feedback and task autonomy) on employees’ performance?

4. Do employees motivation mediate the effects of job design and employee


performance in Dashen bank?

1.5. Significance of the Study

First the study contributes knowledge to the bank managers who are working in Dashen bank,
especially in the aspect of the major job designs influencing employees’ motivation and
employee performance. The branches therefore would have knowledge of identifying the job
design dimensions influencing employees’ motivations and employees’ performance, and
managers can redesign their strategies and formulate appropriate policies and reviewing the
existing ones, in order to increase employee performance.

Helps employees of the bank to know about how jobs designs are evaluated and how motivation
affects performance in banking sectors. It has produced hitherto unavailable knowledge as far as
job redesign and performance of employees in commercial banks in Gondar City Administration
is concerned. The study should therefore form a useful reference material on the literature of job
redesign to employees of commercial banks, human resource practitioners, educators in banking
and human resource, general readers as well as to researchers in this area.

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Finally, this study serves as a good basis for future coming researchers who have a strong desire
to carry out a research on this or related topics.

1.6. Scope of the study

This study was limited to investigate the contributing types of job design to increases motivation
and performance in Dashen Bank Sc. The factors that influence employees’ performance are
numerous. However, in this study, five dimensions of job designs and their role in developing
motivation and employee performance was investigated. These were task skill, task identity, task
significance, task feedback and task autonomy. There might be other factors for motivation and
job design that can influence employee performance, but they cannot be considered in this study
due to resources and time limitation. The study investigated the effect of job design and
employee commitment with mediating variable of employees’ motivation. Besides to this, the
study was limited to employees in Dashen bank SC. Branches which are found in Gondar city
administrations in the year 2020/2021.
In addition, the study also delimited on examining the mediation effects of motivation on the
relationship between job design and performance in the study area. Thus the study is delimited
on analyzing the indirect effects through mediation models.

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CHAPTER TWO

2. LITERATURE REVIEW

2.1. Theoretical Review

Job Design

The term job redesign refers to activities that involve the alteration of specific jobs (or systems of
jobs) with the intent of improving both productivity and the quality of employee work
experiences. Although there are no generally accepted criteria for what is a well-designed job,
there are some commonalities in job redesign projects (Alber , 2007). .

Typically, job specifications are changed to provide employees with additional responsibility for
planning, setting up, and checking their own work; for making decisions about work methods
and procedures; for establishing their own work-pace; and for dealing directly with the clients
who receive the results of the work(Zareen & Razzaq, 2013). In many cases, jobs that previously
had been simplified and segmented into many small parts in the interest of production efficiency
are reassembled and made into larger and more meaningful wholes. Sometimes work is
redesigned to create motivating and satisfying jobs for individual employees who work more or
less on their own. Such activities are usually known as "job enrichment" (Nana & Achiaa, 2012).

Alternatively, work may be designed as a group task, in which case a team of workers is given
autonomous responsibility for a large and meaningful module of work. Such teams typically
have the authority to manage their own social and performance processes as they see fit; they
receive feedback (and often rewards) as a group; and they may even be charged with the
selection, training, and termination of their own members. These teams are known as
"autonomous
work groups" (Abid et al., 2013), "self-regulating work groups" (Ali & Zia-ur-rehman, 2014b),
or "self-managing work groups" (Hackman, 1990).

Both individual and team job redesign can be viewed as responses and alternatives to the
principles for designing work that derive from classical organization theory and the discipline of
industrial engineering. These principles specify that rationality and efficiency in organizational

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operations can be obtained through the simplification, standardization, and specialization of jobs
in organizations (Aroosiya, 2017). These principles are based on the assumption that most
employees, if managed well, will work efficiently and effectively on such jobs.

Research over the last several decades has documented that job redesign, job enlargement, and
job enrichment are closely related terms and will not be distinguished here. Current approaches
to job redesign, then, tend to have a behavioral emphasis and attempt to create jobs that enhance
work productivity without incurring the human costs that have been associated with the
traditional approaches(Ali & Zia-ur-rehman, 2014b). Opatha (2012) considers job design to
include the functions of arranging task, duties and responsibilities into an organizational unit of
work. The working definition for the study purpose is that, ‘The job design is the way to
organize the contents, methods and relationship of jobs in order to achieve organizational goals
and objectives as well as satisfaction of job holders.

There are various approaches to job design. Regarding this Aswathappa (2016) explained that,
various approaches to job design are; job rotation, job engineering, job enlargement, and job
enrichment. In the view of (Zareen & Razzaq, 2013), it is closely associated with sophisticated
computer applications, Computer Assisted Design (CAD), and human – machine interactions.
Job rotation and job enlargement were designed to take advantage of specialization of labor from
the job engineering approach (Nana & Achiaa, 2012).

Job rotation allows an employee to work in different departments or jobs in an organization to


gain better insight into operations (Motlokoa & Sekantsi, 2018). Job enlargement can be used to
increase motivation by giving employees more and varied task. Job redesign is designing and
redesigning jobs in such a way that they become attuned to what individual employees are able
and willing to do as an important issue in the world of work today. Job redesign aims to improve
jobs in the organization (Zareen & Razzaq, 2013).

The goal of job design and job redesign is to reconstitute jobs or work roles in terms of work
functions and worker capabilities that are both appealing to individuals and are in alignment with
the organization’s strategy and vision (Abid et al., 2013). Job design involves the planning of the
job including its contents, the methods of performing the job, and how it relates to other jobs in
the organization (Aroosiya, 2017).

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Job design and redesign’s goal is to connect the needs of the individuals performing various jobs
with the productivity needs of the organization. An important aim for job design and redesign is
to provide individuals with meaningful work that fits effectively into the flow of the
organization. The goal of job design is simplifying, enriching, enlarging, or otherwise changing
jobs to make the efforts of each employee fit together better with jobs performed by other
workers. Redesigning one job can make the overall system work more efficiently (Paper et al.,
2018).

Aldag and Brief (1979) concur with Davis Truss et al., (n.d.) that job redesign is more likely to
improve performance when the changes in job content are sufficiently non-trivial to be
perceptible to the workers, typically in terms of greater self-regulation, diversity,
meaningfulness, challenge, and social responsibility; and when the changes in job content are
part of a more pervasive program of improved working policies and practices, which include
elements of adequate pay and job security, proper resources and working conditions, increased
mutual influence by people at all levels, and constructive labor-management relations.

Job redesign can improve organizational performance through job rotation, horizontal job
enlargement, vertical job enlargement and the creation of autonomous working groups. In job
rotation, workers can change places from time to time. Under this system the job of each worker
may be simple, but variety is introduced as they swap places(Ptd, 2016).

Workers can learn to carry out any number of the tasks, instead of staying put at one position on
the line (Slocum & Sims, 2000). In a horizontal job enlargement, a given workstation may be
allocated more to do thus the cycle time is extended. This change may also mean that the
transformation to the product is more obvious. The enlargement is ‘horizontal’ in the sense that
the level of difficulty is constant (Chanie, 2017) ; while a vertical job enlargement (job
enrichment) gives the worker more responsibilities in handling his or her job. It is also known as
‘job enrichment’ because it contributes to self-esteem. Added responsibility for planning and for
quality control indicates to a person that he or she is being trusted to exercise judgment (Enyew,
2018).

From the management’s viewpoint, jobs, as performed, must lead to efficient operations quality
products, and well-maintained equipment. From the workers’ viewpoint, jobs must be

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meaningful and challenging, provide feedback on performance, and call on their decision-
making skills. Jobs must be designed in such a way that they allow the organization to take full
advantage of technological breakthroughs without alienating the workers affected by change.
Redesigning jobs allow companies to retain skilled workers, while enhancing output (Van de
Ven & Ferry, 1980).

Job redesign is similar to job enrichment in another sense in that it entails enriching job, which
refers to the inclusion of greater variety of work content, requiring a higher level of knowledge
and skill, giving workers, autonomy and responsibility in terms of planning, directing, and
controlling their own performance, and providing the opportunity for personal growth and
meaningful work experience (Bank, 2017). According to Herzberg (2003), job enrichment
provides the opportunity for the employees’ psychological growth, while job enlargement merely
makes a job structurally bigger.

According to Hertzberg’s theory, only a challenging job has the opportunity for achievement,
recognition, advancement and growth that will motivate personnel. Because of that, job
characteristics model (JCM) superseded the two-factor theory and it is the most widely
recognized model(Prasad, 2017).

The Hackman & Oldham model suggests the relationship between five core job dimensions –
task variety, task identity, task significance, autonomy and feedback and the occurrence of
intrinsic motivation (Submitted, 2017). In the view of Garg & Rastogi (2016), task variety refers
to the extent to which the job requires the employee to draw from a number of different skills
and abilities as well as upon a range of knowledge. Task identity refers to whether the job has an
identifiable beginning and end or how complete a module of work the employee performs, task
significance refers to the degree to which the job affects the lives or work of other people,
autonomy refers to the degree to which the job provides freedom, independence, and discretion
to the individual in scheduling the work and in determining the procedures, and feedback refers
to the degree to which carrying out the work activities required by the job results in the
individual’s obtaining direct and clear information about the effectiveness of his or her
performance(Alemu, 2018).

During the early part of this century, organizational theorists attempted to improve the efficiency
and effectiveness of organizations by developing a set of principles. The idea was that efficiency

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would be the ultimate criterion toward which organizations should strive and that the use of
rational administrative practices and procedures would enable managers to reach this goal
(Slocum & Sims 2010).

Classical theorists developed a number of principles that they believed would maximize the
rationality and efficiency of the organization. These principles emphasized the importance of
clear and unambiguous channels of authority, centralization of decision- making, adherence to
rules and regulations, and the division of labor. The latter principle had a great impact on the
worker.

In essence, this principle specifies that maximum work efficiency will be achieved if jobs are
simplified and specialized to the greatest extent possible (Alber, 2017). The notion is that the
employees will function most efficiently if they perform the same specialized functions
repeatedly instead of spreading their attention and energies across several more complex tasks
(Slocum & Sims, 2010). Unfortunately, numerous studies have shown that work designed
according to the principles of classical and scientific management does not always improve
productivity (Alber, 2017), particularly in the banking sector. This led to the development of job
redesign.

Job redesign is the restructuring of the elements of work including tasks, duties and
responsibilities of a specific job in order to make it more encouraging and inspiring for the
employees or workers (Ngugi, 2014). According to Aldag and Brief (2019), the process includes
revising, analyzing, altering, reforming and reshuffling the job-related content and dimensions to
increase the variety of assignments and functions to motivate employees and make them feel as
an important asset of the organization (Hackman & Oldham, 1980).

This study defines job redesign as the deliberate purposeful planning of the job, including all its
structural and social aspects and their effect on the employee. It is a broad concept that can refer
to any part or combination of parts of the job, and is characterized by task identity, task variety,
and task significance, and autonomy. The idea is to place the right person in the right job and get
the maximum output while increasing their level of satisfaction (Paper et al., 2018).

A job can be made more meaningful through task identity, task variety, task significance and
autonomy. Individual jobs should focus on an entire unit as opposed to just a portion of it. For

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example, a bank teller may be responsible for satisfying all the hank needs of a customer,
including transactions involving checking, savings, utility payments, loan payments, and
mortgage payments, rather than specializing only in savings account deposits and withdrawals
(Daniel, 2020).

This is task identity (Slocum & Sims, 2010). A task should also require an individual to develop
and use a variety of skills and abilities in the performance of the task. In the case of a general
superintendent of a banking plant, the technical knowledge of the firm’s machinery, the skill to
supervise others and the ability to determine plant shutdowns and repairs without loss of
revenues provides a significant amount of task variety (Hellriegel & Slocum, 2019).

A job should have a substantial impact on the welfare of the organization (Alber, 2017).
Recruiting high-caliber staff indicates that a high degree of task significance is attached to the
job (Aldag & Brief, 1979). Task variety, task identity, task significance, and autonomy are the
core dimensions of a job because they relate directly to the attainment of personal satisfaction.

In a bank where there is task identity, tasks are combined, all tasks required to complete a given
task are performed by one person, rather than by a series of individuals who do separate, small
parts of the job (Slocum & Sims 2010). When a number of tasks are combined to form a single
large one, task variety almost invariably increases. Moreover, task identity often improves as
well, because the employee is able to identify with the complete product or service (Hackman &
Oldham, 1980).

To scientifically determine the optimal way to perform a job Taylor performed experiments that
were characterized by the use of a stop watch to time a worker’s sequence of motion with the
goal of determining the one best way to perform a job (Mujtaba, 2014). According to Taylor, if
managers give the workers rewards for increased productivity the workers will try to achieve it
by working harder but soon they will become exhausted because they will not be familiar with
the right way, so it is the responsibility of the managers to design the job for workers giving
them the best way so they can perform well without getting exhausted. With Taylor’s time and
motion study by analyzing the “one best way” to do it can be found. Taylor experimented and
after years of experiments to determine optimal work methods, he proposed four principles of
scientific management (Mujtaba, 2014).

12
1. Task performance methods should be scientifically studied and the best method should be
adopted.

2. Workers should be selected, trained and developed by managers instead of leaving them to
develop themselves.

3. Managers and supervisors should cooperate with workers so that they could follow the
developed methods and designs to perform the tasks.

4. Work tasks should be divided into small elements and managers should apply scientific
management principles on workers and measure their performance.

These principles were implemented in many organizations and their productivity increased by 3
to 4 times (Mujtaba, 2014; Knapp and Mujtaba, 2010).

The basic idea of Taylor was that job should be designed in such a way that it become simplified
for workers and they can easily understand it and enjoy performing at workplace because
workers get bored of repetitive tasks assigned to them by their managers. Later on Taylor’s ideas
were broadly conceived and adopted in United States, France, Switzerland, USSR and Canada
and much research work and practical implication of these ideas has been done by the
researchers of these States.

Taylor’s ideas are applicable in the existing scenarios with little amendments. Later on in 1960s,
Frederick Herzberg’s dual factor theory increased the importance of job design for workers.
Herzberg’s main point was that job should be enriched in such a way that employees get
motivated to do an assigned task and ultimately performance is enhanced (Herzberg, 1966,
1979).

Herzbergs' claim was that the job should be designed or assigned in such a way that it aid in
enhancing their growth in competence, achievement, advancement, recognition and
responsibility. Job engagement or involvement is a very important factor. When employees are
satisfied with their job design they automatically are inclined to get involved in doing their best
to complete the assigned tasks and, as a result, positive impact is observed on their overall
performance. The more involved employees feel positively about the work assigned to them and

13
beyond satisfaction they became motivated to exert their best potential in order to accomplish the
tasks.

According to Leiter (2011), job engagement or involvement can be identified in relation to high
level of potential exerted in doing the job in a best way and also having a high involvement in
work assigned to the employees (p. 22). It is broadly accredited that engagement or involvement
of employee comes from the sources such as personality as well as environment (Macey &
Schneider, 2008). Many key characteristics of job are autonomy, related conflicts, demands, and
understanding relations with others at workplace (Schaufeli and bakker 2004, Shirom 2010).
According to Hackman and Lawler (1971), key features of job can precisely influence workers’
attitude at workplace. Hackman and Lawler (1971) also identified the positive reaction of
employees towards autonomy, variety, task identity and feedback. Hackman and Lawler (1971)
also suggested that those employees who are willing to do their best for putting their best
potential in doing a task are high on the core dimensions of autonomy, variety, task identity and
feedback. As a result the employees become motivated and give their best efforts in order to
achieve the organizational goals as well as personal goals, in response the performance improves
and employees keep on giving their best effort to show good results. These employees
continuously work hard to enhance their performance.

2.2. Job Design

JCM with the employees’ perspective for the perceived task Job characteristic model (Hackman
& Oldham, 1975) is commonly used. The model has five important dimensions, which is skill
variety, task identity, task significance, autonomy and feedback.

According to Garg and Rastogi (2005) skill variety is the degree of utilization of different skills
and abilities. Skill variety is the extent of diversity in any task of the occupation (Price &
Mueller, 1986). Researcher argues that the claim for skills in the economy is originated from the
goal /aim requirements related with jobs (Cappelli, 1993).

Skill variety is one factor in the job characteristics model that influences the knowledgeable
meaning of work (Hackman & Oldman, 1980). In research task variety is seen as a number of
different task elements required in the job fulfillment (Harvey, 1991). Task variety possibly will
transmit explicit and declarative knowledge (Pentland, 2003). From the perspective of career
14
literature, an individual in the beginning of his/her career try to discover tasks in which they will
be obtained successful goal (Feldman & Thomas 1992). Individuals dynamically deal with their
career (flexibly career oriented); guest worker sales persons are also expected to perceive that
high job variety (different skill) can be a source to help for their career growth during the
beginning stage of the profession (Baird & Kram 1983). Career advantages will perhaps increase
their job satisfaction, (Flaherty & Pappas 2002). Intrinsic job characteristics, such as

Skill variety and significance of task are normally associated with low absenteeism (Taber &
Taylor, 1990). The research study explore that the skills and knowledge are particular required
by information system (IS) experts to do their job perform effectively.

2.2.1. Task skill

According to Garg and Rastogi (2015) skill variety is the degree of utilization of different skills
and abilities. Skill variety is the extent of diversity in any task of the occupation (Price &
Mueller, 2016). Researcher argues that the claim for skills in the economy is originated from the
goal /aim requirements related with jobs (Ali & Zia-ur-rehman, 2014). Skill variety is one factor
in the job characteristics model that influences the knowledgeable meaning of work (Hackman &
Oldman, 1980).

In research task variety is seen as a number of different task elements required in the job
fulfillment (Gidey, 2016). Task variety possibly will transmit explicit and declarative knowledge
(Achieng et al., 2014). From the perspective of career literature, an individual in the beginning
of his/her career try to discover tasks in which they will be obtained successful goal (Ali & Zia-
ur-rehman, 2014).

Individuals dynamically deal with their career (flexibly career oriented); guest worker sales
persons are also expected to perceive that high job variety (different skill) can be a source to help
for their career growth during the beginning stage of the profession (Baird & Kram 2013). Career
advantages will perhaps increase their job satisfaction, (Flaherty & Pappas 2012). Intrinsic job
characteristics, such as skill variety and significance of task, are normally associated with low
absenteeism (Emmanuel, 2019). The research study explore that the skills and knowledge are
particular required by information system (IS) experts to do their job perform effectively.

15
2.2.2. Task identity

Task identity is the amount to which a job demands for the accomplishment of a given task
that is considered its commencement with the desired outcome and if the task has no identity
than employee will not be motivated for the drama of the task (Paper et al., 2018). Task identity
required a pragmatic action to complete ‘whole’ task; responsibility of job completion of job
from its start to end with visible result. Complex task and difficult goal can better perform due to
the effect of both cognitive and motivational processes(Ralston, n.d.). Researcher emphasized
that skill and knowledge are main requirement of complex task but others have separately
focused on different performance magnitude include in a task (Motlokoa & Sekantsi, 2018).

2.2.3. Task Significance

Some researcher view has given emphasis to psychological implication of complex tasks (Zareen
& Razzaq, 2013). Role of stress has negative relation with sales force job satisfaction because of
role conflict and role ambiguity(Kurdat, 2012). However role clarity have a positive relation with
job satisfaction (Donnelly, James, Ivancevich & John 2015).

Task significance is a very important element of JCM according to study of Hackman and
Oldham’s (1975) is defined as it is the extant in which job has a effect on the life of the people.
Another study describe that the worth of the task depend on internal and external significance. It
maintains that both internal significance that how a task is valuable for the organization and
external significance is equally important(Nana & Achiaa, 2012). The image of job in the minds
of people and employees, bears significant substance to see that how much he feels proud while
describing his job in the public (Garg & Rastogi, 2015).

Standard job performance states the degree to which a management employee accomplish
organizationally prescribed work role prospects (Katz & Kahn, 1966). In order to get efficiency
at workplace, inventive job performance considered as critical element for organizations(Ali &
Zia-ur-rehman, 2014). Long overdue, job performance theories have finally originated to mark
their contribution in the executive literature (Motowidlo, Borman, & Schmit, 2017). Activation

16
theory proposes that transitional rather than low or high levels of quantifiable job demands
benefit job performance and job satisfaction amongst managers (Gardner, 2016).

Managers perform better and feel more pleased in response to transitional levels of job demands
wherever they recognize effort-reward fairness than managers who recognize "under reward
unfairness (Janssen, 2011).

Task significance is a very important element of job characteristics model according to study of
Hackman and Oldham’s (1975) is defined as it is the extant in which job has a effect on the life
of the people. Another study describe that the worth of the task depend on internal and external
significance. It maintains that both internal significance that how a task is valuable for the
organization and external significance is equally important. The image of job in the minds of
people and employees, bears significant substance to see that how much he feels proud while
describing his job in the public (Garg & Rastogi, 2015). Standard job performance states the
degree to which a management employee accomplish organizationally prescribed work role
prospects (Katz & Kahn, 2016). In order to get efficiency at workplace, inventive job
performance considered as critical element for organizations (Kanter, 2018). Long overdue, job
performance theories have finally originated to mark their contribution in the executive literature
(Motowidlo, Borman, & Schmit, 2017).

2.2.4. Task Characteristics

Research in psychology and organizational behavior proposes that individual job performance’s
effect by characteristics of the work environment might, in turn, interact with employees'
personal characteristics (Hyatt & Prawitt, 2011). When we observe the analysis based on the
total population, it provides no valid and precise results as analyses of the job characteristics-
performance relationships in different situations or varying subcategories in the population
provided(Aroosiya, 2017).

All the job characteristics except for feedback from coworkers and from others are positively
correlated to the measures of satisfaction and performance (Brass, 1981). Good training and

17
development creates learning organizations, resulting in quantifiable performance and enhance
organizational performance (Niazi, 2018).

Task autonomy is extent in which an individual given a freedom, choice and liberty to
precede a task, such as self time management for a task and the way to be done (Hackman,
1980). Lawler, Mohrman, and Ledford (2015) was claim that Task autonomy and related forms
of employee contribution in the task were found effective in ninety percent of Fortune companies
out of one thousand. If the task autonomy was given to the employee, it may see wonderful
results and the high level of satisfaction and performance (Dwyer, Schwartz, & Fox, 2012).

Empirical evidence had been found that both autonomy need and achievement need manipulate
on the individuals’ responses to task autonomy (Orpen, 1985). The higher degree of control a
person has over his job will lead to the higher level of satisfaction and performance because the
work shows his own decisions (Paper et al., 2018).

2.2.5. Task Feedback

Nancy and Daniel (2016) conclude that remarkable improvement can be seen with the immediate
impact of both, the feedback and the workers' ability to structure the work, whether working
independently or in teams. Certain jobs and goals setting can enhance the level of performance
and the design job can increase satisfaction at the same time, the quality of performance as well
(Garg & Rastogi, 2005). Evidence found that representing that task-related feedback is positively
correlated with motivation, satisfaction, and performance in virtual teams (Geister, Konradt &
Hertel, 2016).

In the current study we test the following hypothesis in the context of Pakistani organization.
Performance measurement is seen as a tool for feedback in the management paradigm, which in
turn acts as a contrivance for program improvement (Mausolff, 2017). In order to enhance
individual performance, feedback channels play significant part in organizations (Elkins &
Phillips, 2017).

Moreover, this feedback can yield productive result in the development of employees’ attitudes
and conduct (Lam, Yik & Schaubroeck, 2012). Favorable feedback can be taken as an additional
motivation in employees to accomplish their career targets (Lowry, 2014). Feedback is an

18
important job characteristic that boosts a person intellectual ability of the mind and
used to control his or her behavior by having internal control over it. Self-control Lets a person
to monitor and control his/her behavior by their own With the rise of organizational learning as a
management paradigm, there is greater interest in the potential of performance measurement to
function as a feedback contrivance for program improvement (Mausolff , 2014).

Educating individuals with performance feedback is beneficial to both organizations and


individual’s performance (Grant et al., 2010). Performance feedback can play a vital role in the
enhancement of employees’ attitudes and behaviors. Favorable feedback contributes towards an
additional motivation in employees to achieve their career goals (Lowry, 2014). Feedback thus is
a consequence of performance (Hattie & Timperley, 2017).

Feedback is vital to learning. Simple task repetition is not an effective strategy, unless having
knowledge of results (Thorndike, 1931). Managers received hostile feedback for job demands
and negative outcomes as compared to managers who had not received hostile feedback
(Emmerik, Bakker, Martin & Euwema, 2018). Employees can better contribute in goal
performance and in the exploitation of plans through positive and constructive feedback.
Employees contributes towards training in a reasonable & effective way if employees equip
through knowledge of what standard performance is all about & then compare it with standard,
via assessment and feedback (Sudrat, 2019).

People, who receive positive feedback, try it to do the same thing again and again as to those
who receives negative feedback and they are unlikely to try it again and perhaps discover new
approaches. Sometimes receiving feedback often originally provoked an inundation of emotions
by damaging their self-respect and sometimes forcing them to confront some of their deepest
worries and lack of confidence.

Performance feedback can play a vital role in the enhancement of employees’ attitudes and
behaviors. Favorable feedback contributes towards an additional motivation in employees to
achieve their career goals (Lowry, 2014). Feedback thus is a consequence of performance (Hattie
& Timperley, 2017). Feedback is vital to learning. Simple task repetition is not an effective
strategy, unless having knowledge of results (Thorndike, 2011). Managers received hostile
feedback for job demands and negative outcomes as compared to managers who had not received
hostile feedback (Emmerik, Bakker, Martin & Euwema, 2018). Employees can better contribute

19
in goal performance and in the exploitation of plans through positive and constructive feedback.
Employees contributes towards training in a reasonable & effective way if employees equip
through knowledge of what standard performance is all about & then compare it with standard,
via assessment and feedback (Kluger & DeNisi, 20166). People, who receive positive feedback,
try it to do the same thing again and again as to those who receives negative feedback and they
are unlikely to try it again and perhaps discover new approaches. Sometimes receiving feedback
often originally provoked an inundation of emotions by damaging their self-respect and
sometimes forcing them to confront some of their deepest worries and lack of confidence.

2.3. Employee motivation

Research on motivation in construction companies is scant and in Portugal non-existent. Lim and
Ling argue in their study that it is important for contractors to establish a satisfactory working
environment and that there is a correlation between job satisfaction and practices such as valuing
employees’ efforts, involving them in making key decisions, allocating workload appropriately,
applying a method of performance appraisal and adopting an adequate organizational structure
(Luthans et al., 2017).

In Taiwan, Liao, Wen and Yu stress that job commitment is a mediating factor through which
job characteristics influence job satisfaction (Taiwan, Liao, Wen & Yu, 2016). Tabassi, Ramli
and Bakar show that implementing practical training and motivation leads to improvements in
teamwork and efficiency in performing tasks (Taiwan et al., 2016). In the USA, Dai, Goodrum
and Maloney studied construction workers’ perception of factors affecting their productivity,
thus approaching motivation indirectly (Taiwan et al., 2016).

They conclude that the factors that most affect their productivity involve tools, supplies,
materials, project management and construction equipment. In the civil construction sector in
Portugal, numerous articles and studies have been published in the field of construction
management. However, their main focus lies on areas such as risk management, quality
management, waste management, conflict management, management of public-private
partnerships, yard management (Luthans et al., 2017).

In summary, as far as human resource management in construction companies is concerned, and


in particular management of employees’ motivation, very little research has been conducted. The
20
present work aims to make a step in that direction (Luthans et al., 2017). Supported by the
broader review outlined above and in the light of the different theoretical analyzed approaches, it
will characterize motivation management practices in the construction sector in Portugal,
contributing to the general discussion of this subject.

Motivation and performance

Employees are capable of performing at high levels when motivated to do so; and when workers
are treated with respect, commitment to the organization and trust in management are increased,
leading to increased performance (Turner & Lawrence’s, 2019). Job content and satisfaction, a
sense of participation and/or responsibility, perceived status of workers and a sense of
achievement motivate workers to perform at peak levels (Turner et al., 2019). Unavailability of
transportation and payment delays negatively affect laborers’ mood/morale and reduce productivity
(Turner et al., 2019).

2.4. Employee Performance

Performance can be considered as an evaluation of how well individuals, group of individuals,


organizations or systems have done in pursuit of a specific objective. These objectives vary
significantly, but from an organizational perspective, they generally revolve around satisfying
the key stakeholders, notably customers, employees, shareholders, the various suppliers,
government and society as a whole.

Mullins (2015) described performance as relating to such factors as increasing profitability,


improved service delivery or obtaining the best results in important areas of organizational
activities. Performance in the construction context may be approached from two perspectives;
the first relating to the business performance of organizations and the second relating to project
performance. The former is normally assessed using financial results and ratios, and productivity
figures (Mbugua, 2010). Other more comprehensive self-assessment tools such as the balanced
scorecard (Kaplan & Norton, 2012), pyramid of measures (Lynch & Cross, 2015) and the
business performance measurement framework (Mbugua, 2010) are also available for use in
assessing the business performance of construction organizations. In many cases, references to

21
performance and research in this genre have been focused on project performance (Soetanto et
al., 2011).

Primarily, this can be linked to the characteristics of the industry whereby each project can
represent a major part of a contractor’s annual turnover, and can be the ultimate determinant of a
construction organization’s business performance. References to performance in this review
therefore generally relate to project performance, and to the extent to which performance
measures are met(Xiao & Proverbs, 2013).

2.3.1. Measuring Performance

Amaratunga and Baldry (2012), in a review of the subject of performance measurement,


suggested that it was a topic which was often discussed but rarely defined. In that review,
performance measurement was projected as the process of ensuring that an organization pursued
strategies that led to the achievement of overall goals and objectives. More appropriately it has
been defined as the process of quantifying the efficiency and effectiveness of an action taken
(Neely et al., 2017), for instance by an organization.

It has also been defined simply as the systematic assignment of numbers to entities or activities
and the recording of business activity to provide a stimulus for action that would facilitate
continuous improvement (Zairi, 2012). In a construction project context, it is regarded as a
systematic way of judging project performance by evaluating the inputs, outputs and final project
outcomes (Takim et al., 2013). Measurement is important because it is a means of generating
data that could find useful application in a wide variety of problems and situations. Its purpose is
to provide timely and accurate feedback on the efficiency and effectiveness of operations and to
focus attention on continuous improvement (Amaratunga & Baldry, 2012).

Through this function, it acts as a key factor in supporting and ensuring the successful
implementation of an organizations’ strategy (Fiztgerald et al., 2012 in Amaratunga & Baldry,
2012; Costa and Formoso, 2014). According to Zairi (2012) and Kaplan and Norton (1996) “if
you can’t measure it, you can’t manage it.” It provides necessary information for process control,
and also enables an organization to establish challenging but feasible goals (Costa & Formoso,
2014).

22
With regards to the business of construction, Cain (2014) argued that the only way that prices
could be seriously reduced, profit margins seriously raised and the out-turn costs kept within
budget, is by the elimination of unnecessary costs caused by the ineffective and inefficient
utilization of labor and materials.

These unnecessary costs can however only be eliminated if their causes can be located, and
performance measurement provides the means by which these unnecessary causes of waste can
be identified so that the organization knows where to focus its efforts (Cain, 2004). Quite clearly,
it is a critical means to the end of achieving continuous performance improvement in
construction project delivery. It may be a “complex, frustrating, difficult, challenging, abused
and misused” process (Sink, 2011), but as appropriately pointed out by Cain (2014), “if you
don’t know how well you are doing, how do you know you are doing well?”

2.3. Empirical review

A study conducted by entitled “Impact of Job Design on Employee Performance, Mediating


Role of Job Satisfaction” Conducted by Ali & Zia-ur-rehman, (2014) intends to measure the
effect of job design on employee performance while the mediation effect is job satisfaction,
although the job design has several methods but we use JCM model (Oldman & Hackman,
1976), which has five dimensions of Job Characteristics Model (skill variety, task identity, task
significance, job autonomy and feedback) on employee performance. We have conducted this
survey because nearly all companies working in FMCG industry are multinational; they are
following the same procedures and policies of their parent company with minute change
accordingly Quantitative method of research was adopted and received 90% responses out of 150
sample size.

Findings of this research indicate a positive relationship between job design and employee
performance. While the mediating effect of Job satisfaction is also found having a positive effect
on employee’s performance. Organizations always have quest of finding the unique ways in
order to enhance the performance of the employees, this research would help to analyze that how
an adequate job design would help to increase the employee performance.

23
Another study conducted by Malkanthi, ( 2016) aimed to analyze the impact of Job Design on
Employees’ Performance in People’s Banks of Ampara district. To analyze this condition, one
hypothesis was formulated. The study was conducted by using a random sample of ten branches
of People’s banks of Ampara district. Respondents for the investigation are Customer Service
Assistants and Staff Assistants in each branches. There are two main variables in the study such
as Job Design as an independent variable and Employees’ Performance as dependent variable.
Skill Variety, Task Identity, Task Significant, Autonomy and Feedback are dimensions of the
Job Design and trait based performance, behavior based performance and result based
performance are measurements of the Employees’ Performance. Data were collected from 54
respondents.

In order to test the hypothesis researcher concentrated on relationship testing based on


calculating Pearson correlation. The result of the study showed a positive relationship between
Job Design and Employees’ Performance in Peoples’ Banks of Ampara district. The study found
that relationship was significant (correlation coefficient was 0.958, that was significant at 0.01
level) implying that each branches should adopt an effective Skill Variety ,Task Identity, Task
Significant , Autonomy and Feedback in order to improve employees’(Customer Service
Assistants and Staff Assistants) performance and the degree of quality level of Job Design and
Employees’ Performance are moderate level as the Mean values for job design and employee
performance are 3.7179 and 3.7833 respectively. The study suggests that improving Job Design
factors to upgrade the employees’ Performance is essential.

Another study conducted by Shane, (2014) indicated that both in the public and private sectors, the
process of evaluating job performance can appear highly subjective and conditioned upon
personal tastes, biases, prejudices, philosophies and management styles. Widespread perception
that evaluations are based on criteria irrelevant to merit can adversely affect the morale and
productivity of employees. Because it is the largest provider of services, the public sector is even
more reliant on the performance of its employees. So, it is critical that performance appraisal
systems be considered legitimate by public sector employees. Yet, rarely are job performance
appraisal systems designed with any input from their users. Job descriptions, on the other hand,
are typically designed by human resource managers in conjunction with end-users, including
management and their subordinates. Overall, the difficulty of designing an appraisal system in a

24
public sector organization that is, one, closely tailored to job descriptions and, two, represents an
objective, not an arbitrary and capricious, measure of employee performance, is a matter of much
concern. The thesis of this paper is that job performance appraisal systems ought to be
cooperatively designed by managers and their subordinates in much the same way that job
descriptions are. If the evaluative instrument is a product of such collaboration, employees who
are regularly evaluated will be more likely to agree that the results fairly and objectively measure
their performance.

2.3. Conceptual framework of the study

Task skill Employee


Motivation
Task Identity
path ‘a’ ‘a’ ‘b’

Task significance Job Design Employee


‘c’
Performance

Task characteristics/
autonomy

Task feedback

Source: adopted from Hackman & Oldham, (1975)

Where
 a is effect of job design on employees motivation
 b is effect of employees motivation on employees’ performance
 c is direct effect of job design on employees’ performance

25
2.4. Hypothesis of the study

The effects of Job design on employee motivation (path ‘a’)

Ha= Task skill has a positive significant effect on employees’ motivation

Hb= Task identity has a positive significant effect on employees’ motivation

Hc= Task significance has a positive significant effect on employees’ motivation

Hd= Task characteristics/ autonomy has a positive significant effect on employees’ motivation

He= Task feedback has a positive significant effect on employees’ motivation

The effects of employees motivation (Mediator) on employees’ performance (dependent


variable) (Path ‘b’)

Ha= Employee motivation has a positive significant effect on employees’ performance.

2.4.3. The direct effects of job design on employee performance (Path ‘c’)

Ha= Task skill has a positive significant effect on employees’ performance

Hb= Task identity has a positive significant effect on employees’ performance

Hc= Task significance has a positive significant effect on employees’ performance

Hd= Task characteristics/ autonomy has a positive significant effect on employees’ performance

He= Task feedback has a positive significant effect on employees’ performance

2.4.4. Mediated effects

 H4= Employees motivation mediates the link between of job design and employee
performance.

26
CHAPTER THREE: RESEARCH METHODOLOGY

3.1. Research Approach

The research approach that employed in this study was quantitative research approach.
Quantitative aspects which focus information with numeric nature and select to address the
research objective that aims to investigate the existing problem or situations through provision of
questionnaire to respondents.

Quantitative approach was used in order to produce statistical data and measure the responses of
the respondents for achieving each objectives and hypothesis of the study. In quantitative
approach, the researcher tested a theory by specifying the study hypotheses and employed
strategies of inquiry through surveys and collect data on predetermined instruments that yield
statistics data (Creswell, 2003).

The rationale for selection of quantitative method was mainly because the study designed to
examine the indirect effects. As a result, answering research hypothesis through quantitative
methods is essential. In addition, the study collected data based on questionnaire the data type
that was acquired based on questionnaire was closed ended and as a result these types of data is
appropriate for quantitative data analysis methods.

3.2. Research Design

This study employed a cross sectional survey research design. A survey is suitable when
descriptions events or opinions rather than manipulation of variables are intended (Oso & Onen,
2009). The variables under investigation in this study were job design, employee motivation and
performance of employees. It was therefore necessary to describe them as they are. It is with this
intention to describe “variables as they are” that made the cross-sectional survey the ideal design
for this study. The cross-sectional survey design was also used here because the responses of the

27
employees were taken at a single point in time by making use of the items or questions that was
provided in the questionnaire.

The study considers this design appropriate since it facilitated towards gathering of reliable data
describing the impacts of job design on employee motivation and job performance, a case study
Dashen bank .plc Gondar districts.

3.3. Population and Sampling Design

3.3.1. Target population

In the study all of the employees in Dashen bank Gondar district were used as a total population
of the study. In the district the bank has 947 employees who are working as manager officer, and
clerical positions and these were the major target population of the study.

3.3.2. Sample Size

The study determined the sample size considering the total population of the study employees
who are working in the selected branches (974) and then using the formula of Yemmane Taro
1987 (Fowler,2002):

So the formula is: n ,

n=total sample size,

N=total population (employees) in the study area,

e=precision degree/ error (5%=0.05).


Therefore,
n= ___974____
1+974 (0.05) 2

n= ___974____
1+974 (0.0025)

28
n= ___974____ =283
3.435

As a result of this, the sample size was 283.

3.3.2 Sampling technique

The study applied a random sampling technique to select a sample size which is helpful on to
select representative employees from each branch. Sampling technique is the actual procedure
followed to obtain the individual members of the sample to represent the population (Oso &
Onen, 2009). The study applied a simple random sampling technique to select a sample. Simple
random sampling technique is considered appropriate since it gives respondents an equal chance
of being selected as a study respondent in each and this it has no bias and eases generalization of
the obtained findings.

However, in order to select respondents in each branch the study selected respondents in each
branch in a proportionately; this was employed in order to determine the proportionate sizes of
employees from each bank that were included in the sample.

3.4. Source of Data and Collection Methods

3.4.1. Sources of Data

In order to gather sufficient information in relation to the problem under the study, the
researcher used primary as well as secondary data sources. The study was conducted by using
the survey method of research. The secondary data was also collected from both published and
unpublished references including the annual report of the Dashen bank. The researcher also
gathered data from the websites along with different related studies.

3.5. Data Collection Instruments

The research gathered data by using standardized questionnaire that was adopted from different
literatures.

29
3.5.1. Questionnaire

The questionnaire is one of the main tools for collecting data from the respondents. The type and
design of the questionnaire that was used depending on the study carried out. The researcher
used standardized questionnaire as the main tool to collect data from the respondents. The
researcher distributed and collect the questionnaires from employees of Dashen bank.

The questionnaire was adopted from Job design characteristic models available from Hackman &
Oldham, (1975), task identity, task feedback and task significance while task characteristics and
task skill constructs and their factors were adopted from Garg and Rastogi (2005) and Cappelli,
(1993) respectively.

On the other hand the questions with regard to employee motivation and performance was also
adopted from Barbara, Adams, Sonya Waldherr and Jessica(2008). Manual for Administration
and Analyses of Motivation and performance Scale publications.

Before actual administration, these instruments were tested to check the reliability and validity of
questionnaire items. Accordingly, data was collected using the likerts five-point scale adopted
from the literatures which produced highly reliable results.

3.6. Data Analysis Techniques

The study data was processed using Statistical Package for Social Science (SPSS) version 20 and
SPSS AMOS V22 to model the mediation role of all the selected variables. To analyses the
effects of job design on employees’ performance through the mediation of employees’
motivation, the study was Amos V22, which uses a regression-based approach to mediation.

Quantitative data that was collected through questionnaire was analyzed by inferential statistical
analysis techniques. In addition, descriptive statistics such as mean and frequency were used to
analyze the demographic characteristics of the respondents.

On the other hand, mediation model was also used in order to test the indirect effects of job
design on employee performance through motivation. Bootstrapping value was used to examine
whether or not motivation mediates the effects of job design on performance in the study area.

30
In order to compute the mediation analysis, the study used AMOS 22 to model the mediation
effects and to conduct Confirmatory factor analysis (CFA). Moreover, the discriminant and
convergent validity as well as reliability of the instrument was calculated from the coefficients
accessed from Amos by using Microsoft excel.

3.7. Ethical Considerations

In the process of the study, the following ethical issues were considered. In order to obtain an
informed consent from the respondents, the purpose of the study explained clearly. Employees
and managers were asked to give their informed consent orally before filling out the
questionnaire or participating in providing evidence. Information obtained from the respondents
has been promised to be kept confidential. Necessary efforts were made so that the languages in
the data collection tools considering the culture, religion and the comprehending level of the
respondents.

31
CHAPTER FOUR: RESULTS AND DISCUSSIONS

4.1. Demographic Characteristics of Respondents

The study primarily targeted 283 respondents but 263 respondents completed the questionnaire
successfully with a response rate of 92.9%. This was due to 6 questionnaires were incomplete
while 14 questionaries’ were not returned successfully.

Table 4. 1 Demographic characteristics of respondents


Frequency Percent
Sex Male 182 69.2
Female 81 30.8
Total 263 100.0
Age 20-29 68 25.9
30-39 124 47.1
40-49 46 17.5
50 & above 25 9.5
Level of education Diploma or Certificate 8 3.0
1st Degree (Bachelor) 177 67.3
2nd Degree (Master) 63 24.0
Above 2nd Degree 15 5.7
Experience Less than 1 year 22 8.4
1-2 years 49 18.6
3-4 years 60 22.8
More than 4 years 132 50.2
Source: researchers survey, 2021

As can be seen from above table above, among all the sampled employee participants, 182(69.2
%) were males and 81(30.8%) were female. From the result it can be seen that, male employee

32
constitutes twice of all the sampled participants in the study area. Here we can say that majority
of the study respondents participated in providing information to the study were males.

Of those completing the survey 68 (25.9%) were aged between 20 and 29, the majority i.e 124
(47.1%) aged between 30 and 39, 46(17.5%) aged between 40 and 49 and the remaining
25(9.5%) were aged 50 and above years.

As the above table shows, of those completing the survey 8(3%) were Diploma or Certificate,
177(67.3%) had first Degree or Bachelor, 63(24%) were second Degree (Master), while the rest,
15(5.7%) of the respondent were had above second Degree. Here, the survey result further
indicated that, most of the sample employees were first Degree or Bachelor.

As table above indicates, respondents were requested to indicate their work experience in the
organization. The percentage of respondents having been working as an employee in the study
area for less than one year is 8.4 %. Those who are working for 1 to 2 years, and 3 to 4 years
account for 18.6% and 22.8% respectively. While the remaining 50.2% have been working in the
organization for more than four years’.

Occupational position of respondents


Respondents who participated in the study have different positions. Accordingly the result is
presented with the figure below.

33
From the result above the study confirmed that 29% of respondents’ occupational position was
managers, while 71% of respondents’ position were clerk.

4.2 Confirmatory Factor Analysis

4.2.1. Test of regression assumptions

Normality of the data

The assumption of normal distribution of the data was examined. The overall distribution is
presented with the histogram below.

Figure 1 Normality Histogram


The histogram presented compares the distribution of the residuals to normal distribution curve.
From the figure it can be seen that, the frequencies of the residuals are close to the normal curve.
This indicated that, the distribution of the residuals is to the normal and thus the assumption of
normality was not violated extremely. This can be also verified via the p-plot presented below

34
Again, from the p plot result from the chart above, it can be seen that, the observed cumulative
probabilities of the residuals are close to the line. This indicated that the distribution of the
residuals is close to the normal distribution. From this it can be inferred that that the data has not
violated the assumption of normality extremely.

Linearity of the data

If the job design on employee performance are linear then there should be no relationship
between the predicted values of job design and their corresponding residuals. Thus, a useful
diagnostic is to plot the standardized residuals against the standardized predicted values. The
results of the standardized residual and predicted value are presented with the figure below.

35
Figure 2 Scatter plot
The figure above, indicated that there was no evident pattern that, standardized residuals and
predicted values were fluctuating around zero for all values. This shows that, the assumption of
linearity was not violated. Thus, the dependent variable of employee performance had a linear
relation with the independent variable job design.

Multicollinearity issues to the data

Looking at the Coefficients table, it can be seen that multi-collinearity is not also a problem to
the data. The result indicated that all tolerance values are above 0.40; all VIF values are below
2.5. Thus from the result (Table below.) it can be seen that none of the tolerance and VIF values
are below the lower 0.4 and above 2.5. Thus, from the output, multi-collinearity does not appear
to be an extreme concern here.

Table 4. 2 Multicollinearity statistics


Collinearity Statistics
Tolerance VIF
Task skill 0.6775 1.476
Task identity 0.7057 1.417
Task significance 0.7435 1.345
Task characteristics 0.5737 1.743
Task feedback 0.7257 1.378
Motivation 0.9425 1.061

36
Source: researchers survey, 2021

This is also supported by Alison (2014), multi collinearity is not an issue when for none of the
explanatory variables have the values of tolerance below 0.4 nor are any values of VIF above 2.5
(Alison, 2014).

Confirmatory factor analysis

The various construct (scale) measures used in this study were assessed in relation to reliability
and validity. This first step in statistically assessing the scale measures involved employing
Confirmatory Factor Analysis (CFA) to assess model fit.

4.2.2. The model fit

The thresholds below are simply a guideline. For more contextualized thresholds, the study used
the table below in Hair et al. 2010. The thresholds listed in the table below are from Hu and
Bentler (1999) as cited in Hair et al., (2010). The acceptable thresholds are presented below.

Table 4. 3 thresholds used as a guideline to model fit

Based on the above threshold the study examined the model fit and the validity and reliability of
the questionnaire and firstly the CFA for each of constructs such as job design, motivation and
employee performance was examined and finally the overall model fit for all of the factors is
presented.

37
4.2.3. Confirmatory factor analysis for each of constructs

Constructs of job design


The study examined the constructs of job design. As a result, to conduct this model fit, 15
numbers of distinct parameters were used. And the CFA Analysis with the loadings are presented
below.

Figure 3. CFA Constructs of Job Design


Based on the above computation the study evaluated the model fit parameters for the job design
dimensions. Accordingly, whether or not the values of GFI, AGFI, and X2, all met the
recommended minimum thresholds was examined and the result is presented below.

Table 4. 4 Model Fit Indices for job design constructs

n Model Value P
1 Chi- square 4.615 0.267

38
2 GFI 0.9516
3 AGFI 0.9211
4 CFI 0.9761
5 RMSEA 0.0101
Source: researchers survey, 2021

In this stage, several criterions were considered for assessing the structural model and making
sure that it fits the data well. As per above table the model fit indices results revealed that X 2 =
4.615, GFI = 0.9516, AGFI = 0.9211, CFI = 0.9761 and RMSEA = 0.0101 indicating that the
structural model achieved adequate fit for the data and the data fulfill the assumptions of model
fit. As shown in the above figure, the fit criterion for the structural model achieved the
recommended values as suggested by Hair et al. (2010);

Convergent validity and discriminant validity

The convergent validity was also tested by using the Amos regression estimates and the
covariance’s. after having these values, the study used excel to calculate the average variance
(AVE) values. And the results are presented with the table below.

Table 4. 5 Convergent Validity, Discriminant Validity and Reliability

Sn Variables CR AVE MSV ASV


1 Task skill 0.91 0.81 0.61 0.59
2 Task Identity 0.81 0.84 0.79 0.77
3 Task Significance 0.86 0.69 0.44 0.42
4 Task Characteristics 0.81 0.66 0.42 0.39
5 Task Feedback 0.91 0.81 0.43 0.42
Source: researchers survey, 2021

Convergent validity was determined by calculating the average variance extracted (AVE)
value of the construct. Hair et al. (2000) suggest this value to be higher than 0.50, indicating that
more than half the variance of the indicators is explained by their construct. From the table above
the result of AVE revealed that task skill (0.81), task identity (0.84), task significance (0.69),
task characteristics (0.66) and feedback (0.81) estimates. From the above result it can be seen

39
that none of the AVE coefficients were below 0.5; this implies that more than half of all of the
variables presented above explained their constructs.

Discriminant validity check is done by comparing the AVE’s with MSV and ASV values of each
of the constructs. As a result, the construct is truly distinct from other constructs was also
examined in order to evaluate the discriminant validity of the datasets. The result presented with
the table above revealed that all the AVE values are greater than the Maximum Shared Variance
(MSV) and the Average Shared Variance (ASV) coefficients. Hence this analysis showed that
the shared variance between factors were lower than the AVE’s of the individual factors, which
confirmed discriminant validity.

Moreover, in order to evaluate the reliability of the questionnaire items, Hair et al. (2006)
however, proposed the use of construct reliability (CR) in conjunction with structural equation
modeling models, rather than the traditional coefficient alpha. Therefore, the study used CR
values and the construct reliability coefficients revealed that none of the variables exhibited
below 0.7 reliability coefficients.

Constructs of Employee Motivation

Similar to the above the study also examined the constructs of employee motivation. The CFA
Analysis with the loadings for employee motivation is presented below.

Figure 4 CFA Constructs of Motivation

40
Similar to the above computation the study also evaluated the model fit parameters for the
employee motivation constructs. Accordingly, whether or not the values of GFI, AGFI, and X 2,
all met the recommended minimum thresholds was examined and the result is presented below.

Table 4. 6 Model fit for employee motivation constructs

Sn Model Value P
1 Chi- square 1.325 0.147
2 GFI 0.9641
3 AGFI 0.9010
4 CFI 0.9132
5 RMSEA 0.0041
Source: researchers survey, 2021
As per above table the model fit indices results revealed that X2 = 1.325, GFI = 0.9641, AGFI =
0.9010, CFI = 0.9132 and RMSEA = 0.0041 indicating that the data achieved adequate fit for the
study.

Convergent validity and discriminant validity

The convergent validity was also tested by using the Amos regression estimates and the
covariance’s. after having these values, and the result are presented with the table below.

Table 4. 7 Convergent Validity, Discriminant Validity and Reliability motivation construct

Sn Variables CR AVE MSV ASV


1 Employee Motivation 0.83 0.76 0.41 0.40
Source: researchers survey, 2021

In order to evaluate the convergent validity, the table above in column AVE revealed that
employee motivation have 0.76 AVE estimate. From the above result it can be seen estimate of
AVE for motivation construct is above 0.5; this implies that more than half of all of the observed
factors presented above explained their constructs.

Discriminant validity check was also checked by comparing the AVE’s with MSV and ASV
values of each of the constructs. The result presented with the table above revealed that the AVE
value is greater than the Maximum Shared Variance (MSV) and the Average Shared Variance

41
(ASV) coefficients. This analysis showed that the shared variance between factors were lower
than the AVE’s of the individual factors, which confirmed discriminant validity.

Moreover, in order to evaluate the internal consistency of the reliability of the questionnaire
items, the study used CR value and the construct reliability coefficients revealed that CR value is
above 0.7 implying that the items are reliable.

Construct of Employee Performance

To evaluate the fit for the dependent variable the study result confirmed a model fit, 9 numbers
of distinct parameters were used. And the CFA Analysis with the loadings are presented below.

Figure 5 CFA Constructs of Employee performance


Again based on the above the CFA result the study evaluated the model fit parameters for the
employee performance. Accordingly, whether or not the values of GFI, AGFI, and X 2, all met
the recommended minimum thresholds was examined and the result is presented below.

Table 4. 8 Model Fit Indices for employee performance constructs

Sn Model Value P
1 Chi- square 3.978 0.067
2 GFI 0.9531
3 AGFI 0.8561
4 CFI 0.9541
5 RMSEA 0.0093

42
Source: researchers survey, 2021

As per above table the model fit indices results revealed that X2 = 3.978, GFI = 0.9531, AGFI =
0.8561, CFI = 0.9541 and RMSEA = 0.0091 indicating that the data achieved adequate fit for the
study.

With respect to convergent validity and discriminant validity, similar to the above the convergent
validity was also tested by using the Amos regression estimates and the covariance’s. after
having these values, and the result are presented with the table below.

Table 4. 9 Convergent Validity, Discriminant Validity and Reliability for performance


construct

Sn Variables CR AVE MSV ASV


1 Employee Performance 0.79 0.84 0.51 0.49
Source: researchers survey, 2021
Similar to the above two constructs, in order to evaluate the convergent validity, the table above
in column AVE revealed that employee performance have 0.84 AVE estimate. From the above
result it can be seen estimate of AVE for employee performance construct was also above 0.5;
this implies that more than half of all of the observed factors presented above explained their
constructs.

Discriminant validity check is done by comparing the AVE’s with MSV and ASV values of each
of the constructs. The result presented with the table above revealed that the AVE value is
greater than the Maximum Shared Variance (MSV) and the Average Shared Variance (ASV)
coefficients. This analysis showed that the shared variance between factors were lower than the
AVE’s of the individual factors, which confirmed discriminant validity. Moreover, in order to
evaluate the reliability of the questionnaire items, the study used CR value and the construct
reliability coefficients revealed that CR value is above 0.7 implying that the items are reliable.

43
4.2.4. Overall Confirmatory Factor Analysis (CFA)

The aim herein was to test whether the pre-specified structure of constructs influences responses
in a predicted manner, and this determined if the measurement model adequately fits the set of
data being evaluated. The CFA permits methods of analysis to affect the measures of construct to
varying degrees and to correlate freely amongst itself, which as a result produces valuable
information about the measurement properties of instruments.

In order to ascertain the fitness of the measurement model, the CFA uses different tests, such as
CMIN (normed Chi-Squared/df), GFI (Goodness of fit), CFI (Comparative Fit Index), RMSEA
(Root Mean Square Error of Approximation) and the size of the loading of factors presenting the
constructs in order to estimate convergent and discriminatory validity more accurately. As a
result, the use of CFA was suitable for verifying the validity of the measurements adopted in this
study, moreover the study relied upon suggested various fit indices in extant literature Ockey and
Choi (2015:307). Thus the result of the overall CFA is presented below. Accordingly the result is
presented with the Figure below.

44
Figure 6 CFA Constructs of for all Constructs

The assessment of variables, as shown in figure above, was conducted to ascertain the validity of
the measurement model.

45
The Model fit indices
In doing so, the fit indices of the existing variables in the measurement model were assessed. The
value of RMSEA (0.0201) was exactly within the recommended threshold of <0.05 and meets
the recommended threshold.

Table 4. 10 Model Fit Indices for all constructs

Sn Model Value P
1 Chi- square 1.25 0.157
2 GFI 0.9127
3 AGFI 0.8978
4 CFI 0.9629
5 RMSEA 0.0201
Source: researchers survey, 2021
Moreover, the values of GFI (0.91), AGFI (0.8978), and CMIN/DF (1.250), all met the
recommended minimum thresholds. From the result it can be seen that all the fit indices met the
recommended minimum threshold, the all of them are found in the acceptable range. Arguably, it
could be said that the model was reasonably fit for the study.

Discriminant and convergent Validity

An assessment of discriminant and convergent validity of the all the job design, motivation and
employee performance values are also exhibited with in the acceptable thresholds. The results of
AVE, CR and MSV are presented with the following table.

46
Table 4. 11 Convergent Validity, Discriminant Validity and Reliability for all construct

Sn Variables CR AVE MSV


1 Task skill 0.79 0.87 0.48
2 Task Identity 0.75 0.79 0.37
3 Task Significance 0.77 0.67 0.35
4 Task Characteristics 0.81 0.69 0.38
5 Feedback 0.86 0.78 0.42
6 Employee Motivation 0.83 0.91 0.39
7 Employee performance 0.81 0.90 0.37

Moreover, the study also revealed that the AVE values are also above the recommended value of
0.5, the individual items remain strong indicators of the construct being measured. Given that the
measurement model has been extensively used by a number of researchers (Jabeen, Behery, &
Elanain, 2015), the constructs were retained and regarded as proxy measures for job design,
motivation and employee performance respectively. Thus, the individual construct fit statistics
for the measured and unobserved variables showed acceptable convergent and discriminant
validity traits.

The Coefficient alphas measure the unique and common item variance in a scale and not what
that common variance consists of (Gerbing & Anderson, 1988). Therefore, in multidimensional
scales, one cannot rely on the traditional coefficient alphas (Lee & Hooley, 2005). Hair et al.
(2006) however, proposed the use of construct reliability (CR) in conjunction with structural
equation modelling models, rather than the traditional coefficient alpha. Therefore, the study
used CR values and the construct reliability coefficients revealed that none of the variables
exhibited below 0.7 reliability coefficients.

In general, the rules of thumb for construct validity (Hair et al., 2006) are: a) standardized
loading. Estimates of 0.5 or higher, and ideally 0.7 or higher; the average variance extracted
(AVE) of 0.5 or greater to suggest adequate convergent validity and a construct reliability of 0.7
or higher to indicate adequate convergence or internal consistency were suggested. Thus from
the results the study data was found in the acceptable range.

47
4.3. Mediation analysis to examine the effects of Job design, Employee motivation
and Employee performance

Before conducting the Mediation analysis, the Baron and Kenny (1986) assumptions were tested.
Accordingly, the major assumptions and the results of the assumptions are presented in the
following section.

4.3.1. Test of preconditions set by Baron and Kenny (1986)

The first step is to determine whether the preconditions set down by Baron and Kenny (1986) are
met, namely,

Precondition One

The predictor variable (X) is significantly associated with the outcome variable (Y);

In order to test this assumption, the study generated Pearson correlation matrix involving
predictors or job design dimensions of and one dependent variable (Employee performance ) the
result is presented in Table (Table 4.12) below.

Table 4. 12 Correlations P values between the predictor variable and the dependent
variable

Task Task Task Task


Task skill identity significance characteristics feedback Performance
Task skill 1 .243** .682** .760** .715** .698**
0.000 0.000 0.000 0.000 0.000
**
Task identity .243 1 .336** .288** .310** .735**
0.000 0.000 0.000 0.000 0.000
Task .682** .336**
1 .635** .769** .677**
significance 0.000 0.000 0.000 0.000 0.000
Task .760** .288** .635**
1 .699** .714**
characteristics 0.000 0.000 0.000 0.000 0.000
Task .715** .310** .769** .699**
1 .700**
feedback 0.000 0.000 0.000 0.000 0.000
Performance .698** .735** .677** .714** .700**
1
0.000 0.000 0.000 0.000 0.000

48
**. Correlation is significant at the 0.01 level (2-tailed).
Source: researchers survey, 2021
The result of the study shows us that all the independent variables i.e. job design dimensions
such as task skill, task identity, task significance, task characteristics and task feedback exhibited
a statistically significant relationship with the dependent variable employee performance.

Thus from the above results and corresponding interpretations it can be seen that job design
dimensions correlated with performance significantly at 0.01 error level. Thus, the first
preconditions set down by Baron and Kenny (1986) with regard to the existence of significant
association between the predictor variable (job design dimensions) and the dependent variable
(employee performance) was met.

Precondition Two

The predictor variable (X) or job design is significantly associated with the mediating
variable (M) or employee motivation

The correlations between the job design and the mediator variable employee motivation was
evaluated by employing correlation test and the result is presented with the table below.

Table 4. 13 correlation between the independent and mediating variable

Task Task Task Task Task Employee


skill identity significance characteristics feedback Motivation
Task skill 1 .243** .682** .760** .715** .722**
0.000 0.000 0.000 0.000 0.000
** ** ** **
Task identity .243 1 .336 .288 .310 .596**
0.000 0.000 0.000 0.000 0.000
** ** ** **
Task significance .682 .336 1 .635 .869 .752**
0.000 0.000 0.000 0.000 0.000
** ** ** **
Task characteristics .760 .288 .635 1 .699 .759**
0.000 0.000 0.000 0.000 0.000
** ** ** **
Task feedback .715 .310 .869 .699 1 .792**
0.000 0.000 0.000 0.000 0.000
** ** ** ** **
Motivation .722 .596 .752 .759 .792 1
0.000 0.000 0.000 0.000 0.000
**. Correlation is significant at the 0.01 level (2-tailed).
Source: researchers survey, 2021

49
The table above shows that the correlations among job design dimensions and the mediator
employee motivation. The correlation test reveals that there was statistically significant positive
relationship between employee motivation or the mediator and job design dimensions(predictor)
with p<0.01. This implies that all the independent variables correlated positively and
significantly with the mediator variable.

Thus, based on the above results, the second preconditions set down by Baron and Kenny (1986)
with regard to the existence of significant association between the predictor variable and the
mediator variable was met. This implies that from the above results and corresponding
interpretations it can be seen that job design dimensions such as task skill, task identity, task
significance, task characteristics, task feedback correlated significantly with the mediating
variable employee motivation significantly at 0.01 error level.

Precondition Three
M is significantly associated with Y when X is also included
Again the existence of association between the mediator variable employee motivation and the
dependent variable(Y) performance when the independent variables or job design dimensions is
included was also examined in the study and the result is presented below.

Table 4. 14. Correlation coefficient M is significantly associated with Y when X is also


included

Task Task Task Task Task


skill identity significance characteristics feedback Motivation Performance
Task skill 0.000 0.000 0.000 0.000 0.000 0.000
Task identity 0.000 0.000 0.000 0.000 0.000 0.000
Task significance 0.000 0.000 0.000 0.000 0.000 0.000
Task characteristics 0.000 0.000 0.000 0.000 0.000 0.000
Task feedback 0.000 0.000 0.000 0.000 0.000 0.000
Motivation 0.000 0.000 0.000 0.000 0.000 0.000
Performance 0.000 0.000 0.000 0.000 0.000 0.000
**. Correlation is significant at the 0.01 level (2-tailed).
Source: researchers survey, 2021

50
The study result also confirmed that employee motivation exhibited a significant association with
the dependent variable employee performance at 0.01 error level. The result also indicated
statistically significant positive relationship between job design and employee performance when
mediating variable employee motivation is also included in the model. Besides, from the above
results and corresponding interpretations it can be seen that the mediator variable or motivation
significantly associated with the dependent variable employee performance when X or job design
dimensions are also included in the model.

Thus, the third preconditions set down by Baron and Kenny (1986) with regard to the existence
of significant association between the mediator variable (employee motivation) and the
dependent variable (employee performance) was met when the independent variable or job
design was also included in the model. In general, the study results of the correlation coefficients
revealed that all three correlations turned out to be significant. And the first three preconditions
were met in the data.

Precondition Four

A Variable has mediated the relationship between other variables when the basic
relationship is reduced when the mediating variable is included in the regression equation
was also tested

To assess this critical matter, the study conducted two regressions. The Amos graphics result can
show the regression path for the effects between job design and employee motivation.

Figure 7 the effect of Job design on performance

51
The first regression (Table 4.8) documents the basic relationship between the predictor of job
design dimensions (such as task skill, task identity, task significance, task characteristics, task
feedback), and employee performance was treated as the outcome variable. And the result of
each regression output is presented with the table below.

Table 4. 15 regression estimates of the independent variables with dependent variables


Estimate S.E. C.R. P Label
Employee Performance <--- Identity .396 .017 23.648 *** Path c
Employee Performance <--- Significance .036 .036 3.003 .061 Path c
Employee Performance <--- Characteristics .207 .032 6.559 *** Path c
Employee Performance <--- Feedback .102 .032 3.131 .002 Path c
Employee Performance <--- Skill .206 .030 6.828 *** Path c
Source: researchers survey, 2021
The Amos output shows that the job design dimensions such as: task skill, task identity, task
significance, task characteristics, and task feedback significantly predicted employee
performance in this multiple regression. The result shows us that the unstandardized regression
coefficient for task identity, task significance, task characteristics, task feedback and task skill,
were 0.396, 0.036, 0.207, 0.102 and 0.206 respectively. This step merely demonstrates in a
regression format that have a significant basic relationship.

The next step is to perform a simultaneous inclusion regression in which the predictor job design
and the mediating variable employee motivation are both included in the analytical model as
predictors of employee performance. The figure shows that the paths for job design and
performance when the mediator motivation is added in the model.

Figure 8 The effect of Job design and motivation on Performance

52
In essence, the study added the mediating variable to the above regression equation. However,
when the mediator variable is included along with the independent variable the coefficients were
reduced and the result is presented with the below.

Table 4. 16 regression estimates of the independent variables with dependent variables


when the mediating variable also included

Estimate S.E. C.R. P


Employee Performance <--- Task Identity .266 .027 9.772 ***
Employee Performance <--- Task Significance .016 .034 .461 .645
Employee Performance <--- Task characteristics .024 .043 .554 .579
Employee Performance <--- Task Feedback .046 .032 1.449 .147
Employee Performance <--- Task Skill .083 .035 2.344 .019
Employee Performance <--- Employee Motivation .475 .081 5.835 ***
Source: researchers survey, 2021
The result shows that employee motivation is a significant predictor of performance and that job
design dimensions such as task identity, task significance, task characteristics, task feedback and
task skill, which previously had higher prediction power, are now reduced in their strength as
predictors when motivation is included in the model.

The initial beta weights presented in table (Table 4.15) for task identity, task significance, task
characteristics, task feedback and task skill, were 0.396, 0.036, 0.207, 0.102 and 0.206
respectively; but when compared weight with the subsequent table (Table 4.16), task identity,
task significance, task characteristics, task feedback and task skill, were 0.266, 0.016, 0.024,
0.046 and 0.083 respectively; the result showed that the beta weights gained initially in first table
( Table 4.15) were higher than in the beta weights gained when the mediator variable motivation
was added in the model in addition to the predictor variables. From the result it certainly looks as
though mediation occurred; that is, the basic relationship between the predictor and the outcome
was reduced when the mediator variable is added in the model.

Therefore, the previous preconditions of Baron and Kenny (1986) which stated that the
mediation occurs when the basic relationship is reduced when the mediating variable is added
was met.

53
4.3.2. The Effect of Job Design on Employee Motivation (path ‘a’)

The study examined the effect of job design on the mediator variable employee motivation and
the result is presented below

Table 4. 17 Regression Weights: for Job Design, Motivation and Employee performance

Un Standardized
Standardized Estimate S.E. C.R. P
Estimate
Employee Motivation <--- Task Skill .259 .289 .022 12.032 ***
Employee Motivation <--- Task Identity .273 .345 .012 22.844 ***
Employee Motivation <--- Task Significance .043 .049 .026 1.672 .094
Employee Motivation <--- Task Feedback .116 .157 .023 5.023 ***
Employee Motivation <--- Task characteristics .385 .399 .023 17.103 ***
Employee Performance <--- Task Identity .266 .367 .027 9.772 ***
Employee Performance <--- Task Significance .016 .020 .034 .461 .645
Employee Performance <--- Task characteristics .024 .027 .043 .554 .579
Employee Performance <--- Task Feedback .046 .068 .032 1.449 .147
Employee Performance <--- Task Skill .083 .101 .035 2.344 .019
Employee Performance <--- Employee Motivation .475 .518 .081 5.835 ***
Source: researchers survey, 2021
The Amos graphics model result presented above (Table 4.17) revealed that the task skill has a
significant effect on the mediating variable employee motivation. Finding of this study revealed
that task skill significantly (p < 0.05) affected the level of the employee motivation in the study
area. The coefficient result has shown that, task skill dimension has a positive and significant
effect on motivation (B= 0.259, CR = 12.032, p < 0.001). The result implies that the one level
increase in job design dimension i.e. task skill also increases 25.9% of employees motivation in
the study area. This implies that employee motivation would increase with one level increase in
task skill type of job design in the study area.

Thus the hypothesis that the job design task skill has a positive significant effect on employee
motivation is accepted.

The model result also revealed that the task identity dimension has significant effect on the
mediating variable of employee motivation in the study area. Finding of this study revealed that,
task identity has B= 0.273, CR = 22.844 and p < 0.05 implying that task identity as a job design

54
dimension has statistically significant effect on the mediating variable employee motivation. This
dimension explained 27.3% of variance in the mediating variable employee motivation.

Thus the hypothesis that the job design dimension particularly task identity has a positive
significant effect on employee motivation is accepted.

Conversely, the Amos result also confirmed that the task significance dimension has
insignificant effect on the mediating variable employee motivation. From the coefficients table
(Table 4.17) presented in model above, task significance has a positive but insignificant effect on
the level of employee motivation with B= 0.043, CR = 1.672, p > 0.05).

Thus the hypothesis that the job design dimension particularly task significance has a positive
significant effect on employee motivation is rejected.

Moreover, the task feedback dimension has also significant effect on the mediating variable of
employee motivation in the study area. Finding of this study revealed that, task feedback has B=
0.116, CR = 5.023 and p < 0.05 implying that task feedback as a job design dimension has
statistically significant effect on the mediating variable employee motivation. This dimension
explained 11.6% of variance in the mediating variable employee motivation.

Thus the hypothesis that the job design dimension particularly task feedback has a positive
significant effect on employee motivation is accepted.

Furthermore, the task characteristics dimension also exhibited significant effect on the mediating
variable of employee motivation in the study area. Finding of this study revealed that, task
characteristics has B= 0.385, CR = 17.103 and p < 0.05 implying that task characteristics as a job
design dimension has statistically significant effect on the mediating variable employee
motivation. This dimension explained 38.5% of variance in the mediating variable motivation.

Thus the hypothesis that the job design dimension particularly task characteristics has a positive
significant effect on employee motivation is accepted.

In general the above findings are also in line with prior studies. Prior studies indicated that job
design is expected to facilitate reliable behavioural outcomes particularly motivation of
employees and establish role expectations for work output and participation. Furthermore,
manipulating job characteristics, through internal and external inputs, can develop motivating

55
factors in employees to affect their perception of their job and provide gains in productivity and
efficiency (Harmon, 2013). Also consistently, increased worker authority and understanding of
magnitude of work showed increased work quality in typically mundane tasks or jobs, in which
autonomy gives employees a greater sense of trust from the management and the ability to
employ their knowledge and skill (Jackson, 2014). Again studies in this field also consistently
revealed that task feedback provides immediate transparency and allows employees to be
responsive to organizational and client needs, increasing efficiency (Mehtha & Shah, 2015).
Ugboro, (2016) also identified task identity and task significance as two characteristics which
enhance an employees’ ability to cope and produce constructive responses to maintain positive
performance behaviours.

4.3.3. Path “b” or the effect of Employee motivation on employee performance

In this model result the study paid a special attention to the variables of path “b” which is
focused on the relationship between employee motivation and the dependent variable employee
performance. The “b” path is effect of mediator variable or the employee motivation M
(mediators) on the outcome variable (employee performance).

Thus, in order to evaluate the effect of the mediator variable or employee motivation on the
dependent variable employee performance the respective beta coefficient was used.

Accordingly, from the table (Table 4.17), the mediator variable employee motivation affected the
dependent variable performance significantly with B= 0.475, CR = 5.835, p < 0.001). This
implies that, as the higher the level of the employee motivation was observed, the higher level of
employee performance would be developed. The beta coefficient also indicated that, employee
motivation has a positive and significant effect on employee performance with explained
variance 47.5%.

Therefore, the hypothesis that employee motivation has a positive and significant effect on
employee performance is accepted.

56
4.4. Direct effect of job design dimensions (X) on employee performance (Y) (Path
‘c’)

The Amos graphics model result presented above (Table 4.17) revealed that the direct effect of
task identity dimension has significant effect on the dependent variable employee performance.
Finding of this study revealed that task identity significantly (p < 0.05) affected the level of the
employee performance in the study area. The coefficient result has shown that, task identity has a
positive and significant effect on the level of employee performance (B= 0.266, CR = 9.772, p <
0.05).

Thus the hypothesis that task identity has a positive significant effect on employee performance
is accepted.

In contrary, the model result revealed that the task significance dimension has insignificant effect
on the dependent variable employee performance in the study area. Finding of this study
revealed that, task significance has B= 0.016, and p > 0.05 implying that task significance type
of job design dimension has statistically insignificant effect on the dependent variable employee
performance.

Thus the hypothesis that task significance has a positive significant effect on employee
performance is rejected.

The model result also revealed that the task characteristics dimension has insignificant effect on
the dependent variable employee performance in the study area. Finding of this study revealed
that, task characteristics has B= 0.024, and p > 0.05 implying that task characteristics type of job
design dimension has statistically insignificant effect on the dependent variable employee
performance.

Thus the hypothesis that task characteristics has a positive significant effect on employee
performance is rejected.

Moreover, the model result revealed that the task feedback dimension has insignificant effect on
the dependent variable employee performance in the study area. Finding of this study revealed
that, task feedback has B= 0.046, and p > 0.05 implying that task feedback type of job design
dimension has statistically insignificant effect on the dependent variable employee performance.

57
Thus the hypothesis that task feedback has a positive significant effect on employee performance
is rejected.

Conversely, the Amos graphics model result presented above (Table 4.17) revealed that the
direct effect of task skill dimension of job design has significant effect on the dependent variable
employee performance. Finding of this study revealed that task skill significantly (p < 0.05)
affected the level of the employee performance in Dashen Bank. The coefficient result has
shown that, task skill has a positive and significant effect on the level of employee performance
(B= 0.083, CR = 2.344, p < 0.05).

Thus the hypothesis that task skill has a positive significant effect on employee performance is
accepted.

The result was also consistent with the findings of Fried and Ferris (2017) their met analysis that
job characteristic model has a significant impact on not only job performance but job satisfaction
as well. This poor performance in organizations depends mainly in individual intention to work
and give his full strength to organization to boast its performance and improve results those are
relating directly and indirectly to different people and organization and ultimately
country economic state (Ryan, Schmit & Johnson, 2016).

Consistently, certain jobs and goals setting can enhance the level of performance and the design
job can increase not merely the satisfaction but the quality of performance as well (Garg &
Rastogi, 2015). It depends on nature of the job some required role performance, which is highly
repetitive while the other jobs have a dominant degree of variety in task and they are executed
(Mueller, Boyer, Price & Iverson, 2014).

4.5. The Indirect and Total effects of job design and employee motivation on
employee performance

Total causal effect between variables can be decomposed into a direct and an indirect effect.
Direct effect (presented in Table 4.17 and interpreted in 4.3 and 4.4 section above) represents the
direct effect of job design on employee motivation and performance, while indirect effect
involves causal effect of job design and employee motivation with the subsequent variable
employee performance. The overall model result with the graphic input is presented below.

58
Figure 9 Direct, Total and indirect effects

4.5.1. Total effect of job design and employee motivation on employee performance

The total effects are the sum of all direct effects and indirect effects of one variable on another
variable. The total effect of task feedback and motivation on employee performance was 0.102
and the result confirmed that, the total (direct and indirect) effect of task feedback dimension on
employee performance is significantly different from zero at the 0.001 level (p=.0009). Again the
upper and lower bounds of the boot strap estimate do not include zero. Thus the bootstrap
approximation obtained by constructing two-sided percentile- based confidence intervals was
found significant.

Table 4. 18 Total effects with the corresponding Bootstrap estimates

Task Task Task Task Task


Feedback characteristics Significance Identity Skill
Total effect Estimates 0.102 0.207 0.036 0.396 0.206
Upper Bounds (BC) 0.191 0.281 0.109 0.435 0.278
Lower Bounds (BC) 0.046 0.135 -0.06 0.357 0.143
Two Tailed
0.007 0.008 0.346 0.008 0.011
Significance (BC)
Source: researchers survey, 2021

59
Again the study result also revealed that the total effect of task characteristics dimension on
employee performance was 0.207 and the result confirmed that, the total (direct and indirect)
effect of task characteristics and employee motivation on employee performance is significantly
different from zero at the 0.05 level (p=.0000). Again the upper and lower bounds of the
bootstrap estimates do not include zero. The result from a bootstrap approximation obtained by
constructing two-sided percentile- based confidence intervals the total effects of task
characteristics and employee motivation on employee performance was found significant.

In contrary to the above the task significance has insignificant effect on employee performance.
The study revealed that 0.109 is the upper endpoint of a two-sided percentile-based bootstrap
confidence interval for the total (direct and indirect) effect of task significance on performance.
On the other hand, -0.06 is the lower endpoint of a two-sided percentile-based bootstrap
confidence interval for the total (direct and indirect) effect of task significance on performance.
The result shows that the upper and lower bounds of the boot strap estimates do not include zero.
This implies, the total (direct and indirect) effect of task significance on performance is not
significantly different from zero at the 0.05 level (p=.0.346). This implies that there was
insignificant total effect or task significance and motivation on performance.

In addition, the study result also revealed that the total effect of task identity on performance was
0.396 and the result confirmed that, the total (direct and indirect) effect of task identity and
motivation on performance is significantly different from zero at the 0.05 level (p=.008).
Moreover, the upper and lower bounds of the bootstrap estimates do not include zero. The result
from a bootstrap approximation obtained by constructing two-sided percentile- based confidence
intervals; the total effect of task identity and motivation on performance was found significant.

Finally, the study revealed that 0.278 is the upper endpoint of a two-sided percentile-based
bootstrap confidence interval for the total (direct and indirect) effect of task skill on
performance. On the other hand, 0.143 is the lower endpoint of a two-sided percentile-based
bootstrap confidence interval for the total (direct and indirect) effect of task skill on
performance. The result shows that the upper and lower bounds of the boot strap estimates do not
include zero. This implies, the total (direct and indirect) effect of task skill and motivation on
performance is significantly different from zero at the 0.05 level (p=.0.011). This implies that
there was significant total effect of task skill on performance.

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4.5.2. Indirect effects of Job design on employee performance

The specific indirect effect of independent variables job design dimensions on Y employee
performance through employee motivation was found positive and the following table shows the
results of the indirect effects with the corresponding boot strap estimates.

Table 4. 19 Indirect effects with the corresponding Bootstrap estimates

Task Task Task Task Task


Feedback characteristics Significance Identity Skill
Indirect effect Estimates 0.055 0.183 0.02 0.13 0.123
Upper Bounds (BC) 0.096 0.26 0.05 0.195 0.184
Lower Bounds (BC) 0.032 0.104 -0.006 0.076 0.068
Two Tailed Significance
0.004 0.008 0.09 0.005 0.006
(BC)
Source: researchers survey, 2021
The estimate of the mediated effect of task feedback is equal to = 0.055. The indirect effect of
task feedback dimension on employee performance through motivation was not zero. The Amos
estimate of the upper and lower 95% bias-corrected bootstrap confidence interval based on 2,000
bootstrap samples was 0.096 and 0.032. The result showed that the bootstrap estimate of the
upper and lower bound of the bootstrap estimates does not include zero. This implies that the
indirect (mediated) effect of task feedback type of job design dimension on employee
performance is significantly different from zero at the 0.001 level (p=0.004). In addition, the
proposed paths such as path “a” and path “b” were significant, and however path “c” is
insignificant to imply that, employee motivation fully mediates the relationship between task
feedback dimension and employee performance.

As far as the effect size of mediation of employee motivation is concerned (a x b)/ c’ = 0.055 /
0.102 = 0.5392. This implies a mediated effect of employee motivation explains about 53.92.%
of the total effect of task feedback on employee performance. In other words, the proportion of
mediation by motivation was 53.92%. In other words, employee motivation explained about
53.92% of effect between task feedback dimension and performance.

The estimate of the indirect effect of job design dimension specifically task characteristics is
equal to E= 0.183. The result revealed that 0.26 and 0.104 are the upper and lower endpoints of a

61
two-sided bias-corrected bootstrap confidence interval for the standardized indirect (mediated)
effect of task characteristics dimension on employee performance. From the above result the
upper and lower bound of the bootstrap estimates does not include zero. This implies that the
indirect (mediated) effect of task characteristics dimension on employee performance is
significantly different from zero at the 0.001 level (p=.0.008). In addition to the above as
mentioned earlier both path ‘a’ and path ‘b’ were significant and in contrary path c was found
insignificant. This implies that employee motivation significantly and fully mediates that
relationship between job design dimensions of job characteristics and employee performance.

Moreover, the effect size of motivation was also calculated and the result implies (a x b)/ c’ =
0.183 / 0.207 = 0.8802. This implies employee motivation explains about 88.02% of the total
effect of job characteristics and employee performance.

The estimate of the mediated effect of task significance is equal to 0.02. The result revealed that
0.05 and -0.006 is the upper and lower endpoints of a two-sided bias-corrected bootstrap
confidence interval for the standardized indirect (mediated) effect of task significance on
performance. From the above result the upper and lower bound of the bootstrap estimates include
zero. This implies that the indirect (mediated) effect of task significance on performance is not
significantly different from zero at the 0.05 level. In connection to the above, as mentioned
earlier in previous sections both path a and path c were insignificant. This implies that employee
motivation does not mediate the relationship between task significance and performance.

Moreover, the Amos estimate of the mediated effect of task identity dimension is equal to 0.13
The result revealed that 0.195 and 0.076 is the upper and lower endpoints of a two-sided bias-
corrected bootstrap confidence interval for the standardized indirect (mediated) effect of task
identity and employee performance. From the above result the upper and lower bound of the
bootstrap estimates does not include zero. This implies that the indirect (mediated) effect of task
identity and employee performance is significantly different from zero at the 0.05 level. In
connection to the above, as mentioned earlier in previous sections both path a” and path ‘b’ and
path c were significant. This implies that employee motivation significantly but partially
mediates the relationship between task identity and employee performance.

62
Moreover, the effect size of employee motivation was calculated and the result implies (a x b)/ c’
= 0.13 / 0.396 = 0.3283. This implies employee motivation explains about 32.83% of the total
effect of task identity and employee performance.

Finally, the Amos estimate of the mediated effect of task skill is equal to 0.123. The result
revealed that 0.184 and 0.068 is the lower and the upper endpoints of a two-sided bias-corrected
bootstrap confidence interval for the standardized indirect (mediated) effect of task skill and
employee performance. From the above result the upper and lower bound of the bootstrap
estimates does not include zero. This implies that the indirect (mediated) effect of task skill and
employee performance is significantly different from zero at the 0.05 level. In connection to the
above, as mentioned earlier in previous sections both path a, path b and path c were significant;
implies that employee motivation significantly and partially mediates that relationship between
task skill and employee performance.

Moreover, the effect size of employee motivation was calculated and the result implies (a x b)/ c’
= 0.123 / 0.206 = 0.5971. This implies employee motivation explains about 59.71% of the total
effect between task skill and employee performance.

The result of this study was also inline with prior studies findings. A study revealed that Work
design that is satisfying has the potential to incite workers to go above and beyond normal work
behaviors; however the desire to do so is often dependent on alignment of individual motivations
with work design (Jackson, 2014). Also Job characteristics are not deterministic of high quality
performance to do “whatever it takes to do the job”, but instead have the potential to support
employees who are already motivated.

Another study also indicated task significance coincides well with developing intrinsic
motivation to engage in spontaneous actions, and it also ranked as a key motivational factor for
employees who want perform in their organization. many of whom they spend more time with
than their own family (Bassey, 2002). In such cases, all of the prior studies revealed that work
design is the causal factor for motivation and for performance behaviors.

63
CHAPTER FIVE: CONCLUSIONS AND RECOMMENDATIONS

5.1. Conclusions

The study primarily targeted 283 respondents but 263 respondents completed the questionnaire
successfully with a response rate of 92.9%. This was due to 6 questionnaires were incomplete
while 14 questionaries’ were not returned successfully. This was used for the analysis of the
study.

In relation to path ‘a’ the study concluded that the task skill, task identity, task characteristics,
and task feedback have statistically significant effect on the mediating variable employee
motivation. Thus the hypothesis that the job design dimensions such as task skill, task identity,
task charters tics and task feedback have positive significant effect on employee motivation is
accepted. In contrary, task significance has statistically insignificant effect on employee
motivation. Thus the hypothesis that the job design task significance has a positive significant
effect on employee motivation is rejected.

As far as the effects of employee motivation on employee performance or Path ‘b’ is concerned
the study concluded that the mediator variable employee motivation affected the dependent
variable employee performance significantly. This implies that, the higher the level of the
employee motivation was observed, the higher level of employee performance would be
developed. The beta coefficient also indicated that, employee motivation has a positive and
significant effect on employee performance with the of the explained variance 47.5%. Therefore,
the study concluded hypothesis stated that employee motivation has a positive and significant
effect on employee performance is accepted.

With regard to the direct effect or path ‘c’ was concerned the study concluded that the direct
effect of task identity, and task skill dimensions have statistically significant effect on the
dependent variable employee performance. In contrary, the study also concluded that task
significance, task characteristics and task feedback have statistically insignificant effect on
employee performance.

Moreover, the indirect effects of job design dimensions on employee performance was also
evaluated in the study. Based on the results, the study concluded that, the indirect effects of the

64
independent variables or job design dimensions on the dependent variable or employee
performance through employee motivation was found positive.

Furthermore, the indirect effect of task feedback, task skill, task characteristics, task identity
dimensions on employee performance through motivation was significant. However, the indirect
effect of task significance on employee performance through employee motivation was found
insignificant.

In addition, the study also concluded that the proposed paths such as path “a” , path “b” and path
“c” were significant for task skill and task identity implying that employee motivation
significantly but partially mediates the relationship between task identity, task skill and
employee performance. Conversely, the study also concluded that both path ‘a’ and path ‘b’
were significant and in contrary path ‘c’ was found insignificant for task characteristics and task
feedback. Based on this the study concludes that employee motivation significantly and fully
mediates the relationship between job design dimensions of task characteristics, task feedback
and employee performance.

Furthermore, as far as the effect size of the mediator variable or employee motivation was
concerned the study concluded that employee motivation explained about 53.92%, 88.02%,
32.83% and 59.71% from the total effect between task feedback, task characteristics, task
identity, task skill dimensions and performance respectively.

Finally, the study also concluded that comparing the magnitudes of these indirect effects, the
indirect effect of task characteristics is larger than the indirect effect of other job design
dimensions in the study area.

5.2. Recommendations

Based on the concluding remarks, the study recommends the following main points.

 The study shows that increases in job design particularly job characteristics or autonomy
also increases employees’ motivation. Based on this finding the study recommends that
the branches managers should provide a capacity building trainings on the existing job
designs particularly for job characteristics or the degree of autonomy provided with
respect to their positions.
65
 As the study result confirmed the increase in employee performance are related to both
increases employee motivation and job designs; the organization shall try to build an
employee’s motivation by using various job redesigning mechanisms.

 The study also recommends that in order to enhance the performance of their employees,
managers need to consider employing mechanisms that increase motivation of employees
in towards their job design, such as clearly defining and assigning meaningful work that
matches employee skills, making provision for workplace flexibility, implementing a
potent talent strategy.

 Furthermore, it would appear that managers should focus on nurturing motivation and
perception of employees towards the existing job designs particularly designs rather than
concerning themselves with directly on employee performance.

66
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APPENDIXES

GONDAR UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS
POST GRADUATION PROGRAM IN BUSINESS ADMINISTRATION
RESEARCH QUESTIONNAIRE

Dear Respondents,

The questionnaire aims to collect information to undertake a study on the impact of job design on
employee motivation and job Performance. The Case of Dashen Bank in Gondar district. This
study is conducted as a requirement of research project to be submitted in the faculty of Business
and Economics for the partial fulfillment of the Master degree in Business administration at
Gondar University.

To achieve this objective, your genuine and timely response of the questionnaire designed for the
purpose will have a paramount importance. It is assumed that the questionnaire will take only a
few of your time to complete. All information provided will be used for academic purpose only
and treated in a strict confidential. I kindly request your utmost cooperation in filling the
questionnaire and return it as soon as possible. I am grateful for your kind cooperation and would
like to extend my heartfelt appreciation for providing me all relevant information. If you would
like further clarification and information about the study, or have any ambiguity in completing
the questionnaire please contact me via ______________

Thank you for your cooperation in advance

MBA Student, at Gondar University

Instruction: Please answer all the questions by selecting the option that suit you best and also
with more comments where applicable.

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PART ONE: Profile of Respondents

Please Tick (√) only one appropriate answer.

1.
2. - -
3.
t
4. Work experience in the banking indus - -14
above years

PART TWO: JOB DESIGN


Instructions
Please tick (√) one (multiple) answer which fits in your opinion

Strongly Strongly
Disagree Neutral Agree
Sn Job Design Disagree Agree
2.1 Skill variety
The job requires me to utilize a variety of
different skills in order to complete the
1 work.
The job requires me to use a number of
2 complex or high-level skills.
My job provides me with the opportunity
to use my personal information while
3 performing my job duties.
2.2 Task Identity
The job involves completing a piece of
1 work that has an obvious beginning
The job involves completing a piece of
2 work that has an obvious end.
The job provides me the chance to
3 completely define it.
2.3 Task Significance
The results of my work are likely to
significantly affect the lives of other
1 people within the organization.
The job itself is very significant and
important in the broader scheme of
2 things.

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Strongly Strongly
Disagree Neutral Agree
Sn Job Design Disagree Agree
The job does have a large impact on
3 people outside the organization.
2.4 Task Autonomy
The job allows me to plan how I do my
1 work.
The job allows me to make decisions on
2 my own.
The job provides me with significant
3 autonomy in making decisions.
2.5 Feedback from Job
The work activities themselves provide
direct information about the effectiveness
of my job performance in terms of
1 quality.
The work activities themselves provide
clear information about the effectiveness
of my job performance in terms of
2 quantity.
The job design determines the goals to be
3 achieved from the from Me.

PART THREE: Employee Motivation


Instructions
Please tick (√) one (multiple) answer which fits in your opinion

Strongly Strongly
Disagree Neutral Agree
Sn Employee Motivation Disagree Agree
3 Motivation
In our organization, Salary and other
3.1 benefits motivates me
The organization that I am working for
3.2 has good Job security
I do have good relationship with co-
3.3 workers in our organization
The existing support and guidance from
3.4 my supervisor is motivator
The degree of respect and fair treatment
receive from my supervisors motivates me
3.5 to have good work performance
3.6 My organization is optimistic about

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Strongly Strongly
Disagree Neutral Agree
Sn Employee Motivation Disagree Agree
promotional opportunities
There is training and development
3.7 opportunities in our organization

PART FOUR: Employee Performance


Instructions
Please tick (√) one (multiple) answer which fits in your opinion

Strongly Strongly
Disagree Neutral Agree
Sn Employee performance Disagree Agree
4 Employees performance
Any job design changes implemented in my
4.1 organization will affect my work performance.
The outcome of job design changes will reflect
4.2 my work performance.
I become more responsible after the
4.3 implementation of the job design
I become more committed toward their jobs after
4.4 the implementation of the job design
My level of job satisfaction increased after the
4.5 implementation of the job design.
I become more productive after the
4.6 implementation of the job design
My Interest in job performing increases by the
4.7 implementation of the job design
My job performance directly enhances the
customer satisfaction at services and products of
4.8 the bank
Thank you!!

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