INFOMATION SYSTEM COLLEGE

DEPARTMENT OF
MANAGEMENT

COMMERCIAL BANK OF ETHIOPIA AT EBINAT BRANCH

THIS RESEARCH PROPOSAL THE PARTIAL FULFILLMENET

OF BACHLEOR DEGREE IN THE DEPARTMENT OF
MANAGEMENT

PREPARED BY:

NAME ID/NO SEGNITUR

FIKADIE WORKIE BAY PESC /AA/18/156/ -------------------

FASIKA BEYENE MUCHE PESC /AA/18/155 ----------------------

ASCHILOTADIE MOLLA PESC /AA/18/012 -----------------------

ADVISOR:- TADIFIE ADDISIE ( MASTER )

MAY, 2012 E.C

EBINAT,ETHIOPIA
 TABLE OF CONTENT

Content page

 Acknowledgment ---------------------------------------------------------------------- I

CHAPTER ONE:

1. Introduction ------------------------------------------------------------------------------------ 1

1.1. Back ground of the study ---------------------------------------------------------------- 1

1.2. Statement of the problem------------------------------------------------------------------ 2
1.3 Research questions ------------------------------------------------------------------------- 2
1.4 Objective of the study---------------------------------------------------------------------- 3
1.5 Significance of the study ------------------------------------------------------------------ 3
1.6 Scope of the study -------------------------------------------------------------------------- 3
1.7 Limitation of the study -------------------------------------------------------------------- 3
1.8 Definitions of key terminologies --------------------------------------------------------- 4
1.9 Organization of the proposal------------------------------------------------------------------ 4

CHAPTER TOW:

2. Literature Review ----------------------------------------------------------------------------- 5

2.1. Motivation --------------------------------------------------------------------------------- 5
2.2. The nature of motivation ----------------------------------------------------------------- 5
2.3. The importance of motivation ----------------------------------------------------------- 6
2.4. Need theories of motivation ------------------------------------------------------------- 6
2.5. Motives in organizations ----------------------------------------------------------------- 8
2.6. Motivational approaches ----------------------------------------------------------------- 9
2.7. Current issues is motivation ------------------------------------------------------------- 9
2.8. Special motivational techniques -------------------------------------------------------- 11
2.9. System and contingency approach to motivation ------------------------------------ 12
2.10. Dependence of motivation organizational climate --------------------------------- 12
2.11. Motivation, leadership and manager ship ------------------------------------------- 12
 CHAPTER THREE:

3. Research Methodology ------------------------------------------------------------------------ 13

3.1. Research design--------------------------------------------------------------------------- 13
3.2. Data type and source --------------------------------------------------------------------- 13
3.3. Sampling design -------------------------------------------------------------------------- 13
3.4. Data collection method ------------------------------------------------------------------ 13
3.5. Method of data processing and analysis ----------------------------------------------- 13

CHAPTER FOUR

4. Time and Budget cost ----------------------------------------------------------------------- 14

4.1. Time cost--- ------------------------------------------------------------------------------- 14
4.2. Budget cost------------------------------ -------------------------------------------------- 14
 Acknowledgement

First of all, I want to that for super natural GOD who initiates all things having
educative ups and downs with respective and lovely finalization.
Next I would like impart my heartfelt gratitude to my sister Mastewal Dejene. Who
rendered all round assistance in my school and under graduated studies and also for
her material Vs finical assistance?
Finally, I will not forget your cooperation and advice for all my friends and
relatives Alebachew and Wonedimnew Adugna….

I.
 MISSION

To provide our corporate, retail, and investment clients with customized high quality
competitively priced financial solutions.

VISSION

To be the bank of excellence in service and commitments.

Objective of commercial bank

 To increase market, share and to maximize profitability

 To increase the lever of capital in order to raise the lending limit of the bank
obtain a high income.

II.
 CHAPTER ONE

1. INTRODUCTION
1.1. Backgrounds of study
The term motivation derives from the Latin word move, meaning ‘’to move ‘’. In the present
context, motivation represents those psychological processes that cause the arousal, direction and
persistence of voluntary actions that are goal directed managers need to understand these
psychological processes if they are to successfully guide employees toward accomplishing
organization objectives. (A kini cki, R. krenter, 2006)

As Angelo Knick and Robert kreinter explained effective employee motivation has long be one of
the managements lunging in light of organization trends to down size and reengineer and demands
associated with managing a diverse work force, as reveled in the pining case companies such as Saks
Fifth Avenue and satisfaction as critical for organizational success.

Motivation refers to the forces within a person that defect his or her direction in the nation and
persistence of voluntary behavior in the work place. Motivating employees are willing to exert a
particular level of effort / intensity/ for a certain amount of time /persistency/ toward a particular
goal /direction/. Even when people have clear work objective, the right skills and supportive work
environment, they must have sufficient motivation to achieve work objectives. As new generation of
employees enter the work place and as globalization creates a more diverse work force, companies
need to re think their motivational practice. (Steven L. McShane and Mary Annona Glinow, 2005)

According to kinaki (2006) job context influences employee motivation and performance.
Economics professors Sandra black and lisalinch estimated that 98% of growth in multifactor
productivity in the 190s / i.e. the growth in the productivity that goes beyond investment in new
technology /was due to innovative work place practices. Examples include, job satisfaction, typing,
compensation to performance and employee empowerment. Motivational behaviors are directly
affected by an individual’s ability and job knowledge.

Motivation and combination of enabling and limiting job context factors, for instance it will be
difficult to persist on a project if you are working with directive raw materials or break equipment.
In contrast motivate behavior are likely to be enhance when managers supply employees with
adequate resources to get job done and provide effective coaching, this coaching might entail
furnishing employees with successful role models showing employees how to complex taxes and
helping them maintain high self-efficiency and self-esteem.

Performance is in turn influenced by motivated behavior. (kinicki and kreitner, 2006)

1
 1.2 Statement of the problem
Human resource is one of the most vital resources to the organization like other resources. Satisfied
and activated employees have great contribution to the successful accomplishment of the
organization objective. To have hard employees who does their job effectively and efficiently the
organizational techniques to increase employees performance.

The manager of the bank replies that in the previous times no enough motivational factors exist in
the organization and employees cannot change their performance in high stage to complete all tasks
perfectly and completely. As a result, if this employee motivation and performance have low
development stage in organizations in order to give motives to employees in available condition.

No a day motivation is a very decisive factor to employees of the organization to be competitive in

the globalization world.

In previous times even if there are qualifies employees who have a great knowledge, skill and
experience to do their job; they do not change their performance as the organization Objective
expects from their result. This activity directly affects the organization objectives and goals to be
achieve.

By conducting this study, the researcher identifies the following problems regarding effect of
motivation on employee performance from the study organization.

 Lack of motivation factors that are give to employees. To initiate them to do their active
effectively and efficient to achieve the organization goal and objective.
 There is unfair performance evaluation in the organization which affects their moral and
this creates negative attitude towards the organization and to their work.
 The existence of poor management decision in the organization.
 Motivation type and level of motivation given to employees.
 Level and type of motivational techniques different that are given to employees in the
organization.
1.3 research questions
Basically the study tries to address the following questions.

 What types of motivational techniques are employees in the bank?

 Does the bank make evaluation on motivation tools?
 What are the benefits of the motivation to employee’s performance who work in
the bank?

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 1.4 Objective of the study

1.4.1 General objective

The general objective of the study is to assess the effect of motivation on employee performance in
case of commercial bank of Ethiopia at Ebinat branch.

1.4.2 Specific objective

In line with the general objective, the study here the following specific objective.

 To identify motivational techniques employed in the organization.

 To see whether there is evaluation or not on motivational tools.
 To assess the benefit of motivation to employee’s performance who work in commercial
bank of Ethiopia at Ebinat branch.
1.5 Significance of the study
Proper study on the effect of motivation on employee performance will have some advantage for
commercial bank of Ethiopia at Ebinat branch and for other parities. Some of them are;

 The study will help the bank to know the necessary of motivation.
 The study will help the bank to determine what kind of motivation tools to provide.
 It will help the organization to understand the strength and weakness of its own employee
performance.
 It gives the researcher knowledge, experience and skill for further study.
 It uses us a reference for other researchers.
 Enable other similar organization to know about the effect of motivation on employee
performance.
1.6 Scope of the study
The study conduct only on the motivation on employee performance in case of commercial bank of
Ethiopia at Ebinat branch. It does not include other branches which found in other different places,
because to include other Brach, transportation costs and time to study is unable to the researcher.

1.7 Limitation of the study

The researcher faces some problem to conduct this study. These include: -

 Information shortage is major problem.

 Some of the respondents do not give accurate information.

3
  The study does not cover other factors that affect employee performance.
 The researcher lack experience to do the research.
1.8 Definitions of key terminologies
Motivation:- a process, by which a person effort is energize, direct and sustains to ward attaining a
goal.

Job design: - is how organizations define and structure job to enhance employee performance.

Job rotation: - is systematically moving workers from one job to another in attempt to minimize
monotony and boredom.

Job enlargement: - expands workers job to include tasks previously performs by other workers.

Job enrichment: - employees are motivated by positive job relate experience such as a feeling of
achievement responsibility and recognition.

Existence need: - are necessary for basic human service roughly corresponding to the physiological
and security need.

Growth need: - are logos to Maslow needs for self-esteem and self-actualization.

Employee performance: - is an ability of organization workers to carry out or complete an action that
exists in the organization.

1.9. Organization of the proposal

The proposal has four basic chapters.

Chapter one incorporated background of the study, statement of the problem, research question,
objective of the study, significance of the study, scope of the study, limitation of the study, definition
of key terminologies an organization of the proposal. Chapter two is about literature review, chapter
three deals with research methodology, chapter four time and budget cost.

4
 CHAPTER TWO

2. REVIEW LITERATURE

2.1 MOTIVATION
Human motive are based on needs, whether consciously or sub consciously felt. Some are primary
need such as the physiologically requirements for water, air, food, sleep and shelter. Other needs
may be responds as secondly such as self-esteem, status, affiliation which others, affection, giving
accomplishment and self-assertion. Naturally this needs very in intensity and over time among
different individual.

Motivation is general term applying to the entire class of drives, desires, wishes, and similar forces.
To say that managers motivate their subordinate is to say that they do these things which they hope
will satisfy these drives and include the subordinates to act a desired manner. (Koontz and Weihrich,
2004)

Trough out most of the twentieth century managers have tries to fine the key that unlocks people’s
motivation to work with the help of research proposal. We have come to realize that motivation to
work involves several distinct elements. It is not simply a case of some people having it and others
not. It involves a conscious decision to perform one or more activation contains with greater effort
than other activities competing for attention of motivation contains three elements: -

a. Some need, motive or goal that triggers action.

b. A selection process that directs choice of action.
c. The intensity of effort is applied to chosen action.

In essence motivation governs behavior selection direction and level of effort. (Cook, Hunsaker and
Coffer, 1997)

2.2 The nature of motivation

Motivation is asset of factors that causes people to engage in one behavior rather than some alter
nature engage in one behavior. Students who say up all night to ensure that their term papers are the
best they can be, sales person who work of Saturday to get a head, and doctors who make follow-up
phone calls to patient to cheek on their condition a real motivated people. Of course students who
avoid the term proposal by spending the day at the beach, sales person who go home early to escape
a tedious sales call, and doctors who skill follow up calls to have more time for golf are also
motivated but their goals are different from the manager’s view point.

5
Objective is to motivation people to behave in ways that are in the organizations best interest
(Moorhead, Griffin, Irving, and Coleman, 1999)

2.3 The importance of motivation

Managers strive to motivate people in the organization to perform at high level. This means getting
them to work regularly, and make positive contributions to the organization’s mission. But job
performance depends on ability and environment as well as motivation the relationship can be state
as follows.

P=M+A+E

When, M=motivation P=performance A=ability E=environment

To reach high level of performance, an employee must want to do the job /motivation/, must be able
to do the job /ability/ and must have the materials, resources and equipment to do the job
/environment/. Deficiencies in any one of these areas hurt performance. A manger should thus strive
to ensure that all three conditions are met. Motivation is the most difficult factor to manage an
employee who lacks the ability to perform can be send to training programs to learn new job skills.

2.4 Need theories of motivation

2.4.1 Maslow’s hierarchy of need theory

One of the most widely uses mention theories of motivation is the hierarchy of needs theory put by
psychologist Abraham Maslow. He saw human needs in the form of hierarchy ascending from the
lowest to the highest. These include

1) Psychological needs
These are the basic needs for sustaining human life itself such as food, water, warmth, shelter
and sleep Maslow took the position that until these needs are salts fled to the necessary to
maintain life other needs will not motive people.
2) Security or satisfaction
These are the needs to be free of physical danger and the fear of losing a job, properly food
or shelter.
3) Affiliation or acceptance
Since people are social beings they need to be accepted by others.
4) Esteem need
According to Maslow once people begin to satisfy their need to belong they tend to want to
be held in esteem both by themselves and by others.
5) Need for self-actualization
Maslow regards this as the highest need in hierarchy. It is the desire to become what one is
capable of becoming to maximize one’s potential and to accomplish something. /Koontz and
weihrich, 2004)
6
 2.4.2 Expectancy theory of motivation
Expectancy theory is based on the idea that work effort is direct toward behavior that people
believe will lead to desire out comes. Through experience, we develop expectations about
weather job performance and work behavior lead to particular outcomes. Finally, we
naturally direct our effort toward outcomes that help us fulfill our needs.
Expectancy theory model
The key variability of interest in expectancy theory is effort-the individual’s actual exertion
of energy. An individual’s effort level depends on the three factors. These are
A. E-P Expectancy: - the effort to performance expectancy theory is the individual’s
perception that his or her effort will result in a particular level of performance.
Expectancy is defined as probability and therefore ranges from 0 to 1
B. P-0 Expectancy: - the performance to outcome expectancy is the perceived probability
that a specific behavior or performance level will lead to specific outcome.
C. Out come to valences: - valence refers to the anticipated satisfaction or dissatisfaction
that an individual feel toward an outcome. It rangers from negative to positive. An
outcome valence represents a person’s feeling toward the outcome and is determined by
the perceptions about much the outcome will fulfill. (Mc Shane and von Glinow, 2005)

2.4.3 McClelland’s need theory

David Mc Cleland a well-known psychologist has behavior since the late 1940s. Although he is most
recognize for his research on need for achievement he also investigate the needs for affiliation and
power.

A. Need for achievement

It’s defines as to accomplish something difficult. To master manipulate or organize physical objects,
human beings or ideas to do this as rapidly and as independently as possible. To overcome obstacles
and attain a high standard. Achievement motivate people are three common characteristics.

1. A preference for working on tasks of moderate difficulty

2. A preference for situations in which performance is due to their efforts rather than other
factors such as luck
3. They desire more feedback on their success and failures than do low achievers.
B. Need for power
Reflects an individual’s desire to influence coach, teach or encourage other to achieve people with
high need for power like to work and concern with dieseline and self-respect. There is a positive and
negative side to this need. ‘’It I win you loses’’ mentality. In contrast people with a positive
orientation to power focus on accomplishing group goals and helping employees obtain the feeling
of competence. (kinaki and kreitner (2006)

7
 2.4.4 Existence, relatedness and growth need theory
Clayton Aldefer develops a needs special model of motivation that relates some of need Maslow’s
original assumptions and combines level of need. Aldefer calls his model the RTG theory by using
the first three letters. Existence needs refer to basic survival needs. Relatedness needs draw people in
to inter personal caring and status. Growth needs involve personal development and a sense of
worth.

2.4.5 Herzberg’s dual factors theory

Dual factor theory refers to two different types of needs.

1. Hygiene factors which involve working conditions and can trigger dissatisfaction if
inadequate and
2. Motivation factors which originate from the nature of the job itself and can create job
satisfaction.

These factors have positive influence on morale, satisfaction, efficiency and high productivity. Some
of these factor the work itself, recognition, achievement, responsibility, growth and advancement.
The theory provides valuable guideline for structuring the job in order to include within the job
content, such factors which bring about satisfaction. (Cook, Hunsaker and coffer, 1997)

2.5 Motives in organizations

Individuals in organization are motivate by a variety of different factors. Some people who are
working at for less pay then they could otherwise earn because they are interests in the job itself, or
like the flexibility that the job affords we also probably know people who are primarily if not
exclusively motivated by how much money they can make. The key point it that with so many
factors involved different people will motivated by different forces.

We may also know people have experience ourselves, situation where once interesting job have
become boring, or situations where pay and other working conditions once seen as faire are now
perceive as being un faire. It is important to note that not only do people differ in terms of
motivating factors, but also that their motives may change with time. Efforts design to motivate
employees to behave in ascertain way lose their effectiveness as employees satisfy one set of value
out comes, and begin to identify another set. (Moorhead, Griffin and Coleman, 1999)

2.5.1 Satisfiers as motivator factors

According to Herzberg only when a person feels the potential for satisfaction is he/she able to muster
significant work motivation. Motivator factors such as job challenge, responsibility, opportunity for
achievement or advancement and recognition provide feeling of satisfaction. These are associates
with job content and are intrinsic or unique to each individual in his or her own way. (Cook,
Hunsaker and coffer, 1997)

8
 2.5.2 Motivation employees through job design
A researcher examine the various method for conducting job design and integrate them in to an
interdisciplinary framework that contains for major approaches, mechanism, motivational, biological
and perceptual motivation. (kinaki and Kreitner, 2006)

2.6 Motivation approaches

The motivation approaches to job design attempt to improve employees affective and attitudinal
reactions such as job satisfaction and intrinsic motivation as well as a host of behavioral out comes
such as absenteeism, turn over, and performance. The approaches include: -

A) Job motivation: - it calls for moving employees from one specialized job to another
B) Job enlargement: - it involves putting more variety in to a worker’s job by combing
specialized task of comparable difficulty.
C) Job enrichment: - entails modifying a job such that an employee has opportunity to
experience, achievement, recognition, simulating work responsibility and advancement
(kincki and kreitner, 2006)
2.7 Current issues in motivation
Understanding and predicting employee motivation is one of the most popular areas in management
research current studies of employee motivation are influenced by some significant work place
issues. These include: -
2.7.1 Cross cultural challenges
In today’s global business environment mangers cannot automatically assume the motivation
programs that work in one geographic location are going to work in others. Most current motivation
theories were developing in the unite states by American and about Americans. May be the most
blatant pro American characteristic in these theories is the strong emphasis on individualism and
achievement. For instance, goal setting and expectancy theories emphasis goal accomplishment as
well as rational and individual thought. (Robbins, coulter and Vohra, 2010).
2.7.2 motivating unique growth of workers
Motivating employees have been easy employees come into organizations with different needs,
personalities, skills, abilities, interest and aptitudes. They have different expectations of their
employees and different views of what they think their employer has a right to expect of them and
they vary widely in what they want from their jobs. For instance, some employees get more
satisfaction out of their personal interest and pursuits only what a weekly pay cheek nothing more.
They are not interested in making their work more challenging or interesting or, winning,
performance contents. Others drive a great deal of satisfaction in their jobs and are motivated to
exert high level of effort. Given these difference how can managers do an effective job motivating
the unique group of employees in today’s work force? One thing to understand the motivational
requirements these groups includes include diverse employees, professionals, contingent workers
and low skilled minimum was employees. (Robbins, Coulter and Vohra, 2010)

9
 II.7.3. Motivating a diverse work force
To maximize motivation among today’s work force managers, need to think in terms of flexibility,
for instance a study tells us that men place more importance on having autonomy in their jobs than
do women. In contrast the opportunity to learn, convenient and flexible work hours and good inter
personal relations are more important to women. Having the opportunity to be independent and to
be exposing to different experiences is important to gene employees. Whereas older workers may
be more interests in highly structures work opportunities.

II.7.4.Motivating professional
Professional are different form nonprofessional, they have a strong and long term commitment to
their field of expertise. To keep current in their filed they need to regularly update their knowledge
and because of their commitment to their profession, they rarely fine their work week as to their 8
AM to 5 PM five days per a week. (Robbins, Coulter and Vohra, 2010)

II.7.5.Motivating contingent workers

Contingent workers do not have the security or stability that permanent employees have, and they
do not identify with the organization or display that commitment that other employees do. There is
no simple solution for motivating contingent workers. For that smallest of individuals who prefer
the freedom of their temporary status lack of stability may not be an issue.

II.7.6. Motivating low skilled minimum wage employee

One trap I often fall in to thinking that people are motivating only by money. Although money is
important motivator, it is not the only reward that people week and that manger can use. In
motivating minimum wage employees, mangers might look at employee recognition programs.
Many managers also recognize the sincere and give for the right reasons. (Robbins, Coulter and
Vohra,2010)

II.7.7.Designing appropriate rewards program

Employee rewards programs play a powerful role in motivating appropriate employee behavior.
Many senior people at VTI AMC had resign because of the list less work culture, but when
initiatives were taken to make the company performance drive and performance link, incentive
plans were announced out and some of the senior people who had left back to join the UTIAMC.
Fed EX, s drives are motivated by a pay system that rewards them for timeliness and how much
they deliver. (Robbins, Coulter and Vohra, 2010)

10
 2.8. Special motivational techniques
2.8.1. Money
Whether in the form of wages, piece of work letting paid for units produce at a certain quality and
level or any other incentive pay, bonuses, stock options, company paid insurance of any of other
thing that may be given to people for performance money is important. And as some writers have
point out money is often more than monetary value. It can also mean status or power.
Economists and most managers have tend to place money high on the scale motivators, while
behavior scientist tend to take in low, probably neither views right. But if money is to be the kind of
motivator that it can and should be mangers must remember several things.
First as money is likely to be more important to people who are raising a family. Second it is
probably quite true that in most kind of business and other enterprise, money is used as a means of
keeping an organization adequately satisfied and not primarily as motivator. (koontz and
weihrich,2004)
Third money as a motivator tend to be dull somewhat by the practice of making sure that salary of
various managers in a company are reasonably similar in others words, organizations often take
great care to ensure that people on comparable levels are given the same or nearly the same
compensation.
Forth, if money is to effective motivators people in various positions, even though at a similar level
must be given salaries and bonuses that reflect their individual performance. (koontz and
weihrich,2004)
2.8.2 Participation
Participation is a means of recognition. It appeals to the need for affiliation and acceptance; it gives
people a sense of accomplishment. But encouraging participation should not mean that managers
weaken their position. Although they encourage participation of subordinates on matters with which
the alter can help and although they listen carefully on matter requiring their decision they must
decide themselves. The right kind of participation yields both motivation and knowledge valuable
for enterprise success.
2.8.3 Quality of working life (QWL)
It is one of the most interesting approaches to motivation which is system to job design and
promising development in the broad area of job enrichment combined with grounding in the socio
11
technical systems approach to management QWL is not only a very broad Approach to job
enrichment but also an inter disciplinary field of inquiry and action combining industrial and
organization theory and development, motivation and leadership theory an individual’s relations.
(koontz and weihrich,2004)

2.9 A system and contingency approach to motivation

The fore going analysis of theory, research and application demonstrates that motivation must be
considere from a system and contingency point of view. Given the complexity of motivation people
with individual personalities and in different situations risks of failure exist when any single
motivator or group of motivates is applied without taking in to account these variables. Human
behavior is not a simple matter but must be break up on a system of variables and interactions of
which certain motivating aftercare an important element. (Koonth and weihrich, 2004)

2.10 Dependence of motivation organizational climate

Motivating factors definitely do not exist in a vacuum. Even individual desires and drives are
conditioned by physiology need or by need arising from a person’s back ground. But what people
are willing to strive for is also affect by the organizational climate in which they operate. At time a
climate may curb motivations at other times it may arouse them.

2.11 Motivation, leadership and manager ship

The interaction of motivation and organizational climate not only underscores the systems aspects of
motivation but also emphasis how motivational both depends on the influence leader ship styles and
management practice leader and manger must respondent to the motivations of individuals if they
are to design an environment in which people will perform willingly. Likewise they can design a
climate that will arouse or reduce motivation. Managers do this when they see that verifiable goals
are set. A strategy is developing and communicates and plans to achieve objectives are made. They
do it also in designing a system of organizational roles in which people can be effective. (Koonth
and weihrich 2004)

12
 Chapter three
3. Research methodology
3.1. Research design
The study is descriptive in design. It will be able to collect accurate data and provide a clear picture
of the phenomenon under study.
3.2 Data type and source
Both primary data secondary data types were employs this study. And also primary and secondary
data source where uses. Primary data where gathered from employees and the manager. Secondary
data were gathers from the organizational (bank) documents and reports, internet and library books.
3.3 Sampling design
3.3.1 Target population
In this study data were collect from all employees and the managers of the bank. So the target
population of the study is amount to 27 in number.
3.3.2 Sample size
Commercial bank of Ethiopian at Ebinat branch has a total 27 employees. The researcher took all
members because their number is small and to get perfect information from all employees.
3.3.3 Sampling techniques
The researcher uses census method in order to get more reliable information for the study by
considering all the target groups/units of observation/.
3.4 Data collection method

In this study both questionnaire and interview techniques were uses to collect data from primary
source whereas, document reviewing technique was employees to collect data from secondary
sources.

3.5 Methods of data processing and analysis

After collecting data from primary and secondary sources, the researcher uses different methods of
data processing techniques such as table and percentage

13
 CHAPTOR FOUR
4. Plan of Time and Budget cost
4.1 Time cost

Table 4.1 Time cost

No Activities Time of performed/months Rem

Sep oct nov Des jan feb mar apr may june ark
1 Title selection  

2 Find related literature  

review
3 Develop questionnaire  

4 Prepare proposal  

5 Proposal submission 

6 Questionnaire distribution 
7 Data collection  
8 Data interpretation  
9 Research preparation  
10 Research submission 

4.2 Budget cost

Table 4.2 Budget cost

no Activities unit amount Needs of budget remark

Unit cost Total cost
birr Cen. birr Cen
.
1 Paper cost dsta 2 145 00 290 00
2 Pens cost no 5 7 00 35 00
3 Transport cost no 25 10 00 250 00
4 Writing cost birr 2 550 00 1100 00
5 Printing cost birr 4 52 00 104 00
6 Laminating cost birr 4 25 00 100 00
7 Proposal and research submission cost birr 2 750 00 1500 00
Total cost 3379 00
 14

I. Reference
 Anglo Kincki and Robert kreitner, (2006) organizational behavior 2 nd edition, McGraw hill,
America
 Curtis cook, Phillip Hunsaker and Coffey, (1997) management and organizational behavior 2 nd
edition, Mcgraw hill, America, New York
 Gregory Moorhead, Rickyw, Griffin, P. Gregory Irving and Danielf Coleman, (2006)
organizational behavior Houghton Mifflin company united states of America
 Harold koontz and Heinz Wehrich, (2004) essential of management 6 th edition, Tata McGraw
hill, India
 Stephenp Robbins, Mary Coulter and Neharika Vohra, (2010) management 10th edition, Dorling
Kinsley, India pvt ltd
 Steven L. Mchane and Mary Annvon Glinow, (2005) organizational behavior, McGraw hill,
America, New York
 PESC INFORMATION SYSTEM COLLEGE

DEPARTMENT OF MANAGEMENT

THIS RESEARCH PAPER THE PARTIAL

FULFILLMENET OF BACHLEOR DEGREE IN
THE DEPARTMENT OF MANAGEMENT

PREPARED BY: FIKADIE WORKIE BAYE

ADVISOR:
 MAY, 2012 E.C

EBINAT,ETHIOPIA

TABLE OF CONTENT

Content page

 Acknowledgment ---------------------------------------------------------------------- I
 ABSTRACT --------------------------------------------------------------------------- II

CHAPTER ONE:

5. Introduction ------------------------------------------------------------------------------------ 1

1.1. Back ground of the study ---------------------------------------------------------------- 1

1.2. Statement of the problem------------------------------------------------------------------ 2
1.3 Research questions ------------------------------------------------------------------------- 2
1.4 Objective of the study---------------------------------------------------------------------- 3
1.5 Significance of the study ------------------------------------------------------------------ 3
1.6 Scope of the study -------------------------------------------------------------------------- 3
1.7 Limitation of the study -------------------------------------------------------------------- 3
1.8 Definitions of key terminologies --------------------------------------------------------- 4
1.9 Organization of the paper------------------------------------------------------------------ 4

CHAPTER TWO:

6. Literature Review ----------------------------------------------------------------------------- 5

2.1. Motivation --------------------------------------------------------------------------------- 5
2.2. The nature of motivation ----------------------------------------------------------------- 5
2.3. The importance of motivation ----------------------------------------------------------- 6
2.4. Need theories of motivation ------------------------------------------------------------- 6
2.5. Motives in organizations ----------------------------------------------------------------- 8
2.6. Motivational approaches ----------------------------------------------------------------- 9
2.7. Current issues is motivation ------------------------------------------------------------- 9
 2.8. Special motivational techniques -------------------------------------------------------- 11
2.9. System and contingency approach to motivation ------------------------------------ 12
2.10. Dependence of motivation organizational climate --------------------------------- 12
2.11. Motivation, leadership and manager ship ------------------------------------------- 12

CHAPTER THREE:

7. Research Methodology ------------------------------------------------------------------------ 13

3.1. Research design--------------------------------------------------------------------------- 13
3.2. Data type and source --------------------------------------------------------------------- 13
3.3. Sampling design -------------------------------------------------------------------------- 13
3.4. Data collection method ------------------------------------------------------------------ 13
3.5. Method of data processing and analysis ----------------------------------------------- 13

CHAPTER FOUR

8. Data analysis, presentation and interpretation --------------------------------------- 14

4.1. Introduction ------------------------------------------------------------------------------- 14
4.2. Personal information of respondents -------------------------------------------------- 14
4.3. Organizational information’s related to the study ----------------------------------- 17
4.4. Result of interview ----------------------------------------------------------------------- 23

CHAPTER FIVE

9. CONCLUSION AND RECOMMENDATION

5.1. CONCLUSION --------------------------------------------------------------------------- 24
5.2. RECOMMENDATION ----------------------------------------------------------------- 25
I. REFERNCE --------------------------------------------------------------------------------- 26
 Acknowledgement

First of all, I want to that for super natural GOD who initiates all things having
educative ups and downs with respective and lovely finalization.
Next I would like impart my heartfelt gratitude to my sister Bayech Mesfin. Who
rendered all round assistance in my school and under graduated studies and also for
her material Vs finical assistance.
Finally, I will not forget your cooperation and advice for all my friends and
relatives Agegnehu and Mastewal Kelebu….
 III.

ABSTRACT
The aim of this study was to identify the various elements which affect the motivation
to an employee’s performance in case of commercial bank of Ethiopia at Ebinat
branch on day to day tasks. The study is based on the primary and secondary data
collection methods from the 27 sample employees of commercial bank of Ethiopia are
females and the majority of the respondent’s educational level is first degree.

Most of the employee agreed about the existence of appropriate motivation provided
by the organization. The current situation link increasing appropriate salary, bonuses
so there are no theories of motivation applied in the bank.
 IV.

MISSION

To provide our corporate, retail, and investment clients with customized high quality
competitively priced financial solutions.

VISSION

To be the bank of excellence in service and commitments.

Objective of commercial bank

 To increase market, share and to maximize profitability

 To increase the lever of capital in order to raise the lending limit of the bank
obtain a high income.
 V.

CHAPTER ONE

2. INTRODUCTION
2.1. Backgrounds of study
The term motivation derives from the Latin word move, meaning ‘’to move ‘’. In the present
context, motivation represents those psychological processes that cause the arousal, direction and
persistence of voluntary actions that are goal directed managers need to understand these
psychological processes if they are to successfully guide employees toward accomplishing
organization objectives. (A kini cki, R. krenter, 2006)

As Angelo Knick and Robert kreinter explained effective employee motivation has long been one of
the managements lunging in light of organization trends to down size and reengineer and demands
associated with managing a diverse work force, as reveled in the pining case companies such as Saks
Fifth Avenue and satisfaction as critical for organizational success.

Motivation refers to the forces within a person that defect his or her direction in the nation and
persistence of voluntary behavior in the work place. Motivating employees are willing to exert a
particular level of effort / intensity/ for a certain amount of time /persistency/ toward a particular
goal /direction/. even when people have clear work objective, the right skills and supportive work
environment, they must have sufficient motivation to achieve work objectives. As new generation of
employees enter the work place and as globalization creates a more diverse work force, companies
need to re think their motivational practice. (Steven L. McShane and Mary Annona Glinow, 2005)

According to kinaki(2006) job context influences employee motivation and performance. Economics
professors Sandra black and lisalinch estimated that 98% of growth in multifactor productivity in the
190s / i.e. the growth in the productivity that goes beyond investment in new technology /was due to
innovative work place practices. Examples include, job satisfaction, typing, compensation to
performance and employee empowerment. Motivational behaviors are directly affected by an
individual’s ability and job knowledge.

Motivation and combination of enabling and limiting job context factors, for instance it would be
difficult to persist on a project if you are working with directive raw materials or broken equipment.
In contrast motivated behavior are likely to be enhanced when managers supply employees with
adequate resources to get job done and provide effective coaching, this coaching might entail
furnishing employees with successful role models showing employees how to complex taxes and
helping them maintain high self-efficiency and self-esteem.

Performance is in turn influenced by motivated behavior. (kinicki and kreitner, 2006)

 1

1.2 Statement of the problem

Human resource is one of the most vital resources to the organization like other resources. Satisfied
and activated employees have great contribution to the successful accomplishment of the
organization objective. To have hard employees who does their job effectively and efficiently the
organizational techniques to increase employees performance.

The manager of the bank replied that in the previous times no enough motivational factors exist in
the organization and employees cannot change their performance in high stage to complete all tasks
perfectly and completely. As a result, if this employee motivation and performance have low
development stage in organizations in order to give motives to employees in available condition.

No a day motivation is a very decisive factor to employees of the organization to be competitive in

the globalization world.

In previous times even if there are qualified employees who has a great knowledge, skill and
experience to do their job, they do not change their performance as the organization Objective
expects from their result. This activity directly affects the organization objectives and goals to be
achieved.

By conducting this study, the researcher identified the following problems regarding effect of
motivation on employee performance from the study organization.

 Lack of motivation factors that are given to employees. To initiate them to do their active
effectively and efficient to achieve the organization goal and objective.
 There is unfair performance evaluation in the organization which affects their moral and
this creates negative attitude towards the organization and to their work.
 The existence of poor management decision in the organization.
 Motivation type and level of motivation given to employees.
 Level and type of motivational techniques different that are given to employees in the
organization.
1.3 research questions
Basically the study tried to address the following questions.

 What types of motivational techniques are employed in the bank?

 Does the bank make evaluation on motivation tools?
 What are the benefits of the motivation to employee’s performance who work in
the bank?
 2

1.4 Objective of the study

1.4.1 General objective

The general objective of the study is to assess the effect of motivation on employee performance in
case of commercial bank of Ethiopia at Ebinat branch.

1.4.2 Specific objective

In line with the general objective, the study here the following specific objective.

 To identify motivational techniques employed in the organization.

 To see whether there is evaluation or not on motivational tools.
 To assess the benefit of motivation to employee’s performance who work in commercial
bank of Ethiopia at Ebinat branch.
1.5 Significance of the study
Proper study on the effect of motivation on employee performance will have some advantage for
commercial bank of Ethiopia at Ebinat branch and for other parities. Some of them are;

 The study will help the bank to know the necessary of motivation.
 The study will help the bank to determine what kind of motivation tools to provide.
 It will help the organization to understand the strength and weakness of its own employee
performance.
 It gives the researcher knowledge, experience and skill for further study.
 It used us a reference for other researchers.
 Enable other similar organization to know about the effect of motivation on employee
performance.
1.6 Scope of the study
The study conducted only on the motivation on employee performance in case of commercial bank
of Ethiopia at Ebinat branch. it does not include other branches which found in other different
places, because to include other Brach, transportation costs and time to study is unable to the
researcher.

1.7 Limitation of the study

The researcher faces some problem to conduct this study. These include: -

 Information shortage is major problem.

  Some of the respondents do not give accurate information.

 The study does not cover other factors that affect employee performance.
 The researcher lack experience to do the research.
1.8 Definitions of key terminologies
Motivation: - a process by which a person effort is energized, directed and sustained to ward
attaining a goal.

Job design: - is how organizations define and structure job to enhance employee performance.

Job rotation: - is systematically moving workers from one job to another in attempt to minimize
monotony and boredom.

Job enlargement: - expands workers job to include tasks previously performed by other workers.

Job enrichment: - employees are motivated by positive job related experience such as a feeling of
achievement responsibility and recognition.

Existence need: - are necessary for basic human service roughly corresponding to the physiological
and security need.

Growth need: - are logos to Maslow needs for self-esteem and self-actualization.

Employee performance: - is an ability of organization workers to carry out or complete an action that
exists in the organization.

1.9. Organization of the paper

The study has five basic chapters.

Chapter one incorporated background of the study, statement of the problem, research question,
objective of the study, significance of the study, scope of the study, limitation of the study, definition
of key terminologies an organization of the paper. Chapter two is about literature review, chapter
three deals with research methodology, chapter four discussed about data analysis, presentation and
interpretation and last chapter is about conclusion and recommendation.
 4

CHAPTER TWO

2. REVIEW LITERATURE

2.1 MOTIVATION
Human motive are based on needs, whether consciously or sub consciously felt. Some are primary
need such as the physiologically requirements for water, air, food, sleep and shelter. Other needs
may be responded as secondly such as self-esteem, status, affiliation which others, affection, giving
accomplishment and self-assertion. Naturally this needs very in intensity and over time among
different individual.

Motivation is general term applying to the entire class of drives, desires, wishes, and similar forces.
To say that managers motivate their subordinate is to say that they do these things which they hope
will satisfy these drives and include the subordinates to act a desired manner. (Koontz and Weihrich,
2004)

Trough out most of the twentieth century managers have tried to fine the key that unlocks people’s
motivation to work with the help of research. We have come to realize that motivation to work
involves several distinct elements. It is not simply a case of some people having it and others not. It
involves a conscious decision to perform one or more activation contains with greater effort than
other activities competing for attention of motivation contains three elements: -

d. Some need, motive or goal that triggers action.

e. A selection process that directs choice of action.
f. The intensity of effort is applied to chosen action.

In essence motivation governs behavior selection direction and level of effort. (Cook, Hunsaker and
Coffer, 1997)

2.2 The nature of motivation

Motivation is asset of factors that causes people to engage in one behavior rather than some alter
nature engage in one behavior. Students who say up all night to ensure that their term papers are the
best they can be, sales person who work of Saturday to get a head, and doctors who make follow-up
phone calls to patient to cheek on their condition a real motivated people. Of course students who
avoid the term paper by spending the day at the beach, sales person who go home early to escape a
tedious sales call, and doctors who skill follow up calls to have more time for golf are also motivated
but their goals are different from the manager’s view point the
 5

Objective is to motivation people to behave in ways that are in the organizations best interest
(Moorhead, Griffin, Irving, and Coleman, 1999)

2.3 The importance of motivation

Managers strive to motivate people in the organization to perform at high level. This means getting
them to work regularly, and make positive contributions to the organization’s mission. But job
performance depends on ability and environment as well as motivation the relationship can be stated
as follows.

P=M+A+E

When. M=motivation P=performance A=ability E=environment

To reach high level of performance, an employee must want to do the job /motivation/, must be able
to do the job /ability/ and must have the materials, resources and equipment to do the job
/environment/. Deficiencies in any one of these areas hurt performance. A manger should thus strive
to ensure that all three conditions are met. Motivation is the most difficult factor to manage an
employee who lacks the ability to perform can be sent to training programs to learn new job skills.

2.4 Need theories of motivation

2.4.1 Maslow’s hierarchy of need theory

One of the most widely used mentioned theories of motivation is the hierarchy of needs theory put
by psychologist Abraham Maslow. He saw human needs in the form of hierarchy ascending from the
lowest to the highest. These include

6) Psychological needs
These are the basic needs for sustaining human life itself such as food, water, warmth, shelter
and sleep Maslow took the position that until these needs are salts fled to the necessary to
maintain life other needs will not motive people.
7) Security or satisfaction
These are the needs to be free of physical danger and the fear of losing a job, properly food
or shelter.
8) Affiliation or acceptance
Since people are social beings they need to be accepted by others.
9) Esteem need
According to Maslow once people begin to satisfy their need to belong they tend to want to
be held in esteem both by themselves and by others.
 10) Need for self-actualization
Maslow regards this as the highest need in hierarchy. It is the desire to become what one is
capable of becoming to maximize one’s potential and to accomplish something. /Koontz and
weihrich, 2004)
6
2.4.2 Expectancy theory of motivation
Expectancy theory is based on the idea that work effort is directed toward behavior that
people believe will lead to desired out comes. Through experience, we develop expectations
about weather job performance and work behavior lead to particular outcomes. Finally, we
naturally direct our effort toward outcomes that help us fulfill our needs.
Expectancy theory model
The key variability of interest in expectancy theory is effort-the individual’s actual exertion
of energy. An individual’s effort level depends on the three factors. These are
D. E-P Expectancy: - the effort to performance expectancy theory is the individual’s
perception that his or her effort will result in a particular level of performance.
Expectancy is defined as probability and therefore ranges from 0 to 1
E. P-0 Expectancy: - the performance to outcome expectancy is the perceived probability
that a specific behavior or performance level will lead to specific outcome.
F. Out come to valences: - valence refers to the anticipated satisfaction or dissatisfaction
that an individual feel toward an outcome. It rangers from negative to positive. An
outcome valence represents a person’s feeling toward the outcome and is determined by
the perceptions about much the outcome will fulfill. (Mc Shane and von Glinow, 2005)

2.4.3 McClelland’s need theory

David Mc Cleland a well-known psychologist has behavior since the late 1940s. although he is most
recognized for his research on need for achievement he also investigated the needs for affiliation and
power.

C. Need for achievement

It’s defined as to accomplish something difficult. To master manipulate or organize physical objects,
human beings or ideas to do this as rapidly and as independently as possible. To overcome obstacles
and attain a high standard. Achievement motivated people are three common characteristics.

4. A preference for working on tasks of moderate difficulty

5. A preference for situations in which performance is due to their efforts rather than other
factors such as luck
6. They desire more feedback on their success and failures than do low achievers.
D. Need for power
Reflects an individual’s desire to influence coach, teach or encourage other to achieve people with
high need for power like to work and concerned with dieseline and self-respect. There is a positive
and negative side to this need. ‘’It I win you loses’’ mentality. In contrast people with a positive
orientation to power focus on accomplishing group goals and helping employees obtain the feeling
of competence. (kinaki and kreitner (2006)

7
2.4.4 Existence, relatedness and growth need theory
Clayton Aldefer developed a needs special model of motivation that relates some of need Maslow’s
original assumptions and combines level of need. Aldefer calls his model the RTG theory by using
the first three letters. Existence needs refer to basic survival needs. Relatedness needs draw people in
to inter personal caring and status. Growth needs involve personal development and a sense of
worth.

2.4.5 Herzberg’s dual factors theory

Dual factor theory refers to two different types of needs.

3. Hygiene factors which involve working conditions and can trigger dissatisfaction if
inadequate and
4. Motivation factors which originate from the nature of the job itself and can create job
satisfaction.

These factors have positive influence on morale, satisfaction, efficiency and high productivity. Some
of these factor the work itself, recognition, achievement, responsibility, growth and advancement.
The theory provides valuable guideline for structuring the job in order to include within the job
content, such factors which bring about satisfaction. (Cook, Hunsaker and coffer, 1997)

4.5 Motives in organizations

Individuals in organization are motivated by a variety of different factors. Some people who are
working at for less pay then they could otherwise earn because they are interested in the job itself, or
like the flexibility that the job affords we also probably know people who are primarily if not
exclusively motivated by how much money they can make. The key point it that with so many
factors involved different people will motivated by different forces.

We may also know people have experienced ourselves, situation where once interesting job have
become boring, or situations where pay and other working conditions once seen as faire are now
perceived as being un faire. It is important to note that not only do people differ in terms of
motivating factors, but also that their motives may change with time. Efforts designed to motivate
employees to behave in ascertain way lose their effectiveness as employees satisfy one set of valued
out comes, and begin to identify another set. (Moorhead, Griffin and Coleman, 1999)

2.5.1 Satisfiers as motivator factors

According to Herzberg only when a person feels the potential for satisfaction is he/she able to muster
significant work motivation. Motivator factors such as job challenge, responsibility, opportunity for
achievement or advancement and recognition provide feeling of satisfaction. These are associated
with job content and are intrinsic or unique to each individual in his or her own way. (Cook,
Hunsaker and coffer, 1997)

2.5.2 Motivation employees through job design

A researcher examined the various method for conducting job design and integrated them in to an
interdisciplinary framework that contains for major approaches, mechanism, motivational, biological
and perceptual motivation. (kinaki and Kreitner, 2006)

2.6 Motivation approaches

The motivation approaches to job design attempt to improve employees affective and attitudinal
reactions such as job satisfaction and intrinsic motivation as well as a host of behavioral out comes
such as absenteeism, turn over, and performance. The approaches include: -

D) Job motivation: - it calls for moving employees from one specialized job to another
E) Job enlargement: - it involves putting more variety in to a worker’s job by combing
specialized task of comparable difficulty.
F) Job enrichment: - entails modifying a job such that an employee has opportunity to
experience, achievement, recognition, simulating work responsibility and advancement
(kincki and kreitner, 2006)
2.7 Current issues in motivation
Understanding and predicting employee motivation is one of the most popular areas in management
research current studies of employee motivation are influenced by some significant work place
issues. These include: -
2.7.1 Cross cultural challenges
In today’s global business environment mangers cannot automatically assume the motivation
programs that work in one geographic location are going to work in others. Most current motivation
theories were developed in the united states by American and about Americans. May be the most
blatant pro American characteristic in these theories is the strong emphasis on individualism and
achievement. For instance, goal setting and expectancy theories emphasis goal accomplishment as
well as rational and individual thought. (Robbins, coulter and Vohra, 2010).
2.7.2 motivating unique growth of workers
Motivating employees have been easy employees come into organizations with different needs,
personalities, skills, abilities, interest and aptitudes. They have different expectations of their
employees and different views of what they think their employer has a right to expect of them and
they vary widely in what they want from their jobs. For instance, some employees get more
satisfaction out of their personal interest and pursuits only what a weekly pay cheek nothing more.
They are not interested in making their work more challenging or interesting or, winning,
performance contents. Others drive a great deal of satisfaction in their jobs and are motivated to
exert high level of effort. Given these difference how can managers do an effective job motivating
the unique group of employees in today’s work force? One thing to understand the motivational
requirements these groups includes include diverse employees, professionals, contingent workers
and low skilled minimum was employees. (Robbins, Coulter and Vohra, 2010)

V.7.3. Motivating a diverse work force

To maximize motivation among today’s work force managers, need to think in terms of flexibility,
for instance a study tells us that men place more importance on having autonomy in their jobs than
do women. In contrast the opportunity to learn, convenient and flexible work hours and good inter
personal relations are more important to women. Having the opportunity to be independent and to
be exposed to different experiences is important to gene employees. Whereas older workers may be
more interested in highly structured work opportunities.

V.7.4. Motivating professional

Professional are different form nonprofessional, they have a strong and long term commitment to
their field of expertise. To keep current in their filed they need to regularly update their knowledge
and because of their commitment to their profession, they rarely fine their work week as to their 8
AM to 5 PM five days per a week. (Robbins, Coulter and Vohra, 2010)

V.7.5. Motivating contingent workers

Contingent workers do not have the security or stability that permanent employees have, and they
do not identify with the organization or display that commitment that other employees do. There is
no simple solution for motivating contingent workers. For that smallest of individuals who prefer
the freedom of their temporary status lack of stability may not be an issue.

V.7.6. Motivating low skilled minimum wage employee

One trap I often fall in to thinking that people are motivating only by money. Although money is
important motivator, it is not the only reward that people week and that mangers can use. In
motivating minimum wage employees, mangers might look at employee recognition programs.
Many managers also recognize the sincere and given for the right reasons. (Robbins, Coulter and
Vohra,2010)

V.7.7. Designing appropriate rewards program

Employee rewards programs play a powerful role in motivating appropriate employee behavior.
Many senior people at VTI AMC had resigned because of the list less work culture, but when
initiatives were taken to make the company performance driven and performance linked, incentive
plans were announced out and some of the senior people who had left back to join the UTIAMC.
Fed EX, s drives are motivated by a pay system that rewards them for timeliness and how much
they deliver. (Robbins, Coulter and Vohra, 2010)
 10

2.8. Special motivational techniques

2.8.1. Money
Whether in the form of wages, piece of work letting paid for units produced at a certain quality and
level or any other incentive pay, bonuses, stock options, company paid insurance of any of other
thing that may be given to people for performance money is important. And as some writers have
pointed out money is often more than monetary value. It can also mean status or power.
Economists and most managers have tended to place money high on the scale motivators, while
behavior scientist tend to take in low, probably neither views right. But if money is to be the kind of
motivator that it can and should be mangers must remember several things.
First as money is likely to be more important to people who are raising a family. Second it is
probably quite true that in most kind of business and other enterprise, money is used as a means of
keeping an organization adequately satisfied and not primarily as motivator. (koontz and
weihrich,2004)
Third money as a motivator tend to be dulled somewhat by the practice of making sure that salary
of various managers in a company are reasonably similar in others words, organizations often take
great care to ensure that people on comparable levels are given the same or nearly the same
compensation.
Forth, if money is to an effective motivators people in various positions, even though at a similar
level must be given salaries and bonuses that reflect their individual performance. (koontz and
weihrich,2004)
2.8.2 Participation
Participation is a means of recognition. It appeals to the need for affiliation and acceptance; it gives
people a sense of accomplishment. But encouraging participation should not mean that managers
weaken their position. Although they encourage participation of subordinates on matters with which
the alter can help and although they listen carefully on matter requiring their decision they must
decide themselves. The right kind of participation yields both motivation and knowledge valuable
for enterprise success.
 2.8.3 Quality of working life (QWL)
It is one of the most interesting approaches to motivation which is system to job design and
promising development in the broad area of job enrichment combined with grounding in the socio
11
technical systems approach to management QWL is not only a very broad Approach to job
enrichment but also an inter disciplinary field of inquiry and action combining industrial and
organization theory and development, motivation and leadership theory an individual’s relations.
(koontz and weihrich,2004)

2.9 A system and contingency approach to motivation

The fore going analysis of theory, research and application demonstrates that motivation must be
considered from a system and contingency point of view. Given the complexity of motivation people
with individual personalities and in different situations risks of failure exist when any single
motivator or group of motivates is applied without taking in to account these variables. Human
behavior is not a simple matter but must be brooked up on a system of variables and interactions of
which certain motivating aftercare an important element. (Koonth and weihrich, 2004)

2.10 Dependence of motivation organizational climate

Motivating factors definitely do not exist in a vacuum. Even individual desires and drives are
conditioned by physiology need or by need arising from a person’s back ground. But what people
are willing to strive for is also affected by the organizational climate in which they operate. At time a
climate may curb motivations at other times it may arouse them.

2.11 Motivation, leadership and manager ship

The interaction of motivation and organizational climate not only underscores the systems aspects of
motivation but also emphasis how motivational both depends on the influence leader ship styles and
management practice leader and manger must respondent to the motivations of individuals if they
are to design an environment in which people will perform willingly. Likewise they can design a
climate that will arouse or reduce motivation. Managers do this when they see that verifiable goals
are set. Strategies are developed and communicated and plans to achieve objectives are made. They
do it also in designing a system of organizational roles in which people can be effective. (Koonth
and weihrich 2004)

12
 Chapter three
3. Research methodology
3.1. Research design
The study is descriptive in design. It will be able to collect accurate data and provide a clear picture
of the phenomenon under study.
3.2 Data type and source
Both primary data secondary data types were employed this study. And also primary and secondary
data source where used. Primary data where gathered from employees and the manager. Secondary
data were gathered from the organizational (bank) documents and reports, internet and library
books.
3.3 Sampling design
3.3.1 Target population
In this study data were collected from all employees and the managers of the bank. So the target
population of the study is amounted to 27 in number.
3.3.2 Sample size
Commercial bank of Ethiopian at Ebinat branch has a total 27 employees. The researcher took all
members because their number is small and to get perfect information from all employees.
3.3.3 Sampling techniques
The researcher used census method in order to get more reliable information for the study by
considering all the target groups/units of observation/.
3.4 Data collection method

In this study both questionnaire and interview techniques were used to collect data from primary
source whereas, document reviewing technique was employed to collect data from secondary
sources.

3.5 Methods of data processing and analysis

After collecting data from primary and secondary sources, the researcher used different methods of
data processing techniques such as table and percentage

13
 CHAPTOR FOUR
4. Data analysis presentation and interpretation
4.1 Introduction
This chapter represents analysis, presentation and interpretation of data collected from respondents.
The responses were collected through questionnaires and interview. The respondents are
employees of commercial bank of Ethiopian at Ebinat branch. 27 questionnaire papers were
distributed to employees of the bank and 23 of the questionnaire were filled properly and collected
bank. The remaining 4 were not returned.
Table 4.1 distributed questionnaire paper

Questionnaire paper Number Percentage

Returned 23 85%
Unreturned 4 15%
Total 27 100%

4.2 personal information of respondents

The respondents who filled this questionnaire are from different backgrounds. They are different in
age, sex, educational level, and years of service experience salary level and material status.

Table 4.2 ages of respondents

Age Respondents
Number Percentage
18-25 4 17%
26-35 11 48%
36-45 8 35%
>45 - -
Total 23 100%

Source: questionnaire, 2008 E.C

As it is indicated the above table 4.2.4 (17%) of respondents have age 18-25 years, 11 (48%) of
respondents are between age of 26-35 years and 8 (35%) of respondents between 36-45 years.
Therefore, it indicates the majority of respondents are fall between 36-35 which accounted 48% of
the total respondents.

14
Table 4.3 sex of respondents

Sex Respondents
Number Percentage
Male 18 78%
Female 5 22%
Total 23 100
Source: questionnaires, 2008 E.C

As show in the above table 4.3, out of the total respondents, 18 (78%) of respondents are male while
the remaining 5 (22%) of respondents are females. This shows that number of males greater than
number of female.

[ Table 4.4 educational level of respondents

Educational level Respondents

Number Percentage
Blow Diploma 6 26%
Diploma 4 17%
Degree 13 57%
Master - -
PHD - -
Total 23 100%
Source: questionnaires, 2008 E.C

As it is observed from table 4.4 out of the total respondents, 6 (26%) of respondents have below
diploma, 4 (17%) of respondents have diploma, and 3 (13%) of respondents have degree educational
level. This shows that majority of respondents have degree.

Table 4.5 years of service experience of respondents

Tear of service experience Respondents

Number Percentage
Less than 1 year 6 26%
1-5 year 12 52%
6-10 year 5 22%
Above 10 year - -
Total 23 100

Source: questionnaire, 2008 E.C

As it is observed from table 4.5, out of the total respondents, 6 (26%) of respondents have less than
one year’s service experience, 12 (5%) of respondents have 1-5 year service experience

15
And 5 (22%) of respondents have 6-10 year service experience. There for majority of respondents
have 1-5 years of service experience.

Table 4.6 salary level of respondents

Salary level Respondents

Number Percentage
<1500 6 26%
1500-2000 2 9%
2001-3000 4 17%
>3000 11 48%
Total 23 100

Source: questionnaire 2008 E.C

As it shown in the above table 4.6 out of the total respondents, 6 (26%) of respondents earned less
than 1500, 2 (9%) of respondents earned 1500-2000, 4 (17%) of respondents earned 2001-3000, 11
(48%) of respondents earned greater than 3000. Therefore, majority of respondents earned greater
than 3000 of salary.

Table 4.7 marital status of respondents

Marital status Respondents

Number Percentage
Married 14 61%
Divorced - -
Single 9 39%
Total 23 100

Source: questionnaire 2008E.C

As indicated in the above table 4.7, 14 (61%) of respondents are married while 9 (39%) of
respondents are single. So majority of respondents are married.
 16

4.3 Organizational information’s related to the study

Table 4.8 level of motivation of respondents

Level of motivation Respondents

Number Percentage
Very high 5 22
High 6 26
Medium 10 43
Low 2 9
Very low - -
Total 23 100
Source: questionnaire, 2008 E.C

According to table 4.8, 5 (22%) of respondents have very high level of motivation gotten from the
bank, 6 (26%) of respondents respond that they have high level of motivation given to them, 10
(43%) of respondents responded that they have medium level of motivation given to them and the
remaining 2 (9%) of respondents responded that they have low level of motivation given to them.
This shows that in the bank there is medium level of motivation to employees,

Table 4.9 employee’s response about the existence of approach rate motivation in the
organization

Item Response Respondent

Number Percentage
There is appropriate Strongly agree 6 26%
Motivation in the Agree 11 48%
organization Neutral 3 13%
Disagree 3 13%
Strongly disagree - -
Total 23 100
Source: questionnaire, 2008 E.C

According to table 4.9 above, 6 (26%) of respondents strongly agree about the existence of
appropriate motivation in the organization, 11 (48%) of respondents agree about existence of
appropriate motivation in the organization, 3 (13%) of respondents are neutral about existence of
appropriate motivation in the organization, the rest 3 (13%) of respondents are disagree about the
existence of appropriate motivation in the organization. The researcher can conclude that most of
respondents are agree about the existence of appropriate motivation in the organization.
 17

Question Response Respondents

Number Percentage
Does your organization Yes 14 61%
Evaluation motivational tools No 4 17%
Unknown 5 22%
Total 23 100
Table 4.10 employees respondents whether or not the organization evaluate motivational tools

Source: questionnaire, 2008 E.C

As it indicated in the above table 4.10, 14 (61%) of the respondents indicated that there exists
evaluation of motivational tools in the organization. In reverse to this 4 (17%) of respondents
indicate that there is no evaluation of motivational tools in the organization, and the remaining 5
(22%) of the respondents unknown about the existence of evaluation to motivational tools in the
organization.

Table 4.11 employees response about the motivation exist in your organization influence employee
performance

Question Response Respondents

Number Percentage
Do you think the motivation exist in your Yes 17 74%
organization influence employee No 6 26%
performance Total 23 100
Source: questionnaire, 2008 E.C

As table 4.11 implies that, 17 (74%) of respondents believe that motivation exist in the bank
influence employee performance. They give the following reasons.

 It boosts our moral and initiates us to increase our performance by giving certificate and
salary bonus, medical coverage /health care/, group and life insurance.
 If we motivate we do our activities effectively and efficiently fulfill bank goals and
objectives.
 The organization employee’s performance exists are every day compute personal works.
 High motivational scheme highly affect performance of employees when commercial bank of
Ethiopia in Ebinat branch compared with other bank in the country.
 The remaining 6 (26%) of respondents believe that motivational exist in the bank do not
influence employee performance. They give the following reason.
 There are no motivation tools in our organization. If there is one motivational tool in it, the
organization will improve its profitability and good will.

Generally, as the majority expressed that motivation exist in the bank influence employee
performance. This indicates that the existence of motivation in the bank have significant impact on
employee performance.
 18

Table 4.12 employee’s response about factor of motivational that influence their efficiency

Question Response Respondents

Number Percentage
Which motivational factor Work it self 11 48%
influence your efficiency Recognition 6 26%
Growth 4 17%
Achievement - -
Advancement 2 9%
Total 23 100
Source: questionnaire, 2008E.C

Based on the above table 4.12, 11 (48%) of respondents answered that work itself influence
employee efficiency, 6 (26%) of respondents answered that recognition influence employee
efficiency, 4 (17%) of respondents answered that growth influence their efficiency and the remaining
2 (9%) of respondents answered that advancement influence their efficiency. This shows that work it
influence most of the employee’s efficiency.

Table 4.13 employee’s respondents about the relationship between workers motivate them for
higher performance

Question Response Respondents

Number Percentage
Does the relationship between Yes 14 61%
workers motivate you for higher No 9 39%
performance. Total 23 100

Source: questionnaire, 2008 E.C

As it is indicated in table 4.13, 14 (61%) of respondents answered that the relationship between
workers motivate them for higher performance. They give the following discretion when they say
yes.

 They have good relationship between higher staff leaders share experience, opinion, idea,
feeling and it creates good moral and gives higher performance to them.
 If workers have good relationship they use common material equipment’s in staff which are
not distributed individually.

The remaining 9 (39%) of respondents answered that the relationship between workers did not
motivate them for higher performance. They give the following reason

 Sometimes relationship between them faces negatively and creates conflict which affects
their moral, and relatedness productivity of the bank.
 This indicate that the relationship between workers motivate employees for higher
performance.
 19

Table 4.14 employee’s response about motivational approaches the organizational give to
them

Question Response Respondent

Number Percentage
What motivation approaches Salary 5 22%
Does your organization give Bonus 12 52%
To you. Psychology factor 2 9%
Financial reward - -
All together 4 17%
Total 23 100

Source: questionnaire, 2008E.C

According to table 4.14, 5 (22%) of respondents answered that salary given to use as
motivational approach, 12 (52%) of respondents that bonus given to us as motivational
approach, 2 (9%) of respondents that psychological factors given to us as motivational
approach and the remaining 4 (17%) of the respondents answered all listed motivational
approaches give to us. Form this we can say that bonus is given to most of employees as
motivational approach.
Table 4.15 employee’s response about the existence of appropriate incentive in the
organization

Question Response Respondents

Number Percentage
There is appropriate Strongly agree 5 22%
incentive Agree 13 56%
In the organization. Neural 5 22%
Disagree - -
Strongly disagree - -
Total 23 100
Source: questionnaire, 2008 E.C
Based on the table 4.15, 5 (22%) of respondents strongly agreed about the existence of
appropriate incentive in the organization, 13 (56%) of respondents agree about the existence
of appropriate incentive in the organizational and remaining 5 (22%) of the respondents are
neutral about the existence of appropriate incentive in the organization. This indicates that
most of the respondents agree that there is appropriate incentive in the organization.
Table 4.16 employee’s respondents about techniques that organization uses to motivate
employees

Question Response Respondents

Number Percentage
What are the Promotion 3 13%
 techniques that Pension 3 13%
your organization use to Training 3 13%
20

Source: questionnaire, 2008E.C

Motivate employees? Performance appraisal 9 39%

All above 5 22%
Total 23 100

Based on table 4.16, (13%) of respondents responded that promotion uses our organization to
motivate us, 3 (13%) of responded pension is the technique that our organization use to motivate
employees, 3 (13%) of respondents respond that our organizational use training to motivate
employees, 9 (39%) of the respondents respond that the organization use performance appraisal to
motivate employees. And 5 (22%) of responded that the organizational use all listed techniques to
employees. This show that most of the time the organization use performance appraisal to motivate
employees.

Table 4.17 employee’s response about the existence appropriate pay raise in the organization that
motivates employees to do effectively

Question Response Respondent

Number Percentage
There is appropriate pay raise in the Strongly agree 5 22%
organization that motivates you to Agree 10 43%
do effective Neutral 5 22%
Disagree 3 13%
Strongly disagree - -
Total 23 100%
Source: questionnaire, 2008 E.C

Table 4.17 indicates that, 5 (22%) of the respondents strong agree that there is appropriate pay raise
in the organization, 10 (43%) of the respondents agree that there is appropriate pay raise in the
organization, 5 (22%) of respondents are neutral about the existence of appropriate pay raise in the
organization. and the remaining 3 (13%) of the respondents disagree that there is appropriate pay
raise in the organization. This shows most of respondents agree by the existence of appropriate pay
raise in the organization that motivate them to do effective.

Table 4.18 employees’ response about the existence of appropriate pay raise in the organization
that motivates employee employees to do effectively

Question Response Respondents

Number Percentage
Working environment in Strongly agree 5 22%
organization creates good Agree 14 61%
condition to increase Neutral
performance of Disagree 4 17%
employee. Strongly disagree
Total 23 100
21

Source questionnaires 2008 E. c

Table 4.18 demonstrate that 5(22%) of respondents strongly agree that working environment in their
organization creates good condition to increase performance of the of them 14(61%) the respondents
agree that working environment creates good condition to increase performance and the remaining
4(17%) of the respondents disagree that working environment in their organization creates good
condition to increase performance of them. This shows working environment in the organization
crates good condition to most of the employee to increase performance of them.

 What are the conditions that employee motivation in your organization?

The conditions unfair performance evaluation unfair promotion lack of recognition for highly
performed employees in the organization, poor management decision, lack of financial motivation in
the organization, level and type of motivational techniques, etc…

 How your organization does measure its employee’s performance?

By listening criteria of standard measure and evaluate personally and measure the direction, the
organization has its own appraisal evaluation system based on this the supervisor evaluate each
individual and approved by manager or A/manager, performance of appraisal conducted every 6
month each year, once a year conduct measurement of performance of employees. From the above
mentioned methods majority of the employees respond that performance appraisal conducted twice a
year to measure their performance.

 Do you think that your organization apply theories of motivation? What are they?

Because of dynamic economic environment the back do not consider the motivational theories in
line with the current situation like increasing appropriate pay and giving appropriate bonus, so there
is no theories of motivation apply in the bank.
 22

4.4. Results of Interview

For further information an interview was made with the manager of bank regarding the following
listed questions.

 What do you say about the effect of motivation on the employee performance?

As the manager of the bank said if employees are motivated, they will be initiated to do more for the
welling and productivity of the bank, they get satisfaction by their work, their productivity increase
and they do their work efficiency and effectively.

 What is out look of organization towered motivation?

The manager responds that the bank expects motivation is very necessary issue to employees and it
should be given in the form of salary, training, job freedom and by other means. Now a day it is a
necessary factor to be bank competitive with others by getting experienced and job lover employees.

 How do the managers measure the success of employee?

According to the bank’s manager response, performance evaluation conducts permanently every 6
months. The evaluation is relatively to level and type work.
 23

CHAPTER FIVE

CONCLUSION AND RECOMMENDATION

Based on the findings obtain, this chapter gives conclusion and recommendation.

5.1. Conclusion

 As it is shown in the analysis part in terms of age most of the employees are adults.
 The number of male employees is greater than female employees.
 In terms of educational level most employees are first degree. This shows that in the bank
there is shortage of highly professional workers who have more developed knowledge.
 Most of the employees of the bank have 1 up to 5 years experience. From this the researcher
can conclude that most of the employees have low level of work experience.
 Majority of the employee’s salary was greater than 3080 birr which accounts 48% of all
employees.
 In terms of marital states most employees are married.
 As it is indicated in the analysis part there is medium level of motivation given to employees
in the bank.
 Most of the employees of the bank respond that, there is appropriate motivation in the
organization. The researcher can conclude employees in the organization are highly
motivated.
 Majority of respondents believe that the bank evaluates motivational tools.
 Most of employees of the bank respond that motivations exist in the organization influence
employee performance. From these researcher can conduct that motivation in the
organization highly influence employee performance.
 As shown in the analysis part about factors of motivation that influences their efficiency
itself is a big factor to influence their efficiency.
 Most of respondents believe that the relationship between workers motivate them for higher
performance. This can be concluding by; the relationship between workers is a decisive
factor to their performance.
 24
 Most of the respondents said that bonus is given as motivational approach in the
organization.
 Majority of employees of the organization agree about the existence of appropriate incentive
in the organization. From this the researcher can conclude employee is the bank motivated in
their appropriate salary and bonus system.
 Majority of employees said that performance appraisal technique use to motive employee in
the bank.
 As shown in the analysis part most respondents respond that there is appropriate pay raise in
the organization that motivates to do effectively. The researcher can conclude that in the
bank appropriate pay rise given to employees.
 Most of the respondents agree about working environment in the organization/bank/ creates
good condition to increase performance of employees. This can be conclude by there is good
working environment in the bank that motivates employee.

Recommendation

Commercial bank of Ebinat branch is one of the banks that found a rounding Gondar
area /district/ to employ. Automated banking packaged for the daily banking
operations. The bank has been counting due year since it was successfully migrating
the previous “micro bank’’ banking packages more advanced ‘’flex cub’’ banking
package fur there more by employing such state of the art system it is about to
introduce anon-stop card payment service in collaboration with VISA international
and now becomes the customer’s awareness about the use of VISA card.
 25

II. Reference
 Anglo Kincki and Robert kreitner, (2006) organizational behavior 2 nd edition, McGraw hill,
America
 Curtis cook, Phillip Hunsaker and Coffey, (1997) management and organizational behavior 2 nd
edition, Mcgraw hill, America, New York
 Gregory Moorhead, Rickyw, Griffin, P. Gregory Irving and Danielf Coleman, (2006)
organizational behavior Houghton Mifflin company united states of America
 Harold koontz and Heinz Wehrich, (2004) essential of management 6 th edition, Tata McGraw
hill, India
 Stephenp Robbins, Mary Coulter and Neharika Vohra, (2010) management 10th edition, Dorling
Kinsley, India pvt ltd
 Steven L. Mchane and Mary Annvon Glinow, (2005) organizational behavior, McGraw hill,
America, New York

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