ASSESSEMENT ON EMPLOYEE MOTIVATION ON PRODUCTIVITY IN

THE CASE OF TASTY FOOD PLC

BY: MAHDER WOLDE

SENIOR ESSAY SUBMITTED TO THE COLLAGE OF BUSNIESS, ECONOMICS AND

SOCIAL SCIENCES

UNITY UNIVERSTY, DEPARTMENT OF MANAGEMENT, IN PARTIAL

FULFILLMENT OF THE REQUIREMENTS FOT THE BA DEGREE OF
MANAGEMENT

ADDIS ABEBA, ETHIOPA

AUG, 2021
 ADVISOR’S DECLARATION
This paper has been submitted for examination, by student ____________________________
with my proper advice and approval thereof.

Name of Advisor: ____________________________

Signature: ____________________________
Date: ____________________________
 STUDENT’S DECLARATION
The undersigned, hereby declare that this senior essay is my original work prepared under the
guidance of____________________________ All sources of materials used for this paper have
been duly acknowledged and this senior essay is not presented by me or any other party for any
purpose.

Name: ____________________________
Signature: ____________________________
Date: ____________________________

Acknowledgment
First and foremost, I would like to thank to the Almighty God, for the gift of life and love. I wish

to express my sincere thanks and gratitude to my advisor Oumer Abdurhaman for his excellence

guidance, unrestricted and friendly support to make this project real. Besides, thanks to tasty

foods PLC and all the staff who showed their willingness for give me the necessary data. I will

never be able to complete the research without their cooperation. I am grateful for their

contributions. Last but not the least, I would like to thank my family and friends who share me

their idea and provided me moral and valuable information related to the research project.

TABLE OF CONTENT
CHAPTER ONE........................................................................................................3
INTRODUCTION.....................................................................................................4
1.1 background of the study......................................................................................4
1.2. Statement of the Problem...................................................................................5
1.3 Objective of the Study.........................................................................................6
1.3.1.General Objective...........................................................................................................................6
1.3.2. Specific Objectives.........................................................................................................................6
1.4.Scope of the Study...............................................................................................6
1.5.Limitation of the study........................................................................................6
1.6.Research methodology........................................................................................7
1.6.1.Research Design.............................................................................................................................7
1.6.2.Population......................................................................................................................................7
1.6.3.Sampling size and sampling technique...........................................................................................7
1.6.4.Data Types and Sources of data collection.....................................................................................7
1.6.5.Data analysis and interpretation Methods.....................................................................................8
1.7. Significance of the Study....................................................................................8
1.8. Organization of the Study...................................................................................8
CHAPTER TWO:......................................................................................................9
REVIEW OF RELATED LITERATURE.................................................................9
2. Theoretical Background........................................................................................9
2.1 The Concept of Work Motivation.......................................................................9
2.2. Why to Motivate Employees?..........................................................................10
2.3. Motivation Theories.........................................................................................10
2.3.1 Hierarchy Needs of Abraham Maslow's Theory of Needs.............................................................10
2.3.2 ERG Theory...................................................................................................................................11
2.4. Factors that affect motivation...........................................................................12
2.5. Types of Motivation.........................................................................................13
2.6. Motivation Approaches and their Effect on Employee's Satisfaction and
Performance.............................................................................................................13
2.7. Management communication style...................................................................14
2.8. Reward System for Employees........................................................................15
2.9. Purpose of Reward...........................................................................................15
2.9.1. Financial Reward..........................................................................................................................16
2.9.2. Non-Financial Reward..................................................................................................................16
2.10.Importance of studying motivation...............................................................17
2.11 Various Approaches and Opines for Job Redesign.........................................18
2.11.1 Job rotation................................................................................................................................18
2.11.2 Flexi time....................................................................................................................................18
2.11.3 Job sharing..................................................................................................................................19
2.11.4 Telecommuting...........................................................................................................................19
2.12.Money and motivation.....................................................................................19
2.13. Good motivational Techniques.......................................................................19
CHAPTER THREE.................................................................................................21
3. PRESENTATI ON, ANALYSIS AND INTERPRETATION OF FINDINGS. .21
3.1. Introduction......................................................................................................21
3.2. Demographic Profiles of the Respondents.......................................................21
3.3.Motivation and productivity..............................................................................23
3.4.Data analysis through Interviews......................................................................27
CHAPTER FOUR...................................................................................................29
4 SUMMARY, CONCLUSION AND RECOMMENDATIONS..........................29
4.1 introduction........................................................................................................29
4.2.Summary of Major Finding...............................................................................29
4.3 Conclusion.........................................................................................................30
4.4. Recommendations............................................................................................31
REFERENCES........................................................................................................32
APPENDIX 1………………………………………………………………………………………………………………………………………34

APPENDIX 2………………………………………………………………………………………………………………………………………36

Table of Table
Table 1. Gender of the Respondents....................................................................21
Table 2. Ages of the Respondents.........................................................................21
Table 3. Educational Level of the Respondents..................................................22
Table 4. Work experience of the Respondents....................................................22
Table 5. Current Salary Level of the Respondents............................................22
Table 6 satisfaction with pay and percentage analysis.......................................22
Table 7 reason of employee performance evaluation.........................................23
Table 8 benefit package on motivation and productivity..................................23
Table 9 motivation on productivity......................................................................24
Table 10 work environment..................................................................................24
Table11 Employee attitude towards salary.........................................................25
Table 12 motivational incentives..........................................................................25
Table 13 Financial and non-financial reward.....................................................26
Table 14 motivational packages on job performance........................................26
Table 15 receiving feedback on motivation.........................................................26
Table 16 employees on decision making..............................................................27

Abstract
The general objective of this research is to study the assessment of employee motivation on

productivity in tasty food PLC. The descriptive research design was employed for the study.

Stratified sampling method was used to select departments. The sample size is 62 to select

respondent’s simple random sampling is used to this end, mixed method was employed to collect

and analyze data. The data collecting instruments were questionnaire and interview. To analyze

the data, descriptive statistic such as percentage tabulation used. The finding of this study also

showed that both financial and non-financial motivator motivated employee, however financial

reward is more motivator than non-financial reward. In conclusion, financial rewards do

contribute more for employee performance than non-financial rewards. Moreover, further in

depth investigation of the problem is recommended.

Key Words: Motivations, Performance, Financial Rewards, Non-Financial Rewards...Etc

CHAPTER ONE
INTRODUCTION
1.1 background of the study
Employee motivation is a measurement of how happy workers are with job and environmental
success. Companies should work to satisfy their customers that competitors do not that may
enable them to be most competent and may help them to satisfy in changing environment. These
out comes that satisfy customers are accomplished by employees. Therefore the Organization has
to interest in knowing how to improve the productivity of employees. Production is a function of
each employee attitude to work. Employee performance is a course partially determined by the
motivational factors practiced by the organization. Motivation is forces with in individual that
account for the level direction and persistence of effort expended at work. The motivation to
work is likely to change as other life activities change.
The motivation of a company's employees, therefore, plays a major role in achieving a high
Level of satisfaction among its customers (Petcharak, 2004). (Kovach, 1980) states that although
Several studies were done on motivation, however, managers still are not close to understanding
employee's motivation. Motivation has the role to develop and build up the desire of every
Employee of the organization to work effectively and efficiently in a located position. Even
Though money occupies a major place in the mix of motivators, yet money only cannot motivate
Employee well to work unless it is attached with other non-financial motivators (Frey and
2Osterloch, 2002; Nickols, 2003; Fort and Voltero, 2004), performance is closely related the
Following factors and affect employee performance in the workplace. They include
Comprehensible goal and job expectations, suitable selection, immediate feedback, skills to
Perform, knowledge of the organizational structure, functional feedback system, sound metal
Models, sufficient motivation through self-satisfaction, and incentives. Designing an effective
rewarding system is required serious study. It is clear-cut to motivate once employees to
accomplish organizational goals effectively. Conversely, as a result of the nature of human
being, motivation is not an easy task to do (Bateman and Snell (1996) cited in Thomas, (2012).
Sometimes motivation packages that are designed by an organization may be demotivating
factors for employees. Nonetheless, if all employees are motivated, the results can be better

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productivity and increased employee confidence (Flamholtz, 1996).
Several factors affect performance – factors such as personality, the difficulty of the task,
availability of resources, and working conditions. When performance is not at the standard level,
it must determine which performance factor needs to improved (Lussier, 2005). Considering
many approaches to motivation and how difficult it is to find or identify one that only motivates
workers, the study seeks to determine whether motivation has an effect on employees‟
performance or not. In as much as motivation impacts employee performance, there is a need to
combine the appropriate motivational tools with effective management and leadership to achieve
this goal. Studies on motivation depict that there are several ways to motivate employees. The
motivation of a company's employees, therefore, plays a major role in achieving a high level of
satisfaction among its customers (Petcharak, 2004).

1.2. Statement of the Problem

Motivation has the role to develop and inspire every member of an organization to work
effectively and efficiently. Motivation is about giving your staff the right combination of
Guidance, direction, and resources and reward, so that they are inspired and keen to work in the
Way that you want (Mulatu, 2014). The inadequate motivation of employees has led to industrial
Actions most of the time resulting in the low level of public confidence and respect in the
Institution and had further negative multiplier effects of poor performance, low morale, and lack
of discipline in the service Ludhanas, (1992). Organizations face challenges in retaining
employees due to limited opportunities for Advancement and in the current competitive market.
The loss of employees represents a loss of Skills, knowledge, and experiences which can create a
significant impact on the overall Operations of a company. Some of the threats companies face is
related to human resource Challenges. Threats in this area include volatile loyalty and
commitment, potential defective Morale, employees' taste for different motivational packages,
and an increase in the cost of Recruitment and placing Mullins, (2005).
Research Questions
1. What are the factors that motivate employees to perform in tasty foods PLC?
2. What is the relationship between these motivational programs and employees
Productivity?
3. How are employees motivated in working environment of tasty foods PLC?

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 4. What are the alternative motivational techniques the organizations should have taken to
being effective performance of employee?

1.3 Objective of the Study

The objective of this research is to assess Employee motivation on Productivity in case of tasty
foods plc.

1.3.1. General Objective

Given the above-stated problem, the aim of this study is to identify some theories and approaches
through which an organization could facilitate and maximize employee motivation and improve
contribution of workers to the company objective.
1.3.2. Specific Objectives
Specific objectives of this study will be:

1. To examine the factors which motivate employees to perform in tasty food plc.
2. To examine the relationship between motivation and employee performance.
3. Assessing currently being used major motivational techniques of tasty foods PLC.
4. To asses alternative motivational techniques.

1.4. Scope of the Study

Human resource involves activates like motivation, recruitment, placement turnover and the like.
Motivation is the process of stimulating people to actions to accomplish the goal. It is a reason
for doing something. This study is focus on mainly in employee motivation. The entire target of
this study concern on private owned organization called tasty foods PLC, Addis Ababa.

1.5. Limitation of the study

Shortage of time: The time given for the study is very short and the companies are not willing to
provide any information regarding the study because of the pandemic.

Negligence: some of the employees wouldn’t feel responsible to give appropriate answers for the
questionnaires. Language: most employees in the company don’t know English language
perfectly. I was forced to ask them in the language they understand and translate the answer in
English. Distant location and budget constraint: the study was conducted in Avery distant area
from the site of the researcher and the experience of budget constraint, it has been Difficult

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to get further information at the time of analysis for in appropriately filled questionnaires.
1.6. Research methodology
This topic deals with the research design and the methodology. It contains the research design,
population, sampling techniques, data type and source of data collection and data analysis and
interpretation method.

1.6.1. Research Design

This research work is a descriptive type of research that shows Employee motivation for
Productivity. As the main purpose of the study is to assess Employee Motivation on Productivity
in the case of tasty foods plc. The study design includes both quantitative and qualitative types.
Therefore, a survey with both quantitative and qualitative study designs will apply. The
quantitative analysis will gathering by using a semi-structured questionnaire whereas the
qualitative information will collecting by using an interview of human resource managers and
document analysis methods.

1.6.2. Population
The total population of tasty foods is 205 out of this 82 are females and the remaining 123 are
men’s. out of the total population the researcher take only the sample using the formula.

1.6.3. Sampling size and sampling technique

The total population of tasty foods plc. is 205 from this total population the researcher used 62
employees this is based on using the formula n = N
1+N (e)
The researcher used simple random technique. The reason behind is to minimize the time
required for data analysis and the company’s operations system was made the process of primary
data collection is difficult to the target population.

1.6.4. Data Types and Sources of data collection

The study used both primary and secondary data. The primary data collected from the staff of
tasty foods plc. Through dispatching the standard questionnaire to them. Secondary data of the
study gathered from different sources like the information center of the company, e-soces, and
web site.

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1.6.5. Data analysis and interpretation Methods
After the data collected the researcher analyzed and interpret data by using table and percentage.
Finally, the results of the analysis will present using tables.

1.7. Significance of the Study

Employee motivation is the practice of almost all organizations whether they are private or
governmental organization. The purpose of employing better motivational techniques is to obtain
an advantage over other competitors by the motivating employees. The finding of the study is to
provide useful information to human resource managers of the company to either continue or
revise ways of motivating their employees and to know and understand the attitude of employees
towards the organization. It will help the organization to identify the factors of employee’s
motivation that affecting productivity of the organization. To Researchers: The finding of this
study was assist in providing knowledge on the impact of motivation on employee productivity.

1.8. Organization of the Study

The introduction part of the study is discussed in chapter one. Background information,
Statement of the problem, objective of the study, research methodology, and scope of the study,
limitation, and Significance of the study are also discussed in this chapter. The next chapter,
chapter two, is reviewing related literature on the subject matter. The third chapter was discussed
the empirical findings and analysis of the study with interpretations. And the last chapter, chapter
four, discussed a present summary, conclusion based on the analysis result, and
Recommendations provided by the researcher.

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CHAPTER TWO:
REVIEW OF RELATED LITERATURE
2. Theoretical Background
2.1 The Concept of Work Motivation
The term motive usually is explained as desires, needs, emotions, or impulses that make
someone do something. Following this definition, motivation is the state of being incited to
action. When we take into consideration the work environment it becomes clear that work
motivation refers to motivation within a work setting. Typically, it refers to employees’
motivation to perform, stay, and commit in a company, cooperate, lead or support a leader, help
customers, and so forth. Obviously, this definition from the International Encyclopedia of
Organizational Studies (ed. Bailey& Clegg, 2008). People are motivated to do something if they
believe it is likely that it will bring the desired result. People who are well-motivated take action
that they expect will achieve their clearly defined goals (Armstrong, 2007).

It is evident that motivation directs our behavior towards specific goals. Especially, performance
of works in organization is highly influenced by the motivation practices of the organization. The
reason of studying motivation of personnel is the desire to secure or maintain optimum
performance from employees. Performance can be seen as a function of the individual’s
knowledge and motivation (willingness to perform). The more presence of ability and knowledge
cannot guarantee that the individual will put forth his best effort. There is another factor
operating in the situation, namely motivation which finally determines the effort which can
reasonably be expected from such employee. (Chandan, 1994)

Motivational theory suggested that different people have different needs at different times. Some
employees are ready to fulfill growth needs where as others are still struggling to satisfy their
minimum existence needs (steven L. Mc shane). The manager who focuses on employees
emphasizes workers needs he/she treats employees as valuable assets and respects their views.
Because always remember that employees are human being and not a machine. By focusing on
employee’s manager can increase job satisfaction and decrease absenteeism since the employees
become motivated by the recognition they are getting and develops belongings (planket, 1994).

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2.2. Reasons to Motivate Employees
The performance of any organization and its continuity depends on their key assets, employees,
as well as the capabilities of the managers to be able to create a motivating environment for their
people. On the other hand, it is a challenge for the managers to keep their people and employees
motivated and satisfied. Thus why every manager has to be aware of the needs and requirements
of their employee and what they are looking for. The main objective and concern of most of the
organizations are to make the benefit from people who are feeling positively toward the work
and motivate unsatisfied employees to end up with a win-win situation for both the company and
workers. Urichuck (2002) stated that motivated employees will increase the capability of the
organization to achieve its mission, goals, and objectives. It will also engage all to build a strong
organizational culture. Also, motivated employees will feel as having a strategic partnership with
the organization and their commitments and loyalty will increase from day to day (Anne, 1994).
Also, Buttner and Moore (1997), based on their research about "Happy Employees Make
Productive Employees" found that when employee attitudes improved by 5%, customer
satisfaction jumped by 1.3%, and the revenue increased by 5%. So, motivated employees usually
produce more than others, and hence the customer satisfaction increases.

2.3. Motivation Theories

Psychologists and behavioral scientists have developed some motivation theories and some of
these theories have been developed by researchers. There are several different views of
motivational theories. But, we will be discussing Abraham Maslow Theory and ERG Theory
2.3.1 Hierarchy Needs of Abraham Maslow's Theory of Needs
Abraham Maslow (1908 – 1970) along with Frederick Herzberg (1923) introduced the Neo
Human Relations School in the 1950‟s, which focused on the psychological needs of employees.
Maslow put forward a theory that there are five levels of human needs that employees need to
have fulfilled at work (Mary & Ann, 2011). Before the employee can move to a higher level of
the hierarchy, he/ she has to be satisfied and got the needs from the previous level. The five
levels of needs according to Maslow.

1. Physiological Needs: Physiological Needs are the basic needs that every individual need to
survive. They are like food, air, shelter, and water. If these basic needs are not met, then the
employee will not be able to go through other levels (Mary & Ann, 2011).

7
2. Safety Needs: Safety needs are the needs related to the feeling of the employee being secure
and safe like having medical insurance, job security, etc.

3. Social Needs: Love & Belonging: These needs are related to interactions with others. The
relationship of the individual with the people surrounding it. Like having friends and feel
accepted by others.

4. Esteem Needs: Esteem is the feeling of being important. Esteem needs are classified into
internal and external needs (Vance &Pravin 1976). Internal esteems are these related to self-
esteem like respect and achievement. External esteem needs are those such as social status and
recognition that comes with achievement.

5. Self-Actualization Needs: It is the need of reaching the full potential as an employee.

According to Vance &Pravin (1976), this need is never fully achieved. Self-Actualization Needs
are like truth, wisdom, and justice. There are different ways the organization can satisfy their
employees and motivate them. Money is the number one motivating factor that may satisfy the
employee's physiological needs as well as safety needs. Social needs can be met by providing the
employee with a workplace in a way that it is easy to communicate and collaborate with others.
Also, organizations get to gather and entertain activities that will build good relationships
between employees from different levels which will satisfy the social / Love & belonging needs
(Bradley, 2003).

2.3.2 ERG Theory

According to, Alderfer re-categorized Maslow's hierarchy needs into three simple classes of
needs, which are:

1. Existence needs (Physiological and Safety needs): These needs are basic and necessary to
live like food and shelter.
2. Relatedness (Social &Belonging needs): These include the aspiration individuals have for
maintaining significant interpersonal relationships (be it with family, peers, or superiors),
getting public fame and recognition. Maslow's social needs and external component of
esteem needs fall under this class of need (Ryan, &Deci, 2000).

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3. Growth (Self-esteem and Self-actualization): These include the need for self-development
and personal growth and advancement (Ryan &Deci, 2000). Maslow's self-actualization
needs and intrinsic component of esteem needs fall under this category of need.
Every employee's needs and satisfaction factors differ from the other and every one of them
has more than one satisfaction factor and needs, and this is what the manager should be
aware According to the ERG theory, the manager shouldn't concentrate only on one need at a
time which will not effectively motivate the employee (Ryan &Deci, 2000).

2.4. Factors that affect motivation

Before a leaders can effectively stimulate motivation with in his/her group or individual
members. He/she must be aware of the factors that affect motivation. As a leader, it is important
that you understand your own motives as well as those of your group members. There are seven
basic factors that affect our ability to motivate.
1. Group size: A group should neither be too large (impersonal) nor too small cover worked.
2. Group goals:- Even if the purpose of the groups is predetermined it is important that group
members be a parts of the organization as goal setting process and help establish the groups
direction.
3. Competencies of members: - Leaders must attempt to match individual skills or interest
with group tasks. Members should also be provided with the proper resources and
information to do this task.
4. Leadership: - Participatory and empowering leader ship motivates best. A leader should
know his/her leadership style and let his/her group members know it also. Leaders must also
be cognizant of the sages of group /team development/ i.e. forming, storming, norm,
performing and appropriate times).
5. Meeting time and length: - the meeting time and length should be conducive to the group
member’s attendance. Meeting should be productive and when necessary ice breakers should
be used to promote team building with in group. If there is nothing to cover then don’t meet.
6. Publicity: - the group’s activities and its respective member’s ship are visible to everyone on
campus. Improper publicity or lack thereof, will diminish the significance or importance of
the group contributions to campus.
7. Social Interaction/from: - groups should be as informal as possible with plenty of
opportunities for related interaction among group members. It is important for individual
9
 members to develop a sense of belonging and acceptance with the other group members and
group goals.
2.5. Types of Motivation
Motivation is driving force behind our actions fueled by our desire for something. There are two
main categories of motivation, intrinsic and extrinsic motivation.
Intrinsic Motivation: - It comes from the personal enjoyment and education achievement that
we drive from doing that particular thing.
Extrinsic Motivation: - is a motivation that comes from things or factors that are outside the
individual. There are different types of motivation that are listed in the following.
1 Achievement motivation: - This is an intrinsic thing. It is the drive to pursue and attain
goals. An individual with achievement wishes to achieve objectives and advance upon the ladder
of success.
2 Affiliation motivation: - is an external driver. It is a drive that related to people on
asocial basis persons with affiliation motivation performs work better when they are
complimented for their favorable attitudes and co-operation.
3 Competence motivation: - It is a drive to be good at something, allowing the individual
to perform high quality work.
4 Power Motivation: - It is a drive to influence people and changes situations power
motivated people wish to create an impact on their organization are willing to take risks to do so.
5 Attitude Motivation: - is how people think and feel. It is their self-confidence, their
belief on themselves, their attitude to life. It is how they feel about the feature and how they react
to the past.
6 Incentive motivation: - It is where a person or a team reaps a reward form an activity. It
is “you do this and you get that” attitude.
7 Fear motivation: - fear motivation coercions a person to act against will. It is
instantaneous and gets the job done quickly.
2.6. Motivation Approaches and their Effect on Employee's Satisfaction and
Performance
Despite the variety of theories that have been studied by researchers, they have come to
increasingly emphasize the importance of different motivation approaches toward employee's
performance. Motivation approaches have been defined as tools and techniques which can be

10
used to motivate employees. Some of the approaches are: Praise- one of the effective methods is
being used to motivate individuals. Saying thanks and admire individuals are the most common
way of motivating employees. It is easy to use, and it is said usually from the heart and nature.
Looking on the employee's eyes in front of others and say thanks, really means a lot (Salasiah,
Zainab, Rosmawati, Ermy, 2010).

Employees appreciate being recognized for doing a great job and the feeling of being valued as
an individual. The praise tends to carry even greater meaning and motivational effect (David, 14
Louis, Micheal, 2004). Salary/wages/ increments- all these are temporary approaches used to
motivate employees. Most of the researches and studies have proved that money and payments
are important to employees relative to other motivators as earning a lot of money is an advantage
for pushing toward motivation. It clarifies that when employees are satisfied financially, they
motivate at work and work hard. Financial aspects like payments, allowances, salaries and
bounces increase and affect employee's productivity positively as a result of a study which has
been done (Locke, Feren, McCaleb, Shaw, and Denny 1980).

2.7. Management communication style

Communication is an important aspect of motivation. It affects directly employee motivation and
satisfaction and choosing the best communication style to apply to employees when going for
motivation is an important factor in the motivation approach. For example, when management
communicates with their employees face to face is a motivated approach to people than sending
those emails (Helen, & Jacques, 2002). Employees who know what is going on in the company
as soon as they can and directly from their boss and manager are very important. It builds a good
relationship between them which will help a lot with motivation. By this, they can take important
decisions toward their job and work (Helen, & Jacques, 2002). The other way of good
communication style and motivation aspect is communicating daily with every employee, hold
one to one meetings, and make sure that they aware of the changes to the work are an effective
way of motivation (James & Lyman, 1982). As when managers/leaders communicate openly,
honestly, and be transparent with their employees has an affective on the motivation of managers
on employees (Jurgensen, 1978). Furthermore, implementing the "open door policy" for
employees to share their ideas and discuss issues will make the managers and leaders understand
the main issues of their employees will strengthen the relationship between the management and

11
their employees which will help a lot with the motivation process (Zakeri, Olomolaiye, Holt, &
Harris, 1996).

2.8. Reward System for Employees

An employee reward system comprises of an organization's incorporated policies, processes, and
practices for rewarding its employees in harmony with their contribution, skills, and competence,
and their market worth. It emerges within the framework of the organization's reward
philosophy, strategies, and policies. The reward systems of employees have arrangements in the
form of processes, practices, structures, and procedures which will provide and maintain
appropriate types and levels of pay, benefits, and other forms of reward. The reward system
consists of financial rewards (fixed and variable pay) and employee benefits, which together
comprise total compensation. The system also incorporates non-financial rewards (recognition,
praise, achievement, responsibility, and personal growth) (Armstrong 2002, 4)

2.9. Purpose of Reward

The system is very important in any organization as the process that is in command of human
behavior within an organization. It helps to verify not only performance concerning current goals
but also influences the possibility of people joining and remaining in an organization. It also
shapes the degree to which effort is directed in the development of the organization's future
capabilities. If correctly designed or ad-ministered, reward systems can lead to attractive
behavior for a firm. On the other hand, if incorrectly designed or administered, reward systems
can lead to the steady deterioration of an organization and why not its immediate demise.
(Flamholtz 1996, 99) According to Lawler Company, managers can design reward systems to
diminish absenteeism by linking bonuses to levels of attendance. This strategy is particularly
positive in compensation for low job content and poor working conditions that cannot be
improved. Furthermore, some of the jobs in facility management companies may be simple and
routine and therefore may lack motivational properties. The facility manager may attempt to
decrease such absenteeism by linking certain rewards to attendance. For example, the manager
may set a policy of giving a monetary bonus or extra days of paid leave for an ideal or near-
perfect attendance. The company's effectiveness is augmented through employee performance
that in turn can be facilitated by an effective reward system.

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2.9.1. Financial Reward
Many types of financial inducements exist. Some directly provide the employee with cash.
Bonuses based on performance against budget, quality, or other standards may be used as
immediate financial incentives. Management rewards by bonuses have become popular in some
companies as a means of providing employees with an immediate buster for completion of a
project or activity. While the number of companies delivering cash awards has increased, only 7
percent actually use such rewards at present (Ulrich & Lake 1990, 157). Most companies make
use of financial compensation plan to motivate their employees. Sales contests are short term
incentive programs that can be an effective motivational tool if they are cautiously and
accurately designed. A sales contest should have a precise purpose, such as to increase in sales in
short term sales of slow-moving products or getting new customers.

High-level executives of most companies have separate compensation programs and plans.
These programs are anticipated to reward these executives for their performance and the
performance of the company. The senior executives collect their compensation in two forms.
One is a base salary as the case may be with the staff member or professional member of the
company. The base salary is a definite amount that the employees will be paid. Above the base
salary, most executives also receive one or more forms of incentive pay. The conventional
manner of incentive pay for executives is in the form of bonuses. The bonuses in turn are
generally determined by the performance of the company. Thus, at the end of the year, some
fraction of a corporation's profits may be diverted into a bonus pool. Senior executives then
receive a bonus expressed as a percentage of this bonus pool. The chief executive officer and the
president are apparently likely to obtain a larger percentage bonus than a vice president.

2.9.2. Non-Financial Reward

Organizations with positive ambitions could make available a framework within which high
levels of motivation could be accomplished through non- financial reward systems by the
provision of opportunities for learning and development. But personal management skills still
have a key role to play in deploying their own motivating skills to get individuals within their
organization to give their best performance by making good use of the motivational systems and
processes provided by the company. (Armstrong 2008, 221), Recognition is an appreciation of
performance by the organization of an act done by the team or team member. In common

13
language, it is sometimes expressed as "I caught you doing something right." It is an approach of
expressing gratitude for the special or extra effort done by an employee within an organization.

Recognition has two essential goals: to encourage the employees or team to repeat or continue
the behavior and to encourage other employees to do the same. Most team recognition plans fall
into celebrating organizational objectives habitually as an event, designed to acknowledge the
successful completion of important company goals. This is to create a greater awareness or to
remind people of the importance of the goals achieved within the company. For instance, a
division of a large telecommunications company held an all-hands meeting at an off-site facility
to celebrate the accomplishment of their goals. (Parker 2003, 125) Feedback in particular
constructive criticisms is necessary for the expansion and development of the employee.

Negative reinforcement such as indicating mistakes and threatening employees with job loss,
causes employees to adjust their behavior just enough to avoid punishment. It may get to produce
a positive result at the job but it won't generate enthusiasm. Negative reinforcement produces
responses like "That's not my job" or "I don't know." On the other hand, periodic positive
performance re-views generate extra or discretionary effort on the part of the employees.

2.10. Importance of studying motivation

A. Motivation is one of the important elements in the directing process.
B. Worker will tend to be as efficient a responsible by moving up on their skill & knowledge.
C. For performing any two things are necessary, they are:
 Ability to work
 Willingness work
Without willingness to work, the ability to work is no use. Willingness to work can be treated
any by motivation.
In other words, for organization to be effective, it most come to grips is the motivational
problems of simulation by the direction by the decision to participate and the decision to product
at work (Andent, 2003:5) and also, motivations are a concept presents a multitude of factors in
the organization set up. A comprehensive understanding of the way in which organization
function requires that at least some attention to be directed toward the question of why people
behave as they do on the job.

14
An understanding of the concept of the motivation is thus essential in order to comprehend more
fully the effects of variations in factors such as leadership, job redesign, and salary systems they
relate to performance, satisfaction and forth (Ibid).

Finally, organizations are used to see their financial and physical resources form along term
perspective, only recent sly have they begun to seriously apply this same perspective to their
human resources many organizations are how beginning to pay increasing attention to
developing their employees as future resources up on which they can draw as they grow more
concern is being directed in addition toward simulating employees to enlarge their job skills
through training, job designing and job rotate: on and so an at both the blue color and the white
color levels in an effort to ensure a continual reservoir of well-trained & highly motivated people
(Richared M. Steers 1972:1-2) for these reasons, the topic of motivation has been going
increased attention by both managers and organizational behaviorists.
Once we have discussed the importance of studding motivation let us try to consider different
motivational theories.
2.11 Various Approaches and Opines for Job Redesign
While job enrichment, which primarily means making the jobs more meaningful interesting and
challenging, forms the foundations for the job more redesigns, there is much other aspect of the
existing jobs that can be employees. (Sit S, Chandan 1984: 107).
2.11.1 Job rotation
When and organization has a series of routing job that cannot be combined or enriched the
employees may be shifted from one job to another order to provide some Varity so as to
minimize the monotony and boredom (Ibid).
2.11.2 Flexi time
Flexi Time Iran approach which allows employees more freedom in determining their own
schedules within the general organizational guidelines. It gives employees a daily choice in the
timing between work and non-worker activities, they may come to work late in the morning and
leave early in the evening. They may come to work late in the morning and leave late.
However, they must be present a t work during certain daily core hours so that necessary
interpersonal and interdepartmental activities can take place. (Ibid).

15
2.11.3 Job sharing
In job sharing two part time employees share one full time job. One person may perform the job
from 8:00 Am till soon and another from 1:00 pm till pm. Job sharing is beneficial to the
organization because it is then being able to attract more talented people (Sit S, Chandan,
1984:108).
2.11.4 Telecommuting
Tele-Commuting is the result of high technology at work, where people can work from their
homes using a computer linking them to place of work. Telecommuting provides flexibility of
working and comfort of home even though it isolates the employees form the team spirit and the
employee supervision is more difficult. Telecommuting is popular among computer
programmers, financial analysis and among secretarial support services (Sit S, Chanadan,
1984:109).
2.12. Money and motivation
Behavioral theories of motivation have tended to de-emphasis the role of money as motivators.
The fact remains that money continues to be an important Motivators at least in under-developed
countries where physiological needs of workers are only partially satisfied even in developed
countries, financial incentive plans do result in greater productivities In order to get a motivator
or to high performances, financial incentive plan should possess the following characteristics; (I)
reward should be related directly to productivity (ii) reward should be given immediately rather
than later; (iii) reward should be given consistently (R.DA Sarwal 1982:200).
2.13. Good motivational Techniques.
There are good motivational techniques provided to satisfy employee that encourage them to
contribute their effort for the success of the organization.

1. Assessing and evaluating your employee’s strength, interest areas, inclination and
complementary skills and delegating the responsibilities accordingly form an excellent
employee motivational step: - A little change in the nature of dates according to the interest
will increase the productivity and enthusiasm to quite a great extent.
2. Well time and properly measured appraisals and an appreciations also motivate and
encourage the employees at work place tremens dourly: - Appreciations and Appraisals,
show your faith in the employees work.

16
3. Money’s the impetus. It instigates employee motivation: - correct monetary evaluation and
rewards for a person’s outstanding performance not only motivates him and makes him
accomplish even better results but also refrain him from looking elsewhere for better
opportunities.
4. Keep the dynamism of the work place ignited:-
5. This kindles immense motivation amongst the employees to work zealously: - In order to
keep your man power highly motivated and brimming with energy and enthusiasm, keep the
assignments and projects interesting and offer enough scope for professional development.
6. Keep the staff abreast with latest technological knowhow and stimulate motivation and
enthusiasm at work: provide ample training opportunities to keep your man power up date
with latest technology and work related developments.

17
CHAPTER THREE
3. PRESENTATI ON, ANALYSIS AND INTERPRETATION OF FINDINGS
3.1. Introduction
Under this chapter the analysis and interpretation were carried out based on the data collected
through questionnaire from Customer Service Division. Based on the methodologies, research
design and tools the data was collected from 55 respondents. From the total 62 questionnaire
distributed 7 were not correctly filled and rejected. Therefore 55 were effectively used for
analysis that shows response rate of 88.7 percent. Accordingly, data analysis, discussion and
interpretation of the results are presented in the following subheadings:

3.2. Demographic Profiles of the Respondents

This part of the chapter showed the demographic features of the respondents included in the
study. These include gender, age, and educational level, number of years, current positions, and
current salary level of the respondents.

Table 1. Gender of the Respondents

Gender Frequency Percentage
Male 32 58.8%
Female 23 41.2
Total 55 100%
As stated in Table 3.1, for the main study, 55 employees were randomly selected as research
participant. Of these, 32(58.8%) were males and 23 (41.2%) were females. Randomly, this
indicates that there is somehow female dominancy within the respondents for this study
Table 2. Ages of the Respondents
Age Frequency Percentage
20-29 21 38.18%
30-39 15 27.27%
40-49 10 18.18%
50-59 9 16.36%

Total 55 100%

18
Concerning the age of respondents; which showed 21(38.18%) of them are between 20-29 age
category; 15(27.27%) of the employees are found between 30-39 years, 10(18.18%) of the
employees are found between 40-49 and the remaining 9 (16.36%) are found in the age category
of above 50 years. Here we can understand that majority of the respondents are found in the age
category of 25-35 years old. This means almost all are in productive age.
Table 3. Educational Level of the Respondents
Educational Frequency Percentage
level
Diploma 15 27.27%
Degree 28 50.9%
Masters 11 20%
PHD 1 1.8%
Total 55 100%
Regarding level of education of the respondents, around 28(50.9%) of respondents are degree
graduates; while 11(20 %) of them are Masters Holders; 15(27.27%) of the respondents are
Diploma graduates and 1(1.8%) of the respondent are PHD. In short, majority of the respondents
are first degree holders. Hence employee’s development is important to deliver the product
effectively. When we have more educated individuals in the organization, organization would be
more flourished and the employee performance would increase.
Table 4. Work experience of the Respondents
Work experience Frequency Percentage
1-5 22 40%
5-10 26 47.2%
>10 7 12.7%
Total 55 100%
The table presents total work experience in tasty foods. Majority 26(47.2%) of employees has 5-
10 years’ experience whereas 22(40%) of the respondents have below 5years experience and
7(12.7%) of the respondent have above 10 years’ experience in the company. The data confirm
that the employee have relevant work experience.
Table 5. Current Salary Level of the Respondents

19
 Current salary Frequency Percentage
Below 3000 birr 12 21.8%
3000-5000 birr 17 30.9%
5000-7000 birr 16 29.09%
8000 birr and above 10 18.18%
Total 55 100%
Regarding level of salary of the respondent, around 12(21.8%) of respondent are paid below
3000, 17(30.9%) of respondent salary is 3000-5000birr, 16(29.09%) of respondents salary is
5000-7000birr and the remaining 10 (18.18%) respondents salary is 8000 and above birr.
Table 6 satisfaction with pay and percentage analysis
Payment Frequency Percentage
Very 1 1.8%
adequate
12 21.8%
adequate
Fair 15 27.2%

Inadequate 25 45.45%

Very inadequate 2 3.6%

Total 55 100
According to the data in the table above, employee motivation is strongly linked to pay
satisfaction, since the majority of employees 25(45.45%) believe their monthly income is
insufficient. 15 %( 27.2%), 12(21.8%), 1(1.8%) of the respondent are satisfied on their payment.
They said that the income earned monthly is very adequate, adequate and fair respectively.
Therefore some employees have stated that the pay they receive is reasonable and acceptable.
Table 7 reason of employee performance evaluation
Employee Performance Frequency Percentage
evaluation
For promotion - -
For punishment 7 12.7%
For transfer 20 36.36%
To establish good employee 28 50.9%
motivation
Total 55 100%

20
According to the table, more than half of the respondent 28(50.9%) answered employee
performance evaluation serve to build good employee motivation, 20 (36.36%) respondent said it
helps for transfer employees and the remaining 7(12.7%) said for punishment. So performance
evaluation leaves a positive impact on motivation through identifying hard working and high
performing employees and reward them on their effort. It will also allow employees to
communicate their issues and difficulties in their daily tasks, which would help to improve their
motivation.
Motivation and productivity
Table 8 benefit package on motivation and productivity
Is there any benefit you get from the Frequency Percentage
organization motivate you for better
performance
Yes 15 27.27%
No 36 65.45%
To some extent 4 7.2%
I don’t know - -
Total 55 100%
Benefit packages motivate employees for higher performance item, 15(27.27%) of respondents
agreed that the benefits they set from the organization motivate them for better performance.
36(65.45%) stated that the benefits they get from the company do not motivate them for better
performance. the rest 4(7.2%) said to some extent. One can certainly conclude from this that
productivity and greatly depends on employee motivation.
Table 9 motivation on productivity
Do you think Motivation Frequency Percentage
from your organization
increase your productivity?

Yes 15 27.3%

No 40 72.7%

Total 55 100%

21
In response to the question presented 15(27.3%)of respondents asserted that motivation they get
from the organization increase asserted that motivation they get from the organization increase
their productivity of these respondents. 40(72.7%) disagreed that the motivation from their
organization increase their productivity. From the above figure that motivation from the
organization is unable to increase employee productivity. It is evident that motivated workers are
more productive than none motivated when workers are motivated, they can properly administer
company’s resources. Use best of their knowledge and their skill little scraps, and less
absenteeism and turn over, in this part of the study, investigate whether motivation affects
productivity in tasty foods plc.
Work environments and Facilities
An organization’s work environment includes its location, site, building facilities, cafeterias.
Those work environments affect workers either positively or negatively.
Table 10 work environment
Do you have good Relationship with Frequency Percentage
your workmates?

Yes 55 100%

No -

I don’t know

Total 55 100%

Good employee relation is one of work environments questions was forwarded to employees to
investigate their relationship with work mates. All of the respondents indicated that they have
good relationship with their peers. If workers have good relationship with each other, they can
cooperate on works and may higher performance. The respondents altogether said that good
relationships motives them to accomplish their job well.

Table11 Employee attitude towards salary

22
 Payment in tasty foods accordance Frequency Percentage
with work experience and job
responsibility of the employee
Strongly agree 2 3.6%
Agree 16 29.09%
Not sure 25 45.45%
Disagree 12 21.8%
Strongly disagree - -
Total 55 100%
According to the respondent were asked whether payment in tasty foods accordance with work
experience and job responsibility 16(29.09%) of respondents agree and 2(3.6%) of respondents
strongly agree, 35(45.45%) respondent answered not sure and the rest 12(21.8%) are said their
payment in the company are not according to their work experience and job responsibility.
Existing Motivational packages
Analysis has been done for the questionnaire collected from the sample of 62 among employees
in the organization and based on that several findings have been gathered which will be
discussed in this section. Below the existing motivational package (financial, non-financial) is
presented.
Table 12 motivational incentives
Is your organization Frequency Percentage
provides employees with
motivational incentives
Strongly agree - -
Agree 8 14.5%
Not sure - -
Disagree 23 41.8%
Strongly disagree 24 43.6%

Total 55 100%
According to the respondents were asked about motivational incentives only 8(14.5%)
respondent are agree the remaining 23(41.8%) and 24(43.6%) respondents replied disagree and
strongly disagree respectively.
Table 13 Financial and non-financial reward

23
 Financial incentives Frequency Percentage %
motivates more than
nonfinancial Incentive
Strongly agree - -
Agree - -
Not sure 12 21.8%
Disagree 43 78.18%
Strongly disagree - -
Total 55 100%
Based on the above table, 43(78.18%) of respondent are disagree and the rest of the respondent
12(21.8%) are not sure about that.it is the evident to say financial incentives motives employees
better than non-financial in this organization.
Table 14 motivational packages on job performance
Job performance is highly Frequency Percentage
influenced by motivational
package
Strongly agree 23 41.8%
Agree 29 52.7%
Not sure 3 3%
Disagree - -
Strongly disagree - -
Total 55 100%

For the question raised to check whether job performance is highly influenced by motivational
package 23(41.8%) of respondent are strongly agree. 29(52.7%) of respondents are agree and the
remaining 3(3%) of respondents are not sure. Motivation is considered as a predictor of job
performance. In other words, the determinants of employee job performance were motivation,
aptitudes and skill. Thus, motivated employees with high levels of job involvement are
considered as important elements to an organization.

Table 15 receiving feedback on motivation

24
 Employees, who receive frequent Frequency Percentage
feedback concerning their
performance, are usually more
motivated than those who do not
Strongly agree 20 36.36%
Agree 35 63.63%
Not sure 0 0
Disagree 0 0
Strongly disagree 0 0
Total 55 100%

From the above table we can understand that, from the total 55 respondents 35(63.63%) agree
about employees who receive frequent feedback concerning their performance are usually more
motivated than those who do not. And 20(36.35%) of respondents also strongly agree about the
question. This shows motivating employees or giving feedback concerning their performance is
key to an organizations success. It’s the levels of commitment, drive and energy that a
company’s workers bring to the role every day. Without it, companies experience reduced
productivity.
Table 16 employees on decision making
The management involve Frequency Percentage
employee in the decision
making process
Strongly agree 0 0
Agree 16 29.09%
Not sure 3 5.4%
Disagree 36 65.45%
Strongly disagree - -
Total 55 100%
In the result above, employees who have answered agree were 16(29.09%) and dis agree
36(65.45%) with the idea of involvement of employee on decision making process. This shows
when employees are involved in making decisions they gain a professional and personal stake in
the organization and its overall success. This commitment leads to increased productivity as
employees are actively participating in various aspects of the company and wish to see their
efforts succeed overall.

25
Data analysis through Interviews
 For interview question ‘’is there good relationship between management and employees in
this organization?’’ Relationship management both motivates and rewards employees
making them feel appreciated for the work they do .According to the above question, the
managers said that the employee has good relationship with the management of the
organization by freely participating in decision making to solve organizational problem.
Some of the issues that need a relationship between employees and management of the
organization are:
 To improve quality, quantity and the price of the product
 Decision making on employees conflict
 Decision making on employees lateness from organization
 For interview question ‘’How does your organization motivate employees? ’According to the
manager, organizations motivate employees by:
Giving bonus and Fringes benefit
Allowing permission who have special case to absent
Giving training and share experience to the other employees of the organization.
 Regarding the question is there any change in the way employees are motivated? According
to respondents, they said “Yes” the employees were changed themselves from motivational
practices like: self-confidence, self-competence, create harmony relation organization.
 Do you think that the leadership style of the organization motivate employees According to
the above question, manager’s said that the organization motivate employees through
democratic type of leadership. The manger doing work through sociability to workers, work
division to workers the well-designed decision making process, morale courage and integrity
flexibility and emotional stability.
 Is there any relationship between employee’s motivation and their productivity:-According to
the manager’s they said “Yes” because if employees are highly motivated they perform their
tasks in well and proper manner, it avoids their carelessness to the job, It increases
relationship among employees which helps to create co-operative effort these factors directly
or indirectly increase the productivity of employees.

CHAPTER FOUR
4 SUMMARY, CONCLUSION AND RECOMMENDATIONS
26
4.1 introduction
The purpose of this study was to assess’ employee motivation and its impact on productivity.
The study was conducted taking samples from employees. Data was collected from employees
currently working in tasty foods plc. The study used descriptive research design. A simple
random sampling are used. Finally, the collected data were analyzed both quantitatively and
qualitatively. The following major findings were identified. The finding was presented using
table

4.2. Summary of Major Finding

This study is intended in finding out employee motivation and its impact on productivity in the
organization that is specifically chosen for this research which is tasty foods plc. The study was
guided by some objectives. The main aim of this study was to identify some theories and
approaches through which an organization could facilitate and maximize employee motivation
and improve contribution of workers to the company objective.
 The majority of the employees are male (41.2%) and around 38.18% of employees are
between the age of 20-29. almost all employees are on productive age.
 The criterion set by the company for performance appraisal, which is designed to evaluate
employees performance has its own problem on employee’s motivation according to the
responses of employees. The majority of the respondents replied that they are not fairly
evaluated, i.e. the existing performance appraisal lacks transparency. To the contrary,
employees are optimistic towards the purpose of employee’s evaluation and they also
indicated that performance appraisal results are conveyed to them.
 According to the respondents the motivational practice is not sufficient to employees.
Because it is depends on the age family and friends. As per the response of many numbers of
employees, the workers are not equally motivational practices even though they have the
some work experience and responsibility to the organizations.
 According to the manager the employees motivated by giving bonus and giving training and
share experience to the other employees of the organization. Though, there exists written
performances appraisal criterion, the employees claimed that the management is not
appropriately manipulate or utilize it.
 Based on the results, the first category has focused on assessing the findings of financial
motivators. In this category all the financial related benefits which include; (Better Salary,
bonuses, different allowances, compensations have been conversed. As a result, 37 majority
of the respondents seemed not happy on the financial aspect, which can be explained over all
financial percentage.

4.3 Conclusion

27
The study attempted to identify the assessment of employee motivation on productivity at tasty
foods plc. .This study was conducted in tasty foods plc. It is one of the known manufacturer of
powdered beverage and snacks in east Africa. This Company aimed to maximize their profit by
producing qualified product.
In general the researcher put the following as a finding of the study.
 Salary is among the best satisfying elements; no other element can satisfy the like that of
salary as it is the main component of employee income. According to the response from the
respondents, the substantial number of employees indicated that the current salary scale does
not motivate employees them.
 As per the response of many numbers of employees, the workers are not equally
compensated even though they have the same experience and qualification. Such difference
might be related to bias by the management as regard to age, friends, family members who
have contributed a lot for employee’s motivation.
 As a respondent the leadership style of company is very well, sociable to workers, work
division to workers and active participation in activity of productivity and satisfaction of
subordinates.
 Also the role motivation according to the respondents it helps the employees to increase their
skills and refreshers learnt skills. At the same time it is creates an opportunity for employees
to know each other as we as to share experiences. On the other hand, promotion develops on
employees the sense of importance and accomplishing takes that require greater knowledge
and responsibility.
 Tasty foods has good employee relations and self-motivated workers who are not absent
from work unless they are forced by personal problems. This may be the reason for the
companies’ competitiveness.
 Regarding the work environment, the majorities are not happy with the current working
environment. From the responses of employees it is evident that the benefits they receive
from the company affect their performance to increase productivity.
 In conclusion, since the non-financial motivation factors are below the percentage, this
indicates that there is poor relationship between the management and employees and there is
a gap in making the work environment more socially attractive for employees as a result they
employees might be demotivated in their work and this will have negative impact on their
performance. This implies that employees love and belongingness and need for affiliation is
not up to the required level to impact the performance of employees and increases the
effectiveness of the tasty foods However, the presence of financial motivation program has
better impact on employees performance as result employees due to their better financial
income they are more motivated to retain in their position in tasty foods. This implies that
financial motivation has an impact to retain more employees but it is not a sufficient
motivation factor to increase the performance of employees.

28
4.4. Recommendations
Based on the finding of this study and the reviewed literature financial and non-financial
Motivation are significant relationship with employee performance. Based on the finding of the
study the following possible recommendation were forwarded
 According to Maslow theory financial motivation is important to fulfill basic and
psychological needs like shelter, food and water. Tasty food also, requires providing
financial reward to motivate employees by taking in to consideration their needs as per the
standard.
 Managers must aware of individual and group differences in motivation. Employees need is
various a motivation packages which motivates for one division or department may de
motivate the other division and department. Motivation is deferent from department to
department based on their work type, it will be vital to prepare an inclusive motivation
package.
 Before provide motivation package, managers need to conduct a survey how employee feel
about benefit, recognition and other aspect that contribute to increase employee performance.
 The manager needs to encourage employees to develop their skills and potential to increase
performance and realize company's mission
 Tasty foods must create conducive work environment which is suitable for customer
communication, encouraging one another, avoiding negative attitudes and giving feedback.
 Human resources management in an organization take an important role to decrease
demotivation and increase employee performance .Constructive relationship between teams
and manager to employees can minimize problem with non-financial motivation, employees
are the one who build good image for the company. So applying different motivation
package that suits for employees will definitely lead it toward high motivated people and
employees with high rate of performance.
 Moreover, those recommendations are believed to be seen as good practices to achieve the
high motivated and performance employees. Not only motivated people will enhance the
business productivity, but also employees will be more innovative and creative which might
find other beneficial ways of doing the work with considering cost saving and high quality.
 Generally, implementing motivating employees in an organization is has positive output
process, it has to be done with high concentration and care from the decision makers.

REFERENCES

29
1. Anne, B., (1994). “An Empirical Analysis of the Corporate Control, Tax and Incentive
Motivations for Employee Stock Ownership Plans New York: McGraw Hill
2. Anyim, C. Chidi, O. &Badejo, A. (2012).Motivation and Employees‟ Performance in the
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3. Armstrong, M. (2009).Human Resource Management Practice. London: Kogan. Pages
Unlimited.
4. Armstrong, Michael 2008. How to Be an Even Better Manager: A Complete A-Z of Proven
Techniques (7th edition).USA: Kogan Page Limited.
5. Bennett, B. (2009). Challenging Maslow‟ s Hierarchy of Needs, Retrieved
6. Chintalloo,S&Mahadeo, J. (2013). Effect of Motivation on Employees‟ Work Performance
at Ireland Blyth Limited: Proceedings of 8th Annual London Business Research Conference
Imperial College, London, UK, 8 ISBN: 978-1-922069-28-3.
7. David, S., Louis, A. M., Micheal, I. M., (2004). Why your employees are losing motivation
8. E. Holly, Buttner and Dorothy P. Moore,(1997). Women‟s Organizational Exodus to
Entrepreneurship: Self-Reported Motivations and Correlates with Success. McGraw Hill,
New York
9. Flamholtz, E. (1996). Effective management control: theory and practice.
10. Frey, B., and Osterloch, M. (2002).Successful Management by Motivation – Balancing
Intrinsic and Extrinsic Incentives, Springer
11. Kovach, K. (1980). Why motivational theories don't work. Advanced Management Journal,
Spring 80, Vol. 45 Issue 2, 54-60
12. Lufthansa(1992).Organizational Behavior,(2ndEd). Irwin. Boston: McGraw Hill.
13. Mansoor, H. (2008). Motivation: A Challenge for human resource management. Mary, K. W.
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Motivation: a conceptual analysis and integrative model

APPENDEX 1
UNITY UNIVERSITY

30
 COLLAGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF MANAGEMENT
Dear Respondents:
The purpose of this questioner is to conduct a research on motivational practices of tasty foods
plc. And it’s impact on productivity. Your responses are very much important for the success of
the study and you are expected to be confidential. You are kindly requested to fill the
questionnaires.
PART ONE
I. Demographic Information
Please tick (√) the boxes which are more applicable for your biographical
Information or write on the space when it is necessary.
1. Gender Male Female
2. Age Below 25 25-35 36-45 Above 46

3. Your Education Level

Certificate First degree

Diploma Masters
Other specify_________________
4. How long have you worked in tasty foods plc.?
Below 3 years 3-5 5-10 Above 10 years
5. What is your current position?
(A) Supervisor (C) employee
(B) Coach (D) Other Specify ________________________
6. What is your current salary level?
(A) Below 3000birr C) 5000-7000 Birr
(B) 3000-5000 Birr (D) 8000 and above

Part two

31
Question related to the title
7. Is there a motivational practice in your organization?
Yes No

8. Do you think that motivation has impact on service?

Yes No

9. What do you think the reason of employee performance evaluation?

a. For promotion c. for punishment
b. For transfer d. to establish good employee motivation
10. Are you willing to take additional responsibility out of salary increment?
a. Yes
b. No
c. Not sure
11. When you compared with employees of equal education level and service years, your
salary is
a. Higher
b. Equal
c. Lower
12. Is there any benefit you get from the organization motivate you for better
performance?
a. Yes
b. No
c. To some extent
d. I don’t know
13. Do you think that motivation from your organization increase your productivity?

A. Yes

B. No

C. Some what

D. I don’t know

32
 14. Do you have good relationship with your workmate?

A. yes
B. no
C. I don’t know
15. If your answer to question 13 is yes, does relationship motivate you to perform your
job well?

A. yes
B. no
16. Can you make any suggestion that is not addressed properly regarding employee
motivation?
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
Please indicate the extent to which you agree or disagree with each statement by tick (√)a box to
a correspondent number.

No Items Strongly Agree Disagree Strongly

Agree Undecided Disagree
1. Payment In tasty foods is competitive
compared with other organizations
2. Payment in tasty foods accordance With work
Experience and job responsibility of the
employee.
3. Tasty foods provides employees with
motivational incentives
4. Tasty foods provides financial rewarded and
non- financial rewarded
5. I am satisfied with the incentives provided by
tasty foods plc

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6. Financial incentives motivates more than
nonfinancial Incentive
7. The retirement benefits and the medical
coverage provided by tasty foods is sufficient

8. Reasonable bonuses are given to employees

based on the company profit
9. Hard working employees are recognized.
10. Job performance is highly influenced by
motivational package

11. Employees, who receive frequent feedback

concerning their performance, are usually
more motivated than those who do not

12. Organizational motivation highly contributes

for job
13. The management involve employee in the
decision making process

14. There is a reasonable periodical increase of

salary in the organization

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 APPENDEX 2
UNITY UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF MANAGEMENT
INTERVIEW QUESTION
The interview question is for the manager of tasty foods plc.

1. Do you practice motivation for the employees?

2. How does your organization motivate employee?
3. Is there good relationship between management and employee in this organization?
4. Is there any change in the way employee are motivated?
5. Is there any relationship between employee’s motivation and their productivity?

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