Professional Documents
Culture Documents
WOLKITE UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF MANAGEMENT
WOLKITE, ETHIOPIA
APRIL, 2023
APPROVAL SHEET
WOLKITE UNIVERSITY
First and foremost, I would like to thank GOD For granting me the strength, courage, patience
and inspirations to completing this work!
I would like to address my special thanks to my research advisor Mr. Fuad Hussen for his endless
support and guidance to which I have greatly benefited throughout the time from his priceless
comments and suggestions and I like to say thank you Mr. Tafesse Akinda and it’s good to say
thank you companies (zebidar) employees who gave me appropriate information’s to the success
of the paper.
secondly, I want to thank my family who have been with me until the end of the research with
morally, financially, and with everything I need.
List of tables
i
Table 1: demographic profile of respondents.............................................................................................34
Table 2: salary attitude of respondents......................................................................................................36
Table 3: effectiveness of performance appraisal of the company..............................................................37
Table 4: roles of training to employee’s motivation..................................................................................38
Table 5: employee motivation and organizations productivity..................................................................39
Table 6: working conditions......................................................................................................................41
List of figures
Figure 1: Maslow hierarchy of need............................................................................................................9
Figure 2: herzberg two factor theory.........................................................................................................11
Figure 3: mc clelland theory of need.........................................................................................................11
Figure 4: mc gregor theory X and Y..........................................................................................................12
Figure 5: equity theory..............................................................................................................................13
Figure 6: goal theory.................................................................................................................................14
Figure 7: vrooms expectancy theory..........................................................................................................15
Table of Contents
ACKNOWLEDGEMENT..............................................................................................................................i
ii
List of tables.............................................................................................................................................ii
List of figures...........................................................................................................................................ii
ABSTRACT................................................................................................................................................v
CHAPTER ONE........................................................................................................................................1
INTRODUCTION.....................................................................................................................................1
1.1 Back Ground of the Study.................................................................................................................1
1.2 BACK GROUND OF THE ORGANIZATION............................................................................................2
1.3 Statement of the Problem.................................................................................................................3
1.4 Research Question.............................................................................................................................4
1.5 Objective of the Study.......................................................................................................................4
1.5.1 General Objective.....................................................................................................................4
1.5.2 Specific Objective......................................................................................................................4
1.6 Significance of the Study....................................................................................................................5
1.7 Scope of the Study.............................................................................................................................5
1.8 RESEARCH LIMITATION......................................................................................................................5
CHAPTER TWO.......................................................................................................................................6
2. REVIEW OF RELATED LITERATURE...........................................................................................6
2.1 INTRODUCTION.....................................................................................................................................6
2.2 Theoretical Review............................................................................................................................6
2.3 Theories of Motivation......................................................................................................................8
2.4 Forms of Motivation (Intrinsic or Extrinsic).....................................................................................15
2.4.1 Intrinsic motivation................................................................................................................15
2.4.2 Extrinsic motivation...............................................................................................................16
2.5 THERE ARE TWO BROAD MEANS OR TOOLS OF MOTIVATION........................................................17
2.5.1 Non-Financial Means of Motivation......................................................................................17
2.5.2 financial means of motivation................................................................................................18
2.6 Productivity.....................................................................................................................................19
2.7 Why productivity must be measured...............................................................................................20
2.8 Tips for measuring productivity (implication of productivity)..........................................................20
2.9 important factors of productivity....................................................................................................23
2.10 Motivation and Productivity:.........................................................................................................26
2.11EMPERICAL REVIEW........................................................................................................................27
2.12 Conceptual Frame Work................................................................................................................30
iii
Source: Adopting from researcher.........................................................................................................30
CHAPTER THREE.................................................................................................................................31
METHODOLOGY OF THE STUDY....................................................................................................31
3.1 INTRODUCTION.............................................................................................................................31
3.2 Research Design...............................................................................................................................31
3.3 Source of Data.................................................................................................................................31
3.3 Tools and Methods of Data Collection.............................................................................................31
3.4 Target Population............................................................................................................................32
3.5 Sampling Techniques.......................................................................................................................32
3.6 Sample Size Determination..............................................................................................................32
3.7 Methods of data analysis and interpretations.................................................................................33
CHAPTER FOUR...................................................................................................................................34
DATA ANALYSIS AND INTERPRETATION....................................................................................34
4.1 INTRODUCTION.............................................................................................................................34
4.2 DEMOGRAPHIC PROFILE OF RESPONDENTS....................................................................................34
4.2. Employees Attitude towards Salary................................................................................................35
4.3. Effect of Performance Evaluation on Motivation............................................................................36
4.4. ROLE OF TRAINING TO MOTIVATION AND INCREASEMENT OF PRODUCTIVITY.............................37
4.5. Motivation and productivity...........................................................................................................39
4.6. Work environments and Facilities..................................................................................................40
4.7 INTERVIEW and Open-Ended Question Analysis..............................................................................41
4.7.1 Open-ended question..............................................................................................................41
4.7.2 Interview question analysis from respondents......................................................................42
CHAPTER FIVE.....................................................................................................................................43
SUMMARY, CONCLUSSION AND RECOMMENDATION............................................................43
5.1 SUMMARY.......................................................................................................................................43
5.2 CONCLUSSION.................................................................................................................................43
5.3 RECOMMENDATION........................................................................................................................45
REFERENCE............................................................................................................................................46
APPENDIX..............................................................................................................................................48
iv
ABSTRACT
Employee Motivation has its own impact on productivity in a company. The objective of the study is to
know the contribution of motivation to productivity, and to assess the existing Motivational strategies in
zebidar brewery factory Share Company, and to analyze, evaluate its impact on employee productivity.
The study was significant to zebidar Brewery Company to identify motivational problems of the company
and take corrective measures and researcher to acquire more experience in research.
The researcher was used both primary and secondary sources of data. In addition, the researcher used a
simple random sampling technique. The method that was used to collect the necessary information’s are
questionnaires and interviews. Both open and close-ended questions were included in the questionnaire
and the interview method. The information from both some scholars, managers and employees of the
organization indicated that motivation and productivity had positive relationships.
Salary is among the best satisfying elements and then the company must have to focused on extrinsic form
of motivation to motivate workforces.
v
CHAPTER ONE
INTRODUCTION
1.1 Back Ground of the Study
In business world, motivation for employees in an organization is one of the facts of how
effectively and efficiently tasks are accomplished. Motivation is the process that accounts for an
individual’s intensity direction and persistence of effort toward attaining a goal (robbins and
judge,2006).
The Survival of an organization is only possible through effective and efficient management of
organizational resources.
Human resource is one of these resources that need to be well managed. As a resource, human
resource plays a vital role in achieving both the long-run and short-run objectives of the
organization. Managing people at work is not easy as managing of others’ resources because of
the complex nature of human beings (Macmillan India Ltd, 2005).
Every individual is different with different personality and background and it is important for the
management to understand what can motivate and satisfy each individual in the organization that
can help their performance boost in to a cohesive and effective work force.
The study of Motivation important for workers will tend to be as efficient as possible by moving
up on their skill and knowledge, for performing any task, two things are necessary, they are:
ability to work and willingness to work.
A comprehensive understanding of the way in which an organization function requires that at
least some attention to be directed toward the question of why people behave as they do on the
Job. An understanding of the concept of motivation is thus essential in order to comprehend
more fully the effect of variations in factors such as leadership, job design, and salary systems
related to performance, satisfaction, and forth. (Ibid)
1
Employee motivation is the basis for the productivity of one organization so, the researcher was
conducted the study on zebidar brewery share company, because of in developed country most
researches are conducted in the past for example, employee motivation and productivity in east
west university(bangladish) to understand employee motivation and to well implemented, but in
our country, I think there is a gap to the concept of motivation and no organization in which
employee motivation well implemented so, that is why I am interested to clearly identified the
problems.
Zebidar Brewery Share Company is a company established in accordance with the Ethiopian
Law. It is jointly owned by Ethiopian and Belgian companies who have their own legal states in
their respective country of origin.
The latest entrant to the Ethiopian beer industry, Zebidar Beer SC, which is based in the
Southern Region State has joined the market with pull off caps. The pull off cap a.k.a. Rip Cap,
which is a first-of-its-kind to the Ethiopian market, avoids the customary bottle openers.
Located in the localities of Gubre, near to Wolkite town, 167km south west of Addis Ababa,
Zabidar Beer will be available in the market with a unit price of 13 birr per bottle.
With a total investment capital of 1.2 billion birr and an initial production capacity of 350,000
hectoliters, the beer maker has launched a 330cl and a five percent alcoholic volume beer to the
local market.
BGI Ethiopia, Ethiopia’s largest brewing company and unit of the French Castel Group, is set to
take over full ownership of Zebidar Brewery
Vision of Zebidar
Zebidar Brewery Share Company visualizes to be a first ranking brewery producing Ethiopia’s
finest beer for domestic and international markets.
Mission of Zebidar
The main mission of Zebidar is to produce quality beer in different packages in an
environmentally and socially responsible manner. It intends to be competitive in the beer market,
make reasonable profit to its shareholders and create employment opportunity for both skilled
and unskilled laborers.
2
Objectives of Zebidar
The core objective of Zebidar is implementing a Greenfield Brewery project having an initial
capacity of 350,000 HL per annum, increasing to 650,000 HL within 5 years’ time.
A motivated employee is responsive to the definite goals and objectives, sh/e must achieve;
therefore, sh/e directs their efforts in that direction. An employee plays an important role in
accelerating organizational development (Bulent et al, 2009). Motivation is an internal strength
that drives individuals to pull off personal and organizational goals (Reena et al, 2009).
Therefore, the purpose of the study was to investigate that what in most cases Motivation is seen
as with the problem or being very expensive to motivate employees in an organization, because
the management of the organization have to increase employees pay package providing health
facilities, accommodation and other incentives. Therefore, it has been a problem for the
organization to motivate their employees for higher productivity. This research tried to answer
this problem.
3
1.4 Research Question
4
1.6 Significance of the Study
The reason for the existence of any kind of business in the market is to make a profit. Effective
& efficient production of products and market them for the customer are always prerequisite for
making a profit. Therefore, a cues study on motivation benefits the organization to reach target
profit level through employee motivation: -
It will help the factory to identify Motivational problems of the Company and take
corrective measures.
To fulfill the requirement of first degree in manager.
The study will help the researcher to acquire more experience on research.
It will fill the organizational gap about understanding of motivation.
5
CHAPTER TWO
2. REVIEW OF RELATED LITERATURE
2.1 INTRODUCTION
What is motivation? What Factor Influence motivation?
The challenge of an organization leader and managers to motivate their employee is expectedly
complex. They must find out what workers are for them in their situation in their perspective
organization.
The chapter addresses different traditional theories and some aspects if their application in
today’s business environment. It also of motivation and some briefly touches on some methods
of motivating employees at workplaces.
This chapter tries to present a brief discussion of the major motivational theories that must be
taken into account while managing employees in the workplace to all managers will be sensitive
to variations in employees’ needs, abilities & goals. and this chapter try to discuss about
productivity and measurement, and implications of productivity.
6
performance and the goals of productivities. Usually, motivation plays an important role in
achieving business goals in a workplace where is consist of workers. It could bring every
employee enthusiasm in their work to gain the goals of productivities or the organization
objectives if the managers motivate their staff well (Dysvik and Kuvaas, 2008). So, how to
motivate the employees challenges the managers of the organizations or companies. High level
of motivation could lead to high level of performance, and then good performance could cause
high productivity. In contrast, low motivation perhaps makes turnover happen frequently.
Motivating in the workforce is complicated and difficult due to many different reasons such as
work itself, work conditions, relationship between supervisors and staff (Herrera, 2002). The
managers probably need to motivate their employees by some motivational theories. The theories
of motivational could help them to improve workers’ performance, reduce the turnover, make
employee remain the right attitude towards the work. Consequently, the high level of
performance usually can improve the productivity.
Motivation is defined by Robbins (1993) as the “willingness to exert high levels of effort
towards organizational goals conditioned by the effort’s ability to satisfy some individual need”.
Similar to this definition is that of (Denhardt et al., 2008, p.147) who opines that “Motivation is
an internal state that causes people to behave in a particular way to accomplish particular goals
and purposes. It is possible to observe the outward manifestations of motivation but not
motivation itself”. It is evident that motivation directs our behavior towards specific goals.
Especially, performance of works in the organization is highly influenced by the motivation
practices of the organization. The reason for studying the 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 presence of ability & 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 an employee. (Its
Chandan 1994:55).
Motivation can be defined in a variety of ways depending on which goals ask. If you ask
someone on the street, you may get a response like. “It what drives us” or “Motivations what
makes us do the things we do”. As far as the formal definition, motivation can be defined as
forces within an individual that account for the level, direction, and persistence of effort
7
expanded at work (Schermerhorme et al 1984:76). The term motivation was derived from Latin
word “Mower” which means to move (Steer & porter 1983:3).
Motivation has been defined in different way by different authors; there is no single universally
accepted definition for this term. To mention few, motivation was defined as stimulation to
action resulting from the individual’s desire to reach or established goal or purpose (Smith
1961:584).
It has also defined as those Psychological processes that cause the arousal and persistence of
voluntary action that are goals directed (T.R. Mitchell 1982:80).
Motivation theory is a way of looking at the motivation of a person and how this influences their
behavior, whether for personal or professional reasons. It's important to every aspect of society
but is especially relevant to business and management. Motivation is the key to more profitable
employees, as a motivated employee is more productive.
8
starts with the idea that people
always tend to want something
and what they want depends on
what they already have. Maslow
proposed that there are five
different levels of needs people
have
to seek for satisfaction of their
basic needs. (Mullins 2007,
258) Maslow’s Hierarchy of needs must be one of the best known motivation
theories in the world. Maslow is a good starting point to start examining the different
motivation theories. Maslow starts with the idea that people always tend to want something and
what they want depends on what they already have. Maslow proposed that there are five different
levels of needs people have to seek for satisfaction of their basic needs.(Mullins 2007, 258)
Abraham Maslow postulated that a person will be motivated when all his needs are
fulfilled. People do not work for security or money, but they work to contribute and to use their
skills. He demonstrated this by creating a pyramid to show how people are motivated and
mentioned that one cannot ascend to the next level unless lower-level needs are fulfilled. The
lowest-level needs in the pyramid are basic needs and unless these lower-level needs are satisfied
people do not look at working toward satisfying the upper-level needs.
Physiological needs: are basic needs for survival such as air, sleep, food, water, clothing,
sex, and shelter.
9
Safety needs: Protection from threats, deprivation, and other dangers (e.g., health, secure
employment, and property).
Social (belongingness and love) needs: The need for association, affiliation, friendship,
and so on.
Self-esteem needs: The need for respect and recognition.
The manager will have to understand at what level the team members are currently, and seek out
to help them to satisfy those specific needs and accordingly work to help fulfil those needs. This
will help the team members perform better and move ahead with the project.
10
The core of this theory lies in the
fact that when one need is fulfilled,
its strength diminishes and
the strength of the next level
increases. (Latham 2007, 31)
Maslow does note that one level
of
needs doesn’t have to be totally
fulfilled before a person moves to
the next level. The individual
can be partly satisfied with one
level and still seek for satisfaction
at the next level. (Salanova &
Kirmanen, 2010
The core of this theory lies in the fact that when one need is fulfilled, its strength diminishes and
the strength of the next level increases. (Latham 2007, 31) Maslow does note that one level of
needs doesn’t have to be totally fulfilled before a person moves to the next level. The individual
11
can be partly satisfied with one level and still seek for satisfaction at the next level. (Salanova &
Kirmanen, 2010).
Abraham Maslow’s theory has merit but not all the thinkers were satisfied with his theory as a
result, other theories came out. Another famous motivation theory is Hertzberg’s two factor
theory. Hertzberg separated the needs into two categories: hygiene factors and motivating
factors. To ensure that an employee is not dissatisfied, hygiene factors are required. Employee
happiness and motivation for improved performance are both dependent on motivator factors.
The presence of hygiene factor does not ensure motivation, and motivation factors do not work
in the absence of hygiene factor. Hygiene factors are basically the salary, status, and job security,
which are external to the task and are generally established at the organizational level, can
contribute to discontent and a lack of motivation if they are not present in sufficient amounts.
And motivational factors are achievement, recognition, growth and so on which increase job
satisfaction. According to Herzberg theory, it gives us good idea by knowing what employees
want and it helps us to motivate today's employee. Given that these employees already have
high-paying jobs, we can deduce that monetary or cash incentives alone are insufficient to
motivate them to perform well. This means that firms must go beyond monetary incentives to
motivate employees. Hertzberg had conducted his own study in Pittsburgh by interviewing 200
accountants and engineers from different industries. He carefully carried out his study, he
concepted the critical Growth Needs Relatedness Needs Existence Needs. Those employees were
asked when they felt exceptionally good or bad about their job. The reactions assembled from the
worker observed to be steady and uncovered that element influencing representative's inspiration
are in two general classifications specifically hygiene factors (dissatisfiers) and motivators
(satisfiers). This led to the emergent of the two-factor theory of motivation and job satisfaction.
According to Hertzberg, people have different needs that must be fulfilled to keep them
motivated. Hygiene factors can be fulfilled by providing financial incentives such as the salary.
Sometimes recently propelling components can be utilized to invigorate the work and the
resultant feeling of motivation is accomplished. The suggestion is that the capacity of the
administration to meet the physiological and mental needs of the representative has an impact on
12
the in general level of fulfillment or disappointment; propelling components cannot be utilized to
motivate worker to execution until the hygiene factors have been satisfied. Inside the context of
reward system, since there are intrinsic and extrinsic motivation variables, hence reward system
must be based on rewards and motivating forces that cater for the intrinsic and extrinsic needs
and motivation of workers.(Herzberg F.B:1966).
Another important motivation theory is McClelland’s theory of needs. We all have three
motivating factors, according to McClelland. and these factors are totally independent from our
gender or age. These three factors are – Achievement, Affiliation and power. So, in this theory
McClelland focused on these three parts. Human begin generally seeks for achievement in their
life. By reaching their goal they can achieve something meaningful and important which
motivates them. After that they need social belongingness and affection which is a very
important motivational factor. And finally, the need for power is a desire to exert control over
one's own or others' work. People who have a strong thirst for power seek out settings in which
they can exert control and influence over others. They seek to positions of status and authority,
and their level of influence is more important to them than good work performance.
13
Figure 3 McClelland's Theory of Needs
4 McGregor’s theory X and theory Y
Another very popular motivational theory in modern era is McGregor’s theory X and theory Y.
Douglas McGregor developed two separate perspectives on human beings based on worker
participation. The first, dubbed Theory X, is essentially negative, while the second, dubbed
Theory Y, is essentially positive. There are these two types of people. They must be managed in
accordance with their nature.
Theory X: Theory X referred as negative attitude of the employees as workers are essentially
sluggish, self-centered, and lacking in ambition, according to the traditional view of the
workforce. As a result, firm, top-down power is an accepted management style.
Theory Y: Theory Y referred as the positive attitude of the employees. This viewpoint asserts
that employees are intrinsically motivated and eager to take on more responsibilities. Focusing
on providing a productive work environment with positive rewards and reinforcement is a
suitable management strategy.
So, in McGregor’s theory these two kinds of groups need to be identified. Employees in theory
X group needs to be put on pressure to work hard and needs to be monitored more since these
employees are demotivated. On the other hand, Theory Y group is hard working and motivated
so relying on them would be easier for the authorities.
Equity theory, also known as Adam's equity theory, focuses on a balanced relationship between
an employee’s input and output in a workplace. If the balance is right, it would lead to a more
productive relationship between employees with the management. Concurring to the theory,
workers judge the fairness of rewards received in extent to assets contributed for completing a
task by evaluating one’s own investment-reward proportion and compare it against the
proportion of another colleague holding comparable position. In other word, disparity happens
when an individual sees that the apportion of his result to inputs and the apportion of a
significant other’s results to inputs are unequal. Hence, a person is propelled in extent to the seen
reasonableness to the rewards gotten for a certain sum of effort as compared to others. Therefore,
this theory highlights on equality in workplace. As a result, promoting employees, giving them
compensation and conducting performance appraisal needs to be done right to ensure the
equality in the organization to keep employees motivated.
15
Figure 5: goal theory.
16
Valence: Valence refers to the emotional orientations people hold with respect to outcomes
(Vroom, 1995). The depth of the desire of an employee for extrinsic rewards such as
compensation, promotion, vacation, benefits or intrinsic rewards like satisfaction. This is often
the esteem or significance that a person connects to different work results. Each result has a
related valence or value. For motivation to be high, representatives must esteem the outcomes
they will get for their performance. As a follow-up to the sales representative case, in arrange to
be propelled, the sales representative must value the reward that they can get for working
overtime in that given organization. But in case they value something else more rather than
working overtime, for example spending time with their family, than their motivation will be
lower.
Valance
needs of the employee. Intrinsic motivated work behavior stems from a person’s ‘internal’ desire
to do something, and is therefore usually self-applied e.g. pure interest in a project or a positive
recognition from colleagues are examples of intrinsic motivation. The factors affecting intrinsic
motivation include responsibility, freedom to act, courage to use and develop persons own skills,
interesting tasks and opportunities for advancement. Intrinsic motivation refers to motivation that
is enhanced by commitment to work, personal enjoyment, and interest. According to Ryan and
Deci, (2000) intrinsic motivation is define as the doing of an activity for its inherent satisfaction
rather than for some separable consequence. When a person is intrinsically motivated, that
person is moved to act for the fun or challenge entailed rather than expecting outside reward or
pressure from other officials. When that person is intrinsic motivated, he works to satisfy three
Intrinsic motivated employees like to have freedom to make decisions, to express creativity,
17
opportunity for advancement, recognition for good work and so on. For this type of employees
external reward is not the main factor or reason to do the activity or the work given to him
because they can be satisfied by the work itself which means that the task its self are the
motivator.
Extrinsic motivation refers to tangible rewards supervision, pay, fringe benefits, co-workers,
work environment, personal life, work conditions and job security. In this type of motivation, a
Person cannot be motivated by the work itself like intrinsic motivation but satisfied by the
possible reward that person gets by doing a certain activity. Ryan and Deci (2000) argued that
extrinsic motivation requires an instrumentality between the activity and some separable
consequences such as tangible or verbal rewards and that satisfaction comes not from the activity
It self but rather from the extrinsic consequences to which the activity leads. Rewards are useful
instruments that encourage individuals to perform as is desirable and it can take the form of
monetary. It can also be in form of incentives such as increased salary and leave bonus to non-
monetary incentives like promotions and job security.
▪ Monetary Compensation/Salary
▪ Good Leadership Relations
▪ Job security
▪ Communication and Effective Dissemination of Information
▪ Nature of the Job
18
2.5 THERE ARE TWO BROAD MEANS OR TOOLS OF MOTIVATION
Applied by Mangers (Ivance VIC, 1990:308) there are:
Non-Financial Means of Motivation and
Financial Means of Motivations
2.5.1 Non-Financial Means of Motivation; includes;
2.5.1.1 Job Enrichment
Job enrichment occurs when employees are given more responsibility for scheduling,
coordination and planning their own work. Although some writers suggest that job enrichment is
any strategy that increase one or more of the core job characteristics, Hertzberg said that jobs
were enriched only through autonomy and the resulting feeling of responsibly (Steuen L. &
Marty Ann, 2000:115) Viewed in terms of Hertzberg’s motivational factors, Job environment
occurs when the work itself is more changing, when difficult, repetitive and boring tasks are
minimized, when achievement in encourage, where there is opportunity for growth, and when
responsibility advancement and recognition provided (Sosias, 1998:11).
2.5.1.4 Participation
Participation is mental and emotional a involvement of person in group situations that encourage
them to contribute to group goals and share responsibly for them (Davis, 1981:152).
19
2.5.2 financial means of motivation
This type of Motivation system can be in the form of incentives, bonuses, fringe benefits, salaries
and wages.
Reward systems are clearly related to Vroom’s expectancy theory of motivation financial
rewards are fundamental part of the employment relationship. Organizations distributes money
and other benefits in exchange for the employee’s availability, competencies, and behavior
rewards help to individual’s contribution (URS-Davar 1999:237-238)
2.5.2.1 Fringe Benefits
Such extra benefits, in addition to the normal wage or salary compensation, are referred to as
fringe benefits. (Ivano VIC, 1988:79) employee fringe benefits can be grouped into the following
groups.
These are:
I. Payment without wok
II. Retirement benefits
III. Safety and health provision; and
IV. Recreation and other benefits (K, PRASAD 2005:169)
How could the employee fringe benefits motivate employee by?
1. Inducing happier employer’s employee relations
2. Generating good morale in the employees.
3. Providing a psychological environmental satisfactory work
4. Promoting the health and the safety of employees
5. Inducing loyalty to the company and many more (Ibid)
2.5.2.2 Bonus: Are essentially rewards for success and are paid out as free. This is
accomplished when the organization, individual or team has achieved something out standing or
when organizational performance has exceeded it largest. (Ivono VIC 1988:58)
20
2.6 Productivity
Productivity is one of the most important elements of any work organization and any
organization that is not optimally productive cannot withstand the test of time. It has been argued
that productivity is one of the basic variables governing economic production activities and
perhaps the most important one (Tangem, 2002).
Conceptually, the term is generally defined as the relationship or the difference between output
and input, that is, the difference between what is expended on a given product and what the
product returned. In a practical sense, the term is an ambiguous term which could be used on
both tangible and intangible resources.
Generally, researchers on the subject has seen it as not only a relative term but also a term which
in actual senses cut across virtually every aspect of the production process (Singh, Motwani &
Kumar,2000).
Productivity is therefore closely connected to the use and availability of resources; this
means that productivity is reduced if a company’s resources are not properly used; it is strongly
linked to the creation of value. Thus, high productivity is achieved when activities and resources
in the manufacturing transformation process add value to the products (Kinnander & Gröndahl,
1999). Furthermore, the opposite of productivity is represented by waste, and it is usually caused
According to Tangem (2002), productivity is the output of an industrial concern in relation to the
materials, labor, etc. employed It is simply the measure of how well an operation system
functions. Technically thus, productivity is said to be a measure of how effective all the factors
of production have been put into use (Mullins, 2004). However, since it is the labor that is
responsible for the utilization and management of all other factors of production, thus, the
productive capacity of the laborers is usually given utmost attention in many researches on
productivity (Misterek, Dooley & Anderson,1992; Koss & Lewis, 1993; Mullins, 2004
Armstrong, 2006). In this regard, productivity is the effectiveness of productive effort, especially
in industry, as measured in terms of the rate of output per unit of input. Forrester, (1993) defined
21
productivity as the relationship between output (O) of goods and services and the input (I) of
resources human and non-human used in the production process.
Numerically, measurement of productivity is usually expressed in ratio form O:I; that is the
higher the numerical value of this ratio, the greater the productivity. Productivity could therefore,
be measured as: Units of output/input or output/labor + capital + Material + Others.
In other words, employee’s productivity can be measured in term of his/her contribution to the
profitability and growth of the enterprise. Productivity is an important term in
general.
22
Concentrating on profits
Time management
Customer satisfaction
innovation
Concentrating on profits
One way you can measure profitability is to monitor the profitability and sales of the
organization. For example, in simple terms, if one year your company profited by one million
dollars and the next year it profited by two million dollars, there is a clear indication of increased
productivity, although it would be necessary to perform a deeper analysis of the company’s
profit and loss sheets to understand what caused the increase of profitability.
Focusing on profits can be a popular choice for companies operating in areas where it is often
difficult to measure how long a specific activity will take.
Consider, for example, a team responsible for managing ad campaigns for several clients. The
company may decide that it is more important to secure a few major clients by producing high-
quality ad campaigns than it is to secure as many clients as possible.
In this situation, they may decide that the best way to assess how effective the team has been is
to focus on profits they have brought into the company. They may compare the rate of profit
against the total amount paid out in salaries for a more accurate measurement.
Another approach concentrates on how many tasks are completed by the workforce. In this
productivity measuring method, management is less concerned about the time that’s needed to
complete tasks. Instead, they’re focused on completing the final product.
23
To run such a measurement of productivity, you may need to break up projects into smaller
tasks. These tasks are then assigned to each employee to ensure that the full project is completed
by the specified deadline. For larger projects, interim goals or targets may be included, so that
everyone knows whether the work is running to schedule.
Time management
An alternative option for measuring productivity is by monitoring the time you take to complete
a task. To do this, use productivity measuring software or online programs.
One commonly used time management system requires employees to enter the time they spend
on a task into a spreadsheet. The results can then be assessed by managers over time to see
whether productivity is increasing, decreasing or remaining steady. The advantage of this method
is that modern software allows companies to break down time into minutes and even seconds to
ensure that labor time is being used effectively.
If a small team or group of employees interact regularly, you may implement productivity
measurements based on peer assessment and feedback. In such a system, you assess each
employee’s productivity according to the feedback they get from others about their performance.
For it to be successful, every employee must know the different roles each member of staff in the
team has and what they are expected to be doing. There must be a high level of communication
within the team and employees must feel comfortable enough to offer an honest assessment of
their colleagues’ performances.
A popular method for measuring productivity in a factory setting is to compare total labor time,
which is also called the input, with the number of products manufactured, or the output. By
doing so, companies can calculate a ratio that shows them how efficiently their employees are
working.
To measure productivity in this way, you will divide the total number of products made by the
total number of hours worked by all employees. Then, you will use the result as a cost-benefit
ratio, which you can monitor.
24
Monitoring employee progress
One method is the daily check-in or team meeting. This involves meeting with your team daily to
discuss workflow, issues that may have come up or new developments to your working
procedures. By comparing how much work employees have completed during a day or a week,
you will a general idea of how productive they are.
Customer satisfaction
Work Environment
Technology
Your employees are one of the main factors that can increase productivity and your company’s
economic growth.
That’s why knowing the key factors that affect employee productivity can be a game-changer
for your business.
25
A. Employee engagement
Investing in your employees is a good way to get higher productivity, better labor efficiency, and
increased engagement.
Create a positive working environment, encourage feedback, and always set achievable goals —
and you’ll see a significant productivity improvement.
Remember, setting unclear and unattainable goals usually result in low productivity and loss of
motivation because it makes employees feel confused and unsure of how to proceed with their
work.
But when you set clear and achievable goals, your employees feel more engaged and
incentivized to improve at their job.
B. Employee satisfaction
This can increase their satisfaction since they see that you care not only for the bottom line of
your business but also for your employees’ well-being.
C. Employee training
An untrained employee will drag your productivity down. Training is a significant productivity
factor that should be comprehensive and thorough. Take your time, talk to your employees, and
explain how their role affects the organization’s operations, so they see the big picture. This way,
you increase their capability of handling general things on their own, rather than merely giving
them role-specific know-how and limiting their learning ( www.investopedia.com)
26
2. Work environment
If your facilities’ temperature isn’t taken care of, it can significantly decrease your productivity
gains.
For example, if you’re trying to save up on electricity bills in the winter, it will cause your
workplace to be far colder than usual. As a result, people will be preoccupied with keeping
themselves warm and less concentrated on the work they need to get done.
Another thing to focus on, is lighting. Poor lighting creates difficulties for employees to get their
job done, while lights that are too bright might lead to employee discomfort and even migraines.
The equipment you use can affect productivity significantly. This is especially important for
physical capital like production machines and computers.
Remember, a poorly designed tool might be less costly right now but will cost you more in the
long run. For example, if you purchase a slower, leggier computer, it’ll probably cost you far less
than buying the latest model in the market.
However, this lag will result in wasted minutes for your employees every single day of the week.
This, in turn, can cause frustration – affecting their job satisfaction and further reducing their
productivity in the long run!
A desk cluttered with paperwork, and different files can slow down your employee’s work
processes significantly. Similarly, having employees working too closely together in a crowded
workspace is not ideal. Environmental factors like this make your employees feel more stressed,
chaotic, and distracted. Improving this organizational factor will declutter employee
workstations and your office space – leading to increased employee satisfaction and a
productivity increase.
3. Technology
27
Almost every modern business is highly reliant on technology these days, and they’re always on
the lookout for the next best app or tool.
It’s important to note that this technological change is crucial for achieving productivity level
increase. Improving technical factors like these can help you do more with less and
tremendously increase your productivity growth. (www.investopedia.com et al)
To Wayne (1998) motivation is a psychological force within a person that determines the
direction of a person’s behavior in an organization, a person’s level of effort, and level of
persistence. Armstrong (2012) conceived of motivation as the force that energizes, directs, and
sustains behavior, it is concerned with the strength and direction of behavior, and the factors that
influence people to behave in certain ways. What could be deduced from the above is that
motivation has a very high tendency of affecting the productivity of the workers such that a well-
motivated worker would exhibit productive work behavior while ill-motivated employees are
likely to portray counter-productive behavior (Ojokuku,2013). According to Wayne (1998),
organizational success is dependent upon members being motivated to use their full talents and
abilities and directed to perform well in the right areas. A closer observation of the reviewed
literatures in this sub-section would reveal that much of the available researches on motivation
28
and productivity are generally theoretical and not much of the researches are empirically based.
Moreso, it could also be seen from the foregoing that many of the earlier researches on
motivation and employees’ productivity focused more on Western societies.
The concept of motivation and productivity is not new, over the years it has generated a lot of
studies and global attention from researchers, consultants and authors focusing on the impact of
motivation on organizational productivity. Both these two concepts are vital in appreciating the
value of human resource as an important factor of production (Latif et al 2014, Hussein & Simba
2017; Mulema 2019). In the same vein, Carlsen (2003) supports the notion by emphasizing that
motivated workforce facilitates the achievement of a competitive edge and the bottom-line. This
means that the management has the responsibility to develop policies and practices that
motivates the human resource to achieve the overall business strategy of attaining productivity. It
is important to define the two critical terms to understand the direction of the paper. Singh et al
(2012) in Bawa (2017), define productivity as the optimal utilization of resources in the
production of goods and rendering of services that meets predetermined objectives. Motivation is
defined as the educating of employees to channel their efforts towards organizational activities
and thus increasing the performance of the said boundary spanning roles (Ran 2009; Armstrong
(2006); Eberendu & Okere 2015). The study is timely to the management which facilitates the
wellbeing of the employees. It further addresses the fact that management must not only be
limited to supplying raw materials, facilities, and equipment, but rather effort and attention
should be directed in motivating its employees for productivity, quality and customer relation as
these are the key areas of success and these depends on performance of the employees. So,
regardless of the organizational variances, management faces a common challenge of fostering a
motivating work environment (Rounok & Parvin, 2003). This paper therefore seeks to present a
review of literature on this motivation and productivity issue.
2.11EMPERICAL REVIEW
29
empirically by various scholars. One of the early empirical studies on Maslow’s hierarchy of
needs theory tested whether the list of needs derived from Maslow is applicable to other cultures
(Bawa, 2017). The study found that managers found the needs to be essential. Nonetheless, even
though the needs are applicable universally, the importance attached to the satisfaction of
different needs varies from culture to culture (Haire, et. al., 1963 in Bawa (2017). According to
Bawa (2017), a survey conducted by Velnampy (2007) to examine Maslow’s hierarchy of needs
theory and revealed that consciously or unconsciously lower level employees in both public and
private sector organizations of Sri Lanka attach more importance to lower level needs and higher
level employees emphasize higher level needs.
Sajuyigbe, et al (2013) conducted an empirical study in manufacturing companies in Ibadan,
Nigeria, in testing the Herzberg’s motivation hygiene theory, and came to a conclusion that pay,
performance bonus, recognition and praise were highly related to organizational performance.
Staff training and development is another indispensable motivator in the workplace.
Aibievi (2014) collected data from 100 non-academic staff of University of Benin, Nigeria to test
the impact of training and development on employee motivation. The study found a significant
Positive correlation between training and motivation. Trained staff was found to be more
dedicated to duty compared to those who did not receive training and also that training could
lead to increased productivity.
Likewise, Malina and Selto (2001) conducted a case study in one corporate setting by using
balance score card (BSC) method and found out that organizational outcomes would be greater if
employees are provided with positive motivation.
According to Thomas (2009), pinpointing what motivates each individual employee is regarded
as the main challenge in the workplace taking into account each individual difference. The
management must be aware of what exactly encourages the employee to perform; monetary
rewards can be an essential determinant of employee motivation and achievement which, in turn,
can lead to important returns in terms of firm level performance (Bawa, 2017). Naldöken et al.
(2011) examined the financial incentive application on the motivations of employees at a state
hospital in terms of their performance. It was established in the study that the medical
employees, who benefited from these financial incentives were positively motivated by this
application.
Mulema (2019) carried out a study in Information Technology Support Service Companies in
30
Kampala, Uganda. The study aimed to determine the impact of employee motivation on
organizational performance. The three selected IT support services companies where I want
Solutions, Mercury Group and Sky Hi Technology. The intention of the study was to evaluate
the relationship between employee motivation and organizational performance, to analyze the
relationship between employee motivation and employee commitment and to outline the key
factors that increase employee motivation. The study’s main findings indicated that there is a
positive relationship between the motivation of employee and organizational performance.
Muze (2014) also researched motivation and its impact on employees’ performance in goal
attainment. The intent was solely to investigate the standards which are being used by
organizations in motivating their employees; to evaluate the problems that companies face in
motivating their employees; and to examine the effect of motivation on employees’ performance.
Muze’s study findings clearly indicated well the impact of employee motivation on
organizational efficiency, it failed to acknowledge several indicators of employee motivation
such as recognition and empowerment.
According to a survey carried out by the United States of America Career and Qualification
Principles in 2005, it was determined that the most important element motivating both the
employees and employers were job satisfaction and personal satisfaction for both groups.
According to the results of the study, it was observed that non-financial incentives are given
much importance than financial incentives (Coşkun & Dulkadiroğlu 2009).
Finally, Tausif (2012) as cited in Haider, et al (2015) conducted a survey in Pakistan among
public school teachers and found that non-financial rewards were essential in developing
employees’ job satisfaction and motivation.
Likewise, Barton (2006) found that employee recognition is the most important factor among
non-financial rewards in enhancing job satisfaction and motivation. Furthermore, Yousaf et al
(2014) argue that the importance of a motivated workforce cannot be underestimated in boosting
the organizational motivation.
Besides the financial rewards, the employee expects recognition and appreciation for his efforts
and contribution.
31
2.12 Conceptual Frame Work
The need for conceptual frame work is to pulls together the concept of motivation and productivity.
Employee motivation can increase employee productivity and employee performance in the
workplace. High level employee motivation will impact employee productivity by stimulating
the production of better and higher quantity work.
A motivated employee is more likely to have a high level of job satisfaction and increase long
term employee retention. For every employee job at your business, your human resource
department should focus on training development that strives for increasing employee motivation
and job satisfaction simultaneously.
Remember, high level motivation employees are the greatest resource of any business.
Therefore, investing in developing high level employees should also be a business's greatest
investment of time, resources, and money.
Variables variable
Motivational factors
Intrinsic factors
Recognition
Fairness treatment
Opportunity for
Personal development
PRODUCTIVITY
Extrinsic factors
Monetary compensation
Leadership style
Job security
32
CHAPTER THREE
33
issues. The questionnaire has four sections; the first section deals with general personal
information about the respondents. The second section deals with related to the study. The third
section addresses respondent’s opinion on motivation and productivity of the company. The
fourth section addresses interview questions.
II. Interview
helps to obtain relevant information that cannot be collected by questionnaire. This tool was
selected because it provides information which ensures the capability of the data (Kumer, 1999).
It will to gain more information about the research question and to get more in-depth data from
those respondents. Due to these two individuals both who are in top management position 0(sales
manager and general manger) level was chosen for the interview based on the years of
experience with semi structured interview.
n=53
The sample size is 53 from a population of 234.
Total this sample size selected randomly by using lottery means from the total population.
35
CHAPTER FOUR
DATA ANALYSIS AND INTERPRETATION
4.1 INTRODUCTION
This chapter discuss the result of the finding of the data analyzed from the questionnaires. The
data was analyzed based on the research objective and questioner item using statistical tool
(percentage, table). for the sample size of 53 questionnaire were distributed to the respondent,
almost 50 questioners were collected, therefore, the analysis of this study is based on the number
of questionnaires collected.
36
Description by statement
From 4.1 as we can observe age range of the respondent from 50 respondents 35 of the
respondent (70%) are between 20-29 and ,11(22%) are between 30-39 and 4(8%) are between
40-49 and between 50-59 are non. This implies most of the organization employees are between
20-29 this age means the productive age they can contribute more effort to organizational
success.
Regarding to gender of respondents from 50 respondents 30(60%) are male and 20(40%) are
female this implies in the organization there is a fair gender distribution and majority of the
respondents are male.
Respondents educational level, out of 50 respondents 10(20%) were complete grade 12
completed, and 10(20%) were under 12 drop out, and 10(20%) diploma holders, and 19(38%)
had first degree, and 1(2%) had second degree. from this the company had literate work forces,
and majority of the respondents are had first degree.
The last item indicates the respondent service year in the company from 50 samples 42(84%)
worked between 1-5 classes and 8(16%) worked between 6-10-year classes. Then most of the
respondents worked on the organization to 1-5 years because of the newness of the organization.
37
A. yes 20 40%
b. no 25 50%
c. I don’t know 5 10%
Total 50 100%
3 When you Compared with employees of
equal education level and service year,
your salary is?
a. higher 5 10%
b. equal 25 50%
c. lower 20 40%
Total 50 100%
Table 2: salary attitude of respondents
From the above table, the respondents salary range from 50 respondents 17(34%) of respondents
salary are between 2000-4000 and 12(24%)are between 4001-6000 and 7(14%)are between
6001-8000 and 4(8%)8001-10000 and 10(20%)of respondents salary are >10000 birr here, most
of the respondents salary are under 2000-4000 but the organization paid better to higher positions
employee.
Item 2 questionnaire forwarded for employees to assess whether they have ever felt to be
motivated because of their salary, most of them 25(50%) said no, 20(40%) said yes, and the
remaining 5(10%) said some extent they don’t know. Concluded from this, since employees are
naturally too sensitive to their salaries, management should pay attention to solve their problem.
comparison of salary of employees having equal education level & experience out of the
respondent who filled the questionnaires half of respondents 25 (50%) replied that their salaries
are equal with compared to other, and 20(40%) said their salaries are lower than others, and
5(20%)of the respondent said their salary is higher than others.to conclude the company pay
equal payment to have equal skill and educational level of employees.
38
Table 4.3 effectiveness of performance appraisal of the company
No. Items Frequency %
1 Do performance appraisal criterions evaluate
workers effectively?
a. yes 33 66%
b. no 12 24%
c. Some how 5 10%
Total 50 100%
Table 3: effectiveness of performance appraisal of the company
Based on the companies evaluation criteria employees reflect their fillings about performance
appraisal criteria, most of the respondents 33(66%) said yes the evaluation criteria evaluates
employees performance effectively, 20(24%) said no and some of respondents said, some
how5(10%).
39
2 Are your skill matches with the job requirement?
a. yes 39 78%
b. no 7 14%
c. not sure 4 8%
TOTAL 50 100%
3 Are you willing to take job that requires different skills?
a. yes 23 46%
b. no 19 38%
c. to some extent 8 16%
TOTAL 50 100%
4 Are you willing to take additional responsibilities
without salary increment?
A. yes 31 62%
B. no 13 26%
C. not sure 6 12%
Total 50 100%
Table 4: roles of training to employee’s motivation
Table 4.4 indicated that all respondents conform that they take training at different time over 50
respondents all of them 100% said yes. This means the company exerts great attention to
training.
For the second item, are your skill matches with the job requirement? Most of respondents said
yes 39(78%) ,7(14%) of the respondents said no, 4(8%) of respondents are not sure.
Respondents were asked whether they are willing to take jobs that requires different skills of the
respondents, 23(46%) said, they are willing and 19(38%) are not willing to take jobs that
requires different skills 8(16%) said to some extent. According to the figure above, majority of
the workers want to accomplish jobs requiring varied skills.
Employees were asked whether they are willing to take additional responsibility or not without
salary increment, out of all respondents 16(62%) are willing, 13(26%) are not willing, and
6(12%) are not sure additional responsibility even without salary increment. Such employees are
in a high need for achievement profile. Management should identify such workers so that
appropriate responsibilities will be given to them in order to motivate them.
40
4.5. Motivation and productivity
It is evident that motivated workers are more productive than none motivated when workers are
motivated, they can properly administer company’s resources and having willingness to exert
some effort to organizations work, Use best of their knowledge and their skill little scraps, and
less absenteeism and turn over, in this part of the study, we investigate whether motivation
affects productivity in zebidar brewery factory or not. Questions were addressed to employees
and presented in the following table.
Table 4.5 employee motivations and organizations productivity.
No Items Numbers of Respondents %
1 Are there any benefits you get from the
organization motivate you for better
performances?
a. Yes 47 94%
b. No - -
c. To some extent 3 6%
d. I do not know - -
Total 50 100%
2 Do you think Motivation from your
organization increase your
productivity?
a. Yes 43 86%
b. No 1 2%
c. Some how 6 12%
d. I do not know - -
Total 50 100%
3 Do you think motivation incentives in
your organization are enough
a. yes 17 34%
b. no 23 46%
c. no sure 10 20%
Total 50 100%
4 Fringe benefits to motivate employees
a. utmost 50 100%
b. at least - -
Total 50 100%
Table 5: employee motivation and organizations productivity
41
Benefit packages from company to motivate employees for higher performance item 1 of table
4.5 briefly indicates 47(94%) of respondents agreed that the benefits they set from the
organization motivate them for better performance. The rest 3(6%) stated that the benefits they
get from the company do not motivate them at all but to some extent to better performance. One
can certainly conclude from this that productivity and greatly depends on employee motivation
because if there were a benefit from the organization to employees they can do better then, at the
same level the productivity of the organization will increases.
No Items Number of %
Respondents
1 Do you have good Relationship with your workmates?
a. Yes 50 100%
b. No - -
c. I do not know - -
Total 50 100%
2 If your answer to the above question is yes, does that motivate you to
perform your job well?
a. Yes 50 100%
b. No - -
c. Some extent - -
d. I do not know - -
42
Total 50 100%
3 How much do you satisfy with your work environment?
a. Very Much 44 88%
b. Some how - -
c. Does not satisfy me 6 12%
Total 50 100%
Table 6: working conditions
From the above table, to the question of employee relationship all of the respondents said they
have good relation with their workmates 50(100%).and this good relations with peers make them
motivate and perform their job well .and work environment of the organization is acceptable to
employees at most of 44(88%) respondents out of 50 samples, and the rest of 6(12%) said they
are not satisfied of the work environment of the company.
Almost all of the respondent said, yes, the one who worked on human resource department said
that; employees’ willingness to work is essential nothing other else. If employees are motivated
to work, they can exert more effort to achieve organizations goal. And also, if they are motivated
again, they can do better, they can be productive person at all the company can gain more profit.
Motivation is the most important thing in humans inherent and which is initiate peoples to do
something in workplace employees need to be motivated to do good job. Then if the organization
can motivate employees the organizations productivity may increase, can getting the job done.
If there is greater motivation in organization the employee’s sales capacity may increase, and to
having good relation with customer (to build strong customer relationship).
Motivation is not only determinant to productivity but also to development because, if the
organizations are productive can contribute country development
43
A few respondents said yes and few respondent said no, then more than half of the respondents
said yes, because if an employee is compensated to what he got loss, injure he may motivated .
Motivation has always been a key factor for employee’s productivity by playing an important
role in influencing employee performance which translates into employee productivity. The
relation between motivation and productivity has been an important topic ever since F.W. Taylor
conducted his rational analysis and scientific management (Taylor, 1911)
Define productivity as the optimal utilization of resources in the production of goods and
rendering of services that meets predetermined objectives.(HR department respondents)
Motivation is defined as the educating of employees to channel their efforts towards
organizational activities and thus increasing the performance of the said boundary
spanning roles.(from HR department respondents).
Yes, we have to increase our productivity and we are trying to motivate employees by giving
bonus, training and meetings.
Yes, to motivate employees we compensate them by giving extrinsic rewards wages, salary,
bonus and incentives.
Q 5 how do you describe extrinsic motivation? It is a motivation and comes from external environment
that encourage individuals to perform as is desirable and it can take the form of monetary.
44
CHAPTER FIVE
SUMMARY, CONCLUSSION AND RECOMMENDATION
5.1 SUMMARY
This study has attempted to examine employee’s motivation and their productivity in the case of
zebidar brewery factory. Hence, the major finding of the research is summarized and presented
as follows. This study was conducted by questionnaire and the researcher used quantitative data
to the study. the respondents to this study age compositions are 20-29 i.e productive age, and
most of them are male, and their salary level is 17 (34%) between 2000-4000,and
10(20%)>10000.and half of the respondents said they never felt happiness to their salary but the
organization pay equal payment to have equal educational level and experience. we observe the
company has an experience of giving benefits to motivate employees and that of benefits had
major contributions to their greater performance. The respondent’s response implies that the
company gives high attention for development of skills of employees by giving trainings to helps
them increase their ability and to be productive. From the data collected, 100%of respondents
they have strong relationships with their superior and work mates and the work environment is
convenience to work. From open ended questions we find productivity is determined by
employee’s motivation because motivation is an internal force that encourages peoples to do.
5.2 CONCLUSSION
The research finally comes with the following conclusion based on the findings regarding the
assessment of employee’s motivation and productivity in zebidar brewery Share Company.
Basically, the information from both some scholars, managers and employees of the organization
indicated that motivation and productivity had positive relationships.
The result of the study indicates that employee’s motivation had an impact on organizations
productivity. The researcher tried to identify the motivational practice of the company and we
found there is a positive motivational practice to their employees by creating a good relationship
with their subordinates, giving bonuses, salary, incentives, and by making the work environment
convenient. From the two forms of motivation that of extrinsic motivation is the dominant
factors that affect employees’ motivational level. Factors such as salary/monetary compensation,
leadership style, information, working environment. But also, intrinsic motivations have
contributions on employee’s motivation.
45
Human resource is considered to be the most important resource of an organization to remain
competitive in today’s competitive business world. Results from this study reveal that there is a
significant and positive relationship between motivation and productivity. Then to be
competitive the organizations have to great attentions employee’s motivation.
Motivation is considered a predicator of job performance. Motivation in work place help boost
employee morale, the outcome from a motivated employee will produce high level of
productivity, lower absenteeism and turnover. Therefore, understanding what factors motivate
employees in a given organization becomes crucial to focus on that to have high productive
employees.
46
5.3 RECOMMENDATION
Based on the findings and conclusions of the study, the following recommendations are
suggested:
Most of the answers to the questionnaires are positive this reflects, employees and the
organizations having good relationship because, the company gives high attention to employees
motivation, they know motivation is a factor to productivity. And they are happy of their work
but not all
The organizations should appreciate the impact of the employee motivation on the long and the
short-term organizational goals and objectives. The organizations should acknowledge the
impact of the employee motivation on such organizational aspects as productivity and
performance, employee absenteeism levels, employee turnover rates as well as employee stress
levels. Therefore, the organization and the general management should consider implementing
policies and practices that positively affect employee motivation. Such a strategy should be taken
to be better productive.
In the worst way, greater half of the respondents are not satisfied about of their salary,
then to maintain their good relationship the company must have to pay salary which is
considering inflation and other factors.
The company also expected to compensate employees according to their performances
and experience.
As per the respondent’s reaction, the motivations they receive from the company is not
enough to them. Then the company should improve its motivational strategies.
The company should focus on extrinsic form of motivations, but I am not saying intrinsic
form of motivation is not important.
It is advantageous for the company if it gives due attention for the careers development
and training of both managers and employees in order to get more profit and smooth flow
of the work system.
Give to employee’s leisure time (flexi-time).
Creating mutual discussion with employees to really understand what they want and need
to achieve desired productivity.
47
REFERENCE
Adam, Smith, “the people factors in competitiveness” address Presented at the University of
Club of Chicaso,
Akintoye I.R. (2000). The place of financial management in Personal Psychology,
University of Ibadan, Nigeria
Antony, fand mp, macvicar A.(2011) contemporary organizational behavior psyche study
E.kriser publish co. White and Bednar (1991), “understanding and Managing people at work” .
Denhardt et al., 2008. A review of individual change and motivation.
Frederick Herzbers, B.Monsener, and B. Senderman,” the Motivation of Work”, New York;
John Wiley and sons, 1959.
48
Ryan, R. M., & Deci, E. L. (2000). Intrinsic and Extrinsic Motivations: Classic Definitions
and New Directions. Contemporary Educational Psychology, 25(1), 54–67.
Shaffer, P. L. (2004). Pay, Performance, and Equity: An Empirical Study and Extension of
Adams’ Equity Theory.
Taylor, F. W. (2020). The Principles of Scientific Management: first published in 1911 (1st.
Page Classics).
49
APPENDIX
WOLKITE University
Collage of Business and Economics
Department of Management
Questionnaires
Introduction
Dear Respondent,
I am undergraduate student in wku Department of management and presently I am conducting a research
in the area of employee motivation and productivity. As a part of my research paper,
I would like to gather some information from you which will help me to investigate in employee
motivation and productivity in your organizations.
You are kindly requested to complete the attached questionnaire as honestly as possible.
The information being solicited from you is purely for academic purposes. All information
provided by you will be treated confidentially; hence, your name and that of your signature are
not required. Your honest completion of this questionnaire will assist in generating information
that will help organization to improve their motivation and get employees motivated.
This questionnaire is purely for academic purpose and you are not allowed to write your name for your
maximum security. Also, you are kindly request to respond to each item as frankly as you can.
50
Part ONE – Personal Data
Please complete this section by ticking in the applicable box
f
1 age rage?
a ,20-29 c,40-49
b 30-39 d 50-59
2 sex?
a male b female
3 Educational Level?
a 12 complete d Degree
b Under 12 e Master
C Diploma
4 Salary Scale?
a. 2000-4000 Birr d 8001-10000 Birr
b. 4001-6000 Birr e 10000+ Birr
c .6001-8000 Birr
5 Service Year?
a.1-5 year c 11-20 year
b. 6-10 year d 21+ year
PART TWO- Questioner Related to the Study
1 Have you ever felt a happy because of your salary?
a. Yes
b. No
c. I don’t know
2 When you compared with employees of equal education level and service year, your
salary is
a. Higher
b. Equal
c. Lower
3 Do you have good relationship with your workmates?
51
a. Yes C I don’t know
b. No
4 If your answer to question 3 is yes, does relationship motivate you to perform your
job well?
a Yes b No c I don’t know
5 Do the benefits you get from the organization motivate you for better
performance?
A Yes b No c To some extent
6 Is your skills match with the job requirement?
A Yes b No c No Sure
7 Are you willing to take jobs requiring different skills?
A Yes b No c To some extent d I don’t know
8 Are you willing to take additional responsibility out salary increment?
A Yes b No c No sure
9 are you absence in working area?
A Always b Sometimes c Not at all
10 If your answer for the above questions is “A’ or ‘B” in the care of what?
A Dissatisfaction with the job c Personnel Problems
B Dissatisfaction with the boss d I don’t know
11 How much you get satisfied with following things?
Very Much Somewhat Does not satisfy me
You’re Salary
Promotion
Work environment
With peers
With superior
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Fringe Benefits
12 Do you think that motivation from your organization increase your productivity?
a Yes c Some what
b. No d I don’t know
13 Is motivation in your organization enough?
a. Yes C No Answer
b. No
14 Do you believe performance appraisal criterion evaluate work are effectively &
efficiently?
a. Yes
b. No
c. I don’t Know
15 Have you ever taken training?
A Yes
b No
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4 how do you describe intrinsic kind of motivation?
5 how do you describe extrinsic kind of motivation?
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