4 5814336346604438055

ASSESSMENT OF PRACTICE AND PROBLEM OF EMPLOYEE
MOTIVATION (IN CASE OF COMMERCIAL BANK OF ETHIOPIA

ARBA MINCH BRANCH)
BY: WUBIYETSEGAYE
A RESEARCH SUBMITTED TO DEPARTMENT OF MANAGEMENT IN

PARTIAL FULFILLMENT OF THE REQUIREMENT FOR BACHELOR
OF ARTS DEGREE IN MANAGEMENT
ADVISOR – AWEL BEKER( MBA)
ARBA MINCH UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF MANAGEMENT
JUNE, 2016
ARBAMINCH, ETHIOPIA
DECLARATION
This declaration is for the essay entitled with” Assessment of Practice and Problem of
Employee Motivation”. This paper is presentation of my original research work. Where every
contribution of other is involved, every effort is made to indicate this clearly with due refers to
the literature information derived from the published and unpublished work of other has been
acknowledge in the next and list of reference given and I declared that this paper has not been
submitted in any form another degree or diploma at any university or other institution of territory
education.
Name of student
Wubiye Tsegaye Signature__________ Date: ________
Name of advisor_________ Signature_______ Date: ________
Approved By Examiners
1. Examiners______________ Signature_________ Date________
2. Examiners______________ Signature_________ Date________

STATEMENT OF CERTIFICATION
This is to certify Wubiye Tsegaye has carried out the research work on the topic entitled
“assessment of practice and problem of employee motivation”. The work is original in nature
and it suitable for submission for the reward of bachelor of art degree in management.
Advisor: ----------------- Signature: ----------------
Examiner Name
Approved By: ----------------- Signature: -----------------
Approved By: ------------------- Signature: -------------------
Date: ---------------------
AKNOWLEDGEMENT
First I would like to thanks my lord god who helped me to complete my research paper and my
education; and I am greatly indebted to my advisor instructor Awel Beker (MBA) for all his
advice, encouragement and helpful suggestions that brought for successful completion of this
work. It is inconceivable to think about the completion of this work without valuable guidance.
My gratitude goes to my brother Abiy Kebede for his contribution of financial and moral
supports.Finally, I would like thanks to CBE in Arbaminch branch that helped me by giving
information that is needed to complete my research.
TABLE OF CONTENT
I
Contents Page
AKNOWLEDGEMENT................................................................................................................................I
TABLE OF CONTENT................................................................................................................................II
LIST OF TABLE.........................................................................................................................................IV
ACRONYMS................................................................................................................................................V
ABESTACT.................................................................................................................................................VI
CHAPTER ONE
1. INTRODUCTION.....................................................................................................................................1
1.1 Background of the study......................................................................................................................1
1.2. Statement of the problem....................................................................................................................2
1.3 Research Questions..............................................................................................................................3
1.4 Objective of the Study.........................................................................................................................3
1.4.1 General Objective.........................................................................................................................3
1.4.2 Specific objectives........................................................................................................................3
1.5 Significance of the Study.....................................................................................................................4
1.6 Scope of the Study...............................................................................................................................4
1.7 Organization of the Paper....................................................................................................................4
CHAPTER TWO
LITERATURE REVIEW..............................................................................................................................5
2.1. What is Motivation?............................................................................................................................5
2.2. Definition of Employee Motivation....................................................................................................6
2.3. Theories of Motivation.......................................................................................................................6
2.3.1. Maslow’s Hierarchy Needs Theory.............................................................................................6
2.3.2. McGregor’s Theory X and Theory Y..........................................................................................8
2.3.3. Herzberg’s Two – Factors Theory...............................................................................................8
2.3.4. McClelland’s Learned Need Theory............................................................................................9
3.3.5. Equity theory of motivation.........................................................................................................9
2.3.6. Expectancy Theory of motivation..............................................................................................10
2.4. Who Motivate Employees?...............................................................................................................10
2.5. Motivational Strategies.....................................................................................................................11
2.6. Importance of Motivation in Organization, Business, Management................................................12
2.7. What Challenges Managers Face in Motivating to Day’s WorkForce.............................................13
2.8. Factor Enhancing Employee Motivation..........................................................................................13
II
2.9. Herzberg's Motivation Hygiene Theory...........................................................................................14
CHAPTER THREE
RESEARCH METHODOLOGY.................................................................................................................16
3.1. Research Design................................................................................................................................16
3.2. Target population..............................................................................................................................16
3.3. Sampling Technique.........................................................................................................................16
3.4. Types and source of data...................................................................................................................16
3.5. Method of Data Collection................................................................................................................16
3.6. Limitation of the study......................................................................................................................17
3.6. Data Analysis Methods.....................................................................................................................17
CHAPTER FOUR
DATA ANALYSIS AND INTERPRETATION.........................................................................................18
CHAPER FIVE
SUMMURY, CONCLUSION AND RECOMMENDATION....................................................................34
5.1. Summary...........................................................................................................................................34
5.2. Conclusion........................................................................................................................................35
5.3. Recommendation..............................................................................................................................36
REFERENCE
APPENDIX
III
LIST OF TABLE
Tables Page
Table 4. 1: Sex distribution of employees...................................................................................................18

Table 4. 2: marital status of employees.......................................................................................................18
Table 4. 3: Age distribution of employees...................................................................................................19
Table 4. 4: Educational back ground of respondents...................................................................................19
Table 4. 5: Work experience of employees.................................................................................................20
Table 4. 6: Salary level of employees..........................................................................................................20
Table 4. 7: Current position of employees...................................................................................................21
Table 4. 8: Degree of motivation in the bank..............................................................................................21
Table 4. 9: Amount of salary in compression with another institution........................................................22
Table 4. 10: Essence of motivation to employees........................................................................................23
Table 4. 11: The banks try to know the interest of its employees...............................................................23
Table 4. 12: Interest of employees in staying the same position.................................................................24
Table 4. 13: The way to up graded to higher position.................................................................................24
Table 4. 14: Importance of up grading work position to motivate employees in their job..........................25
Table 4. 15: The management encouragement to it employees...................................................................25
Table 4. 16: How the manager encourage its employees in better way.......................................................26
Table 4. 17: The way top management motivated its employees................................................................26
Table 4. 18: Factor enhance employees motivation.....................................................................................27
Table 4. 19: Factor De-motivating employees in the job.............................................................................28
Table 4. 20: Things employees like in their work place..............................................................................28
Table 4. 21: Management provide for its employees with adequate benefit aside from compensation......29
Table 4. 22: Feeling of employees for their compensation..........................................................................29
Table 4. 23: Influence of incentive on motivation.......................................................................................30
IV
ACRONYMS
PWR: Power
AFF: Affiliation
ACH: chievement
V
ABESTACT
The main objective of the study was to assess practice and problem of employee motivation in
commercial bank of Ethiopia ArbaMinch branch. To undertake this study descriptive research
design would be employed. Qualitative and quantitative research approach would be used. In
this study censes type of sampling method was used. There are only 53 employees in the
organization, as a sample the researchers take all of them. Both open and close ended questions
and interview questions were used as data collection instrument. The followings are the major
findings of this study. Majority of employees in the bank feels the degree of motivation to
increase the morale of employees in the job is low. The majority of employees in the bank believe
in the essence of motivation and it encourages doing their job in good morale and commitment to
achieve the organization objective. The majority of employees said bank not try to know the
interest of its employees and not identify what thing employee like and what thing they not like in
the job to achieve their job in good motivation. Employees of the bank indicate that up graded to
higher position in the bank is based on involvement in managerial activity, the bank not provide
the chance for education that helps employees to up graded their position by using their
educational level and capacity to achieve the objective of the organization.
VI
CHAPTER ONE
1. INTRODUCTION
1.1 Background of the study
The survival and growth of business organization in the competitive business environment highly
dependent on its efficient utilization of resources among the various resources organization have
human resource is characterized by its complexity and challenging nature because the
performances of employees in the organization is affected by different factors, such as pay,
benefits, working condition and the like. Since the performance of employees is essential for the
achievement of organizational scheme that encourages employees for the better performance
(Kovach 1995). In this era of globalization , business organization are competing only with local
and national organization, but also with international organizations in order to survive and
succeed, organizations need to acquire the right resource at the right time. These resources
included finance, materials, machinery, information and human resources. Among the resource
the human element is the most challenging and sensitive part that requires a special
consideration. Therefore, employee needs to be motivated to exert their maximum effort towards
attaining a better job performance (Ivancick, 1997). For the smooth running of business
activities, employee’s performance is a crucial issue. According to Ivancevith (1990), if a
manager is to influence work behavior and performance, he or she must have an understanding
of motivator, and the factors which influence an individual’s motivation to come to work, to
work hard, and to work well. Griffin (1990) stated motivation as an important consideration of
managers because it, along with ability and environmental factors, determines individual
performance. Thus better work results can be achieved through applying the necessary
motivational factors. Motivated employees are happy about their job and highly productive. They
try to develop new mechanisms of doing their job so as to improve their productivity. The good
attitude and feeling to words their organization is not limited only when they are within the
organization premises, but also they talk good thing about organization when they are not side
the organization. As a result people develop good image about the organization so managers of
business organization must get the necessary skill on how to motivate employees (Ivancevith,
1990).
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Failure to understand the impact of motivation on employee’s performance will result in the job
dissatisfaction. Employees who develop job dissatisfaction will have negative feeling towards
their organization, they demonstrate their bad feelings by being late to work, absent from the
work place, not performing well, and resign from the organization and so on (Griffin 1992).
1.2. Statement of the problem
Organizations employ workers to perform certain tasks; these workers need to be motivated in
order to perform their tasks with maximum productivity. Motivating employees to do their job
efficiently and effectively is not a simple task. According to Griffin (1993) individual
performance is generally determined by motivation, ability and work environment. If an
employee lacks ability the manager can provide training or replace worker. If there is an
environmental problem, the manager can also make adjustments to promote higher performance
of workers need to be kept in the organization for a long period of time, for this process
motivation is one again responsible. The traditional motivator for a worker is his salary, but in
many cases that isn’t enough. Companies use a lot innovating tactics to keep their productivity at
a maximum level. Some of them imply material rewards; others imply psychological motivators
(weightman, 2008).
Motivational processes fulfill the employees’ need and initiate them to maximize their
productivity for their organization. But all of these human needs were not to fulfilled in many
organization rather organizations are focusing to have advancing technologies, power so as to
increase their organizational productivity but having such things by itself do not enough rather it
is better if organization use or apply different motivational tools in order to motivate its
employees. If employees satisfied by the motivational practice given by their organization,
organization’s profitability will be increased where if organizations feel to apply these
motivation practice the employees will dissatisfying and they will exert their minimum effort to
achieve objective of the organization and this affect the organization prosperity (Verma,2002).
Currently workers are not motivated, because they are not rewarded in full control of their boss
(plawler and porter, 1967). Many studies have been conducted on employee motivation in
different country for example Desselgnmulugata was under go research to assess practice and
importance of employee motivation in Areba mincecity. So this paper was aimed to assess
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practice and problem of employee motivation in commercial bank of Ethiopia Areba Minch
branch in light of this study intend to answer the question like:
- What is degree of motivation in the study organization?

- How employees are motivated in the study organization?
- What are the major problem that affect the bank while motivating employees?
- How the company is affected due to failure of motivating employees?
1.3 Research Questions
This study attempt to address the following basic research questions:
1. What is the degree of employee motivation in the bank under study?

2. How the organization is affected due to failure of motivating its employees?
3. How employees are motivated in the study organization?
4. What are the major problems that affect the bank while motivating its employees?
5. What possible measure should be taken to overcome the identified problems?
1.4 Objective of the Study
1.4.1 General Objective
The general objective of this study was to assess the practice and problem of employees’
motivation in commercial bank of Ethiopia in Arba Minch Branch.
1.4.2 Specific objectives
The study consisted of the following specific objectives:
- To identify the degree of motivation in the bank under study

- To examine how much the organization is affected for its failure to motivate its
employees.
- To explore the major problem that faces the bank during motivating its employees.
- To point out how the organization is affected due to failure of motivating its employees
- To list out the possible recommendation to the indentify problems.
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1.5 Significance of the Study
This study is important to the organization to aware of its strengths and weakness, to improve its
management system, to improve workers motivational level by providing different motivational
factor. It could also serve as secondary data or reference for the future generation or researchers
who seek to conduct research on relating topics. It could help the researcher to get his B.A
Degree in management as partial fulfillment and helps him to develop knowledge and experience
for conducting a research in the future
1.6 Scope of the Study
The study was conducted in GamoGofa Zone (Arba Minch Town on Commercial Bank of
Ethiopia) Arbaminch Main Branch. In terms of time period the study covered a period of at least
seven month starting from (December to June 2016 GC.) Conceptual scope of this study is that
even if there are different issues that need research in the study organization this study merely
focused on assessment of the practice and problem of employees’ motivation in commercial
bank of Ethiopia in Arbaminch Branch.
1.7 Organization of the Paper
The study consisted of five chapters, in the first chapter is concerned with the background of the
study, statement of problem, research question, objective of the study, significance of the study
were broadly discussed. Chapter two briefly explains the literature review of the study in detail.
Chapter three deals with methodology of the research that consisting of the research design, the
study population, the sampling techniques, sample size determination, method of data collection,
source of data, method of data analysis and operational definitions of unfamiliar words
throughout the paper. Fourth Chapter comprises data analysis and interpretation. In the last
chapter presents conclusion and recommendation of the study.
4
CHAPTER TWO
LITERATURE REVIEW
Introduction
Bartol and martin (1998) consider motivation a powerful tool that reinforces behavior and
triggers the tendency to continue, in other words, motivation is an internal drive to satisfy an un
satisfied need and to achieve a certain goal, it is also procedure that begins through physiological
or psychological need that stimulates a performance set by an objective. As compared to
financial resources, human resources have the capability to crate competitive advantages for their
organizations, generally speaking, employees performance depends on a large number of factors,
such as motivation, appraisals, job satisfaction, training and development and soon, but this
paper focus on only on employee motivation, as it has been shown to influence to significant
degree the organizational performance. As Kalimullah (2010) suggested, a motivate employee
has his/her efforts in that direction. In addition, these organizations are more successful, as their
employees continually look for way to improve their work, getting the employees to reach their
full potential at work under stressful conditions is a tough challenges, but this can be achieved by
motivating them. On other hand, Mary (1996) explaining organizational effectiveness as the
extent to which an organization fulfills its members, the goal model defines organizational
effectiveness referring to the extent to which an organization attains its objectives (Zammuto,
1982). While the system resources model defines it in terms of the bargain power of the
organization and its ability to exploit the environment when acquiring valuable resource (Yucht
man, 1987).
2.1. What is Motivation?
According to green berg and Baron (2003) the definition of motivation could be divided in to
three main parts. The first part looks at arousal that deals with the drive or energy behind
individual’s action, people turn to be guided by their interest in making a good impression on
others, doing interesting work and the direction their behavior takes. The last part deals with
maintain behavior clearly defining to meet their goals.
5
Motivation by definition refers to what activities, directs human behavior and how this behavior
is sustained to achieve a particular goal. Also it can be defined as the set of process that arouse,
direct and maintain human behavior towards attaining some goals (Jones, 1955).
2.2. Definition of Employee Motivation
Walker (1980) states that studies over the years have shown little relationship between measures
of job satisfaction and performance out puts. Highly satisfied workers may be poor performance,
where as highly dissatisfied workers may be good performance. Several variables influencing the
relationship between job satisfaction and job performance although no direct causal relationship
between these have been identified as yet. However, it appears that motivation might account for
much of the link between an employee’s job satisfaction and job performance. In this sense,
walker regarded it as meaningful to view motivation as major factors, which camp ball and
Pritchard (1976) defined as a liable for the determinants of the choice to initiate effort on a
certain task, the choice to expend a certain amount of effort, and the choice to resist in expending
effort over a period of time, motivation, therefore closes the satisfaction performance loop, and
has to do with a set of inter related factors that explain an individual’s behavior, holding constant
the variables controlled or influenced by management, as well as by individual skills, abilities
and knowledge (Campbll and Pritchard, 1976).
2.3. Theories of Motivation
Motivation research draws on a large number of theoretical perspectives, although some of these
appear to be less influential than when they were originally postulated, such as Maslow’s
hierarchy of needs theory (Wicker and Wieche, 1999), their contribution as foundation layers
and inspiration for subsequent theories are still evident and acknowledged.
2.3.1. Maslow’s Hierarchy Needs Theory
One of the most often quoted motivation theories is that of Abraham Maslow, which he
introduced in 1945 (Van Miekerk, 1987). The basic tenet of the theory is that people are
motivated by their quest to satisfy their needs, or deficiencies, which may be grouped in five
categories, and that these needs occur in a specific hierarchy, where lawyer order needs have to
be satisfied before those of a higher order nature (Gouws, 1995). Maslow (1998) asserted that
6
“gratification” of one basic need opens consciousness to domination by another Maslow’s need
hierarchy portrayed in figure 2.1).
Source: Vanniekerk(1987)
Figure 2. 1: Maslow hierarchy of need

Physiological needs are related to basic survival; e.g. Hunger or thirst, safety need do not only
apply to physical safety and security; but also to a person striving for personal security; such as
job, social support, whereas egotistical needs involve a person’s desire to be respected by others
and by him or herself, self actualization occurs at the pillar of the needs hierarchy, as it represent
of his a person’s striving towards the full development of his potential, which is initially never
completely attained (Gouws, 1995). According to Maslow (1968), people always pursue what
they do not yet have. Consequently, those needs that have already been satisfied on no longer
provide motivation for action (Schultz and Schultz, 1998).
Over time, little empirical evidence has been produced to support the idea of a needs hierarchy,
or the idea that as needs are satisfied, their importance diminish (Boron et al, 2002).
7
2.3.2. McGregor’s Theory X and Theory Y
Gouws (1995) noted that McGregor’s theory closely resembles that of Maslow, in that the
factors Mc Gregory believed act as motivators to people at work, are arranged and satisfied in a
similar hierarchy McGregor also placed physiological needs first followed by physical and social
needs, egotistical needs by sub categorized as self confidence, autonomy, achievement,
competence and knowledge and recognition, respect and appreciation a person enjoy, the
highest level of need is that of self fulfillment, which people attempt to satisfy through continued
Self-development and creativity.
Douglas Mc Gregory’s (1960) theory X and theory Y represent an extension of his ideas on
motivation to the direction and control of employee in the workplace. According to McGregor’s
Theory X, which articulates the traditional approach to motivation, people are not keen on work,
and controlled by punitive measures to perform effectively, the average persons is believed to
lack ambition, avoid responsibility and strive for security and financial compensation only. They
are egocentric,, and hot all mind full of organizational goals.
Theory y; in contrast reflects a more modern approach to motivation, in that most people are
seen as keen to discipline themselves in order to successfully complete the tasks allocated to
them. In addition, they seek responsibility, and are capable of creative problems solving,
McGregor regarded theory Y as more accurate and realistic portrayal of human behavior, since it
represents the integration of individual and organizational goals. McGregor did, however,
recognizes that the theory does not offer a complete expectation for employee motivation
(McGregor 1960).
2.3.3. Herzberg’s Two – Factors Theory
Fredric Herzberg’s well – known and controversial theory of motivation was postulated in 1954
and developed from his work to determine the attitude of workers towards their jobs (Grows,
1995). As such, it was originally intended to be a job satisfaction theory, but over time it was its
motivational aspects that attracted most attention (Baron et al, 2002).
Beach (1980) was of the opinion that theory constitutes more of a work motivation than general
human motivation theory. The basic assumption of Herzberg’s theory is that motivations initiates
from the job itself, and not from other external characteristics and that those factors leading to
8
job satisfaction (“motivates) are separate and distinct from those leading to job dissatisfaction
(hygiene) maintenance “factors) (Herzberg, 2966). The hygiene factors which may be equated
with Maslow’s lawyer order needs are placed along a continuum from a state of dissatisfaction,
to dissatisfaction.
These factors involve circumstance surrounding that task which do not lead to job satisfaction,
but prevent dissatisfaction, if maintained adequately. Examples of these maintenance factors
include the level of supervision, job status, work circumstance, service, conditions remuneration
and interpersonal relationship (Herzberg, 1966). Motivators, on the other hand, have a direct
positive effect on the work situation and lead to improved productivity. They may be equated
with Maslow higher order needs and are also placed along a continuum from a high motivated to
highly un motivated state aspects of the job itself, E.g. level of recognition, pleasure of
performance, increased responsibility, and opportunities for advancement and promotion, serve
as motivators (Herzberg, 1966).
2.3.4. McClelland’s Learned Need Theory
McClelland’s theory also referred to as the. Three needs theory (Gauws, 1995) or the,
achievement motivation, theory (Schulz and Schultz, 1998), was introduced in 1967, the theory
is based on the position that are not innate, but acquired through learning and experience
(McClelland, 1987). McClelland assigned a specific code to each of the three needs, which
include?
- The need for power (PWR) denotes need which to the controls others influence their
behavior and be responsible for them. Affiliation (AFF), which refers to desire to
establish and maintain satisfying relationship with other people.
- The need for achievement (ACH), viewed as behaviors directed towards competition with
standards of experience, although not highly instrument in focusing attention on the un
usual need of employees with a strong need to achieve (Beach, 1980).
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3.3.5. Equity theory of motivation
Equity theory was first introduced by Stacy Adams in 1965 (Hadebe, 2001), it is basic tent that
people are motivated to achieve a condition of equity (fairness in their dealings with other people
and with the organizations they work for (Adams, 1965).
People make judgment or comparing between their own inputs at work, e.g. their qualification,
experience and effort, and the outcomes they receive, e.g. pay and fringe benefits, states and
working conditions, they then assign weights to these inputs and out puts according to their
relevance and importance to themselves, the sum total products an output input ratio, which is
the key issue in terms of motivation, if a person’s output ratio is equal to that of another person,
equity exists a state of inequity leads to tension, which the individual tries to reduces by
changing one or more elements of the ratio, e.g. Increase or reduce his effort, perceived inequity
by the person is reinforce the basis for motivation (Baron et al, 2002).
2.3.6. Expectancy Theory of motivation
The original thinking behind what has come to be known as expectancy theory, or v rooms
expectancy-valence- instrumentality (VIE) theory (Beck, 1983), can be traced back to the
organization of Tolman and Levin in 1932 and 1938 respectively (Petri, 1996). V room was
however, the first scholar to Clabber on this thinking in motivational context in 1964 (Gouws,
1995), since its origins in the Psychological the arising of some 60 years ago, the expectancy
theory has been presented in many variations, common to all versions is the basic tent that
people base their behavior on their belief and expectations regarding future events namely those
maximally advantageous to them (Baron et al, 2002).
2.4. Who Motivate Employees?
While rewards may serve as incentives and those who best rewards may seek to use them as
motivators, the real motivators to act comes from within the individual, managers do exert a
significant amount of influence over their employees, but they do not have the power to force a
person to act they can work to provide various types of incentives in an effort to influence an
employee in any number of ways, such as by changing job description, rearranging work
schedules, improving working conditions, reconfiguring teams, and a host of other activities,
while they may have an impact on employee’s is level of motivation and willingness to act all is
10
said and done, it is the employees decision to take action or not. In discussing management and
motivation, it will be important to continually remember the roles of both managers and
employees in the process of motivation http://human_resources: about. Come.
2.5. Motivational Strategies
The literature provide an array of strategies for manager to use in seeking to help motivate
individuals some of these seem every behaviors, while others represent the “tried and true”
approaches to management still others represents innovations, no matter, they are worth
enumerating here.
- Expect the best: people live up to the expectation they and others have of them. Henry
ford said it best.” Whether you think you can or you think you can’t, your right: (Manion,
2005).
- Reward the desired behavior: make sure that reward are not given for undesirable
behaviors and be sure to use main different types of rewards to achieve the desired
outcomes (Manion, 2005).
- Create a ‘fun (focused, unpredictable and Novel) approach (Atchison, 2003). Suggests
using money for a variety of creative employee rewards such as giving gift certificates to
a shopping center in recognition of employees’ exceeding expected patient outcomes.
- Reward employees: in ways that enhance performance and motivate them don’t waste
money on traditional types of recognition. Though these are viewed as being nice, they
don’t motivate (Atchison, 2003), money is better spent on the true rewards for specific
types of performance and outcomes.
- Tailor rewards: Atchison (2003) steers managers away from standard type of rewards,
such as giving the obligators than receiving turns. Instead, he recommends finding more
creative ways to spend the organizations money and reward employees.
- Focus on revitalizing employees: research shows that when employees are working on
over loaded circuit’s motivation is diminished and productivity declines. This is
particularly true in health care organizations. Hallowell (2005) suggests that managers
can help to motivate employees by increasing them to eat right, exercise regularly take a
real “vacations” get organized, and slaw dawn.
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- Get sub ordinates to take responsibility for their own motivation this can be achieved by
managers taking steps to deal with problem employees, to understand employees’ needs
to determine what motivates their employees, to engage employee in the problem solving
difficult employee problem (Nicholson, 2003).
2.6. Importance of Motivation in Organization, Business, Management
Motivation is one of the important parts of management functions a manager become un

successful if he fails to motivate his subordinates, the most importance of motivations are:
- Lead to profitable operation motivation is an importance tool that leads the organization
in profitability. The development of self responsibility among the workers contributes for
the best utilization of available resource like materials, money machines and anthers.
- High level of productivity motivation contributes to develop working efficiency of
employees when employees are actually motivated they improve their working
efficiency. The development of working efficiency among workers leads to maximize
production and productivity; management can expand its business activities in large areas
for organizational profitability and growth.
- Best remedy for resistance to change: The change in the management system and
organizational structure is essential to adjust an organization and its business activity
according to changing environment. In some situational structure works. Specially, there
may create resistance to change. They think about their job security and stability, the
motivated workers have knowledge large about the outcome of change.
- Effective use of human resource: man power is the main active futures of production and
it’s responsible for the best utilization of organizational resource. Motivation is the main
instrument which created the willingness among works to do their in the best possible
way.
- Satisfaction of employees: The satisfaction of employees is essential for organizational
effectiveness. Motivation help satisfy employee and develop morality among them
employee with high moral become dedicated to the organization, they also perform their
job in the best manner
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- Basis of coordination: motivation is the basis of coordination among all members of the
organization motivated employee develop a better understanding among themselves, they
appreciate their mutual problems and resolve differences through mutual consent.
- Stability of work force: It is known that motivated and stable work force is potential of
the organization motivation directly or indirectly facilitates the stability of the work
force.
- Minimize supervision cost: motivated employees perform their work themselves, in other
words, the concept of sell responsibility in developed among them and they perform work
smoothly for such employee only guidance and timely suggestion is sufficient, therefore,
resource and close supervision is not required to such employees.
- Achievement of organization goals every organization is established to achieve definite
objectives, similarly, the main responsibility of the management is to focus on
organizational objective, motivated workers put their effort towards the attainment of
organization objective www.wisenepali.com.
2.7. What Challenges Managers Face in Motivating to Day’s WorkForce
according to Amrutdesai (2014) one of the main reasons of motivation being a challenging job is
due to the changing work force the employees become a part of their organization with various
need and expectation, different employees have different beliefs, attitude, values back grounds
and things, but all the organization are not aware of the diversity in their work force and thus are
not aware and clear about different ways of motivating their diverse work force, for manager it is
challenges to understand that different people are motivated in different ways to many
hierarchical levels actually could be a de-motivating factors. As such it is challenges for the
manager to keep the hierarchical levels to the minimum possible, poor systems and work over
load be de-motivating factors, a manager has to cope with the challenges of changing business
system, proper work load distribution and to keep the job varied so that boredom does not set in.
a manager must no assume that he/she is visible but must ensure that it is true, another challenges
could be how to involve and encourage staff to participate in the decision making, ensuring that
the staff is motivated and stay motivated at a time is an important part of running a business. An
involved and happy staff delivers motivating is important because it costs more to replace staff
than to keep them, staff likes to feel needed and respected and keeping them happy results in
13
their continuing to stay with the organization much longer http://www.managements today
guide. Come.
2.8. Factor Enhancing Employee Motivation
Employees went to earn reasonable salaries as money represent the most important incentive,
when speaking of its influential value (Sara et al, 2004). . Financial rewards have the capacity to
maintain and motivation individuals towards higher performance, especially workers from
production companies as individuals may use the money to satisfy their needs. Therefore, pay
has a significant impact in establishing employee’s diligence and commitment, being a key
motivator for employees, never the less, studies have shown that pay does not boost productivity
on the long term and money does not improve performance significantly.
(Whitley), 2002) moreover, focusing only on this aspect might deteriorate other non-financial
factors that have a positive influence on motivation, such as reward, social recognition and
performance feedbacks. Numeral researches have also pointed out that rewards leads to job
satisfaction, which in turn influence directive and positively the performance of employees,
moreover, rewards are one of the most efficient tools of management when trying to influence
individual or group behavior, as to improve organization’s effectiveness, the vast majority of
companies use pay, promotion, bonuses and other types of rewards to motivate employees and to
increase the performance. In order to use salary as motivators, managers have to develop, salary
structures, according to the importance of each job individual performance and special
allowances.
Employee can also be motivated through proper leadership is all about getting thing done the
right way. In order to achieve these goals, the leaders should gain the employees, trust and make
them follow him. Nevertheless, in order to make them trust him and complete their tasks
properly for the organizations the employees should be motivated. The leaders and the
employees help one another to attain high level of morality and motivation (Baldoni, 2005).
2.9. Herzberg's Motivation Hygiene Theory
Herzberg's Motivation Hygiene Theory Herzberg's motivation hygiene theory is often called the
two factor theory and focuses on those sources of motivation which are pertinent to the
14
accomplishment of work(Hall and Williams 1986, 6).Herzberg concluded that job satisfaction
and dissatisfaction were the products of two separate factors: motivating factors (satisfiers) and
hygiene factors (dissatisfies) respectively:
15
Satisfiers Dissatisfies
1. Achievement 1. Company Policy

2. Recognition 2. Supervision
3. Work itself 3. Working conditions
4. Growth 4. Interpersonal relations
5. Advancement 5.Salary
6. Responsibility 6. Status
7. Job security
8. Personal life
Source: (Herzberg, et al 1959).
16
CHAPTER THREE
RESEARCH METHODOLOGY
3.1. Research Design
The researcher used descriptive type of research, because it simply describes the state of affairs
as it exists at present and research has not control over the variables the researcher can only
report what happened or what is happening. In terms of participants’ accessibility with the
researcher, considering costs and time in to account, cross – sectional study was implemented.
That means the researcher contacted the respondents during data collection time only.
3.2. Target population
The target populations were 53 employees from commercial bank of Ethiopia, Arbaminch
branch. It was required to give appropriate data voluntarily either by filling the questionnaire or
by being interviewed during data gathering.
3.3. Sampling Technique
To collect the primary data through questionnaire a sample size was taken from all employees
who are currently working in the organization by using census method. The reason is total
population of the origination is too small. In this case to get the necessary data needed for the
research the researcher has just decided to take all 53 employees of the organization.
3.4. Types and source of data
The researcher used both primary and secondary types of data. Primary data were collected by
interviews and questionnaires from employees of commercial bank of Ethiopia in Arba Minch,
whereas secondary data were collected from different books that related with the subject.
3.5. Method of Data Collection
The data was collected by well-structured questionnaires which contained both open and close
ended questions and interview question were taken as part of data collection method.
17
3.6. Limitation of the study
While doing this research, the researcher faced some difficulties. The main factor that limited the
quality of the paper is the researcher’s experience and knowledge in order to conduct this
research since it was his/her first work. It was difficult to assess all the activities of the
organization but it was limited on the assessment of practice and problem of employees’
motivation which is the single variable that was assessed in a single particular time and this may
have an impact on this study. The researcher’s constraints of time and cost bound to take single
bank employees instead of including other bank branch workers. This may hinder the
researcher’s conclusion and major finding in generalizing in the name of ArbaMinch bank
employees concerning their motivation and the related problem existed. During data gathering
some respondents give less attention to the questionnaires and it made the researcher not to get
fully adequate data.
3.6. Data Analysis Methods
The researcher used frequency table and percentage to convert row data in suitable way for
analysis and interpretation data collected from the bank.
18
CHAPTER FOUR
DATA ANALYSIS AND INTERPRETATION
Introduction
This section present the results of questionnaires and interview that the researcher has been
collected from the employees and manager of commercial bank of Ethiopia in Arba Minch
branch. Here the researcher distributes questionnaires to 53 respondents to gather appropriate
data. But, six of them does not returned, because of the respondents care lessens to hold the
questionnaires in a safe place. Then the researcher collected the data and try to interoperate these
data by using frequency distribution, table and percentage to interpreter (elaborate) the result by
using hisidea.
Part I: Personal Information Analysis

Table 4. 1: Sex distribution of employees
Sex No Percentage
Male 32 68.085
Female 15 31.915
Total 47 100
Source: questionnaire 2016
The above table shows from the total target respondents of 47 employees 32(68.085%) of
employees are male and only 15(31.915%) of them were females. From the above result the
researcher can conclude that the majority of employees are male as compared to the female
employees in this bank.
Table 4. 2: marital status of employees
Marital status No Percentage
Single 23 48.94
Mired 17 36.17
Divorced 4 14.89
Widowed 0 0
Total 100 100
Source: Questionnaire 2016
19
From the above table the researcher understand that from 47 employees 23(48.94%) of
employees were single 17(36.17%) of employees were mired and 7(14.89%) were divorced these
result shows majority of employees in the bank were single or not mired.
Table 4. 3: Age distribution of employees
Age No Percentage
Less than 20 0 0
21-30 24 51.06
31-40 14 29.79
41-50 6 12.77
51-60 3 6.38
Above 60 0 0
Total 47 100
The above data shows 24 (51.06) of employees were be longs to 21-30 year 14(29.79%) of
employees were be longs to 31-40 year, 6(12. 77%) of employees were be longs to 41-50 and
3(6.38%) of employees were belong to 51-60 year. From the above result the researcher
understand that majority of employees of the bank were young employees. This shows
employees in the bank can provide fast and quick service for its customer and attract the
customer to the bank service by his good service and these help banks to achieve its goal and
objective effectively.
Table 4. 4: Educational back ground of respondents
Educational level No Percentage

Diploma 0 0
1st degree 44 93.62
2nd degree 3 6.38
and above 0 0
Total 47 100
20
The above data depicts that from 47 respondents 44 (93.62%) of employees have first degree and
3(6.38%) of employees have 2nd degrees. The majority of employees have 1st degree. These
implies that employees in these bank have no chance to upgrade its educational level in tosecond
degree and above because the bank not provide the chance to its employees to up graded their
educational level.
Table 4. 5: Work experience of employees
Service year No Percentage

0-3 10 21.29
3-6 18 38.29
6-9 16 34.29
Above 9 3 6.38
Total 47 100
As shown in the above table 18(38.29%) of respondents have served 3-6 year, 16 (34-29%) of
the respondents have served 6-9 year, 10 (27.29%) of respondents have served 0-3,16(34.29%)
of the respondents have served 6-9 year and 3(6.38%) of respondents have served above 9 year.
From the above result one can see that the majority of employees have served the bank more
than 3 years. This indicates that the majority of employees are experienced on their job and they
can move and work any place that they want with their experience.
Table 4. 6: Salary level of employees
Salary level No Percentage

<3000 4 8.51
3001-4000 18 38.29
4001-5000 17 36.17
5001-6000 4 8.51
Above 6000 4 8.51
Total 47 100
21
The above table depicts that 18(38.29%) of employees were paid 3001-4000 birr, 17(36.17%) of
employees were paid 4001-5000 birr, 4(8.51%) of employee were paid above 6000, 4(8.51%) of
employees were paid 5000-6000 birr and 4(8.51%) of employees were paid <3000 birr. From
these result the researcher understand that bank paid good salary for its employees and these
goods salary incite employees moral to do their job in good moral and these good salary attract
other un-employed people to the vacancy place, because employees are attracted to good salary
level.
Table 4. 7: Current position of employees
Position No Percentage
Top 5 10.64
Middle 8 17.02
Operating 34 72.34
Total 47 100
As show in the above table 34(72.34%) of employees have operating level position, 8(17.02%)
have middle level position and 5(10.64%) of employees have top level position. These result
shows majority of employees in the bank have operating level position in the bank job.
Part II Analysis related to the subject
Table 4. 8: Degree of motivation in the bank
Degree motivation No Percentage

Very high 4 8.51
High 5 10.64
Medium 15 31.915
Law 20 42.55
Very low 3 6.383
Total 47 100
Source: Questionnaire
22
As shown from the above table from 47 respondents 20(42.55%) respondents said there is low
degree motivation, 15(31.915%) of employees said there is medium degree of motivation,
5(10.64%) employees were said there is high degree of motivation, 4(8.51%) of employees were
said there is very high degree of motivation and 3(6.383%) of employees were said there is very
law degree of motivation in the bank. One can understand from the above data there is low
degree of motivation in these back as majority of employees said. These low degrees of
motivation for employees affect the bank and decreasing its customer because of unsatisfied
service these reduce its profitability. Because employees are more motivated and do their job in
good motivation if they get good motivation from their organization.
Table 4. 9: Amount of salary in compression with another institution
Degree of salary in comparison No Percentage

Not at all fair 11 23.40
Somewhat fair 15 31.91
Quite fair 7 14.89
Extremely fair 6 12.77
I don’t know 8 17.021
Total 47 100
This table depicts that the answer of banks employees about their payment compared to other
similar institution 15(31.91%) of employees said somewhat fair, 11(23.40%) of employees said
it not at all fair, 8(17.021%) of employees said.
I don’t know, 7(14.89%) said it is quite fair and 6(12.77%) of employees said it is extremely fair.
Majority of employees said it is somewhat fair form these result the researcher one can
understand that the institution should have revise its existing salary scale by comparing its salary
with other similar institution and adjust it as to meet ever changing business environments
because employees are motivated for better payment more than anything.
23
Table 4. 10: Essence of motivation to employees
Essence of motivation to employees No Percentage

It make me happy 13 27.66
If encourage me 21 44.68
It is essential for my life 11 23.40
Other 2 4.25
Total 47 100
The above table shows respondents feeling for the essence of motivation 21(44.68%) of
employees said if encourage me, 13(27.66%) of employees said it make me happy, 11(23.40%)
of respondents said it is essential for my life and 2(4.25%) of employees said a there and write
their feeling and interest for the essence of motivation they said it encourage my moral to do my
job and it incite me to provide quick service to my customer that served in the bank.
This result shows majority employees said they have good feeling and interest for essence of
motivation and the majority of employees said it encourage me to perform my job in good moral.
So the bank should try to motivate its employees by using different motivational factor to get
good performance and commitments of its employees on job and these make the bank more
profitable and competitive with its competitor in the bank industry.
Table 4. 11: The banks try to know the interest of its employees
Bank try know the inters of its employees No Percentage
Yes 20 42.55
No 27 57.45
Total 47 100
The above table shows from 47 respondents 27(57.45%) of employees said no (the bank not try
to know the interests of its employees) and 20(42.55%) of employees said yes (the bank try to
know the interests of its employees). These result shows the majority of employees answered the
24
bank not try to know the interest of its employees in the job. These create reduction of employees
moral to their job and employees become de- motivating to perform their job in good way and
commitment. So the banks try to know the interest of its employees on the job crate good
working environment and to be more profitable and competitive.
Table 4. 12: Interest of employees in staying the same position
Interest of employees in staying the same position No Percentage

Yes 13 27.66
No 34 72.34
Total 47 1000
The above data shows from 47 respondents 34(72.34%) of employees said no (they have no
interest to sating the same position) and 13(27.66%) of employees said yes (they have interest to
staying the same position of job). From the above data the researcher conclude that employees
are not interested in staying the same position for long parade of time as the majority of
employees said and employees are interested for promoting in to higher position in short parade
of time. So the bank should try to promote its employees periodically.
Table 4. 13: The way to up graded to higher position
Way of up graded to higher position No Percentage

By involving in managerial activity 20 58.82
By training and development work shop 11 32.35
By up grading your educational level 3 8.82
Other 0 0
Total 34 100
The above table depicts that 20(58.82%) of employees said by involving in managerial activity,
11(32.35%) of employees said by training and development work shop, 3(8.82%) of employees
said that by up grading your educational level. So the researcher one can understand from the
above data these banks try to up graded its employees in to higher position by involving its
25
employees in managerial activity. The manager delegated employees in different job and
promoting employees that have long service in the bank to higher position than current level.
These help employees to get experience in different work position and get more salary than low
level employees. So the bank should be up graded its employees by using different mechanism
these helps the bank its employees are trained and served the organization in good moral for long
parade of time.
Table 4. 14: Importance of up grading work position to motivate employees in their job
Importance of up grading work position to motivate employees in their job No Percentage

It increase my job satisfaction 5 15.63
Helps to provide quick service for customer 7 21.87
Encourage my capacity to achieve goal of the bank 20 62.5
Other 0 0
Total 32 100
This table depicts that 20(62.5%) of respondents said it increase my capacity to achieve goal of
the bank, 7(21.87%) of respondents said it helps to provide quick service for customer and
5(15.63%) of respondents said it increase my job satisfaction. So the researcher understand from
the above result importance of up grading the position of its employees helps the bank to get
motivated and happy employees that will achieve goals and objective of the organization.
Table 4. 15: The management encouragement to it employees
The management encouragement to its employees No Percentage

Yes 15 31.915
No 32 68.085
Total 47 1000
The above table shows that 32(68.085%) of employees were said no (the manager not
encouragement to its employees) and 15(31.915%) of employees said yes (the manager
encourage its employees). The majority of employees said the manager no encourage its
26
employees in the job. So the researcher concludes from the above result the manager of this bank
not try to encourage its employees on the job. These crate a problem on the banks work
environments if it is not encourage its employees on the job so manager should try encourage its
employees on the job to be more effective.
Table 4. 16: How the manager encourage its employees in better way
How the manager encourage employees in better way No Percentage

By having good approach to subordinator 3 20
By giving advice to employees 6 40
By considering your idea 2 13.33
By increasing moral of employees 4 26.67
Total 15 100
The above table shows that 6(70%) of employees said by giving advice to employees, 4(26.67%)
of employees said by increasing moral employees, 3(20%) of employees said by having good
approach to sub ordinate and 2(13.33%) of employees said by considering your idea. So the
researcher understand from the above result manager of these bank encourage its employees in
better way by giving advice to employees when they needed advice from the manager to
understand things that are not understand and when they make mistake between their job
manager give advice to its employees and encourage in better way.
Table 4. 17: The way top management motivated its employees
The way top management motivated its employees No Percentage

By financial rewards 25 53.19
By rearranging work schedules 10 21.28
By improving working condition 7 14.89
By recon figuring teams 5 10.64
Total 47 100
27
The above table shows from 47 respondents 25(53.19%) of employees answered by financial
rewards, 10(21.28%) of employees said by rearranging work schedules, 7(14.89%) of employees
said by improving working condition and 5(10.64%) of employees said by recon figuring teams.
So the researcher concludes from the above results the manager of this bank motivates
employees by using different financial rewards than non-financial rewards to its employees. The
the manager use financial rewards that motivate employees more like bounce, allowance, health
insurance, life insurance and soon.
Table 4. 18: Factor enhance employees motivation
Factor enhance employee motivation No Percentage

Job satisfactioSn 1 2.13
Promotion 4 8.51
Recognition 3 6.38
Good salary 8 17.02
Management style 0 0
Good working condition 6 12.77
Satisfying goals 5 10.64
Working hours 0 0
All 20 42.55
Total 47 100
From the respondents 20(42.55%) side all, 8(17.02%) said good salary, 6(12.77%) said good
working condition, 5(10.64%) of employees said satisfying goals, 4(8.52%) of employees said
promotion, 3(6.38%) of employees said recognition and 1(2.13%) of employees said job
satisfaction. So the researcher understand from the above result all factors that listed in the above
table motivate and enhance employees motivation on their job as the majority of employees
answered. So the manager of these bank try to provide these all factory for its employees to get
its employees capacity and commitment to achieve its organization goal and objective by
motivating its employees by using these all motivational factor.
28
Table 4. 19: Factor De-motivating employees in the job
De-motivating factors No Percentage

Securing 5 10.64
Interpersonal relation 8 17.02
Salary 6 12.77
Fringe benefits 12 25.53
Working condition 16 34.04
Other 0 0
Total 47 100
The above table depicts that 16(34.04%) of employees said working condition is de-motivating
factors, 12(25.53%) of employees said fringe benefits, 8(17.02%) of employees said
interpersonal relation, 6(12.77%) of employees said salary and 5(10.64%) of employees said
salary is de-motivating factor them. So employees are de-motivating for working condition as the
majority of employees said.
Table 4. 20: Things employees like in their work place
Things employees like in their work place No Percentage

People and work environment 4 8.5
Challenging and existing work 3 6.38
Autonomy and creative freedom with job 2 4.26
Company image 1 2.13
Flexibly 0 0
Salary 16 34.04
Management style 8 17.02
Training and development 7 14.89
All 6 12.77
Total 47 100
29
The above table shows that 16(34.04%) of employee said salary 8(17.02%) said style of
management, 7(14.89%) of employees said training and development, 6(12.77%) of employees
said all factors, 4(8.5%) said people and work environment, 3(6.38%) said challenging and
existing work, 2(4.26%) said autonomy and creative freedom with job and 1(2.13%) of
employees said company image. All factors that listed in the above table are things that
employee like in their work place. But the major one is salary as the majority of employees are
answered for these questions. So the banks try to increase salary that paid for its employeesto
motivate employees and more effective
Table 4. 21: Management provide for its employees with adequate benefit aside from
compensation
Management provide for its employees with adequate benefits No Percentage

Yes 47 100
No 0 0
Total 47 100
The above table shows that all respondents answered yes for these question because the bank
provide for its employees with adequate benefits aside from compensation (e.g.Health insurance,
life insurance, sick leave, annual leave, maternity leave and etc) these crate good working
condition in the bank and increase morale of employees to achieve its job in good performance to
increase the organization objective.
Table 4. 22: Feeling of employees for their compensation
What is feelings of employees for their compensation No Percentage

Yes 15 31.915
No 32 68.085
Total 47 100
These table shows 32(68.085%) of employees said Yes and 15(31.915%) of employees said No.
So from the above result the researcher one can understand employees in these bank they feel not
30
compensated well for their service. So the bank tries to improve its compensation to make its
employees more motivated on job.
Table 4. 23: Influence of incentive on motivation
What is influence of incentive No Percentage

on motivation
Strongly agree 20 42.55
Agree 17 36.17
Neutral 10 21.28
Disagree 0 0
Strongly disagree 0 0
Total 47 100
The above table shows that 20(42.55%) of employees said strongly agree 17(36.17%) of
employees said agree, 10(27.28%) of employees said neutral. So as the majority of respondents
agreed that, incentive that provide form the bank have high influence on the motivation level of
employees to achieve their job in good moral and motivation. So the bank tries to provide
different types of incentive for its employees in different period of time to be more effective in
its service.
PART III: Analysis for open end question that provide for employees of the bank.
Employees are written their feeling in different way for the question provide for them, question
related with motivation in the bank. The researcher arranged their answer and listed as below.
The first question raised was as you are employees of these banks what do you think is the
importance of motivating employees on the job for the organization? The responses of the
respondents for these questions were:
 Motivating employees on their job helps to increase organizational profitability,

providing better service for customers or satisfying customer of the bank.
 It makes employees active and good in their work position.
 It helps employees to increase their moral in achieving of its job
31
 It is important to crate good working condition and management style for employees.
 It increase organizational performance and employees are motivated to increase their
capacity to words organizational objective.
 It is important to do my job effectively and efficiently.
 It is important to me to achieve my job in good performance that crate values for the
company.
The second question was related with what type of incentive do you believe motivate you most?
Majority of the respondents replied;
 Financial and non financial incentive

 Promotion
 Recognition
 Financial incentive is the most motivating incentive for me for instance bonus has power
to motivate me because it is additional payment with my salary.
 Salary, working condition, personal relation and air condition is motivate employees
 Salary increment
 Allowance increment
 Fringe benefits
 Financial incentive that provide in the form of life insurance and health insurance.
 Rewords
 Physiological motivation that provide by the bank manager.
32
PART IV Analysis for interview question
These question and answer is face to face interview between the researcher and manager of
commercial bank of Ethiopia in ArbaMinch branch in structured questions that prepared by the
researcher before interview to get appropriate information from the bank about practice and
problem of employee motivation.
The first question raised for the manager was concerned, how employees are motivated in your
organization.
As the manager said employees in these organization motivated through different motivational
system to increase employee’s moral and increase their capacity to provide quick service for the
customer and attract new customers to the bank service. For example banks use bounce,
allowance, life insurance, health insurance and rewards for active employees to motivate
employees in the job.
How your company benefited from motivating its employees on the job
As the manager said for these question motivating employees in the job helps both the
employees and the bank. Employees when they get motivation from their manager they
committed to perform the goal and objective of the bank in good moral and to provide quick
service for the banks customer and these increase the profitability of the organization from year
to year by attracting banks customer and help the banks more competitive with other banks. In
the other way motivating employees have the following benefits for the banks.
 Best remedy for resistance

 Basis of coordination
 Effective use of human resource
 satisfaction of employees and customer
 minimizing supervision cost
Is there any problem resulted from lack of motivating your employees?
The manager said yes: There is a problem when there is absence of motivation employees in the
job. because if employees are not motivated in their work they have low morale and motivation
33
to performed their job and provide quick service for the customer is become law because of the
absence of motivation from the company manager, these crate big problem on the company
image, work environment, profitability, objective and goal of the bank to achieve by providing
different systematical bank service for its customers. So motivating employees on the job have
good results on organizations profitability and competition anther banks in the market.
What are the major problems that your organization face while motivating your employees?
The manager said as you know managers are top level position in the company that direct and
control all activity that perform in the company. So there are problems and challenges when
motivating human resource of the company these problems are employees become part of their
organization with various need and expectation and things, but all the organization are not a were
of the diversity in the work force and thus are not a were about different way of motivating
diverse work force, for the manager it is challenging to understand that different people are
motivated in different way. So such above things are major problems for the manager while
motivating its employees in the bank.
Source: interview 2016
34
CHAPER FIVE
SUMMURY, CONCLUSION AND RECOMMENDATION
5.1. Summary
All the data analysis and the detailed discussions made in the chapter four of this study are
means to lead the researcher to possible summary, conclusion and recommendation. Thus
based on the finings presented in chapter four, the following summary was drowning.
 The majority of employees in the bank feel the degree of motivation to increase the
morale of employees in the job is low.
 As majority of respondents answered the salary scale of the bank somewhat fire whit
compared to other similar institution.
 The majority of employees in the bank believe in the essence of motivation and it
encourages doing their job in good morale and commitment to achieve the organization
objective.
 The majority of employees said bank not try to know the interest of its employees and not
identify what thing employee like and what thing they not like in the job to achieve their
job in good motivation.
 The majority of employees in the bank have no interest in staying the same position for
long period of time.
 The majority of employees indicate that up graded to higher position in the bank is based
on involvement in managerial activity, the bank not provide the chance for education that
helps employees to up graded their position by using their educational level and capacity
to achieve the objective of the organization
 As the majority of respondents fill that there is lack of encouragement from the manager
for its employees in the job.
 As the majority of respondents said importance of up grading work positions of
employees help to increase capacity of employees to achieve the goal of the bank.
 The manager use only financial motivate factors like allowance, bonus, life insurance,
health insurance and so on to motivate it’s employee on the job.
35
 Employees’ motivation enhanced for motivational factors like promotion, recognition,
job satisfaction, good salary, management style, good working condition, and satisfying
goal, and working hour in the organization
 Majority of employees de-motivated for working condition in the organization.
5.2. Conclusion
The main objective of this study was to assess practice and problem of employee motivation on
basis of the summary of findings the following major conclusions was made.
 In these bank degree of motivation in the job is low these low degree of motivation crate
unattractive work environment in the bank employees to achieve their job effectively to
meet goal and objective of the bank.
 As the result indicate salary level of the bank with compared to another company it is
somewhat fire employees are more motivated and achieve their job in good morale if they
paid good salary.
 Employees in the bank believe in the essence of motivation and it encourages them to do
their job in good morale and commitment to achieve the organization objective.
Motivated employees provide good service to the customers and committed to perform
their job in good manner.
 As result shows bank not try to know the interest of its employees and not identify what
thing employees like and what thing they not like in the job to achieve their job in good
motivation.
 Employees in the bank have no interest in staying the same position for long period of
time they are interested to promote in to higher position in short parade of time.
 Employees of the bank indicate that up graded to higher position in the bank is based on
involvement in managerial activity, the bank not provide the chance for education that
helps employees to up graded their position by using their educational level and capacity
to achieve the objective of the organization.
 Respondents fill that there is lack of encouragement from the manager for its employees
in the job.
 As respondents said importance of up grading work positions of employees help to
increase capacity of employees to achieve the goal of the bank.
36
 As results of respondent shows employees de-motivated for working condition in the
organization.
5.3. Recommendation
Based on the findings and conclusions of the study the following recommendation was
forwarded by the researcher.
The trend in the business environment is changing customer handling now becoming a
competitive advantage be it service organization or manufacturing organization must be
customer oriented. In order to have customer oriented employees, employees must be satisfied,
unless management of the organization exerts efforts to satisfy its employees, the effect will
reflect on the customer. Dissatisfied employee cannot do anything that will satisfy costumer’s
requirements. In another words, dissatisfied employees means dissatisfied customer.
Because of free economic system of our country, many new private institutions are coming to the
industry. As result, the bank is facing fierce competition from newly established private
institution. So it is a good time for the bank to assess it strength and weakness in order to tackle
the competition. Therefore, the following recommendations are forwarded which are believed to
alleviate problems associated with employee motivation.
 The bank should improve its motivational degree to employees of the bank by using
different motivational factors such as increasing salary, crating good working
environment, promoting employees to higher position and by having good manager and
employee relation.
 CBE should revise its salary scale so as to make it competitive with other similar
institutions. Beside the corresponding benefits package should be revised to achieve their
job effectively.
 Researcher recommends the bank try to know the interest of its employees in the job to
increase the moral and performance of its employees to achieve their job effectively.
 Upgrade its employee position in the short period of time because majority of the
employees in the bank are not interested by staying the same position for long period of
time.
37
 CBE should improve the way that it upgrades its employees by providing chance of
education to get more knowledgeable and competitive employees with the change in the
business environment that helps the organization to achieve its goal. The manager should
try to improve the way that it motivates the employees of the bank rather than use only
financial motivation factors it is better to use both financial and non financial
motivational factors because employees are not motivated for financial motivational
factors only. Non financial motivational factors like good working environment,
interpersonal relation, management style, working hour, job satisfaction, up grading work
position are also motivate employees to achieve its objective in good morale.
38
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APPENDIX
Arba Minch University
College of Business and Economics
Department of Management
Questionnaire filled by employees of CBE
Dear respondents, I am conducting a research on the assessment of practice and problem of

employee motivation (In case of commercial bank of Ethiopia (CBE) Arba Minch Brach) for the
purpose of partial fulfillment of award of Bachelor of Art (BA) degree in management. So you
are kindly requested to give accurate and relevant information which is the most valuable input
for the success of my study. Therefore the researcher hopes that you will answer questions
frankly and your response will be kept confidential and will be used for academic purpose only.
Thank you in advance for your cooperation!!

Instruction
- No need of writing your name

- Put “√” mark inside the box questions constructed with close-ended questions.
- Write your own opinions or for questions constructed with open-ended questions.
Part I: Personal Information of employees
1. Sex: Male Female

2. Age: Below 20 20-30 31-40 41-50 51-60 Above 60
3. Educational status: Diploma First degree 2nd Degree PhD and above
4. Service year: 0-3 3-6 6-9 Above 9
5. Maternal status: Single Married Divorces Widowed
6. Salary in birr: Below 3000 3000-4000 4001-5000 5001-6000 Above 6000
7. What is your current level of position in the organization?
Top Middle Operating
Part II: Question related to the subject
1. What is your degree of motivation in your organization?

Very high High Medium Low Very low
2. To what degree is your salary fair compared to similar institution?
Not at all fair Somewhat fair Quite fair
Extremely fair I don’t know
3. What do you think is the essence of incentive to you?
It makes me happy It encourage me It is essential for my life
Other -----------------------------------------------------------------------------------------
4. Does the bank try to know the interest of employees?
Yes No
5. Do you enjoy staying in the same position?
Yes No
6. If your answer is “No” for question number 5 above how to be promoted or up graded?
By upgrading your educational level By involving in managerial activity

By giving training and development workshop
Other ----------------------------------------------------------------------
7. What is important of upgrading work position?
Increase my job satisfaction Increase my capacity to achieve the goal of bank
Helps to provide quick service for customer

Other ----------------------------------------------------------------------
8. Do your manager encourage you personally at your work?
Yes No
9. If your answer is “Yes” for above question number 9, how he/she would it better to do?
By having good approach to subordinator

By considering your idea
By give advice to employees By increasing moral of its employees
10. How do you motivated by the top management?
By financial rewards By Improving working condition
By rearranging work schedules Reconfiguring teams
11. What factors enhance your level of motivation to work? Please rank the factors that motivate
you more from the following factors?
A. Job satisfaction
A. Promotion
B. Recognition
C. Good salary
D. Management style
E. Good working condition
F. Satisfying goals
G. Working hours
H. All
12. Consequently what factors de-motivate you (hygiene factors) in doing your job?
Security Salary Fringe benefits Working condition
Inter personal relations Other ------------------------------------

13. As you are employees of these bank what do you think is the importance of motivating
employees on the job for the organization? Write your feeling
----------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
14. What are the things you like best in your workplace?
People and work environment Style of management
Challenging and exciting job Flexibility Salary
Autonomy and creative freedom with job Training and development
Company image All
15. Does the management provide its employees with adequate benefits aside from compensation
(e.g. health insurance, life insurance, sick leave, annual leave, maternity leave etc..)
Yes No
16. Do you feel well compensated for your services
Yes No
17. Can incentive influence your motivation and performance at work level?
strongly agree Agree Neutral Disagree Strongly disagree
18. What type of incentives do you believe motivate you the most?
----------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
Interview question
1. How employees are motivated in your organization?

2. How your company is benefited from motivating the employees?
3. Is there any problem resulted from lack of motivating your employee?
4. What are the major problems that your organization face while motivating its employees?

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ASSESSMENT OF PRACTICE AND PROBLEM OF EMPLOYEE

MOTIVATION (IN CASE OF COMMERCIAL BANK OF ETHIOPIA

A RESEARCH SUBMITTED TO DEPARTMENT OF MANAGEMENT IN

ADVISOR – AWEL BEKER( MBA)

ARBA MINCH UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

Wubiye Tsegaye Signature__________ Date: ________

Name of advisor_________ Signature_______ Date: ________

1. Examiners______________ Signature_________ Date________

2. Examiners______________ Signature_________ Date________

Advisor: ----------------- Signature: ----------------

Approved By: ----------------- Signature: -----------------

Approved By: ------------------- Signature: -------------------

Table 4. 1: Sex distribution of employees...................................................................................................18

1.2. Statement of the problem

- What is degree of motivation in the study organization?

1.3 Research Questions

This study attempt to address the following basic research questions:

1. What is the degree of employee motivation in the bank under study?

1.4 Objective of the Study

1.4.1 General Objective

1.4.2 Specific objectives

The study consisted of the following specific objectives:

- To identify the degree of motivation in the bank under study

1.6 Scope of the Study

1.7 Organization of the Paper

2.1. What is Motivation?

2.2. Definition of Employee Motivation

2.3. Theories of Motivation

2.3.1. Maslow’s Hierarchy Needs Theory

Figure 2. 1: Maslow hierarchy of need

2.3.3. Herzberg’s Two – Factors Theory

2.3.4. McClelland’s Learned Need Theory

2.3.6. Expectancy Theory of motivation

2.4. Who Motivate Employees?

2.5. Motivational Strategies

2.6. Importance of Motivation in Organization, Business, Management

Motivation is one of the important parts of management functions a manager become un

2.7. What Challenges Managers Face in Motivating to Day’s WorkForce

2.8. Factor Enhancing Employee Motivation

2.9. Herzberg's Motivation Hygiene Theory

1. Achievement 1. Company Policy

Source: (Herzberg, et al 1959).

3.2. Target population

3.3. Sampling Technique

3.4. Types and source of data

3.5. Method of Data Collection

3.6. Data Analysis Methods

Part I: Personal Information Analysis

Table 4. 3: Age distribution of employees

Table 4. 4: Educational back ground of respondents

Educational level No Percentage

Table 4. 5: Work experience of employees

Service year No Percentage

Table 4. 6: Salary level of employees

Salary level No Percentage

Table 4. 7: Current position of employees

Part II Analysis related to the subject

Table 4. 8: Degree of motivation in the bank

Wubiye Tsegaye Signature__ Date:

Name of advisor_____ Signature_ Date: ______

1. Examiners__________ Signature_ Date____

2. Examiners__________ Signature_ Date____