THE EFFECT OF MOTIVATIONAL FACTORS ON
EMPLOYEES PERFORMANCE: THE CASE OF
ABAY BANK S.C AT HEAD OFFICE
BEKALU SNAMAW
December, 2021
CPU College, Ethiopia
The House of Academic Excellence!
Outline
Introduction
• Background of the study
• Statement of the Problem
• Research Questions/ Hypothesis of the study
• Objectives of the study
• Conceptual framework of the study
Methodology of the study
• Research Design and Approach
• Sampling Design
• Data Sources and Method of Collection
• Method of Data Analysis
Results and Discussion
Summary ,Conclusions and Recommendations
Background Of The Study
Robbins and Judge (2018), stated that motivational factors is the force that energizes, direct
and consistently maintain an individual’s effort towards the accomplishment of
organizational goal.
Employee performance signifies individuals work achievement after exerting required effort
on the job which is associated through getting a meaningful work(Hellriege,2010)
Currently Employee Performance is the key focus of any organization in gaining competitive
advantage; hence, employee performance is the best tool for achieving it.
Abay Bank is one of private owned financial institution where employees performance is an
important issue that determines towards such a superior performance .
Statement of the Problem
In Ethiopian context researchers like Fisseha Zemene (2013), Mesfin w/Selassie (2013), and Tadele
Tibebu (2020), conducted a research on the effect of motivational factors on employee performance in
this research those undertake motivational factors like promotion, training ,working condition
engagement, organizational commitment are significant motivational factors of employee performance.
However, the earlier studies conducted in the area researchers unable to include the most motivational
factors such as: reward & recognition, employee autonomy, Payment, and benefit in this research the
researcher has been analyze the effect of motivational factors in combination and up to the researcher’s
consideration little research was undertaken regarding the effect motivational factors on employee’s
performance in Abay Bank S.C.
In spite of it’s increasing the benefit of motivational factors for enhanced employee performance, it didn’t
get any considerable attention from the side of management rather than conducting a survey quarterly &
annually.
In this regard, the researcher was interested to include those factors and to analyze it for the case under
consideration.
Hypothesis of the Study
Ho1: Payment has no significant effect on employee performance.
Ho2: Reward and Recognition has no significant effect on EP.
Ho3: Benefit has no significant effect on employee performance.
Ho4: Employee autonomy has no significant effect on EP.
Ho5: Working condition has no significant effect on EP.
Ho6: Promotion has no significant effect on EP.
Objectives of the Study
Main objective - To Examine the effect motivational factors on EP.
Specific objectives :
To investigate the effect of benefit on EP.
To study the effect of rewards and recognition in predicting EP.
To investigate the effect of promotion in predicting Ep.
To determine the effect of employee autonomy in predicting EP.
To examine the effect of working condition in predicting EP.
To analyze the effect of payment in predicting EP.
Conceptual Framework of the Study
Based on the overall review of related literatures and the theoretical framework, the
following conceptual model in which this specific study is governed was developed.
Independent variable Dependent variable
Promotion
Working condition
Benefit
Employee performance
Employee autonomy
Recognition & reward
payment
Methodology of the Study
Research Approach Quantitative & qualitative(mixed) Approach
Descriptive
Research Design
Explanatory
Target Population Employee’s of Abay Bank S.C, at Head Office.
Sample Size From The Total Population of 325 the researcher takes 179
Sampling Technique Stratified Random Sampling Technique
Primary Data Sources
Data Sources
Secondary Data Sources
Five points Likert-scale questionnaires( close ended)
Method of Data
Collection
Open ended questionnaires.
Method of Data Analysis Descriptive Analytic Statistics
(Using SPSS v20) Inferential Analytic Statistics
Results and Discussion
(Demographic Background of the Respondents)
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Results and Discussion (Contd)
(Respondents' Agreement Level on payment item)
51.3%
45.6%
55.7%
15.8% 34.2% 32.9%
40.5%
8.2% 7.6%
31.0%
3.8% 19.0% 3.2%
33.5%
0.323
7.6% 1.9% 0.063 0.0%
6.3% 0.076 8.2%
12.7%
Strongly Disagree Disagree Neutral Agree Strongly Agree
Results and Discussion (Contd)
(Respondents' Agreement Level on benefit item)
27.80% 39.20%
36.70%
50.00%
37.20%
28.8%
19.60% 13.3%
23.40%18.4% 25.9%
31.6%
10.1%
19.60% 5.1% 7.6%
32.8% 33.50% 20.9%
19.00%
3.8% 1.3%
2.5% 3.8%
10.8%
Strongly Disagree Disagree Neutral Agree Strongly Agree
Results and Discussion (Contd)
(Respondents' Agreement Level on promotion )
32.9%
42.4%
18.4% 36%
22.8%
20.3% 29.7%
36.7%
26.6%
18.4%
8.2%
17% 23.4% 29.1% 5.7%18.4%
27% 22%
13% 12.7% 3.8%
24.1%
1.9% 3.2%
7.0%
Strongly Disagree Disagree Neutral Agree Strongly Agree
Results and Discussion (Contd)
(Respondents' Agreement Level on working condition)
60.8%
49.4%
35.4%
36.1%
31.6%
15.8% 30.4% 31.6%
36.7%
20.9%
13.9% 8.2%
27.8% 10.8%5.7% 10.1%
8.9%
4.5% 1.9%
16.5%
5.1% 17.1% 10.8%
2.5% 7.6%
My working hours is The office layout is I get the opportunity to Basic resources are I am satisfied with the way
reasonable convenient to do my mix with my colleagues available for my work. my co workers get along
job. and to communicate on with each other
aspects of our work
Strongly Disagree Disagree Neutral Agree Strongly Agree
Results and Discussion (Contd)
(Respondents' Agreement Level on Re & Rec)
46.8%
48.6%
23.4%
31.0%
22.8%
31.0%
17.1% 18.4%
25.3%
12.0%
16.5% 6.3%
5.7%
8.9% 14.6%
8.9% 23.4% 19.6%
17.1% 4.4%
Strongly Disagree Disagree Neutral Agree Strongly Agree
Results and Discussion (Contd)
(Respondents' Agreement Level on Employees Autonomy
Attributes)
44.3%
30.4%
29.1%
33.5%
23.4% 17.1%
26.6% 22.2% 25.9% 25.3%
18.4%
12.7% 14.6%
8.7% 12.7%
12.0%
10.8%
19.6% 5.7%
7.0%
I have the authority to cor- I am encouraged to handle I have control over how I I am able to control the
rect daily problem when daily problems by myself. solve daily problems social contact with others
they occur
Strongly Disagree Disagree Neutral Agree Strongly Agree
Conclusion (contd)
(Multi co linearity statistics )
multi co linearity
Co linearity Statistics
Tolerance VIF
(Constant) 0.474 2.109
Payment 0.514 1.947
Benefit 0.415 2.412
Promotion 0.339 2.954
Working condition 0.318 3.14
Recognition & reward 0.584 1.711
Employees autonomy 0.552 1.813
Conclusion
(Correlation analysis)
Payment Benefit promotion working reward and employee employee
condition recognition autonomy performance
Pearson
Payment 1 .790** .824** .826** .816** .785** .620**
Correlation
Pearson
Benefit .790** 1 .816** .886** .911** .950** .846**
Correlation
Pearson
Promotion .824** .816** 1 .710** .790** .809** .651**
Correlation
Pearson
working condition .826** .886** .710** 1 .941** .881** .840**
Correlation
reward and Pearson
.816** .911** .790** .941** 1 .922** .868**
recognition Correlation
Pearson
employee autonomy .785** .950** .809** .881** .922** 1 .845**
Correlation
employee Pearson
.620** .846** .651** .840** .868** .845** 1
performance Correlation
**. Correlation is significant at the 0.01 level (2-tailed).
Conclusion (Contd)
(Multiple Regression)
Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .903a .815 .808 .516
a. Predictors: (Constant), employee autonomy, promotion, working condition, Payment, benefit, reward and recognition
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression
6 29.473 110.894 .000b
176.837
Residual 151
.266
40.132
Total 216.968 157
a. Dependent Variable: Employee performance
b. Predictors: (Constant), employee autonomy, promotion, working condition, Payment, benefit, reward and recognition
Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta T Sig.
1 (Constant) .596 .119 5.002 .000
Payment -.296 .062 -.378 -4.784 .000
Benefit .289 .126 .285 2.294 .023
Promotion .011 .069 .012 .155 .877
working condition .320 .128 .308 2.496 .014
reward and recognition .494 .133 .493 3.710 .000
employee autonomy .129 .121 .135 1.068 .287
Conclusion (Contd)
(Hypothesis testing)
Hypothesis Result
Ho1: Payment has no significant effect on employee performance. B = -.378 p < 0.05
Ho1: Rejected
H1: Payment has significant effect on employee performance. H1: Accepted
Ho2: Benefit has no significant effect on employee performance. B = .285 p < 0.05
Ho2: Rejected
H2: Benefit has significant effect on employee performance. H2: Accepted
Ho3: Promotion has no significant effect on employee performance. B = .012 p > 0.05
Ho3:Accepted
H3: Promotion has significant effect on employee performance. H3: Rejected
Ho4: working condition has no significant effect on employee performance. B = .308 p < 0.05
Ho4: Rejected
H4: working condition has significant effect on employee performance. H4: Accepted
Ho5: reward and recognition has no significant effect employee performance. B = .493 p < 0.05
Ho5: Rejected
H5: reward and recognition has significant effect employee performance. H5: Accepted
Ho6: employee autonomy has no significant effect employee performance. B = .135 p > 0.05
Ho6: Accepted
H6: employee autonomy has significant effect employee performance. H6: Rejected
CONCLUSION
Based on the regression analysis we can conclude:
Payment, benefit, working condition and reward & recognition are
significantly affect employee’s performance, respectively.
However, promotion and employee autonomy have no significance
effect in altering Employee performance.
Recommendation
The management of the bank should take in to consideration that employee's performance
can be alter through provision of adequate autonomy and challenging assignments.
Board of directors & managers of the Bank should design different good practices of other
organizations to motivate their employees.
Labor union of Abay Bank should struggle for the rights of the employees to incorporate
important benefit packages.
The bank should develop healthy working condition to supports employees relationship
balance between work and personal life.
The board of directors should redesign appropriate payment and benefit packages to motivate
their employees.
The bank should monitor employees' performance and create an environment that fosters
their employees' performance.
Managers should incorporate employee benefit packages in their performance management
system.
Future Research Implications
As per the result acquired from the regression, , value shows that in
this study the selected variables explain the Dependent Variable By
81.5%. Which indicates the remaining 18.5% can be explained by
other unexplained factors, which, I suggest for future researchers to
expand the scope to cover unaddressed variables.
This research would be helpful any one who is interested to study
factors that affect employees performance, in bank industry or any
other organization.
Thank You
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