THE IMPACT OF EXTRINSIC MOTIVATION ON EMPLOYEE PERFORMANCE THE CASE OF DEVELOPMENT BANK OF ETHIOPIA

Abstract

The main objective of the study was to investigate the impact of extrinsic motivation on employee performance. The research conducted at DBE. To gather the data, primary and secondary methods utilized,Questionnaire, related literature and supporting documents from different sources used. From the nature of the Development Bank of Ethiopia, stratified sampling technique is appropriate to conduct this study and the same used to collect a primary data. The analysis of the primary data and secondary information conducted usingdescriptive analysis such as frequencies, percentages and graphs employed for the analysis of the research questions the relation between variables conducted with Correlation analysis and linear regression.In this study, DBE employee performance is determined by salary and benefit, working conditions, company policy, interpersonal relationship and administration & supervision. The descriptive analysis have revealed that, the current employees are satisfied with the current salary and benefit and not satisfied with the current performance evaluation system of the bank, their immediate supervisors supervision and their relation with leader. The respondents also do not feel satisfaction in the company policy and the administration and supervision because of the interference of higher officials in their decision and political decisions. In this study, extrinsic motivation positively related with employee performance but the effect of some extrinsic motivational factors on employee performance is insignificant,accordingly salary and benefit have significant positive impact on employee performance however working condition, company policy, interpersonal relation and administration & supervision have positive but insignificant impact on the employee performance.This shows the current way of administration and the working condition of the bank should be changed. The Bank also should improves Interpersonal relationship between employees and their supervisors.The bank should create an effective and good performance appraisal system. Finally Professional work decision should be out of the influence of the management decisions and interference