| 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 |
