ASSESSEMENT OF EMPLOYEE MOTIVATION PRACTICES AT COMMERCIAL BANK OF ETHIOPIA

Abstract

The study was about Commercial bank of Ethiopia the major problems were the issue of employee motivation and retention, that why so many voluntary resignations among the employees of the bank. The main objective of this study was to assess employee’s motivation practice of CBE while the specific objectives were: to assess the existing motivational packages of CBE, to determine which motivational packages attract employees, to assess the managements perception of what motivate employees and to identify and suggest other effective motivation strategies to the management of CBE. The study was based mainly on Primary data in form of questionnaires, interviews for these purpose 80 respondents selected from different branches using simple random sampling method. The population of the study was 792 employees under WAAD. The study used descriptive statistics (frequencies, and percentages) to answer the research questions posed for the study. The result obtained from the analysis showed that the existed motivation strategies of CBE are not strong enough to motivate and retain employees within the bank. The study reveals that: financial motivational tools given to employees in the bank had no importance to motivate employees, motivation strategies were not in keeping with employee’s expectation and CBE employees prefer financial motivation strategies like salary and bonus than other financial motivation strategies of the bank. The researcher recommends the bank should adopt extrinsic rewards to attract and retain their employees. On the bases of these findings, employers are continually challenged to develop pay policies and procedures that will enable them to attract, motivate, retain and satisfy their employees. The researcher therefore suggests that more research should be conducted on the motivational strategies of employees to provide solutions to individual disagreement that has resulted from poor motivation system.