AN ASSESSMENT ON THE IMPLEMENTATION OF EXTRINSIC MOTIVATION IN GOVERNMENT ORGANIZATION THE CASE OF ETHIOPIAN REVENUES AND CUSTOMS AUTHORITY LARGE TAX PAYER BRANCH OFFICE

Abstract

Motivation is one of the most important factors that increase employees’ performance. Organizations design motivation systems to encourage employees perform in the most effective way and also to attract potential candidates. The key to create efficient motivation system is an answer to the question what really motivate employees. The research was conducted with the aim of assessing the implementation of extrinsic motivation on government organization in Ethiopian revenues and customs authority large tax payer branch office. A questionnaire and semi structured interview was used to collect the necessary data from ERCA employees and departments heads of the branch office. The research was intended to take 182 employees for questionnaire and four department heads for interview. Descriptive analysis such as mean, overall mean and standard deviation was used to analyze research questions. From the research ERCA extrinsic motivational factors include job security, praise and recognition, financial rewards, promotion and fringe benefits. The descriptive analysis reveals that employees have no fear of losing their job. They also replied that if praise and recognition is effectively provided by the branch office it improves their performance. There is no financial reward system to motivate employees which creates dissatisfaction with the employees’. Fringe benefits such as housing allowance and transportation are provided, employees are satisfied with transportation but the housing allowance does not consider the current cost of living of the country. On the other hand promotional procedures are clear and fair that cause employees to be satisfied. The research shows that extrinsic motivation could affect the motivational level as well as performance of employees. Therefore the result pointed out that ERCA need to revise its administration on motivational factors in order to retain productive and potential employees.