THE EFFECT OF MOTIVATION ON EMPLOYEES PERFORMANCE: THE CASE OF AYAT SHARE COMPANY

Abstract

Motivation is the term used to describe those processes, both instinctive and rational by which people seek to satisfy the basic drives perceived needs and personal goals, which trigger human behavior. This study sought to investigate the factors that motivate employees in the workplace and their relationship to employee performance with special reference to Ayat Share Company. Mixed methods research approach (combinations of quantitative and qualitative data sets) in a concurrent triangulation strategy both descriptive and explanatory design were used to examine the effect between motivation and employees’ performance. The sources of data were primary and secondary. Primary data were collected from employees of Ayat Share Company using questionnaires which contained 19 items that measured extrinsic and intrinsic factors of motivation to describe quantitative data and the perceived performance of employees. In addition, semi-structured interview was conducted with three employees from Ayat Share Company Offices. The data was collected across a population through stratified sampling. The target population of this study included all employees in Ayat Share Company were selected for the study since a problem has been seen on the effectiveness of the motivational strategy to improve performance. One hundred sixty (160) questionnaires were distributed for the collection of data from which one hundred fifty (150) are used. Cronbach alpha coefficient method was applied to see the reliability of the questionnaire. Data was analyzed using descriptive statistical tools, Pearson's correlation matrix to show the relationship' between the dependent and the independent variables and also regression analysis to show the effect of the independent on the dependent variable. Results show that extrinsic motivations have strong, positive and statistically significant relationship with employees’ performances The finding showed that from the mean score of intrinsic and extrinsic motivational factors mean of extrinsic factors (the mean of the leadership style, salary/monetary compensation and effective dissemination of information) show high mean score. Change in employee performance was more due to extrinsic motivation than intrinsic motivation while applying separately. Therefore, Ayat Share Company administrators Both the organization management and the employees should appreciate the influence of the intrinsic factors on employee motivation levels. The organization should effectively exploit the extrinsic factors influencing employee motivation as a strategy for establishing a positive employee motivation.