THE EFFECT OF INTRINSIC MOTIVATION ON EMPLOYEES’ PERFORMANCE IN NOT FOR PROFIT ORGANIZATION (THE CASE OF SELAM CHILDREN VILLAGE IN ETHIOPIA)

Abstract

In a constantly changing environment, intrinsic motivation in NPOs (not-for-profit organizations) has drawn major attention over the past few decades. This paper aims to investigate the effect of intrinsic motivation (motivation that comes from inside an individual) on employees’ performance in not for profit organization (the case of Selam Children Village in Ethiopia). The data were collected using simple random sampling via self-administered questionnaire. From a total of 220 copies of survey questionnaires, 180 responses were collected and retained for analysis. The collected data was analyzed using descriptive statistics and inferential statistics correlation and regression).The findings revealed that the variables achievement, the work itself, responsibility (autonomy), growth or advancement, self-leadership, and organizational settings change in the same direction ( having a positive relationship) with employee performance statistically significant respectively at the 0.01 level implicating a 99 degree of confidence. As seen in the result of regression analysis effect of the independent factors varies having organizational settings the highest positive impact while self-leadership and the work itself registering respectively a large size positive impact on employee performance, while achievement were found to be negatively impacting employee performance. On the other hand, responsibility (autonomy) and growth or advancement variables of intrinsic motivation found to be having no effect on employee performance. The three variables (organizational settings, self-leadership and work itself) respectively found to be having a positive impact on employee performance accordingly Selam Village management should focus on strengthening these intrinsic motivation