THE IMPACT OF MOTIVATION IN FOSTERING ORGANIZATIONAL COMMITMENT: IN THE CASE OF ETHIOPIAN SHIPPING AND LOGISTICS SERVICE ENTERPRISE

Abstract

The purpose of this study is to investigate the impact of motivation in the fostering of organizational commitment of employees. The research used cross-sectional survey and explanatory design. The research approach applied for this study was quantitative approach in nature .The target population of this study was employees of Ethiopian Shipping and Logistics Service Enterprise specifically at head office. From 500 total populations at head office the study used 300 employees as target population, excluding management members and clerical work employees. From which 171 employees were selected as the sample of the study. Stratified sampling and simple random sampling method was used to the respondents. For descriptive aspects frequency, percentage and mean were used and for inferential part correlation and linear regression analysis were used to analyze the gathered data. The results of the study indicate that employees were satisfied with intrinsic factor of motivation and dissatisfied with extrinsic factor of motivation practiced by the enterprise. The study result shows that motivation factors were a significant positive relationship with employees’ organizational commitment. Intrinsic and extrinsic factors of motivation used in this study have significant positive relationship with organizational commitment of employees. Intrinsic factor of motivation has significant relationship with the three organizational commitment levels (affective, continuance and normative) and extrinsic factor of motivation was significant relationship with continuance and normative level of commitment but no significant relationship was found with affective level of commitment. The regression results show that motivation factors have significant contribution for variably of organizational commitment. In this study, intrinsic factors of motivation were the most predictor of organizational commitment of employees than extrinsic factor of motivation. In general the result of the finding indicates that motivation factors have significant impact on the development of organizational commitment of employees in the enterprise. It’s been recommended that to develop organizational commitment of employees the enterprise should improve working environment, focusing more on training programs, establish clear organization policy, procedures and rules. Moreover, the enterprise should establish proactive strategies as to how employees motivate.