A COMPARATIVE STUDY ON IMPACT OF EMPLOYEES MOTIVATION SCHEMES ON EMPLOYEES PERFORMANCE: A CASE OF COMMERCIAL BANK OF ETHIOPIA AND BANK OF ABSSINIYA HEAD OFFICE

Abstract

This study aims to assess the impact of employee’s motivation schemes on employee’s performance in the case of commercial Bank of Ethiopia and Bank of Abyssinia bank in comparative way. To answer research questions, the study used explanatory design and mixed approach. Questionnaires and interviews were used to collect primary data. The data was analyzed by employing various statistical descriptive measures such as mean, standard deviation, and inferential analysis such as regression analysis. The results show that the employees of CBE and BOA perceive that the current compensation and benefit are adequate. To answer research questions and test the hypotheses the study adopted the mixed research approach. The questionnaire data were analyzed using descriptive statistics, correlations, and multiple linear regression analysis and data from interview and document reviews were interpreted qualitatively. According to the finding of this study the data collected from CBE and BOA respondents are satisfied on the banks benefit and compensation schemes. The finding of employees result shows performance explained by compensation and benefit, promotion scheme, training scheme, and employee work environment scheme are favorable to the employees. All motivational schemes have positive and significant impact on employee performance of employees of CBE and BOA. The sum of regression and residual result of CBE 12.919 is greater than 11.907 of BOA. In case of CBE employees’ compensation and benefit scheme training and development scheme and recognition scheme have highly influence employee’s performance where as in case of BOA employees promotion and work environment scheme have highly influence employee’s performance. Finally the researcher recommended that the management of CBE should be improve the promotion and work environment scheme since they have less effect on employees performance on the other hand the recognition of BOA have less impact on employees performance as a results it recommended that the promotion and recognition scheme of the bank free, fair and the employee’s should be aware of the parameter for promotion and recognition should be provide fast treatment and adequate service to all employee. Finally, both banks should evaluate the impacts motivational scheme from time to time to check the level of employee motivation.