| Abstract: | The General problem the facts show from human resource data, informal discussion to employee’s and observed in the organizational setup is low salary, poor leadership & supervision, lack of recognition of workers achievements, all these affect to reduce worker moral and consequently affect their commitments.The purpose of this study is to assess the motivational practice and its effects on employee’s commitment the case of Abay insurance company, in addition to this the aim of this study is to find out the types of motivation put in their best to employee’s commitment and growth of organization to achieve organization objective.
The research design used was descriptive and explanatory research design. The sample size consisted of 99 employees out of 133 employees selected from head office and Addis Ababa branch of the insurance. Company primary data were collected using five-point Likert scale questionnaire. Factors of motivation, financial rewards, working condition, supervision, job content and design, training and development, growth and advancement have been analyzed in the study. Using SPSS software version 20 was used to analyze the collected data by using descriptive and inferential statistics such as frequency, percentage, cross tabulations, means, standard deviations, correlation, multiple regressions, and ANOVA analysis. Results showed that the correlation between motivation variables and employees commitment are significantly correlated except financial rewards, Coefficient beta result show that employees were has significance contribution to with all motivation factor except financial rewards with employee’s commitment. In multiple regressions the model implies that results show R2 the predictor variable 75.6% explains employee commitment. Based on the findings, the researcher recommends the insurance to revise its supervision style, organization job design and content, training and development policy, and also the organization need improvement the incentive provided by the organization, working condition and promotion policy. Finally, the potential to future research has been identified at the end of the study. |
