EFFECT OF MOTIVATION ON EMPLOYEE PERFORMANCE: THE CASE OF HAGBES PRIVATE LIMITED COMPANY

Abstract

Research findings revealed that there is a positive relationship between employee motivation and employee performance. The purpose of this study is therefore, to examine the effect of motivation on employee performance at Hagbes Privet Limited Company found in Addis Ababa. The study followed mixed methods design, where both qualitative and quantitative researches were applied. Closed ended questionnaires and interview were the data collection instruments used for this study. A 61% response rate was obtained from 85 Hagbes’s respondents which were conducted using census technique. The data were analyzed by using descriptive statistics focusing on the frequency, mean, standard deviation and percentages and the analysis was processed by using statistical package for the social sciences (SPSS) version 20. Moreover, an inferential statistics focusing on a correlation analysis were used to see the correlation between the dependent and the independent variable. Regression analysis was also conducted to see the effects of each independent variable on job performance. The independent variables for this study were financial rewards, promotion, recognition, training and development while the independent variable is employee performance. To analyze the qualitative data, content analysis was conducted and finally it was triangulated with the quantitative. The study finding showed that the extrinsic motivator particularly the financial reward, promotion and the work environments have a greater impact on employee motivation at Hagbes, and the intrinsic motivator like achieving personal goal and job satisfaction are the most valued motivators. In general, the study showed that employee job performance is found at a satisfactory level of achievement. This study recommends the company to understand the dynamic nature of motivational variables and need to develop a holistic and comprehensive motivational scheme that can be employed impartially and equally to all employees found in the company so as to improve the employees motivation and thereby the job performance.