THE EFFECT OF MOTIVATION ON EMPLOYEE PERFORMANCE: THE CASE OF KIFIYA FINANCIAL TECHNOLOGY PLC, ADDIS ABABA BRANCHES

Abstract

The purpose of this study is to evaluate the effect of motivation on employee performance in the case of Kifiya Financial Technology PLC. The specific objectives of the study were to identify the motivation practices, the relationship between motivation and employee performance, the effect of motivation on employee performance. The study identifies four motivational factors namely work environment, employee wellbeing, compensation and training and development. The study employed combination of descriptive and explanatory type of research designs in which stratified and simple random sampling method was used to a collected data from employees of the head office and five branches of the company located in Addis Ababa. The study used mainly primary data collected through questionnaire. To ascertain the reliability of the questionnaire, a pre-test was conducted at the company where the cut-off for Cronbach alpha was taken as a value of 0.7 and the aggregate alpha value in this study was 0.799. The questionnaire distributed through 222 staffs in person and 87.5% were returned and from that 189 were found to be valid. The data was analyzed through a tool SPSS software. The quantitative data in the study was analyzed using descriptive and inferential statistics. All four predictors have positive and statically significant effect on employee performance with varying intensity. Based on the findings the researcher forwarded some recommendations for the company which would be helpful to increase the performance level of employees, managers should be concerned for the wellbeing of the employees as well as provide fair compensation, training & development and create conducive work environment accordingly.