The effect of motivation on employees’ performance: In the case of Berhan bank S.C, Addis Ababa.

Abstract

Motivation is stated as one of the most important contributor for high performance in the Bank sector. Motivation factors (reward, recognition, promotion, job security, training, working environment, fringe benefit, and salary) are motivation systems to encourage employees to perform in the most effective way. The purpose of this study was to investigate the effect of motivation on employees` performance in Bank sector, focusing particularly at Berhan bank S.C. In the study motivation is seen as an independent variables while employee performance as a dependent variable. For this particular study descriptive and explanatory research design was employed and quantitative research method was used. The purposive sampling technique was used to select the study area of the organization, while simple random sampling technique to select sample the target respondents. A survey is conducted by using structured close ended questionnaires which is distributed to 192 Berhan bank employees in order to gather data relevant to the research objectives. Descriptive statistic such as percent, frequency, mean and standard deviation and inferential statistic such as correlation, multiple regression and ANOVA analysis statistical tools were used to examine the relationship between motivation and employee Performance .The data collected on the questionnaire were analyzed using SPSS (version-28).Pearson correlation coefficient analysis was carried out to test the hypotheses. Multiple regressions analysis were performed to examine relationships between the independent and the dependent variables and to identify the influence of the independent variable on the dependent variable. The findings revealed that all motivational factors have a significant positive relationship with employee performance in Berhan bank in the study setting. There was a positive correlation between all motivational factor describe in this research and employee performance in Berhan bank In descriptive statics frequency shown that motivation is directly proportional to employee performance. This result clearly pre supposes that the more motivated the workforce, the higher their level of input into work and hence increase in performance. Thus, this study recommended that Berhan bank managers can be improving the employee performance and increasing organizational effectiveness seriously giving attention the entire motivation factor.