THE EFFECT OF EXTRINSIC EMPLOYEE MOTIVATION ON EMPLOYEE PRODUCTIVITY: THE CASE OF ORBIS TRADING AND TECHNICAL CENTER HEAD OFFICE ADDIS ABEBA

Abstract

The purpose of this study was to examine the effect of extrinsic employee motivation on productivity of Orbis Trading & Technical Center S.C. The study was based on descriptive and explanatory research design. The extrinsic employee motivation questionnaire was adopted from different related research. A total of 105 employees participated in the study with response rate of 50%. The researcher used proportionate stratified simple random sampling techniques. The data was analyzed using descriptive and inferential statistics. The results show that the existing extrinsic employee motivations on company productivity which is highly affected the employee motivation by leadership, working environment, job security, reward system and salary. On top of that, leadership and job security significantly affect company productivity with beta value 0.364 and 0.361 respectively. According to the regression analysis result, leadership and job securityhave significant effect on employee’smotivation (p<0.05). On the other hand, the remaining three working environment, reward and salary no significant effect on employee motivation due to the fact that p>0.05. Based on the research findings and conclusions the major recommendations were offered for possible consideration by Orbis Trading & Technical Center S.C which is mostly related with the type of extrinsic employee motivation shall be applied to boost company productivity.