LUNAR INTERNATIONAL COLLAGE

MASTERS OF BESNESS ADMINSTRATION

ORGANIZATIONAL BEHAVIOUR (MBA 612)

GROUP ASSIGNMENT (Term Paper)

Title: Employee Motivation System: A Case Study of General Motors Co.

(ETH) Ltd.

By: Adugna A.
Belachew S.
Belayneh Y.
Bezamariyam D
Mikyas W.

Submitted to: REJALU N. (PHD)

Septamber 2022
Addis Ababa, Ethiopia
 Program: MBA Couse: MBA 612

Title: Employee Motivation System: A Case Study of General Motors Co.

(ETH) Ltd.
Mikyas Woldu1, Adugna A., Belachew S., Belayneh Y., Bezamariyam D
1
Lunar international collage, Addis Ababa, Ethiopia

I. Introduction

Employee motivation is the most significant factor in boosting an organization's competence and
ensuring its success. Employee retention is one of the most critical elements in human capital
management. Employees that are talented and loyal are the cornerstone of good businesses,
therefore retaining them is vital. To achieve this goal, many firms apply a variety of employee
incentive approaches and initiatives. These techniques, which will be explored in this article,
may have a beneficial or bad impact on the organization's workers' perspectives. The goal of this
study is to look closely at employee motivation systems used at General Motors Co. (ETH) LTD.
and assess the company's practices in relation to many popular employee motivation theories
proposed in the past by various experts in the field, then identify the merits and demerits of these
practices on employee motivation.

General Motors Co. (ETH), or GMC for short, is an Ethiopian corporation headquartered in
Addis Abeba. The majority of the company's operations are in the Vehicle Maintenance
business. General Motors Company (ETH) also imports secondhand cars. In Ethiopia, the
company is classed as Automotive (Vehicle Maintenance), Business & Professional Services
(Commission Agent), and Importers (Cars) (AddisBiz.com, 2022; Ezaga.com, 2022). It had
more than 40 employees in various departments at the time this research was conducted. This
case study was chosen because of the unusual employee motivating practices revealed by
employees and personal experiences seen by the auteurs of this research while gathering
information.
The concept of motivation.
According to several scholars, training new personnel takes time and requires more resources. As
a result, businesses should use all tequines accessible to retain employees and increase work
performance. In this view, the longer a person remains with the company, the better for the
organization. Motivation is one of the key factors that help organizations to retain their
employees. Motivation is also a key attribute that drives individuals to give their all and
contributes to the fulfillment of significant business objectives. Positive inspiration increases
employee production, whereas negative inspiration decreases output. With this assumption in
mind, the case study's corporate processes are thoroughly studied to discover and assess the
efficiency of employee incentive techniques employed by the company's management team.

Managers are accountable for fostering an atmosphere in which employees may attain their full
potential. Failure to establish such an atmosphere would theoretically increase employee
unhappiness, perhaps leading to worse performance, lower job satisfaction, and increased leave
from the organization. There is enough evidence in today's highly competitive labor market that
enterprises of all sizes, technological improvements, and market emphasis confront retention
challenges (Ramlall, 2004). If a corporation lacks the capacity to excite its staff, internal
knowledge is not leveraged to its maximum potential. As a result, each learning organization's
objective becomes to find the elements that enable it to push its personnel to ongoing excellent
performance and to apply this knowledge to ensure its longevity (Osteraker, 1999).

Most employees want to be motivated in order to enjoy their jobs and perform effectively.
Money motivates some employees, while recognition and prizes encourage others. Workplace
motivation has a direct impact on employee productivity. Workers that are excited about their
jobs do their obligations to the best of their ability, and production increases as a consequence.
Leaders and managers have long been concerned with employee motivation. Unmotivated
people are more likely to put in little or no effort at work, avoid it as much as possible, leave the
company if given the opportunity, and produce low-quality work. Employees who are motivated
to work, on the other hand, are more likely to stick with it. Employers must get to know their
employees and apply a variety of incentive strategies depending on their specific interests and
demands. Motivation is the result of a mix of conscious and unconscious components such as the
intensity of want or need, the incentive or reward value of the objective, and the expectations of
the individual and his or her peers. These are the motivations behind people's actions.

Many employees are self-disciplined and driven. Employees are driven only when they are
secure in their talents and personally connect with their function inside the firm. Incentive and
rewards have little influence on them. These people work hard because they like the personal
challenge that their jobs present. Employers may encourage employees and increase worker
productivity in a variety of ways. Employers might use incentive tactics that incorporate several
techniques since different factors impact workers in different ways. For example, to influence
money-motivated employees, an employer may create a daily "spiff" that pays cash promptly to
employees who reach short-term productivity objectives. To reach long-term production targets,
an employer might establish a program that stimulates friendly rivalry among employees to meet
output targets. Employers can publicly honor top achievers for a job well done at the program's
completion. An incentive is a major motivating factor intended to drive behavior and inspire
people to generate high-quality work. Employers utilize a variety of incentives to boost output
statistics. Employee incentives might take the shape of paid time off, bonuses, cash, or vacation
privileges. Employee motivation is increased by incentives since they provide more to strive for
than a normal payment. Many employees want acknowledgment from their bosses in order to
accomplish high-quality work. Employee recognition and reward programs recognize employees
who do a good job. Recognizing a job well done makes employees feel good and motivates them
to do good. Employers acknowledge employees by keeping track of their accomplishments and
offering feedback on how they have grown over time. Public appreciation is another motivator
that boosts worker productivity. Some employees are driven by a sense of satisfaction and
achievement in attaining personal and professional objectives.

1.1 Importance of employee motivation in an organization

Managers must develop innovative strategies to keep their personnel as engaged as possible on a
continual basis. Motivation is critical for every business because of the benefits it may provide.
Among these advantages are:

I. Human Capital Management: Only by utilizing all of a company's financial, physical,

and human resources can an organization reach its maximum potential. Employees are
 driven to complete their tasks as a result of these resources. As a result of everyone trying
their best to do their jobs, the business begins to shine.
II. Meet Personal Goals and Help an Employee Stay Motivated: Motivation may help a
worker achieve his or her personal objectives and can aid in an individual's self-
development. When a worker achieves certain first targets, they recognize the clear
correlation between effort and outcomes, which motivates them to continue working at a
high level.
III. Greater Employee Satisfaction: Employees will not be prepared to meet their goals if
there is no incentive scheme in place. As a result, managers should aim to empower
people through possibilities for advancement, monetary and non-monetary awards, or
disincentives for inefficient staff.
IV. Raising Employee Efficiency: The amount of efficiency of an employee is not directly
proportional to his talents and credentials. To get the finest outcomes, an employee must
strike the optimal mix of talent and willingness. Such balance can only be attained via
motivation and can lead to increased productivity, lower operating costs, and overall
efficiency improvements.
V. A Higher Chance of Meeting the Company’s Goals: Any business has objectives that
can only be realized if the following conditions are met: The work environment is
cooperative; all employees are directed by their aims; goals may be achieved if
collaboration and coordination are met simultaneously through incentive.
VI. Better Team Harmony: A suitable work environment based on cooperative relationships
is critical to the success of any firm. Not only will it offer stability and revenues, but staff
will also adjust more quickly to changes, which will eventually benefit the organization.
VII. Workforce Stability: The stability of the workforce is critical from a business standpoint.
Staff will remain loyal to the company if they have a feeling of engagement on the
managerial side. Staff talents and potential may be leveraged not only for their individual
gain, but also for the benefit of the firm. This may result in a trustworthy public image in
the market, which may attract competent and qualified personnel to the company.
 OBJECTIVES OF STUDY
The main goal of this study is to determine the key motivational tools employed by the General
Motors Co. (ETH) LTD, as well as which theories of motivation support or disregard the
example organization's motivating strategy. In addition, the specific goals of the study are:
 Identify major employee motivation practices employed by the company
 Employees' perspectives on case organization motivation approaches
 Major issues arose in the case organization as a result of a lack of enthusiasm
 Determine the case organization's weaknesses and strengths
 Suggestions for resolving the issue in the case organization

II. Literature Review

"Motivation" comes from the Latin word "movere," which meaning "to move." By definition,
motivation transforms boredom into interest. The psychological mechanisms that drive the
arousal, direction, and persistence of goal-oriented voluntary acts are referred to as motivation
(Mitchell, 1982). According to Bartol and Martin (1998), motivation is a force that energizes
activity, guides behavior, and supports the inclination to persist. This definition recognizes that
in order to achieve goals, individuals must be sufficiently enthused and energetic, have a clear
focus on what needs to be completed, and be willing to devote their energy for a sufficient period
of time to realize their goal. Motivation is an important aspect of management leadership
because it encourages individuals to work toward company goals. Employees are unlikely to be
committed unless they are suitably motivated. Over the last few decades, many psychologists
and management experts have conducted extensive research on many aspects of employee
motivation. Some of the pioneer works are briefly discussed in this section.

2.1 Popular Theories of Employee Motivation

Some essential management theories can support motivational factors for employees to enhance
corporate operations. Bartol and Martin (1998) categorized the primary theories in motivation
into three categories: needs theory, cognitive theory, and reinforcement theory. Some well-
known theories include:
III. Maslow's Hierarchy of Needs
Abraham Maslow (Maslow, 1970) developed the most widely used needs theory, known as
Maslow's motivation theory of hierarchical needs. Abraham Maslow, a psychologist, presented
his motivation model in 1954. The main notion behind Maslow's hierarchy of requirements was
that people have five levels of wants that must be met before they can be motivated by higher
level stimuli. According to Maslow, positive feedback (an esteem element) cannot inspire
someone if their fundamental physiological demands are not addressed. When applied to the
workplace, this makes sense. If someone isn't paid enough to put food on the table for his or her
family, a 'good job' sticker won't mean anything to them!

Abraham Maslow emphasized that in order to go to the next stage of psychological growth, a
person must fulfill himself or herself in all aspects, regardless of where they now are. Human life
qualities are satisfied when they may access psychological, safety, love, esteem, and self-
actualization processes throughout their lives. Many corporations used this approach to keep
their personnel engaged.

IV. Aldefer’s EGR theory

ERG theory was proposed by Alderfer (1972) as an alternative to Maslow's theory. He reduced
Maslow's hierarchy of needs to three levels: existence (E), relatedness (R), and growth (G) (G).
Food, housing, clothing, high income, fringe benefits, good working circumstances, and so on
are examples of physiological requirements. Relatedness needs concern our interactions with
others, such as family, friends, and coworkers. Maslow's latter two stages, self-esteem and self-
actualization, are related with growth requirements. In many sense Maslow's motivation theory
of hierarchical needs and Aldefer’s EGR theory are somehow similar except the methods they
classify the needs into groups.

V. Herzberg two Factor Theory

In employee motivation, Herzberg et al. (1959) established the 2-factor (motivators and hygiene
factors) hypothesis. According to Herzberg (1968), eradicating the source of discontent (through
hygienic considerations) would not result in a condition of contentment. Only the usage of
motivators would result in satisfaction (or motivation). Herzberg proposes two factors:
 a. Motivator factors: These include wage increases and a pleasant working
environment.
b. Hygiene factor : These are the variables that might demotivate employees, such as
corporate regulations, salary deductions, and an unhealthy connection with
managers and coworkers.

Herzberg argued that a wage raise would not have a long-term motivating impact. Once the
hygiene requirements were satisfied, Herzberg stated that businesses should focus on
acknowledging employee accomplishments and offering chances to learn and grow.

VI. Expectancy Theory

The expectancy theory, first presented by Victor H. Vroom, contends that the strength of a
propensity to behave in a specific manner is determined by the strength of an expectation that the
act would be followed by a given consequence and the attractiveness of that outcome to the
individual (Robbins, 1993). According to the expectation hypothesis, employees' conduct is
determined by the consequence of the activity. It implies that when employees seek a raise in
their wage, they begin working longer hours. The three primary variables in this theory are
expectation, instrumentality, and valence. In the workplace, the authority may put this principle
into practice by rewarding people for their efforts.

VII. McClelland's Theory of Needs

McClelland (1985) investigated three kinds of needs: accomplishment, affiliation, and power.
Pinnington (2011) proposed the hypothesis that an individual accumulates specific types of
demands during his or her lifespan. Individuals develop these demands via learning and
interaction with their surroundings. This idea focuses on three requirements: Need for
accomplishment- The desire to succeed is driven by the desire to excel, to accomplish in respect
to a set of norms. Individuals with this motivation want to perform things more effectively,
overcoming obstacles to attain their goals. Need for affiliation- The need for a warm and close
interpersonal relationship is referred to as the need for affillatiion. Individuals that have this
drive have a great need to be liked or accepted by others in order to preserve healthy
relationships with others. The Need for power -is the desire to force people to behave in ways
they would not have otherwise. Individuals with this need are placed in competitive situations to
be concerned with gaining influence over individual, group or organization. These beliefs,
 according to Shannon and Weaver (1949), are based on people's wants and the circumstances
that impact their behavior. As a result, strong communication can help with the fulfillment of the
three needs.

VIII. Equity theory-

This theory suggests that individuals are concerned not just with the absolute number of benefits
they obtain for their work, but also with the relationship of this amount to what others receive,
according to equity theory. One can compare results such as money, recognition, and other
things based on one's inputs such as effort, experience, education, and competence. Tension is
developed when people feel an imbalance in their outcome-input ratio in comparison to others.
Three major assumptions underpin equity theory (Carrell and Dittrich, 1978). First, according to
the idea, people form views about what constitutes a fair and equitable compensation for their
efforts to their employment. Second, the idea implies that people compare what they believe to
be their interactions with their employers. The other premise is that when people think that their
own treatment is unequal in comparison to the transaction that they perceive others to be making,
they will take appropriate measures.

IX. Goal setting theory-

People will be motivated, according to the goal-setting hypothesis, if they are given a goal
followed by a reward. The goals must be explicit and quantifiable, demanding yet reachable,
relevant to the company, and completed within a particular time frame. It is commonly regarded
as a highly effective motivator.

X. The reinforcement theories-

Reinforcement theories (first presented by B.F. Skinner) are the polar opposite of cognitive
theories in that they have nothing to do with human mental processes. According to the
reinforcement hypothesis, human conduct may be described by environmental consequences,
hence cognitive explanations are unnecessary. Instead, the idea is mainly based on a principle
known as the law of effect, which asserts that actions with pleasant or good outcomes are more
likely to be repeated, whereas behaviors with unpleasant or negative outcomes are less likely to
be repeated (Bartol and Martin, 1998).
XI. Other related theories and studies
According to Hackman and Oldham's (1976) job enrichment model, jobs can be made more
motivating by increasing the following factors: skill variety (the number of different skills
required by the job), task identity (the degree to which the job produces something meaningful),
task significance (the importance of the work), autonomy (the degree to which the individual has
freedom in deciding how to perform the job), and feedback (the degree to which the individual
receives continuous feedback). In addition to this, Lord (2002) suggested that, employee
retention and productivity are determined by their level of motivation. According to his research,
the key motivators include achievement, work responsibility, acknowledgment, and so on. The
author finishes by stating that effective use of motivators boosts job satisfaction and hence
productivity. With regard to the primary organizational applications of intrinsic motivation,
namely cognitive evaluation theory and job characteristic theory, Peterson and Quintanilla
(2003) relate intrinsic motivation to socialization into social work ideals and norms. Individual
acceptance of social values and norms that encourage effective work behavior may contribute to
intrinsic work motivation in ways that these theories do not predict. Kubo and Saka (2002)
identified three motivators for efficient workers in the Japanese financial industry in an
exploratory study: monetary incentive, human resource development, and job autonomy are
found to be the best factors for motivation. Mehta, Dubinsky, and Anderson (2003) investigated
the relationships between various leadership styles, motivation, and performance using data from
a sample of vehicle dealers in the United States, Finland, and Poland. According to the writers,
the accepted leadership style and motivational elements should be compatible with the national
culture and adaptive leadership is the best leadership strategy.

Wright (2001) studied the difference between employee motivation of public sector and private
sectors. He finds no compelling evidence to support the following two assumptions: (1) The
characteristics of public sector employees in the workplace differ from those of private sector
employees. (2) These distinctions have a significant influence on job motivation. According to
the author, public employees' judgments of a poor link between reward and performance,
increased procedural limitations, and objective ambiguity may have a negative impact on their
job motivation. Rowley (1996) tries to discover issues that influence the motivation of academic
staff in higher education. In regards to Herzberg's hygiene elements, the author states that
frustration might arise from discontent, which inhibits personnel from doing a good job, such as
bad schedule organization, inadequate maintenance of instructional equipment, or too many
diverse demands on their time. Similarly, Mani (2002) investigated the motivation of four groups
of employees at East Carolina University: ground laborers, library clerks, patient relation reps,
and medical record assistants. The author discovered that decent compensation and recognition
were the most effective motivators. On the other side, perks, working environment, and
coworkers all have an impact on motivation, but not as strongly as the first two.

Eastman Chemical Company's approach to employee engagement and retention was described
by Milliken (1996). Job security, a performance-based evaluation system, extrinsic appreciation
via an employee suggestion system, performance feedback, problem-solving training, and other
programs were discovered to be in place. Kovach (1995) discusses the employees' and their
immediate managers' rating of 10 motivating elements. The author discovers that the rankings
made by supervisors differ greatly from those produced by employees. He comes to the
conclusion that managers make mistakes by assuming that what motivates them would equally
inspire their people. According to one psychological theory, Csikszentmihalyi (1975) states that
very high levels of intrinsic motivation are characterized by such strong interest and involvement
in the work, as well as such a perfect match of task complexity with skill level, that people
experience some kind of psychological "flow," or a sense of merging with the activity they are
doing. Extrinsic motivation, according to the dominant psychology hypothesis, works in
opposition to intrinsic motivation (Deci 1975; Deci & Ryan 1985). When people are driven by
anything other than the action itself, such as promised awards or incentives, this is known as
extrinsic motivation. These ideas generally suggest that when powerful external motivators are
used, internal motivation declines. To further grasp this, consider the following scholastic
classifications of motivation:

Classification of Motivation-
There are several frameworks, models, and ideas devoted to employee motivation that classify
different types of motivation practices into groups. A handful of the most common are listed here
in brief. While each is founded on solid research and has some degree of universal application,
none is the final word on motivation. Few motivational principles, in reality, are universal.
However, all theories that address motivation accept the existence of extrinsic and internal
motivating elements.
1. Intrinsic Motivation Vs Extrinsic Motivation

Intrinsic motivation is a sort of motivation that is motivated by an individual's intrinsic

aspirations. Intrinsic motivation refers to motivation that originates inside. It stems from the
personal satisfaction and intellectual success that we gain from completing that specific item.
Intrinsic drive makes your work more enjoyable on a personal level. It's a crucial factor in
deciding to keep a job. It aids in the reduction of stress. Extrinsic motivation, on the other hand,
is a sort of motivation in which an individual is motivated by desires outside of themselves.
Extrinsic motivation is motivation derived from objects or causes outside of the self. For
example, being inspired to work hard at work because you want to advance in position. Extrinsic
incentive might take the form of social acclaim, money, celebrity, competitiveness, or material
achievements.

2. Positive Motivation Vs Negative Motivation

In reality, motivation refers to good motivation. Positive motivation inspires people to produce
their best job and enhance their presentation. Bad motivation attempts to regulate the negative
undertakings of the task and creates a sense of dread in the worker, requiring him to languish in
the absence of good execution. It is based on the premise that if a worker fails to achieve the
desired results, he should be fired. All sorts of motivation will fall into one of the two categories
listed above.

3. Reward-Based Motivation or Incentive Motivation

Incentive motivation, also known as reward-based motivation, is a sort of motivation in which

you or others are aware that they will be rewarded if a certain objective is met. Because there
will be something to look forward to at the end of a task, persons will frequently get
progressively determined to oversee the task in order to acquire whatever has been promised.
The more valuable the reward, the more grounded the motivation.

4. Fear-Based Motivation

Fear has a bad connotation; however, this is not always the case when it comes to motivation.
Anyone who values goal-setting and accomplishment understands the importance of
responsibility in achieving goals. When you become accountable to someone you care about or
to the general community, you create a motivation for yourself that is based on the fear of
failure. This fear motivates you to complete your vision so that you don't fail in front of the
people who are aware of your aim. Fear-based inspiration is extremely innovative as long as the
sensations of dread are strong enough to keep you going.

7. Achievement-Based Motivation

We place a high value on titles, positions, and responsibilities in our professions and other
aspects of our life. Those who are always pushed to get these positions and titles are usually
dealing with achievement-based motivation.

TECHNIQUES OF EMPLOYEE MOTIVATION

Job enlargement, job enrichment and job rotation are three basic approaches;

1. Job Enlargement: Job enlargement entails expanding an employee's job to include extra
work of a comparable sort to what they presently do. This may allow them to perform the entire
work rather than just a portion of it, such as packing the items as well as manufacturing them.
This technique ideally eliminates boredom from the job by removing repeated duties and
allowing people to perform the entire process, boosting their responsibilities.

2. Job Enrichment: Job enrichment is an endeavor to offer employees greater control over their
jobs and more responsibility for the design, execution, and output of their work. The worker
takes over some of the duties previously performed by his or her direct supervisor or other
personnel.

3. Job Rotation: Job rotation is a procedure in which each person learns multiple processes in
the production process and then rotates between them over a specified period of time. Job
rotation has a significant impact on business learning. On the one hand, as workers cycle, the
company learns about the quality of various jobs - employee matches. Without rotation, on the
other hand, the company receives just direct information about one match, but the information it
receives about this one match is exceedingly dependable.
 In addition to this there are many options and strategies to increase employee motivation. And
an uninitiated manager may not even know where to start. As a guideline, there are broadly
seven strategies for motivation.

 Positive reinforcement / high expectations

 Effective discipline and punishment
 Treating people fairly
 Satisfying employees needs
 Setting work related goals
 Restructuring jobs
 Base rewards on job performance

XII. RESEARCH METHODOLOGY

The best source of information for motivating issues is the employee himself/herself. Employees
should be questioned on a regular basis what motivates and sustains them to work. Thus,
throughout the course of this study, information concerning employee motivation in the
organization is gathered by interviewing General Motors Co. (ETH) personnel. The study's goal
was to use solely qualitative data, and the analytical approach was descriptive. Descriptive
research circumstances or relationships that exist, practices that prevail, beliefs, points of view,
or attitudes that are held, processes that are taking place, impacts that are felt, or trends that are
emerging, all of which align with the researcher's topic to accomplish the aim. Because the goal
of the study is to identify important employee motivation tools utilized in the organization and
their impact on employees, it was fair to use qualitative research methodologies rather than
quantitative, which is better suited to larger studies with a high number of replies.

Given that GMC employs more than 40 people and that it is impossible to contact all of them due
to time and financial restrictions, a sample of groups was questioned. The sample respondents
were picked using a sample random sampling approach based on the availability and occurrence
of opportunity. The interview was done over the phone and in person. Because one of the writers
was formerly employed by the firm, he administered and collected the interview. The interview
questionnaire was divided into two parts: Part A collected respondents' personal information, and
 Part B asked them to answer questions on their perception of the company's employee
motivation system and rank various motivating aspects in terms of their efficacy. The questions
and motivators were derived from existing literature.

The interviews were conducted over the course of one week on three separate days. The
interviews were scheduled to take place around lunch hours and after work hours so that
employees would not have to disrupt their working hours for it. As a result, the interviews were
scheduled to take place during a time of day when the majority of workers were not at work. The
interview included open-ended questions such as, "How satisfied are you with your job?" what
motivation tools have you noticed being practiced in the company? Opinion regarding
participation in decision making? Type of approaches motivates you more? Factors, which
decrease your motivation level at work place? Then the answers were analyzed with relation to
their effect on factors such as Effect of extrinsic motivation on employee performance; Effect of
job enrichment and performance appraisal; Effect of relationships and security; Effect of
authority to make decision; Effect of growth opportunity and finally list other factors considered
by employees to be motivating;

XIII. Results and discussion

To make it more clear elaborated expression about the attitudes of the employees and how
various practices of the company is affecting their performance, their response are categorized in
the form of deferent aspects of motivation and discussed below under sections which are
Extrinsic motivation, Job enrichment and performance appraisal, Relationships and security,
Authority to make decisions and Growth opportunity.

4.1 Effect of extrinsic motivation on employee performance:

According to the findings of the survey, extrinsic influences are powerful motivators, as the
majority of respondents believe so. A viable plan of monetary and extrinsic rewards should be
devised. It should also be noted that after a particular period of time, employees may feel the
need for more monetary incentives. The practice at the case company, however, is different.
Except for Christmas bonuses, there is no incentive system in the firm.
Furthermore, there is a disciplinary mechanism in place for a large list of prohibited acts within
the company's compound, which will be deducted from the employee's monthly income. These
actions include having/bringing a phone into the workplace, not wearing work and safety
closures correctly, lingering in the restroom for an extended period of time, moving away from
the designated station, and so on. These sanctions may be a useful approach to generate fear-
based motivation, but many respondents are dissatisfied by them since they never earn their
entire salary by the end of the month because the management team constantly finds a reason to
penalize them.

4.2 Effect of job enrichment and performance appraisal:

Job enrichment and performance evaluation are also effective motivators. The consequences of
these components are primarily psychological in nature. If the working atmosphere is pleasant,
the person will work more efficiently and effectively. Similarly, if an employee is aware that his
or her strong performance is being evaluated by upper management and subordinates, then
improved performance may be expected. However, in certain situations, employees may feel
pressured by an excessive task and responsibility, which acts as a demotivator. There are four
important departments in the case company: mechanical maintenance, electrical maintenance,
body works, and administrative.

The respondents stated that they are not permitted to change or switch departments once they
have been assigned to one position, even if they are not interested, unless directed by the general
manager. Furthermore, while there are distinct activities in each department since the obstacles
faced by different cases in this line of work vary, there is a tendency in the organization that
comparable occupations are allocated to similar people over time. The majority of respondents
who are specialists in one activity are satisfied with this arrangement, however some younger
respondents feel compelled to try and learn different activities in order to discover their interests
and expand their knowledge.

4.3 Effect of relationships and security:

Relationships with superiors and peers are also important as deducted from the response gathered
from the employees and literature survey. Similarly, job security has also a positive effect on
employees’ performance as they feel more secured doing their job knowing that they are secured
with their job. That’s why it is better to provide a legal agreement during joining. In this regard
the case company show better practices than other companies in similar line of business as every
employment is conducted following legal procedure. However, majority of respondents are
frustrated by the long trial period at very low price and the slow transition of stages to reach a
stable position as a signed employee of the company. From the respondents it can be understood
that it takes at least two years to get a full-time contractual agreement. Until then most
employees work under the title tentative or trainee technician. In addition to this, the company
follows autocratic leadership style. The leaders of the company tend to lead the employees by
fear rather than motivation. Some respondents mentioned that a mistake or misbehavior may be
followed by an insult or even physical violence. This creates a huge communication barrier
between the management team and low-level employees.

4.4 Effect of authority to make decision:

If the employees are given authority to take decision under their territories of expertise, then it
may very well be used as an enormous motivation tool. They shouldn’t be allowed to take
decision outside their range of operation. In the case company there is deficiency in giving
authority to low level employees. There is a trained in the case company that every decision or
activity should be approved by supervisor or higher management person. This could arises form
fear of responsibility by employees as the consequence of every wrong decision may lead to
punishment.

4.5 Effect of growth opportunity:

If the employees feel that they have a great future in their respective organization, they will work
with more efficiency and compatibility. So, this is also a great motivator. Such motivating should
be established by exemplifying others working in the same organization. However, in the case
company there is low growth opportunity. The information from the respondents show that there
is a certain level in which growth opportunity stalls within the company. Limited positions which
are considered to be better/higher are held by some individuals for a long period of time.
Majority of the employees are junior level since most employees leave the company before
getting promotion. This contradicts with equity theory in a way that most employees feel there is
no fair apritation of their work.
 4.6 Other factors considered by employees to be motivating;

When asked what motivates them the most respondents give a verity of examples that might
motivate an employee. Some of the factors mentioned repeatedly are discussed in tis section.
Some employee says that they are motivated only if there is money elements involved. Some
says non-monetary rewards, benefits appreciation of work act as a positive force and increases
the job performance. And some say non-monetary benefits outside of work such as social
interaction within company keeps their motivation for longer time. In general from the study one
can assume that the most common responses are; High wages, Good working conditions,
Promotion, Job security, Interesting work, Full appreciation of work done respectively in
decreasing order ranked by respondents. This is in accordance with Kovach (1995) research.

XIV. CONCLUSION AND RECOMENDATION

After analyzing the responses of the respondents, it was discovered that the employee motivation
system in the case firm is very low or negatively influencing the employees' engagement to stay
on the job. Despite this, the company employs some tools to increase employee motivation, such
as: providing free meal services; bonus and incentives during holidays; rewarding high-
performing employees at the end of the year or quarter; employee unions that provide essential
household goods such as teff, food oil, sanitary equipment, and so on at a reasonable price.
However, a huge amount of the management team's practices has a detrimental impact on
employee motivation. This may be derived from the fact that virtually all of the respondents react
to the first question regarding their level of satisfaction in such a way that they are unsatisfied
with their current employment and want to quit the firm as soon as possible. It is also estimated
that relatively few staff stay with the business for more than four or five years. The factors that
drive this response can be seen according to Herzberg two Factor theory such that only removing
or eradicating haygin factors is not enough to employees performance unless more motivation
factors are employed. Moreover, in accordance to Maslow’s hierarchy of needs theory this
attitude of the employees can be related to the fact that their needs are not being satisfied in
hierarchal order since psychological and job security is not properly met.