DEBRE TABOR UNIVERSITY

FACULTY OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

ASSESMENT OF EMPLOYEE MOTIVATION PRACTICE

INCASE OF COMERSCIAL BANK OF EHIOPIA AT GUNA
BRANCH
ARESEARCHPROPSALSUBMITTED TO PARTIALFULLFILMENT
OFTHE REQUIREMENT FOR (BA) DEGREE IN MANAGEMENT
By:
Name Id No
1. Afework Ajaye---------------------------------071/09
2. Getachew Awoke------------------------------347/09
3. Mekdes Bahta----------------------------------503/09
4. Muluken Shitaw--------------------------------583/09
Advisor: Tilahun Lakew (MBA)

FEBRUARY, 2019
DEBRE TABOR, ETHOPIA
 Abstract
This study was conducted to Assess employee motivation practice in the case of
commercial bank of Ethiopia Guna-branch. This study provides effective motivational
strategies for the organization to motivate its employees and enhance the overall
performance of the organization. The literature review may help to understand the
various theories on the motivational practices of the organization. The researcher used
census sampling technique to gather data from both the primary and secondary source
of the organization. The researchers was developed questionnaires to collect primary
data regarding what was made employees motivated in their organization. The study will
be conducted on the whole employees of the organization and the data will be collected
data from “23” respondents by using questionnaires and the data will organized by using
descriptive method. It will be established that the staff of commercial bank of Ethiopia
Guna- branch will be motivated but management needs to allocate the various incentive
mechanism in order to satisfy all employees in the organization.

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 Table of Contents

Content page
Abstract.............................................................................................................................i

Chapter One.........................................................................................................................1
1. Introduction..................................................................................................................1

1.1 Background of the study............................................................................................1

1.2 statement of the problem...........................................................................................3

1.3. Research questions....................................................................................................3

1.4 Objectives of the study..............................................................................................4

1.4.1 General Objectives of the study..........................................................................4

1.4.2 Specific objectives..............................................................................................4
1.5 Significance of the study...........................................................................................4

1.6. Scope of the study.....................................................................................................5

1.7 Definition of key terms..............................................................................................5

1.8 Organization of the paper..........................................................................................5

Chapter Two........................................................................................................................6
2. Literature Reviews.......................................................................................................6

2.1 Overview of motivation.............................................................................................6

2.2. Nature of motivation.................................................................................................6

2.3 Methods of motivation...............................................................................................7

2.4 Rules for effective motivation...................................................................................7

2.4.1. Factor that affect motivation in work place...........................................................8

2.4.2 Theories of motivation............................................................................................9

2.4.3 Maslow’s hierarchy of needs provide the following facts......................................9

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 2.5 Adorers ERG theories................................................................................................9

2.5.1. Mc Cleland’s theory............................................................................................10

2.6 Staff motivation.......................................................................................................11

2.7 Quality of working life............................................................................................12

2.8. Staff Benefits..........................................................................................................12

Chapter Three....................................................................................................................14
3. Research Design and Methodology...........................................................................14

3.1. Research Design.....................................................................................................14

3.2 Data type and source................................................................................................14

3.3. Sampling and sample size determination...............................................................14

3.4. Methods of data collection......................................................................................15

3.5. Data analysis and presentation method...................................................................15

3.6 Time and budget schedule.......................................................................................16

3.6.1 Time schedule...................................................................................................16

3.6.2 Budget schedule................................................................................................17
References......................................................................................................................18

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iv
Chapter One

1. Introduction

1.1 Background of the study

Motivation is the energizer of human behavior or the process of stimulating action or it is
a complex combination of individual needs. Drives tension discomforts and expectation.
If the organization can motivate employees they become effective problem solvers and
to meet and exceed customer expectations employees have a desire to be a part of
company with positive encouraging work environment motivating strongly working
relationships during the work will provide on environment that employees will want to
be a part of this involves focusing employees on achievement and maintaining the equity
in work plays this idea of equity as to do with the participation of employees have their
importance in relation other within the company. If employees do not believe and they
are treated with equity they will not perform well. Clear motivational strategies and
polices should be formulated in order to create a good working environment and
motivated employees that would in turn lead to productivity (Stephen, 2003).
Motivational factors like Payment/salary, promotion, recognition, employee benefits,
work content, and working condition are applied to assess the motivational practice,
(Bernardino, 2008)
Commercial bank Ethiopia plays important roles in worldwide economies and their
employees are the best sources of delivering good services to their customers. Excellent
services provided and offered by employees can create a positive perception and ever
lasting image in the eyes of banks’ customers. The motivation of a banks’ employee
plays a major role in achieving high level of satisfaction among its customers (Petcharak,
2004). Commercial Bank of Ethiopia is the largest government owned commercial bank
in Ethiopia. The bank provides a variety of integrated services ranging from deposit,
credit, trade services, card banking, and foreign banking to the new and modern internet
and mobile banking services. The Commercial Bank of Ethiopia has opened its 1000
branch recently, making it the first bank to achieve this grand number. Commercial Bank

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of Ethiopia has more than 20,000full time employees. Out of which, the majority of them
are employed in the 1000 branches and have direct contact with the banks customers
(bank manager).The organization faces a number of challenges related to human resource
including problems with employee work motivation which has a direct impact on
employee performance. The performance the organization affected by different factors
such as motivation working condition, job security taking into this account motivating
employees to the organization get a competitive advantage. There is no question that
money the most important motivator for employee performance, but it is important for
the company to find other ways to motivate. This involves getting to know there
employees what drive them. Then making sure managers utilize appropriate motivational
techniques with each employee, (Bernardanin, 2008).The objective of this study is to
assess the current motivational practices and strategies implemented in the case of
Commercial Bank of Ethiopia. The researcher will use relevant theories in the field of
employee motivation practice with in Commercial Bank of Ethiopia at Guna branch.

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1.2 statement of the problem
Motivation is one the essential of the organization in quality of productivity the
organization manager must focus on motivation of employees. This is due to the
complexity of many problems regarding to employee motivation practice. Employee
motivations in the organization are highly interelated with other variables like job
Satisfaction because the organization can be sustainable if its employees are effectively
motivated. The motivational tools that management generally used to increases employee
motivation are financial and non-financial motivation. Financial motivation includes like
rewards, price rate wages and non-financial motivation also includes promotion status,
responsibility and making; the job pleasant.
According to Badu,(2010), as sighted by Joyceeasel mc for son, the absence of effective
motivation system results demoralizes employees, ill treatment of staff, law performance
and productivity of the organization. At the same fashion there are different problems
regarding to employee motivation in commercial bank of Ethiopia at Guna branch. Such
as there is no good opportunity for promotion and no additional reward system for
employees who perform better, lack of recognition of workers achievements, work over
load, and unwillingness of managers to participate employees in decision making
process. The above problems aroused from employees the organization and this problem
results dissatisfaction of employees moral and increase employee complaints. Therefore
this study focuses to assess employee motivation practice in handling those problems in
commercial bank of Ethiopia at Guna branch.

1.3. Research questions

1. What are the problems related to motivation in commercial bank of Ethiopia at Guna-
branch?
2. What methods does commercial bank of Ethiopia Guna- branch use to motivate its
employees?

3. What are the motivational policies employed in commercial bank of Ethiopia at Guna
branch?

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1.4 Objectives of the study

1.4.1 General Objectives of the study

The general objective of the studies was to assess employee motivation practice in the
case of commercial bank of Ethiopia at Guna- branch

1.4.2 Specific objectives

1. To identify the problem related to motivation in commercial bank of Ethiopia at
Guna- branch

2. To identify what methods used in order to motivate employees of commercial

bank of Ethiopia at Guna- branch

3. To explore the motivational policies employed in commercial bank of Ethiopia at

Guna- branch

1.5 Significance of the study

This study may have different significant for different beneficiary bodies such as
organization, researchers, and other researchers

1. For the organization :- it enables the organization to know its strength and weakness
and then to follow the way to motivate its employees and increase productivity the
study also provide relevant information to those various level of management.
Employees and labor union leads to understand the importance of motivational
factors on performance of employees. It also creates awareness to minimize the
problems related to employee motivation practice.

2. For the researchers: - the researchers get knowledge about the study and experience
on conducting such assessments.

3. For other users: - it helps other researchers as he/she can take this study as a
reference for the conducting other research.

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1.6. Scope of the study
The Scope of this study is delimited to the assessment of employee motivation practices
in the case of commercial bank of Ethiopia Guna- branch only for simplicity of doing
our research and to achieve the research objectives. In addition the study will focus on all
employees. Because of reaching this employee is suitable, so the scope of the study
limited only on commercial bank of Ethiopia Guna- branch.

1.7 Definition of key terms

Motivation: refers to the result of processes, internal or external to the individual that
arouse enthusiasm and persistence to pursue a certain course of action.
Promotion: refers to opportunities that organizations offer for advancement. It creates the
opportunity for personal growth, increased levels of responsibility and an increase on
social standing. (Robbins and Judge, 2013)
Recognition: acknowledgement one received from his/her supervisor. Are special awards
for employee achievement is less common and is associated with performance but
usually operated separately and where many of the rewards are non-cash. (Steredwik,
2005)

1.8 Organization of the paper

The paper consists of five chapters the first chapter present the introduction parts this
includes background of the study, statement of the problem , objective of the study,
scope of the study, significance of the study, definition of key terms and the second
chapter present review literature about employee motivation practice in the organization,
and the third chapter includes research methodology which deals with research design
data type and source , sampling and sample size determination, method of data
collection, data analysis and presentation method, the fourth chapter includes data
analysis and presentation whereas summery of the findings conclusion and
recommendation include at the last chapter.

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Chapter Two

2. Literature Reviews

2.1 Overview of motivation

Motivation is the psychological process that gives behavior, purpose and direction. It is
internal drives to satisfy unsatisfy needs.(Kreutzer, 2001),Robbins, (2003) explain
motivations those a psychological process that cause the arousal direction and resistance
of voluntary actions that are goal directed.

2.2. Nature of motivation

Motivation is concerned with the direction function of management, so the nature of
motivation can be understood from the following point’s motivation according to
Quartered by (Mullins, 2005), as follows

A. Unending process: - human beings have a number of wants. Those wants induces a
man or human being to work. A u want cannot be satisfied at one time due to this
fact motivation has never end process.

B. The individual is wholly motivated:- motivation is related to psychology the basic

needs of man determine motivation to great extent all those needs are inter-related
but not separated for each other.

C. Motivation can be financial or non-financial motivation includes increasing wages,

allowances, bones, pre request etc. whereas non-financial motivation includes
recognition, praise, giving more responsibility and inducing to participate in decision
making process.

D. Goals are motivators: man works to achieve individual goals are achieved. Theywill
no longer interest to work.

E. Motivation can be positive or negative positive motivation means use of incentive,

the incentive may be financial or non-financial. Whereas negative motivation means
penalties such as demotion, terminations and so on.

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2.3 Methods of motivation
A. Intrinsic motivation: is a direct relationship between the workers and the task
and his usually applied fillings of achievement, accomplishment, challenge and
competence. Derived from performing ones job are example of intrinsic motivation
(Mullins, 2005).

B. Extrinsic motivation:- Is stems from work environment external to the task and
is usually applied by someone other than the person being motivated, pay, and
fringe, benefit company policies and varies form of supervision.

C. Positive motivation: - involves proper recognition of employee’s effort and

appreciation of employee’s contribution towards organizational goal achievements.

D. Negative motivation: - is based up on use of force, power and treats. The fear of
punishment or unfavorable, consequence affects the behavior change. red Lutlans.
(1998)

2.4 Rules for effective motivation

According to Sheila (2004) the following rules are used by the managers to effectively
motivate employees

 Every individual is different from the other individual differences

respected

 Appreciate good work in public and criticize the bad work

 Give suggestion rather than order

 Encourage participation of subordinate in decision making

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2.4.1. Factor that affect motivation in work place
According to scholar Leigh Goes, (2001) there are five factors that the employees
motivation in the work place. Those are

A. Cultural factors

If an organization cultural atmosphere is pledged with negativity this can be disasters as

ones cultural mind set is in place it is difficult to change leaders how invest time and
effort in to developing positive working environment often find their employees are
happier and become part of a company culture.

A. Environmental condition

Environmental conditions tends to impact motivation in the work place this includes
temperature lightning an ergonomics and tools the availability of moderate temperature
and good arrangement of materials and different tools increases motivation of
employees.

C. Reward
Many organizational studies over the years have suggested that reward play a rule for
employee motivation. Employee who lack motivation are more likely to be careless and
sloppy with their work but on the other hand employees who are valued and provided
some sort of initiative are more apt to take pride for work.

D. Security and job advancement

Job security result in higher motivation employees who spend each day working whether
or not they are going to get the exe may become too distracted to be motivated, or could
overtake connection abilities.

Respect: - lack of respect is going likely results in poor motivation as no one like to
be treated poorly or with disrespect. Staff members who get respect from their
bosses will be more apt to respond and go out their way to help the organization
to make its mission and goals.

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2.4.2 Theories of motivation
Human behavior is a complex in nature motivational theories are not universally accepted
to explain human behavior but they help managers to improve their understanding of
why people behave as they do. Theory of motivation focus on needs and behavior they
enables managers to understand motivated behavior of employees so that they pay
attention to meet those methods (Sheila rich 2004).

2.4.3 Maslow’s hierarchy of needs provide the following facts

According to(Sheila rich.2004).Maslow hierarchy of need provide the following facts
1. Physiological needs: - involves needs for basic things like food, water, shelter, and
sex. When this fundamental needs are not meet no other higher level needs will
act as a motivation

2. Safety needs: - includes protection from physical harm economic disaster and
futuristic needs in that they represent the desire to insure ability to physical needs

3. Social need:- it is a need for belongingness and live that can in to play only when
physical and safety needs are reasonably secured

4. Esteem needs: - include self respect and filling of competency and the need for
recognitions and administration etc.

5. Self-actualization need:- is the process of making actual person perception on his

or her real life. Self-actualization impure to be come when one is capable of
becoming achieving ones full potential in the most creative self motivated way.

2.5 Adorers ERG theories

The ERG need theory developed by Clayton Alder person is are firemen of mass law’
needs hierarchy instead of Maniocs give needs ERG theory condense this gives need in
to three

A. Existence needs:- These needs are roughly compatibilities to the psychological and
safety needs of Maslow models are satisfied primarily by material incentive this

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 includes the need for shelter physical and safety from the threats own people
existence and well-being.

B. Relatedness needs: - this roughly corresponds to social and esteem in Maslow

hierarchy these needs are satisfied by personal relationship and social interaction
with others

C. Growth needs: - this are needs to develop and grow and reach the fixe potential the
person is capable of reaching their needs are fulfilled by strong potential
involvement in the organizational environment and look for new opportunities and
challenge ERG are different from Maslow’s in proposing that may be motivated by
more than one kind of needs at the same time. While Maslow propose that in
hierarchy needs a person will satisfy the lower level needs before move up the next
level needs and will stay at the need until it is satisfied.

2.5.1. Mc Cleland’s theory

David Mc Cleland’s theories and his associate John at Kinston proposed another
important theory of motivation and achievement of motivation according to theory
organization offer opportunity to satisfy at least three needs

A. the need for achievement:- achievement motivation is drives some people have be to
overcome challenges and obstacles it the purist of goals un individual with this goal
drives wish to develop in grow up the leader of success characteristics of achievement
oriented Davis, (2004).

B. need for affiliation: - affiliation motivation is a drive to people on social basic

affiliation oriented people work better than when they are complemented for their
favorable attitude and co-operation they receive inner satisfaction from being with
friends and they want the job freedom to develop their relation.

C. need for power: - a power motivation is drive to influence people and change
situation power motivate people with to create an impact on their organization and are
willing to taking risk to do so once this power is obtained it may use either

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constructively or destructively power motivated people make excellent managers if their
drive are per instructional power instead of personal power.

2.6 Staff motivation

Some factors which promote motivation create a conductive working environment and
develop policies and practices that will result in a higher level of performance of
employees. According to (Mullins, 2005,) the following are some of the major
motivational factors.

A. Training
Is relevant to effective use of human resources because it is one of the experience
creativity and other introductive enhancing attitudes that are embedded in a person staffs
are crucial but expensive resource. In order to sustain economic and effective
performance it is important to optimize the contribution of employees to the aims and
goal of the organization.

 Training can increase the confidence motivation and commitment staff.

 Provide recognition enhanced responsibility and possibility of increase pay

and promotion.

 Giving a feeling of personal satisfactions and achievement and broaden

opportunities for career and

 It helps to improve the availability and quality of staff.

B. Participations
One technique that has been given strong support is the increased awareness and use of
participation consequently the right kind of participatory rules both motivation and know
lodge valuable for the organization success. Also participation is a means of recognitions.
It appeals to the need for afflation and acceptance and give employees a sense of
accomplishment.

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2.7 Quality of working life
(Martocchio.2003) suggest that the most interesting approaches to motivation are the
quality of working life. This is a system approach to job enrichment. It is an
interdisciplinary field insuring and action. It is a means of increasing productivity and
reducing inflation.

The system of job enrichment involves

 Giving freedom to workers in deciding about such things as work methods

 Giving employees feedback on their job performance.

 Encouraging participation of subordinates and instruction between employees.

 Involving workers in the analysis and change of physical aspects of work

environment.

2.8.Staff Benefits
According to (martocchio.2003) compensation packages offered by employees other than
hourly wage or salary includes paid vacation, medical insurance coverage, reimburse
segment all these are benefits for employees as they serve as motivation of employees.

A. Health insurance coverage

Employer sponsored program provide employees the financial means to afford expensive
health care services, health insurance coverage varies by size, industry, group and union
presence most large company are more likely to offer health benefits than smaller
companies a healthier work force should experience lower incidence of sickness
absenteeism. This allows the organization to inform sponsoring benefits.

B. Social security (pension plan)

It is a system by which member of a society pay money up to a common fund from

which payment are made to individuals in times of unemployment illness and old age.
(Martocchio.2003) explains it as the sum of employee contribution and that of the
employer. The main idea behind the scheme according to (martacchio.2003) is to

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 fund all employees account sufficiently well so that each employee will likely achieve
a similar hypothetical retirement benefit.

c. Transportation service

Some employers sponsor transportation service to facilitate travel from home to work and
back to help their employees manage dial of challenges (Martocchio.2003). Employees
may sponsor public transportation or subsidized vans or buses that transport employees
between their homes and work place employers generally offer this service to promote
recruitment and retention and to reduce tardiness and absenteeism due to transportation
difficulties. This serves as maturation to most employees as it saves then in using their
time more productively.

D Bonuses
Some organization have a practices of making additional payments to employees at a
particular points in the year they are normally payable in relation to some specified
criterion such as profit or productivity such payments may be in kind which may be extra
cash or goods during Christmas period to all employees and this is graded by seniority
bonuses of these take several forms like continued goo service bonus, merit bonus and
profit related bonus of these kinds are normally traditional

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Chapter Three

3. Research Design and Methodology

3.1. Research Design

In order to answer our research question and to reach a conclusion the researchers will
use descriptive research design with both quantitative and qualitative strategy through
questioner survey in order to undertake the study in a pre-determined time period. The
rationality to use descriptive type of research design is to describe the states of affairs as
it exist at present and the researcher has no control over variable but only report what
has happened or what is happening and to describe employee motivation practice in the
case of commercial bank of Ethiopia Guna branch as it exists as the time of study the
researchers under take to use this kind of research design considering the desire to obtain
first hand data from the respondents.

3.2 Data type and source

The researchers will use both primary and secondary data to achieve the expectation of
this study. Primary data will be collected from employees of the bank who are working
in commercial bank of Ethiopia Guna branch. The secondary data will be collected from
published and non-published materials of the organization

3.3. Sampling and sample size determination

For simplicity of doing our research the target population of this particular study
comprised all employees of commercial bank of Ethiopia Guna branch. Thus the study
depends on the entire available employees in Commercial Bank of Ethiopia in Guna
branch only. The researcher will use census sampling technique to collect data from the
whole employees because the number of employees in the organization is small so, no
need of taking and using sampling method because the overall members of employees or
target population of commercial bank of Ethiopia at Guna branch are “23”

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3.4. Methods of data collection
The researcher will use both primary and secondary source of data. The primary data will
be collected by self-administered questioners for employees. And secondary data will be
collected from organizational records and source written about the organization and the
researcher will use interview to gather information from employees of the organization.

3.5. Data analysis and presentation method

The data for this particular study will be analyzed by using simple descriptive tools like
percentage, table, and frequency for simplicity and to provide relevant data the
researchers will use tables to present and analyze the finding. Once the necessary analysis
accomplish the presentation of data will follow. After analyzing and presenting the data
finding conclusion and recommendation is made on the data gathering through
questionnaires by using close ended questionnaires from the respondents

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 3.6 Time and budget schedule

3.6.1 Time schedule

No Activity Nov Dec Jan Feb Mar Apr May June

1 Title selection xxx

2 Title approval xxx

3 Literature finding xxx

4 Proposal writing xxx

5 First draft proposal submission xxx

6 Final proposal submission xxx

Presentation of proposal xxx

8 Data collection xxx xxx

9 Data analysis and interpretation xxx

10 First report writing xxx

11 Final research writing xxx

12 Research presentation xxx

3.6.2 Budget schedule

Item Quantity Unit cost Total cost

1. Paper 300 0.50 150

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 2. Pen 5 6 30
3. Pencil 1 2 2
4. Binder 2 10 20
5. Flash 1 250 250
6. Ruler 1 5 5
7. Rubber 1 5 5
8. Transportation - - 160
9. Printer 45 page 1.5 67.5
10. Typist 45 page 5 225
11. Telephone 100 min 0.5 50
12. Internet 200 min 0.25 50
13. Photo copy 45 page 0.75 33.75
14. Question duplication 29 0.75 21.7
15. Other expense - - 100
. Total 1170

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Badu, (2010), organization behavior 4thedition New Yorks.

Chuck William, (2005), management 4th edition, Mc Grow, USA Washington.

Davis, (2004), organizational behavior Sandigo state university.

Fred, Lutlans, (1995) introduction to business, 4th edition USA Washington

Kreutzer (2001), introduction to business, 2nd edition Florida Atlantic University California

Laurie J.mullin (2005), management and organizational behavior, 5th edition

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Leigh goess El, (2001) management 5th edition Canada

Martocchoi, (2003), introduction to management 5 th edition, calformal words worth

publishing company.

Robbins, (2003), organizational behavior, 10th edition, USA, Sandiego state university

Robbins, S. and Judge, T(2013) organizational behavior, New Jersey Pearson educated, Inc.

Sheila rich, paper Mast in y, (2004), motivation management 7thedition, New York.

Stephen P. Robbins, (2001), organizational behavior San Diego state university

Stephen, Robbins, (2003), management 7th edition Canada.

Steven1, Machine, (2001), organizational behavior, 4th edition, M.C Grow, USA Toronto

Stredwick, J. (2005) introduction to human resource management 2nd ed. London.

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I