A Comparative Study of the Impact of Intrinsic and Extrinsic Rewards on Employees Motivation Between Public and Private Commercial Banks in Ethiopia

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Addis Ababa University


The purpose of this study is to compare the impacts of intrinsic and extrinsic rewards on employees’ motivation between public and private commercial banks in Ethiopia. The target population of the study was the employees of the selected public and private commercial banks of Commercial Bank of Ethiopia (CBE), Awash International Bank (AIB), Cooperative Bank of Oromia (CBO) and Enat Bank. Hence, a mixed method of stratified purposive sampling was used, and 363 questionnaires were distributed to the employees of one public commercial bank and three private commercial banks, out of these questionnaires, 298 were filled properly. As a result, the overall response rate was 82 percent. The major findings of the study reveals that public commercial banks employees in Ethiopia motivated by intrinsic rewards more than the private commercial banks employees, while, private sector commercial banks employees in Ethiopia motivated by the extrinsic rewards more than the public sector commercial banks employees. Besides, the result suggests that with the acceptable P<0.05 significant levels, all the variables of intrinsic rewards are statistically significant. Finally, the researcher suggests that the public and private commercial banks human resource management and the concerned body(s) focus on both intrinsic and extrinsic reward elements to motivate employees better and to achieve the desired end(s). Key words: Intrinsic reward, extrinsic reward and employee motivation



Intrinsic reward, Extrinsic reward and employee motivation