Effects of Motivation on Employee Performance in Public Enterprise: In the Case of Ethiopian Shipping and Logistics Services Enterprise

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Addis Ababa University


The study scrutinized the effect of motivation on employee Performance of selected Head office departments in Ethiopia shipping and logistic service enterprise. The study used descriptive statistics (frequencies, and percentages) to answer four research questions posed for the study the result obtained from the analysis showed that there existed relationship between motivation and the employee performance. Motivation is one of the most critical elements in the area of Human Resources Management. The study reveals that PDB bonus, extrinsic and instinct motivation given to employees in an enterprise has a significant effect on the employee performance. This is in line with equity theory which emphasizes that fairness in the remuneration package tends to produce higher performance from employees. Moreover, the study recommends that because motivation factors like attractive salary, training and good working environment to any employees is highly essential, it is important for Ethiopian shipping and logistic service enterprise to strength them all. Based upon the document analysis the enterprise is profitable, hence it is recommended that Ethiopian shipping and logistic service enterprise should adopt housing allowance in its various departments to increase employee performance. When employees are involved in making decisions that concern them, their performance is expected to significantly increase than when employees are not involved in making decisions concerning them this is absence in Ethiopian shipping and logistic service enterprise and I recommend the enterprise to reconsider it. Labor unions should be more active in defending the right and privilege of employees in Ethiopia shipping and logistic service enterprise since it is pressure group should take advantage of pluralism and demand to be involved in employee motivational rewards. And it should play its role being connectors between employees and their employer.


A Thesis Submitted to the Department of Public Administration and Development Management of Addis Ababa University in Partial Fulfillment of the Requirements for the Degree of Masters in Public Management and Policy (MPMP)


Employee performance, Ethiopian shipping and logistic service enterprise, Motivation