‘’Effects of motional schemes on employee’job satsfacton a case of Awash international Bank,se’’
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Date
2007-07
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A.A.U
Abstract
Human resource has been increasingly considered as the key 01' decisive factor in
organizational development for a multitude of reasons, however , human resource has
become a serious challenge in cultivating a strong and vibrant private sector, the emergence
and development of which is only a recent phenomenon in Ethiopia. The private banks, in
the present state of' stiff com petit ion and intensified globalization , above all, necessitate
highly competent and motivated employees, which is a principal determinant for the growth
and development of the sector.
Cognizant of t he above ('acts as well as existing gaps in the area , which justified the research
agenda, t his study aimed at assessing the effects of motivational schemes on employees' level
of satisfaction t hat determines effectiveness in Awash International Bank.
The study relied on a combination of qualitative and quantitative data from both primary
and secondary sources. A total of 125 employees were communicated with an opinion survey
and 50 key officials working in the 24 branches of the bank were interviewed. Supplementary
data was also obtained from the review of pertinent secondary data like the bank's incentive
policy and other literature relevant to the topic under investigation.
Study results showed that the Bank has been with due recognition of the fact that low level
of job satisfaction and high-staff turnover, mainly resulting from low level o[ motivation has
remained to be a serious challenge for the growth/development of the bank. In effect, the
bank revised the Incentive Policy four years ago and has been applying this to date.
nonetheless, the policy has not yet been revised to adapt to the ever changing external
environment. Level of motivation is positively and strongly correlated with the level of job
satisfaction , which ultimately affects their level of effectiveness in the bank. Furthermore,
the findings indicated the relative importance of an incentive scheme depends on such
characteristics of worker as educational status, work experience, sex, and marital status,
also, price escalation (inflation) was found to be an important factor external to the control of
the bank. In addition to the above, most of the employees, as opposed to the management,
were of the opinion that the bank's incentive policy and working environment is unfavorable.
on top of t his, lack of consistent and fair application of the existing incentive policy was also
fueling the dissatisfaction of the employees. Finally, the fin dings uncovered that those
employees with high level of' education and/or assuming key positions in the Bank were
among the least motivated by extrinsic actors such as bonus and salary increment. Rather,
they were highly motivated by intrinsic factors such as their working relationship and less
supervision and control by the management. The opposite holds true for those employees
assuming lower status, who are mostly motivated by the extrinsic than the intrinsic factors.
The study, based on the findings, forwarded pertinent recommendations for improved level of
motivation and job satisfaction thereby for effective performance and reduced staff turnover
in awash international Bank. These include, inter alia , revising the incentive policy based on
rigorous environmental scanning and employees' participation , enhanced level of
transparency in administration of incentive schemes as well as devising monitoring and
review mechanism.
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Keywords
Awash international Bank, Effect of motivanaltional schemes