‘’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. I

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Keywords

Awash international Bank, Effect of motivanaltional schemes

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