Effect of Motivation and its Effect on Employee Productivity: The Case of Lion International Bank S.C.

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Addis Ababa University


Motivating employees is a prominent managerial tool to enhance workforce productivity. Wellmotivated staffs are the most vital asset in which enhancement of organizational productivity and competitive excellence make a difference. Accurate understanding of employees’ motivation plays significant role on effective implementation of critical business policies and strategies. Failure in these regards may cause either no impact at all or damage the reputation of the organization irreversibly. The aim of this study is, thus, to assess the effect of motivation on employee productivity in Ethiopian banking industry taking Lion International Bank (LIB) as a case study. An explanatory research design was applied to determine the relation and impact intensity on employee productivity, Permanent employees in LIB were target population and conducted the survey on a total of 302 randomly selected respondents. The analysis was carried out using SPSS 20.0 application software. The findings revealed that work environment; Staff Relations and Compensation are the most practiced motivational tools. All the five dimensions showed positive and significant relation with employee productivity. Work environment was found to be relatively the highest predictor (  .353) followed by Staff Relations (  .307) and Compensation (  .284) and Wellbeing (  .198). But Training & Development had the least effect on employee productivity (  .112). All the dimensions are good predictors of productivity on which the managements should exert more effort to improve its motivational schemes based on need assessment and focus on monitoring its implementation as well



Motivation, Employee Productivity, Banking Industry