Effect of Motivation and its Effect on Employee Productivity: The Case of Lion International Bank S.C.
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Date
2020-06
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Addis Ababa University
Abstract
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
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Keywords
Motivation, Employee Productivity, Banking Industry