Assessment Of Effectiveness Of Employee Motivation Strategies On Employees’ Performance: The Case Of Ethiopian Electric Power Enterprise

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Date

2015-06

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Addis Ababa University

Abstract

The study was about concerning Ethiopian Electric Power enterprise of the major problems are the issue of motivation and retention, that why are so many voluntary resignations among the employees. The main objective of this study was to assess the effect of motivational strategies on the employees’ performance of EEP enterprise while the specific objectives were: to identify the existing motivational packages; to identify motivation packages influence employee performance; to assess the managers’ perception of what motivate employees? And identify other effective motivational package in order to enhance the performance of the selected EEP employees. The study was based mainly on Primary data in form of questionnaires, interviews for these purpose 317 respondents selected from Ethiopian Electric power head officeusing the stratified sampling method. The population of the study was 1817 workers from different departments. The study used descriptive statistics (frequencies, mean, and percentages) to answer the research questions posed for the study. Chi-Square Test was used to test the significant relation between employee motivation strategies and employees performance. The result obtained from the analysis showed that there existed relationship between employee motivation and the organizational performance. The study reveals that: financial motivational strategies given to employees in an enterprise had a significant influence on the employees’ performance; non-financial motivation strategies had no significant influence on employees performance; enterprise motivation strategies were not inconformity with employees expectation and EEP enterprise employees prefer financial motivation strategies then non financial motivation strategies. This is in line with Maslows hierarchy theorywhich emphasizes that proper in the remuneration package and Vroom’s expectancy theory which states that individuals make choices based on their perceived expectancy that certain rewards will follow tend to produce higher performance from employees. The researcher recommends enterprise should adopt extrinsic rewards in their various departments to increase employee performance. On the bases of these findings, employers are continually challenged to develop pay policies and procedures that will enable them to attract, motivate, retain and satisfy their employees. The researcher therefore suggest that more research should be conducted on the relationship and influence motivational strategies on employees performance using many private and public organizations which will be a handy tool that could be used to provide solutions to individual conflict that has resulted from poor motivation system

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Keywords

Ethiopian Electric Power enterprise, employees, motivational strategies

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