EFFECTS OF MOTIVATIONAL FACTORS ON EMPLOYEES PERFORMANCE THE CASE OF ETHIOPIAN ELECTRIC UTILITY ADDIS ABABA, ETHIOPIA

Abstract

The purpose of the study was to investigate the effect of extrinsic and intrinsic factors on employee’s performance. The study was conducted in correlation research design. The populations for the study were employees of East Addis Ababa Region. The study population comprised a total of 190 employees from various functions. Simple random sampling technique was used to draw from sample size of 45 respondents. The data collection instrument was a structured questionnaire developed by the researcher. Descriptive statistics including bar graphs, frequency and percentage tables were used to present the results of the study. The hypotheses testing were done with Pearson Product Moment Correlation Coefficient and multiple regressions modal. The result obtained from the analysis showed that extrinsic motivational factors given to workers in an organization has a significant impact on the workers performance. These extrinsic factors include salary, work condition, fringe benefits and bonuses among others. The study also identified intrinsic factors that affect employee performance. These there is relationship existed between intrinsic motivation and employees’ performance, the intrinsic factors included in the study training, recognition, and responsibility. The researcher recommended that the organization should adopt extrinsic rewards to increase productivity. The study also recommended that the organization should acknowledge and exploit the extrinsic factors in their human resource management practices particularly in the strategic human resource management to ensure that the employees are well motivated to perform their tasks.