THE EFFECT OF MOTIVATIONAL PRACTICES ON EMPLOYEE PRODUCTIVITY: AN EMPIRICAL STUDY OF ADDIS ABABA CITY ROADS AUTHORITY

Abstract

The aim of this study is to examine the effect of motivational practices on employee productivity in Ethiopian public organizations taking Addis Ababa City Roads Authority (AACRA) as a case. An explanatory research design with quantitative research approach was applied to examine the impact intensity of motivational practices on employee productivity. Using the population of 1,731 permanent active employees in AACRA, a sample of 325 was determined of which 302 were retrieved and appropriately filled. The targeted respondents were selected with stratified random sampling technique. The primary data were collected through self-administered questionnaire and analyzed using multiple regression analysis. The reliability of the data collection instrument was calculated and the Cronbach’s alpha coefficient was 0.828. The findings revealed that Wellbeing, Compensation, Training & Development are the most practiced motivational tools. All the four dimensions showed positive and significant relation with employee productivity. Work environment was found to be relatively the highest predictor (β = .353) followed by Compensation (β = .284) and Wellbeing (β = .198). But Training & Development had the least effect on employee productivity (β = .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.