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EFFECTS OF EMPLOYEES’ MOTIVATION ON ORGANIZATIONAL PERFORMANCE (A CASE STUDY OF ETHIOPIAN AIRLINES)
This research study examined extensively the twin concept of employee motivation on organizational performance from the points of view of various theorist actively involved in the field of organizational behaviour and management.
The organization was chosen for the case study because of its relevance in the airline industry in Africa.
A total population of 100 respondents were chosen from the organization for simple random sampling techniques. The major instrument used for the collection of data were personal interviews, administration of questionnaires, library research, internet search, and textbooks.
Four hypotheses were formulated. The data obtained were sorted and analyzed using the simple percentage for bio-data and chi-square for testing the hypotheses. The study reveals that factors that affected employee motivation on organizational performance, the benefits, the advantages to the growth and effectiveness of the organization.
In summary it was recommended that managers in the airline industries of the economy should ensure that their organizations initiated programmes and incorporate policies that would enable employee to seek and achieve defined goals, while maintaining their tenure in the organization.
TABLE OF CONTENT
Title page i
Table of content vi
1.1 Background of the study 1
1.2 Statement of the problem 2
1.3 Objective of the study 3
1.4 Research questions 4
1.5 Statement of the hypothesis 4
1.6 Definition of terms and concepts 5
1.7 Scope of study 6
1.8 Limitations 6
2.1 Introduction 8
2.2 Conceptual framework 11
2.3 Features of employee motivation on organizational
2.4 The objective of the motivation on organizational
2.5 Principles and values behind employees motivation 22
2.6 Employee motivation and organizational performance 22
2.7 The importance of employee motivation 23
3.1 Introduction 26
3.2 Research questions 26
3.3 Sources of data 26
3.4 The study population 27
3.5 Sampling technique and size 27
3.6 Research instrument 27
3.7 Method of data collection 28
3.8 Statement of the hypotheses 28
3.9 Method of data analysis 29
PRESENTATION AND ANALYSIS OF DATA
4.1 Introduction 31
4.2 Data presentational and analysis 31
4.3 Respondents characteristics 32
4.4 Analysis of research questions 34
4.5 Testing of hypotheses 47
SUMMARY OF FINDING, CONCLUSION AND RECOMMENDATION
5.1 Introduction 57
5.2 Summary of findings 57
5.3 Conclusion 58
5.4 Recommendations 59
5.5 Contributions to knowledge 61
1.1 BACKGROUND OF THE STUDY
The term motivation is derived from the Latin word movere, meaning “to move”. In this context, motivation represents “those psychological processes that cause the arousal, direction and persistence of voluntary actions that are goal directed” Terence Mitchell (1997). Managers need to understand these psychological processes if they are to successfully guide employees toward accomplishing organizational objectives. Let examines the historical roots of motivational concepts.
The concept of motivation is based on the idea that every human experience involves a causation factor and an effect from that cause. One authority maintains that there are seven essential causes. These are: (i) The urge arising from bodily needs; (ii) The urge to succeed and achieve; (iii) The urge to avoid failure and disappointment; (iv) The urge for recognition and approval; (v) The urge for security, (vi) The urge to experience something new and different; and (vii) The sex urge. The manager must be aware of these motivating forces and should use the knowledge of these forces in carrying out his assignments.
The concept of motivation centres on the idea that motivation is shown by a change in behaviours as a result of experience. The manager must know the various elements of human behaviour, which are the foundations of motivation. There are seven aspects of motivation advanced psychologists. These are: (i) situation, (ii) personal characteristics, (iii) goals, (iv) interpretation, (v) action, (vi) consequence, and (vii) reaction to thwarting.
The seven aspects function as individuals strive for goal attainment. Earlier experience has prepared the individual on certain ways to be personally ready for new experiences when new situations are presented, the person will interpret this new situation and respond in such a way based on the consequence that he has experienced in similar situations in the past. Previous consequences, in similar situations will bring personal goals closer and, as a result, increase personal readiness to accept the new situation. Favourable consequences do not always result and, when this occurs, the individual’s effort is said to be thwarted for lack of goal attainment.
The manager must focus on teaching employees to accept and operate new procedures in such a way that none of them feel thwarted. He must also be realistic enough to know that this ideal cannot always be attained and should give enough thought to ways that might turn employees away from non-adaptive behaviour.
Apart from motivation and organizational performances, the organization needs to be able to evaluate effectively the employees who operating the work under review. The types of people that will be needed in the revised operation must be envisioned. Extensive job analysis, supported by appropriate job descriptions, must be obtained for the old and new operations. He also has to judge the limits occasioned by personal restraint based on the analysis. It is impossible to operate favourably without people having most of the requisite abilities.
1.2 STATEMENT OF THE PROBLEM
Every research is aimed at providing solution to an identified problem, the following problems are identify with employee motivation on organizational performance.
Supervision. To decrease demotivation in this area, you must begin by making wise decisions when you appoint someone to the role of supervisor. Be aware that good employees do not always make good supervisors. The role of supervisor is extremely difficult. It requires leadership skills and the ability to treat all employees fairly.
Salary. The old adage “you get what you pay for” tends especially to be true when it comes to staff members. Salary is not a motivator for employee, but they do want to be paid fairly.
Interpersonal relations. Remember that part of the motivation of being employed is the social contact it brings, so allow employees a reasonable amount of time for socialization (e.g., over lunch, during breaks, between customers). This will help them develop a sense of camaraderie and teamwork. At the same time, you should crack down on rudeness, inappropriate behaviour and offensive comments. If an individual continues to be disruptive, take charge of the situation, perhaps by dismissing him or her from the practice.
1.3 OBJECTIVES OF THE STUDY
The objectives of this study are as follows:
a. To identify the factors that motivate employee of Ethiopian airlines
b. To examine the effect of these factors on organizational performance.
c. To identify the factors that demotivate employees of Ethiopian airlines.
d. To identify other factors that influence organizational performance of Ethiopian airlines.
1.4. RESEARCH QUESTIONS
During the course of the research, the following are likely questions that needed proper attention:
a. What are the factors that motivate employees of Ethiopian airlines?
b. What are the factors that effect the performance of Ethiopian airlines?
c. How to identify the factors that demotivate the employees of Ethiopian airlines?
d. How to identify other factors that influence organization performance at Ethiopian airlines?
1.5. STATEMENT OF THE HYPOTHESES
This study aims at examining the effects of employee motivation on organizational performance at Ethiopian airlines. The study was undertaken in a very critical manner in order to ascertain the professional effects of employee motivation on organizational performance.
The following Hypotheses were tested:
HO: Our incentives push us to perform our jobs efficiently
H1: Our incentives do not push us to perform our jobs efficiently
HO: Leadership in Ethiopian airlines enhances profitability
H1: Leadership in Ethiopian airlines does not enhances profitability
HO: Promotion in Ethiopian airlines enhances low labour turnover
H1: Promotion in Ethiopian airlines does not enhances low labour turnover
HO: Performance recognition in Ethiopian airlines increases efficiency
H1: Performance recognition in Ethiopian airlines does not increases efficiency
1.6 DEFINITION OF TERMS AND CONCEPTS
The following terms are defined as they appear in these study:
(a) Motivation: It refers to the psychological processes that arouse and direct goal directed behaviour.
(b) Service: This is a system that provided what the public needs, organized by the government or a private organization or company.
(c) Efficiency: This indicates the extent to which the organization produces a given output with the least possible use of the resources.
(d) Effectiveness: This means achieving results.
(e) Productivity: This is the ratio of output to input be it labour or other resources.
(f) Quality: (i) Meeting concrete demands and expectations e.g. Time, quality specifications, finances, defect rates, functions and safety guarantee.
(ii) Meeting emotional expectation and desires e.g. attitudes, commitments, behaviour, attention, loyalty, credibility, consistency.
(g) Environment: The condition that affect the behaviour and development of the organism.
(h) Finance: This indicates the money used to run a business, an activity or a project.
(i) Mechanism: This means a system or method for achieving a particular goal or goals.
1.7. SCOPE OF STUDY
The central aim of this research study is to identify, highlight and analyze the relationship between employee motivation and organizational performance.
Moreover, the scope of the project will cover virtually the problems militating against employee motivation on organizational performance with specific reference or emphasis on Ethiopian airlines. These problems are enormous, but this paper will limit itself to ones identified in the sector spanning over the period of four years from 2005 to 2009.
In carrying out a proper and thorough research the understated constraints were experience.
Such as epileptic supply of electricity, the reluctance attitude of the respondents, transport fare, finance constraints, accessibility to the relevant information through website, time factor as a result of commitments to the researchers lectures, family problems, his job and some communication problems.
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