Abstract:
In today’s highly competitive and unpredictable nature business environment, all commercial
banks operate in a severe rivalry due to factors, like globalization, entry of large number of
commercial banks in the market, fast technological development, and similar services of banks
and applied of various motivational practice in the area of human resources. For this reason,
motivation practice is crucial for success of organization and improving employee’s
performance are vital for all commercial banks. The study was conducted to examine the effect
of motivation practice on employee’s performance the case of commercial banks at Debre birhan
town. In this study explanatory and descriptive research design was employed to achieve the
objective of the research. Quantitative and qualitative (mixed), research approach and cross sectional study is chosen in this research. Around 290 commercial bank employees were
involved in this study. In the selection of sample population, the researcher used simple random
sampling and for the selection of commercial bank branches purposive sampling was used. The
study confirmed that 98.7% of the variability of employee’s performance is explained by
motivation practice. The finding also show that all motivation practice, namely salary,
recognition, work environment, promotion, reward and bonus have statistically significant
positive effect on employee’s performance. The study recommends that, in order to improve
employee’s performance all commercial banks at Debre Birhan town should strive to integrate
various motivation practice for maximum motivation effect to the employee’s performance. This
study was examined six motivation practice namely salary, recognition, work environment,
promotion, reward and bonus effects on employee’s performance. The future researchers can
study by including other factors like leadership style, job rotation and organizational goodwill
that may have effect on employee’s performance.
