Abstract:
Motivating employees is critical in organizations in this period of competition due to the fact
that. Organizations need to survive, grow and develop. Consequentially, motivation has become
an issue of strategic importance. The present study was undertaken to examine the effect of
selected motivational practices on Employee Performance in Commercial Bank of Ethiopia.
Questionnaire was an instrument for the primary data collection. It is a quantitative study.
Descriptive statistics based on frequency tables and charts were used to provide information on
the variables. The results are investigated in terms of descriptive statistics followed by inferential
statistics on the variables. A total of 26 questionnaires were distributed to the employees in the
concerned CBE and all of 26 employees completed the questionnaire properly. Hypotheses were
developed to see the effect of all the independent variables (pay/salary, benefit, promotion,
recognition and working condition) on the dependent variable (Employee Performance). The
findings indicated that motivational practices have a positive influence on employee
performance. Furthermore, it provided suggestions to overcome the problems to improve
employees’ performance. Like the CBE must clearly communicate its motivational strategy and
procedure to its employees and the banks should include both financial and non-financial
rewards with appropriate mix. In addition, timely offer and improvement of its motivational
practices must be considered
