The Employees’ Motivation and Organizational Performance: Evidence from Gondar City Public Service Organizations

Abstract

Improving organizational performance is the central concern of both public and private organizations
across the globe. However, organizational performance is affected by numerous factors among, which
employees’ motivation is one. Thus, the objective of this study was to examine the effects of employees’
motivation on organizational performance of public sectors organizations in Gondar. Employing
quantitative research approach; specifically, descriptive and explanatory research designs, a total of
290(male=182 & female=108) public sector employees involved in the study. Data were collected using
structured questionnaire and analysis was undertaken using statistical software. Specifically, Frequency,
Percentage, Mean, Standard Deviation, Pearson Correlation and Multiple Linear Regression were used
to analyze the data. Results show that employees’ involvement in decision making (r=.97, p<0.01),
recognition (r=.97, p<0.01), work environment(r=.54, p<0.01), pay and incentives(r=.62, p<0.01) and
career advancement(r=.73, p<0.01) have significant positive relationships with employees’ performance.
Moreover, findings show that all explanatory variables significantly affect organizational performance
in the study area. Specifically, 77% of the variation in organizational performance is explained by
employees’ involvement in decision making, recognition, work environment, pay and incentives and
career advancement. Findings also indicate that employees’ involvement in decision making has greater
positive effect followed by pay/incentives and recognition. Finally, recommendations such as managers
and leaders of the public sector organizations in the study area must create an atmosphere where
employees feel satisfied and cooperative at work. And managers should ensure employees are involved
in decision making processes and given a chance to air their views.