THE EFFECT OF PROMOTION MANAGEMENT PRACTICES ON EMPLOYEE’S MOTIVATION IN COMMERCIAL BANK OF ETHIOPIA, WEST ADDIS ABABA DISTRICT

Abstract

The aim of this study was to investigate the effect of promotion management practices on employee’s motivation in Commercial Bank of Ethiopia, West Addis Ababa District. Descriptive and explanatory research design was employed to carry out the study along with mixed approaches quantitative and qualitative. Sampling techniques such as purposive, proportionate stratified, and simple random were used. Primary data was collected using structured questionnaires and structured interview, while secondary data was collected using document review which were related to the topic under consideration. 342 employees were selected and participated from the chosen branches. Descriptive statistics such as frequency count, percentages, mean and standard deviation and inferential statistics such as multiple linear regression model and Pearson correlation coefficient analyses were used to analyze the quantitative data with the help of Statistical Package for Social Science version 20. As to the qualitative data analysis, it was narrated systematically using content analysis approach and supported the quantitative data analysis. The findings of the study revealed that 82.3% of the variations in the employee’s motivation were attributed to the effect of the six variables in combination. In addition, all the independent variables have significant and positive effect on the motivation of employees. Among those, promotion opportunity has the greatest contribution. Furthermore, employee motivation and the five independent variables have significant, positive and strong relationship; however, motivation related factors practice has moderate relationship. Based on the findings the researcher recommended that, even though, most of the Commercial bank of Ethiopia West Addis Ababa District implemented promotion management practices to some extent highly, the bank is better to promote employees by using both on competency, performance based and educational background of employees. Moreover, CBE has to increases the awareness of employees through training about the bank’s promotion policy and procedures before executing promotion management practices in order to minimize personal biasedness and lack of consistency since its process has been carried out in a decentralized ways.