EFFECT OF EMPLOYEE MOTIVATION ON ORGANIZATION PERFORMANCE THE CASE OF OROMIA BANK NAQAMTE CITY

MISGANU GETAHUN (PHD) The primary purpose of this study was to evaluate the effect of employee motivation on organizational performance at Oromia Bank in Nekemte city. The study assessed various dimensions of employee motivation such as Recognition, Salary and Benefits, Promotion, Managerial Mechanisms & Good Leadership, and Working Conditions in relation to organizational performance (flexibility). A quantitative research approach was utilized to investigate the effects of employee motivation on organizational performance. Both descriptive and explanatory research designs were employed, with a census method used to take all the target population. Data was collected from 124 employees through 33 questionnaires using a 5 point Likert Scale questionnaire, and analyzed using SPSS Version 25. The results of the study revealed that the majority of employees at Oromia Bank in Nekemte city are moderately satisfied with Recognition, Salary and Benefits, Promotion, Managerial Mechanisms & Good Leadership, and Working Conditions, although there is a noted high workload. The researcher suggests bone up employees' knowledge to match the workload and reevaluating job-related incentives to address this issue. To enhance employee motivation strategy and organizational performance, the recommendation includes inspiring further in boosting employee dedication to foster commitment and improve results. The analysis demonstrated a strong positive and significant correlation between employee motivation dimensions and overall organizational performance, with the variables in this study explaining 84.3% (0.843) of the variability in organizational performance at Oromia Bank in Nekemte city. Based on these findings, it is recommended that Oromia Bank in Nekemte city ought to focus on enhancing welfare benefits, payment structures, promotion opportunities, job-related incentives, and rewards to foster long term relationships with key customers, enhance reliability, responsiveness, and standard organizational practices, adapt to changing needs, and work towards improving employee motivation and overall benefits. Key Words: employee‘s motivation, Benefits, organizational performance, Banks‘