The Effect of Motivational Practices On Employees' Commitment in Banking Industry: A Comparative Study Between Public and Private Owned Banks in Dire Dawa City

The main purpose of this paper was to study the effect of Motivational Practice on Employee’s Commitment in banking industry comparative study between Public Banks and Private Banks. The study used both primary and secondary sources of data and also used mixed approaches by using both descriptive and explanatory type of research design and Stratified random sampling technique was used to select respondent population into various strata, and to pick the individual respondents who participated in the study. This research was conducted by distributing questionnaires to 125 number of sample respondents among which 99 respondents fills those questionnaires in full and usable form. However, the data was collected only from 61 and 38 numbers of respondents working in government and private owned banks respectively. The collected data was analyzed using a mix of descriptive and inferential statistics using Statistical Package for Social Scientists (SPSS) software. The finding of this research indicates that among the motivational practices, Salary and Benefits, Promotion Opportunity, Working Environment and Job Enrichment were found to be positively correlated with employees’ commitment. However, among the motivational practices, Training and development have a negatively correlated with employees’ commitment. The study showed that the private banks should facilitate favorable working environment which satisfy employee needs. Its must ensure to provide a motivating environment in the work place. The study showed that the public bank should revise the internal promotion guidelines which satisfy the psychological requirements of employees in the organization.