Effectof Motivation on Employee performance in Nepalese Commercial Banks

Abstract

ABSTRACT The main purpose of this study is to determine the relationship between factors ofmotivation and employee performance in Nepalese commercial banks. This hascontributed general ideas about factors affecting employeemotivation and their effectson employee performance in Nepalese commercial banks. This research study wouldassist us in answering the questions like what are the motivating factors in Nepalesecommercial banks? How these motivating factors affect employee performance?Andwhat relationship exists among them? The theoretical framework has been developedaccording to meet the objectives of this study including different variables such as salary,promotion, working environment, career development, training,incentives etc. While doing the research, data was gathered from primary source of data by usingquestionnaire method from150respondentsofselected as sample for the study. Sampleswere selected conveniently with stratified sampling techniques. This study covers onlyKathmandu district and far-western region of the country. Different tools of data analysishave been used such as frequency distribution, mean, percentage, weighted mean, andcorrelation coefficients etc. to derive conclusions of the study. The results of the study depicted that employees are motivated by promotion, salary,incentives and expecting growth for opportunities and personal development with fairand unbiased evaluation and recognitions of their jobs done. A need based trainingprogram is necessary for everyemployee; the main factor to reduce stress in bankinginstitutions is cooperative and pleasant working environment. HR policies and weakmanagement practices have been blamed for employee demotivation in Nepalesecommercial banks. However the motivational packages adopted by most commercialbanks have brought inner satisfaction and increased devotion with customers whichultimately has contributed towards efficiency and increased customer base. Thecorrelation coefficients 0.602, 0.551 and 0.362 of salary, promotion and workingenvironment with employee performance respectively reflect that employee performanceof commercial banks in Nepal is heavily influenced by these motivational factors. Therefore, this study will be helpful for different commercial banks to review theirmotivational practices, training programs, promotion of employees, workingenvironment, career development initiatives, and incentives etc. to enhance theiremployees' performance. This study has recommended to commercial banks to promoteemployees based on their performance and work experience, appropriate need based trainings have to be conducted for enhancing employee performance. SimilarlyManagement should take decisions relating to salary, promotion and workingenvironment with great participation of employees.