Abstract:
Human resource is the key factor for the success or failure of microfinance operations. The introduction
of micro finance law in Ethiopia has brought changes over the years, with it some competition in the
micro finance industry. micro finance are no exception to the modern changes in ensuring staff
motivation towards their organizational goals. The general objective of the study is to examine
employee motivational factors and its effect in Amhara credit and saving institution performance. Thus,
the study seeks to assess the motivational factors available at Amhara credit and saving institution and
how it affects employee performance towards the micro finance corporate objectives. The research also
considers Motivational factors (enhance salaries to employees, employee staff loan scheme, employee
housing loan scheme, fringe benefits, promotions, recognition, incentives and education). The study
employed both qualitative and quantitative type of data for the purpose of the study. To collect primary
data, structured questionnaire was designed and collected through systematic sampling technique from
employees of ACSI. Structured questionnaires were distributed to 124 employees, and 124(100%)
complete responses were returned from the employees. The SPSS version 20 was use as a tool to
process the primary data which is collected through questionnaire.
The study revealed that, management can make use of different strategies and policies to motivate
employees in the micro finance environment. Employees are interested in enhanced salaries, fringed
benefits, promotion, incentives, recognition, staff loan, housing loans and education as motivating
elements sufficient to push employees of the micro finance to give out their best. The research also
revealed that the core duty of the micro finance is normally carried out by clericals and non clerical
staffs and as such motivational factors should be geared both towards the clerical and non clerical
workers to ensure that they delight the customers. The study revealed that if management withdrew
motivational factors it will have serious repercussions on employees‟ performance. There was a
positive relation between employee performance and corporate performance since employees were able
to achieve the micro finance performance indicators in terms of Profitability, Deposit mobilization
,Loan default, Staff retention Staff retention and efficiency. The conduciveness of the office environment
has first time impression on the customers and the welfare of the employees.
