MOTIVATIONAL PRACTICES AND EMPLOYEES’ PERFORMANCE IN MICROFINANCE BANKS

ABSTRACT

The study examined the impact of motivation practices on employee performance of microfinance banks in Akwa Ibom State. The specific objectives were to investigate the relationship between organizational justice, recognition, empowerment, working conditions and leadership styles and employee performance in microfinance banks in Akwa Ibom State. The study adopted survey research design. One hundred and sixty (162) employees of microfinance banks in Akwa Ibom state were studied. Data was generated through structured questionnaire administration. Data was analyzed using descriptive and inferential statistics. Statistical Package for Social Science (SPSS) was used to analyze the data. The study found that organizational justice, working condition and leadership style were positive, significant predictors of employee performance of microfinance banks in Akwa Ibom State. All the motivational practices were significantly related to employee performance. Recognition, empowerment and leadership were positive predictors of employee performance. Organizational justice and working conditions were negative predictors of employee performance. Leadership style had the most positive influence on employee performance. It was recommended among others that recognition, working conditions and empowerment practices should be strongly instituted and implemented in microfinance banks in Akwa Ibom State. Employees should be recognized for their contribution to the organization. Working conditions should be improved through the provision of job rotation for employees, creation of opportunity for employees to head teams, and adequate supervision of employees who are currently not performing well.