The availability of sufficient and equitable compensation practice, in any organization, is the major source of employee motivation. As it is evident that organizational members have different personalities and behaviors, individuals get motivated by different motivating factors. And it is also often surprising that at how well some organizations seem to carry out under incredibly difficult circumstances, while others are continually failing to perform under much more favorable conditions. And why do people in some organizations seem to throw themselves at their work with wonderful enthusiasm, while in others, they come to work and do as little as possible? Why is it that some organizations have a vision that puts them in the forefront of improvement, while others are all the times lagging behind, not knowing where they are going? This organizational paradox could definitely be either the issues of motivational problems of employees or the capability of organizational leaders-including the Human Resources Manager and other subordinates-to guide and direct the organization in the right track to achieve goal (Vecchio, 1998: P. 38). Thus, this term paper endeavors to assess such issues of compensation policies, employee motivation and morale as well as the related practices undertaken in the Ethiopian Management Institute (EMI) by assessing the existing methods, process and the practices of actions taken by Management to promote employee satisfaction within the institute. To do so the study has been conducted by employing qualitative and quantitative descriptive survey method with the instruments of questionnaire, interview and document analysis, only in the Head Office of the institute. This method entails the primary and secondary data; by using this method, the study can find the right actions and feelings of the employees and the management within the organization on the issue of compensation policies and employee motivation.
Employee compensation and motivation has attracted the interest of many researchers, organizational leaders, and the human resource managers. There is a lot of presented information regarding the theory of motivation and how it can affect the performance of the employees and so is organizational productivity. Accordingly, the status of motivation of employees can significantly change the nature of work of an employee and can entirely change the workplace. Aside from the changing effects of the motivation, there are still remaining benefits that an organization can realize in the application of the motivation aspects of organizational members. Similarly, the status of organizational members motivation highly depends on the capacity and willingness of the leadership which evidenced by the availability of valid, faire and equitable policies of compensation and employee motivation packages. (Ryan and Deci, 2000: P 14). This study therefore tries to examine the practices and pertinent setbacks of compensation, employee motivation and morale, endeavors practices in the case of the Ethiopian Management Institute (EMI) by employing quantitative and qualitative research method. Particularly, it intended to investigate in detail the status of employee motivation and problems through the assessment of the efforts made by the human resources development department in particular and the management team of the institute in general. To foster the employee motivation and morale via devising and implementing several compensation and motivational measures.
1.2 General Background of the Institute
The origin of the Ethiopian Management Institute goes back to the 1950s where by the need to introduce modern management system wherever the country was recognized by the then government. Given...