Basic Research Journal of Business Management and Accounts ISSN 2315-6899 Vol. 3(2) pp.

17-27 February 2014

Available online http//www.basicresearchjournals.org
Copyright 2014 Basic Research Journal

Full Length Research Paper

The effect of compensation on employees motivation:

In Jimma University academic staff
Rijalu Negash1, Shimelis Zewude2, Reta Megersa2
1

Jimma University, College of agriculture and veterinary medicine, Department of agricultural economics, PO.Box:
307Jimma, Ethiopia.
2

Jimma Universities, College of business and economics, Department of management, PO.Box: 378, Jimma, Ethiopia.
*Corresponding author email: rijalunegash@yahoo.com
Accepted 27 February, 2014

Abstract

This study investigates the role of compensation and its components such as payment, promotion,
recognition, working condition and benefit towards academic staffs work motivation in Jimma
University. The population of this study was 1337 academic staff of Jimma University. The researcher
stratified the total population of the study based on their college. The samples were selected
proportionally and conveniently from the strata. In this study, both primary and secondary sources of
data were used. The primary data were gathered through questionnaires from 230 respondents of
Jimma university academic staffs. An interview was also conducted with human resource personnel
and each college deans of the university. Journals, books, internet, and other references were used as
secondary sources of data. Data was analyzed using descriptive statistics such as frequency tables and
inferential statistics such as correlations and regression analysis The findings of this study indicated
that there is a relationship between compensation and its components and employee work motivation.
Keywords: promotin, benefit, recogntion, working condtion, payment and work motivation

INTRODUCTION
Employee compensations refer to all forms of pay or
reward going to employees and arising from their
employment. Rewards include direct compensation,
indirect compensation and non financial reward.
Developing an effective and appropriate compensation
system is an important part of the human resource
process. An effective and appropriate compensation
system can help, attract and retain competent and
talented individuals who can help the organization
accomplish its mission and goals. (Dessler, 2002). A
according to Ivencevich (1998), compensation has been
recognized as a major motivator of employees. As the
issue
of
motivation
is
concerned,
employee
compensation systems have been found to be the most

commonly adopted technique among the organizations.

Employee compensation offers a diversity of rewards that
may be monetary or non monetary (Calista, 2009).
Acording to Robins (2003). Organization compensation
can include many different types of rewards and benefits
such as salaries, incentive payments and other benefit
and services. If an employee believes he/she is
underpaid, that employee will likely reduce expended
effort by working more slowly and being absent (Byars
and Rue, 1997). Motivation is described as an inner force
that derives individual to act toward something
(Evancevich, 2007).
The staffs of higher education institutions are a key
resource. Academic staffs, in particular, have a major role

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Rijalu et al. 18

to play in achieving the objective of the institutions. The

performance of academic staff both as a teacher and as
a manager, determines, largely, the quality of student
experience of higher educations and has a significant
impact on student learning and thereby on the
contribution that such institution can make to society.
Academic staffs manage this learning experience and are
the main interface with the students. Consequently, their
motivation is crucial in determining the quality of this
interface. Exceptionally well motivated academic staffs
can, with appropriate support, build a national and
international reputation for themselves and the institution
in research, publication and professional areas.
Motivation is a key in the establishment and development
of quality in higher education (Jennifer, 1996).A well
designed and functional compensation system is an
efficient way to increase employee work motivation
(Clalista, 2009). Compensation leads to better
performance and keeps workers focused on their jobs.
Lack of appropriate compensation is one of the main
reasons behind the employee turnover (David, 2002). It is
important to know that employee compensation include
all forms of pay and reward received by employees for
the performance of their job (Stewart et al., 2001).Failure
to design appropriate compensation system will have
unfavorable impact on productivity and job satisfaction of
employees and overall effectiveness of the organization
(Neo et al., 2006).
This research investigated the role of compensation
toward employee motivation in Jimma University
academic staffs. Hence, in order to motivate and retain
effective and committed staff member, the university
must offer competitive level of compensation and must
recognize their achievements. The dedicated staffs can
maintain the competitive position of the university with
other universities. According to some academic staffs
and one of human resource department, the
compensation system of Jimma University shows that
there is a problem in motivating employees, which results
from lack of identifying motivational factors and there is
low motivation of employees on the job. Jimma University
(JU) is a public higher institute established in December
1999 by the amalgamation of Jimma College of
Agriculture (founded in 1952) and Jimma institute of
Health Science (established in 1983). The university
though young for its age, has made remarkable and
multifarious progresses in training, research and service
provision since its establishment. (http://www.ju.edu.et)
Objective of the study
The aim of this study is to investigate the role of
compensations toward employee motivation in Jimma
University academic staffs. The study specifically aims to
examine if there is a relationship between compensation
and employee work motivation, factors contribute to

employee work motivation and the

compensation on employee motivation.

influence

of

MATERIALS AND METHODOLOGIES

A descriptive survey involving questionnaire was the
research design adopted for this study. In this research
project, both primary and secondary sources of data were
used. The primary data was collected through
questionnaires and interviews. Also, journals, internet,
books and other related references were used as
secondary data. The population of this study was Jimma
University academic staff. The total population of the
study is 1337 academic staff.
Sample size determination and sampling technique
The sampling techniques were stratified and convenience
sampling. By taking in to consideration the number of
employees in each college, the population was stratified.
While determining the sample size the following formula
was taken from Kothari (2004) and will be:

Where;

Based

n=sample size
Se=sample error (0.01)
Z=standard value (2.58) for 99% reliability
P=population proportion (0.5 preferred)
N=Total population
on

equation,

this
the

sample size were 230 academic staffs from the total

population. The number of samples was determined
proportionally by considering the number of employees in
each college of the university. The sample sizes are
shown in the following table 1.
Analysis of data
Statistical package for social science (SPSS) version 16
was used in the study for the purpose of analysis and
presentation of the result. The descriptive statistics such
as frequency tables was applied to analyze data. This
was followed with the presentation of inferential statistics
such as correlation and regression analysis regarding the
role of compensation towards employee motivation and
its components.
The multiple regression models have written with five
independent variables as: Y=o+1x1+ 2x2++ 3x3++
4x4++ 5x+ei; Where y=dependent variables,
x1,x2,x3,x4,x5=independent variables, o is the intercept,

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1measures of change in y with respect to x1, holding

other factor fixed, 2 measures of change in y with
19. Basic Res. J. Bus. Manag. A/cc.
Table 1.S ample Size Determination
Colleges
College of Agriculture
Veterinary Medicine
College of Public Health
Medical Science
College
of
Business
Economics
College of Natural Science
College of Social Science
Law
College of Engineering
Technology
Total

and

Number of academic staffs

171

Number of samples
30

and

425

73

and

102

18

and

151
247

26
42

and

241

41

1337

230

Table 2.Reliability and validity of the instrument

Motivational factors
Payment
Promotion
Recognition
Working condition
Benefit

Cronbachs Alpha
0.64
0.77
0.83
0.75
0.85

respect to x2, holding other factor fixed, 3 measures of

change in y with respect to x3, holding other factor fixed,
4 measures of change in y with respect to x4, holding
other factor fixed, 5 measures of change in y with
respect to x5, holding other factor fixed and ei is error
term
Reliability and validity of the instrument
Reliability refers to the consistency or dependability of the
measuring instrument. In order to test the reliability of the
instrument the Cronbachs Alpha was applied. This model
is used to measure internal consistency of the tools
employed to get necessary data from respondents (see
table 2).
As indicated in table 2, the result shows that the
reliability of the instrument which employed for academic
staff is ranging from 0.64 to 0.85. This implies that the
reliability of the instrument is more than the acceptable
standard in social science research. Validity, on the other
hand, refers to the extent to which the measurement
measures what is intended to measure. The instrument
was designed by taking in to consideration the basic
questions and all items included in the questionnaires are
directly derived from it and consistent with the objective
of the study.
RESULTS OF THE STUDY
Demographic characteristics of respondents

Number of items
4
6
7
6
6

The demographic characteristics of the respondents are

shown below in terms of age, gender, length of service in
this university and highest level of education completed.
As indicated in table 3, the majority of the sample (178)
or 83.2 % was male, while the remaining 16.8 % (36) was
female respondents. Table 4-10.
As indicated in table 11 above, the mean value of the
two variables was towards negative response, i, e, 2.51
and 2.21 for the two variables respectively.
As indicated in table 12, the staffs work motivation was
assessed with respect to the dimension of compensation.
It indicates that, the mean value for payment, promotion,
recognition, working conditions and benefit ranged from
2.34 to 2.85. This implies that, the mean value for
payment, benefit and recognition were the lowest than
promotion and working condition. These mean value
indicate the area that academic staffs were most likely
de-motivated and dissatisfied.
Respondents ranking order of motivational factors
from most preferred to the least
In this part, respondents were asked to rank the
compensation components such as payment, promotion,
recognition, working condition and benefit as they
preferred to enhance their motivation on the job. The
results of the ranking order were shown in table 13.
The well designed compensation system can greatly
enhance morale, improve overall performance and
contribute to the organization. According to the ranking

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order of respondents, recognition appears to take

precedence over the other motivational factors. It reveals

that recognition in the form of appreciation of

performance, expressing of gratitude for extra effort done
Rijalu et al. 20

Table 3. Background information of respondents

Demographic variables
1.sex

2. Age category

3.Serviceofrespondents
in the university

4.Educational
level

Frequency

Percent

Male
Female

178
36

83.2
16.8

Total
20-30
31-40
41-50
51-60
Total
<1year
1-3years
4-6years
7-9years
>9year
Total
Bachelor
Masters
degree
Doctoral
degree
Total

214
66
119
26
3
214
63
73
47
17
14
214
101
105

100
30.8
55.6
12.1
1.4
100
29.4
34.1
22
7.9
6.5
100
47.2
49.1

3.7

214

100

Table 4. Summary of items that measure opinion of respondents about of payment

Level
agreement

of

Strongly
disagree
Disagree
Neither agree
nor disagree
Agree
Strongly agree
Total
Mean
Std. Deviation

The
salary
is
satisfactory in relation
to the job I am doing

The basis
of payment
is fair

Money that the I

get
from
the
university motivate
me

Employees earn the

same as other people
in similar job in other
organization

percent

percent

percent

percent

23.8%

34.1%

24.8%

18.2%

42.5
17.8

38.3
15.4

43.5
19.6

24.8
20.6

14.0
1.9
100.0
2.28
1.036

9.8
2.3
100.0
2.08
1.047

8.9
3.3
100.0
2.22.
1.024

29.0
7.5
100.0
2.83
1.242

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Table 5. Summary of items that measure opinion of respondents about promotion

The career
advancemen
t
in
the
university is
motivating

I
am
promoted
in fair and
honest
way

There
is
opportunity to
improve
job
related skills
and knowledge

promotion
in
the
university is
motivating

Assignment
of
responsibili
ty is fair

There
is
performance
based
promotion
in
the university

percent

percent

percent

percent

percent

percent

Strongly
disagree

11.7

14.5

10.7

12.6

9.3

9.8

Disagree

32.2

30.4

33.6

40.7

30.4

35.0

Neither agree
nor disagree
Agree

21.5

21.5

27.1

19.2

30.8

19.6

29.0

27.1

20.1

22.9

21.5

25.2

Strongly
agree
Total
Mean
Std.Dev.

5.6

6.5

8.4

4.7

7.9

10.3

100.0
2.85
1.134

100.0
2.81
1.177

100.0
2.82
1.130

100.0
2.66
1.104

100.0
2.88
1.096

100.0
2.91
1.185

Levels
agreement

of

Table 6. Summary of items that measure opinion of respondents towards sub dimension of recognition
and work motivation
Levels
of There
is I
am There is There
is I
am
agreement
provision
of praised
appreciati
opportunity to recognized
recognition for regularly
on
of participate in for the extra
good
for
my employees professional
effort I am
performer
work
on the job
development
put at work
percent
percent
percent
percent
percent
Strongly disagree
12.6
15.9
18.2
13.6
13.6
Disagree
35.5
41.1
37.9
40.7
41.1
Neither agree nor 25.2
15.4
20.1
17.3
16.8
disagree
Agree
20.1
23.8
19.2
25.7
23.4
Strongly agree
6.5
3.7
4.7
2.8
5.15
Total
100.0
100.0
100.0
214
100.0
Mean
2.72
2.58
2.54
2.64
2.65
Std. Deviation
1.119
1.126
1.132
1.091
1.131

Table 7. Summary of items that measure opinions of respondents about getting credit and
feedback on the work
Levels of agreement

Strongly disagree
Disagree
Neither agree nor disagree
Agree
Strongly agree
Total
Mean
Std. Deviation

There is credit for the

job I am doing in the
university
percent
13.1
38.3
23.8
17.85
7.05
100.0
2.67
1.124

There is feedback
for my work
percent
12.1
42.5
26.2
15.4
3.7
100.0
2.56
1.013

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The mean value of the two variables was towards negative response, i.e. 2.67 and 2.56 for
the two variables respectively.

Rijalu et al. 22

Table 8. Summary of items that measure opinion of respondents towards sub dimension of working
condition and work motivation
Levels
of
agreement

Strongly
disagree
Disagree
Neither agree
nor disagree
Agree
Strongly agree
Total
Mean
Std. Deviation

The
supporting
equipment
that
helps my jobs is
enough
and
motivating
percent
8.4

The working
environment
is attractive

There is participation
of
employees
in
decision making of
compensation system

percent
7.9

percent
10.3

Effectiveness
of
communicatio
n in work is
motivating
percent
13.1

32.2
15.9

39.7
11.7

39.3
25.7

40.2
22.9

30.8
12.6
100
3.07
1.214

32.7
7.9
100
2.93
1.167

15.9
8.9
100
2.74
1.120

21.0
2.8
100
2.60
1.046

Table 9. Summary of items that measure opinion of respondents toward autonomy at work
place and flexible working hours
Levels of agreement
There
is I am motivated in flexible
autonomy at work working hours of the
place
university
percent
Percent
Strongly disagree
7.9
9.3
Disagree
37.4
36.4
Neither agree nor disagree
23.4
15.4
Agree
22.9
28.5
Strongly agree
8.4
10.3
Total
100.0
100.0
Mean
2.86
2.94
Std. Deviation
1.116
1.199
The mean values of the two variables were towards negative response, i, e, 2.6, and 2.94 for
the two variables respectively.

Table 10. Summary of items that measure opinion of respondents towards sub dimension of
benefit and work motivation
Levels of agreement

Strongly disagree
Disagree
Neither agree nor
disagree
Agree
Strongly agree
Total
Mean
Std. Deviation

Benefit
packages are
motivating

Retirement
benefits are
motivating

The medical
schemes are
satisfactory

percent
9.3
45.3
15.9

Percent
13.6
38.3
25.7

percent
25.2
39.3
21.0

Employees
understand
the
available benefit
package
percent
26.2
41.6
20.6

25.2
4.2
100.0
2.70
1.077

13.1
9.3
100.0
2.66
1.150

13.6
.9
100.0
2.26
1.014

10.7
.9
100.0
2.19
.975

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Table 11. Summary of items that measure opinion of respondents towards housing
allowance, and recreational benefit and work motivation
Levels of agreement

Strongly disagree
Disagree
Neither agree nor disagree
Agree
Strongly agree
Total
Mean
Std. Deviation

Housing allowance is
motivating me
percent
28.0
38.8
19.6
11.7
1.9
100.0
2.21
1.037

Recreational
benefits
satisfactory
Percent
18.7
35.0
29.4
9.8
7.0
100.0
2.51
1.116

are

Table 12. Descriptive statistics for compensation and employee work

motivation
Variable
Payment
Promotion
Recognition
Working condition
Benefit

Mean
2.34
2.84
2.62
2.85
2.42

St. Deviation
0.75
0.79
0.77
0.75
0.80

Table 13. Respondents ranking order of motivational factors from most preferred to the least
Rank

Valid

1st
2nd
3rd
4th
5th
Total

payment

promotion

recognition

percent
39.7
18.7
12.1
16.4
13.1
100.0

percent
11.7
23.4
27.6
23.4
14.0
100.0

percent
35.0
22.0
21.0
16.4
5.6
100.0

Working
condition
percent
9.8
18.7
16.4
24.3
30.8
100.0

Benefit
percent
3.7
16.8
22.4
20.1
36.9
100.0

Note: The lowest total weight is the first rank

Total Weight: payment=523, promotion=652, Working condition =744, recognition =504, benefit=791

by employees, acknowledgement of successful

completion of organizational goals is the most preferred
motivational factors to the Jimma university academic
staffs. As indicated above, the weight average shown
that after recognition, the next most preferred
compensation is noted to be payment. Its value indicates
to understand in terms of the different needs the
employee have. With respect to the hierarchy of needs
theory, pay is an important reward because it provides
employees with the means to purchase items which
satisfy their physiological needs. The next to payment,
promotion and working conditions were ranked as the
third and the fourth preferred motivational tools

respectively. Finally, benefits are ranked as fifth less

motivating factors
Relationship between elements of compensation and
employee work motivation
Correlation analysis of Compensation components
and work motivation
The Correlation coefficient was computed for identifying
the relationship of different dimension of compensation
such as payment, promotion, recognition, working
condition, benefit, and employee work motivation

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The result of table 14 shows the relationship between

payment, promotion, recognition, working condition,
benefit and employee work motivation. The result shows

positive relationship between payment (r=0.165, p<0.05),

promotion (r=0.150, p<0.05), benefit (r=0.160, p<0.05),
Rijalu et al. 24

Table 14. Correlation of Compensation components and employee work

motivation
variables

Employees work motivation

Pearson Correlation
*
.165
*
.150
**
.782
**
.273

Payment
Promotion
Recognition
Working
condition
*
.160
Benefit
*. Correlation is significant at the 0.05 level (2 tailed).
**. Correlation is significant at the 0.01 level (2-tailed).

.p-value
.015
.028
.000
.000
.019

Table 15. Regression analysis of compensation and work motivation

Unstandardized Coefficients
Models
1 (Constant)
Payment
Promotion
Recognition
Working
conditions
Benefit

Std. Error
.224
.091
.091
.087
.056
.088

2.040
.221
.221
.192
1.016
.364
.203

.086

Standardized
Coefficients
Beta ()
0.165

t-value
9.116
2.44

Sign.
0.000
0.015

0.150
0.782
0.273

2.21
18.28
4.13

0.028
0.000
0.000

0.16

2.36

0.019

Multiple regressions(R) = 0.795

2
2
R square (R )=0.632,Adjusted R =0.62.7

working condition (r=0.273, p<0.01), recognition (r=0.78,

p<0.01) and independent variable (employee work
motivation).
The result shows all different variables of compensation
namely payment, promotion, recognition, working
condition and benefits are significantly related to
employee work motivation. This implies that if the
compensation offered to the employees were altered,
there would be a change in employee work motivation.
Regression analysis of compensation and work
motivation
In this section stepwise multiple regression analysis was
computed at significant level of (p=0.05) in order to
examine which compensation components could be the
most determinant factor to academic staffs work
motivation in Jimma university. Table 15.
The result shown in table 15, indicate that a relatively
high percentage of the variation in the work motivation
can be explained by the variables, R-square=63.2%, R2
square adjusted (R ) =62.7%. Thus, 63.2% in work
motivation can be explained by payment, promotion,

recognition, working conditions and benefit. This finding

implies that other unexplained variables could account for
other variance in work motivations. The result also
indicates the relationship between payments, promotion,
recognition, working condition, benefit and work
motivation at significant level of (p=0.05). As it is
indicated in the table 15, p-value is less than the
significant level for all variables. This implies that there is
significant association between independent and
dependent variables. However, there is weak positive
relationship between payment (=0.165), promotion
(=0.150), benefit (=0.273), and the dependent variable
(work motivation). The coefficient between these factors
and employee work motivation is very small, but the
result of this study shows that there is strong positive (
=0.782) relationship between recognition and employee
work motivation. Therefore, recognition was determinant
factors to employee work motivation.
DISCUSSION
For each selected sample, the close-ended and openended questionnaires were delivered at their office. A

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total 230 questionnaires were distributed. Among these

214 questionnaires were completed and returned with the
93% required information. The responses of employees
towards payment and its sub dimensions; promotion,
recognition and working conditions, benefits and
employee work motivation in the university were
ananlyzed. Responses were measured on five point
Likert scale with 1=strongly disagree; 2= disagree;
25. Basic Res. J. Bus. Manag. A/cc.

3=neither agree nor disagree; 4= agree; 5= strongly

agree.
Opinion of employees towards dimension of payment
Pay equity concerns whether employees believe they are
being fairly paid. A major determinant of employee
productivity and satisfaction arises from the degree of
fairness (equity) or unfairness (inequity) that an
employees in the work place in comparing with others.
Pay dissatisfaction can influence employees feeling
about their job. It can increase the desire for more money
and it can lower the attractiveness of the job
To see correlation between salary and basis of
payment Spearman's correlation coefficient was applied
and the result shown a significant correlation (.447)
between the two variables. This implies those who
disagreed that salary is satisfactory in relation to the job
and disagreed about the fairness of basis of payment.
In this regard, human resource personnel and colleges
deans of the university were interviewed whether they
think that, the payments for the employees of academic
staff are fair and equitable. Their response shows that,
Payment for overload, extensions and summers are not
fair due to high tax rate and what they earn was not
match to their effort.
Opinion of respondents toward the dimension of
promotion and work motivation
Promotions are advancement into position with greater
responsibility and more authority than the previous job.
Promotion usually includes pay increase. Because of
psychological and tangible rewards of promotion (such as
increased feeling of self worth, a salary and status in the
organization), employees are more motivated to accept
promotion. Promotion and growth in the organization and
interesting work are important factors that motivate
people to do their work. Interviews were conducted with
human resource personnel and deans of the colleges of
the university; how academic staffs are promoted? The
response shows that, promotion to the academic staffs
are largely determined based on years of service to the
university and the criteria are similar to all staffs. Even if
there is performance, appraisals in the university it is not
much considered and its contribution for promotion is not
such significant.

Opinion of respondents towards

recognition and work motivation

dimension

of

Recognition is appreciation of performance by the

organizations of an act done by the team or team
members. It is an approach of expressing gratitude for

extra effort done by the employees within an

organization. It is essential to encourage the employees
or teams to repeat or continue the behavior and to
encourage other employees to do the same. Recognition
is either informal (oral) or formal (written remarks).
Motivator has a positive power to satisfy and produce
high performance and includes recognition.
The respondents were asked their opinion from the
dimension of recognition and work motivation such as
provision of recognition, praise, appreciation, and if there
is participation in professional or career development
training and their responses are summarized in table 6.
From this, one can infer that good performer employees
were not appreciated and praised for their work.
Opinion of respondents about credit and feed back
on their job
To see the correlation between the two variables,
spearmans correlation coefficient was applied. The result
shows a significant correlation exists between the two
variables with the correlation coefficient of .686 indicating
that those respondents who were disagree about getting
credit for the work done also either disagree or strongly
disagree about feedback provided for the employees on
the work. These implies that, the respondents were lacks
of feedback and acknowledgement
Opinions of respondents towards dimension of
working condition and work motivation
Job satisfaction and motivation is a positive emotional
state resulting from evaluating working conditions. If an
employee expect clean safe working conditions on the
job, then the employee is likely to be dissatisfied if the
work place is not clean and attractive. From table 8 one
can infer that, the supporting equipment which helps
employees on the job were enough and motivating.
However, the communication between the employees
and the management as well as the participation in
decision making was not satisfactory.
Opinion of respondents towards autonomy at work
and working hours flexibility

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All staffs need to have autonomy over their own time

management, hours, and the relationship they establish
with students and other staffs. One of the main reason
why staffs select higher education as career is from the
opportunity for this level of personal autonomy. To see
the correlation between the two variables, spearmans
correlation coefficient was applied. The result shows a
significant correlation exists between the two variables
with the correlation coefficient of .390 indicating that

the university and fairness promotion. The respondents

were feeling negatively for all items in this category. From
this result, it is possible to conclude that the promotion
criteria and its fairness were not motivated and satisfy
employees to put their effort on the job.
Appreciation at work is one of the factors causing work
motivation and satisfaction. To the dimensions of
recognition respondents were perceived negatively to all
items. Staffs were responded towards disagreement for
Rijalu et al. 26

those respondents who were disagree about autonomy at

work place also either disagree or strongly disagree
about the flexible working hours of the university.

the item there is appreciation at work place. Moreover,

staffs were responded towards negative response for the
item I am praised regularly for my work and there is
feedback for what I am doing. From this one can
conclude that the academic staffs were not motivated
with the currently available recognition programs.
Respondents are negatively responded to the
attractiveness of internal working environment. The
perception of respondents to the item effectiveness of
communication channels in work place was negative.
Respondents
were
also
responded
towards
disagreement to the item participation in decision making
on compensation system and negative response to the
item I am motivated in autonomy at working place.
Respondents were positive, for the item the supporting
equipment that helps the job of employees are sufficient
and motivating. From this result it is possible to conclude
that the working materials are motivates and satisfy the
academic staffs. However, the remaining items under this
part were towards negative response, and de-motivate
academic staffs.
Respondents are responded negatively to item benefit
packages of the university is motivating. Also
respondents were disagree and strongly disagree to all
items in this category and particularly to item my medical
benefits are satisfactory and motivating. The
respondents responded that, the housing allowance was
insufficient. Also respondents are unaware about the
available benefit packages of the university. Therefore, it
is possible to conclude that the benefit packages of the
university were unable to motivate the staffs to higher
performance.
The respondents of this study ranked compensation
components as the factor that motivate them on their job:
recognition, payment, promotion, working condition and
benefit. These factors reflect the current affairs in terms
of employee needs and imply that compensation may use
to reinforce and to motivate employees. Recognition was
generally valued by large number of respondents as the
first most preference. After recognition, the next most
preferred compensation was payment. Promotion and
working conditions were ranked as the third and fourth
preference of academic staffs. Benefits were ranked as
the fifth as least motivating factors. From this result one
can conclude that the academic staffs were preferred
recognition as the most motivating factors and benefit as
the least motivating factors.

Opinion of employees towards dimension of benefits

and work motivation
Benefits include insurance payment and retirement plan,
payment for time not worked, extra cash payment other
than bonus based on performance, and cost of service
like subsidized cafeteria and so on. Unlike pay for
performance, most benefits are available to workers as
long as they are employed by an organization regardless
of seniority or performance.
In this section, respondents were asked about benefit
packages of the university whether there is attractive
benefit packages, retirement benefits are motivating, the
medical schemes are satisfactory, employees understand
the available benefit and their responses are summarized
in table 10. The majority of respondents responded
negatively. In this regard, interviews were conducted to
know if there is there medical benefit for academic staffs?
Their response shows that; there is half coverage of
medical costs for the academic staffs and their families.
However, there is no awareness of its availability for the
staffs.
CONCLUSION
Based on the findings of the study, the following
conclusion forwarded.
It is evident from the study that payment, promotion,
recognition, working conditions, and payment influence
work motivation. There is also significant and positive
relationship between compensation and work motivation.
The study has shown that respondents were not
motivated and satisfied in payment system of the
university. Respondents replied for all items of payment
towards the range of disagreement. From this, one can
conclude that payment for the employees such as over
loud, extension and summers were not fair and motivate
the employees. Moreover, money they earn from their job
was not satisfactory.
Respondents replied that, the promotion criteria were
inappropriate and not based on performance. Moreover,
staffs dissatisfied with the assignment of responsibility in

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