THE EFFECT OF EMPLOYEE MOTIVATION ON ORGANIZATIONAL COMMITMENT: THE CASE OF ELILLY INTERNATIONAL HOTEL IN ADDIS ABABA

Abstract

It is often contended that sustained competitive advantage relies on the firm’s ability to attract and retain skilled employees to meet its current and future demands. The main objective of this study was to investigate the effect of employee motivation on organizational commitment in the case of Eliliy international hotel which is a 5-star hotel located in Addis Ababa. The study employed both descriptive research designs with quantitative research approach. 174 participants were selected using simple random sampling methods from Elilly international hotel. The main data gathering instrument used was questionnaire. Data were analyzed using both descriptive and inferential statistical methods (correlation and regression analysis) with the help of Statistical Package for Social Science (SPSS). The results of descriptive statistics revealed that the aggregate mean values for intrinsic motivation, extrinsic motivation and organizational commitment are 3.03, 3.71, and 3.61, respectively. This implies that the sampled employees have positively treated the motivational schemes and their commitment to their organization. Furthermore, the results of regression analysis indicated that both intrinsic and extrinsic motivation of employees have significant effect on the organizational commitment of employees in the hotel. Based on the key findings of the study, the organization is highly recommended to apply effective and sustainable motivational strategies to improve the organizational commitment of employees.