Abstract:
This study examined the effects of motivation on employees’ performance in the
banking sector, focusing on Equity Bank Tanzania, Arusha Branch. The research
problem stemmed from declining morale, reduced productivity, and increasing
turnover among employees, attributed to inadequate motivational practices. The study
specifically aimed to determine the types of motivation provided to employees, assess
the effect of motivation on their performance, and analyze challenges hindering
effective motivation at the branch. Guided by a pragmatism philosophy, the study
employed a mixed-methods approach within a case study design. The target population
comprised 84 employees, from which a sample of 69 was drawn using purposive and
simple random sampling. Data were collected through questionnaires, semi-structured
interviews, systematic observation, and documentary reviews. Quantitative data were
analyzed using descriptive statistics, Pearson correlation, and multiple linear
regression, while qualitative data were analyzed thematically. Findings under the first
objective revealed that employees received both intrinsic motivators (such as training,
recognition, feedback, and career growth) and extrinsic motivators (including salary,
bonuses, and promotions). However, intrinsic motivation was found to be less
emphasized than monetary rewards. Under the second objective, the Pearson
correlation results showed a moderate positive relationship between motivation and
employee performance (r = 0.541, p < 0.01), but regression analysis indicated that
intrinsic and extrinsic motivation jointly explained only 0.6% of performance
variation, implying that other factors like supervision, workload, and organizational
culture also affect performance. Regarding the third objective, major challenges
identified included inadequate recognition, limited communication, unclear promotion
criteria, poor leadership support, and excessive workload. The study concluded that
motivation plays a role in enhancing employee engagement and satisfaction but has a
limited direct effect on performance unless supported by fair policies, effective
leadership, and conducive work conditions. It recommended strengthening intrinsic
motivation through recognition, career development, feedback systems, and leadership
engagement, alongside equitable pay and incentives to enhance sustainable employee
performance
