The Impact Of Compensation And Benefit Plans On Employee Motivation A Case Of Ethiopian Roads Authority(era)

This study has been conducted in Ethiopian roads authority (ERA) to assess strengths andrnweaknesses of the organization in its compensation and benefit plans and how these plansrnaffected its employee motivation. The study was undertaken by using basically primary datarncollection instruments i.e. questionnaire distributed to randomly selected employees (bothrnManagerial and non-Managerial) and interview questions asked to the Human ResourcernManager and the data were analyzed by using destructive statistical techniques.rnThe findings indicated that the compensations and benefit pall in the organization is notrnattractive and motivating to the majority of its employees. Moreover, it is also depicted fromrnthe findings that ERA is weak in periodically revising the compensation and benefit painrnscheme of the organization accord ugly with the increasing living cost in tube country evenrnthough the Board of Directors have the mandate to do so.rnBased on the findings it is also seen that the organization's non-financial compensationrnpractices and plans such as promotion, training and development programs are not clearlyrncommunicated to the employees and there is no fair distribution of them among employeesrnat different level. Hence, this unfairness has negatively affected the level of motivation ofrnemployees of ERA.rnIn order to improve the weaknesses of the company with regard to its compensation andrnbenefit plans recommendations are made based on the fin dings of the study.

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