Abstract:
The study was about the effect of motivational strategies on the performance of commercial
banks in Rwanda. A case of Bank of Kigali PLC within the period of 2019-2023. Specifically
this study determined the effectiveness of motivation strategies applied by Bank of Kigali PLC
and found out the effects of employees motivations strategies to the performance of Bank of
Kigali PLC. In virtue to the main purpose of this study, researcher designed an appropriate
research methodology and used the interview, documentary review and questionnaire techniques
to collect data and SPSS was used to analyse relevant data which allowed the researcher to
obtain the following results: Regarding to the effectiveness of motivation strategies applied by
Bank of Kigali PLC results shows that almost all respondents with 86% strongly agreed that
salary is fair and equitable within the internal job descriptions at Bank of Kigali. Regarding
working conditions, results shows that the majority of respondents with 63.5% agreed that the he
office seats are comfortable and the office furniture provide adequate convenience and
movement for higher work performance. The effectiveness of employee recognition strategy
applied in Bank of Kigali also was assessed and results demonstrated that 57%strongly agreed
that Bank of Kigali PLC acknowledges and appreciates exemplary employees by giving those
gifts. The performance of Bank of Kigali PLC within the period of 2019-2023 also was analyzed
and results demonstrated that. Return on Assets ratio during the covered period. From 2019 up to
2023.The ratio of Return on Assets are 3.66%; 2.95%; 2.95%; 3.22% and 3.53% respectively.
From 2019 up to 2023, the ratios of Return on Equity are as follow: 16.90%; 14.86%; 18.16%;
18.72% and 20.42 respectively. Also relationship between the studied variable were analyzed
through Multiple Regression Analysis and results shows that compensation strategy, working
conditions, Job security and employee Recognition to a constant zero, financial performance
would be at 0.347. A unit increase on compensation strategy would lead to increase in financial
performance by a factor of 0.162, a unit increase in working condition would lead to increase in
financial performance by a factor of 0.282, a unit increase in job security would lead to increase
in financial performance by a factor of 0.194 and unit increase in employees‟ recognition would
lead to increase in financial performance by a factor of 0.211. Therefore, these allow researcher
to confirm the second Hypothesis stipulating that “employees‟ motivation strategies have a
positive and strong effects on the performance of Bank of Kigali PLC”.
