ASSESSING EFFECT OF JOB SATISFACTION ON EMPLOYEE PERFORMANCE:IN THE CASE OF COMMERCIAL BANK OF ETHIOPIA

Abstract

Employee attitudes are very significant to management and organizations since they determine the behavior of employees in an organization. It is believed that employees who are satisfied are normally productive than their counterparts who are dissatisfied. Satisfied employees are not only creators of a pleasant atmosphere within organizations to perform well but ensure quality gain and show loyalty as well. The major purpose of the study is to assess role of job satisfaction on employee performance in commercial bank of Ethiopia. The study mainly focuses on the identifying the determinants of job satisfaction among employees, the level of importance of the determinants of job satisfaction to employees, to identify challenges of job satisfaction in banking industry and finally to determine the influence of job satisfaction on the performance of employees of commercial bank of Ethiopia. In order to achieve the objectives The study reviewed literature on the concepts of job satisfaction and performance. Data was collected through the administration of both close ended and open ended questionnaires. Questionnaires were administered to 315 employees of Commercial bank of Ethiopia working in Addis Ababa .Convenience sampling technique was used to distribute questioner for employees, and in order to select branches Purposive Sampling Technique was used. Descriptive statistical analysis technique was employed to obtain useful summary of responses.It has emerged from the study that out of the eight determinants that were explored, the employees viewed compensation/pay, promotion and nature of the work as their major determinant of job satisfaction. The study revealed that Job satisfaction have major role on job performance. Safety at the work place and training and development has a positive effect on their current job performance whereas the bank pay/compensation scale, promotion opportunity and nature of work has a negative effect on employees current performance. Finally Regarding to level of importance of the determinants of job satisfaction the result indicates compensation /pay and promotion are very important to respondents. The study recommends that the bank should consider and give attention to job satisfaction variables which have lower level score level promotional opportunities, pay, management recognition and the nature of the work.