EFFECTS OF INDIVIDUAL FACTORS ON EMPLOYEES` PERFORMANCE IN OROMIA INTERNATIONAL BANK SHARE COMPANY

Abstract

Employees` performance is the major issue in an organization. The purpose of this study was to examine the effects of individual factors (that is the independent variables-employee competency, employee empowerment, supervisor-subordinate relationship, employee motivation and employee performance appraisal) on dependent variable-employees’ performance at OIB. The study also aimed to determine the effects of the above mentioned five independent variables on employees’ performance. It used quantitative methodology for the collection and analysis of data by conducting survey questionnaire from the employees in the bank. It was conducted with a population of 663 employees and a stratified random sample of 125 employees who are working in Headquarters and branches in Addis Ababa City. Self-administered questionnaires were prepared and distributed to 125 targeted respondents and all returned with 100% response rate. The items were assessed on five point Likert scale ranging from 1 to 5 (1=strongly disagree to 5=strongly agree).The Cronbach alpha coefficient reveals α=0.90 for this construct/scale, indicating high reliability. The data was processed and analyzed through SPSS software version 20.0 to apply statistical tests. Frequency and percentages were used to summarize the back ground information of respondents and frequency, percentages and mode were used to analyze the variables. Spearman`s rank order correlation was used to measure the relationship between the five independent variables (empowerment employee competency, employee empowerment, superior-subordinate relationship, employee motivation and employee performance appraisal) and the dependent variable(employees` performance) while coefficient of determination was used to determine the percentage of variation in the dependent variable is explained by variation in the independent variables. The results of the study revealed that there are positive and significant relationship between all the five independent variables and the dependent variable (employees` performance). The results of correlation coefficients and the coefficient of determination revealed that employees performance mostly depends on the individual factors that is empowerment employee competency, employee empowerment, superior-subordinate relationship, employee motivation and employee performance appraisal practices. Major findings showed that the effects of all the five independent variables on employee performance is positive in the bank. The overall finding indicates that employees` performance was not as such good and that employees were not motivated to do their job well so as to meet their performance targets. It was concluded that the entire hypotheses were tested and hence accepted. The study recommends that the bank may provide training and development to employees as to improve their competency in order to perform well on their jobs. Moreover, the bank should emphasize on how to enhance the motivation level of employees and make sure all employees are empowered to make their own decision freely on their work domain as well as provide good working environment for employees so that they can concentrate on their job. The current study further suggests that improvement in the empowerment employee competency, employee empowerment, superior-subordinate relationship, employee motivation and employee performance appraisal leads to better employees` performance It could result in improved performance of the organization, bank. Future researchers may study another individual factors which can impact on the performance level of employees and can modify the research framework so as their research is able to study this title in different perspectives.