THE EFFECT OF EMPLOYEE SATISFACTION ON JOB PERFORMANCE - THE CASE OF ZEMEN BANK S.C

Abstract

The study aimed to investigate the effect of employee satisfaction on job performance in Zemen Bank S.C. Data were collected through structured close and open ended questionnaires from the sample of 276 permanent employees through simple random method of sampling selected from head office, main branch and other branches of Zemen Bank S.C located in Addis Ababa. Data were analyzed using descriptive and inferential statistics with the aid of Statistical Packages for Social Scientists (SPSS) version 20. Multiple regression analysis technique wereused to explain the nature of the relationship between employee’s satisfaction dimensions (salary and benefit, performance evaluation criteria, relation with supervisor, working environment, training and development, promotion and job characteristics) and job performance. The reliability coefficient of 0.984computed using Cronbach Alpha formula to measure the internal consistency of the questionnaire items. The result suggest that there is significant relationship between the independent variables i.e. salary and benefit, performance evaluation criteria, relation with supervisor, working environment, training and development, promotion and job characteristics with job performance.Regression analysis result indicated that 93.5% of the variation on job performance of the bank could be explain by the sum up measure of salary and benefit, performance evaluation criteria, relation with supervisor, working environment, training and development, promotion and job characteristics. The response of employees revealed that most of them are unsatisfied with the bank payment structure, performance evaluation criteria, supervision, working environment, training and development, promotion and job characteristics. Based on this, the researcher recommended that,in order to enhance employee performance the bank should effectively implement the dimensions of employee’s satisfaction namely salary and benefit, performance evaluation criteria, relation with supervisor, working environment, training and development, promotion and job characteristics.