The Impact of Corporate Governance on Employee Job Satisfaction (The Case of Five Food Manufacturing Companies in and Around Addis Ababa)
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Date
2024-02-23
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AAU
Abstract
The purpose of this study is to evaluate the impact of Corporate Governance on Employee Job
Satisfaction of employees working in five private food manufacturing companies managed by board
of directors. The objective of the study is to analyze the causal effect relationships between corporate
governance, examine the job satisfaction level and evaluate the quality of corporate governance
practices in the organizations addressed by this study. The study used explanatory research design &
quantitative approach with cross-sectional data collection method. The study used close-ended
structured questioner. A 5-point Likert-scale is used in the questioner. In the research, corporate
governance is explained by seven variables i.e. Board of Directors, Audit Committee, Executive
Management Body, Code of Governance, Internal Control, Industrial Relation Management and
Stakeholders Relation Management were used to explain corporate governance. Employee job
satisfaction is explained by nine variables. The questioners were distributed to 122 randomly selected
respondents. The data were analyzed using descriptive, correlation and regression statistical analysis
techniques. The correlational & regression analysis shows that corporate governance positively &
significantly affects employee job satisfaction. Likewise, the individual corporate governance
variables such as Board of Directors, Executive Management Body, Internal Control, Code of
Governance & Industrial Relation Management exhibited positive & significant impact on Employee
Job Satisfaction. Among them, Code of Governance contributed the highest variation followed by
Board of Directors, Executive Management Body & Internal Control. Whereas, Audit Committee &
Stakeholders Relation Management exhibited positive but insignificant impact on employee job
satisfaction. The study recommends the food manufacturing companies to strengthen their corporate
governance practices and work to address their employees job satisfaction to improve their
organization performance and reduce employee turnover. This paper is expected to fill the availability
gap of similar research studies in the food manufacturing sector in Ethiopia