Factors Affecting Employee Performance in a Competitive Telecommunications Market
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Date
2026-06-02
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Addis Ababa University
Abstract
The telecoms market in Ethiopia was a fast-changing place. Safaricom sat in like a kid in a sweetshop, and suddenly what was once a monopolist; Ethio Telecom; had to take seriously what competitiveness really meant. This report seeks to establish six HR factors that may account for variation in performance between some workers versus others in five Addis Ababa zone offices of Ethio Telecom. These were: Motivation; Training & Development, Leadership Style; Compensation & Benefits; Work Environment; and Organizational Culture. These factors were used as a practically hypothesized Strategic HR Bundle; then any one item wasn’t so important as the fact that the six used as a bundle explained performance variation. 340 staff surveys were completed (343 issued, 340 returned 99.1%) and analyzed in SPSS. A Likert five-point scale was used. Variance explained was around 53.2% (R = 730, R squared = 532 Adjusted R squared = 524, 6,333) ANOVA < .001. Training & Development was the most significant predictor (β = .245, p < .001). The next best were Organization (β = .159), Motivation (β = .152), Leadership Style (β = .139) and Work Environment (β = .129). Compensation & Benefits was not significant (β = .069, p = .129) though it was the most poorly rated variable in the survey (M = 2.799). Five of the six hypotheses were supported. The main points for the Ethio Telecom boss fix the training first structural intractability in compensation is a ticking bomb. Cultural flexibility is the gap which could be destructive down the line.
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Employee Performance, Motivation, Training and Development, Leadership Style, Compensation and Benefits, Work Environment, Organizational Culture, SHRM, Ethio Telecom