The Effect of Employee Engagement on Job Performance And the Mediating Role of Job Satisfaction: The Case of Ethio Telecom (Addis Ababa)

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The main purpose of this study was to analyze the effect of employee engagement on job performance and the mediating role of job satisfaction in Ethio telecom (Addis Ababa).The researcher employed Utrecht Work Engagement Scale (UWES) and the short version of Minnesota Satisfaction Questionnaire (MSQ) used for measuring employee engagement and Job satisfaction. Descriptive statistics used to analyze the data and cluster sampling used to select the samples. A structured close ended questionnaire used to collect data from a total target population 8,794 permanent employees and sample of 383 professional and managerial employees in Ethio Telecom (Addis Ababa). The SPSS version 22 used to conduct the statistical analysis of all data in this study. Pearson Correlation and multiple regression analyses were conducted to examine the suggested hypothesis and test the direct and mediated relationships among variables. The findings indicated that the overall employee engagement dimensions have positive and significant relationship with job performance with vigor (r=.544), Absorption (r=.547), and dedication (r=.245) with p=.000 with absorption had the most contribution. The overall Employee Engagement has significant effect on job performance with (Beta=.488, p=0.00). The results suggested that Job satisfaction had also positively and significantly affected Employee’s job performance. Furthermore, four steps and bootstrapping criteria used to analyze the partial mediation of associations between Employee engagement (vigor, dedication, and absorption) and job performance of Ethio Telecom (Addis Ababa). Therefore, it is better that Ethio Telecom give priority on the dedication dimension Employee engagement and provide due attention how to inspire, proud and enthusiastic about their job to get crucial competitive advantages and successful including higher productivity and lower employee turnover.


A Thesis Submitted to Addis Ababa University College of Business and Economics, School of Graduate Studies in Partial Fulfillment of Master of Science in Management Specialization in Organization Excellence and Total Quality Management


Absorption, Dedication, Employee Engagement, Job Satisfaction, and job performance