The role of Employee engagement on organizational Performance: The case of Commercial Bank of Ethiopia Kirkos District in Partial Fulfillment of the Requirements for the Award of Master of Arts Degree in Business Leadership
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Date
2024-08
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Addis Ababa University
Abstract
The commercial banking in Ethiopia is expected to make a paradigm shift in service as global competition is inevitable as foreign banks to join the competition soon. For this reason domestic banks need to compete globally where highly engaged employees are required to meet operational excellence. One of the core values of CBE is that employees are considered to be the most valuable assets. Various studies have revealed that employee engagement has a positive effect on profitability. Accordingly, this study aimed to explore employee engagement's effect on organizational financial performance in the case of CBE Kirkos district. The three dimensions of employee engagement measure namely vigor, dedication, and absorption were tested for their predictive role on organizational performance. The study adopted a quantitative and a survey research approach with a five-point Likert scale questionnaire distributed to the respondents. A convenience sampling approach was used to select the target respondents of the survey, where 125 Self-administered questionnaires were distributed, out of which 117 were collected. The data collected was analyzed through descriptive, correlation, & regression analysis using SPSS Version 27 software. The correlation analysis result showed that Absorption has a strong positive relationship with organizational financial performance. The finding of the study using a multiple linear regression analysis revealed that all the independent variables (Vigor, Dedication, and absorption) have positively predicted organizational performance. Based on the findings, the researcher forwarded recommendations and future research directions.
Keywords: Employee Engagement, Vigor, dedication, absorption, organizational performance