The Mediating role of Employee empowerment in the relationship between employee engagement and Employee Performance: A case of Commercial Bank of Ethiopia

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This research paper aims to examine the mediating role of employee empowerment in the relationship between employee engagement and employee performance: A Case of commercial bank of Ethiopia. Clear understanding of these human resource practices would enable the bank to develop and understand suitable HR strategies, business models, processes, and pilot projects. To address the research objective 390 sampled respondents were selected. Purposive and proportional sampling techniques were used to get the required sample size. 390 questioners were distributed; from which 387 sample respondents replied appropriately to the questionnaire. Data gathered were analyzed based on these 387 responses using SPSS 20 software package. Descriptive statistics and explanatory research approach were employed. All out puts were reported using frequency, correlation and multiple linear regression analysis results such as ANOVA and coefficient and regression results. The result indicates that employee engagement (vigor, absorption and dedication) and mediating variable (employee empowerment) were good explanatory variables of the HR practices influencing employee performance. The relationship between employee engagement and employee performance in achieving best performance was mediated by employee empowerment partially. Although the effect of this mediator on the employee engagement and employee performance relationship is small, the statistical significance tells that the addition of employee empowerment as a mediator influences the relationship between the dependent and independent variables. Employee empowerment mediates the relationship between employee engagement and employee performance positively. Also, it can be stated that more engaged and empowered employees becomes more performer in their job. The study recommended that the company has to give more emphasis in Career development, support employees in their work and growth, encouraging employees at their work for their career development respect to their best work and achievement by giving reward and recognition for the employees. The bank should deliver different opportunities to learn and grow for their work to improve employee engagement level and have engaged employees CBE should do more on all the employee empowerment benefits.


A Thesis Submitted to the School of Business and Economics for the Partial Fulfillment of the Requirement of MBA Degree in Business Administration


Employee empowerment, Employee engagement, Employee Performance, Interaction effect