Determinant Factors Affecting Employees‟ Performance in Ethio Telecom Zonal Offices: The Case of Addis Ababa Zonal Offices
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Date
2014-01
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Addis Ababa University
Abstract
The purpose of this paper is to explain the determinants of employees’ performance in Ethio telecom within Addis Ababa city by examining the determinant factors of motivation, ability and some bio data variables in Ethio telecom six Zonal offices. The quantitative research approach used through primary data collected from 140 respondents, individual performance, an ordered categorical variable, was regressed on motivation, ability, and certain bio data variables. The respondents were selected using stratified sampling technique. Statistical analyses were performed with the data in order to test the four main research hypotheses. An ordered logistic regression model was employed in the research. The main findings from results of the STATA routine indicate that, in Ethio telecom, ability has no significant effect on employees’ performance. On the other hand, motivation positively determines performance until some stage of experience, beyond which performance declines with experience. Performance increases with age until some point and beyond that point performance declines with an increasing age. Training also significantly determines the performance of employees. Further research is required into the dynamic nature of employees’ performance. Panel data econometric models might be used to explain the determinants of performance across time. Similarly, future empirical researches in the area in question will be helpful to consider space-time differences in explaining determinants of employees’ performance. Currently, many organizations like Ethio telecom are striving for the system of performance-based pay. This research has policy implications in relation to designing an effective performance-based pay system. On the other hand, the study contributes to the empirical literature, providing a clearer picture of the determinants of Ethio telecom employees’ performance. Keywords: Performance management, Ethio telecom, Employee Performance.
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Keywords
Performance management, Ethio telecom, Employee Performance