Identifying Factors that Influence Employee Engagement: the Case of Commercial Bank of Ethiopia
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Date
2020-06
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A.A.U
Abstract
Taking into account the global status of human resource movement and utilization as part of competitive mechanisms for businesses in the international economic, employee engagement can be considered as the most important human resource factor that can guide how a company can respond to market actions through its resources. Employees bring the creative mind that attracts customers and then business opportunities. According to Heartfield (2012) many business entities need to secure the positive attitude and motivation of their employees in order to sustain with the fierce competition. Emotional existence matters most at work stations than physical existence of employees in order to produce customer satisfaction and organizational effectiveness. Therefore, it is imperative to make an in-depth look into how employee engagement is manipulated through various factors in an organization. This research project is intended to examine factors that are selected based on outputs from previous researches and their influence on employee engagement in the banking sector of Ethiopia by taking Commercial Bank of Ethiopia as case selected for the research project. The explanatory variables taken into the research project were job characteristics, reward and recognition, organizational justice, Leadership and. perceived organizational support. A descriptive research design was employed and data were collected from primary sources using a standardized questionnaire and 300 questionnaires were filled out and returned which has 89% response rate. The collected data were analyzed through descriptive, correlation and regression analysis using Statistical Package for Social Sciences (SPSS) IBM version 25. The findings of the research revealed that job characteristics, organizational justice, leadership and perceived organizational support were positively and significantly correlated with employee engagement whereas result of reward and recognition showed insignificant influence of on EE and status of engagement in CBE employees are moderately engaged. The study recommended that the management of the CBE should pay attention to key areas that it can alter employee engagement through provision of adequate autonomy and challenging assignments that can require discrete decision and problem solving skills of employees to ensure their full-self engagement; and also suggested to undertake corrective actions in order to enhance motivation of employees at their work stations through improved perception of better understanding of personal issues by the management. Moreover, the bank needs to have a revision on how fair the working procedures are across its employees and look into leadership development programs to improve the capacity of managers to enhance the engagement of employees through leadership characters. However, this study is subjected to limitations since the research project applied descriptive, cross sectional, quantitative, small sample size and only 5 independent factors where a common method bias is a serious limitation. Hence, future research might apply a longitudinal in large scale by considering banking sector in Ethiopia and by including many factors that might help to explain EE. And insignificant influence of reward and recognition on employee engagement, further study is required on this issue to identify factors causing such relationship
Description
Research Project Submitted to Addis Ababa University in partial Fulfilment of the Requirement for the Degree of Master of Business Administration (MBA)
Financial Services (Banking)
Keywords
Employee Engagement, Job Characteristics, Leadership and Perceived Organizational Support