The Effect of Employee-Employer Relationship Towards Organizational Performance: The Case of Commercial Bank of Ethiopia

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Addis Ababa University


This research paper aims to examine the effect of employee-employer relationship practices on the organizational performance: A case study of Commercial Bank of Ethiopia. The finding of this study is expected to be valuable to the service industry especially banks to emphasize in their HR policies and come up with the right solution to improve their employee relationship practices. This research primarily was primarily intended to fill the gap by emphasizing the advantage of healthy employee-employer relationship toward organizational performance in Banks. To address the research objective 390 sampled respondents were selected. Purposive sampling techniques were used to collect the data from the branches. 390 questioners were distributed; from which 386 sample respondents replied appropriately to the questionnaire. Data gathered were analyzed based on these 386 responses using SPSS 20 software package. Descriptive statistics and inferential statistics research approach were employed. All out puts were reported using frequency, correlation and multiple linear regression analysis results such as ANOVA and regression coefficient results. The result indicates that communicating ways, leadership styles, grievance handling procedure, and motivational compensations systems had statistically significant and positive correlation with organization performance. The study recommended that the bank ought to be provides employee recognition which encourages them to perform better at their job duty, establish and modify a prompt and effective grievance handling styles and create an open dialogue



employee-employer relationship, organizational performance, organizational performance