The Effect of Internal Communication on Employees Engagement: The Case of Commercial Bank of Ethiopia (CBE)

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Addis Ababa University


This research was conducted to examine the effect of internal communication on employees’ engagement on Commercial Bank of Ethiopia (CBE). Data was gathered from 287 employees working at Head Office, District Offices and six special branches found in Addis Ababa. Internal communication is measured by using variables Superior -Subordinate communication relationship, Quality of information, Opportunity for upward communication and Reliability of Information, whereas the dependent variable, employees’ engagement is measured by using three dimensions: Vigor, dedication and absorption. The mean and standard deviation of internal communication and employee engagement were computed and interpreted. Pearson correlation Coefficient (r) was used to determine the relationship between each independent variable with the dependent variable employees engagement. The descriptive statistics result shows that employees perceive moderate level of all engagement and for variables of internal communication. The finding indicates that there is significant and positive relationship between internal communication and employee engagement. This implies that any increase or decrease on variables of internal communication will bring corresponding change on employees’ engagement. Further in this study internal communication has 30 % influence on employees’ engagement while the remaining 70 % is influenced by factors unaccounted in this research. Furthermore, it is found that variables of internal communication predicts employee engagement positively through quality of information (B=.187, P<.018), superior subordinate communication relationship (B=.0181, P<.003), opportunity to upward communication (B=.160,P<.022)and reliability of information(B=.136, P<.063).Considering the findings above, the Bank should give priority for quality of information and go down through other variables of internal communication according to the magnitude of their Beta Value. Of course not neglecting their significance value also. In this study, opportunity to upward communication ranked at the third position and it is highly suffered in CATS process. As a result, since more than 73% of employees are working in this process, top management should also give special focus for this variable in CATS process to attain sound improvement in overall internal communication practice of the Bank



Internal Communication, Employees' Engagement, Commercial Bank of Ethiopia