Abstract:
Employee empowerment has received a lot of attention and has become a hot topic in management and
public research recently. Hence, the main objective of this study was to investigate the effect of
employee empowerment on employee’s performance in case of some selected private commercial Banks
(Dashen bank, Abyssinia bank, Awash International bank, Wegagen bank, United and Abay bank) in
Gondar town. To conduct this study the researcher was employed both descriptive and explanatory
design and mixed research approach. To determine a sample of 116 employees’ Simple random
sampling technique were applied. The source of data was primary source and the data collection
instruments were questionnaires and interviews. Before the main study conducted, a reliability test was
carried out to measure the degree of consistencies among the measurement of variables using a pilot
test on 12 bank employees who did not participated in the main research. Quantitative data were
analyzed through descriptive statistics, Pearson correlation analysis, and multiple regression analysis
was conducted to determine the effect of independent variables on dependent variable. In addition,
qualitative data analyzed through narrative approach. The findings of the study shows that six-employee
empowerment practices that are training, decision-making, reward system; leadership style, recognition
and healthy working environment have significant effect on employees’ performance. In addition,
employees’ empowerment has positive relationship with employees’ performances. As a result 68.8% of
employees, ‘performance is explained by six empowerments practices that are training, decision
making, reward system; leadership style, recognition and healthy working environment. The rest 31.2%
of employees’ performance have explained by other empowerment factors that are not included in this
study. Therefore, I recommend it is better for future researchers to find these elements.
