THE EFFECT OF EMPLOYEE’S EMPOWERMENT ON THEIR PERFORMANCE: in Selected Private Commercial Banks in Gondar Town.

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.