THE EFFECT OF EMPLOYEES EMPOWERMENT ON THEIR PERFORMANCE IN SELECTED PRIVATE COMMERCIAL BANKS IN DEBRE BERHAN TOWN

Abstract

Employee empowerment considered as the main important human resource practices and it is motivational practices for employees in order to enhance employees’ performance because organization ultimate goals and objectives can achieved through higher performance of employees. The main objective of this study was investigated the effect of employee empowerment on employees performance in case of some selected private commercial Banks (Dashen bank, Abyssinia bank, Awash International bank, Wegagen bank, united and Abay bank) in Debre Berhan town, Ethiopia. To conduct this study the researcher were employed explanatory research design and mixed research approach used. To determine a sample of 116 employees’ Simple random sampling technique were applied. The source data is primary source and the data collection instruments are questionnaires and interview. Face-to-face interview has conducted with six managers. 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.