EFFECT OF EMPLOYEE SATISFACTION ON JOB PERFORMANCE - THE CASE OF AWASH BANK

Abstract

The study aimed to investigate the effect of employee satisfaction on job performance in Awash Bank's head office. A quantitative approach with an explanatory research design was used to carry out this research. The study examines a total sample population of 308 employees of the bank. The study used primary and secondary data to reach a certain conclusion, collected data were analyzed by descriptive statistics, correlation, and regression analysisthrough the SPSS 20. The study used four major employee satisfaction such salary and benefits, relation with supervisor, working environment and promotion as an independent variable, and job performance as the dependent variable. The finding of the study was that correlation analysis shows that salary and benefit, relation with supervisor, working environment and promotion havea positive relationship and working environment and promotion isa significant relationship, and salary and benefit and relation with the supervisor are insignificant relationship. On regression analysis all employee satisfaction has positive and working environment and promotion are significant effects on job performance, and salary and benefit and relation with the supervisor are insignificant effects on job performance. Finally, there is less opportunity for training, the payment system of the bank was less flexible with the market condition and there is no fast promotion for the employees.To avert this problem the researcher recommends giving training that is related to their work, giving fast promotions to motivate employees, and revision of salary scale compared to the market. Also, supervisors should assume the employees as valuable assets for the bank and also support them to get high performance.