Employees’ Satisfaction Practice Implication on the Performance of Organization (Cooperative Bank of Oromia)

Desalegn Fekadu Etefa


The main objective of the study was to assess the employees’ satisfaction practice implication on the performance of Cooperative Bank of Oromia. To do so, the methodology employed was descriptive & explanatory research design. Both qualitative & quantitative research approaches were followed. To conduct this study, primary and secondary data were collected. Majority of the data were collected from 300 employees working in 82 branches and the size was determined by formula of Yamane 1967. To proportionally select employees, Cochran 1963 formula was used and then respondents were randomly selected. The tools used were questionnaires, interview, focus group discussion, observation & document review. To collect the data, the tools were pre-tested and then pilot was taken to check for errors and any ambiguity. Questionnaires were prepared in 5-point likert scale. Analyses were done using both descriptive and inferential statistical tools. The descriptive statistics include, mean & standard deviation, while the inferential statistics were chi-square, ordinal logistic regression & Spearman’s Rank Correlation. The results of the research were markedly reported & summarized. Accordingly, the total descriptive statistics of the respondents have been described as feeling alright with the mean values 3.37ð > 67.4%ð > 202 for both predicted & predictor variables. Besides, both the primary and secondary data ratified that the bank’s performance is promising.  Moreover, the inferential statistics computed indicated the degree of relationship between the variables. The chi-square value of the explanatory variable was significant at P-value < α = 0.05 & Chi-Square at α =.05, df 4 were > the Table value (9.49). This shows there is association between the variable & performance of the bank. Together with this, ordinal logistic regression was applied. Consequently, computed values verified that there was strong links between the employees’ satisfaction practice & performance of the bank. The correlation between performance of the bank & employees’ satisfaction variable was 0.617, which is labeled as strong. Besides the odds ratio of the explanatory variable was >1, which means a unit increase in the variables cause > 1 entity increase on the performance of the bank.  The same result was also indicated by the inferential statistics. Accordingly, employees’ satisfaction practice has strong effect on the performance of Cooperative Bank of Oromia. Thus, it was concluded that proper handling & execution of practices of human resource management (employees’ satisfaction) has eloquent value on the performance of the bank. Lastly, the proposed intervention strategies identified were encouraging the employees by making the work environs attractive, conducting fair and transparent promotion systems, making consistent the reward and payment with the work load, and designing other mechanisms of encouraging workers apart from salaries by introducing other incentives so as to enhance the employees’ satisfaction level, which in turn boosts the bank’s performance.

Keywords: Cooperative Bank; Effect; Employees’ satisfaction; Performance; Statistics

DOI: 10.7176/JAAS/81-02

Publication date: January 31st 2023

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ISSN 2409-6938

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