ADDIS ABABA MEDICAL AND BUSINESS COLLEGE

SCHOOL OF POST GRADUATE STUDIES

Assessment of Determinants of employee’s job satisfaction among private and

public commercial banks in Dire Dawa Administration

A Thesis Research summated to Addis Ababa Medical and Business College.

A Thesis Research to the school of post Graduate of in partial fulfillment of

the requirements for the muster of Business Administration (MBA)

By Abel Belete ID No. 006/12

ADVISOR:- ASEMENEW (Ass. Prof)

July, 2021

Dire Dawa, Ethiopia

 ADDIS ABABA MEDICAL AND BUSINESS COLLEGE
SCHOOL OF POST GRADUATE STUDIES

DEPARTMENT OF MANAGEMENT (MBA PROGRAM)

DETERMINANTS OF EMPLOYEES’ JOB SATISFACTION

AMONG PRIVATE AND PUBLIC COMMERCIAL BANKS
IN DIRE DAWA ADMINISTRATION

BY: ABEL BELETE

ADVISOR: ASEMENEW (Ass. Prof.)

A THESIS SUBMITTED TO THE SCHOOL OF GRADUATE STUDIES OF

DIRE DAWA UNIVERSITY DEPARTMENT OF MANAGEMENT IN
PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD
OF MASTER OF ARTS IN BUSINESS ADMINISTRATION (MBA)

July, 2021

DIRE DAWA, ETHIOPIA

 ADDIS ABABA MEDICAL AND BUSINESS COLLEGE
SCHOOL OF POST GRADUATE STUDIES
THESIS APPROVAL
As members of Board examiners of the final MBA thesis open defense examination, we certify
that we have read and evaluated the thesis prepared by ABEL BELETE entitled
“Determinants of Employees’ Job Satisfaction among Private and Public Commercial
Banks in Dire Dawa Administration”. We recommend that thesis be accepted as fulfilling the
thesis requirement for the degree of masters of arts in business administration (MBA).

Board of Examiners

External Examiner

________________________________________ ____________ ____________

Name Signature Date

Internal Examiner

________________________________________ ____________ ____________

Name Signature Date

Chair Person

________________________________________ ____________ ____________

Name Signature Date

DECLARATION
I, the undersigned declare that, this research entitled “Determinants of Employees’ Job
Satisfaction among Private and Public Commercial Banks in Dire Dawa Administration”.
Is the outcome of my own effort. All sources of materials used in the study are duly
acknowledged. I have produced it independently except for the guidance and suggestion of the
research advisor. This study has not been submitted for any degree in this university or any other
university. It is offered for the partial fulfillment of the Master of Arts in business administration
(MBA).

Name: ABEL BELETE

Signature: _______________

Date: ___________________

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 ADDIS ABABA MEDICAL AND BUSINESS COLLEGE
SCHOOL OF POST GRADUATE STUDIES
ENDORSEMENT
As Thesis Research advisor, I hereby certify that I have read and evaluated this thesis prepared,
under my guidance, by ABEL BELETE entitled “Determinants of Employees’ Job
Satisfaction among Private and Public Commercial Banks in Dire Dawa Administration”. I
recommended that it be submitted as fulfilling the thesis requirement for the degree of masters of
arts in business administration (MBA).

Name: Asemenew (Ass. Prof.)

Signature: ____________________

Date: ________________________

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 ACKNOWLEDGEMENT
First of all, I would like to thank you the almighty Gad for giving me strength and patience.
Second we would like to express our deepest gratitude to our advisor ---------------------for his
unreserved follow up, constructive comments and overall partners that helped us preparing this
research paper. Our special thanks also to our family and friends for their unreserved moral and
financial support.

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 TABLE OF CONTENTS

ACKNOWLEDGEMENT.................................................................................................................iii
TABLE OF CONTENTS.....................................................................................................................i
LIST OF TABLES.............................................................................................................................iii
LIST OF FIGURES...........................................................................................................................iv
ACRONYMS/ABBREVIATIONS.....................................................................................................v
ABSTRACT........................................................................................................................................vi
CHAPTER ONE.................................................................................................................................1
1. INTRODUCTION...........................................................................................................................1
1.1 Background of the Study...........................................................................................................1
1.2. Statement of the problem..........................................................................................................2
1.3. Research Questions...................................................................................................................5
1.4 Objective of the Study...............................................................................................................6
1.5. Research hypotheses.................................................................................................................6
1.6. Significance of the study..........................................................................................................6
1.7. Scope of the study.....................................................................................................................7
1.8. Limitation of the Study.............................................................................................................7
1.9 Operational definition and Terms..............................................................................................7
1.10. Organization of the study........................................................................................................7
CHAPTER TWO................................................................................................................................8
REVIEW OF RELATED LITERATURE........................................................................................8
2.1 Conceptual Discussion of Job Satisfaction................................................................................8
2.2 Determinants of Employee Job Satisfaction..............................................................................9
2.2.1. Determinants related to organization...................................................................................10
2.3. Determinants related to non-organization..........................................................................13
2.3.1. Demographic factors of job satisfaction........................................................................13
2.4. Theoretical Framework.......................................................................................................13
2.5. Empirical study on factors for job satisfaction...................................................................15
2.5.1. Empirical study related to local work.............................................................................16
2.6. Conceptual Model...................................................................................................................17
CHAPTER THREE..........................................................................................................................19

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 3. RESEARCH METHODOLOGY.................................................................................................19
3.1 Introduction..............................................................................................................................19
3.2 Research Design......................................................................................................................19
3.3 Research Approach..................................................................................................................20
3.4 Types and Sources Data...........................................................................................................20
2.5 Population................................................................................................................................20
3.6 Sample design and Sampling Technique.................................................................................20
3.7 Data Collection Methods.........................................................................................................22
3.8 Procedures of Data Collection.................................................................................................22
3.9 Methods of Data Analysis.......................................................................................................23
3.10 Specification and Description of Study Variables.................................................................24
3.11. Reliability and Validity.........................................................................................................25
3.11.1 Reliability...........................................................................................................................25
3.11.2 Validity...............................................................................................................................25
3.12. Ethical consideration............................................................................................................26
CHAPTER FOUR.............................................................................................................................27
RESULTS AND DISCUSSION........................................................................................................27
4.1. Reliability Test........................................................................................................................27
4.2. Descriptive analysis................................................................................................................28
4.2.1. Demographic characteristics of Respondents......................................................................28
4.2.2. Perceived employees’ job satisfaction in Commercial banks..............................................32
4.2.3. Employees’ Job satisfaction and demographic characteristics of respondents...................34
4.2.4. Comparisons between Public and Private commercial banks employee’s Perceptions
towards independent variables.......................................................................................................36
4.3. Inferential/ Econometrics Analysis.........................................................................................39
4.3.1Test of Model.........................................................................................................................39
4.3.2 Logistic Regression Parameter Estimates.............................................................................43
4.3.3 Hypothesis Testing...............................................................................................................47
CHAPTER FIVE...............................................................................................................................50
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS.........................50
5.1. Summary of Findings.............................................................................................................50
5.2. Conclusions.............................................................................................................................51

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5.3. Recommendations...................................................................................................................52
REFERENCE....................................................................................................................................54

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 LIST OF TABLES
Table 3.1 Expected Sign of Variables......................................................................................................36
Table 4.1: Summary of Descriptive Statistics............................................................................................38
Table 4.2: Unit-Root Test Results.............................................................................................................40
Table 4.3: Var Lag Order Selection Criteria..............................................................................................41
Table 4.4: ARDL Bounds Test Result......................................................................................................43
Table 4.5: Model Fitness..........................................................................................................................44
Table 4.6: Heteroskedasticity Test:............................................................................................................46
Table 4.7: Breusch-Pagan-Godfrey serial correlation LM test...................................................................46
Table 4.8 Ramsey Reset Test.....................................................................................................................47
Table 4.9: Long Run Estimation Results of ARDL Model........................................................................49
Table 4.10: Short run Estimation Results of ARDL Model......................................................................55
Table 4.11: Summary of Model Diagnostic Test.......................................................................................58

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LIST OF FIGURE

Figure 2.1.Conceptual Framework:...............................................................................................26

Figure 4.1.Test fornormality..........................................................................................................45

Figure 4.2: Parameter stability tests: Plots of CUSUM and CUSUMSQ......................................48

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 ACRONYMS/ABBREVIATIONS
BSC Balanced Scorecard
HRM Human Resources Management.
HR Human Resource
LBDQ Leader Behavior Description Questionnaire.
SPSS Statistical Package for Social Science.

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 ABSTRACT
This research was aimed at determining factors affecting employees’ job satisfaction in
commercial banks in Dire Dawa. The study applied a quantitative research approach via
employing descriptive and explanatory research designs to quench the specific and general
objectives of the study. The researcher used proportionate stratified random sampling technique
to select 317 employee respondents and employed census inquiry to select 100 managerial
employees in both private and public commercial banks at DDA. Moreover, survey method
through cross-sectional method of inquiry was employed to distribute and gather structured
questionnaire from respondents of the study. Both descriptive and ordered logistics regression
were employed to satisfy specific objectives of this study. The descriptive statistics result showed
that 49.6% rated their job satisfaction as average or moderate, 32.9% described their job
satisfaction as high and the remaining 17.5% revealed their job satisfaction as low. In addition,
the mean and t-statistics results revealed that the average job satisfaction of employees in public
commercial banks was significantly better than employees in private commercial banks.
Similarly, the managerial employees showed higher job satisfaction than non-managerial
employees. In addition male bankers’ job satisfaction was significantly better than female
bankers among private and public commercial banks in Dire Dawa Administration. The ordered
logistic regression revealed Pay and Benefit, Working Condition, Equity/fairness, Relationship
with co-worker, Recognition, goal setting behavior, promotional opportunities, job enrichment,
monthly income, gender, and employment category significantly determine banker’s job
satisfaction in the study area since the p values of those antecedents is less than 0.05. However
Training and development and supervisory relationship weren’t significantly influence
employees’ job satisfaction in Private and Public commercial banks since the P-values were
above 5%. Generally, there was also significant job satisfaction difference among employees
due to their affiliation, gender, and work experience, age and employment category. So, Private
and Public commercial banks in DDA should give due attention to antecedents of employees’ job
satisfaction.

Key words: Determinants, Job satisfaction, private and public commercial banks, Dire
Dawa Administration City

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 CHAPTER ONE
1. INTRODUCTION
1.1 Background of the Study
Every organization strives to be the strongest company in its industry. This competitive edge is
dependent upon the availability of resources and their most effective usage. Organization assets
may fall in various categories, like physical, financial and human resources. Human resource is
considered to be the most vital and useful asset, as other assets can be exploited with the proper
use of human resources (Pria,2013 and Mahmud, M. T., Hasan, M. T. and Asif, A. S. M. 2014)

The work environment must be made stable in order to satisfy multiple employee needs
(Jayasankar, 2011). Employee job satisfaction has also been regarded as a positive emotional
state that emerges from the judgment of all aspects of a working relationship within the
employees (Cheng, Lai, & Wu, 2010). Kaliski (2010) viewed employee job satisfaction as a vital
constituent that leads to recognition, income, promotion, and the achievement of other goals that
lead to a feeling of fulfillment.

Bader et al. (2013) cited by Mohammed(,2018)revealed work-itself, promotions, pay and

benefits, working conditions, relations with supervisors and co-workers as factors that contribute
significantly to employees' job satisfaction of bank employees in eastern Libya. Factors such as
gender, age and type of occupation had no significant effects on the level of job satisfaction
while marital status, education level, and the duration of the work showed significant effects.
Similarly, Papageorgiouet al. (2013) cited by Maher and premanandam,(2018) identified work
environment, salary, possibility for growth, relationship with co-workers, and interesting work as
factors perceived most important job satisfaction by employees of banks in Cyprus.
Mansor(2012) cited by Pria,(2013) found confirmatory evidence that motivational factors such a
rewards system, supervision, working environment, and competition influenced job satisfaction
levels among bankers in the eastern region of Malaysia.
Challenging jobs, an equitable reward system, including salary and promotional opportunities,
good co-worker relationships, and supportive working environment were acknowledged as
factors to affect job satisfaction (Schermerhorn, Hunt, Osborn, &Uhl-Bein, 2011). Shrivastava
and Purang (2009) examined the job satisfaction levels of public sector and private sector bank
employees in India and found that private sector bank employees perceived greater satisfaction

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with pay, social, and growth aspects of the job as compared to public sector bank employees. On
the other hand, public sector bank employees expressed greater satisfaction with job security as
compared to private sector bank employees.
In a study of the bank staff in Pakistan, employee satisfaction is viewed as an important
constituent that can augment companies‟ performance and productivity (Christina, &Gursoy,
2009; Matzler&Renzl, 2007).
Yadav and Dabhade (2013) concluded in their study that job satisfaction influences employee
morale, turnover, absenteeism and pro-social behavior, which can be crucial for organizational
success. Moreover, satisfaction with career advancement has a strong association with job
satisfaction; employees are more committed towards their job to get higher reward and
appreciation.In its most basic sense, job satisfaction is a positive emotional state resulting from
evaluating one’s job experiences. Job dissatisfaction occurs when one’s expectations are not met.
For example, if an employee expects clean and safe working conditions, then the employee is
likely to be dissatisfied if the workplace is dirty and dangerous (Mehari and Premanandam,2018).
Dimensions of job satisfaction frequently mentioned include work, pay, promotion opportunities,
supervision, and co-workers.
Peoplejoinorganizationswithcertainmotiveslikesecurityofincomeand job, better prospects in
future, satisfaction of social and psychological needs. Every person has different sets of needs at
different times. It is the responsibility of management to recognize this basic fact and provide
appropriate opportunities and environments to people at work to satisfy their needs (Mohammed,
2018). Hence, the purpose of this will try to assess job satisfaction level among employees in
public and private banks.Job satisfaction is not an easy feeling since the employees are always in
question to meet their limitless needs. Now days, employee’s satisfaction is a daily discussed issue in
the Banks top level and operational level managers. The reason is that employee satisfaction is the
root cause for success in the banking industry. Employees are the catalyst for these activities.
Meanwhile the existing a research conducted on job satisfaction of the bank employees of CBE and
the result shows that 51% employees are not satisfied by the banks over all benefits, salaries, and so
on. In addition to that the bank clearly indicates, in the corporate strategy of the bank, to increase the
job satisfaction level of employees more than 80 %.( Tamirat, 2016)

1.2. Statement of the problem

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As an attitude of an employee over a period of his/her job, employees’ satisfaction and
dissatisfaction change over the period of time. Employee satisfaction is an attitude and
measuring attitudes at workplace is not an easy task (Crossman and Abou-Zaki, 2003 cited in
Mohammed, 2018). The concept of “job satisfaction” remains as one of the densely studied area
of business studies; mostly, the factors affecting the said concept were frequently questioned
(Mehari and Premanandam, 2017).In today’s business scenario of the service industry, that
contains continuous changes and uncertainty, put an efforts of identifying important factors of
employees’ satisfaction understand differently. The service industries in countries’ economy
have started to grow recently and among the financial market banking sectors have grown
rapidly and become one of the most important business markets and passing through the age of
global competition, where rapid change, fierce competition and diversity have become the
standard (Ibid).
According to Dogan (2009), the accomplishments of an organization is to build a workforce in
which employees feel included and welcomed and work together with mutual respect in order to
enhance individual and organizational productivity. Job satisfaction is a key instrument to gauge
the organizational health, since quality of the service largely depends upon the human resources
(Pirya, 2013 and Mohammed, 2018). In organization the primary intentions of any human
resource management as an employee and managerial organization, is to manage the employees
at work and a well-managed organization sees employees’ satisfaction as the cause for quality
and productivity of organization (Armstrong, 2009) where it underlined that an effective
organization will always promote a sense of satisfaction for its employees. Employee satisfaction
is one of the policies of managers to increase effectual job management amongst employees in
organizations (Tella, Ayeni,& Popoola., 2007).

A common phrase implied in the corporate world is that satisfied employees increase customer
satisfaction and loyalty. Customer retention is highly dependent on how employees deal with
customers. Satisfied employees are more likely to be friendly, upbeat, and responsive which the
customers appreciate. Dissatisfied employees can also increase customer dissatisfaction. Since
there is a tremendous competition among various banks to increase the market share and get
most of the business from the market, dissatisfying a customer can be very handy for a bank.

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There is a supposition that the less satisfied workers have a tendency to leave the organization
while the satisfied employees remain and grow in the job. Findings on these assumptions
advocate that companies ought to keep in mind the key determinants affecting employee job
satisfaction to overcome the issues of absenteeism, low morale and turn over in organizations
(Oshagbem, 2017).
In the contrary to such organizational environment employees are quickly becoming the most
important asset and therefore, successful banks generally recognize the crucial role of acquiring a
right workforce and retaining satisfied employees if they hope to stay viable in banking industry.
Similarly, the existence of understanding in the modern trend of the importance of employees’
satisfaction urge the organization trying their best to fulfill employee needs and demands as well
as used different techniques to identify and develop means of satisfaction for their workforce.
In today's business climate of continuous changes and uncertainty, the importance of employees’
job satisfaction to organizational performance has no question. The service sector in Ethiopian’s
economy has started to grow recently and among the financial market banking sector is one of
the most growing service sector. Over the years the market has seen immense opportunities in
this sector and a lot of major players have joined this sector. Hence many scholarly works
attempt to engage in the area of employees’ satisfaction in different banks.

Yesu (2018) in his study “factors that influence employees job satisfaction in Ethiopian Private
commercial banks in Addis Ababa city” and identified nature of work, workplace environment,
recognition, motivation, promotion opportunities and benefit packages as the antecedents of job
satisfaction. However, his study was shy in considering managerial employees job satisfaction
among Private commercial banks in Addis Abeba.
Another work regarding employee’s job satisfaction is that of Assessment of employee job
satisfaction: in Africa leprosy, tuberculosis and rehabilitation training center (alert) employees. It
revealed that supervisory relationship, work conditions, work relationship, communication,
employee job safety and health, working environment, training and development, salary and
benefits as indicators of employee’s job satisfaction.(Mehari and Premanandam,2018).

Tamirat (2016) attempted to assess employee’s job satisfaction in Commercial bank of Ethiopia
with special emphasis to north Addis District grade three city branches; he has taken job
satisfaction attributes such as salary and benefits; work environment; career development and

4
supervisory relationship as study variables. The study revealed that the majority of the
employees/respondents were satisfied by their basic salary albeit opportunity for promotion and
transfer and high work load in one way and in another work environment, career development
and supervisory relationship were also rated as sources of dissatisfaction

In the above mentioned works though they were attempt to contribute to the area of job
satisfaction but their limitation in-terms of geographical gap (i.e. none of them extend to the
eastern parts of country’s’ employee of organizational environment) conceptual also limited to
only few determinants; some limited to salary and opportunities for promotion, others limited to
practice on motivation, leadership, organizational culture, and working environment as
determinants of job satisfaction.

It is therefore, against these gaps that this paper attempt to investigate the determinants of
employees’ satisfaction in Dire Dawa city with comparative analysis of public and private banks.
Its significant for the area seems for gotten yet by mentioned study, does not mean to undermine
the progress made in certain aspects in one way. But in another hand although progress has been
made in certain aspects of banks employee job satisfaction , still too little is known about the
level of employee job satisfaction based on a comparative study between government and private
owned banks. Besides, the subject under study is not yet fully discovered based on the
differences and similarities between government and private owned banks. Finally, due to all the
above problems to be solved thereby to support the country wide economic development in
various sectors of the economy and fill research gaps in the subject and as of one employee in
this organization and managerial organ, the researcher needs to conduct on this selected topic.
Accordingly, the study try to answer the following research questions:
1.3. Research Questions
1. What is the extent of employee job satisfaction in private and public owned commercial
banks?
2. What are the determinants of employees’ job satisfaction in commercial banks at Dire
Dawa Administration?
3. Is there a significant job satisfaction differences among employees due to gender, age,
experience, employment category, type of employment in commercial banks?

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 4. What are the challenges of employee’ job satisfaction in private and public owned banks
at Dire Dawa?
1.4 Objective of the Study
1.4.1 General Objective
The main objective of the study is to examine factors affecting employees’ job satisfaction in
commercial banks in Dire Dawa.
1.4.2 Specific objective
1. To assess the status of employees’ job satisfaction in public and private owned commercial
banks at Dire Dawa?
2. To rank determinants of employee job satisfaction in commercial banks at Dire Dawa?
3. To investigate whether there is significant job satisfaction difference among employees due to
gender, age, experience, employment category, type of employment in commercial banks at Dire
Dawa?
4. To identify challenges of employees’ job satisfaction in private and public banks in Dire Dawa
1.5. Research hypotheses
H1; Adequate salary and benefits have significant influence on employee job satisfaction.
H2; Promotional opportunity have a significant influence on employees’ job satisfaction.
H3; Effective supervisory relationship has a significant influence on employees’ job satisfaction.
H4; Training and development have a significant influence on employees’ job satisfaction.
H5; Recognition and conducive working environment have significant influence on employees’
job satisfaction.
H6; Perceived equity has a significant influence on employees’ job satisfaction.
1.6. Significance of the study
The results of this study will serve as input for the organization to assist in decision making, in
identifying key variables in order to develop human resource strategies to address and improve
employee job satisfaction. By understanding employee job satisfaction factors, the management
of banks can derive ways to improve employee job satisfaction level. Last but not least, this
study will be used as a baseline and serve as a reference for those who want to conduct further
investigation in this area.

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1.7. Scope of the study
The study is delimited conceptually, geographically as well as methodologically. Conceptually;
the level of employees’ job satisfaction and the significant factors affecting employee’s job satisfaction
and concepts on employee job satisfaction theories is assessed in this study. The study is not addressing
all factors of employee job satisfaction. Only certain specific factors are covered in this study.
Geographically, the study is confined to selected public and private banks from the 18 private and two
public owned banks in Dire Dawa Administration.
1.8. Limitation of the Study
Failure to address all factors that affect employees’ job satisfaction is the major limitation of this
study. The study also covers only some selected public and private banks in Dire Dawa
Administration because of lack of adequate time and logistic. It also impeded the possibility of
ensuring quality of data and timely completion of the study.

1.9 Operational definition and Terms

1.10. Organization of the study
This study is organized in to six major chapters. The first chapter deals with the introduction of
the study, while the second chapter focuses on the review of the related literature. Chapter three
deals with the research approaches followed to conduct the study and discuss research design and
methodology in detail. The fourth chapter presents results of the data collected, discussion and
interpretations of the results vis-à-vis previous studies. Chapter five present the summaries,
major findings, conclusions, and recommendations.

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 CHAPTER TWO
REVIEW OF RELATED LITERATURE
In this section, basic concepts of the variables will be discussed thoroughly. In the conceptual
framework, the concepts of the variables under study are discussed. Theoretical foundations of
the study also discussed in the theoretical framework section. In addition factors that affect
employees job satisfaction in banking.
2.1 Conceptual Discussion of Job Satisfaction
Different scholars have defined job satisfaction differently. According to the research done in the
19ththere are plethora definitions of job satisfaction. The concept of “job satisfaction” remains as
one of the densely studied area of business studies; As to Moorman et al. (1993) there are three
practical points of view that illustrate the meaning of job satisfaction: First, is a valuable product
of the society; second, is an early warning indicator at an early stage for an organization and
third, can serve as a predictor of organizational behavior. Job satisfaction is simply how people
feel about their jobs and different aspects of their jobs. It is the extent to which people like
(satisfaction) or dislike (dissatisfaction) their jobs (Spector, 1997). It is defined as positive
feelings about one’s job based on one’s evaluation of the characteristics of the job (Robbins &
Judge, 2007) It can be also be defined as a positive emotional state that results from the
evaluation of the experiences given by the job (Locke, 1976) in Mohammed (2018) or as a set of
feelings and beliefs that a person has about his job (George & Jones, 1999).
Citing Tnay et al. (2013) defined job satisfaction as a pleasurable or positive emotional state
resulting from the appraisal of one’s job or job experience. It is a result of employee’s perception
of how well their job provides those things that are viewed as important. Regarding Yucel and
Bektas (2012) job satisfaction defined as a state of mind encompassing all those feelings
determined by the extent to which the individual perceives his/her job-related needs to be met.
Malik et al. (2014) defined job satisfaction as the relative strength of an individual’s
identification with and involvement in a particular organization.
Job satisfaction represents a combination of positive or negative feelings that workers have
towards their work. Meanwhile, when a worker employed in a business organization, brings with
it the needs, desires and experiences which determinates expectations that he has dismissed. Job
satisfaction represents the extent to which expectations are and match the real awards. Job
satisfaction is closely linked to that individual's behavior in the work place (Aziri, 2011).

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Job satisfaction is a worker’s sense of achievement and success on the job. It is generally
perceived to be directly linked to productivity as well as to personal well-being. Job satisfaction
implies doing a job one enjoys, doing it well and being rewarded for one’s efforts. Job
satisfaction further implies enthusiasm and happiness with one’s work. Job satisfaction is the key
ingredient that leads to recognition, income, promotion, and the achievement of other goals that
lead to a feeling of fulfillment (Aziri, 2011).

Similarly, other scholars (e.g. Hassan et al., 2011; Chahal et al., 2013) have defined job
satisfaction as the degree to which employees have a positive affective orientation towards
employment by the organization. On the other hand, Azeem (2010) defines job satisfaction as an
affective (emotional) reaction to a job that results from the incumbent’s comparison of actual
outcomes with those that are desired.
2.2 Determinants of Employee Job Satisfaction
According to Locke, (1976) mostly, the factors affecting the said concept were frequently
questioned estimated that, as of 1976, about 3,350 articles or dissertations had been written on
the topic. Cranny et al. (1992) indicated that more than 5,000 studies of job satisfaction have
been published. In a more recent estimate, Oshagbemi (1996) suggested that, if a full count of
relevant articles and dissertations were made, Locke’s estimate, which was made only 20 years
earlier, would have been doubled. As a result of many decades of research effort, there appears
to be a high level of agreement among scholars on the mentioned meaning of job satisfaction.
Typically, job satisfaction is conceptualized as a general attitude toward an object, the job.
Locke, (1976) defined job satisfaction as “a pleasurable or positive emotional state, resulting
from the appraisal of one’s job experiences”. There are, of course, a few but largely unimportant
differences to general conceptualization (Locke, (1976) cited by Mohammad, 2018:21-18).
Moreover, many of studies(Chen, Chang, & Yeh, 2004; Dawal and Taha, 2004; Judge and Ilies,
2004; Cohrs, Abele, & Dette, 2006; Ayub and Rafif, 2011; Monday, 2016) have
shownemployee’s job satisfaction can be influenced by a wide variety of factors such as
competitive pay, adequate staffing, a pleasant working environment, opportunities for personal
and professional growth, a reasonable workload, supervision, recognition, positive relationships
with co-workers, autonomy on the job, job security, career advancement and contingent rewards.
On the other hand,citing Sageer et al as in the work of Monday (2016) Mekdas,(2018)identified

9
the determinants of employee’s satisfaction of two types; determinants related to organization
and determinants related to external environment, called demographic based factors;
2.2.1. Determinants related to organization
a. Organizational Development

Organizational development is an ongoing, methodical process to implement effective change in

an organization. Its objective is to enable the organization adopt better and fast-changing external
environment of new markets, regulations, and technologies. It starts with a cautious strategic
analysis of the present position and future requirements. In other words, Organizational
development is the process through which an organization develops the internal capacity to most
efficiently and effectively provide its mission work and to sustain itself over the long term. This
definition highlights the explicit relationship between organizational development work and the
achievement of organizational mission.
b. Policies of Compensation and Benefit

This is one of the most essential variables for employee satisfaction. Compensation can be
described as the quantity of reward that workers anticipate from the job. Employees should be
satisfied with competitive salary packages and they should be satisfied with it when comparing
their pay packets with those of the outsiders who are working in the same industry. A feeling of
satisfaction is felt by attaining reasonable and equitable rewards. This study recognizes the
following points under this group: (i) Wage and salary. (ii) Reward and penalties.
c. Promotion and Career Development
Promotion can be reciprocated as a significant achievement in the life. It promises and delivers
more pay, responsibility, authority, independence and status. So, the opportunity for promotion
determines the degree of satisfaction to the employee. Policies and practices concerning the
movement of employees, particularly upward movement, once they are in the organization might
also affect their commitment. Employees job satisfaction is greater among employees who had
been promoted and that it was also positively related to employees’ perceptions that the company
had a policy of promoting from within. Such a policy might be perceived by employees as
evidence of organizational support, which in turn instills a greater commitment to the
organization. In this study, a positive relationship between promotion opportunities and
employee’ satisfaction was envisaged.

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 d. Job Security
Job security is an employee's assurance or confidence that they will keep their current job.
Employees with a high level of job security have a low probability of losing their job in the near
future. Certain professions or employment prospect inherently have better job security than
others; job security is also affected by a worker's performance, success of the business and the
current economic environment.
e. Working Environment & Condition
Employees are highly motivated with good working conditions as they provide a feeling of
safety, comfort and motivation. On contrary, poor working condition brings out a fear of bad
health in employees. The more comfortable the working environment is more productive will be
the employees. Good working conditions such as clean, attractive surroundings enable
employees to perform their work smoothly and thus are likely to have a positive impact on
organizational commitment. Research results indicate that the general working conditions were
significantly related to organizational commitment. Keeping in view these findings, it was
expected that in this study there would be a positive relationship between commitment and
general working conditions.
f. Relationship with Supervisor
A good working relationship with your supervisor is essential since, at every stage, you need his
or her professional input, constructive criticism, and general understanding. This includes (i)
Relationship with immediate supervisor (ii) Communication between employees and superior
(iii) Management (iv) Treatment to employee. Satisfaction with supervision is also likely to be
an important predictor of organizational commitment. Because supervisors create much of a
subordinate’s work environment, they might be described as representing the organization to the
subordinates. Thus, supervisors play a crucial role in the perceptions employee form about the
organization’s supportiveness and the extent to which they can be trusted to look after their
interests.
g. Work Group
There is a natural desire of human beings to interact with others and so existence of group in
organization is a common observable fact. This characteristic result in formation of work group
at the work place. Isolated workers dislike their job. The work groups make use of a remarkable
influence on the satisfaction of employees.

11
 h. Leadership Styles
The satisfaction level on the job can be determined by the leadership style. Employee satisfaction
is greatly enhanced by democratic style of leadership. It is because democratic leaders promote
friendship, respect and warmth relationship among the employees. On contrary, employees
working under authoritarian and dictatorial leaders express low level of employee satisfaction.
i. Fringe benefits
According to Herzberg, fringe benefits are seen as hygiene or maintenance factors that influence
job satisfaction. Fringe benefits, such as housing and transport allowances, pension, sick pay,
holidays, health insurance, compensation for after-hours’ work, and employer-provided training,
which are the concern of the present study, can have an impact on job satisfaction in several
ways. These benefits are considered an important component of worker compensation (Aziri,
2011 cited by Mekdes,2018 ).
Both employees and employers choose fringe benefits as substitutes for salaries. Fringe benefits,
such as housing allowances, are free from taxation, and are also cheaper to get from the
employer body than on the market. Fringe benefits have the potential to increase the job
satisfaction of employees, such as teachers. Employers choose these benefits as a means to
decrease turnover rates, and to retain quality employees. Employees, on the other hand, choose
benefits over salaries because they are free from taxation. Thus, the less-taxed fringe benefits can
be substituted for salaries, and have the potential to increase the job satisfaction of workers, such
as teachers (Aziri, 2011).

j. Administrative support
According to Herzberg, administrative support is viewed as a hygiene or extrinsic factor that
could influence employees’ job satisfaction. Administrative support is considered to be one of
the working conditions which could have a profound effect on the job satisfaction of teachers. In
previous studies demonstrated that administrative support was the most significant and a strong
predictor of the teachers’ job satisfaction, more so than other variables. They also found that
administrative support had much power, directly and indirectly (through job satisfaction), to
predict the employees’ intent to stay in the profession.

12
2.3. Determinants related to non-organization
2.3.1. Demographic factors of job satisfaction
Age, gender, work experiences are variables found in the literatures as the demographic variables
commonly considered in studies of job satisfaction (Scott,Swortzel, and Taylor, 2005).
According to the literature, the relationship between gender and job satisfaction is inconsistent.
Some studies report that women are more satisfied (Burke et al., 2005; Naceur & Fook, 2001;
Paul and Phua, 2011). Others stated that female employees demonstrate higher levels of job
satisfaction than male employees across most work. Many studies involving several different
populations support this argument (Yazici and Altun, 2013; Burke et al., 2005).
One common explanation for the different level of work satisfaction sometimes reported for men
and women is that women have different expectations with regard to work (Oshagbemi, 2000). It
was revealed that careers were of central importance to men but not as important to women.
Research has suggested that men and women may use qualitatively different criteria in their
assessment of work. From this perspective, job satisfaction is seen to be an emotional response
resulting from the interaction of work rewards and work values. Their research suggested that
women placed more value on the social factors of a job than did men, and that men valued the
opportunity for self-expression in their work more than did women.
According to the literature, researches’ findings are not consistent regarding the influence of age
on job satisfaction. Some researchers have found that age have an influence on job satisfaction.
Older employees tend to experience higher levels of job satisfaction. Older employees were more
likely to report higher levels of job satisfaction than younger employees. Older workers are more
comfortable and tolerant of authority and may learn to lower their expectations for their jobs
(Menon and Athnasoula-reppa, 2011; Metle, 2001). Other studies found that age has a non-linear
association (no impact) on job satisfaction. In other words, older workers are more satisfied than
younger ones. Literature further reveals that older workers tend to be happier with their jobs,
have lower turnover rates, and miss fewer working days (Burke et al., 2005; Naceur & Fook,
2001; Paul and Phua, 2011; Menon and Athnasoula-reppa, 2011; Metle, 2001).

2.4. Theoretical Framework

As far theories of job satisfactionconcern for a century research works conducted on job
satisfaction.The theoretical basis of this study is commonly known as a rule of

13
thumb(Mohamed,2018). The most frequent theories that referred to this construct is; need
hierarchy theory, the two-factor theory, expectancy, reinforcement, achievement and personality
theories. These theories explained job satisfaction based on the philosophical assumption of the
founder of each theory. Regardless of the practical importance or since they are basics of
motivation, some of the theories, summarized below in line of job satisfaction.
a. The Two Factor Theory
Herzberg’s two factor theory of job satisfaction will serve as the basis for this study. The theory
referred as two factor theory, a designation that has its rationale in the dual nature of its approach
to the source of job satisfaction (Miner, 2005 and Stroh, Northcraft, and Neale, 2002).
Herzberg’s Motivation-Hygiene Theory has been commonly used in many recent studies
(August & Waltman, 2004; Castillo & Cano, 2004; Corley & Sabharwal, 2007; Grunwald &
Peterson, 2003). According to Herzberg, motivation and hygiene are the two important issues
that affect and an employee’s job satisfaction. The theory states that six intrinsic factors
(motivations) include achievement, recognition, work itself, advancement, responsibility, and
salary. Extrinsic factors (hygiene) include salary, supervision, company policy, working
conditions.Herzberg’s Motivation-Hygiene Theory pertains to the relationship between job
satisfaction and job dissatisfaction as affected by motivators and/or hygiene factors. Miner
(2005) states that motivation factors can either create high levels of job satisfaction, although the
lack of these factors does not guarantee job dissatisfaction (Miner, 2005).

According to Herzberg as cited in Stroh et al. (2002), dissatisfaction results when the work
setting does not fulfill the worker's basic needs, or hygiene factors. For example, a worker who is
worried about safety on the job cannot devote attention to the task at hand and therefore cannot
do a good job. However, fulfillment of these needs does not satisfy workers, but only prevents
dissatisfaction. Satisfaction depends on a second set of factors, which Herzberg labeled
motivators. In addition, hygiene factors can lead to dissatisfaction, but their absence does not
guarantee satisfaction. As such, job satisfaction and job dissatisfaction are independent of each
other. Hertzberg states that the opposite of job satisfaction is not dissatisfaction, but a lack of
satisfaction or no job satisfaction. This would mean that the opposite of dissatisfaction is not
satisfaction, but a lack of dissatisfaction or no job dissatisfaction. However, the fulfillment of
hygiene needs cannot in itself result in job satisfaction, but only in the reduction or elimination
of dissatisfaction.

14
 b. Interpersonal Theory
The degree of satisfaction is different between the standard and what is actually received from a
job. Interpersonal comparison theories compare what a person wants (the standard) with, what
she or he receives. The smaller the difference, the greater the satisfaction will be. These theories
are called interpersonal because the comparisons occur within each individual (Graham, 1982
cited by Mohamed, 2018).
c. Needs Hierarchy Theory
Extensive research has been conducted in the area of work motivation and satisfaction and many
psychologists have attempted to explain it in terms of certain needs, interests, and values. One
theory that has explored these factors is Maslow’s hierarchy of needs. According to Maslow, the
individual personality is dynamic and continuously strives to satisfy a hierarchy of needs with an
inherent tendency towards self-actualization (Joubert, 2000 as cited by Luddy, 2005:24).
Though the late Abraham Maslow did not design his wellknown hierarchy of needs for use in the
satisfaction of people at work, it has been widely accepted as an important contribution field.
The need hierarchy recognizes five different levels of needs, progressing from the most basic
physiological needs to the more refined psychological need of self-actualization. Basic to the
application of the need hierarchy is the assumption that the lower level needs must be met before
the higher level of need can be satisfied.
d. Equity theory
Equity theory, as reviewed by Walster, Berscheid & Walster (1973) shows how a person
perceives fairness in regard to social relationships. The theory presupposes that during a social
exchange, a person identifies the amount of input gained from a relationship compared to the
output, as well as how much effort another person‟s puts forth. Based on Adam (1965) theory,
Huseman, Hatfield & Miles (1987) further suggest that if an employee thinks there is an inequity
between two social groups or individuals, the employee is likely to be distressed or dissatisfied
because the input and the output are not equal.
2.5. Empirical study on factors for job satisfaction
Factors that affect job satisfaction are different in nature. It can be individual which can be
resulted from thedemographic and personality of an individual or job and environment-related
factors. The magnitude and seriousness of each factor vary from context to context in affecting
job satisfaction of workers. Since the main interest of this study is assessing job satisfaction of

15
private and public workers, the focus of the literature will be dominantly focused on the job and
environment related factors among the two groups. Although it seems there are abundant of
resource which conducted on job satisfaction, many of the literature revolve around dimensions
and individual factors of job satisfaction or focused on separate cases of private and public
organizations. Which means there are few number of comparative research findings which can
be evidenced the nature of job satisfaction among such public and private organizations.
2.5.1. Empirical study related to local work
Mehari Haile and Dr. Peteti Premanandam,2017; done study on job satisfaction factors toward
private and public employed workers and job satisfaction differences between the two
organizations in Woldia district. In the study 135 public and 189 private organization workers
were participated. As the findings of the study indicated, statistically significant mean difference
observed between private and public workers job satisfaction of communication and relationship,
job security, pay and promotion and fairness.
The other is Mulugeta and Ayele in (2015) [17] conducted a study which explicitly focused on
public health professionals toward their job satisfaction in west Shoa, Oromia. The finding
revealed that Overall, only 34.9% of the study participants were satisfied with their job, while
nearly a third, 65.1% were dissatisfied with their job. The findings revealed that variables such as
management style, salary, working environment, training opportunity, performance evaluation
and participation in decision making have a significant influence on the level of job satisfaction.
In the same vein Alemshet and et al (2011) cited in Mehari and prenanadam,2018 witnessed that
among the total of 145 health professionals who worked in Jimma university specialized
hospital, which is public, 46.2% of the health workers are dissatisfied with their job.The major
reasons reported for their dissatisfaction were a lack of motivation, inadequate salary,
insufficient training opportunities.
As the previously reviewed literature indicated that, there are numerous factors that can affect
job satisfaction irrespective of their magnitude. In order to see how much these factors are
important and higher in priority in the rank, one can see the research report of Society for Human
Resource Management on job satisfaction in 2012 and the research work of Kabir and Parvin,
(2011) focused on employee job satisfaction. As the Society for Human Resource Management
(SHRM) report indicated, among the twenty job satisfaction factors, the top five factors are
Opportunities to use skills and abilities (63%), Job security (60%), Compensation/pay (61%),

16
Communication between employees and senior management (57%), and Relationship with
immediate supervisor (54%). Similarly, the finding of Kabir and Parvin (2011) concluded that
the top fivefactors that lead to job satisfaction are; working condition (62%), pay and promotion
(60.4%), fairness (60.4%), job security (61%), and relation with co-workers (66%).
Therefore, it’s evidenced that job security, pay, communication, fairness, and relationship are
dominantly important job satisfaction factors. A research finding which can be an explicit
evidence for this work’s purpose, i.e., a difference of job satisfaction among private and public
workers is, the work of (Mehari and premanandam,2017)which is conducted among Ethiopian
private and public bank workers job satisfaction through some key factors like Salary; Promotion
and Training. Accordingly, they came up with the following findings. Job satisfaction of public
sector bank employees was(1)significantly higher than the private sector bank employees; (2)
Satisfaction regarding salary, compensation & benefits was significantly higher among the
private sector bank employees than the public sector bank employees; (3) Satisfaction regarding
Promotion was significantly higher among the private sector bank employees than the public
sector bank employees; (4) Major causes of dissatisfaction as perceived by the respondents were
poor salary, lack of promotional prospects, poor job status and absence of recognition for good
work. (5) Private sector bank employees were dissatisfied with job security as compared to
public sector bank employees. On the other hand, public sector bank employees were suffering
from poor working conditions and absence of incentive bonus (Mehari and premnanadam,2017).
2.6. Conceptual Model
However, based on a synthesis of the converging literature related to the research constructs, and
beside the above determinates, a conceptual model will be proposed this study asto guide the
empirical study shown in the following figure. The conceptual framework depicts the key
concepts used in the study and how they are linked to one another to produce the final result.

17
 Figure 1: Conceptual Framework

Independent Variable Dependent Variable

payment and Benefit (PB),

Supervisory
relationship(SR)

Relationship with Co-

Worker (RCW),
Employees` Job
Working Condition Satisfaction
/Environment (WC),

Recognition (RG)

Training and Development

(TD

Source; Researcher own understanding of literature

18
 CHAPTER THREE
3. RESEARCH METHODOLOGY
3.1 Introduction
This chapter deals with the research methodology that was chosen for the study with the aim of
achieving the research objectives. It contains description of the study area, research design,
research approach, sampling design, source of data, data collection methods, data analysis
techniques, validity and reliability, and ethical consideration.

3.2 Research Design

The research design identifies the method of data gathering, which instruments are used, how
they are dealt with and how the gathered information is arranged and analyzed. The purpose of
this study is to examine factors affecting employees’ job satisfaction in commercial banks in
Dire Dawa.

The researcher was used both descriptive and explanatory research design. The descriptive
research design is selected for this study because it enables the researcher to describe the state of
dealings as it exists at present. Moreover descriptive research design help the researcher study
things in their natural setting and attempt to make sense things under the study from their natural
point of view (Taylor, 1994). The data obtained in the descriptive study have the characteristics
of indicating the reality of the problem it looks in the context of a real life. Creswell (2012)
stated that descriptive approach is designed to obtain the current phenomenon and whenever
possible to draw varied conclusions from the facts discussed. It also describes characteristics of
the population of interest, estimates proportions in the population, makes specific predictions,
and tests associated relationships (Orodho, 2005). Thus, descriptive approach is appropriate for
this study since it aimed at investigating possible relationships among two or more variables and
collecting data to test hypothesis.

For the purpose of data analysis, testing the hypothesis, and answering research questions, both
primary and secondary data sources were used. These data was obtained from the employees of
the organization under the study. To understand the extent that the independent variables affect
the prediction of dependent variable, correlation and multiple regression analysis models was
used.

19
3.3 Research Approach
The research followed sequential transformative mixed research methods. This method uses both
quantitative and qualitative data collection method and integrates results gained from both
methods in the analysis phase (Creswell, 2003). The researcher collected quantitative data from
sample of employees and qualitative data from selected employees and managers. Therefore, this
method was the year best way to conduct the research and for better understanding of the
problem under study.

Hence, all these factors contribute towards the employees’ job satisfaction and are measured
independently and for the sake of simplicity in this study the following variables will use
independent; they are payment and Benefit (PB), Supervisory relationship (SR), Relationship
with Co-Worker (RCW), Working Condition /Environment (WC), Recognition (RG), Training
and Development (TD) and Perceived Equity/Fairness (PE)
3.4 Types and Sources Data
The study employs both primary and secondary data sources. Primary data was generate from
selected employees and managers of commercial bank of Ethiopia and all private banks at Dire
Dawa using structured questionnaires and interview respectively. The secondary data was about
reviewing of relevant related literature; journals and articles, reports of respective banks and
other different electronic search engine such as the internet, and other published materials about
the research topic
2.5 Population

The study population in this research was consist of a total of 1,128 permanent professional
employees of private and public banks in Dire Dawa City; specifically, the management staffs
from different hierarchies are 99 and the non-managerial employees amounted 1029.
3.6 Sample design and Sampling Technique
The researcher was used the probabilistic sampling technique because there are chances of being
selected and included equally for the sample. Stratified sampling is useful where there is a priori
information relating to the heterogeneity of the target population from one group to another
(Spanos, 2003). In this case, there are three groups of target population which are:-General
Mangers and non managers from different bank was selected through Stratified sampling for
different bank, proportional probability for determining each sample size and simple random

20
sampling each respondent from non managers and census survey for all existing managers was
used due to their manageable size of (99) and assume convenient to cover all of them.
To determine the sample size of the study with regard to managers and non-managerial staffs ,
the research applies a simplified formula provided by Yamane (1967) to determine the
minimum required sample size at 95% confidence level, degree of variability=0.5 and level of
precision (e) = 5%.

Where n is sample size, N is the total number of study population, 1029

Where e is the level of precision
Therefore , n = 1029 = 288
1+1029 (0.05) 2

The total sample size for this study was 387. This study use proportionate stratified random
sampling technique to determine the sample size for each stratum. Moreover, each respondent
from each stratum selected randomly.

Table 3.1. Population, Sample Size and Sampling Techniques for Selecting Employees

NO Branch Name Non Managerial Managerial Sample

Staffs Staffs Size(ni= Ni/N
1 Commercial Bank of Ethiopia 538 35 151
2 Awash Bank 117 10 33
3 Cooperative Bank of Oromiya 87 9 24
4 Dashen Bank 81 12 23
5 Wegagen Bank 51 5 14
6 Bank of Abyssinia 25 7 7
7 Nib Bank 20 3 6
8 Oromiya International Bank 18 3 5
9 United Bank 19 2 6
10 Anbesa Bank 12 2 3
21
 11 Buna Bank 12 2 3
12 Enat Bank 12 2 3
13 Birhan Bank 11 2 3
14 Abay Bank 9 2 3
15 Zemen Bank 7 1 2
16 Addis International Bank 5 1 1
17 Debub Global Bank 5 1 1
TOTAL 1,029 99 288

3.7 Data Collection Methods

The tool used to data collection is standard questionnaire prepared by the society of human
resource management (SHRM) survey program, 2007. This was prepared in the form of likert
five scales to measure employee job satisfaction.
The data collection instrument contains two parts: where the first part of questions will be about
demographic/personal characteristic of employees. It includes Age, Gender, education level,
work experience and position. The second part questions will focus on organizational
determinants of employees‟ job satisfaction, indicates the extent of their satisfaction or
dissatisfaction level using the five point likert-type scales. This section includes the independent
variables (i.e. payment and Benefit (PB), Supervisory relationship (SR), Relationship with Co-
Worker (RCW), Working Condition /Environment (WC), Recognition (RG), Training and
Development (TD) and Perceived Equity/Fairness (PE) which are also indicated in the above
mentioned discussion of research design. .
3.8 Procedures of Data Collection
The aim of the pilot study will be to test the reliability of the questionnaires. According to Fisher
(2012), a pilot test is necessary for testing the reliability of data collection instruments. Cox
(2012), explains reliability of research as determining whether the research truly measures that
which it is intended to measure or how truthful the research results was. Pilot study will be
conducted to detect weakness in design and instrumentation and to provide proxy data for
selection of a sample. The researcher will selected a pilot group of 5% individuals from the
target population which will managers and non managers to test the reliability of the research
22
instrument. The pilot data did not include the actual study. The pilot study allowed for pre-
testing of the research instrument. The clarity of the research instruments to the respondents will
be established so as to enhance the instrument’s validity and reliability. The pilot study enabled
the researcher to be familiar with research and its administration procedure as well as identifying
items that required modification. The results helped the researcher to correct inconsistencies that
will be seen to arise from the instruments, which ensured they measured what was intended.
The major method of data collection is questionnaire survey and as it is large amount of data it
is done exhaustively. The Questionnaires is distributed situational, for managers and non
managers in hard copy survey questionnaire delivery and collection is done through from
commercial bank employees. The questionnaires’’ is prepared in clear language.
The interviewer explained to the respondents the intentions of the research study before
administering the same and also visited them at their premises to ensure success of the study.
3.9 Methods of Data Analysis
In this study, before processing the responses, data preparation will be carried out on the
completed questionnaires through editing, coding, transcribing (entering), and cleaning the data.
Descriptive analysis using measures of central tendency will be used such as; mean median and
mode, as well as measures of variability such as the standard deviation and variance to determine
the proportions and frequency of the variables. Correlation and regression models as well as chi-
square test will also be used to establish the relationship and strength between the dependent and
independent variables before settling on the most appropriate of these methods. Data analysis
will employ using techniques of; Statistical Package for Social Scientist (SPSS).The qualitative
data obtained from key informants will analyze through multiple responses methods.
Accordingly the Five-point Likert scale and Chi-square test of model specificationwill be as
follow: The data obtained from five-point Likert scale will calculate and analyze before giving
degree of job satisfaction. The five-point rating will score. Hence, to BoontharikaBanjongjit
(2010), the five-point scale was calculated and interpreted into the degree employee job
satisfaction using the following formula. Interval = the highest Score - The lowest Score divide
by Number of Interval (5) i.e (5 - 1)4= 0.8. The average score (mean) obtained from each item
was interpreted into degree of motivation as follows:
 Average Score = 1.00 – 1.80.Very low degree of motivation.
 Average Score = 1.81 – 2.60.Low degree of motivation

23
  Average Score = 2.61 – 3.40 Moderate degree of motivation.
 Average Score = 3.41 – 4.20.High degree of motivation
 Average Score = 4.21 – 5.00 Very high level of motivation
The Chi-square test of model specification

Moreover, the Chi-square test of association is used to test whether there is significant
relationship/association between two categorical variables or not.

The Model can be expressed as:

X 2 =∑ ∑¿ ¿ ¿

Where:

O=observed count

E= expected count

3.10 Specification and Description of Study Variables

In binary logistic regression, odds ratio is the exponential of the estimated coefficient ^β ,

exp( ^β). For continuous covariate, exp( ^β) is the predicted change in odds of contraceptive use
for a unit increase in explanatory variable. For categorical independent variable, exp( ^β) is the
predicted change in odds of contraceptive use for a given category of the predictor variable with
respect to the reference category.

eX βi
exp ⁡( β 0+ β1 x11 + β 2 x 12+…+ β p x 1 p)
Pi=P ( y i=1|x i ) = X β
= , i=1 ,2 , … . ,n
1+e i
1+ exp ⁡( β 0 + β 1 x 11 + β 2 x 12+ …+ β p x 1 p )

where, P ( y i=1|x i ) is the probability of i th employee who on job satisfaction given factor

affecting job satisfaction x i, and βϵ R p , β= ( β 0 , β 1 , … , β p )T is a vector of unknown logistic

regression coefficients with dimension of ( p+1) x 1.

Then, the logit or the log-odds of having y=1 is modeled as a linear function of the explanatory
variable as:

24
log ( 1−pp )=g ( x )=β + β x + β x + …+ β x ; 0 ≤ p ≤1
0 1 1 2 2 p p (3.7)

Where, β 0is a constant of the equation and ( β 1, β 2,…, β p) are coefficients of independent
variables (are payment and Benefit (PB), Supervisory relationship (SR), Relationship with Co-
Worker (RCW), Working Condition /Environment (WC), Recognition (RG), Training and
Development (TD) and Perceived Equity/Fairness (PE)) and e represents error term). The logit
is the linear part of the logistic regression model and, as such, is most similar to the fitted line
in a linear regression model.
3.11. Reliability and Validity
3.11.1 Reliability
Reliability refers to the consistency, stability, and repeatability of a data collection instrument. A
reliability instrument does not respond to chance factors or environmental conditions; it was
have consistent results if repeated overtime or if used by two different investigators. Reliability
demonstrates that the operations of a study such as the data collection procedures can be
repeated, with the same results, (Yin 1994). In order to ensure reliability, statistics analysis was
implemented to examine the internal consistency of the instruments utilized. Cronbach‟s was
used as an examination indicator to determine the reliability of the measurement scale of the
pilot test developed by Lee Cronbach in (1951) cited by Yin 1994). The value of Cronbach‟s α is
generally required to be over 0.7 and the calculated results were over 0.7. It was observed that
the reliability of all the variables was 0.922 which is greater than 0.7.
3.11.2 Validity
Validity is concerned with the degree to which the designed questionnaire items fairly and
accurately represented the main variables (dependent and independent) discussed in literature
review. The validity of the instruments will use in the study estimate after a pretest. Experts in
the field were consulting about the content of the instruments, ambiguity of question items and
their relevancy. There after the instruments were given to raters who rated the relevance of each
item and a content validity index will compute. Lastly but not least the ethical consideration was
taken in to account through every attempt made in this study

25
3.12. Ethical consideration
Leedy & Ormrod (2010) identified four main ethical issues that need to be addressed in the
process of undertaking a research. These are: protection from harm, informed consent, right to
privacy, and honesty with professional colleagues. Accordingly, the researcher:
 Tries to not to expose participants from any physical or psychological harm
 requests their consent and could participate only on a voluntary basis
 Respects the participants right to privacy
 Reports the findings in a complete and honest fashion.

26
 CHAPTER FOUR

RESULTS AND DISCUSSION

The data obtained from questionnaire and Relevant document review have been processed and
analyzed in accordance with the purpose of the research. Technically speaking, processing
implies cleaning, editing, coding, classification and tabulation of collected data so that they are
amenable to analysis. Hence, on the basis of the objectives of the research, the result and
discussion procedure include both descriptive and inferential/econometrics analysis.

There were a total 383(92.3%) of the total respondents filled and returned the questionnaire i.e.
98 managerial285 employees participated in this study from public and private commercial
banks at Dire Dawa Administration. so, the response rate is adequate enough to undertake in
depth analysis.
4.1. Reliability Test
The consistency of the variables was checked with the Cronbach’s alpha statistics albeit the
questionnaire was adopted from scholars who have undergone through study on related issues.
Cronbach’s alpha is an index of reliability associated with the variation accounted for by the true
score of the “underlying construct” (Nunnaly, 1978). Cronbach’s Alpha’s can only be measured
for variables which have more than one measurement question.

McKinley, Manku-Scott, Hastings, French, and Baker (1997) state that for comparing groups,
Cronbach’s alpha values of 0.7 to 0.8 are regarded as satisfactory, though lower thresholds are
sometimes used in literature. Nunnaly (1978) has stated that 0.5 is a sufficient value, while 0.7 is
a more reasonable Cronbach’s alpha.

Table 4.1: Cronbach’s alpha values of study variables

Scale No. of items Cronbach alpha Coefficient

Pay and Benefit 6 0.83

Working Condition 4 0.81

Recognition 4 0.84

27
 Supervisory Relationship 5 0.86

Promotion 4 0.79

Training and Development 4 0.78

Relationship with Co-worker 6 0.82

Equity/Fairness 4 0.76

Job Enrichment 4 0.77

Goal Setting 4 0.75

Source (own survey, 2021)

As shown in the above table the Cronbach’s alpha values of the study variables ranges from 0.75
α to 0.86α; this shows reliable data used preceded the next steps.
4.2. Descriptive analysis
4.2.1. Demographic characteristics of Respondents

In this study the demographic characteristics included: age, gender, work experience, and
monthly income.

The age distribution of the respondents revealed that the majority (50.4%) respondents were
between 21 to 30 age category and 39.9%, 9.1%, 0.5% were from 31 to 40, 41 to 50 and above
50 age groups respectively. this indicates both private and public owned commercial banks in
DDA are composed of young population. moreover, the Chi-square test (X2=10.985) showed
there is a significant (P=0.012, P<0.05)) age distribution difference between private and public
commercial banks in the study area.

As shown in Table 4.1 the greater majority (72.8%) of respondents was male and the remaining
27.2 % was female. this implied commercial banks are dominated by male bankers; and even
28
from this 27.2 % female respondents 17.2% were from private banks. Furthermore, the Chi-
square test (X2=8.265) showed there is a significant (P=0.04, P<0.05)) gender distribution
difference between private and public commercial banks in the study area.

Regarding the overall experience of the respondents, 150 (39.1%) were between 6 to 10 years,
114 (29.7%) were between 1 – 5 years of experience, 80 (20.8%) were between 11 to 15 years of
experience, 28 (7.3%) were more than 15 years of experience and the remaining 12 (3.1 %) were
with the least experience observed below one year. these entail the majority 264(68.8%)
respondents in public and private banks had 1 to 10 years of banking experience.

The descriptive statistics results of demographic characteristics of the respondents from public
and private banks at DDA are summarized in table 4.2.

Table 4.2: Demographic profile of respondents

Description Type of Bank

Total X2 P-value
public private

Age 21-30 Frequency 102 91 193

Percentage 26.6% 23.8% 50.4%

31-40 Frequency 72 81 153

Percentage 18.8% 21.1% 39.9% 10.985 0.012

41-50 Frequency 9 26 35

Percentage 2.3% 6.8% 9.1%

>50 Frequency 2 0 2

Percentage 0.5% 0.0% 0.5%

Frequency 185 198 383

29
Total Percentage 48.3% 51.7% 100.0%

Gender Male Frequency 148 131 279

Percentage 38.6% 34.2% 72.8%

8.265 0.04
Female Frequency 38 66 104

Percentage 9.9% 17.2% 27.2%

Total Frequency 186 197 383

Percentage 48.6% 51.4% 100.0%

Percentage 48.7% 51.3% 100.0%

Work Percentage 4 8 12 35.366 0.00

experience <1yr
Frequency 1.0% 2.1% 3.1%

Percentage 66 48 114
1-5yrs
Frequency 17.2% 12.5% 29.7%

Percentage 84 66 150
6-
10yrs
Frequency 21.9% 17.2% 39.1%

Percentage 16 64 80
11-
15yrs
Frequency 4.2% 16.7% 20.8%

Percentage 16 12 28
>15yrs
Frequency 4.2% 3.1% 7.3%

Percentage 186 198 384

30
 Total Frequency 48.4% 51.6% 100.0%

Source: (own survey, 2021)

As clearly shown in table 4.3 the mean monthly salary of managerial employees were birr
27,417.37 with std. deviation of 10469.7 and birr 27023.53 with the std. deviation of 5643.57 for
public and private banks respectively. However, as t-statistics (0.225, p=0.822 >0.05) revealed
there is no statistically significant monthly salary difference between public and private
commercial banks managerial employees.

Looking at the non-managerial employees the mean monthly salary of public and private
commercial bank employees were birr 12,664.09 with the std. deviation of 4459.28 andbirr
11,288.09 with std. deviation of 3,435.89. Furthermore, the t-statistics (2.656, p=0.008 < 0.05)
revealed there is statistically significant monthly salary difference between public and private
commercial banks non-managerial employees

Table 4.3: Income distribution of managerial and non managerial employees

Description Income distribution

Employment Type of Bank Mean Std. T-value P-value

category Deviation

Public 27417.37 10469.70

Managerial
Private
27023.53 5643.57
0.225 0.822

Non- Public 12664.09 4459.28

Managerial
2.656 0.008
Private 11288.09 3435.89

Source: (own survey, 2021)

31
4.2.2. Perceived employees’ job satisfaction in Commercial banks
In this section bankers were requested to rate their job satisfaction through a five Likert scale
questionnaire where 1= very low job satisfaction, 2= low job satisfaction, 3=Average job
satisfaction, 4= high job satisfaction, and 5= very high job satisfaction. As a result, as table 4.3
and figure 4.1 clearly stipulated, 187 (49.6%) showed average job satisfaction, 81 (21.5%) rated
their job satisfaction as high, and the remaining 48 (12.7%), 43 (11.4%), and 18 (4.8%) of
respondents expressed their job satisfaction as low, very high and very low job satisfaction
respectively. so, respondents job satisfaction can be summarized via three ordinal scales i.e.
49.6% rated their job satisfaction as average or moderate, 32.9% described their job satisfaction
as high and the remaining 17.5% revealed their job satisfaction as low. Consequently,
respondents’ job satisfaction highly inclined to average level. The mean (3.22 with the standard
deviation 0.97)) result of the study also assured the aforementioned

The researcher also tried to disaggregate the respondents’ job satisfaction as per their affiliation
i.e. public and private commercial banks (see table 4.5 and figure 4.2). the study revealed that
from 180(47.7%) the total public commercial banks respondents, more than half 93(24.7) of
employees ‘uttered their job satisfaction as average and similarly from 197 (52.3%) of private
commercial banks respondents 94 (24.9%) of rated their job satisfaction at the average level.

Variable Ratin Frequency Percentag Mean Std.

Deviation
g e
Table 4.4: Perceived Job
Very satisfaction of employees in
18 4.8
low commercial banks

low 48 12.7

avera
Perceived 187 49.6
ge
employee job
satisfaction
high 81 21.5
3.22 0.97

very 32
43 11.4
high

Total 383 100.0

Source: (own survey, 2021)
Table 4.5: Perceived Job satisfaction of employees in Private and Public commercial banks

How do you rate the level of your job Total

satisfaction in your respective bank?
Description

Very Low Avera high ver

low ge y
hig
h

Type of Public Frequency 2 14 93 40 31 180

Bank

Percentage 0.5% 3.7% 24.7% 10.6 8.2 47.7%

% %

Private Frequency 16 34 94 41 12 197

Percentage 4.2% 9.0% 24.9% 10.9 3.2 52.3%

% %

Total Frequency 18 48 187 81 43 377

Percentage 4.8% 12.7 49.6% 21.5 11. 100.0%

% % 4%

33
 Source: (own survey, 2021)
4.2.3. Employees’ Job satisfaction and demographic characteristics of respondents
In this section the researcher tried to relate job satisfaction with the various demographical
variables namely type of bank, employment category, gender, age and work experience of
respondents with the help of descriptive statistics tools like mean and std. deviation and
inferential statistics like T-statistics and one way ANOVA. As table 4.6 clearly stipulated the
mean and t-statistics result revealed that the average job satisfaction of employees in public
commercial banks was significantly better than employees in private commercial banks. This is
due to the current human resource policy of pubic commercial banks which gives high attention
to human capital by which pay and benefit, training and development, promotional opportunities,
and recognitions have got prominence in order to boost the competitiveness of employees
(Human resource policy, CBE, 2020). Similarly, the managerial employees showed higher job
satisfaction than non managerial employees. In addition male bankers’ job satisfaction was
significantly better than female bankers among private and public commercial banks in Dire
Dawa Administration.

Moreover, the F-statistics and the mean result revealed that the age category 21 to 30 showed
significantly higher job satisfaction than other age groups. Regarding the work experience, those
who had 6 to 10 years work experience confirmed uppermost job satisfaction than others.

34
Table 4.6: Perceived employees’ job satisfaction and demographic profile of respondents

Description Employee Job satisfaction

Demographic Mean Std. T-value P-value

characteristics Deviation

Public 3.4667 .90560

Type of Bank
Private 2.9949 .97676
4.85 0.00

Employment Managerial 3.5806 .87629

Category
Non- 3.1099 .97220
managerial 4.14 0.00

Male 3.4000 .85008

Gender
Female 2.7426 1.11044
6.09 0.00

Demographic Mean Std. F-value P-value

characteristics Deviation

21-30 3.3684 .98725

Age 3.81 0.01

31-40 3.1133 .93073

41-50 2.8529 .95766

<1yr 3.3333 .88763

Work
1-5yrs 3.0089 .71654

35
 Experience

6-10yrs 3.6443 .98003

11-15yrs 2.8750 .97273 14.84 0.00

>15yrs 2.6667 1.00722

Source: (own survey, 2021)

4.2.4. Comparisons between Public and Private commercial banks employee’s Perceptions
towards independent variables
The researcher attempted to compare public and private bank employees’ perception towards the
independent variables namely pay and benefit, working conditions, recognitions, supervisory
relationships, equity, relationship with co-workers, promotional opportunities, goal setting
behaviors, job enrichment, training and development practices (see table 4.7) . so, as the mean
result disclosed employees in public commercial banks ranked goal setting behavior (m=4.27),
relationship with coworker (m=4.11), supervisor relationship (m=3.99), pay and benefits
(m=3.96), job enrichment (m=3.73), recognitions (m=3.72), promotional opportunities
( m=3.70), equity/fairness (m=3.68), working conditions ( m=3.65) and training and
development (m=3.35) practices from first to tenth respectively where as employees in private
commercial banks ranked goal setting behavior (m=4.17), relationship with coworker (m=4.12),
working conditions (m=3.97), recognitions (m=3.71), supervisory relationships (m=3.7), equity
(m=3.55), promotional opportunities (m=3.53), pay and benefits (m=3.49), job enrichment
(m=3.45) and training and development (T&D, m=3.25) practices. in other words goal setting
behavior and relationship with coworker were rated as the best practices where as training and
development practices were ranked as the least practice in public commercial banks albeit the
practice of T&D wasn’t below the average level as per their ratings. Besides the T-statistics
result revealed that public owned commercial banks practiced pay and benefit, supervisory
relationship, promotional opportunities and job enrichment better than private commercial banks
though the practice of working condition was significantly better in private commercial banks
than its counter parts. However, recognitions, equity, relationship with co-workers, goal setting

36
behaviors, training and development practices weren’t statistically different between public and
private commercial banks.
Table 4.7: Comparisons between Public and Private Bank employees’ perception towards
independent Variables

Type of N Mean Std. Std. Error T-value P-value

Independent Variables
Bank Deviation Mean

Public 186 3.9615 .71323 .05230

Pay and benefits 6.611 .000
Private 198 3.4923 .67765 .04816

Public 185 3.6455 .82425 .06060

Working conditions -4.654 .000
Private 198 3.9785 .55917 .03974

Public 186 3.7151 .68041 .04989

Recognitions .105 .916
Private 198 3.7083 .57095 .04058

Public 185 3.9878 .78010 .05735

Supervisory
3.668 .000
Relationship
Private 198 3.6995 .75794 .05386

Public 165 3.6788 .75345 .05866

Equity 1.647 .100
Private 198 3.5543 .68562 .04872

Public 165 4.1069 .61035 .04752

Relationship with co-worker -.281 .779
Private 198 4.1232 .49878 .03545

Public 185 4.2662 .88833 .06531

Goal setting behavior 1.266 .206
Private 197 4.1701 .57167 .04073

Public 185 3.7036 .81055 .05959

Promotional
2.266 .024
Opportunity
Private 197 3.5317 .66859 .04763

Job enrichment Public 185 3.7383 .81734 .06009 3.588 .000

37
 Private 198 3.4533 .73700 .05238

Public 185 3.3541 1.04728 .07700

Training and Development .975 .330
Private 197 3.2551 .93710 .06677

Source: (own survey, 2021)

T-statistics and the mean result (see table 4.8) indicated managerial employees’ perceived pay
and benefits, working conditions, recognitions, supervisory relationship, equity/fairness, and
relationship with co-worker, goal setting, job enrichment and T&D practices more favorable than
non-managerial employees. However, there was no statistically different perception between
managerial and non-managerial respondents towards promotional opportunities.

Table 4.8: Comparisons between Managerial and Non-Managerial employees’ perception

towards independent Variables

Employee N Mean Std. Std. Error T-value P-value

Independent Variables
category Deviation Mean

Managerial 98 4.0483 .55056 .05562

Pay and benefits 5.349 .000
non-managerial 284 3.6040 .75580 .04485

Managerial 97 3.9433 .59238 .06015

Working conditions 1.983 .048
non-managerial 284 3.7761 .75460 .04478

Managerial 98 3.9005 .56274 .05685

Recognition 3.555 .000
non-managerial 284 3.6435 .63459 .03766

Managerial 98 4.0755 .68715 .06941

Supervisory
3.513 .000
Relationship
non-managerial 283 3.7578 .79869 .04748

Managerial 98 3.7372 .56915 .05749

Equity 2.079 .038
non-managerial 263 3.5608 .76456 .04714

Managerial 98 4.2724 .45395 .04586 3.308 .001

38
Relationship with co-
non-managerial 263 4.0589 .57556 .03549
worker

Managerial 98 4.3903 .48171 .04866

Goal setting behavior 2.695 .007
non-managerial 282 4.1569 .80836 .04814

Managerial 98 3.7143 .81860 .08269

Promotion
1.542 .124
Opportunity
non-managerial 282 3.5795 .71824 .04277

Managerial 97 3.9536 .71928 .07303

Job enrichment 5.438 .000
non-managerial 284 3.4660 .77655 .04608

Managerial 97 3.6082 .95122 .09658

Training and
3.578 .000
Development
non-managerial 283 3.1961 .98839 .05875

Source: (own survey, 2021)

4.3. Inferential/ Econometrics Analysis

Before running the logistic regression analysis, all the hypothesized explanatory variables were
checked for the fitness and adequacy of the model, and consequently found to be significantly
adequate and fitted well. The ordered logistic regression model was also fitted to estimate the
effects of a unit change in the individual hypothesized explanatory variable towards the variance
of job satisfaction of employees in Private and public commercial banks at DDA.
4.3.1Test of Model
This section includes multicollinearity test autocorrelation assumptions, model fitting
information, goodness-of-fit, Pseudo R-square, test of parallel lines which assures the capability
of logistic regression to estimate the determinants of employees’ job satisfaction in public and
private commercial banks.

The researcher is capable of measuring the significant effect of independent variables on the
dependent variable when these variables are uncorrelated (Keith, 2006).Tolerance rate and
Variance Inflation Factor were employed to determine collinearity among variables

Table 4.9: Multicollinearity Test

39
 Collinearity Statistics Durbin-Watson

Variables
Tolerance VIF

Pay and Benefit .490 2.042

Working Condition .605 1.652

Recognition .434 2.305

1.58

Supervisory .337 2.966

Relationship

Promotion .314 3.190

Training and .569 1.757

Development

Relationship with .555 1.801

Co-worker

Equity/Fairness .404 2.476

Job Enrichment .345 2.895

Goal Setting .488 2.048

Source: (own survey, 2021)

Tolerance rate showed all independent variables were having nomulticollinearity problem since
the tolerance coefficient was between 0.314 (31.4%) and 0.605(60.5%)while VIF ranged
between 1.7 and 3.2 (table 4.8). Tolerance values less than 0.10 (10%)and Variance Inflation
Factor (VIF) values greater than 10 indicate multicollinearity (Ringle et al., 2015).

40
Durbin-Watson coefficient was also deployed to investigate the assumption of autocorrelation.

Autocorrelation can be referred when error term of a variable is subsequently correlated in a time
period with error term of another variable (Berman and Wang, 2017). Results showed Durbin-
Watson (DW) =1.58 indicating there is no autocorrelation among the variables (see table 4.9).
However, Durbin-Watson coefficient was observed to be in an acceptable range since Durbin-
Watson coefficient isin range between 1 and 3 for autocorrelation assumption test (Field (2009).

Model fitting information

The model fitting information shown in table 4.10below had significant value of 0.000 which
describe the model was fit for logistic regression

Table 4.10: Model fitting information

Model -2 Log Chi-Square df Sig.

Likelihood

Intercept Only 908.957

Final 486.628 422.329 38 .000

Link function: Logit.

Source: (own survey, 2021)

The goodness of fit of fit table contains the pearson and Deviance chi-square tests, which are
useful for determining whether a model exhibits good fit to the data. Non-significant tests results
are indicators that the model fits the data well (Field, 2018; Petrucci, 2009). in this analysis, both
the Pearson chi-square test [X2 (670)=891.61, p=0.309] and the deviance test [X2 (670)=477.474,
p=1.000] were both non-significant. these results suggest good model fit.

Table 4.11: Goodness-of-Fit

41
 Chi-Square df Sig.

Pearson 891.651 670 .309

Deviance 477.474 670 1.000

Link function: Logit.

Source: (own survey, 2021)

The fourth test of fitness was Pseudo R-Squire which showed how the model explained by the
Explanatory variable using those three variables describes the model ability of determination in
contrary to the common use of R2. These indicators that substitute the classical coefficient of
determination of R2 is called pseudo-coefficients of determination and are for ordinal regression
the statistics of cox and snell (Cox and snell, 1989), of negelkerke (Nagelkerke,1991) and of
McFadden,(McFadden,,1974) .the Result of this pseudo-coefficients are also presented at table
4.12 The value of cox and Snell’s (0.701) and Negelkerke’s (0.755) statistics indicate an obvious
good fitting ability for the model .the corresponding value of McFadden(0.558) can be
considered acceptable. As a result, almost 76% (Negelkerke’s= 0.755) of bankers’ job
satisfaction determined by those statistically significant antecedents in this study.

Table 4.12: Pseudo R-Square

Cox and Snell .701

Nagelkerke .755

McFadden .558

Link function: Logit.

Source: (own survey, 2021)

The last procedure for the evaluation of the model is the parallel line test ( see table 4.13) This
test opens for the universality of the model, because it helps to assess, whether the assumption
that the parameters are the same for all categories is reasonable. Substantially parallel lines test
suggest a hypothesis testing. the null hypothesis was acceptable (Norusis,2004) when P value

42
(Doan,2005)presents higher score than 0.05 or 0.1(McCullagh and Nelder,1989). In the case of
ordinal model the null hypothesis was accepted since the statistical significance was 0.739.

Table 4.13: Test of Parallel Linesa

Model -2 Log Likelihood Chi-Square df Sig.

Null Hypothesis 301.734

General 286.105b 15.630c 20 .739

The null hypothesis states that the location parameters (slope coefficients) are the
same across response categories.

a. Link function: Logit.

b. The log-likelihood value cannot be further increased after maximum number of

step-halving.

c. The Chi-Square statistic is computed based on the log-likelihood value of the last
iteration of the general model. Validity of the test is uncertain.
4.3.2 Logistic Regression Parameter Estimates
After testing and confirming the fitness and adequacy of the model which were significantly fit
and adequate the effect of one-unit change in the individual hypothesized explanatory variable
toward or the likely hood of occurrence on the job satisfaction of employees in private and public
commercial banks was determined. Regressions of the data was computed using order logit link
and determine the job satisfaction antecedents and the following regression output of the model
were summarized in table 4.14.

The results showed that Pay and Benefit, Working Condition, Equity/fairness, Relationship with
co-worker, Recognition, goal setting behavior, promotional opportunities, job enrichment,
monthly income, gender, and employment category significantly determine banker’s job
satisfaction in the study area since the p values of those antecedents is less than 0.05..

The positive sign of order regression coefficient of estimation showed that there was a positive
relationship existed between job satisfaction and its antecedents. All aforementioned antecedents
had positive relationship with employee’s job satisfaction because the entire antecedents had

43
positive sign of coefficients of estimation. When we looked at in detail the analysis would be as
follows:

Managerial employees showed 13.68 (the odds ratio= eestimates=e2.616) times significantly better
satisfaction than non-managerial employees. In addition male bankers showed 4.3 times better
satisfaction than female employees.

For one-unit increase in Pay and benefit, there will be1.886 increases in the log odds of being
higher level of job satisfaction; in other words there will be 6.59 times more likely occurrence of
bankers job satisfaction keeping other predictors remains constant. This finding was in line with
Danish and Usman (2010).

For one unit increase in working condition, there will be 0.784 in the log odds of being higher
level of job satisfaction; in other words there will be 2.19 times more likely occurrence of
bankers’ job satisfaction keeping other predictors remains constant. This finding was in line with
Cherrington (2011, Steers et al,(2015).

For one unit increase in distributive and process justice or equity, there will be 0.644 in the log
odds of being higher level of job satisfaction; in other words there will be 1.9 times more likely
occurrence of bankers’ job satisfaction keeping other predictors remains constant. This finding
was in line with This finding was in line with Klen (2009)and Watson et al (2013)

For one-unit increase in relationship with co-workers, there will be 0.57 increases in the log odds
of being higher level of job satisfaction; in other words there will be 1.77 times more likely
occurrence of bankers’ job satisfaction keeping other predictors remains constant. This finding
was in line with Iqbal (2010), Ladebo (2014) and Saghir (2015)

For one-unit increase in goal setting, there will be 0.25 increases in the log odds of being higher
level of job satisfaction; in other words there will be 1.28 times more likely occurrence of
bankers’ job satisfaction keeping other predictors remains constant. This finding was in line with
Abdullah and Djebavni (2011)

44
For one-unit increase in recognition, there will be 1.228 increases in the log odds of being higher
level of job satisfaction; in other words there will be 3.41 times more likely occurrence of
bankers’ job satisfaction keeping other predictors remains constant. This finding was in line with
Manzoor (2010) and Kamalian et al. (2012)

For one-unit increase in promotional opportunities, there will be 1.625 increases in the log odds
of being higher level of job satisfaction; in other words there will be 5.18 times more likely
occurrence of bankers’ job satisfaction keeping other predictors remains constant. This finding
was in line with Bushra et al (2011), Turk et al,(2011 ) and Ramasodi (2012).

For one-unit increase in Job enrichment, there will be 1.465 increases in the log odds of being
higher level of job satisfaction; in other words there will be 4.33 times more likely occurrence of
bankers’ job satisfaction keeping other predictors remains constant. This finding was in line with
Huczynski and Buchanan (2011).

Table 4.14: Parameter Estimates

Estimate Std. Error Wald df Sig. 95% Confidence Interval

Lower Bound Upper Bound

[Job satisfaction = 5.864 1.598 13.465 1 .000 2.732 8.996

1.00]

[Job satisfaction = 8.269 1.617 26.163 1 .000 5.100 11.437

2.00]
Threshold
[Job satisfaction = 13.372 1.797 55.368 1 .000 9.850 16.895
3.00]

[Job satisfaction = 15.918 1.900 70.163 1 .000 12.193 19.642

4.00]

Pay &Benefit 1.886 .342 30.410 1 .000 .693 2.418

Location

Working
.784 .284 7.621 1 .005 .227 1.341
conditions

Supervisory .317 .331 .919 1 .338 -.331 .965

relationship

45
 .000 .310 .978
Equity/fairness .644 .340 3.587 1

.000 .293 .848

Relationship with
.570 .297 19.045 1
co-worker

Recognition 1.228 .304 16.324 1 .000 .632 1.824

.028 .012 .587

Goal setting
.248 .289 0.736 1
behavior

Promotional
1.625 .256 40.29 1 .015 .523 2.527
opportunities

Job enrichment 1.465 .322 20.758 1 .000 .835 2.096

Training and
.134 .196 .469 1 .493 -.249 .517
development

Income 16.318 1.900 73.76 1 .000 11.193 20.642

[Public=.00] .360 .413 .760 1 .383 -.449 1.169

[private=1.00] 0a . . 0 . . .

[age=2.00] .183 .749 .059 1 .808 -1.286 1.651

[age=3.00] 1.183 .852 1.930 1 .165 -.486 2.853

[age=4.00] 0a . . 0 . . .

[Male=.00] 1.459 .396 13.571 1 .000 .683 2.235

[Female=1.00] 0a . . 0 . . .

[Managerial=0] 2.616 .965 7.350 1 .007 .725 4.508

[Non-
0a . . 0 . . .
Managerial=1]

[exp=1.00] -.539 1.422 .144 1 .705 -3.325 2.248

[exp=2.00] -1.184 1.128 1.101 1 .294 -3.396 1.027

46
 [exp=3.00] -.020 1.146 .000 1 .986 -2.267 2.227

[exp=4.00] -1.379 1.095 1.586 1 .208 -3.525 .767

[exp=5.00] 0a . . 0 . . .

Source: (own survey, 2021)

4.3.3 Hypothesis Testing

The researcher has formulated nine hypotheses which were presented in chapter one. Pay and
benefits have significant influence (beta =1.886; wald statistics=30.4; P<0.05) on banker’s job
satisfaction; Promotional opportunities have a significant influence (beta =1.625; wald
statistics=40.29; P<0.05) on employees’ job satisfaction; Recognition has a significant influence
(beta =1.228; wald statistics=16.32; P<0.05)on employees’ job satisfaction;
Favorable/Conducive working environment has significant influence on employees’ job
satisfaction; Favorable/Conducive working environment has significant influence (beta =0.784;
wald statistics=7.621; P<0.05) on employees’ job satisfaction; Perceived equity has a significant
influence (beta =0.644; wald statistics=3.587; P<0.05) on employees’ job satisfaction;
Relationship with co-worker has a significant influence (beta =0.57; wald statistics=19.05;
P<0.05) on employees’ job satisfaction; and Job-Enrichment has a significant influence (beta
=1.465; wald statistics=20.76; P<0.05) on employees’ job satisfaction. Table 4.15 below
summarized hypotheses testing results.

Table 4.15: Hypothesis testing results

Hypothe Descriptions estimates Wald- P- Result

sis statistics value

1 Pay and benefits have significant influence on 1.886 30.410 .000 Supported
employee job satisfaction.

2 Promotional opportunities have a significant 1.625 40.29 .015 Supported

47
 influence on employees’ job satisfaction.

3 Effective supervisory relationship has a .317 .919 .338 Rejected

significant influence on employees’ job
satisfaction.

4 Training and development have a significant .134 .469 .493 Rejected

influence on employees’ job satisfaction.

5 Recognition has a significant influence on 1.228 16.324 .000 Supported

employees’ job satisfaction

6 Favorable/Conducive working environment .784 7.621 .005 Supported

has significant influence on employees’ job
satisfaction

7 Perceived equity has a significant influence on .644 3.587 .000 Supported

employees’ job satisfaction.

8 Relationship with co-worker has a significant .570 19.045 .000 Supported

influence on employees’ job satisfaction.

9 Job-Enrichment has a significant influence on 1.465 20.758 .000 Supported

employees’ job satisfaction

Source: Own Survey (2021)

48
However Training and development and supervisory relationship weren’t significantly influence
employees’ job satisfaction in Private and Public commercial banks since the P-values were
above 5%.

49
 CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
5.1. Summary of Findings
Basically, this study had three specific objectives such as assessing the status of employees’ job
satisfaction in public and private owned commercial banks, ranking determinants of employee
job satisfaction in commercial banks, investigating whether there is significant job satisfaction
difference among employees due to gender, age, experience, employment category, type of
employment in commercial banks along with formulated nine hypotheses. As a result, the
following findings were obtained from this research:

 187 sample respondents (49.6%) showed average job satisfaction, 81 (21.5%) rated their
job satisfaction as high, and the remaining 48 (12.7%), 43 (11.4%), and 18 (4.8%) of
respondents expressed their job satisfaction as low, very high and very low job
satisfaction respectively. So, respondents’ job satisfaction can be summarized as 49.6%
rated their job satisfaction as average or moderate, 32.9% described their job satisfaction
as high and the remaining 17.5% revealed their job satisfaction as low. Consequently,
respondents’ job satisfaction highly inclined to average level.
 the study also revealed that from 180(47.7%) the total public commercial banks
respondents, more than half 93(24.7) of employees ‘uttered their job satisfaction as
average and similarly from 197 (52.3%) of private commercial banks respondents 94
(24.9%) of rated their job satisfaction at the average level.
 The mean and t-statistics results revealed that the average job satisfaction of employees
in public commercial banks was significantly better than employees in private
commercial banks.
 Similarly, the managerial employees showed higher job satisfaction than non-managerial
employees. In addition male bankers’ job satisfaction was significantly better than female
bankers among private and public commercial banks in Dire Dawa Administration.The F-
statistics and the mean results also revealed that the age category 21 to 30 showed
significantly higher job satisfaction than other age groups. Regarding the work
experience, those who had 6 to 10 years work experience confirmed uppermost job
satisfaction than others.

50
  The ordinal logistic regression revealed Pay and Benefit, Working Condition,
Equity/fairness, Relationship with co-worker, Recognition, goal setting behavior,
promotional opportunities, job enrichment, monthly income, gender, and employment
category significantly determine banker’s job satisfaction in the study area since the p
values of those antecedents is less than 0.05. However Training and development and
supervisory relationship weren’t significantly influence employees’ job satisfaction in
Private and Public commercial banks since the P-values were above 5%.
 Managerial employees showed 13.68times significantly better satisfaction than non-
managerial employees. In addition male bankers showed 4.3 times better satisfaction than
female employees.
 Adequate pay and benefits would be the cause of 6.59 times more likely occurrence of
bankers job satisfaction keeping other predictors remains constant; promotional
opportunities would be the reason for 5.18 times more likely occurrence of bankers’ job
satisfaction keeping other predictors remains constant;Job enrichment would be the
reason for 4.33 times more likely occurrence of bankers’ job satisfaction keeping other
predictors remains constant; recognition would be the cause of 3.41 times more likely
occurrence of bankers’ job satisfaction keeping other predictors remains constant;
working conditions would be also the reason for 2.19 times more likely occurrence of
bankers’ job satisfaction keeping other predictors remains constant. goal setting and
relationship with co-workers would be the cause of 1.28and 1.77 times more likely
occurrence of bankers’ job satisfaction respectively keeping other predictors remains
constant
5.2. Conclusions
A conclusion is about the implication of this study. Therefore, the following conclusions would
be drawn from this study.

Employees had average job satisfaction among private and commercial banks in Dire Dawa
Administration. There was also significant job satisfaction difference among employees due to
their affiliation, gender, work experience, age and employment category.

Among hypothesized nine major variables, seven of them namely Pay and Benefit, Working
Condition, Equity/fairness, Relationship with co-worker, Recognition, goal setting behavior,

51
promotional opportunities, job enrichment significantly influence bankers ‘job satisfaction of
both in private and public owned commercial. However Training and development and
supervisory relationship weren’t significantly influence employees’ job satisfaction.

The likelihood of occurrences of bankers’ job satisfaction was the highest due to pay and
benefits followed by promotional opportunities, Job enrichment, recognition, working
conditions, equity/fairness, relationship with co-workers and equity/fairness.

All in all, Pay and Benefit, Working Condition, Equity/fairness, Relationship with co-worker,
Recognition, goal setting behavior, promotional opportunities, job enrichment, monthly income,
gender, and employment category significantly determine banker’s job satisfaction
5.3. Recommendations
Based on the findings of the study the following recommendations are worth drawn.

 Private and Public commercial banks in DDA should give due attention to job enrichment
via rotate jobs (look for opportunities to let employees experience different parts of the
organization and learn new skills), combining tasks, create autonomous work teams (It is
advisable for commercial banks to give freedom to employees in doing their task by
provision of necessary resources to achieve the desired result, widen decision making and
use feed-back effectively
 Recognition was significant in determining banker’s job satisfaction. So, commercial
banks should establish solid criteria for work performance, recognizing people from all
areas of operation, fostering recognition culture where informal feedbacks are frequently
offered, aligning performance benchmarks with the company’s goals, culture and
succession strategy
 For an organization to be successful, private and commercial banks should ensure fair
promotion system in an organization in order to mutually have a high level of job
satisfaction i.e. promotion should be provided based on the qualification and experience
 The study showed that working condition has the positive influence on the job
satisfaction of bankers. As a result office layout and crowdedness of front office section
should have due attention in solving the crowdedness of the office by expanding the front

52
 office, crate a good and attractive office layout and develop conducive working
condition.
 Private and public commercial banks can improve inequitable situation via changing
inputs , changing outcomes, changing perceptions , leaving the field acting on the
comparison other , changing the comparison other
 Commercial banks should also give due attention to female employees since their
 Both Public and Private commercial banks in DDA need to give due attention to revise
the pay structure in consultation with head offices. Moreover, different financial and
non-financial benefit programs should be introduced such as education, health, work
family support packages and others

53
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57
 ADDIS ABABA MEDICAL AND BUSINESS COLLEGE
SCHOOL OF POST GRADUATE STUDIES

Dear participant, my name is Abel Belete, I am pursuing MBA (Master of Business

Administration) program at Addis Ababa Medical and Business Collage in Ethiopia. My
research topic is entitled “DETERMINANTS OF EMPLOYEES’JOB SATISFACTIONIN
COMMERCIAL BANKS in Dire Dawa Administration a comparative study between Public and
Private Banks”

This questionnaire is designed to assess the determinant factors affecting employee job
satisfaction of public and private banks in Dire Dawa Administration. The answers given in this
questionnaire will be used only for academic purpose and remain confidential. Thus, you are
kindly requested to provide correct information for each question and you’re genuine, frank and
timely responses are quite vital to determine the success of this study. So, I kindly request your
contribution in filling the questionnaire honestly and responsibly. I thank you in advance for
your valuable time and cooperation.
For further information, please contact me with the following address:
Phone number 09-11-06-72-74
09-38-39-20-30
09-22-79-47-76
E-mail Address: [email protected]

58
Section I.
Demographic Information:
Kindly, please tick “√” mark on your correct option for the following statements.

1. Name of your Bank: _____________________________________

2. Age:
1) Below 20 years old 2) 21–30 years old 3) 31– 40 years’ old

4) 41– 50 years old 5) 51 years old and above

3. Gender:
1) Male 2) Female

4. Type of Employment:

1) Managerial 2) Non-Managerial

5. Your work experience:

1) Below 1 years
2) 1 - 5 years
3) 6 -10 years
4) 11 - 15 years
5) 16 years and above

6. What is the highest level of education you have completed?

1) College Diploma 2) 1stDegree
3) 2ndDegree and above 4) If other, please specify ______________

7. Current Position
1) Junior expert 2) Expert
3) Senior expert 4) Team leader

5) If other, please specify__________________

8. Your monthly income (in ETB): _____________

59
Section II.
The table here below consists of list of items to be rated based on your level of agreement. Please
indicate “√” mark on each statement for your response.

Scale: 1. Strongly Disagree 2.Disagree 3. Neutral 4.Agree 5. Strongly Agree

Payment and Benefit:

Disagree Strongly

Agree Strongly
Disagree

Neutral

Agree
S. No. Statements

1. The company provides salaries and benefits that compared

favorably with other companies in the industry
2. I feel I am being paid a fair amount for the work I do

3. I am satisfied with my benefit package

4. Salary and benefits motivate me

5. I get non-financial benefits

6. Adequate Salary and benefits have positive influence on

employee job satisfaction

Working Condition:

Agree Strongly
Disagree Strongly

Disagree

Neutral

Agree
S. No. Statements

I have the tools, resources and support I need to

1.
accomplish my job well
My workplace is safe, attractive and physically comfortable
2.
place to work

3. I have all the information I need to do my job effectively

Conducive Working conditions has a positive influence on

4.
employee job satisfaction

Recognition:

60
 Disagree Strongly

Agree Strongly
Disagree

Neutral

Agree
S. No. Statements

1. There is a clear policy by which the office praise and

appreciate its employees with high level of performances
I feel I am rewarded for my dedication and commitment
2.
towards the work

Management appreciate as employee come up with new

3.
and better ideas

Recognition has a positive influence on employee job

4.
satisfaction

Supervisory Relationship:

Disagree Strongly

Agree Strongly
Disagree
S.

Neutral

Agree
No. Statements

1. My supervisor are approachable and helpful

My supervisor provides useful and constructive feedback

2.
andaddress question or concerns I have

I can respectfully disagree with my supervisors without fear

3.
of reprisals

My supervisor acknowledged me with praise and

4.
recognition for exceptional work

Effective supervisory relationship has a positive influence

5.
on employees’ job satisfaction

Equity/Fairness:
Disagree Strongly

Agree Strongly
Disagree

Neutral

Agree

S. No. Statements

61
 Salary, benefits, and promotion are based on employees
1.
qualifications and results

2. My supervisor or manager treats all employees fairly and

with respect

3. Fair salary and benefit and fair distribution of office

materials and equipment
Equity/Fairness has a positive influence on employee
4.
motivation

Relationship with Co-worker:

Disagree Strongly

Agree Strongly
Disagree

Neutral

Agree
S. No. Statements

1. I like the people I work with and it is easy to get along

with them
2. People in my work place communicate sufficiently with
one another
3. There is transparency and mutual trust among co-workers

4. My fellow workers treat me respectfully

5. Social support among co-workers is high

6. Strong Relationship with Co-workers has a positive

influence on employee job satisfaction

Goal Setting:
Disagree Strongly

Agree Strongly
Disagree

Neutral

Agree

S. No. Statements

1. I understand the company’s goals and the link between

my work and these objectives

62
2. I feel part of a team working towards a shared goal

3. I participate in the goal setting of the organization

Participation in the goal setting of the organization has a

4.
positive influence on employees’ job satisfaction

Promotion Opportunity:

Disagree Strongly

Agree Strongly
Disagree

Neutral

Agree
S. No. Statements

I am satisfied with selection criteria followed for

1.
promotion and my chances for promotion

2. Those who do well on the job stand a fair chance of being

promoted
3. There is really too little chance for promotion on my job

Promotion opportunity has a positive influence on

4.
employees’ job satisfaction

Job Enrichment:
Disagree Strongly

Agree Strongly
Disagree

Neutral

Agree

S. No. Statements

1. I have freedom in deciding about my work

I have additional authority, autonomy, and control over

2.
the way the job is accomplished

63
 My work encourages me to generate new ideas and
3.
innovations

Providing an employee with additional authority,

4. autonomy, and control over the job has a positive
influence on employee motivation

Training and Development:

Disagree Strongly

Agree Strongly
Disagree

Neutral

Agree
S. No. Statements

My officeimplements human resource development

1.
program and provides need based training

I receive periodic training to grow and be effective in my

2.
job

My office provides special trainings with low performing

3.
employees

Effective training and development has a positive

4.
influence on employee job satisfaction

Section III: Measurement of Employees’ Job Satisfaction

The following statement relates to your states of job satisfaction at your organization. Please

indicate your level of agreement/disagreement by ticking [√] in the box for your exact feeling.

3.1. How do you rate the level of your job satisfaction in your respective bank?

Very low Low Average High

Very high

3.2. How do you rate your level of satisfaction with your current monetary & non-monetary rewards?

Very low Low Average High Very high

64
3.3. Do you feel that there is employee turnover in your organization?

Yes No I do not know

3.4. Do you feel job security at your current Organization?

Yes No Neutral

SECTION IV: Other Factors, and Challenges of Employee Motivation

4.1. Which factors do you think affect/determine employee job satisfaction?

____________________________________________________

4.2. What does this organization do that makes it a place where people would want to work?

4.3. What does this organization do to increase your satisfaction and productivity as employee ?

Thank you for helping me!!

65