The effect of working environment on employees’ performance in the case of Commercial Bank of Ethiopia Jimma town branches

Abstract

Employees are a valuable resource that can contribute in various ways to some organizational activities and its achievements. Employee’s performance depends on (hinges on) a productive and accomplishing relationship between employee, their companies and their productivity. The issue of employee satisfaction has been momentous in recent times to the development and accomplishment of organizations‟ goals and objectives. The aim of this study is to investigate the factors(variables) that affect employees’ performance or the effect of working environment on employee performance, on CBE Jimma district city branches. Employees are a valuable resource that can contribute in various ways to all organizational activities and its achievements. Employee performance always relates to individual satisfaction toward his or her work environment. The researcher utilized simple random sampling to collect 164 questionnaires from CBE Jimma district city branches. Data collection was conducted by using both primary and secondary source. Primary data was mainly collected using standardized questionnaires consisting of closed ended questions with 5 point Likert Scale. The collected data were quantitatively analyzed using SPSS to produce descriptive statistics and regression analysis. These respondents were provided a questionnaire with five main construct item. However, using correlation coefficient, the study found that organizational performance had significant positive influence with four dimensions of independent variables. The result of regression analysis found that all constructs had statistically significant, positive, and straight effects with employee performance. The researcher recommends the following ideas based on the major findings. The organization could be pay incentives, rewards must be based on the individual’s performance achievements not on organizational performances; CBE should recognize the importance of relevant training & development opportunities to its staff to help work effectively and professionally; CBE use individual’s performance for decision making like promotion, job rotation, training, compensation and transfers in spite of generalizing employee performances.