The Effect of Employee Empowerment Practices on Employee Job Satisfaction in the Case of Some Selected Private Banks in Dire Dawa City

Abstract

The main aim of this study is investigate the effect of employee empowerment on job satisfaction in case of selected private commercial banks in Dire Dawa City Administration. The study departs from previous studies by focusing on both structural and psychological empowerment, seven private commercial banks, and using more sample. Primary data obtained from 220 employees of purposively selected private banks by using proportionate stratified sampling was used and data were collected through preparing closed ended structured questionnaires. In this study both descriptive and explanatory research design were employed. In doing so, descriptive statistics, Pearson’s correlation, and multiple linear regression analysis were used to analysis the collected data. The main finding reveals the higher positive and significant effect of access to opportunity, access to supply and access to support on job satisfaction of employees of selected private commercial banks. Further, the result indicates the significant and positive effect of access to information, competence, meaningfulness, and impact dimension of empowerment on job satisfaction. Accordingly, the responsible bodies in private banks are recommended to increase proper implementation of employee’s empowerment through providing training and development sessions; allowing employees to participate in special task forces; support employees and enhancing collegiality and collaboration among staff; accessing employees to essential information required by employees; and encourage open communication among ordinary staffs and boss. Side by side, giving freedom to employees to decide on their tasks and opportunity for self-improvement and autonomy; increase the influence of employees in their department; and making employees to feel the work and job they do is essential could enhance the psychological empowerment dimension.