COMAPARATIVE STUDY OF EMPLOYEE JOB SATISFACTION IN

PRIVATE AND PUBLIC ORGANIZATION IN CASE OF ABYSSINIA AND

DEVELOPMENT BANK OF ETHIOPIA BANKS

A RESEARCH PAPER SUBMITTED TO MANAGEMENT PROGRAM FOR

THE PARTIAL FULFILLMENT OF REQUIRMENT OF BA DEGREE IN
MANAGEMENT

BY: SAMUEL ZELEKE

ADVISOR: ABRIHAM.G (MBA)

WACHEMO UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS DEPARTMENT

OF PUBLIC ADMINSTRATION AND DEVELOPMENT
MANAGEMENT

MARCH 2021

HOSSANA ETHIOPIA
 ACKNOWLEDGMENT

Behind my every success and achievement is the almighty GOD whose charity, mercy, kindness,
and help are invaluable forever.

Secondly, I would like to express my sincere and heart full thanks to my advisor Firew Zewde
(MBA) who devotes much of his time and energy to read the paper and make valuable
professional advice and constructive comments.

Lastly, my deepest and heartfelt gratitude goes to my mom for her moral and financial support
from the beginning until now.
 I

Abstract
This paper addressed the comparative study of employee job satisfaction in public and private
organizations in case of Abyssinia bank and Development bank of Ethiopia Hawassa branches.
The main objective of the study was comparative study of employee job satisfaction in public and
private banks and suggesting methods how to maintain job satisfaction of employees in the
banks. During the research process both primary and secondary sources of data were used to
obtain the necessary information. For the study census was used as an appropriate sampling
technique which avoids biases. The census was used to participate all employees of the
organizations. The responses of respondents were collected by using questionnaires. At the end
the researcher gave conclusions and recommendations that banks used to maintain their
employees job satisfaction.
 II

Acronyms
DBE: Development bank of Ethiopia

List of Tables
Content page

Table 3.1 General information of employees………………………………………18

Table 3.2 Employee satisfaction with pay, physical working……………………...19

Condition and supervision

Table 3.3 Job satisfaction of employees with training,………………………….....21

Working condition and promotion

Table 3.4 Employees job satisfaction with level of stress………………………….22

Table 3.5 Job satisfaction with work performance of co-workers …………………24

And promotion system

Table 3.6 Employees satisfaction with job security and recognition……………….25

Of job well done

Table 3.7 Job satisfaction with benefit package…………………………………….25

Table 3.8 Employees satisfaction with their supervision, work and ………………..26

Flow of communication

Table 3.9 Job satisfaction with organizational concern……………………………..27

Table 3.10 Employee satisfaction with promotion and co-operation……………….28

Among work group and job satisfaction with organization

Concern

Table 3.11 Job satisfaction and supervision………………………………………...29

Table 3.12 Job satisfaction with benefit package…………………………………...30

 III
Table of content
Content page

Acknowledgement……………………………………………………………….I

Abstract…………………………………………………………………………..II

List of tables……………………………………………………………………...III

Chapter one
Introduction

1.1 Background of the organization…………………………………………….1

1.2 Background of the study……………………………………………………3

1.3 Statement of the problem…………………………………………………...4

1.4 Research question…………………………………………………………..4

1.5 Objective of the study……………………………………………………...4

1.5.1 General objective…………………………………………………….4

1.5.2 Specific objective…………………………………………………….5

1.6 Significance of the study……………………………………………………5

1.7 Research design……………………………………………………………..5

1.7.1Description of the population…………………………………………5

1.7.2 Source of data………………………………………………………..5

1.7.3 Sample size determination……………………………………………5

1.7.4 Sampling technique……………………………………………………5

1.7.5 Data collection method………………………………………………..6

1.7.6 Data analysis method………………………………………………….6

1.8 Scope of the study…………………………………………………………..6

 Chapter Two
Review of related literatures………………………………………………7

2.1 Concepts and definitions of terminologies………………………………….7

2.2 Job satisfaction: A conceptual approach……………………………………7

2.3 A model of job satisfaction…………………………………………………..8

2.4 Job satisfaction and work behavior…………………………………………..9

2.4.1 Job satisfaction and performance………………………………………10

2.4.2 Job satisfaction and organizational ……………………………………11

Commitment

2.4.3 Pay benefit and job satisfaction………………………………………...13

2.4.4 Satisfaction and organizational………………………………………….13

Citizenship behaviors

2.5 Results of employee dissatisfaction…………………………………………14

2.5.1 Physical withdrawal…………………………………………………..14

2.5.2 Psychological withdrawal…………………………………………….15

Chapter three
Data analysis, presentation and interpretation

Chapter four
Conclusions and recommendations

4.1 conclusions…………………………………………………31

4.2 Recommendation…………………………………………..32
Reference

Appendix
 CHAPTER ONE
Introduction
1.1 BACKGROUND OF THE ORGANIZATION

Development bank of Ethiopia

the history of Development bank of Ethiopia goes back to 1909 when the first attempts of its
kind known as the societe narionale d’ Ethiopie pour le development de l’agriculture et de
commerce[the society for promotion of agriculture and trade ]was established in the menelik II

era. Since then the bank has taken different names.

Mission of DBE
“The Development bank of Ethiopia is specialized financial institution established to promote
the national development agenda through development finance and close technical support to
viable projects from the priority areas of the government by mobilizing fund from domestic and
foreign sources while ensuring its sustainability.”

Vision
“100% success for all financed projects by 2020.”

Values
Commitment to mission
Customer focus
Integrity
Team work
High value to employees
Learning organization
Concern to the environment
 Abyssinia Bank
February 15, 1906 marked the beginning of banking in Ethiopia when the first bank of Abyssinia
was inaugurated by emperor menelik II. It was a private bank whose shares were sold in addis
abeba, London, newyork, Paris and Vienna. In 1931, Emperor Haile selassie introduced reforms
into the banking system and bank of Abyssinia become bank of Ethiopia, a fully government
owned bank providing central and commercial banking services. With the Italian invasion in
1935 came the demise of one of the earliest initiates in African banking.

On February 15, 1996, ninety years to the day following the establishment of the first bank of
Abyssinia, a new privately owned bank with this historic name, but otherwise not connected with
the older bank, came into existence.

Mission
To provide full fledged domestic and international banking services through qualified and
motivated employees, utilization of modern technology, and through socially and ecologically
responsible practice, as well as ensuring profitability and growth.

Vision
As “Abyssinia” is the ancient name of our great nation and that of the pioneer bank of the land,
bank of Abyssinia’s vision is to live up to this legacy through continuous innovation and
provision of world class banking services.

Values
Integrity, Honesty, and Loyalty
Efficient customer service
Commitment
Equal employment opportunity
Employee satisfaction
Team sprit
Good corporate governance
Social responsibility
Innovation
Fair return to shareholders
 1.2 Background of the study
Job satisfaction is one of the most popular and widely researched topics in the field of
organizational psychology (spector.1997). Job satisfaction represent’s a person’s evaluation of
his/her job and work context. It is an appraisal of the perceived job characteristics work
environment, and emotional experience at work. Satisfied employees have a favorable evaluation
of their job, based on their observations and emotional experiences. Job satisfaction is really a
collection of attitudes about specific facets of the job. Employees can be satisfied with some
element of the job while simultaneously dissatisfied with other. You might like your co-worker
but be less satisfied with work load or other aspect of the job.

How are we satisfied at work? National survey indicates that over 85% of Americans have been
satisfied with their job for the past decades or more. However, this level may have slipped
somewhat recently, mainly, due to downsizing and lack of work life balance. In a survey of 39
countries Americans has the fourth highest job satisfaction rating. Only employees in Denmark,
India, and Norway say that are happier at work. Another survey found that the third highest job
satisfaction, after Brazilian and Canadians among the 10 largest economies in the world. (Ms
Shane, S.L and Glinow, A.M, 2005).

New survey by right management on 30,000 workers worldwide which showed that between
28% and 56% of employees in 17 spots around the globe wanted to leave their jobs. In USA 32%
said they wanted to find new work. That is about half of the 65% of respondents to right
management survey, who said they were either somewhat or totally unsatisfied.
(www.forbes.com)

A research conducted on corporate social responsibilities and attitudes on 50 Ethiopian

companies’ shows that 10% of companies were negative on meaning of full freedom, job
satisfaction and human treatment (www.emeral dight .com)

Employees job satisfaction in Abyssinia bank is higher than development bank of Ethiopia. The
researcher would try to assess the gap between the bank sectors.
 1.3 Statement of the problem
As the banking institutions are the back bone of the nation’s economy the efficient Management
of human resources and maintenance of higher job satisfaction affects the growth and
performance of an entire economy. The public and private banks differ with respect to
compensation structure, working environment, growth opportunities and job security provided to
the employees. It has been observed the work culture of public sector banks is based on the
concept of socio-economic responsibility in which profitability is secondary. On the other hand
private sector banks work towards profitability.

These differences between the sectors hold an important factor in shaping the work culture of the
organization. It was found that private sector banks employees perceives greater satisfaction with
pay, social and growth aspects as compared to public sector bank employees. On the other hand
public sector bank have expressed greater satisfaction with job security as compared to private
sector bank employees. The findings of the study highlighted important satisfiers and
dissatisfiers present in the job and suggest both banks to take performance initiatives in the area
where employees have reported reduced satisfaction. (S. Arunima and P. Pooja. 2009).

1.4 Research questions

 What are the measurements used by the management of the organization to overcome
the problem of job satisfaction?
 What is the level of employee’s job satisfaction in both private and public sector bank?
 What is the relationship between employee’s job satisfaction and job performance in
organization?

1.5 objective of the study

1.5.1 General objectives

The General objective of the study is to identify employees comparative job
satisfaction in public and private organizations (Banks).

1.5.2 Specific objectives

 To identify the relationship between employees job satisfaction and job
performance in public and private bank.
 To identify what measures are taken by management of the organization
(private and public)
  To check what it seems the employee’s level of job satisfaction in private and
public sector.

1.6 significance of the study

 The study enables the organizations to determine their employee’s job satisfaction and
may help to formulate more effective strategies that enhance employee’s performance.
 The study serves as reference for other researcher to undertake better and detailed
studies in the area.
 The study has also helps to provide a better service to the society that is derived from
satisfied employees of organizations.

1.7 Research design

1.7.1 Description of the population
This research was conducted in development bank of Ethiopia Hawassa branch and Abyssinia
bank Hawassa branch employees. The total population of development bank of Ethiopia was 21.
16 males and 5 females. The total population of Abyssinia bank is 23. 10 females and 13 males.
Since there is a total of 44 employees the researcher used census.

1.7.2 Sources of data

The researcher used both primary and secondary data sources. The primary sources of data was
employees of the organization through which questionnaire were used. The secondary data was
collected from reports, journals, and other published materials and internet.

1.7.3 Sample size determination

The researcher used census method since the total populations of both banks were 44.

1.7.4 Sampling techniques

The researcher used census technique since the total population is 44. So this reduced bias in
collecting the data.

1.7.5 Data collection method

The data was collected using two methods. The primary data was collected using questionnaire
and the secondary data was collected from reports, journals, and other published materials and
internet.

1.7.6 Data analysis method

The collected data was analyzed quantitatively by using descriptive technique.
 1.8 scope of the study
This research would try to provide some theoretical background about job satisfaction within the
organization. Due to limited time and finance the study was confine to development bank
Hawassa branch and Abyssinia bank Hawassa branch.
CHAPTER TWO
 REVIEW OF RELATED LITERATURES

2.1 Concepts and definitions of terminologies

Job satisfaction: is the difference between the amount of rewards workers receive and the
amount they believe they should receive.

Pay: amount and fairness or equity of salary.

Benefit: insurance, vacation leaves and other fringe benefits.
Co-workers: perceived competence and pleasantness of one`s colleagues.
Organizational commitment: a person`s emotional attachment to, identification, with and
involvement in a particular organization.
Turn over: the rate at which employees quite their jobs.
Absenteeism: not being at work during working time. (J.M Ivancevich; 1998)

2.2 Job satisfaction: A conceptual approach

The concept of job satisfaction has numerous definitions. Some of these definitions are listed as
follows. Job satisfaction is the difference between the amounts of rewards workers receives and
the amount they believe they should receive. Other perceived it as the reaction of the workers
against the role they plan in their work. Similarly job satisfaction defined as a general attitude of
the workers constituted by their approach towards the wages, working conditions, control, and
promotions related with the job, social relations in the work recognition of talent and some
similar variables, personal characteristics and group relations apart from the work life.

Job satisfaction is the total of the sentiments related with the job conducted. If the worker
perceives his or her values are realized within the job he/she improves positive attitudes towards
his/her job and acquire job satisfaction. It is also defined as an individual`s positive emotional
reaction to a particular job. It is an effective reaction to job that result from the persons
comparison of actual out comes with those that desired, anticipated, or deserved. Further more
job satisfaction is defined as the extent to which employees like their job or work, an attitude
based employee’s perceptions (negative or positive of their job or work environment). Most
efforts to explain job satisfaction have been dominated by the person. Environment fit paradigm.
Simply stated, the more a person’s work environment fulfills his /her needs, values or personal
characteristics, the greater the degree of job satisfaction. in light of this definitions job
satisfaction can be defined as the sum of all negative and positive aspects related to the
individuals salary his or her emotional working condition, the authority he/she has, the
autonomous usage of their authority the level of success he/she has maintain and the rewards
given due to this success, the social state maintained in relations with his/her job and
relationships with his/her colleagues and administrators. Individual elements do not result in job
satisfaction. Job satisfaction can only be mentioned if all these elements exist in a place in
harmony. (Ivancevich J.M; 1998)

2.3 A model of job satisfaction

What determines the level of satisfaction? The model in figure2.1 that combines discrepancy
theory and equity theory provides the best explanation. discrepancy theory states that the level of
job satisfaction is determined by the discrepancy between what people expect to receive and
what theory experience job satisfaction or dissatisfaction occur when the received condition is
noticeable less than the expected condition. Job satisfaction improves as the person’s
expectations are met or exceeded up to appoint. Equity theory states that equity occurs when the
person and comparison other have similar outcome/input ratios. This is relevant to job
satisfaction, because the amount we expect to receive is partly determined by our comparison
with others people.

Outcome inputs
of others Amount
expected
Job satisfaction
job dissatisfaction
Past experience Perceived in equity feeling
amount received

Figure2.1amodelofjobsatisfaction.
(Source Ms Shane, S.L. and Glinow, M.A, Organizational behavior page 206).

Equity theory also explains why job satisfaction does not always continue to increase as the
received condition exceeds expectations. As people receive much better out comes than they
expect, they typically develop feelings of guilt and a belief that organizational practices are
unfair to others. In summary, discrepancy and equity theories predict that as reality meet and
exceed expectations. Job satisfaction will increase however job satisfaction begins to decrease
when the perceived job situation is so much better than expected that the over reward creates a
feeling guilt or unfairness.

2.4 Job satisfaction and work behavior

A useful template to organize and understand the consequence of job dissatisfaction is the Exit-
Voice- Loyalty – Neglect (EVLN) model. As the name suggests the EVLN model identifies four
ways that employees respond to

 Exit: exit refers to leaving the situation, including searching for other employment,
actually leaving the organization or transferring to another work unit. Employees’
turnover is a well established outcome of job dissatisfaction particularly for employees
with better job opportunities elsewhere. Resent evidences also suggest that exit is
linked to specific “shocked events” such as a conflicted episode or an important
violations of your expectation. These smoke events produce more than just
dissatisfaction; they generate strong in motion that energize employees to think about
and search alternative employment.
 Voice: voice refers to any attempt to change, rather than escape from the dissatisfying
situation. Voice is often researched purely as a positive response, such as directly trying
to solve the problem with management or actually helping to improve the situation.
However, voice can also be more confrontational, such as by filing formal grievances. In
the extreme, some employees might engage in counterproductive behaviors to get
attention and force changes in the organization. Thus voice might be correctly viewed as
either constructive or distractive.
 Loyalty: loyalty has been described in different ways. The most widely held view is that
“suffering in silence” for the problem to work itself out or get resolved by others.
 Neglect: Neglect includes reducing work effort, paying less attention to equality, and
increasing absenteeism and lateness. It is generally considered a passive activity that has
negative consequences for the organizations. Research clearly establishes that
dissatisfied employees tend to have higher absenteeism; the relationships between
satisfaction and job performance is more complex, as well as discuss bellow. Which of
the four EVLN alternatives do employees use? It depends on the person situation, one
determining factor is the availability of alternative employment, with job prospects,
 employees are less likely to use the Exit option, employees who identify the with the
organization( organizational commitment) are also more likely to use voice rather than
Exit personality is another influence on the choice of the action, people with high
conscientiousness are less likely to engage in voice(as are people high extraversion and
low neuroticism), some experts suggest that employees differ in their EVLN behavior
depending on whether they have high or low collectivism. Finally, past experience
influence our choice of action. Employees who were unsuccessful with voice in the past
are more likely to engage in exit or neglect when experiencing job dissatisfaction in the
feature.

2.4.1 Job satisfaction and performance

One of the oldest beliefs is that “a happy worker is productive worker”. Is this statement true?
Organizational behavior scholars have wolfed on this question for the past centuries. In 1980s,
they concluded that job satisfaction has a weak or negligible association with task performance.
Now, the evidence suggests that the popular saying may be correct after all. Citing problems
with the earlier study a ground breaking analysis recently concluded that there is a moderate
relationship between job satisfaction and job performance. In other word happy workers are
more productive worker to some extent.

Along with job satisfaction-performance relationship corporate leaders are making strong
statements that happy employees make happy customers. “It just seems common sense to me that
if you start with happy, well motivated workers you’re much more likely to have happy
customers.” Explain virgin groups founder Richard Branson. Betty Gilliam, an executive at the
care group and India napolist based network of cardiologists and primary care physicians. “If our
employees are satisfied, our patients are satisfied.

Marketing experts in particular, have developed a model that relates employee’s satisfaction to
customer satisfaction and profitability

Organizational
practice
 - Less turn over Customer - Satisfied customer
With job and - consistent service perception of value - less customer turn over
company Employee - motivated staff - customer referrals
satisfaction

Higher revenue, growth

and profit

Figure 2.2 the employee customer-profit chain relationship.

(Source Steven L.Mc Shane and Mary Ann Glinow, organizational behavior; page 125)

There are two main reasons why job satisfaction has a positive effect on customer service. First
job satisfaction affects a person`s general mood. Employees who are in a good mood are more
likely to display friendliness and positive emotions customer in better mood. Second, satisfied
employees are less likely to quit their jobs and longer service employees have more experience
and better skills to serve clients. Lower turnover also gives customers the same employees to
serve them, so there is more consistent service. There is some evidence that customers built their
loyalty to specific employees, not to the organization, so keeping employees turnover low tends
to build customer loyalty.(Glinow)

2.4.2 Job satisfaction and organizational commitment

Organizational commitment is the strength of the individuals’ identification with an organization.
If employees are committed to an organization they are more likely to be more productive.
Organizational commitment is the degree to which employees believes in and accept
organizational goals and desire to remain with the organization. Research has revealed that job
satisfaction and organizational commitment tend to influence each other. What this findings
suggests is that people who are relatively satisfied with their job will somewhat more committed
to the organization and also the people who are relatively committed to the organization are more
likely to have greater job satisfaction.

There are two kinds of organizational commitment; affective and continuance.

Affective commitment – is an employee’s intention to remain in organization because of a

strong desire to do so. It consists of three factors.
  A belief in the goal and values of the organization.
 A willingness to put for the effort on behalf of the organization
 A desire to remain a member of the organization.

Affective commitment encompasses loyalty, but it is also a deep concern for the organization
welfare.

Continuance commitment – is an employee`s tendency to remain in an organization because

the person cannot afforded to leave. Sometimes employees believe that if they leave they will use
greater deal of their investment o in time, effort and benefit and those they cannot this
investment.

A logical extension of organization commitment focuses specifically on continuance

commitment factors which suggest that decisions to remain whit or leave an organization
ultimately are reflected in employees’ absenteeism and turnover statistics. Individuals who are as
satisfied with their job or who are not as committed to the organization are more likely to
withdraw from the organization, either occasionally through absenteeism or permanently through
turnover. Certain organizational conditions encourage commitment. Participation in decision
making and job security are two such conditions. Certain job characteristics also positively
affected commitment. These include autonomy, reasonability and interesting work.
Organizational commitment is related to lower area of absenteeism, higher quality of job and
increased productivity. Managers should concerned about affective commitment because
committed individuals expand more task related efforts and less likely than others to leave the
organization. Job satisfaction and organizational commitment are two important work attitudes
that managers can strive to improve among their employees. These two attitudes are strongly
related; so increasing job satisfaction is likely to increase commitment as well. (Robbins p; 2001)

2.4.4 Pay Benefit, and Job satisfaction

Compensation serves the function of allocating people among employees based the attractiveness
of the jobs and compensation packages employers must be reasonably competitive with several
types of compensation in order to hire and keep the people they need. There are two general
types of compensation; direct and indirect. With the direct types of compensation the employer
provides the actual tangible benefits. The most form of direct compensation is pay. Most
organizations have traditionally designed their compensation system around specific jobs. The
wage and salary structure of this system has typically been based on analysis and evaluations this
process determines a jobs worth and salary range. In recent years, however, a new alternative to
job-based approach has been developed; this new system pays employees for the skills and
knowledge they process, rather than for the job they do or a particular category. Increased skills
and job mastery give management greater flexibility. The higher pay and greater diversity of
work may mean higher level of satisfaction and, therefore, lower absenteeism and turnover. In
short employees should be paid more if they are work more. With indirect compensation,
employees receive the tangible value of the rewards without receiving the actual cash. A benefit
is an indirect reward, such as health, insurance, vacation pay or retirement pensions, given to an
employees or group of employees has a part of organizational membership. Benefit can
contribute to employees over all feeling towards the employer. If the employees are aware of the
benefit they receive (Henman, H.G; 1980)

2.4.5 Job satisfaction and OCB

It seems logical to assume that job satisfaction should be major determinant of an employee’s
organizational citizenship behavior. Satisfied would seem more likely to take positively about
the organization, help others, and go beyond the normal expectations in their job. Moreover,
satisfied employees might be more prone to go beyond the call of duty, because they want to
reciprocate there positive experiences. Consistent with this thinking, early discussion of OCB
assumed that it was closely linked with satisfaction. More recent evidence however, suggests that
satisfaction influencing OCB. There is a modest over all relationship between job satisfaction
and OCB. But, when fairness is controlled, satisfaction has unrelated to OCB. What does this
mean? Basically, job satisfaction comes down to conceptions of fair out comes, treatment, and
procedures. If you don’t feel that supervisor, the organizations procedure, or pay policies are fair,
your job satisfaction is likely to suffer significantly. However, when you perceive organizational
processes and out comes to be fair, trust is developed. And when you trust your employer you
are more willing to voluntarily engage in behaviors that go beyond your formal job requirements.
(Robbins, S.P; 2001)

2.5. Results of Employee Dissatisfaction

When employees are dissatisfied, they may avoid their work situations in the same ways. The
response to dissatisfaction is called withdrawal behavior. At first a dissatisfied employee may
seek to change the situation. Say, by complaining to a manager. If this doesn’t work, the
employee may physically withdraw from the job. Employees who cannot physically remove
themselves to alleviate their distress may withdraw psychologically.
2.5.1 Physical withdrawal
Two basic kinds of physical withdrawal behaviors are absenteeism and turnover.
Absenteeism
In everyday life certain contingencies require a little extra effort on the part of workers to come
to work. Although a number of definition of absenteeism are available in literature. Almost all
of them indicate absenteeism as absence from work when one is expected to work. Absence
from work could be attributed either the inability or the unwillingness on the part of employees
to work. Any absence with prior notice and /or approval is, of course not include in this
definition.
Thus, if a worker takes his earned leave or casual leave with prior approval, it is not counted as
absenteeism. However, a person being absent due to un foreseen sickness or injury counted as
absence.
Employees who are dissatisfied with various aspects of their job have higher level of
absenteeism. Over all job dissatisfaction as well as dissatisfaction with co-workers, pay, and
supervision also lead to higher absenteeism. Several writers have commented that employees
tend to avoid dissatisfaction work environment by taking several one- or two day absence,
resulting in higher frequency count with relatively few days actually lost.
Turnover
As might be expected, higher job satisfaction is associated with lower employee turnover,
which is the proportion of employees leaving an organization. More satisfied employees are
likely to stay with their employer longer. Dissatisfaction with certain aspects of job and /or a
lack of commitment to the employing organization cause individuals to search for alternative
positions when making a turnover decision an employee weighs the reward and cost
associated with the current job, measure his/her material and psychological investments in this
position, and asses the quality of available alternatives.
Job satisfaction would induce the employee to stay and includes factors such as recognition,
opportunities for growth, achievement and other factors associated with the aspects of
motivation of the individuals.

2.5.2 Psychological withdrawal

Even when employees are at work, their mind may be elsewhere. This way of detaching from
work setting is called psychological withdrawal. An employee who is dissatisfied with particular
job may consider the job an unimportant part of his/her life. Such an employee is not likely to
try hard to try improving important skills for doing the job. An employee who is dissatisfied with
the organization may demonstrate little commitment to the organization and is likely to quit as
soon as opportunities arise.
The major consequence of psychological withdrawal is the employees are doing less than their
best. Also their negative attitude may create ill among co-workers and customers; such
problems are especially serious because modern organizations face so much competition from
local foreign source. An organization when employees have psychologically withdrawn cannot
compute with an organization whose employees are enthusiastic and commuted to its success.

Generally speaking the following may be related as the organizational rewards that will
contribute to job satisfaction
1. Pay – money is important to all employees although the intensity of this incentive may
vary from one person to another. Money, in addition to satisfying the basic wants,
symbolizes status prestige and achievement.
2. Job security – employees cure feel economically secure. In return for his /her
contribution to the organization, the employee expects that the organization will not
discard him/her without some strong reason. As economic recession (un less extremely
sever) is not considered by some organizations as a reason to fire employees. Other will
discard employees at the drop of a hat. Naturally enough, in time of economic
recession, the employee desire for security becomes much stronger
3. Good physical environment – Many companies and unions place considerable
emphasis on this item. Work conditions and the physical environment, in which one
works, whether it is the factory or an office, need to be pleasant, encouraging and safe.
A good physical environment has an adverse effect on job satisfaction.
4. Promotion – in return for good job performance, an employee usually expects to make
an upward movement within the organization. It gives the employee a sense of
achievement and restores his or her faith in the `system`. Therefore the existence of fair
opportunities for promotion within the organization can add greatly to employee job
satisfaction.
5. Recognition for a job well done – it is not unusual possible for an organization to
promote an employee every time he/she does a good job. However, it is always
possible to give some recognition for his/her performance. Efficiency performance
appraisals programs can play a very useful role here because provide the employees
with feedback on their performance. Good work should be followed by praise, publicity
within the company, and merit rise. Recognition of a job well done boots an employee’s
ego-and raises his or her morale.
6. Good work group – it is a positive feature from the employee’s stand point, to be a
member of cohesive work group. It is the kind of group that is headed by a supportive
team lead and composed of group member who willingly cooperate with each other.
The group members with emotional and moral support when they need it. There is a
mutual-give-take relationship. This kind of cohesive work group can bring about a high
degree of job satisfaction and a greatly enhanced self-image
7. Good supervision- if the supervisory is more than just a boss- in other words acts as a
team leader, then he or she is able to create a climate in which employees can perform
well. The leader’s role is to provide the employees with the guidance and show them
the path to desired goals-both personal and organizational.
8. Good management practice- the managerial approach procedure rules and other
management functions vary considerably from one organization to other. Good
management practices include open communication, effective suggestion schemes
well- designed grievance procedure and employee participation. Employees welcome
such practices, and well often seek out such organization.
9. Meaning full work- as organization now higher better –educated employees, it is
becoming increasingly important to provide these people with meaning full work.
People are “turned on” by their work only if it is interesting and challenging. Faced, in
many cases, with the prospect of doing a personally meaningless, repetitive
demoralizing task for the rest of one’s life, a person can only attempt to conform to
robot-like existence. Often a person accept at a lower pay, if the work is more
personally satisfying
 CHAPTER THREE

Data analysis, presentation and interpretation

This chapter deals with the analysis, presentation and interpretation of data obtained from the
questionnaires.44 questionnaires were distributed and all was collected.

Table 3.1 General information of employees

No Description Banks Total

Abyssinia DBE

No % No % No %

1 Sex Male 13 57 16 76 29 66

Female 10 43 5 24 15 34

Total 23 100 21 100 44 100

2 Educational 10 complete - - - - - -
qualification Diploma 10 43 8 38 18 41

BA Degree 9 39 10 48 19 43

Master 4 18 3 14 7 16

Above BA - - - - - -

Total 23 100 21 100 44 100

3 Length of Less than 1 years - - 2 10 2 5

service 1-5 years 15 65 6 29 21 48

5-10 years 5 22 10 48 15 34

Above 10 years 3 13 3 13 6 13

Total 23 100 21 100 44 100

Source: own survey 2006 E.C

As shown in the table above out of the total employees of the organizations 10 of employees of
Abyssinia and 5 employees of development bank of Ethiopia are females and 13 employees of
Abyssinia and 16 employees of development bank of Ethiopia are males.
 Concerning the educational qualification out of the total employees of the organizations 10 of
Abyssinia 8 employees of DBE are Diploma holders, 9 employees of Abyssinia and 10
employees of DBE are Degree holders, 4 employees of Abyssinia, and 3 employees of DBE are
master holders. Regarding length of employee service in the organization 2 employees of DBE
have spent less than 1 year. 15 of Abyssinia and 6 of DBE employees have spent from 1-5 years
with their respective organization. 5 employees of Abyssinia and 10 employees of DBE have
spent from 5-10 years with their respective organization.3 employees of Abyssinia and 3
employee of DBE have spent above 10 years with their respective organization.

Table 3.2 employee satisfaction with pay, physical working condition and supervision.

No Questions Private bank (Abyssinia) Total

SA AG NU DS SDS

Fr % Fr % Fr % Fr % Fr %

1 The salary you paid 15 65 2 9 1 4 2 9 3 13 100

is fair for the job you
do

2 The physical 17 74 2 9 - - 1 4 3 13 100

working condition is
comfortable

3 The immediate 15 65 6 26 - - 2 9 - - 100

supervision is helpful
and supportive

Source: own survey 2006 E.C

No Questions Public bank(DBE) Total

SA AG NU DS SDS

Fr % Fr % Fr % Fr % Fr %
1 The salary you 8 38 5 24 1 5 7 33 100
paid is fair for
- -
the job you do

2 The physical 17 81 3 14 1 5 - - - - 100

working
condition is
comfortable

3 The immediate 4 19 13 62 1 5 3 14 - - 100

supervision is
helpful and
supportive

Source: own survey 2006 E.C

Employees should have to get fair and equitable payment for their effort they put on work,
employees need a safe and adequately protected environment for their work place and need a
leader who show friendship, mutual trust, and respect and who take personal interests in their
supervision. As we seen in the above table 65% of Abyssinia bank strongly agree that the salary
paid is four compared to 38% in DBE.

Regarding with the safety of the physical working condition, employees of DBE 81% strongly
agree of safe working condition compared to 74% of Abyssinia. As it can be observed from the
table 65% of employees of Abyssinia strongly agrees as there is immediate supervision
compared to 19% of DBE.

Table 3.3 job satisfaction of employees with training, working condition and promotion

No Questions Private bank (Abyssinia) Total

SA AG NU DS SDS

Fr % Fr % Fr % Fr % Fr %
 1 The job promotion on this 17 74 1 4.3 - - 1 4.3 4 17.4 100
organization is based on
performance of employee

2 The training you receive helps 12 52 6 26 - - 2 9 3 13 100

you to improve your
performance

3 The working condition is 14 61 4 17 - - 2 9 3 13 100

satisfactory in improving your
performance

Source: own survey 2006 E.C

N Questions Public bank (DBE) Total

o
SA AG NU DS SDS

Fr % Fr % Fr % Fr % Fr %

1 The job promotion on this 6 28.6 9 42.9 - - 2 9.5 4 18 100

organization is based on
performance of employee

2 The training you received helps you 8 38 11 53 - - - - 2 9 100

to improve you performance

3 The working condition is satisfactory 15 71.4 4 19.1 - - - - 2 9.5 100

in improving your performance

Source: own survey 2006 E.C

As we see form the above table 74% employee of Abyssinia bank strongly agrees as promotion
on the organization is based on performance of employee compared to 28.6% of DBE.

In attempting to measure whether the training help to improve employee performance52% of

Abyssinia bank strongly agree compared to 38% of DBE employees.

In working condition in improving performance of employee 71.4% of employee DBE strongly

agree compared to 61% employee of Abyssinia. From the figure we can see that DBE employees
strongly agree as the working condition is helpful to improve their performance.
 Table 3.4 employees job satisfaction with level of stress

No Questions Private bank (Abyssinia) Total

SA AG NU DS SDS

Fr % Fr % Fr % Fr % Fr %

1 The bank is trying to overcome 17 74 1 4.3 - - 3 13 2 9 100

the problem of job satisfaction

2 Have you enough authority to 14 61 4 17 - - 2 9 3 13 100

accomplish the work that is
expected from you

3 There is no obligation to 17 74 3 13 - - 3 13 - - 100

accomplish the work load of
others

4 The organization uses faire 17 74 2 9 1 4 3 13 - - 100

assignment of working hour

Source: own survey 2006 E.C

No Questions Public bank (DBE) Total

SA AG NU DS SDS

Fr % Fr % Fr % Fr % Fr %

1 The bank is trying to overcome 4 19 13 62 - - 4 19 - - 100

the problem of job satisfaction

2 Have you enough authority to 2 9 19 91 - - - - - - 100

accomplish the work that is
expected from you

3 There is no obligation to 11 57 7 34 4 19 2 9 - - 100

 accomplish the work load of other

4 The organization uses faire 13 62 8 38 - - - - - - 100

assignment of working hour

Source: own survey 2006 E.C

As it can be seen from the table on the question asked whether the bank is trying to overcome the
problem of job satisfaction 74% of Abyssinia bank employee strongly agrees as the bank is
trying to overcome the problem compared to 19% employee of DBE.

With regard to authority to accomplish work that is expected from employee 61% employee of
Abyssinia bank strongly agree as there is authority compared to 9% of DBE.

As it can be seen from the table 74% employee of Abyssinia strongly agree as there is no
obligation to accomplish work load of others.

With regard to Assignment of working hour 74% employee of Abyssinia strongly agree as there
is faire assignment working hour compared to 62% of DBE.

Table 3.5 job satisfaction with work performance of co-workers and promotion system

No Questions Private bank (Abyssinia) Total

SA AG NU DS SDS

Fr % Fr % Fr % Fr % Fr %

1 I am satisfied with the work 14 61 3 13 1 4.3 1 4.3 4 17. 100

performance with the employees 4
with whom I am working
2 Compared to similar organization 10 43. 7 39 - - 1 4.3 3 13 100
the promotion system is 7
satisfactory

Source: own survey 2006 E.C

No Questions Public bank (DBE) Total

SA AG NU DS SDS

Fr % Fr % Fr % Fr % Fr %

1 I am satisfied with the work 2 9.6 15 71.4 - - 4 19 - - 100

performance with the employees
with whom I am working

2 Compared to similar organization 8 38 7 33 - - - - 6 29 100

the promotion system is
satisfactory

Source: own survey 2006 E.C

With regard to co-workers performance 61% of Abyssinia strongly agree as there is good
working performance compared to 9.6% of DBE. The table show that 43.7% employee of
Abyssinia strongly agrees as the promotion system is satisfactory compared to 38% of DBE.
This shows those DBE employees are less satisfactory with promotion system.

Table 3.6 employees satisfaction with job security and recognition of job well done.

No Questions Private bank (Abyssinia) Public bank (DBE)

Yes No Total Yes No Total

Fr % Fr % Fr % Fr %

1 Is there job security provided to 21 91 2 9 100 21 100 - - 100

you?

2 Is there recognition of job well 22 95. 1 4.3 100 21 100 - - 100

done? 7

Source: own survey 2006 E.C

 The above table shows that employees of DBE get 100% job security while 9% employees of
Abyssinia are not getting job security. This indicates that the highest satisfaction is recorded in
DBE employees as compared to Abyssinia on the question asked whether there is recognition of
job well done, employees of DBE are highly satisfied than employees of Abyssinia (100% &
95.7% in DBE and Abyssinia respectively).

Table 3.7 Job satisfaction with benefit package

N Questions Private bank (Abyssinia) Public bank (DBE)

o Yes No Total Yes No Total

Fr % Fr % Fr % Fr %

1 Is there a benefit package (like 23 100 - - 100 21 100 - - 100

health insurance, sick leave etc)
provided to the employees?

Source: own survey 2006 E.C

Benefit can contribute to employees or the overall good feeling towards the employer or the
organization if they are aware of the benefit they receive. As it can be seen from the above table
employees of both Abyssinia and DBE are satisfied with benefit package provided to them.

Table 3.8 employee’s satisfaction with their supervision, work and flow of communication

N Questions Private bank (Abyssinia) Public bank (DBE)

o Yes No Total Yes No Total

Fr % Fr % Fr % Fr %

1 Are you satisfied with the 21 91 2 9 100 17 81 4 19 100

communication you receive from
you your supervision about your
performance

2 Is the job gives you the 20 87 3 13 100 15 71 6 29 100

opportunity to learn new skill

3 Do you think the immediate 21 91 2 9 100 17 81 4 19 100

supervision is helpful to increase
 your performance

Source: own survey 2006 E.C

As it can be seen from the above table, employees of Abyssinia are more satisfied with the
communication they receive from their supervisors than that of DBE employees. (91% and 81%
in Abyssinia and DBE respectively).

In assessing the level of employees job satisfaction with their work whether their job provides
them the opportunity to learn new skills, employees of Abyssinia express highest satisfaction
87% compared to employees of DBE 71%.

As it can be observed from the above table, the level of employee satisfaction with regard to the
supervision it is higher in Abyssinia 91% compared to 81% of DBE.

Table 3.9 Job satisfactions with organizational concern

No Questions Private bank (Abyssinia) Public bank (DBE)

Yes No Total Yes No Total

Fr % Fr % Fr % Fr %

1 Are you satisfied with the present 21 91 2 9 100 21 100 - - 100

security system of the
organization

2 Is the management of the 19 83 4 17 100 15 71 6 29 100

organization devoted to create job
satisfactions

3 Is the organization giving you the 20 87 3 13 100 13 62 8 38 100

opportunity to improve your
professional knowledge and job
 skill

Source: own survey 2006 E.C

As it can be seen in the above table 100% employees of DBE are satisfied with the present
security system of their organization while 9% employee of Abyssinia are dissatisfied with the
present security system of the organization. Thus we can conclude that employees of Abyssinia
are less satisfied as compared to DBE.

83% of employees of Abyssinia and 71% are satisfied with effort the management of the
organization to create job satisfaction. This indicates the effort of the management to create job
satisfaction for employees in Abyssinia is higher compared to DBE.

Taking in to consideration the score recorded from the table with regard to the organizations
concern for employees in providing an opportunity to learn new professional knowledge and
skills employees of Abyssinia show superior satisfactions 87% compared to 62%of DBE

Table 3.10 Employee satisfaction with promotion and co-operation among work group and
job satisfaction with organization concern.

N Questions Private bank (Abyssinia)

o SA AG NU DS SDS Total

Fr % Fr % Fr % Fr % Fr %

1 There is a chance of promotion 1 4.3 14 61 - - 3 13 5 21.7 100

2 There is good work co-operation 3 13 15 65 - - 2 9 3 13 100

among employees

3 The organization helps you to - - 19 82 - - 2 9 2 9 100

improve yourselves

Source: own survey 2006 E.C

No Questions Public bank (Abyssinia)

SA AG NU DS SDS Total
 Fr % Fr % Fr % Fr % Fr %

1 There is a chance of promotion 4 19 15 71 - - - - 2 10 100

2 There is good work co-operation 15 71 2 10 - - 4 19 - - 100

among employees

3 The organization helps you to 6 29 10 48 - - 4 19 1 4 100

improve yourselves

Source: own survey 2006 E.C

Employee’s attitude towards the job increase if the organization has fair and performance based
job promotion scheme. A higher level job satisfaction could be encountered if employees’ co-
workers are friendly and helpful.

With regard to job promotion employees of DBE agree 71% as there is chance of promotion
compared to 61% of Abyssinia 71% of DBE strongly agree with there is cooperation among
employees compared to 13% of Abyssinia. Organization should put much effort to help
employees to improve themselves. With regard to effort of the organization to help employees to
improve themselves, employees of Abyssinia agree than that of DBE (82% and 48%)
respectively.

Table 3.11 Job satisfaction and supervision

No Questions Private bank (Abyssinia)

Total

In good Very good Initiative Not enough

manner supportive for work supportive

Fr % Fr % Fr % Fr %

1 The kind of supervision that you 9 39 3 13 10 44 1 4 100

get is

Source: own survey 2006 E.C

No Questions Public bank (DBE)

 Total

In good Very good Initiative Not enough

manner supportive for work supportive

Fr % Fr % Fr % Fr %

1 The kind of supervision that you 11 52 6 29 4 19 - - 100

get is

Source: own survey 2006 E.C

As it can be seen from the above table the kind of supervision they get is in good manner (39%),
very good supportive (13%), initiative for work (44%), and (4%) of employees of Abyssinia are
not enough supportive while employees of DBE in good manner (52%), very good supportive
(29%), initiative for work (19) and (0%) not enough supportive. Thus the combined result of the
above table shows that all respondents of DBE said that there is good environment concerning
the supervision condition but 4% employee of Abyssinia said there is no enough supportive
supervision in the organization.

Table 3.12 Job satisfaction with benefit package

No Questions Private bank (Abyssinia) Public bank (DBE)

Very Satisfact Dissatis Total Very Satisfac Dissati Total

satisfact ory faction satisfac tory sfactio
ory tory n

Fr % Fr % Fr % Fr % Fr % Fr %

1 Compared to similar - - 15 65 8 35 100 8 38 6 28 7 34 100

organization the benefit
package you receives is

Source: own survey 2006 E.C

Even though both Abyssinia and DBE are provided a benefit package as shown in the table in
comparison with other similar organization 66% employees of DBE and 65% employees of
Abyssinia are satisfied with the package getting from the organization. This shows that the
highest satisfaction is recorded in DBE as compared to Abyssinia.
 CHAPTER FOUR

Conclusions and recommendations

4.1 Conclusions
As we have seen from the literature review it is obvious that job satisfaction has an important
contribution factor to the success of an organization. Therefore, organization should strive to
create employees` satisfaction in order to be more competent and productive.

As it is shown so far from data analysis, employees’ satisfaction can be determined by many
factors such as pay, job security, physical working condition, promotion, work recognition, work
co-operation and supervision.

Employees of DBE show greater satisfaction with job security, promotion, work co-operation,
training opportunity, recognition of job well done and supervision. On the other hand employees
of Abyssinia are shows low level of satisfaction with the above mentioned dimensions.

In contrary employees of Abyssinia are highly satisfied than that of DBE in areas like pay,
performance based promotion, communication flow, benefit package and supervision while
employees of DBE are less satisfied with the above mentioned dimensions.
Even though employees of DBE are highly satisfied with promotion and supervision, the
promotion strategy in the organization is not based on the performance of the employees and the
supervision is not helpful to increase the performance of employees.

The management of Abyssinia makes high effort to create employee satisfaction and highly
helps employees to improve themselves while the management of DBE makes less effort to
create job satisfaction and put less effort in helping employees to improve them.

4.2 Recommendations
Taking the results of the study, some suggestions should be forwarded so that organizations can
examine ways in which they can build on their strengths in which higher degree of employee job
satisfaction are observed and work harder on their areas of weakness where lower degree of
satisfaction are observed.

The employees feel that there is unfair and inequitable pay in DBE and Abyssinia is
ineffective on their training. Therefore to avoid this perception the companies should
design better pay and training development program so that employee`s level of
satisfaction could be enhanced.
Employees want supervisory who are friendly and helpful and obviously, respond to
managers that they can trust organization should make sure that managers are well
trained because; leadership combines attitude and behavior that can be learned.
Employees took the existence of stress in the work setting as a major source of
dissatisfaction. Organizations are recommended to avoid negative stress by distributing
evenly with in the work team.
Companies should make the working environment more comfortable to employees so
that workers are able to perform their job without risk of injury or illness.
Companies should avoid friendship benefit and have to use performance appraisal way
of promotion.
 The management part of the organization should be towards addressing the employees
need with regard to the working condition. It should make the workers environment
conducting enough for the work. This involves keeping the facility and equipment up to
date.
The performance appraisal system of the organizations must be work centered. It
should focus on work relation than reflecting personal or supervisor`s relationship with
subordinates. It should be more of objective (measurable) points that needed to be
evaluated.

Reference
1. Ivancevich, J.M (1998). Human resource management 2nd edition.
2. Robins, S.P. NacyLogton, (2001). Organizational behavior 2nd edition, Canadian.
3. Hanman, H.G (1998). Human resource management.
4. MS Shane, S.L. and Glinow, A.M (1997). Organizational behavior.
5. Davis.K and Nowstrom, J.W (1998) Organizational behavior.7 th edition. New York:
publishing Company.
6. (http://WWW.etd.uwc.ac.za).
7. WWW.emeraldight .com).
8. S. Arunima and P. Pooja. 2009. Asian academy of Management journal. Vol. 14, NO. 2,
65-78.
9. Spector,(1997)

10. www.forbes.com
Appendix
 Hawassa University

College Of Business and Economics

Department of Management
Questionnaire

Questionnaire to be filled by the respondents for partial fulfillment of BA degree in management.

This questionnaire is prepared for employees of development bank of Ethiopia hawassa branch
and Abyssinia bank Hawassa branch to collect relevant information for the purpose of research
to be conducted on “comparative study of employee job satisfaction on public and private
organization”. The information you provide will be confidential and the researcher will thanks in
advance for you kindly cooperation. Use check mark (√) in box provided for choice when
necessary.

Please do not write your name

Part I personnel information

1. Sex Male Female

2. Age 20-30 30-40
40-50 50-60 above 60
3. Educational level A. 10 complete
 B. Diploma
C. BA Degree
D. Master & above
4. Work Experience
 Less than 1 years
 1-5 years
 5-10 years
 Above 10 years

Part II For the following questionnaire show you agreement in the following items by circle the
number

1. Strongly agree 2. Agree 3. Neutral 4. Disagree 5. Strongly disagree

1. Questions related with employees satisfaction with pay, physical working conditions and
supervision.

No
1 The salary you paid is fair for the job 1 2 3 4 5

you do
2 The physical working condition is 2 2 3 4 5

comfortable
3 The immediate supervision is helpful 1 2 3 4 5

and supportive

2. Questions related with job satisfaction of employees with training condition and
promotion.

No
1 The job promotion on this organization is 1 2 3 4 5

based on performance and employee

2 The training you receive helps you to 2 2 3 4 5

improve your performance

3 The working condition satisfactory in 1 2 3 4 5

improving your performance

3. Questions related with employees job satisfaction with level of stress

No
1 The bank trying to overcome the 1 2 3 4 5

problem of job satisfaction

2 Have you enough authority to 1 2 3 4 5

accomplish the work that is expected

from you
3 There is no obligation to accomplish the 1 2 3 4 5

work load of other

4 The organization uses faire assignment 1 2 3 4 5

of working hour

4. Questions related with job satisfaction with performance of co-workers promotion system

No
1 Iam satisfied with the work performance with the 1 2 3 4 5

employees with whom Iam working

2 Compared to similar organization the promotion 1 2 3 4 5

system is satisfactory

Part III Give your answer by saying Yes or No (√)

1. Is there job security provided to you?
Yes No
2. Is there recognition of job well done?
 Yes No
3. Are you satisfied with the communication you receive from your supervision about
your performance?
Yes No
4. Is the job gives you the opportunity to learn new skill?
Yes No

5. Do you think the immediate supervision is helpful to increase your performance?

Yes No

6. Is there a benefit package (like health insurance, sick leaves ETC) provided to
employee?

Yes No

7. Are you satisfied with the present security system of the organization?
Yes No
8. Is the management of the organization devoted to create job satisfaction?
Yes No
9. Is the organization giving you the opportunity to improve your professional knowledge
and job skill?
Yes No

Iv. For the following questionnaires show your agreement for the following items by circle
the number.

1. Strongly agree 2. Agree 3. Neutral 4. Disagree 5. Strongly disagree

1. Questions related with employee satisfaction with promotion and co-operation among work
group and job satisfaction with organization concern.

N
o
1 There is a chance of promotion 1 2 3 4 5
2 There is good work co-operation among 1 2 3 4 5
 employees
3 The organization helps you to improve 1 2 3 4 5
yourselves

2. Questions related with job satisfaction and supervision and job satisfaction with benefit
package put ( √)

1. The kind of supervision that you get on your job is in good manner?

In good manner
Very good supportive
Initiative for work
Not enough supportive

2. Compared to similar organization the benefit package you receive is

Very satisfactory
Satisfactory
Dissatisfaction