COMAPARATIVE STUDY OF EMPLOYEE JOB SATISFACTION IN

PRIVATE AND PUBLIC ORGANIZATION IN CASE OF ABYSSINIA AND

DEVELOPMENT BANK OF ETHIOPIA BANKS (IN CASE OF HOSSANA
BRANCH)

WACHEMO UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS DEPARTMENT OF

PUBLIC ADMINSTRATION AND DEVELOPMENT MANAGEMENT

A RESEARCH PAPER SUBMITTED TO MANAGEMENT PROGRAM

FOR THE PARTIAL FULFILLMENT OF REQUIRMENT OF BA
DEGREE IN MANAGEMENT

BY: SAMUEL ZELEKE ID-0006741

ADVISOR: ABRIHAM.G (MBA)

MARCH 2013 E.C

HOSSANA ETHIOPIA
 Acronyms
DBE: Development bank of Ethiopia
Table of Contents
Acronyms.....................................................................................................................................2
CHAPTER ONE..............................................................................................................................5
Introduction......................................................................................................................................5
1.1 Background of the study........................................................................................................5
1.2 Statement of the problem.......................................................................................................6
1.3 Objective of the study............................................................................................................6
1.3.1 General objectives..............................................................................................................6
1.3.2 Specific objectives..............................................................................................................6
1.4. Research Questions...............................................................................................................7
1.5 Significance of the study.......................................................................................................7
1.6 Scope of the study..................................................................................................................7
1.7 Organization of the paper......................................................................................................7
CHAPTER TWO.............................................................................................................................8
REVIEW OF RELATED LITERATURES.....................................................................................8
2.1 Concepts and definitions of terminologies............................................................................8
2.2 Job satisfaction: A conceptual approach................................................................................8
2.3 A model of job satisfaction....................................................................................................9
2.4 Job satisfaction and work behavior......................................................................................10
2.4.1 Job satisfaction and performance..................................................................................11
2.4.2 Job satisfaction and organizational commitment..........................................................12
2.4.4 Pay Benefit, and Job satisfaction..................................................................................13
2.4.5 Job satisfaction and OCB..............................................................................................14
2.5. Results of Employee Dissatisfaction..................................................................................14
2.5.1 Physical withdrawal......................................................................................................15
2.5.2 Psychological withdrawal.............................................................................................15
2.6. Conceptual Framework of the Study..................................................................................18
CHAPTER THREE.......................................................................................................................19
RESEARCH METHODOLOGY..................................................................................................19
3.1 Research design...................................................................................................................19
3.2 Description of the study Area..............................................................................................19
3.3 Target population.................................................................................................................19
3.4. Sample size.....................................................................................................................19
 3.5. Sampling techniques.......................................................................................................20
3.6 Sources of data.....................................................................................................................20
3.7 Data collection techniques...................................................................................................20
3.8 Methods of data analysis and interpretation........................................................................20
3.9 Ethical Consideration.........................................................................................................21
4. Reference...................................................................................................................................22
5.APPENDICES............................................................................................................................23
5.1. Budget Breakdown.............................................................................................................23
5.2. Time schedule.....................................................................................................................23
 CHAPTER ONE

Introduction
1.1 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 represents 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 will beconducted 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 will be try to assess the gap between the bank sectors.

1.2 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 will be 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).

1.3 Objective of the study

1.3.1 General objectives

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

1.3.2 Specific objectives

 To identify the relationship between employees job satisfaction and job
performance in public and private bank.
 To identify what measures will be 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.
 1.4. Research Questions
This study is intended to answer the following question: -

 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 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.

1.6 Scope of the study

This research will be try to provide some theoretical background about job satisfaction within the
organization. Due to limited time and finance the study will be confine to development bank
Hossana branch and Abyssinia bank Hossana branch.

1.7 Organization of the paper

This paper will provide three chapters. The first chapter is introduction that covers the
background of the study, the statement of the problem, the objective of the study, the
significance of study, scope, limitation of the study and organization of the paper.
The second chapter deals with literatures that are related of the topic of the study.
The third chapter contains methodology part.
All these chapters are emphasized about the comparative study of employees job satisfaction in
privates and public organization in case of Abyssinia bank and development bank of Ethiopia,
Hossana 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 will be 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 will be 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 will be 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
 2.6. Conceptual Framework of the Study
In this study, the researcher assesses employee resourcing practices in Abay bank through
specific variables that would explain the research topic in detail and cater for good analysis.
These variables are selected based on the research questions and literature review. A factor
influencing ER practices and their effect on the bank’s ER practice is examined; the alignment
between the bank’s business strategy and ER practice is evaluated. Similarly, the existence and
formulation of ER strategy required to carry out the bank’s ER practice and its linkage with the
business strategy is examined. The components of ER (HRP, Talent management, Recruitment
& Selection, Competency Framework, Employee Engagement and Retention) as defined in the
literature are also used to assess Abay bank’s ER practice. Furthermore, the integration between
the bank’s ER practice and specific HRM areas (L&D, Performance Management and Reward
Management) that are closely related to ER and identified in the research question and literature
is assessed. The conceptual framework of the study is presented in figure 2.3 below.

Figure 2.1: Conceptual Framework of the Study (Developed by the author)

 CHAPTER THREE

RESEARCH METHODOLOGY
3.1 Research design

Research design is a plan, structure and strategies of investigation so conceived as to obtain

answer to research questions or problems (Thayer 2004).
This study will be used descriptive research design. It refers to set of method and procedures that
describes administrating variables (Creswell J.2006). Descriptive research use a scientific
method and procedures to collect raw data and create data structures that describe the existing
characteristics (Kothari 2005) Descriptive research design is appropriate when the research
objectives include the determination of the degree to which administrating variables are related
to actual administrating phenomena (Donald’s and Hawkes, 2005). Research approach mainly
use quantitative and include some qualitative approach using interview. We use qualitative
approach since it use to gain an understanding of underlying reasons, opinions, motivations and
it provides insights in to the problem or helps to develop ideas or hypothesis for potential
qualitative research and when we use quantitative approach it involves using scientific or
mathematical data to understand a problems such as analyzing surveys to predict customer
perception.

3.2 Description of the study Area

Hossana is one of the Ethiopian city's and the area of the researcher conducted the city is located
on the south of Hossana lake on the great rift valley the city of Hossana is far from central city of
the Ethiopia /from our capital city A.A 275 km in south and 130 km east of Wolayita Sodo 75km
from north Dilla is capital of South nation nationality people and regional state and Hossana is
situated on 1708 meter above sea level. Hossana located at latitude and longitude of 7 3’N 38
28’E /7.05’ N 38.467‘E .it occurs the climatic conditions the populations of the city will be
totally 371826 according to Central statistical agency (2007E,C)from that all populations 191352
are males and 180474 are females (CSA 2010 E.C).

3.3 Target population

This research will be conducted in development bank of Ethiopia Hossana branch and
Abyssinia bank Hossana branch employees. The total population of development bank of Ethiopia
will be 21. 16 males and 5 females. The total population of Abyssinia bank is 10000. 3000
females and 7000 males. Since there is a total of 44 employees the researcher used census.

3.4. Sample size

In order to make the feasible and scientific of the research determine sample size for its
appropriateness and simplicity to conduct the questioner.
The total study population is 10,000(sum of manager, employees of company and customers of
the bank).so the samples sizes will be determined by using the following formula: Cochran,
W.G, (1997).Sampling theory, Third edition

N
n= Where: N= total population
1+ N (e)2

n= sampling size

e= margin of error (e=0.1=10%)

Therefore,

10000
n= =100
1+ 10000(0.1)2

Using the calculated sample size the researcher will be be used convenience sampling to select
100 samples for distributing the questionnaire, and interviewed bank manager of the bank and
general manager of the company total 100 sample sizes in order to get relevant information for
the study of assessing effective marketing strategies for the increment of profitability.

3.5. Sampling techniques

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

3.6 Sources of data

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

3.7 Data collection techniques

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

3.8 Methods of data analysis and interpretation

The collected data will be analyzed quantitatively by using descriptive technique.

This chapter deals with the analysis, presentation and interpretation of data obtained from the
questionnaires.44 questionnaires were distributed and all will be collected.
 3.9 Ethical Consideration
The researcher was free from unethical behavioral means that the aggressiveness,
hostility side so as to getting respondents consent and allowing them to leave any time
they wants .And also, the researcher was politely ask the respondents and give high
degree of politeness for target study to conduct and information to be delivered to the
subject of study only those but also the information obtained from respondents in the
study be kept confidentially.
 4. 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.7th 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
 5.APPENDICES
5.1. Budget Breakdown

No Item Unit Quantity Unit price Total price

1 Paper Packet 1 160 1*160=160.00

2 Pen - 2 10 2*10=20.00

3 Flash 8GB 1 250 1*250=250.00

4 Transport - 2 300 2*300=600.00

5 Print 40 Page 3 2 3*80=240.00

6 Miscellaneou - 500 500.00

s
Expense

Total 1770.00

Table 1: The budget breakdown for the study

 5.2. Time schedule
Jan Feb Mar
MA APR MA JUNE JULY
R IL Y
T i t l e s e l e c t i o n

Proposal development and submissio n

Submission of the first draft of proposal and correction by advisor

P r o p o s a l d e f e n c e

Interpretation and analysis of dat a

Submission of the first draft of proposal to advisor

Final proposal submissio n

F i n a l p r o p o s a l d e f e n c e