ADMAS UNIVERSITY

FACULTY OF BUSINESS
DEPARTEMENT OF MARKETING MANAGMENT

Title: The Effect of Employee Commitment on Organizational Performance in

The Case of Yeka Sub City Administration in Addis Ababa
A research project submitted in partial fulfilment of requirement For the
degree of bachelor of art in Business management
PREPARED BY: ID NO:

………………………

…………………………

……………………….

…………………………

Advisor: Mr.

June 2022

Addis Ababa

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 DECLARATION

We declare that this research title as “The Effect of Employee Commitment on Organizational
Performance in The Case of Yeka Sub City Administration in Addis Ababa” is our own effort
and study and that all source of material used for the study have duly acknowledged. We have
produced it independently except for the guidance and suggestion of the research advisor.

This study has not been submitted for any degree in this university or any other university. It is
offered for the partial fulfillment of BA degree in Business management.

Name: signature:

- ___________________

: ___________________

: ___________________

: ___________________

Advisor name MR.

Signature. _____________________

Date_____________________________

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Acknowledgement

We would like to appreciate all those who helped us in completion of this project. It would have
been impossible without the effort of many individuals who assisted us directly or indirectly.

We thank GOD for providing us strength to complete this work, our families and friends for
supporting us during all this period.

We would like to thank you our Advisor Mr. who has been a constant support for us to refine our
work.

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ABSTRACT

The main purpose of this study will be to identify and assess the effect of employee commitment
on organizational performance in the case of yeka sub city administration in Addis Ababa with
the essence of intending to show how much organizations employee relation practices will affect
its employee performance and its role in sustaining successfulness and employee relation.

Key words, Employee Relation, Employee Relation practice, Employee Performance,

performance, Organizational performance

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 TABLE OF CONTENT

Contents Pages
ACKNOWLEDGEMENT...............................................................................................................i

List of Tables..................................................................................................................................v

List of Figure.................................................................................................................................vi

ABBREVIATIONS AND ACRONYMS.....................................................................................vii

ABSTRACT..................................................................................................................................viii

CHAPTER ONE.............................................................................................................................1

Introduction.....................................................................................................................................1

1.1. Background of the Study.....................................................................................................1

1.2. Problem statement...............................................................................................................3

1.3. Objective Of The study and Research Questions................................................................4

1.3.1. General Objective of the Study......................................................................................4

1.3.2. Specific Objectives........................................................................................................4

1.4. Research Questions.............................................................................................................5

1.5. Significance of the Study....................................................................................................5

1.6. Scope /Delimitation of the Study........................................................................................6

1.7. Limitation of the Study...................................................................................................6

1.8. Organization of the Study....................................................................................................6

CHAPTER TWO............................................................................................................................7

2. LITERATURE REVIEW..........................................................................................................7

Introduction.....................................................................................................................................7

2.1 Theoretical Literature Review .............................................................................................7

2.2.1. Benefits of a Good Employee Relationship practice.....................................................9

2.2.2. Factors affecting employee relation practices.............................................................11

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 2.2.3. HRM and Employment Relations................................................................................14

2.2.4. A Typology of Management Style..............................................................................15

2.2.5. Approaches to Employee Relations.............................................................................16

2.2.6. Employee Performance................................................................................................17

2.2.7. Factors affecting employee performance.....................................................................17

2.2.8. Organizational performance........................................................................................20

2.2.9. Factors affecting organizational performance.............................................................20

2.3. Theories and views on organization and performance.......................................................21

2.3.1. The classical organization theory................................................................................21

2.3.2. Taylor‟s Four Principles of Scientific Management...................................................22

2.3.3. Relationship between employees and organizational performance.............................23

2.4. Empirical literature review.................................................................................................24

2.5. Conceptual framework.......................................................................................................27

2.6. Research Gap.....................................................................................................................28

CHAPTER THREE......................................................................................................................29

3. RESEARCH METHODOLOGY............................................................................................29

3.1. Description of the study Area/Organization.....................................................................29

3.2. Research Approach...........................................................................................................29

3.3. Data Type and source........................................................................................................29

3.4. Research design.................................................................................................................30

3.5. Population and Sampling Technique................................................................................30

3.6. Data Sources and Tools.....................................................................................................31

3.7. Data Analysis and Presentation.........................................................................................32

3.8. Validity and Reliability Test.............................................................................................32

3.9. Ethical Consideration........................................................................................................33

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CHAPTER FOUR........................................................................................................................34

4. DATA ANALYSIS AND DISCUSSIONS.............................................................................34

Introduction.........................................................................................................................34

4.1. Demographic Profile of Respondents...............................................................................34

4.2. Analysis of the study.........................................................................................................37

4.3. Factors affecting employee performance...........................................................................45

4.4. CORRELATION...............................................................................................................52

CHAPTER FIVE..........................................................................................................................54

5. SUMMARY, CONCLUSION AND RECOMMENDATION................................................54

5.1. Major findings of the study...............................................................................................54

5.2. Conclusion........................................................................................................................55

5.3. Recommendations..............................................................................................................56

Reference......................................................................................................................................57

Appendixes...................................................................................................................................59

List of Tables

Table 2.1 Perspectives on the employment relationship ............................................................... 13

Table 3.1 Case processing summary ........................................................................................... 32

Table 3.2 Reliability Statics ....................................................................................................... 33

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 CHAPTER ONE
Introduction

The main purpose of this research thesis was to assess the effect of employee commitment on
organizational performance in the case of yeka sub city administration. This chapter includes a
background of the study; statement of the problem; research questions; objectives of the study;
scope and limitation of the study, the significance of the study, and organization of the study.

1.1. Background of the Study

The concept of employee commitment for an organization is a crucial point in an organization.

Employee relations are concerned with managing and maintaining the employment relationship,
taking into account the implications of the notion of the psychological contract (Armstrong,
2014፡406) this includes the relation employer and employee have and the mechanisms on how to
manage this process. Besides those relations between the two, relation among employees is a
crucial factor in organizational performances and performances of the employee as well.

The relation between employees may encounter many problems in an organization if they fail to
perform by considering major job factors. Performance in any circumstance defines employee
ability in accomplishing the given task. Performance means both behaviours and results.
Behaviours emanate from the performer and transform performance from abstract in to action.
(BRUMBACH 1988:387)

Employees‟ performance in an organization can be measured by the relations among employees

and the results they achieve in doing it. There l many behavioural factors that can determine the
relation between employees. Those factors are major determinants for creating a smooth working
condition in an organization.

The role of the employer in sustaining employee relations is crucial. Employee relations basically
are about how management and employees live together and what can be done to make Those
work (Armstrong, 2014:406). Organizations play an important role in creating a smooth
relationship among their workers, this in turn help them to upgrade their performance and
productivity.

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Most work place conflicts may matter the performances of the employee and has effect on the
relations between the employees. To solve such kind of problems and conflicts in work places the
management of the organization should set measures that help to balance and create the relations
of employees and a good performance measurement mechanism

The research thesis is focused on Yeka sub-city administration. Yeka sub-city administration is one of
the ten sub-cities formed under the proclamation of the Addis Ababa city administration.
It‟s classified as a service giving organization or for non-profit organization. There are about
1,500 employees, 100 temporary employees and the rest 1,400 are permanent employees, and
37 sector offices or work divisions under the sub-city. Managers or heads of the 37 sector offices
are responsible to the chief executive of the sub-city and there are supervisors or team leaders
who are responsible for coordinating work management of their departments.

When we see the reality in the case of yeka sub-city administration, employee relations with their
colleagues, their supervisors and the head management is not as such good and exemplary. So
many reasons and factors can be mentioned, the management and employee have no specific time
and schedule for meetings to discuss their problems, there are no enough performance evaluation
and acknowledging workers mechanisms, and there are no gatherings at all with the employees,
the supervisors and the management as a whole.

The character of the research will be systemic In order to construct a purposeful and fully
documented data and result. And the research thesis will follow all the appropriate methods and
techniques.

In order to realize the above mentioned factors there should be a clear mechanism and working
procedures to narrowing the gaps between the relations between employees among themselves,
their supervisors and the management. The relations on work places among workers are highly
related to performance. Therefore, organizations must work on such issues to enhance the
organizational success and for creating smooth service giving activities.

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 1.2. Problem statement

Though there are some researches made on employee relations and performances, they basically
focuses on the relations between the employer and the employee on knowledge sharing and
employee commitments on organizational performance mostly on business organizations and the
industry. R KARIMI, 2011 in his research on employee job satisfaction and employee
performance, the finding showed that there is a negative relationship between employee job
satisfaction and their performances because of lack of smooth relationship between employees.
Also ZTEFERA, 2017in a research title on employee job satisfaction and performance, the
finding state that there is a communication between employee performances and the overall job
satisfaction in their organization. Both researches focus on overall employee job satisfaction and
its effect on performance. There is a gap on these researches in showing what is the relation
among employees look like and what factors affect employee performance, what roles do
employers and the management have in sustaining employee job performances and what
mechanisms should be done in order to enhance relations between employees, their managers
and to advance organizational performance and enhance employee relation practices. Also a
study by Jacqulene Mokeira Omuya about the influence of Employee relations on Employee
performance concludes employee relations have strong positive impact on the performance of
employees in an organization. Also the study address there is a negative relationship between
unions and the management on the organization, with the findings of this study the researcher try
to address what are the basic issues related with employee relations and employee performance
and the relation between unions and the management at yeka sub-city will be assessed.

Though there are researches made on this issue before, this research thesis will contribute in
exploring and analysing the subject matter in the case of a public organization and major
contributors in enhancing employee performance by strengthen employee relation practices.
This research thesis will focus on determining the gaps between the relation between employees,
employee relation practices and how their interaction affects their performances, and try to
allocate some possible solutions for the betterment of employee relation and enhancing their
performances.

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In the case of Y.S.C.A, the research thesis intends to identify practical gaps concerning employee
relation practices and performance.

There is a gap between employee and the management in meeting and discuss their problems, this
results on employees grievances and dissatisfaction with their job environment. Another gap is
there is a negative relationship between employees in their groups and with other job departments.
This affects employee performance and work motives in their work environment and affects the
relationship they have with other job departments. There is no constant means of practicing and
acknowledging employee‟s performances, this result in differences among employees and affect
their relationship and performance as well.

So ,this research thesis was contribute on narrowing those gaps by finding solutions for problems
raised and try to focus on how to maximizing employee job satisfaction and performances and
creating smooth relationship between employees .

1.3. Objective Of The study and Research Questions

1.3.1. General Objective of the Study

The research thesis‟s main objective is to explore effects on employee commitment and its
role on organizational performance.

1.3.2. Specific Objectives

• To identify factors that affect employee commitment at yeka sub-city administration

• To assess performance measuring systems of Yeka sub-city and their effect on employee
level of performance

• To assess factors that affect employee performance at yeka sub –city administration

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 1.4. Research Questions

 The research thesis try to address major issues related with the relations among
employee and its effect on their performance by asking some major points:

 What are the factors affecting employee commitment at yeka sub-city administration?

 To what extent performance measuring systems of Yeka sub-city affect employee

level of performance?

 What are the factors affecting employee performance at yeka sub-city administration?

1.5. Significance of the Study

This research thesis is significant in showing the relation between employees in a public
organization and its outcome in order to provide a smooth service giving system and ensuring the
organization‟s success.

In terms of literature the research thesis becomes helpful in showing different literatures written
on the subject matter and on how to develop and aware the idea by referring articles and related
literatures. Another significance of the study is to show real practices on the issue in Yeka sub-
city administration, and how is the issue handled on ground. Also the research thesis will try to
identify major problems related with employee performance, motivation, work behaviours and
the relationship between employees in the organization. Therefore the research thesis was
significant in finding solutions for the above mentioned issues and other related factors.

The research thesis also was significant in providing major findings and concepts for future
researches on the subject matter. There are no previous researches made before on public
organizations on the issue as far as the knowledge of the researcher concerned, so this research
thesis was become a ground for other researches to be made on public organizations, the research
thesis was basically focus on relations among employee and to somehow their performance is
affected by their relations. This also becomes significant for other researches to develop the
concept and issue by articulating further experiments and findings.

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 1.6. Scope /Delimitation of the Study
The research thesis scope is limited to the organization and its employees. In terms of
geographical site or boundary, the study will be focused in A.A, Ethiopia and specifically in
Y.S.C.A.

1.7. Limitation of the Study

The research thesis has some limitations during the research data gathering techniques and
methods. One limitation can be, respondents might not give back the prepared questionnaires on
the needed time and this may affect the completion date of the study. All given questionnaires to
respondents might not be filled in a complete manner so that it may have a problem in analysing
and concluding them. Also, there might have been a problem on using research methods in a
consistent manner and this will result in some imperfections on the results of the study.

1.8. Organization of the Study

The successfulness of an organization is defined by the activities and job performances of
employee. When employees become effective for their defined job descriptions, their role in
increasing the organization‟s reputation also increase.
This however is determined by the relations each have and the readiness in achieving the common
goals for their organization. This research thesis try to discuss issues related with employee
performance, the relation between employees and its effect on performance and factors that affect
those conditions on Yeka sub-city administration.
The research thesis is composed of three chapters. The first chapter is the introduction part
including background of the study, problem statement, objective of the study, research questions
study significance, scope, limitation and organization of the study.
The second chapter deals with the literature review of the thesis, theoretical literatures, the
empirical literature and conceptual framework.
The third chapter is about methodology which states background of the study area or
organization, research design, data type, population, sampling techniques, sample selection, data
collection methods and analysis and ethics.
In the fourth chapter of the thesis the data analysis and discussion will be covered. Those include
demographic characteristics, table representation and different tests and qualitative analysis.

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The final and fifth chapter is the conclusion and recommendation part that deals with the major
findings of the study and recommending some measures that should be considered based on the
results.

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 CHAPTER TWO

2. LITERATURE REVIEW

Introduction
This chapter deals with basic concepts and different point of views about the research thesis
subject matter. Basically three major concepts and issues will be reviewed. Theoretical literature
which is about basic concepts and definition of terms related with employee relations,
performance, individual performance and organizational performance and related concepts and
some theories and perspectives about the issue are covered. Empirical literature, which is about
referring the literatures and studies done by other researchers about the issue raised and the
findings in those issues in relation with its role for the study be referred. Finally conceptual
frame work of the literature try to explain major relations that exist between the major variables
or issues that is between employee relations and organizational performance and on how those
relations affect the reactions and activities operated among them.

2.1 Theoretical Literature Review

Basic concepts and definitions

2.1.1 Employee Relations

The concept of employee relations along with organizational performance is an essential
concept in most organizations. Most authors try to relate the concept of employee relations
with industrial relations. Though some authors pin point employee relations by defining
different features of the concept. While others try to use the term industrial relation in order to
use the concept of employment relations.

Blyton and Turnbull (1994: 7–9) define employee relation by stating the difference it have
with industrial relation in that employee relation is a concept that encompass the nowdominant
service sector, which in many developed countries now employs more than 70 per cent of the
workforce, and the changes in the composition of the labour force such as more women are
working and more part- time, temporary and fixed-term contracts. Also employee relation is a
process or relations that include non-union as well as union scenarios and relationships. While,
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 Industrial relations deal with trade unions, collective bargaining and industrial action.
Industrial relations had too strong a tendency to view the world of work as synonymous with
the heavy extractive and manufacturing sectors of employment, sectors that were dominated
by male manual workers working full-time and that are now in decline in nearly all developed
economies.

Marchington and Wilkinson (1996) states employee relation is part of personnel and
development concerned with the regulation of relations (collective and individual) between
employer and employee.

Armstrong (2014, 403) defines employee relations are concerned with managing the employment
relationship and the psychological contract. They consist of the approaches and methods adopted
by employers to deal with employees either collectively through their trade unions or
individually. This includes providing employees with a voice and developing communications
between them and management. Employee relations cover a wider spectrum of the employment
relationship than industrial relations, which are essentially about what goes on between
management and trade union representatives and officials, involving collective agreements,
collective bargaining and disputes resolution. This wider definition recognizes the move away
from collectivism towards individualism in the ways in which employees relate to their
employers.

Both definitions indicate that the concept of employee relations explains today‟s employee-
employer scenario and it is a more descriptive issue to be considered.

2.2.1. Benefits of a Good Employee Relationship practice

It is very obvious that good employee relationship is the basics for creating a successful and
productive manpower and a harmonious working environment and organizational culture. The
more the relation between employee and employer becomes positive the more employees‟
motivation and working performance become higher.

Employee relations can be challenging in most work places, healthy relationships among workers
are beneficial not only to the individuals but also to the entire organization. The role of managers
is crucial in this case. Managers who have a good working relationship with their Employees

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help to establish a culture that encourages great employee relations. Major mechanisms to
establish and strengthen the employer employee relationship are, measuring employee
satisfaction, identifying and resolving workplace issues and providing input and support to the
performance management system of the organization.

Some benefits of good employee relations:

Growth and development: a harmonious relationship between employees and employers will
contribute to economic growth and development. This then leads to an increase in efficiency

. Greater efficiency in turn leads to higher productivity and growth. When employees have a
positive relationship with their managers, they will work more efficiently and they will put their
best efforts. Organizations that have harmonious relationships will be able to ensure continuity
for production and good service giving.

Reduction in turnover: employee relations are the backbone of any business and work
management interactions. Poor employee relations will affect productivity and result in high
employee turnover. It is only when employees feel valued that they will use their skills and
experience to the fullest to contribute to the growth of the company. Organizations that have
good employee relations provide higher wages and other attractive benefits making in the best
interest of the employee to stay.

Conflict reduction: workplace issues and conflicts are common and inevitable in any
organization. Conflicts at the workplace will have an adverse impact on the productivity of a
company and are likely to contribute to an environment of distrust between employees and the
management. Investigating, mediating and resolving employee complaints will help create a
good work environment which will reduce conflict in the workplace. Employee turnover also
becomes less when there is less conflict in the workplace. The work environment becomes stable
and happy which improves the overall work culture.

Employee loyalty: a pleasant and productive work environment will have an effect on the loyalty
of the employee, encouraging a loyal workforce. Great employee relations are the key to success
for any company. Employee relations are important as the success of an organization is highly

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dependent on the engagement and productivity of the workforce. (Jason Greer, 2019, the
influencive.com)

2.2.2. Factors affecting employee relation practices

Employee relations are affected by a number of factors, all of which affect the strategic balance
between labour and management. There are some key factors that influence employee relations:

Unions: unions and union organizing significantly affect employee relations. Unions are
described as agents or representatives for employees in order to bargain and negotiate major
issues and terms of a company on behalf of them. Unions can be a source of employee
empowerment, as union employees may feel as though they share a common goal. Also unions
provide arbitration of labour disputes and grievance procedures.

Communication: communication is key factor influencing employee relations. Employees who

think their complains and grievances are heard and find a solution for their problems will have
high moral. Communication in workplace involves keeping employees informed of performance
expectations and keep updating them in any changes in organization policy or procedure that
may affect them. Open communications such as in monthly meetings or through weekly memos,
assist in alerting management to workplace problems before these problems begin to affect
morale.

Company culture: companies or corporations have their own culture. Company culture basically
is about how employees are treated. For example, a company culture that emphasizes punishment
over reward usually creates an environment of fear and low morale. However, a company culture
that embraces employees‟ unique attributes and emphasizes reward tends to improve relations
between management and labour.

Wages: wages are significant factor influencing employee relations. When a company provides
employees with industry-standard wages or wages that are above industry standards, employee
relations typically run more smoothly. Benefits and bonuses also affect employee relations as
they tend to make employees feel valued and accepted. Andrine Redsteer, small
business.chron.com

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Theories and perspectives on employee relations Control, power and authority in the employment
relationship the socio-political dimension of the employment relationship was briefly introduced.
This aspect is concerned with control, power and authority in the collective employment
relationship and represents the predominant concern for employee relations analysis and study.
On a theoretical level, there are a number of competing perspectives or conceptualizations of the
relationship between capital (employers) and labour (employees) which can inform and underpin
particular approaches to the management of people.

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 Table 2.1 Perspectives on the employment relationship

Ideology Power Conflict Processes Trade unions

Organizations are viewed Primacy of Conflict is Unilateral Trade unions are

as unified managerial unnatural/irrat decision viewed as either
Unitary entities All parties have prerogative ional making un necessary or
common objectives management is Where conflict by illegitimate
a single source exists, it is the management Management must
of authority result of trouble Employer have the freedom
employment makers or agitators, actions and to operate in
relationship is legal initiatives accordance with
essentially misunderstanding to contain or the dictates of
consensual or the market
reflecting suppress
miscommunication conflict are
common
interests legitimate
pluralist An organization Management leads Conflict is inherent , Range of Trade Unions and
Comprises a Coalition but its authority can processes other Collective
of different sectional be unavoidable needed to bodies are
legitimately and, within maintain legitimate
interests and groups
contested and limits, legitimate dynamic
Parties have both representative s Of
questioned equilibrium‟ separate interests
shared and diverse and healthy
Interests and objectives Power relations „industrial action‟ is Conflict of
are fluid and the a legitimate interests should
relative Expression of be constrained
dominance‟ of conflict and resolved
parties can change through
over time rules,
negotiation
and collective
bargaining

Radical Relationship between capital Fundamental Disputes may be Employee True workplace
/Marxist and labour based on class relations
conflict – „them‟ and us imbalance of power processes do not Democracy impossible
Settled but underlying
lies with owner of fundamentally without worker control
conflict remains until
means of production alter the status of means of
the structure of society
(employers) quo production
changes
reflecting an
exploitative
relationship

(Table 1.1 provides details of three key theoretical standpoints)These perspectives are useful in
considering the underlying assumptions that inform particular managerial practices, as well as
fundamental questions around the nature of the employment relationship (Budd and B have,
2008).
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 2.2.3. HRM and Employment Relations

In addition to representing perspectives on the employment relationship, unitarism and pluralism

can also be understood as „ideal types‟ (Fox, 1974) associated with particular managerial
ideology and representing a set of assumptions that can underpin HRM practices. For example,
the unitary view is reflected in an authoritarian and autocratic management „style‟ where
managerial prerogative in decision-making is maintained through strict control and discipline
(reflecting hard HRM) and hostility towards unions („suppression‟). Alternatively, unitary can
underpin more paternalist approaches to management, where employees are encouraged to think
of the organization as akin to a „family‟ or „team‟ where the employer will take care of the
workforce and make decisions that reflect the common interests of all Organizational members
(„soft HRM‟). Under this approach, managers „substitute‟ for unions by concerning themselves
with employee welfare and removing the need for union presence. „Best practice‟ models of
HRM that have emerged since the 1980s are often referred to a neo-unitary, reflecting the
adoption of cooperative employee relations in pursuit of organizational goals. Pluralism
underpins management styles that accept or are forced to accept the presence of conflicting
interest groups within the firm and the Legitimacy of trade unions to represent workers‟
interests. To develop this distinction, Purcell and Sisson (1983) suggest a typology of five
„management styles‟ based on the degree to which unitary and pluralism

Are emphasized notably, sophisticated human relations firms display the neo-unitary,
individualism and Union substitution associated with high commitment approaches to HRM. A
pluralist approach to people management based upon a combination of individualism and
collectivism is present in consultative sophisticated moderns, reflecting a co-operative
partnership between Management and trade unions. On this basis, „high-commitment‟ HRM
practices and trade unions are not necessarily mutually exclusive and, in some circumstances,
union presence can contribute to the achievement of the goals of HRM, such as employee
commitment, flexibility and quality. Nonetheless, HRM practices often tend to represent, either
implicitly or explicitly, a strategy of union substitution or are used to disguise anti-union
sentiment among management.

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 2.2.4. A Typology of Management Style
• Traditional

Authoritarian unitary: Workers are excluded from decision-making, and power is concentrated

In the hands of management while a policy of union suppression or avoidance is adopted.

Workers are treated as factors of production and a cost-minimization approach is taken to the
management of labour.

Sophisticated human Relations

Paternalist unitary: Workers are regarded as organizational assets and management seeks to
maximize employee identification with the aims of the company. Sophisticated HRM policies are
believed to remove any need or justification for opposition by workers and, therefore, trade union
recognition is unlikely.

• Sophisticated moderns

Pluralism: Workers, normally via unions, are seen as legitimately involved in specific areas of
decision-making. There are two types of sophisticated moderns:

• Constitutional

The emphasis is on formal agreements to regulate relationships, particularly the adoption of a

legalistic approach to establish clearly the demarcation between areas of „power sharing‟ and
managerial prerogative.

• Consultative

Reflects a less formal, more flexible approach to employee relations where union participation in
decision-making is encouraged through recognition, problem-solving mechanisms and two-way
communication.

Standard moderns

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Management‟s approach to employee relations swings between unitary and pluralism,
Contingent or opportunistic management where the adopted approach reflects the prevailing
employee relations climate. When union power is perceived as low, management makes
decisions, when power is high, a negotiating or consulting approach may be adopted. This can be
characteristic of large companies where responsibility for employee relations is devolved to
subsidiaries resulting in a lack of standardization the interaction between HRM and employee
relations is also explored in Guest and Conway‟s (1999) framework for analysing the
relationship between, on the one hand, unitary, individualized HRM practices and, on the other,
employee relations, denoting pluralism and trade union recognition. Firms placing emphasis on
both employee relations and HRM are characterized as partnerships combining individual and
collective mechanisms for the management of employees. Such an approach is common in the
public sector and a few high-profile large private sector firms. Traditional pluralist firms
emphasize negotiation, consultation and information-sharing across a wide range of issues solely
via recognized trade union representatives. Firms that prioritize the individual management of
labour and „soft HRM‟ are referred to as individualist. Finally, Guest and Conway identify firms
that have neither mechanism for the collective management of labour nor sophisticated HRM
practices, referring to these organizations as black hole, characterized by an absence of formal
People management practices.

2.2.5. Approaches to Employee Relations

There are four approaches to employee relation: Armstrong (2014, 440)

1. Adversarial: the organization decides what it wants to do, and employees are expected to
fit in. Employees only exercise power by refusing to cooperate.

2. Traditional: a reasonably good day-to-day working relationship but management

proposes and the workforce reacts through its elected representatives, if there are any; if
not, employees just accept the situation or walk.

3. Partnership: the organization involves employees in the drawing up and execution of

organization policies, but retains the right to manage.

4. Power sharing: employees are involved in both day-to-day and strategic decision-making

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 2.2.6. Employee Performance
Performance of the employee is considered as what an employee does and what he does not do.
Employee performance involves quality and quantity of output, presence at work,
accommodative and helpful nature and timeliness of output. (Yang, 2008).

Also Armstrong (2006) define employee performance as the achievement of specific tasks
measured against predetermined or identified standards of accuracy, completeness, cost and
speed. Thus, employee performance can be manifested in improvement in production, easiness in
using the new technology, highly motivated workers.

Employee performance should be carefully noted at all levels of the organization. Since no
matter an individual‟s title, everyone has the opportunity to lead in some capacity and have a
positive impact on performance. Thus, understanding the value that can be achieved through
different roles is one way of providing motivation, performance and thus leadership skills.
(Llopis 2012)

Employee performance suggests employee productivity and efficiency as a result of employee

growth (Khan & Jabbar, 2013). Sinha (2001) defined employee performance as depending on
the willingness and the openness of the employee to do the job. Employee performance in the
organization is very important to determine company‟s success and profitability. According to
Chien (2015), a successful organization requires employees who are willing to do more than their
usual job scope and contribute performance that exceed goal‟s expectations. Employees‟
performance is imperative for performance to yield organizational effectiveness in an
increasingly competitive environment (Aryee et al., 2014).

According to Tavakolia (2010), employees‟ performance will drop due to downsizing

innovations and mergers in the organization, as well as changing of the location, time, quality
and quantity of the task and responsibilities.

2.2.7. Factors affecting employee performance

1. Job satisfaction

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Job satisfaction is the extent to which an employee feels self-motivated, content and satisfied
with his/her job. Job satisfaction happens when an employee feels he or she is having job
stability, career growth and a comfortable work life balance. This implies that the employee is
having satisfaction at job as the work meets expectations of the individual.

A satisfied employee is always important for an organization as he/she aims to deliver the best of
their capability. Every employee wants a strong career growth and work life balance at work
place. If an employee feels happy with their company and work, they look to give back to the
company with all their efforts. Job satisfaction from an employee perspective is to earn a good
salary, have job stability, have a steady career growth, get rewards and recognition and
constantly have new opportunities.

For an employer, job satisfaction for an employee is an important aspect to get the best out of
them. A satisfied employee always contributes more to the company, helps control attrition and
helps the company grow. Employers need to ensure a good job description to attract employees
and constantly give opportunities to individuals to learn and grow. MBA Skool Team, 2020

2. Training and Development

Training is often seen as a planned and systematic process of learning in the sense of acquiring,
modifying, and/or developing knowledge, skills and abilities (KSA) in order to achieve and/or
improve the employees‟ performance in the current job and prepare them for an intended job.

Training allows employees to acquire new skills, sharpen existing ones, perform better, increase
productivity and be better leaders. Since a company is the sum total of what employees achieve
individually, organizations should do everything in their power to ensure that employees perform
at their peak. Ana Paula Ferreira, 2016 Employee Engagement

Employee engagement is the extent to which employees feel passionate about their jobs, are
committed to the organization, and put discretionary effort into their work. Employee
engagement is not the same as employee satisfaction. Employee satisfaction only indicates how
happy or content employees are. It does not address their level of motivation, involvement, or
emotional commitment.

21
Employee engagement drives performance. Engaged employees look at the whole of the
company and understand their purpose, where and how they fit in. this leads to better decision –
making. Organizations with an engaged workforce outperform their competition. They have high
earnings per share (EPS) and recover more quickly after recessions and financial setbacks.

A company that has an effective employee engagement strategy and a highly engaged workforce
is more likely to retain top performers as well as attract new talent. Successful organizations are
value-driven with employee-centric cultures. Custom insight, 2021 Goals and Expectations

A goal is an object of a person‟s ambition or effort, an aim or a desired result. While expectation
is a strong belief that something will happen or be the case in the future. Employees‟
expectations at workplaces may matter the most in their performances. Expectations are related
to goals because when they managed correctly, they are process related. We should expect hard
work, focus, attention, energy, attitude and preparation. Tyler Pazik, 2019

Tools and equipment

Employee workplace satisfaction basically is concerned also with using and having the proper
working materials for their jobs. Having the right tools at work should be a standard nowadays,
but many companies and workplaces are failed to do it. Organizations or employers want to
make their workers as comfortable as possible. When people are happy, they will have more
energy to invest in work-related matters.

There is a profound emotional effect when an employee wants to make the work experience more
pleasant. People are much more likely to sacrifice their time and effort for an employer who
cares for them. Terrance Palmer, 2019

Morale and Company Culture

People naturally resist change of any kind, especially when that change affects the way they
work. As a result of this resistance to change, any organizational culture change is likely to
negatively affect employee morale. Employees will complain and resist the change, asking why
it is necessary. Organizations must anticipate workers reaction when they are asking why the
organization‟s culture is changed.

22
Decreased company morale is not always easy to identify. Complaints and grumblings are the
most common symptoms of reduced morale. Calling in sick, arriving in late for work and leaving
early are other indicators for a decreased moral in a company. Mistakes and poor treatment of
customers are two other signs that company morale is declining.

When organizations change their company culture they have to articulate their company‟s
philosophy. Most employees go through four stages when reacting to change. They are denial,
anger, inquiry and acceptance. To be successful implementing a culture change, a company must
allow for its employees to go through these stages. Kermit Burley, 2020

2.2.8. Organizational performance

Organization performance is a function of employee performance. Organization effectiveness

depends on constantly improving the performance of organizational members and developing
and maintaining the human potential that serves as the backbone of the organization.

Kerning and Jaeger, (1990). Organization performance refers to how well an organization is
performing. Good performance is an indicator of success and development of all organizations.
Today best practices evaluate organizational performance in terms of financial results, Products
innovations, customer loyalty and people performance helps ensure organizational goals are
being achieved. Armstrong (1987).

2.2.9. Factors affecting organizational performance

1. Structure of an organization: structure of an organization can hinder or advance execution.

Depending on how viable the supervisory connections and work process impact profitability.
These characterize the departmental structure and the report hierarchy.

2. Leaders: help themselves as well as other people to do things correctly. They set course,
fabricate a motivating vision and make something new. They know to map out how to go
about winning as a group or an association and it is their dynamic, energizing and motivating
characteristics that make the organization remarkable.

23
3. The environment of the organization: this factor centres on whether representatives have
vital and satisfactory tools, supplies and strong environmental conditions to do their function
admirably. It likewise analyses whether the association has the upkeep frameworks set up to
help a well-working environment. Key parts to consider include: hardware instruments,
consumable supplies, and miscellaneous.

- Conventions/strategy manuals, work helps and documentation, - physical

workplace (furniture, work space, water, light and ventilation)

- Safety at the workplace.

4. Skills of an individual: this factor includes an assurance of whether workers have the
fundamental learning skills and knowledge to carry out the responsibility. It tends to the
principal question; do representatives and teams realize how to carry out their responsibilities
effectively? Do workers/ groups have fundamental training for proficiency, clinical and
proficient learning skills, social and communication abilities, critical thinking, basic
reasoning, collaboration or do they increase productivity at work, etc. Davood Askarany, 2011

2.3. Theories and views on organization and performance

2.3.1. The classical organization theory

The studies made by the classical scholars of organization concentrated their devotion upon the
laying down of the Organizational ideologies and upon the official features of the organization.
The organization scholar mostly examines into the

Philosophies and recommends the clarifications to be taken into concern by the heads such as the
instructions confirming an Effective management. Through the classical scholar of organization
we can see very few experiments and administrative observation for trying the viability of the
philosophies and propositions projected (Ivanko, 2012).

Theories of Management can be classified as Theories of Classical Management, Theories of

Humanistic Management, Theories of Situational Management and Theories of Modern
Management, etc. Among all kinds of Management Theories, Classical Management Theories are
24
very significant as they deliver the source for all other concepts of management. (Mahmoud et al,
2012).

The classical theory is distributed into three modules: Scientific Management, Administrative
Management and Bureaucratic management (Sofi, 2013).Frederick Taylor, Henri Fayol and Max
Weber created the structure and the improvement frame of Classical Organization Theories (Yang
et al., 2013). The scientific management approach developed by Taylor is based on the concept of
planning of work to achieve efficiency, standardization, specialization and simplification. Taylor
was the first person who attempted to study human behaviour at work using a systematic
approach. Max Weber considered the organization as a segment of broader society. He looked at
the structure of the organization and the control of member behaviour. The elements of
administrative structure by Fayol relate to the accomplishment of tasks, and include principles of
management, the concept of line and staff; committee‟s and functions of management
(Irefin&Bwala, 2012).

2.3.2. Taylor’s Four Principles of Scientific Management

Taylor observes management as the procedure of getting things done by the effort of the people
working independently or insets. Taylor‟s core idea is that affluence to the society can come
simply from the cooperative effort of the management and worker in the use of scientific
methods. He emphasized for mental revolution on both the part of management and labor side,

Thus that they may work together in the essence of work coordination with a vision to cultivating
their particular lots achieving high pays for labour and better output at little expenses for
management. Taylor perceives that management is ignoring its tasks, and force the liability of
systems and production on labour. He asserts that management should commit to do the planning
of work, defining methods, organizing, directing and the like for which it is finest fit (Sapru,
2008).Taylor explains on his theories of management in 1911, while he circulated “The
Principles of Scientific Management”. Taylor stated scientific management comprised of four
fundamental principles in the “The Principles of Scientific Management” (1911) as:

1) Replace the old rule-of-thumb method through the development of a science for
every component of a man‟s work.

25
 2) Select, train, show and improve the workman through scientific method.

3) Collaboration with men wholeheartedly so as to complete the assignment

scientifically.

4) Equally divide the work and the responsibility concerning the management and the
worker. The management gets all Determination for which they are fine fitted than
the workmen.

In review, Taylor presented an in adequate attention to organizations. He was considered merely

at organizing effort at the bottom Level of the organization that is suitable to the management
work of a manager (Robbins & Mathew, 1990). Scientific Management transformed business.
Because, it describes how to raise production by functioning smoother, not tougher. Up until that
time, growing output intended more employees, more raw materials, more hours, and more
expenses. Scientific Management practices simple sense to express how division of labour,
standardization, and productivity, emphasized an image of effectiveness that booms currently
(Adeyemiet. al, ND). Therefore, Scientific Management, in general has taken a significant and
extensive influence on the business exercise and on the theoretical concepts of organizations. Yet,
it still works as a guide for methodological dealings, not simply in the industrial sector, but in the
service sector as well.

2.3.3. Relationship between employees and organizational performance

Employee relationship is the major factor determining the performance of employees. Good
relationship with employees can be created through motivating employees, effective
communication, good working conditions and effective communication. Deming, (1997) as he
cited workforce as a major contributor to higher productivity levels. A basic obligation of
employee is adequate performance. How well an employee fulfils his or her obligation depends on
the degree to which the management and the employees on what defines satisfactory performance
The values, beliefs and behaviour of the enterprises employees are held to occupy strategic role in
corporate success. All organization which aims at high performance need to have a policy agenda
to create relationship with their or working people, which support their business objectives what
this therefore calls for is to have an employee management relation.

26
Also Douglas McGregor (1966) said staff contributed more to the organization if they were treated as
responsible and valued employees. George Elton mayo (1927) also stated that the need for recognition,
security and sense of belonging was more important in determining workers morale and productivity than
the physical conditions under which they work Because of the above mentioned concepts and facts,
employee relations is very crucial and the basics of all smooth communications that will happen in the
organization among employees themselves and the organization. In order to create a sustainable working
environment and a more customer focused system, organizations should highly consider their system
which they use to manage their employees and on the ways they evaluate and acknowledge performances
of their workers.

2.4. Empirical literature review

A study made by (James Mark Ngari, 2013) on the Influence of Employee Relations on
Organization Performance of Private Universities in Kenya states that the institutions involved
their staff in decision making, have a formal grievance procedure and a formal disciplinary
procedure. This will minimise problems that will happen among workers and the management
and will help for positive relationship among workers and the organization. The study also
concludes that supervisors involved other staff in the coming up with recruitment policy. This
will help in creating transparency and accountability on the major activities of the organization
and will minimize workers complains on how things are activated. The study also indicated that
the independent variables had a positive and significant influence on organizational performance
of the private universities in Nairobi County.

According to the study in order to have a positive relationship between employees and employers,
organization working mechanisms and performance appraisal systems have to be fair and clear to
employees to know them, with this smooth employee- employer relationship can happen and
contribute a positive influence on organizational performance. (CHEGE JOSPHAT
KARANJA, 2011) on EMPLOYEE RELATIONSHIPS AND ORGANIZATIONAL
PERFORMANCE argued that there is a strong positive relationship between employees and
organizational performance. Workers motivation and productivity is the result of good employee
relationship and it has a great role for a positive organizational performance. Further, it

27
strengthens the relations employees have with their subordinates and will contribute for a
successful organizational culture.

The study findings revealed that poor performance is as a result of poor working condition, lack
of motivation, ineffective communication and lack of employee participation. The absence of
smooth communication between employee and employer will result in an overall dissatisfaction
on an organization and between employees themselves. This in turn result fer an organization to
lose its productivity, employees‟ job dissatisfaction and further may result on high turnover of
employees.

Finally the study concludes, Employee relation has a big impact on the organization performance
if relationship is poor organization performance will be negatively affected. This show in order
to increase smooth service giving and to enhance productivity, there should be a Positive
relationship between employers and employees. Employee performance is highly related with
motivation and job satisfaction. If there is a system that address employee issues with the proper
mechanisms including performance measuring levels, there will be a sustainable organizational
culture and performance.

Another study by (Thomas KatuaNgui, 2016) about RELATIONSHIP BETWEEN EMPLOYEE

RELATIONS STRATEGIES AND PERFORMANCE OF COMMERCIAL BANKS IN

KENYA states that employee relations strategies affect the performance of commercial banks to
a great extent the relations employee has a great influence and significant for the employees. This
tells us that if we want to achieve a higher individual as well organizational performance, our
strategy or view towards employee relations need to be highly considered and organizations
should give a big emphasis on how to strengthen the relations among their employees and the
management. This in turn will result on an efficient level of employee performance as well
organizational performance.

The study found out that if employee relations were positive, the employees were found to
commit themselves to achieve the goals of the bank which in turn led to an improved
performance. In this case involvement, appreciation and recognition of employees and
employees‟ tasks fulfilment stimulate them towards working with more energy and dedication to

28
the organization. In every activity that is happening in the organization, employees must be
involved and participate to create a common sense among themselves and transparency. There
should be a proper recognition and acknowledgment method in which all employees know about
how it is developed and whether the systems fulfil the required procedures for the recognition.
Employees become motivated and become more positive towards other colleagues who will be
recognized through this kind of recognition method and it can reduce complains and grievance
rose related to such issues. Employees will perform their tasks in a motivated and becoming
more competent manner if they fell that they are assigned to the right work mandate with all the
relevant reward, recognition and evaluation for doing their jobs.

The results of this study also include that there is a positive effect of quality of communication
between managers and staff and between employees among themselves and through unions on
performance. When there is a smooth relationship and communication that include clear and fair
work description for employees, a clear work management and instructions on how to perform the
given tasks, ways in identifying who is perform well the given task and make the right and fair
recognition method and becoming able in solving complains and grievances of employees on time
are major issues that need to be considered and that matters the most in creating a smooth and
successful employee relations and the organization.

Over all the employee relation strategy organizations implement have a greater role and influence
for employees performance as well on organizational performance.

A study by (Dr. JanesO.Samwel, 2018) on effect of employee relations on employee

performance and organizational performance study of small organizations sates maintaining
harmonious relations is very important for the survival, prosperity and growth of the organization
also good and healthy employee relations leads to better organizational performance. .
Organizations should underlie the concept of employee relations for their overall growth and to
create a good performed employee for their organization. The study found that there is a positive
significant relationship between employee relations and employee performance as well as
between employee relations and organizational performance. The concepts of employee relation,
employee performance and organizational performance both are very interrelated and essentials
for a sustainable and continuous organizational success and for building strong organizational
culture. The study also implicated that the use of unfair labour practices is a major cause of poor
29
employee relations in organizations. Any organization has to clearly consider the practice of
using fair labour practices for smooth employee relations and an improved employee
performance.

Also a study by (A.H. Sequeira, Apoorva.Dhriti, 2015) on Employee Relations and its impact on
Employee Performance: A case study implicate that the relation between employees and the
organization varies from company to company depending upon the values of management.
Employees get satisfied with the organization if they are recognized by the manager in terms of
respect; achievements etc. employee relationship also includes providing opportunities for
employee participation in management decisions, communications, and creating policies to
enhance collaboration and conflict resolution as well as dispute minimization.

2.5. Conceptual framework

The conceptual framework provides a foundation for focusing on specific variables for the study.
These variables will basically focus on employee relation practices and its role on employee
performance and organizational performance. The conceptual framework of the study will tries
to show the relationship between employee relations and employee performance.

The variables under factors according to the literature review affect employee performance. Job
satisfaction, training and development, employee engagement, goals and expectations, tools and
equipment and morale and company culture are related directly to employee relations and to the
greater effectiveness and productivity of employees. This variable contributes either positively or
negatively to employee relations.

Independent Variables Dependent variables

Employee relations factors Employee performance factors

 Unions  Job satisfaction
 Communication  Training and
 company culture development
 Wages  Employee engagement
 Goals and expectations
 Tools and equipment
30
 Morale and company culture
Figure1. Conceptual Framework
Source (developed by the researcher from literature review)

2.6. Research Gap

A number of studies have been carried out on the analysis of the effect of employee relation
practices on employee performance and organizational performance. However most of the
researches are based on manufacturing companies and industries also on universities especially
in the case of our country. With This and other factors the research will be helpful in providing
such ideas in the case of public service organizations.

31
 CHAPTER THREE

3. RESEARCH METHODOLOGY

This chapter described the methods that was used for the making of the study to be used by the
researcher to carry out the study. It includes the description of the study area, research approach,
research design, and target population, sample size, data type and sources, data analysis and
presentation and ethical considerations.

3.1. Description of the study Area/Organization

The study area of this research is Yeka sub-city administration in Addis Ababa and it is one of
the 10 sub-cities found in Addis Ababa and formed under the proclamation of the Addis Ababa
city administration and it is referred as a service giving organization. The study was involve
selected employees of the organization, and all are permanent employees. Among 1,500 workers
of the organization, those who are selected for this research purpose were included in the study.

3.2. Research Approach

The study was used a Quantitative approach to data gathering, because face to face interactions,
observations and interviews and questionnaires were included in the research, the researcher used
the Quantitative data.

3.3. Data Type and source

The study was used and applied two data types and resources including the primary and
secondary data sources in order to address the study in an organized and proper manner.

32
Primary data

Primary data was original and collected for the first time by the researcher. It is gathered through
questionnaire and observation. By using primary data as the method, we will collect data during
doing experiment in experimental research (Kothari 2004). In this study data was gathered
through questionnaire and interviews. The reason for using primary data as a method of data
collection is simply involves interviews and questionnaire which enable the researcher to gather
information which could not be easily obtained.

Secondary data

Secondary data are those data that are already available and collected from secondary sources of
data such as journals, books, newspapers, websites, publications and other documents available
in libraries including research reports from distinguished academicians (Kothari 2004).

Secondary data was also applied by going through various documents like books, journals, articles
and websites which are relevant to the theme of the study for the purpose of gathering
information.

3.4. Research design

(Saunders et al. 2007), defines research design as the general plan of how the research questions
would be answered. It is the conceptual structure within which research is conducted. It
constitutes a blue print for the collection, measurement and analysis of data. The study will use
an inferential survey research design to assess the relationship between the roles of employee
relation practices on employee performance. An inferential survey research design helps to
suggest explanations for a situation or phenomenon. It allows for the researcher to draw
conclusions based on extrapolations, and is in that way fundamentally different from descriptive
statistics that merely summarize the data that has actually been measured.

33
 3.5. Population and Sampling Technique
This study was a total population size of one thousand and five hundred (1,500) employees and
this large size will make it impossible for the researcher to test every individual members of the
population. Thus, among the total population, the research has included employees who are
permanent and serving the organization for at least six months and above. Accordingly, Three
hundred and six (306) employees will be included in the research.

In this study random sampling technique will be used in collecting data. According to Creswell
(2005) random sampling is a subset of individuals that are randomly selected from a population.
The goal is to obtain a sample that is representative of the larger population. Kothari, (2004)

says that random sampling technique is used because it guarantees desired representation of the

relevant sub groups. Lottery method was used to pick respondents who were included in the

research thesis. Sample Size

n=
N

(1+N (e2))

n= 1500

(1+1500(0.052))

n= 306

Where;

N= Number of population n= Sample

Size e=standard error at 95%confidence

level

34
3.6. Data Sources and Tools

In an attempt to assess the employee commitment on organizational performance in the case of

yeka sub city administration and to provide possible recommendations, the study used both
primary and secondary data. With regard to primary data, first hand data was collected through
questionnaire and interviews filled by employees including managers and team leaders of the
organization. Closed end questions were rated with Likert scale method. Likert scale is "A
psychometric response scale primarily used in questionnaires to obtain participant‟s preferences
or degree of agreement with a statement or set of statements.

Respondents was ask to indicate their level of agreement with a given statement by way of an
ordinal scale." A 5-point scale ranging from “Strongly Disagree” on one end to “Strongly
Agree” the other end was used for this research.

As far as secondary data concerned, relevant data will be investigated from different
documentations of Yeka sub-city, i.e. annual reports and HR documents. Moreover, different
literatures about employee relationship, theories, concepts of employee performance and other
human resource management books and literatures, (internet) and other available sources were
used.

3.7. Data Analysis and Presentation

Quantitative methods was use in the analysis of the data. Accordingly, the collected data will
processed using the appropriate data presentation software (SPSS). Data for the various research
questions were analysed using tables, feedback analysis, valid percentages, standard deviations
and mean were obtained to show the distribution of opinions and perceptions of respondents. As
well, the results of the study were explained using regression and correlation analysis.

35
 CHAPTER FOUR

4. DATA ANALYSIS AND DISCUSSIONS

Introduction

This part will try to discuss and explain the feedbacks given by respondents about the research
main issue and analysis and presentations of the findings are included. This part has included

Both the primary and secondary sources of issues related with the subject matter in order to
interpret and describe results by using the appropriate research making tools and mechanisms.

4.1. Demographic Profile of Respondents

Respondents for the study have been selected using the random sampling technique and lottery
method was used to select those respondents. Respondents were selected from different working
divisions of the organization.

Table 4.1 Gender of the respondent

Frequency percentage Valid Cumulative

Percentage percentage

Female 70 25.0 25.0 25.0

Valid 210 75.0 75.0 100.0
Male

Total 280 100.0 100.0

As indicated in table 4.1 above, 25% of respondents were female and 75% of respondents were
male. This shows that most respondents were male employees.

36
 Table4.2 age of the respondent

Frequency Percent Valid Cumulative

Percent Percent

-33 1 .4 .4 .4
3
> 49 1.1 1.1 1.4
14 5.0 5.0 6.4
41-48
111 39.6 39.6 46.1
33.9 33.9 80.0
Valid 26-33
95 20.0 20.0
56 100.0
34-40
100.0 100.0
280
18-25

Total

In terms of age, 39.6% of respondents were from the range of 26-33 years of age, 33.9% were
3440, 20% of respondents were 18-25, 5.0 were 41-48, and 1.1% was above the age of 49. This
implies the majority workers of the organization are under the age of 26-33. Also employees from
the age of 34-40 were represented by 33.9% of respondents, which is the second most age ratio in
the organization, workers whose age are from 18-25 were represented by 20% of respondents and
workers from the age range of 41-48 were represented by 5% of respondents and 1.1% of
respondents were above the age of 49. This shows that the majority of employees is young and
can be said active and are experienced in their career path. 84.3% of employee was BA/BSC
degree holders, 10% of them were MA/MSC degree holders and 5.7% were diploma holders. This
shows that the organization has an educated manpower which can handle their work tasks with
the respective knowledge and skills.

37
 Table 4.3 Educational background

Frequency Percent Valid Cumulative

Percent Percent

Diploma 16 5.7 5.7 5.7

BA/BSc 236 84.3 84.3 90.0

Valid 10.0 10.0
MA/MSC 28 100.0
100.0 100.0
Total 280

Table 4.4 Work experience

Frequency Percent Valid Percent Cumulative Percent

> 16 56 20.0 20.0 20.0

6-10 113 40.4 40.4 60.4

11-15 62 22.1 22.1 82.5

Valid 1-
5 42 15.0 15.0 97.5

<1 Year 7 2.5 2.5 100.0

Total 280 100.0 100.0

About 40.4% of the employees were served the organization for 6-10 years, 22.1% of
respondents were served for 11-15 years, 20% of respondents have over 16 years of working
experience, 42% of respondents were served for 1-5 years and 2.5% of respondents have below 1

38
year of working experience. This implies that the majority of workers have a long staying history
in the organization
4.2. Analysis of the study

Factors affecting employee relation practices

The findings for employee relation practices are described below in table 4.5

Unions N Minimum Maximum Mean Std. Deviation

When there is a strong union, it 280 1 5 4.10 .939

helps the
Employee to address all work-
related issues whenever possible

A union that is supportive of the 280 1 5 4.05 1.133

employee helps to build trust in the
employees and the organization.

A smooth relationship between 280 1 5 4.12 1.073

the union, the management and
the union can enhance working
relationships and cohesive
Organizational culture

Accordingly, the finding shows that when there is a strong union, it helps the employee to
address all work-related issues whenever possible (Mean=4.10, SD=.939), A union that is
supportive of the employee helps to build trust in the employees and the organization
(Mean=4.05, SD=.1.133), A smooth relationship between the union, the management and the
union can enhance working relationships and a cohesive organizational culture (Mean=4.12,
SD=1.073), as shown in the finding, most workers agree on the presence of unions and they
believe that they can defend their rights and stand on their side in cases of emergency. This will

39
 prevail that an organization should consider for a strong workers union which stands for the
rights of both workers and the organization.

Table 4.6 open communication

Open communication N Minimum Maximum Mean Std. Deviation

Open communication within an 280 1 5 4.10 1.002

organization tends to create greater
motivation and ethics at work, because
employee grievances and grievances are
heard and resolved in a timely manner

employees are always up- to-date and 280 1 5 4.28 .973

well-informed about any organizational
policy changes and procedures that
occur in their organization

In my organization, for example, through 280 1 5 4.20 .895

open meetings or weekly notes, there is
an open communication to help solve
many issues and problems about the
organization.

In terms of open communication in organizations, respondents‟ state, open communication

within an organization tends to create greater motivation and ethics at work, because employee
grievances and grievances are heard and resolved in a timely manner (Mean=4.10, SD= 1.002),
employees are always up-to-date and well-informed about any organizational policy changes and
procedures that occur in their organization (Mean=4.28, SD= .973), In my organization, for
example, through open meetings or weekly notes, there is an open communication to help solve
many issues and problems about the organization (Mean=4.20, SD= .895). It seems that most
respondents were addressed the importance of open communication in their organization and
states that open communication may affect ones performance in a positive way by helping the

40
employee in expressing whatever she/he wants and can complain at any time when there is a
problem in their working environment if there will be a smooth open communication system.

Table 4.7 Company culture

Company culture N Minimum Maximum Mean Std. Deviation

There is a strong and Conducive work 280 2 5 4.20 .886

Environment within the organization that
allows employees to accept their unique
characteristics and reward them for their
actions.

Employee balance management in the 280 1 5 3.91 1.267

organization helps to create a smooth
relationship between employees and the
employee's confidence inthe organization.

With regard to the other factor that affect employee relation practice which is company culture,
respondents have reacted in a way that, There is a strong and conducive work environment
within the organization that allows employees to accept their unique characteristics and reward
them for their actions. (Mean=4.20, SD= 1.886) Employee balance management in the
organization helps to create a smooth relationship between employees and the employee's
confidence in the organization (Mean=3.91, SD= 1.267) in the organization the culture of being
connected with employees with their managers and the organization as whole is positive and
most of the employees believe their company culture allows them to practice and show their
unique characteristics. Also the organization has practiced a measure in managing its employee
in a balanced manner and respondents are also referring to this practice. However, more should
be done to enhance this cooperation.

41
 Table 4.8 wages

Wages N Minimum Maximum Mean Std.

Deviation
Fair and attractive wages help to 280 1 5 3.89 1.213
create employee motivation in the
workplace and create smoother
relationships between partners

I have a strong motivation for all 280 1 5 3.65 1.317

the goals for my organization,
because theorganization holds me
in terms of benefits and
allowances

With regard to employee relation practice, another factor explained by respondents is wage. Fair
and attractive wages help to create employee motivation in the workplace and create smoother
relationships between partners ((Mean=3.89, SD= 1.213) I have a strong motivation for all the
goals for my organization, because the organization holds me in terms of benefits and allowances
(Mean=3.65, SD= 1.317) based on respondents view they are not that much satisfied with the
wages they get at their organization and also employees motivation towards their job is weak as to
the result. This indicated that the organization have to implement and practice a good wage
structure that can benefit its employees in order to get their maximum potential out of them. Also
wage structures have positive effect in increasing employees‟ performances and enhancing
employee relation practices.

42
 Table 4.9 Management’s view towards workers and unions

Management‟s view towards N Minimu Maximu Mean Std.

workers and unions m m Deviation

The positive attitude of the 280 1 5 3.89 1.213

management towards the workers
and the union will help to
strengthen and facilitate the
relations within the organization
and create a strong
organizational culture.
A timely and accurate way of 280 1 5 4.04 1.127
resolving the issues of
employees and their
representatives is to create a
trust ship and create a good
working relationship between
the staff and the management.

The positive attitude of the management towards the workers and the union will help to
strengthen and facilitate the relations within the organization and create a strong organizational
culture (Mean=3.89, SD= 1.213), A timely and accurate way of resolving the issues of
employees and their representatives is to create a trust ship and create a good working
relationship between the staff and the management (Mean=4.04, SD= 1.127). The majority of
respondents have agreed on the issue of how a timely problem solving mechanism can create a
trusteeship among work members and to create smooth relationship between the management
and the staff with an average mean of 4.04 and an average standard deviation1.127. The rest of
43
respondents have agreed about how the management’s view towards workers and the union can
change the working environment and help to create a strong organizational culture with 3.89
average mean and 1.213 average standard deviation. The result implied that in order to have a
strong employee relation practice in an organization the relation between workers, their union
and the management should be smooth and also organizations should give an emphasis for issues
Raised by workers and the union and try to solve them on time. This will have a positive
influence on employee relation practices and employee performance.
Table 4.10 Employees attitude towards the management

Employees attitude towards the N Minimum Maximum Mean Std. Deviation

management

Employees have a positive attitude 280 1 5 4.31 .888

towards management and believe that
it promotes their work goals and the
relationship between their colleagues

Managers are ready and supportive to 280 1 5 3.89 1.176

build a close relationship with their
employees.

Employees have a positive attitude towards management and believe that it promotes their work
goals and the relationship between their colleagues (Mean=4.31, SD= .888), Managers are ready
and supportive to build a close relationship with their employees (Mean=3.89, SD= 1.176) from
respondents answer it can be noticed that many of them agreed about having a positive attitude
towards the management help in promoting workers goal and to have a good relation between
their co-workers the average standard deviation is .888 with average mean of 4.31.

Manager‟s readiness in building a close relationship with their employee shows that most
respondents were not happy with the relations they have with their managers and this is shown
with an average S.D of 1.176 and average mean of 3.89. This indicates that managers of the

44
organization should give a due attention for the relationship they have with their employees and
need to improve it.
Table 4.11 Trusteeship between employees

Trusteeship between N Minimum Maximum Mean Std. Deviation

employees

A good ship of trust 280 1 5 4.07 1.100

among employees will
have a positive impact on
the performance of the
organization and all
working conditions
Building a trust ship 280 1 5 4.05 1.192
between them will help
reduce conflicts and have
a positive impact on
improving teamwork.

A good ship of trust among employees will have a positive impact on the performance of the
organization and all working conditions (Mean=4.07, SD= 1.100), Building a trust ship between
them will help reduce conflicts and have a positive impact on improving teamwork (Mean=4.05,
SD= 1.192). As to respondents answer, both issues are crucial for the organization and this can be
referred with a 1. 100averageS.D and 4.07 average Mean and 1.192 average S.D and 4.05 average
Mean respectively. This tells us that employees‟ relation based on trust ship and fraternity is very
important and that will have a positive effect in harnessing employee relation practices. Also,
building a work based trust ship among employees is significant in advancing their performances
and contributes for a positive effect on employee performances.

45
 Table 4.12 Commitment and devotion to team work and team spirit

Commitment and devotion N Minimum Maximum Mean Std. Deviation

to team work and team spirit
I have a strong sense of ownership and 280 1 5 3.91 1.142
commitment to the success and goals of
the organization due to effective
employee relationships.
Equitable wages and benefits, equitable 280 1 5 4.06 1.107
distribution of labor and fair treatment of
workers, and timely grievance addressing
mechanisms strengthen the employee's
commitment to the organization.

Basically, an organization that aims to 280 1 5 4.19 .999

improve the needs of its employees is to
create greater motivation and team spirit
among employees

I have a strong sense of ownership and commitment to the success and goals of the organization
due to effective employee relationships (Mean=3.91, SD= 1.142), Equitable wages and benefits,
equitable distribution of labor and fair treatment of workers, and timely grievance addressing
mechanisms strengthen the employee's commitment to the organization (Mean=4.06, SD=
1.107), Basically, an organization that aims to improve the needs of its employees is to create
greater motivation and team spirit among employees (Mean=4.19, SD= .999). By observing

Through the above results the majority of respondents agree on the importance of team work and
team building. With the result of an average S.D of .999 and average Mean of 4.19, respondents
were answering an organization that tries to improve its employees‟ needs will have a higher
tendency in creating an organization with greater motivation. Respondents with an average of

S.D 1.107 and average of Mean 4.06 agree equitable wages and benefits; fair treatment of
workers and an on time worker’s grievance handling measure are the basics for creating and
46
 practicing team spirit and team work in an organization. Also the issue of sense of belongingness
and strong achievement for an organization‟ success is dealt with an average S.D of 1.142 and
average Mean of 3.91. All respondents‟ answers brief that in order to achieve a strong
organizational success and good employee relation practices, organizations need to consider
those issues and should do in achieving them.

4.3. Factors affecting employee performance

Table 4.13 Job satisfaction

Job satisfaction N Minimum Maximum Mean Std. Deviation

Strong and fair practices in the 280 1 5 3.93 .988

organization play an important role
in job satisfaction to ensure a good
job description to attract
employees and provide
opportunities for individuals to
learn and grow.

I am very satisfied with my work 280 1 5 4.15 1.007

because I have a balance of work
stability, career advancement and
a comfortable working life in my
organization

Strong and fair practices in the organization play an important role in job satisfaction to ensure a
good job description to attract employees and provide opportunities for individuals to learn and
grow (Mean=3.93, SD= .988), I am very satisfied with my work because I have a balance of
work stability, career advancement and a comfortable working life in my organization
(Mean=4.15, SD= 1.007), among the many factors that affect employee performance, job
satisfaction is one among the main factors. According to respondents‟ answers, the issue of job
satisfaction is very crucial and it has a positive effect on employee performance. Also the sub-
47
 factors referred under job satisfaction are important and have an influence in determining
employee performance. As to the result, with an average S.D of 1.007 and average mean of 4.15
respondents answering how much they are satisfied with their job because of the presence of
balanced work stability, smooth career advancement and comfortable working life in their
organization. This shows us that the majority of them is satisfied and wants to stay in their
organization as long as their organization needs them. Also respondents have answered for the
issue of strong and fair practices in an organization and their role for creating a job satisfaction
the result is an average S.D of.988 with average mean of 3.93. Accordingly, organizations should
focus on their work plans and overall management activities in order to ensure employee job
satisfaction and to enhance a good employee performance.

Table 4.14 Training and development

Training and development N Minimum Maximum Mean Std.

Deviation
A well-organized and well- 280 1 5 3.96 .938
planned training and
development program enables
employees to acquire new
skills, build existing ones, work
better, increase productivity,
and become better leaders
As a result of a series of 280 1 5 3.77 1.193
training and development
programs, I have the basic
learning skills and knowledge
to fulfil the responsibilities
assigned to me by my
department and organization.
Efficient training and 280 1 5 3.96 1.213
development system helpsto have
a highly skilled work force and
improves job satisfaction thereby
developing morale

48
 A well-organized and well-planned training and development program enables employees to
acquire new skills, build existing ones, work better, increase productivity, and become better
leaders (Mean=3.96, SD= .938), As a result of a series of training and development programs, I
have the basic learning skills and knowledge to fulfil the responsibilities assigned to me by my
department and organization (Mean=3.77, SD= 1.193), Efficient training and development
system helps to have a highly skilled workforce and improves job satisfaction thereby developing
morale (Mean=3.77, SD= 1.193), as training and development is also another major factor,
respondents were give their answers for sub factors of training and development. For respondents
with a result of 1.213 averages S.D and average mean of 3.96, the issues of Continuous training
and developments is very crucial for creating a highly skilled workforce and have a positive
effect on employee performance. A result with an average S.D of .938 and average mean of 3.96
addresses the issue the significance of a series of training and development for acquiring new
skills and building productivity convinced many of the respondents and believe that training and
development is crucial for improving employee performance. A result of average S.D of 1.193
with average mean of 3.77 found out that respondents are not satisfied with the training and
development programs of the organization and states there needs to be further effort in arranging
continues training and development that are related with employee’s level of qualification and
work behavior. The overall result describing that training and development has a positive effect
on employee performance and is one of the contributing factors for an improved worker
performance and organizational performance.

Table 4.15 Employee commitment

Employee commitment N Minimum Maximum Mea Std.

n Deviation
Because of the positive relationships in 280 1 5 4.2 .782
the Organization, I have a deep Love for 1
my work, I am loyal to the organization,
and I try to be balanced in my work.
The workforce helps the organization to be 280 1 5 4.0 1.117
more competitive and helps the 6
organization to be more productive and
overall successful in all its activities.

49
An effective employee engagement 280 1 5 4.2 .964
strategy and a highly engaged workforce 0
are more likely to capture top executives
and attract new skills.

Because of the positive relationships in the organization, I have a deep love for my work, I am
loyal to the organization, and I try to be balanced in my work (Mean= 4.21, SD= .782), the
workforce helps the organization to be more competitive and helps the organization to be more
productive and overall successful in all its activities (Mean= 4.06, SD= 1.117), An effective
employee engagement strategy and a highly engaged workforce are more likely to capture top
executives and attract new skills Mean= 4.21, SD= .782). The above mentioned factors are
concerned with regard to employee commitment and engagement for their job. The majority of
respondents believe work commitment and engagement are factors affecting employee
performance positively. Employee engagement basics on positive relationship among workers in
the organization, the importance of the work force for creating a competitive and productive
organization and the presence of an effective employee engagement strategy and highly
motivated workforce are crucial for one‟s organization success. The results are, average S.D of

7.82 And average mean of 4.21, average S.D of 1.117 and average mean of 4.06 and average S.D
of .782 and average mean of 4.21 respectively.

Table 4.16 goals and expectations

Goals and expectations N Minimu Maximum Mean Std. Deviation

My promises are related to the goals of 280 m1 5 4.19 .840
the organization because when they are
properly managed, they are related to
the process. To work hard we must
maintain focus, energy, attitude and
preparation
Hard work, attention, energy, attitude 280 1 5 4.26 .754
and preparation are required from my
performance to achieve the goals of the
organization.
My promises are related to the goals of the organization because when they are properly
managed, they are related to the process. To work hard we must maintain focus, energy, attitude
50
 and preparation (Mean= 4.19, SD= .840), Hard work, attention, energy, attitude and preparation
are required from my performance to achieve the goals of the organization (Mean= 4.26, SD=

.754). Goals and expectations are major contributors in determining employee performance and
they are related to an effective employee performance. And respondents have answered those
concepts the same as the above table, for respondents both the issue of goals and expectations
Were related with employee performance. According to respondents, expectations and goals have
positive effect on employee performance with a result of average S.D of .840 and average Mean
of 4.19 and an average SD of .754 and average mean of 4.26.

For employees in order to achieve their organization success they have to have a clear and well
stated goal which is directly related with performance of the employee.

Table 4.17 Suitable working environment and availability of working materials

Suitable working environment and N Minimum Maximum Mean Std. Deviation

availability of working materials
I have the necessary and satisfying tools, 280 1 5 3.95 .900
resources and strong environmental
conditions to do my job well in my
organization
Providing the right materials in the 280 1 5 4.29 .756
workplace gives employees more power to
invest in work- related issues.

Having the right materials and the right 280 1 5 4.31 .781
working environment in the organization
can have a profound emotional impact
When an employee wants to make the
work experience more enjoyable.
.

The last factor concerning employee performance is the need for a safe and suitable working
environment and availability of working materials. I have the necessary and satisfying tools,
resources and strong environmental conditions to do my job well in my organization (Mean=
3.95, SD= .900), Providing the right materials in the workplace gives employees more power to
invest in work-related issues (Mean= 4.29, SD= .756), Having the right materials and the right

51
working environment in the organization can have a profound emotional impact when an
employee wants to make the work experience more enjoyable

(Mean= 4.31, SD= .781). all respondents positively respond the issue with average S.D of .781
and average mean of 4.31, average S.D of .756 and average mean of 4.29 and average S.D
of .900 and average mean of 3.95. The result will tell almost the majority of respondents believe
that a safe and conducive working environment is very essential in order to achieve our activities
properly. Also the availability of working materials should be highly considered in sustaining
employee performance and this has also an influence on employee performance.

Overall Regression Model

The following table shows the regression analysis between dependent and independent variables:

Table 4.18 Model Summary

Model R R Square Adjusted R Std. Error of the

Square Estimate

1 .497a .247 .244 .817

Predictors: (Constant), employee relation cases

Dependent variables: employee performance.

R-squared is measured the goodness of fit of the variables in explaining the variation in
measures the variable Predictor: (Constant), employee relation (Associations, Company
culture, Salary, Management's attitude towards workers and trade unions, Management's
attitude towards workers and trade unions, Employees' attitudes towards management,
Employee attitude to one another, and Commitment to team spirit organization and
survival). As clearly described in Table 1.adjusted R-square value for the regression
model was 0.244, this indicates the variables in this study explain 24.4% of the variation
in employee performance. The remaining 76.6 percent of the variation in employee
performance.in yeka sub-city administration are explained by other variables which are

52
not included in the model. Therefore, employee relation is explanatory variable of
employee performance.

Regression ANOVA

The following shows the regression

ANOVA: ANOVAs
Model Sum of df Mean F Sig.
Squares Squar
e

1 Regression 60.654 1 60.654 90.976 .000b

278
Residual 185.343 .667
Total 245.996 279

a. Dependent Variable: employee performance

b. Predictors: (Constant), employee relations

On the other hand, table indicates that the regression model predicts the dependent
variable significantly well. This is because on the "Regression" row at the “Sig." column
indicates the statistical significance of the regression model that was run. Here, p< 0.000,
which is less than 0.05, and indicates that, overall, the regression model statistically
significantly predicts the outcome variable.

Coefficients

Model Unstandardize Standardized Sig.

d Coefficients Coefficients
B Std. Beta
Error
(Constant) 1.892 .237 7.987
53
 .000
Employee
.527 .055 .497
relations 9.538
Dependent Variable: employee performance

Based on the result shown above on the Table, employee relations has influence on employee
performance positively (β = 0.527, t = 9.538, p>.05). The finding shows stronger association with
employee performance. Organization’s efforts to create and maintain a positive relationship with
its employees by maintaining positive, constructive employee relations and hope to keep
employees loyal and more engaged in their work has a significant and positive relationship with
employee performance.

4.4. CORRELATION
Table 4.4.1 CORRELATION

Associations Pearson Correlation .602

Sig. (2-tailed) .000

N 280
Company culture Pearson Correlation .679
Sig. (2-tailed) .000

N 280
Salary Pearson Correlation .804
Sig. (2-tailed) .000
N 280
Management's attitude Pearson Correlation .572
Towards and trade workers unions Sig. (2-tailed) .000
Management's attitude towards workers N 280
unions Pearson Correlation .622
and trade Sig. (2-tailed) .000
Employees' attitudes towards N 280
Pearson Correlation .709
Management Sig. (2-tailed) .000

N 280
Employee confidence Pearson Correlation .847

54
 to one another Sig. (2-tailed) .000

N 280
Commitment to team spirit Pearson Correlation .754
organization and survival Sig. (2-tailed) .000

N 280
Dependent variable: employee performance

The degree of association is measured by a correlation coefficient, denoted by r. It is sometimes

called Pearson‟s correlation coefficient after its originator and is a measure of linear association.
If a curved line is needed to express the relationship, other and more complicated measures of the
correlation must be used.

The correlation coefficient is measured on a scale that varies from + 1 through 0 to – 1. Complete
correlation between two variables is expressed by either + 1 or -1. When one variable increases
as the other increases the correlation is positive; when one decreases as the other increases it is
negative. Complete absence of correlation is represented by 0.

Since the result show positive correlation in all the employee relation causes, it shows there is a
significant positive relationship between employee relation and employee performance.

CHAPTER FIVE

5. SUMMARY, CONCLUSION AND RECOMMENDATION

5.1. Major findings of the study

After many analysis and discussions, the study has reached on the following findings:

There is a positive and strong relationship between employee commitment on organizational

performance, and the sub factors under those issues are also interrelated for the overall success of
an organization.
55
Based on employee commitment, the presence of unions in an organization has a positive effect
on employee and the management. The majority of respondents insist that when there is a strong
union in an organization, workers issue and complain can be heard and will solve their problems
quickly.

The presence of open communication in organization is another factor that can affect employee
commitment the absence of open communication in organization may result to a negative
relationship between employees and the management and also with employees among
themselves. Most respondents have agreed about the importance of open communication for a
good and smooth employee relation practices.

The study also found out that company culture is the other factor that can positively affect
employee commitment on organizational performance. Respondents argued that a conducive and
well-structured company culture may affect its employee performance and employee relation
practice either in a positive or negative way.

Wages, employee trust ship, employee attitude towards the management and the union are also
factors that can affect the interactions on employee commitment on organizational performance.
According to respondents, those factors can affect relation among employees and their
performances.

The study also found out that there is a positive relation between factors affecting employee
performance such as job satisfaction, training and development, employee engagement goals and
expectations and the presence of a safe working environment have direct positive relationship
with employee performance and also are major contributing factors for a smooth and strong
employee commitment. The study overall analyses what are main factors that can affect
employee commitment on organizational performance. With the above mentioned analysis and
Findings organizations need to consider on how to improve and enhance employee performance
and employee commitment on organizational performance.

5.2. Conclusion

56
By considering the issue of employee commitment and its effect on organizational performance
this study tries to consider some major factors affecting the relationship between employee
commitment and on how it influences organizational performance at yeka sub-city
administration.

The issue of performance and employee performance in line with organizational performance
was also discussed in the study and found out that employee commitment have a positive
relationship with both employee performance and organizational performance. The relations
employee, the management and the unions have is directly related with one another and the
successfulness each will achieve is based on the activities and performance they have together. In
the case of Y.S.C.A employee commitment need to be considered with the case of employee
performance and employee have to practice a fair and accountable system that will allow them to
create a smooth relationship between the management and other staff members.

Another indicated result was the above discussed issues are directly related with employee
commitment factors on Y.S.C.A. The issue of unions in the organization, venues for open
communication, workers benefits including wages is major gaps that are identified.

Employee‟s workplace safety and job satisfaction, employees‟ engagement and employees‟
expectations have positive relationship on employee of the organization. Most of them state they
are satisfied on their job and their expectations are normal and they say their engagement for
their work has a positive result.

Another gap identified in the study was most workers of Y.S.C.A. are not happy with the way the
organization handle and practice its training and development program. Workers insist the
organization should arrange trainings that are relevant and continuous which can help them to
upgrade themselves. Also performance appraisal measures and evaluation systems of Y.S.C.A
are another gap that needs to be reconsidered as to workers of the organization.

The relationship between employees with their managers is another identified gap observed in
the study. Most of the workers were not happy with the relations they have with their bosses.

57
One major reason indicated is some bosses do not command the right work management to their
workers. This will however create a conflict between bosses and workers and even with the
employees themselves.

5.3. Recommendations

Based on the finding of the study there are some recommendations suggested by the researcher
that needs to be considered There should be a smooth relationship between employees and the
management of the sub-city in order to create a smooth working environment and to enhance a
good employee commitment Training and development programs and mechanisms of Y.S.C.A
need to be reconsidered and trainings should be given with related to workers job behaviors and
with a way of continuous assessment.

The performance appraisal system and performance evaluation method of the organization
should be arranged and clear and accountable performance evaluation should be practiced by the
organization.

As employee commitment on organizational performance are much related, due attention should
be given to practice both in a proper manner.

The organization should try to see other mechanisms and best practices that can help in
maximizing organization performance and having a strong employee commitment.

The presence of strong unions in the organization must be practiced and has a positive effect on
employee and the management.

Company culture of the sub-city needs to be considered and improvements factor that can
positively affect employee relation practices and employee performance

Reference
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Performance, National Institute Of Karnataka

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Ana Paula Ferreira, 2016, Theory and Application OF Business and Management
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publications, Germany

Blyton P and Turnbull P, 1994, the Dynamics of Employee Relations, Basingstoke, Macmillan.
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paradigms 050102, university of Auckland press

Guest, David, Conway, Neil, 1999, organizational change and the Psychological Contract,
Charterd Institute of Personnel and development, London
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Jason Greer, 2019, the influencive.com

John W.Budd, Devasheesh Bhave, 2008, Values, Ideologies, And Frames Of Reference
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Marchington M and Wilkinson A, 1996, Core Personnel and Development, London: IPD,
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Saunders, M., Lewis, P. and Thorn hill, A., 2007, Research Methods for Business Students, 4th
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2017] Terrance Palmer, 2019, The Importance of providing the right tools At
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STRATEGIES AND PERFORMANCE OF COMMERCIAL BANKS IN
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Yang, 2008, Human Resource Management, 3rd Edition

APPENDIX
Admas University
Faculty of Business
Department of Business Management

Questionnaire to be filled by employees of Yeka sub-city administration in Addis Ababa

60
 Dear Respondent:

This questionnaire is prepared with the attention to get the relevant information for the
research thesis in title: The Effect of employee commitment on organizational
performance On Yeka sub-city Administration in Addis Ababa. This study is only for
academic purpose and in order for the requirement of second degree in Business
Management. The responses of your questionnaire will be kept highly confidential. Your
kind participation and in-timely return of completed questionnaire is most valued and
appreciated.

Thank you in advance! General Directions

1. No need of writing your name

2. Please put a tick (√) mark in the box for your answer and for the number of your choice for
the alternatives given.

Demographic data Gender Male

Female
Age
18-25 years 26-33 years 34-40 years 41-48
years > 49 years Educational background Certificate

Diploma BA/BSc MA/MSc

PhD

Other

Work experience

<1 year 1-5 years 6-10 years 11-15 years > 16 years Questions
61
related to employee relations

Please indicate your choice of concepts related with employee commitment that you think best
suits the idea by considering the reality at Yeka sub-city Administration. (Put “√” Mark the
Alternative Number That Best Describes Your Idea)

Part i) Employee relations factors

Unions Strongly Agree Neutral Dis Strongly Dis

Agree Agree agree

Having a strong workers union help an employee to present

all work related issues whenever it is possible

62
 A union that is on the side and interest of the employee
will help in creating a trust on the employees and the
organization.
The presence of a smooth relationship between employee,
the management and the union can foster work relations
and a harmonious organizational culture Communication
The presence of an open communication in an organization
tends to create a high work motivation and moral on job,
because, complain and grievances of employee will be
heard and solved on timely.
Employees are always updated and well informed for any
organizational policy changes and procedures that will
happen in their organization
There is an open communication in my organization such
as, in monthly meetings or through weekly memos that will
help in arise many issues and problems about the
organization
Strongly Agree Neutral Dis Strongly
Company culture Agree Agree Dis Agree

There will be a strong and harmonious working

environment in an organization that allow its employees to
embrace their unique attributes and rewarded them for their
actions
Having a fair and balanced treatment of employee in an
organization will help to create a smooth relationship among
employees and make employee to be reliant on the
organization Wages
Strongly Agree Neutral Dis Strongly
Agree Agree Dis Agree

Fair and attractive wages will help to create employee

motivation in work places and to have a smooth relation
among colleagues
I am highly motivated for my organization‟s over all goals
because, the organization treat me with the relevant
benefits and allowances
Strongly Agree Neutral Dis Strongly
Attitudes of management to employees and unions Agree Agree Dis Agree

A positive and good attitude of the management towards

employees and the union will help in strengthen and
smoothen the relations in the organization and help to
create a strong organizational culture
A timely and proper way of addressing issues of employees
and their representatives by the management will help in
creating a trust ship and good work relations among the
employees and the Management
Strongly Agree Neutral Dis Strongly
Attitudes of employees to management Agree Agree Dis Agree

63
Employees have a positive attitude for the management and
believe it will advance their work motives and the relation
among their colleagues

the readiness and helpful actions of managers in creating

close contact with their employees will help employees to
feel confident and to have a positive attitudes towards the
organization
Strongly Agree Neutral Dis Strongly
Employee trust of one another Agree Agree Dis Agree
A good trust ship among employees will have a positive
effect on the performance and over all working
conditions of an organization

Building employee trust ship between themselves will help

in minimizing conflicts raised related to work distribution
issues and has a positive influence in improving team work
Strongly Agree Neutral Dis Strongly
Commitment to the organization and existence of team spirit Agree Agree Dis
Agree
Because of a smooth employee relation I have a sense of
belongingness and higher commitment for the success and
achievements of goals for the organization
The presence of a fair wage and benefits, equal work
distribution and fairly treatment of employee and on time
grievance solving methods will make an employee to be
sustained and committed for the organization
An organization that basically aims for improving the
interests of its employees is towards on creating a high
level of motivation and team spirit among employees

Part ii) employee performance factors

Job Satisfaction Strongly Agree Neutral Dis Strongly

Agree Agree Dis
Agree
A strong and fair practice in an organization to ensure a
good job description to attract employees and constantly
give opportunities to individuals to learn and grow has a
significant role for a job satisfaction

I‟m highly satisfied with my Job because I have job

stability, career growth and a comfortable work life
balance in the organization
Training and Development. Strongly Agree Neutral Dis Strongly
Agree Agree Dis
Agree
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 A well-structured and planned Training and development
program of an organization allows employees to acquire
new skills, sharpen existing ones, perform better, increase
productivity and be better leaders.

I have the fundamental learning skills and knowledge to

carry out the responsibility I have given by my department
and the organization because of a continuous training and
development program

28.An efficient system of training and development will

help to have highly efficient employee and Improves job
satisfaction and thus boosts morale.

Employee Engagement. Strongly Agree Neutral Dis Strongly

Agree Agree Dis
Agree
29. Because of a positive relation in the organization, I feel
passionate about my job, committed to the organization, and
put discretionary effort into my work

30. An engaged workforce for an organization help to

outperform its competition and will help for the
organization to have higher productivity and overall success
in every aspect of the organization performance

31. an effective employee engagement strategy and a highly

engaged workforce is more likely to retain top performers
as well as attract new talent Goals and Expectations.
32. My Expectations are related to goals of the organization
because when they managed correctly, they are process
related. We should expect hard work, focus, attention,
energy, attitude and preparation.
33. Hard work, focus, attention, energy, attitude and
preparation are expected from my performance in order to
achieve the desired goal of the organization.

Tools and Equipment. Strongl Agree Neutral Dis Strongly

y Agree Agree Dis
Agree
34. I have a vital and satisfactory tools, supplies and strong
environmental conditions to do my function admirably in
my organization

35. Providing the right and proper materials in work places

make employees to have more energy to invest in work
related matters

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36. having the needed materials and suitable working
environment in an organization tend to create a profound
emotional effect when an employee wants to make the
work experience more pleasant

If there is anything you like to add

Thank You for Your Cooperation!

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