The Perceived Relationship between Employee Relationship Management Practices and Job Satisfaction: A Case Study of Selected Private Commercial Banks in Addis Ababa.

Abstract

The main objective of the study is to assess the perceived relationship between employees’ relationship management practices and job satisfaction in selected private Banks in Addis Ababa. To achieve the objectives of the study and to answer the basic research question, the researcher used an explanatory research design, a mixed research approach, questionnaires and interviews, an exploratory and narrative approach, frequencies, percentages, mean, and standard deviation, Pearson correlation & multiple regression analysis. The mean scores for leadership style were greater than the rest of the variables, indicating that respondents are satisfied with the leadership stylepractice of the selected private banks, followed by HR practices, trust, communication, and sharedgoals and vision. The findings of the study indicated that there is a positive and significant correlation between Shared Goals and Values, Leadership Style, Trust, Communication, and HR Practices, and the dependent variable (job satisfaction) in the selected private banks at 1% level of significance. This implies that Shared Goals and Values, Leadership Style, Trust, Communication, HR Practices, and job satisfaction go hand in hand in the selected private banks. The value of R-squared is 0.771. From this figure, one can conclude that the explanatory variables jointly explained 77.1% job satisfaction. The findings of the study show that all of the explanatory variables, Shared Goals and Values, Leadership Style, Trust, Communication, and HRPractices had significant effects on job satisfaction. On the other hand, the results of regression analysis revealed that the variables Shared Goals and Values, Leadership Style, Trust, Communication, and HR Practices had a positive effect on job satisfaction. In addition, the result indicated that Shared Goals and Value and HR practices are the most significant predictors of jobsatisfaction in the selected private banks. ERM can work by strengthening and increasing the relationship between organizations and their employees. To reap the required objectives from ERM, there is a need to implement them according to the strategy. Many companies-built strategy by keeping an eye on their employees. The results of the research reveals that if ERM components (HR practices, communication, trust, shared goals and values and leadership styles) are implemented in organizations and managers give it high attention it can enhance ERM status in organizations through help employees job satisfaction in achieving tasks and targets set for theirjob positions and helps in developing effective communication channels and systems so that information needs of employees are met. Banks should have a clear model for ERM. This model should contain every aspect of employee relationships, where ERM must be a new concept that organizations adopt and implement, where the employees are the key to the success of any organization.