Effects of Employee Empowerment Practices on Employee Job Satisfaction: Case Study on Commercial Banks in Dire Dawa Administration

The main objective of this study was to examine the effects of employee empowerment on job satisfaction using a sample from public and private commercial banks operating in Dire Dawa city, Ethiopia. The study was descriptive in nature, so survey method was employed to collect data. The target population was employees of sampled private and public commercial banks who were 830 employees. By adopting stratified and simple random sampling techniques, 270 employees were selected to participate in the study. Data were collected using questionnaires. The reliability of the data was tested by using Cronbach’s alpha and all items were reliable. In order to analyse the data, both descriptive and inferential statistics were involved. Moreover, correlation and regression analysis were also performed by using SPSS version 20. The study revealed that there is moderate level of employee empowerment and job satisfaction in the study area. The result of correlation and regression analysis was also indicated that there is positive and strong relationship between empowerment and employee job satisfaction. Based on the findings it is recommended that organizations should empower and improve the current empowerment level of employees so as to enable them achieve and enhance their job satisfaction level to make the organization competitive in the market.