Addis Ababa University

College of Business and Economics

Masters of Business Administration

“Factors affecting employees job satisfaction: the case of Ethiopian

Insurance Corporation”

A thesis submitted to Addis Ababa University in partial fulfillment of the requirements

for the award of a Master’s Degree in Business Administration in Financial Services

By:

Tsion Solomon

Advisor:

Asres Abitie (PhD)

Addis Ababa, Ethiopia

June 2022
 DECLARATION

I, Tsion Solomon hereby declare that this work entitled “Factors affecting employee’s job
satisfaction: the case of Ethiopian Insurance Corporation. is my own work and that, to the best
of my knowledge and belief, it contains no material previously published or written by another
person nor material which has been accepted for the award of any other degree or diploma of the
university or other institute of higher learning, except where due acknowledgment has been made
in the text.

Tsion Solomon _____________________

Candidate’s Name Signature & date

Advisor’s Approval

This Thesis has been submitted for examination with my approval as an advisor.

Asres Abitie (PhD) ______________________

Advisor’s Name Signature & date

ii
 Addis Ababa University

College of Business and Economics

Masters of Business Administration

This is to certify that the thesis is prepared by Tsion Solomon, entitled; “Factors affecting

employees job satisfaction: the case of Ethiopian Insurance Corporation” in partial

fulfillment of the requirements for the award of the degree of Masters of Business

Administration in Financial Services, with the regulation of the University and the accepted

standard concerning to originality.

Approval of Board of Examiners

____________________________ __________________

Internal Examiner Signature & Date

____________________________ __________________

External Examiner Signature & Date

Dr. Merga Mekuria 7/7/22

iii
 ACKNOWLEDGMENTS

First and first, I express my heartfelt thankfulness to the almighty God, from whom I derive
the strength and knowledge to do all that is worthy in my life; I testify that His Grace and
power have been of immense assistance and encouragement in all of my endeavors, including
this research.

I owe a special appreciation to my adviser, Dr. Asres Abitie, for his unwavering guidance and
keen recommendations and input, which were important in the successful completion of this
study. I'd also like to thank the Ethiopian Insurance Corporation's management and staff for
their participation in this research.

Finally, I'd like to take this opportunity to express my heartfelt gratitude to my beloved husband

Mesfin Alemayehu, as well as my wonderful daughters Ruth Mesfin and Edom Mesfin, who

will soon be university graduates, and my lovely son Dawit Mesfin, for their love and support

throughout my time working on this paper.

iv
 Abstract
This paper is intended to determine the factors affecting employee job satisfaction in the case of
Ethiopian Insurance Corporation. In order to identify whether the factors considered are having
an impact on the satisfaction of employees, the researcher used Herzberg’s Two-Factor Theory
to determine the influence of intrinsic and extrinsic job satisfaction factors on employees of
Ethiopian Insurance Corporation The main objective of the study is examining factors that affect
employees’ job satisfaction in Ethiopian Insurance Corporation. The study has used explanatory
research design & data was collected by distributing questionnaires to 174 employees of EIC.
Respondents were requested to mark their satisfaction level which is based on 5-point Likert
Scale. The question related to job satisfaction consists of the factors that are supposed to affect
job satisfaction: a) payment & Benefit b) promotion c) Work Environment as extrinsic factors
and d) Recognition & e) Responsibility as intrinsic factors. This tool is employed to measure the
intrinsic factors of satisfaction, the extrinsic factors of satisfaction as well as the general
satisfaction levels of employees. The average from all the answers on each question was
computed and the higher the score mean the higher the level of job satisfaction in this aspect of
employees work. The data gathered was entered into SPSS in order to analyse using the
statistical tools such as descriptive statistics & inferential statistics which involves percentage
analysis, mean analysis and correlation of independent and dependent variables. The result of
the study indicated that recognition, responsibility, payment and benefits & promotion have
positive and statistically significant effect on job satisfaction and the intrinsic factors
(recognition & responsibility) have more influence on the job satisfaction of employees of EIC.
EIC should formulate a fair Recognition, Responsibility & promotion system to increase
employees’ motivation and their job satisfaction.

Key words and phrases: Job satisfaction, Responsibility, Recognition, Payments, Promotion,
Work environment

v
 Table of Contents
DECLARATION ............................................................................................................................ ii

ACKNOWLEDGMENTS ............................................................................................................. iv

Abstract ........................................................................................................................................... v

List of Tables ................................................................................................................................. ix

List of Figures ................................................................................................................................. x

List of Acronyms ........................................................................................................................... xi

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

INTRODUCTION .......................................................................................................................... 1

1.1 Background of the study .................................................................................................. 1

1.2 Statement of the problem ................................................................................................. 2

1.3 Research questions ........................................................................................................... 4

1.4 Objective of the study ...................................................................................................... 5

1.4.1 General objective ...................................................................................................... 5

1.4.2 Specific objectives .................................................................................................... 5

1.5 Significance of the study .................................................................................................. 5

1.6 Delimitation/Scope of the study ....................................................................................... 5

1.7 Organization of the Study ................................................................................................ 6

1.8 Operational Definitions of terms ...................................................................................... 6

CHAPTER TWO ............................................................................................................................ 8

REVIEW OF RELATED LITERATURE ...................................................................................... 8

2.1 Introduction ...................................................................................................................... 8

2.2 Theoretical Literature ....................................................................................................... 8

2.2.1 Definition of Job Satisfaction ................................................................................... 8

2.2.2 Importance of job satisfaction ................................................................................... 9

vi
 2.2.3 Theories of job satisfaction ....................................................................................... 9

2.2.4 Factors that affect job satisfaction .......................................................................... 13

2.3 Empirical Literature Review .......................................................................................... 15

2.4 Conceptual framework ................................................................................................... 18

CHAPTER THREE ....................................................................................................................... 19

RESEARCH METHODOLOGY .................................................................................................... 19

3.1 Introduction .................................................................................................................... 19

3.2 Research Design ............................................................................................................. 20

3.3 Research Approach ........................................................................................................ 20

3.4 Source and type of data .................................................................................................. 21

3.4.1 Primary Data ................................................................................................................. 21

3.4.2 Secondary Data ............................................................................................................. 21

3.5 Data Collection method .................................................................................................. 21

3.5.1 Questionnaire ................................................................................................................ 21

3.6 Target Population, Sampling and Sampling Method ..................................................... 22

3.7 Method of data analysis.................................................................................................. 23

3.7.1 Descriptive statistics ............................................................................................... 24

3.7.2 Inferential statistical Analysis ................................................................................. 24

3.8 Reliability Test ............................................................................................................... 25

3.9 Ethical Considerations.................................................................................................... 26

CHAPTER FOUR ......................................................................................................................... 28

DATA PRESENTATION, ANALYSIS, AND DISCUSSION OF THE RESULT ..................... 28

4.1 Introduction .................................................................................................................... 28

4.2 Demographic Information .............................................................................................. 28

vii
 4.3 Factors That Affect employees’ Job Satisfaction ........................................................... 31

4.4 Job satisfaction ............................................................................................................... 34

4.5 Descriptive statistics of the variables ............................................................................. 36

4.6 Correlation analysis ........................................................................................................ 36

Table 4.6: Correlation matrix of dependent and independent variables ................................... 37

4.7 Regression Analysis ....................................................................................................... 38

4.7.1 Diagnostic Tests of Assumptions of Classical Linear Regression Model (CLRM) ..... 38

4.7.2 Regression Result Analysis and Discussion ........................................................... 42

4.7.3 Discussion of the Regression Result ....................................................................... 45

CHAPTER FIVE .......................................................................................................................... 48

SUMMARY OF FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS ...................... 48

5.1 Introduction ......................................................................................................................... 48

5.2 Summary of Findings .......................................................................................................... 48

5.3 Conclusions ......................................................................................................................... 49

5.4 Policy recommendation ....................................................................................................... 50

Reference ................................................................................................................................... 51

Appendix ....................................................................................................................................... 60

viii
 List of Tables
Table 3.1: Proportional Distribution of Sample to each stratum............................................... 51
Table 3.2: Model Specification of Variables. ........................................................................... 53
Table 3.3: Reliability Test of Variable’s Using Cronbach’s Alpha .......................................... 54
Table 4.1: General Background Information of Respondents................................................... 56
Table 4.2: Extrinsic factors ....................................................................................................... 59
Table 4.3: Intrinsic factors ........................................................................................................ 61
Table 4.4: job satisfaction ......................................................................................................... 61
Table 4.5: Descriptive statistics ................................................................................................ 63
Table 4.6: Correlation matrix of dependent and independent variables ................................... 64
Table 4.7: Autocorrelation Test ............................................................................................... 67
Table 4.8: Test of Multicollinearity .......................................................................................... 68
Table 4.9: Model Summary....................................................................................................... 80
Table 4.10: ANOVA table ........................................................................................................ 70
Table 4.11: Regression output................................................................................................... 71

ix
 List of Figures

Figure 2.1: Conceptual frame work ......................................................................................... 18

Figure 4.1 Homoscedasticity Test ............................................................................................. 67
Figure 4.2: Normality Test ........................................................................................................ 69

x
 List of Acronyms

EIC Ethiopia Insurance Corporation

MSQ Minnesota Satisfaction Questionnaire
PCA Principal Component analysis
SPSS Statistical Package for Social Sciences

xi
 CHAPTER ONE

INTRODUCTION

The purpose of this research was to determine the factors that affect employee job satisfaction of
EIC. This chapter provides Background of the study, Statement of the Problem, Research
Questions, Objective of the Study, Significance of the Study, Delimitation/Scope of the Study,
Organization of the Study & Definition of Terms.

1.1 Background of the study

Human capital is perceived as one of the most dynamic assets for the enhancement and
development of any organization. It is crucial in making other assets useful and valuable in any
organization in order to generate the best return for the organization. In view of this, to obtain
improved human capital, any organization needs to execute appropriate actions in time. It is
evident that if employees are satisfied and are happy with the actions of their company, then they
will do their best for the best of their company (Al-Ali, et al., 2019).

The meaning of Job satisfaction is defined by many writers in different ways. For example, it is
considered as the the attitudes and feelings that people have about their jobs (Armstrong, M. &
Taylor, S. 2014). In another study, job satisfaction is considered as the level of gratification
and contentment that any employee has towards his/her job. Since it is important in
positively impacting employees, increasing their productivity as well as the overall
organizational success, it is considered in any organization as being a major driver which directs
any organization achieve its goals (Fahed-Sreih, 2020).

According to Locke (1976), job satisfaction is defined as a state of being in a positive emotion
which he considered arises from a person’s job or the experience of his/her job. Similarly, Locke
and Lathan (1990) define it as the pleasurable or the positive emotional state of being resulting
from the appraisal of a person’s job or job experience. On the other hand, lack of job
satisfaction can be considered as a predictor of giving up a job (Alexandar et al., 1998). Workers
may switch from public to private sector jobs and vice versa.
1
At other cases, the transition is from one career to another that is thought to be a better fit. This
is typical in countries dealing with a shrinking economy and its consequences, such as bad
working conditions and late salary payments (Nwagwu., 1997). Job satisfaction significantly
influences organization behavior. Most studies have indicated that job satisfaction positively
affects employee working performance and organizational commitment, and negatively
influences employee turnover (Agarwal and Ferratt, 2001; Fraser, 2001). Companies need to
know what factors need to be identified in order to have the knowledge of what cause both
satisfaction and dissatisfaction among employees in the intention of increasing employees
motivation and satisfaction for organizational commitment (Herzberg, 1966; Mc Gregor ,1961).
Ethiopian Insurance Corporation also encounters a problem of determining the factors which can
lead to its employees’ job satisfaction. Due to this, the corporation first need to properly identify
the current factors that affect its employees’ job satisfaction so that to take appropriate measures to
address the gap.

1.2 Statement of the problem

Many organizations in both the general public and indeed the private sector take into account
their workers as an important asset within the organization towards the attainment of the
structure goals. However, the same objectives can only be earned from a satisfied workforce.
Thus worker satisfaction is of significance if organizational goals are to be attained. Worker job
satisfaction is related to increased productivity, organizational commitment, lower absence and
turnover, and ultimately with increased organizational effectiveness (Logsdon & Ellickson,
2001).

Job satisfaction is a worker’s sense of achievement and success on the job. It is generally
perceived to be directly linked to productivity as well as to personal well-being. Job satisfaction
implies doing a job one enjoys, doing it well and being rewarded for one’s efforts. Job
satisfaction further implies enthusiasm and happiness with one’s work. Job satisfaction is the key
ingredient that leads to recognition, income, promotion, and the achievement of other goals that
lead to a feeling of fulfillment (Kaliski, 2007).

2
Job satisfaction is an important issue in running of institutions and one of the key signs of how
well an organization is. Thus, organizations attach great importance to the job satisfaction issue.
Satisfaction levels of employees are vital for organizations, since satisfied employees contribute
to success and enduring achievement of the organizations (Ahmed, 2010). The efficiency and
performance of an organization depends on its employees and surely "a happy worker is an
effective one”. It is not imaginable for advancement of an organization without considering
developing of the staff’s abilities and refining their working conditions. Organizations which
have very satisfied employees are without doubt more fruitful (Smith, 2017).

There are some academic works related to employees’ job satisfaction in Ethiopia. However,
most of them focused on education and health sectors, among others. For instance, studies
performed by Mengistu (2012) and Gebremichael and Rao (2013) focused on employees’
satisfaction in education sector but studies by Mengistu and Bali (2015) focused on health
professionals. As per the studies, low job satisfaction was commonly observed in different public
medical centers in Ethiopian hospitals because of lack of mentoring support in the work places.
Another study on Ethiopian anesthetists’ job satisfaction level and factors affecting their level of
job satisfaction implicate a problem of improper supervision to be one of the reasons for
employees’ job dissatisfaction (Desalegn, 2015).

A study conducted on “Assessment of job satisfaction among pharmacy professionals in south

west of Ethiopia shows that poor salary and poor management might be the major factors for
dissatisfaction and consequently migration of health professionals in Ethiopia” (Ahmed et al.,
2013). Job satisfaction study in public sectors of health workers in Addis Ababa, Oromia,
Amhara and Somali also shows high level of dissatisfaction in relation to financial rewards
(Hotchkiss et al, 2015).

There are a lot of indicators showing that EIC has faced problems with regard to employees’ job
satisfaction. The researcher could observe that in Ethiopian Insurance Corporation, many
employees complained regarding the management practice of the company in satisfying their
needs. Employees within the corporation are heard complaining that Company structures as well
as salary structure are not timely done as compared to other financial organizations; such as, The
Commercial Bank of Ethiopia and The Development Bank of Ethiopia.
3
In fact, the National Bank of Ethiopia previously had issued a directive requiring all financial
institutions, both government and private, to set aside a minimum of 2% of their recurrent budget
for training and development in order to encourage businesses to invest in human resources
development and to report on their efforts. This directive was issued because the majority of the
enterprises under its oversight are unaware that having productive and engaged employees who
provide a lasting competitive advantage necessitates a significant investment. In addition to that,
a recent survey by the Corporation shows that customers are also complaining about getting
quality service from employees (Masresha, T. 2018). Due to these reasons, those dissatisfied but
experienced employees had been leaving to the private insurance industry and became its own
competitors. It is clear that if this problem is not solved accordingly, the Corporation’s services
e v e n t u a l l y may decline and makes it lose its market share in the insurance industry.

The purpose of this study work is to identify the characteristics that influence employee job
satisfaction in general, with a focus on those that are more significant in the context of EIC.
Employee job satisfaction is influenced by a variety of factors, according to a large body of
literature. Failure to pay attention to these issues can result in employee dissatisfaction, which
can manifest as turnover, absenteeism, lost productivity, poorer morale, and startling drops in
performance. As a result, it's critical to figure out what elements influence employee job
satisfaction.

1.3 Research questions

This study paper is led by the following research questions:-

1. What are the intrinsic factors that affect employee job satisfaction in Ethiopian Insurance
Corporation?
2. What are the extrinsic factors that affect employee job satisfaction in Ethiopian Insurance
Corporation?
3. Which factors have more effect on employee job satisfaction in Ethiopian Insurance
Corporation?

4
1.4 Objective of the study
This study has general and specific objectives.

1.4.1 General objective

The general objective of the study is examining factors that affect employees’ job satisfaction in
Ethiopian Insurance Corporation.
1.4.2 Specific objectives

1. Determining the intrinsic factors that affect employee job satisfaction in Ethiopian
Insurance Corporation.
2. Analyze the extrinsic factors that affect employee job satisfaction in Ethiopian Insurance
Corporation.
3. Analyzing the factors which have more effect on employee job satisfaction in Ethiopian
Insurance Corporation

1.5 Significance of the study

It is believed that the study can identify the factors that affect employee job satisfaction in EIC
and that can help the corporation take appropriate actions to keep employees being satisfied and
perform to the best of their capacity. Moreover, the results of the study can be used as an input
for further research studies and also will enhance the researcher’s knowledge in the areas of job
satisfaction. Investigating and analyzing the elements that influence employee job satisfaction,
particularly in the context of businesses, helps to explain the idea and its practical implications.
The research outcome can be used in a variety of ways. By offering a conceptual framework and
identifying the factors, it benefits businesses to have focus on employee job satisfaction, and
develop a strategy to remedy the job satisfaction problem.

1.6 Delimitation/Scope of the study

This study is delimited to examining the factors that affect employees’ job satisfaction in
Ethiopian Insurance Corporation. Despite the fact that there has been a rush of research and
studies undertaken since the invention of this construct, having enough research and studies

5
conducted in the Ethiopian setting in general, and in the Insurance Industry in particular, would
be a difficulty. Targeted employees' willingness to participate in questionnaire responses would
also potentially be a problem.

The scope of methodology is limited to conducting a survey through questionnaires that are
distributed to sample participants of professional employees of the corporation. Based on the
conceptual framework, the factors which would be emphasized are: intrinsic factors which are;
recognition & responsibility and extrinsic factors which are; salary, benefit, promotion & work
environment .The survey is restricted to Districts & Branches that are located in Addis Ababa
because of the fact that all Districts & Branches have similar characteristics & working
conditions so that it is believed that the research can be represented well by outlets located in
Addis Ababa.

1.7 Organization of the Study

This paper is organized to have five chapters; the introduction part of the paper chapter one
includes background of the study, statement of the problem, research questions, research
objectives of the study, significance of the study and scope/delimitation of the study. Chapter
two covers review of theoretical as well as empirical literature of the subject matter under
study. Under chapter three methodologies & the research design are discussed. Under chapter
four, the findings of the study are g o i n g t o b e presented, analyzed and discussed.
Finally, t h e summary, conclusions, and recommendations are going to be forwarded in chapter
five based on the research findings.

1.8 Operational Definitions of terms

Job satisfaction: - is an attitude towards work related condition in organization perspective
Supervision: - is the systematic and willing of supervisors to teach, coaching, and delegation of
authority and share of job knowledge.
Working condition: - Factors that affect employees’ wellbeing on operation or office: amount
of work, work facilities, tools, ventilation, temperature, and workspaces. Generally it means that
having all necessary materials to operate employees’ job activities.

6
Job security: - the attitude of employees in organization to the permanent status or the position
of having a formal secure appointment until retirement
Salary/reward: - is a payment for employees within organization for achieving the expected
task with in a specific time.
Intrinsic Factors; Intrinsic factors are the non-physical one. They cannot be seen or touched but
are emotionally connected with the employees. In other words, intrinsic factors can be defined as
the feeling of contentment one finds in the completion of any task.
Extrinsic Factors; an extrinsic factor is a tangible and visible reward given to an individual or
an employee for achieving something. They usually have monetary value such as a salary, bonus,
award, or public recognition.

7
 CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.1 Introduction
In this chapter, a literature review in relation to employees’ job satisfaction was discussed. The
first part of this chapter is focused on the concept of job satisfaction and review of theoretical
literature. The second part of this paper has covered the empirical literature review in relation to
job satisfaction. The final part of this chapter states the conceptual framework.

2.2 Theoretical Literature

2.2.1 Definition of Job Satisfaction

Job satisfaction has been defined by different authors in numerous ways. In this paper the widely
cited definitions of job satisfaction are going to be analyzed as follows.

Hoppock (1935), in his classic research of job satisfaction defined job satisfaction as the
collaboration of the physical, the psychological and the environmental factors that make any
person feel the sense of being satisfied. His study shows that a person’s internal sensation plays a
greater role in making him/her feel satisfied.

People may have positive or negative attitudes towards their job. The positive attitude can be
considered as favorable attitude which implicate the person’s satisfaction but the negative
attitude on the other hand is considered as the negative attitude which implicate dissatisfaction.
Generally speaking job satisfaction is a person’s feelings/attitudes regarding his/her job
(Armstrong, 2006). Job satisfaction is the attitudes and feelings people have about their work.
Positive and favorable attitudes towards the job indicate job satisfaction. Negative and
unfavorable attitudes towards the job indicate job dissatisfaction (Armstrong, 2006).

Employees' level of comfort with their jobs is referred to as work satisfaction. Beyond their
regular tasks, this includes how happy they are with their bosses and team members, how happy
they are with the organization's rules, and how their job affects their life. Employee job

8
satisfaction is the fulfillment, gratification, and enjoyment that come from work. It is not the
money or the fringe benefits, but the feelings employees receive from the work itself (Asegid, et
al., 2014).

2.2.2 Importance of job satisfaction

Many companies have a problem of keeping their experienced & developed employees due to
their lack of a better understanding of the intrinsic and extrinsic satisfaction factors of their
employees (Garg, et al.,2018).

2.2.3 Theories of job satisfaction

When mentioning Job satisfaction theories, it is clear to observe that there are similarities with
motivational theories. The frequently mentioned theories in this area include: Maslow‘s needs
hierarchy theory; Herzberg‘s motivator hygiene theory; Aldefer-ERG theory; McClelland’s Need
Theory; Vroom’s Expectancy Theory, Locke’s Goal- Setting Theory, Adams’ Equity Theory;
Job Characteristic Theory and the dispositional approach. These theories are discussed in the
following part of this sub title.
2.2.3.1 Maslow‘s needs hierarchy theory
Maslow‘s needs hierarchy theory is one of the basic motivation theories. These needs are
classified as deficiency needs meaning physiological and safety needs and growth needs
meaning belonging, self-esteem and self- actualization needs. As per his explanation if the
deficiency needs are not satisfied then the individual will feel the gap and that in turn will
affect his/her development (A, Lemma. 2020).
2.2.3.2 Herzberg‘s motivator hygiene theory

Herzberg (1959) has discussed motivation from two angels of job satisfaction namely;
motivators and job dissatisfaction as hygiene factors. It is clearly stated that job satisfaction can
increase employees’ satisfaction while job dissatisfaction can decrease employees’ satisfaction
which leads to poor working performance. Since job satisfaction is a process that an individual’s
feeling of good concerning his/her work, it can hold for instance, job security, high salary,
recognition and interest in one’s work, (Shaikh, S. H. et al.,2019). As per Herzberg, job
dissatisfaction is one part of the two-factor theory. It can however be improved by creating
9
satisfaction in the organization. But according to him, this is only possible when managers exert
motivating factors (Yuosef, 2000). In the Herzberg’s two-factor theory, individuals are
motivated by lower-level needs (extrinsic or hygiene factors) due to elimination of
dissatisfaction in order to do better performance. Robbins (2009) stated that intrinsic or
motivation factors (i.e. recognition, responsibility) should be there to motivate and enhance
employee’s performance. Examples of hygiene factors include the company, organizational
policies, administration, salary, status, job security, working conditions, personal life, and
interpersonal relations (A, Lemma. 2020).

On the other hand, Herzberg’s motivation-hygiene theory is also criticized on some points.
Theory does not clarify the differences between the satisfaction and dissatisfaction. These two
factors, called “motivators” and “hygiene”, conclude differently from population to population.
Any factor that causes dissatisfaction may contribute to satisfaction in any other condition or
any other country. In addition, this difference is hard to put into effect, since people have
different needs and expectations. According to researcher having opposite view, level of
satisfaction cannot be predicted with the only motivator or hygiene (Stello, 2011).

There are however, some criticisms regarding Herzberg’s motivation-hygiene theory. These are
because the theory doesn’t clearly separate satisfaction and dissatisfaction. These factors may be
accepted in a different way from one group of people to another. This is explained as being
factors that bring dissatisfaction in one group of people may bring satisfaction in another group
(Unutmaz, S. 2014).
2.2.3.3 Aldefer-ERG theory
As per Alderfer, C. P. (1989), the ERG theory states that the order of need is different for
different individuals. He further developed the A. Maslow's Hierarchy of Needs into a three
factor motivation models which are called the ERG model namely; existence, relatedness and
growth. In another study, ERG Theory needs the understanding of the factors that affect the
individual behavior. It is considered to be one of the other approaches that focus on the intrinsic
factors of an individual which are responsible in making him take specific actions (Ivancevich, J.

10
M.,et al., 1990). As per the study of Caulton, J. R. (2012) ERG Theory can be used to study
needs and family relationships and also performance and human right needs.

2.2.3.4 McClelland’s Need Theory

As per David McClelland there are three central motivational paradigms namely: achievement,
affiliation and power. The Theory states how the needs for authority, achievement and affiliation
affect people's actions in the context of management. David McClelland theory was based on
Henry Murray's (1938) list of motives and manifest needs study (Osemeke, M., & Adegboyega,
S. 2017)
McClelland’s research has identified the six characteristics of high need achievers as:
• They have a strong desire to assume personal responsibilities in order to perform a task;
• They try to set moderately difficult goals and take calculated risks;
• They also have a strong desire to get performance feedback?
• They have the need for achievement regarding attaining personal accomplishment.
• They are interested in challenging tasks.
• They don’t pass their responsibilities to others. Sinha,D. K, (2015)

2.2.3.5 Vroom’s Expectancy Theory

As Parijat, P., & Bagga, S. (2014) described, Vroom’s Expectancy Theory focuses on the
relationship between personal goals and organizational rewards. Employees’ personal goals can
be fulfilled by organizational rewards. It concludes that outcomes (organizational rewards) are
highly dependent on employees’ performance. In addition, employee’s perception of their effort
to contribute high performance of the company is considered very important. On the other hand,
the theory is criticized as being very complicated and with so many variables that makes it
difficult to implement. Robbins, S. P. (2010) indicated that the theory is more of idealistic since
there are few individuals who can clearly perceive the relationship of effort with performance
and performance with company reward.
2.2.3.6 Locke’s Goal- Setting Theory
As per this theory goal setting is a very important part of job satisfaction. The theory is
developed by Locke and Latham. In goal setting process, if people want to be satisfied on
11
emotions and desires they need to get their goals. The theory further states that, for a goal
setting to be effective, consistent feedback must be there. Here, supervisors or managers need
to evaluate the cause of undesirable performance of employees rather than applying
punishment (Luthans, 1995).

2.2.3.7 Equity Theory of Adams

As Adams (1963, 1965) stated, in Equity Theory satisfaction is determined by the input &
outcome balance. He states that, employees aim to reach a balance between their inputs and their
outcomes. He considered inputs as factors such as, experience, educational level, ability & skill
responsibility, age and effort, and outcomes as such as performance, salary, good working
conditions, work insurance, promotion, recognition, status, and opportunity. Outcomes are also
explained as being rewards that a company gives to its employees; such as salary and inputs are
those contributions rendered by the employees of the company (Huseman & Hatfield, 1990).

2.2.3.8 Job Characteristic Theory

The Job Characteristics Model (JCM) is developed by Hackman and Oldham (1980) is
understood to be the most powerful model in researching job design (Thomas-Shaw, S. A. 2004).
The authors had first proposed then tested the theory of work redesign which targeted the
characteristics of jobs. The model elaborates how the characteristics of people and the
characteristics of jobs interact to determine when an enhanced job will lead to favorable
outcomes. The model also shows the time of failure expectation of such efforts (Thomas-Shaw,
S. A. 2004). According to Atasoy (2004). The theory has the most widely accepted job
characteristic approach with the following job attributes namely: task identity, feedback, variety,
dealing with others friendship opportunities and autonomy.

2.2.3.9 The dispositional approach

This Theory which is also known as the Trait Theory is the study of human personality and
human behavior. Some employees can be consistently more satisfied with their jobs than
others. Employees who love their jobs may keep doing it even if they have another job
(Borghini, A., & Williams, N. E. ,2008). The theory focus on the measurement of traits, that

12
 directs to the higher understanding of human personalities. Through the passage of time, these
traits become relatively stable based on the individual’s surrounding environment that can
influence his/her behavior.

2.2.4 Factors that affect job satisfaction

As Aziri (2011) explained, job satisfaction is affected by many factors such as: salary, nature of
work, development opportunities, the management itself, work conditions and work groups. In
another study factors of job satisfaction are stated as: Manager’s concern for people, the job
design, employee compensation, work conditions, social relationships, long-range opportunities
which are perceived by employees, elsewhere perceived opportunities and levels of aspiration &
need achievement which all lead to either job satisfaction or dissatisfaction. Job satisfaction or
dissatisfaction also leads to the commitment to the organization or absenteeism, tardiness, strike,
etc. (Rue and Byars, 2003).

There is a distinction between intrinsic factors (i.e. recognition, responsibility) and extrinsic
hygiene (i.e. job security, wage, and working environment) variables, according to the Two-
Factor Theory of Job Satisfaction. Higher satisfaction and performance are facilitated by intrinsic
factors, whilst the absence of extrinsic factors helps to decrease dissatisfaction. (Goetz and
Champbell.2012)

Salary
Pay is the leading and most important feature of satisfaction for almost each type of employee in
public, private, small, medium and large institutions and that reasonable pay system is related
with job satisfaction (Bajpai and Srivastava, 2004). When a worker is paid well for the services
presented to the employer, it displays the worker that their presence in the organization matters
(Chiu et al., 2002). For Saeed et al., (2013), the significance of money in employee job
satisfaction should not be misjudged subsequently everyone wants money and all employees
work so that they can make money. The core drive after all of this is nothing but money. So,
money and compensation play a significant role in the job satisfaction of the employees.

13
Work environment
According to Kawada & Otsuka (2011) an environment is anything that aids and supports
employees to be or to implement in a definite way. It is one of the significant guides of
determining their working comfort and their satisfaction. Subsequently it is a fact that employees
expend most of their time in an organization, it is very essential for organizations to familiarize
and keep suitable working conditions. Saeed et al., (2013), working conditions have recognized
to be a strong effect on the job satisfaction of employees. Additionally, the physical design too,
to some extent affects the job satisfaction of employees and that work greatly depends on the
relationship between employees and the environment; hence they consider a part of the working
conditions that affect job satisfaction.

Staff relation
Several studies conducted among healthcare professionals reveals the importance of
interpersonal relationships in job satisfaction, and show that they lead to increased patient safety,
improved quality of care and greater patient satisfaction. Highly functioning teams have also
been shown to offer great support to inexperienced staff. Specifically within healthcare, there has
been arising need to improve teamwork. Introducing team-building activities has resulted in
stronger interpersonal; relationships, improved staff communication, understanding and clarity of
roles as well as greater job satisfaction.

Job security
Employee’s personal feelings about future security of engagement condition define job security.
The feelings however vary from person to person. The aftermath of real practices in the
employment marketplace are those job security feelings (Emberland & Rundmo, 2010). If
employees are satisfied and gratified with the job security they will spontaneously be dedicated
to and faithful to their organizations (Lane et al., 2010). An employee who is satisfied with his
/her job security has a tendency to achieve well than the one who is not (Ruvio, 1996).

14
Reward and recognition
Recognition is a process of giving an employee a definite position within an institution (Danish
et al., 2010). Milne (2007) emphasizes that although “recognition” is still an important
management too, it is somewhat diverse. Usually it is a non-financial prize given to employees
selectively, in gratitude of high level of conduct or accomplishment that is not dependent on
achievement of a given target. Recognition can be as simple as giving someone response on what
they have done right, or just saying “thank-you”.

Promotion
Promotion refers to advancing in career or career development. There is an agreement among the
researchers that job satisfaction is strongly associated to opportunities for promotion (Pergamit &
Veum, 1999). The positive relationship between job satisfaction and promotion is dependent on
perceived fairness by employees (Kreitner & Kinicki, 2001).

2.3 Empirical Literature Review

As Tremblay and others discovered, a positively influencing work environment is characterized
by setting clear expectations of employees’ roles and a consistent support from supervisors.
These are believed to positively affect the intrinsic as well as extrinsic motivation of employees
to get organizational objectives. On the other hand, if the work environment allows insecurity of
jobs, employees may act just to get their salaries without the self-motivating factor (Tremblay. et
al., 2009).

Kanwal and Majid (2013) investigated the factors which are the major contributors towards
employee’s job satisfaction. It was found that low pay, long working hours, bonuses and rewards
and effective communication were the contributors towards job satisfaction or dissatisfaction and
have impact to the employees intention to leave or stay in the organization. Nyamekye (2012)
argued that non-monetary benefits had a direct bearing on employees’ job satisfaction. The
employees were dissatisfied with supervision and non-participation in the decision making
process, these may influence their intention to leave the job.

Girmachew (2019) investigated a study on to make comparison of job satisfaction level in

between public and private bank employees. Job satisfaction is attitude of employees towards
15
their work. The study used MSQ standardized questionnaire. The questionnaire has 20 items
with 5 likert scale. The validity of the questionnaire was checked by the designers of these
questionnaires. In this study SPSS version 21 used. The researcher used means to make
comparison and used t-test to check whether their difference is significant or not. In addition the
researcher used levan’s test to check the homogeneity of variance. The result of study is public
bank employee satisfied more in overall satisfaction supervision, and promotion.

In the Woldia district, Haile and Premanandam (2017) investigated the predictive capacity of job
satisfaction characteristics for private and governmental employees, as well as job satisfaction
discrepancies between the two organizations.

Workers from 135 public and 189 private organizations participated in the survey. were
participated. As the findings of the study indicated, statistically significant mean difference
observed between private and public workers job satisfaction of communication and relationship,
job security, pay and promotion and fairness. The job satisfaction factors correctly classified the
private and public organizations. The likelihood ratio of the study indicated, privately employed
workers are 1.8 times more likely satisfied in pay and promotion of their respective organization
than the public worker's job motivation of pay and promotion. In the same vein, public employed
workers are 1.3 times more likely satisfied in job security of their organization than the privately
employed workers.

Ijaz et al. (2015) investigated a study the impact of different non-monetary rewards in the eyes of
the employees at banking sector of Pakistan. Quantitative data is collected through
questionnaires from a sample of 249 respondents. Analysis is done using SPSS 17.0 and the
results suggest that there exists a positive correlation among the non-financial rewards and job
satisfaction. Different non-financial rewards like learning & promotions, trainings, work
autonomy, work life balance, working environment etc play an important role in employee’s
satisfaction towards their jobs. It is concluded from the study that if the organizations want to get
a quality output from their employees.

Hossain (2014) investigated a study on the relative importance of job satisfaction factors and
their impacts on the overall job satisfaction of employees. In this study the targeted population is
16
employees of Bank. The Banks include private and public Bank. The data was collected and
administered by means of a structured questionnaire. The study showed that organizational
factors such as work conditions, pay, fairness, and promotion significantly influenced employee
job satisfaction in Bank. However, individual factors such as age and gender did not significantly
influence employee job satisfaction in Banks. The overall job satisfaction of the bank officers is
at the positive level appeal to their customers. In such situation, job satisfaction of bank officers
becomes an important issue that has to be taken care of in order to achieve ultimate goals of the
banking sector in Bangladesh.

Timkete (2018) studied on to identify the top most determinants of job satisfaction among
employees of Abay bank using a sample of 150 employees working in Addis Ababa. A
combination of principal component analysis (PCA) and OLR models were used. Out of the 13
variables initially identified, 5 principal factors were drawn using PCA. Based on the earlier
findings of PCA, OLR analysis was conducted on the five prime factors. The findings
demonstrate that 4 factors are statistically significant with evidence that remuneration and fringe
benefits and effective leadership are positively linked with job satisfaction wherein unmet job
expectation and workload are negatively correlated with job satisfaction. However, evaluation
and promotion appeared statistically insignificant. The findings highlight the need for
establishing conducive working environment and recommend the bank to stay attuned in
weighting workers economic status.

There has been a lot of research on job satisfaction for over a century from various angles (Judge
et al., 2017). Referring the study performed by Gedif, G & others; salary, marital status,
leadership style and supportive supervision were observed as being the determinant factors of job
satisfaction. Employees who were paid high salary were found to be more satisfied with their job
as compared to the others who didn’t get such payment (Gedif, et al., 2018).

As per the study of Walkowiak and Staszewski (2019), salary, company policies and working
conditions were the factors that highly affected employee’s job satisfaction. It was also evident
that employment security, rendering service to other individuals and being active on one’s job
can positively influence the level of job satisfaction. Strong correlation was exhibited between

17
job seniority and the feeling of accomplishment from the job. However, there was no correlation
observed between satisfaction with pay and level of education, age and seniority.

Koorella and Perumal (2019) investigated a study on the impact of job satisfaction of an
employee. This study also finds out various factors underlying employee satisfaction. To achieve
the aim of the study questionnaire survey was used. The results show that there is direct impact
of all the factors in the organization. Job satisfaction is related to different Socioeconomic and
personal factors, such as: Age, Sex, Incentives, Working Environment, Education, duration of
work etc. The paper highlighted different factors affecting job satisfaction in pharmaceutical
company in Hyderabad, India.

Kaur et al. (2020) conducted a study on the factors influencing job satisfaction in banking
Industry. Factors which mostly influenced the job satisfaction are Job security, job rotation ,job
enrichment, salary, promotion, working condition, nature of work, benefits, relationship with co-
workers, supervision support, demographic factors, working experiences, quality of
management, attitude of employee, career opportunities, communication, higher education level,
motivation, long term employment. Some other factors are style, Culture, Job Environment,
Employee Improvement, age, gender.
Biniyam (2021) conducted a study to examine the determinants of police employee’s job
satisfaction in Dire Dawa Administration Police Commission. Cross - sectional survey
quantitative designs adopted to collect the relevant data and information regarding the
determinants of police employee’s job satisfaction. Descriptive statistics such as means and
standard deviation and inferential statistics such as Ordinal Logistic Regression (O logit) model
analysis was used to establish the determinants factors that affect employee’s job satisfaction by
the predictor variables. Among the major findings of the study, Working Condition and Job
Enrichment practice were not statistically significant variables on determinants of police
employee’s job satisfaction.

2.4 Conceptual framework

In order to get the research objectives the researcher has applied the twenty item short form of
Minnesota Satisfaction Questionnaire (MSQ) to measure and determine employee’s job
18
satisfaction at Ethiopian Insurance Corporation (EIC). The researcher used the Minnesota
Satisfaction Questionnaire (MSQ) in order to use the advantage of effective measurement of the
Intrinsic as well as the extrinsic job satisfaction components. As per Spector, (1997) and
Herzberg et al (1959)., Intrinsic job satisfaction refers to how people feel about the nature of the
job tasks themselves, whereas extrinsic job satisfaction refers to how people feel about the task
outside the work itself. In this study employee job satisfaction is going to be taken as
dependent variable while, intrinsic and extrinsic factors of job satisfaction are to be taken as
independent variables.
Independent Variables Dependent Variable

Extrinsic Factors
Payment
Benefit
Promotion
Work environment
Job satisfaction

Intrinsic Factors
Recognition
Responsibility

Figure 2.1: Conceptual frame work, the relationship between intrinsic and extrinsic factors of job
satisfaction and employees’ job satisfaction based on Herzberg (1959) theory.

19
 CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Introduction

Background of the organization

The Ethiopia Insurance Corporation (EIC) was established in 1976 by proclamation No
68/1975 and governed as per the public enterprise proclamation No.25/1992. The corporation
was established to engage in business objectives of provision of insurance services and any
other related activities which makes it attain its purpose. The Corporation has been providing
insurance services for its customers for the last 46 years being the only insurance service
provider (for 19 years, from 1976-1994) before becoming a competitive insurance service
provider among the other private insurance providing companies in the country (from
1994 to present day). The Ethiopian insurance industry has been opened-up for private
insurance companies following the liberalization of the financial sector in 1994.
EIC provides life, property and liability insurance policies. Known for its strong and reliable
financial position, long standing and well-built affiliation with many international insurance
organizations and associations. EIC has maintained a comprehensive range of out ward
reinsurance contract, and accepting inward reinsurance (including Co-insurance) business.

Moreover, the Corporation has been involved in different investment area. Previously, the
corporation had executed a business process re-engineering in its core and support process to
bring about institutional transformation, which in turn would enable to boost the level of
customer satisfaction be competitive in both the domestic as well as international insurance
markets to achieve its vision (i.e. To be World Class Insurer in 2025; EIC Annual
Report of the year 2013/2014). Above all reasons it needs to boost its employees’ level of
job satisfaction to achieve its goals.

19
 In this chapter the methodological elements of the study that include the research design,
the research approach, the source as well as the type of data used, the method of data
collection, target population and sampling design, the method of data analysis and the
ethical considerations followed are discussed.

3.2 Research Design

A research design is a plan or a blueprint of how to design conducting the research (Bobbie
and Mouton, 2001). The function of research design is to provide the collection of relevant
evidence with minimal expenditure of effort, time, and money (Kothari, 2004). In order to
answer the research questions and achieve the stated objectives, the study has used a
combination of descriptive and explanatory research designs. Therefore, in order to analyze
the existing situation under consideration, descriptive research and explanatory design was
employed. On the other hand, the researcher also used explanatory research designed to
collect raw data and create data structures and information that allow the decision maker or
researcher to model cause-and effect relationships between two or more decision variables
(Hair et al., 1998). Descriptive survey design helped the study to gather varieties of data to
achieve the objectives of the study by describing the situation as it is. It helped in assessing
the practices by addressing the size of population and describes the situation. In terms of data
collection type and source, the researcher employed survey research technique using
structured; enumerators administered questionnaire to obtain first hand qualitative and
quantitative data from target population.

The aim of this research is to determine which factors are important for employee job
satisfaction in Ethiopian Insurance Corporation.

3.3 Research Approach

In this research paper, quantitative research approach is used and survey was conducted
through questionnaires. The Minnesota Satisfaction Questionnaire (MSQ) with the short
version of 20 questions was also developed in order to collect relevant information from the
respondents to get the general job satisfaction of employees. The questionnaire was

20
constructed based on the 5-point Likert s c a l e . The twenty questions were ranked on a five
point scale (very dissatisfied, dissatisfied, neither, satisfied, and very satisfied). This tool is
employed to measure the intrinsic factors of satisfaction, the extrinsic factors of satisfaction
as well as the general satisfaction levels of employees. The average from all the answers on
each question was computed and the higher the score mean the higher the level of job
satisfaction in this aspect of employees work. The MSQ is equipped with short information
regarding respondents, containing questions about their gender, age and professional
experience (Walkowiak, D., & Staszewski, R., 2019).

3.4 Source and type of data

The research has used the combination of primary and secondary data sources.

3.4.1 Primary Data

Primary data was collected by using survey questionnaire which was distributed to
management members and professional employees in the Head Office, Districts and
Branches.

3.4.2 Secondary Data

The secondary data collection was from review of literature of journals, articles, and other
relevant documents, EIC’s corporate strategy and annual reports of the corporation.

3.5 Data Collection method

The main data gathering instruments were questionnaire and document analysis. The
researcher has used questionnaire to get quantified result. To maintain the data collection
instrument to be valid and reliable, the researcher has employed different techniques prior to
collection and before analysis.

3.5.1 Questionnaire
Structured Questionnaire was used in order to reach wide range of respondents in order to
acquire information to examine and explain the relationships between variables. The survey
questionnaire has two parts; the first part contains demographic variables which indicate

21
profile of participants of the survey; such as gender, age category, marital status, highest
qualification and lengths of service in the company. The second part comprises close-ended
question statements, so as to measure the variables of the study. The questions were framed
using Likert’s scale of measurement ranging from strongly agree to strongly disagree
(Strongly agree 5, Agree 4, Neutral 3, Disagree 2 and Strongly Disagree 1) & the MSQ
general satisfaction questions were ranked on a five point scale (very dissatisfied 1,
dissatisfied 2, neither 3, satisfied 4, and very satisfied 5).

3.6 Target Population, Sampling and Sampling Method

As of January 31, 2022 Ethiopian Insurance Corporation has a total of 1,766 employees. In
this study, employees of the corporation have participated. The target population included
the top management members at all level and professional employees working in Addis
Ababa excluding non-clerical employees like cleaners, drivers, and security guards since
these job positions are usually filled by outsourcing. As a result, the target population has
been lowered to 1,180 people. List of employee profile from the Human Resource data base
was used to determine the sample data. As per literature review, probability sampling was
assumed to be suitable to survey research methods since it is possible to make inferences from
the samples regarding the population (Saunders, et al., 2009).
The total number of professional permanent employees working in EIC is 1180 individuals.
Regarding the employee respondents, the researcher used Yemane’s formula (1967), in order
to determine the sample size of the population. This formula is reliable to 93% and has only 7
% margin error.

1180 1180
= = = = 173.99
1+ ( ) 1 + 1180(0.07 ) 6.782

Where:
n = the sample size
N = size of population
e = the level of accuracy (e = 0.07)

Accordingly, the number of sample items from the target population of 1,180 employees was
174. Since employee perception towards job satisfaction and its factor is presumed to vary
22
across employee types of an organization, the researcher has used proportional samples from
different departments or work units. Thus, in order to determine the number of sample items
from each stratum; the researcher has used the following formula. Furthermore, a probability
random sampling technique was adopted because it gives equal chance to everyone in the
samples.

Sample size = Number of staff in each stratum X 174 (total sample size)
Total Population

Table 3.1: Proportional Distribution of Sample to each stratum

no Name of the department Total Number Proportion

of Employees Sample
size
1 Top Management 8 2
2 Middle Level Management 64 9
3 First Line Managers And Officers 978 144
4 Clerical And Non-Clerical Employees 130 19
Total 1180 174

3.7 Method of data analysis

Data analysis is the computation of certain measures along with searching for patterns of
relationship that exist among the data group (Kothari, 2004). In this research data was
analyzed using descriptive statistics, comparing means, and regression analysis to provide
summaries of tables and figures. The collected data was analyzed using Statistical Package
for the Social Sciences (SPSS) for windows because it is broadly used computer software
which is employed to analyze quantitative data. SPSS can electronically store collected data;
generate descriptive statistical data for the responses, create graphical figures of
questionnaire data for the reporting and presentations; and analyze relationships between
responses to different questions.

23
 3.7.1 Descriptive statistics
The final report of the relevant demographic variables were produced through central
tendency measurements (frequency and frequency distribution, valid & cumulative
percentage, and comparison of mean). In addition, tabular explanations were used to present
the result with the help of SPSS.
3.7.2 Inferential statistical Analysis
In inferential statistical analysis, correlation and multiple linear regression methods are
utilized using statistical package for social sciences (SPSS) software. The use of these
statistical tools and methods of presentation are described below.

3.7.2.1 Correlation

Correlation (r) is used to describe the strength and direction of the relationship between two
variables. Since all variables are measured as an interval level, Pearson product-moment
correlation was used. Correlation “r” output always lies between -1.0 and +1.0 and if “r” is
positive, there exists a positive relationship between the variables. If it's negative, the
relationship between the variables is negative. While computing a correlation, the
significance level shall be set at 95% with an alpha value of 0.05 or a chance of occurrence of
odd correlation is 5 out of 100 observations.

3.7.2.2 Multiple Regression Analysis

Based on the developed conceptual of the expressed study, figure no 2.1 mathematically the
relationship between selected independent variable and dependent variable is expressed in the
multiple regression equation. Multiple regression analysis is a major statistical tool for
predicting the unknown value of a variable from the known value of variables. And it is about
finding a relationship between variables and forming a model. The Model for this study was
developed using five factors or predictors which have influences on employee job
satisfaction.

= + + + + + +

24
Where Y is the dependent variable and the independent variables are those which explain the
response ranges from X1 to X5.

Where: Y= employee job satisfaction

X1= payment and benefit
X2= promotion
X3 = work environment
X4 = Recognition
X5 = Responsibility
are the coefficients and the error term

Table 3.2: Model Specification of Variables.

No Independent variable Beta Coefficients (β) Independent variable
assigned by X
1 payment and benefit X1
2 Promotion X2
3 work environment X3
4 Recognition X4
5 Responsibility X5
Dependent variable Variable assigned by Y
1 Employee job satisfaction Y

3.8 Reliability Test

In order to ensure the quality of the research design, content and construct validity of the
study was checked. The content validity was verified by the advisor of this research, who
looked into the appropriateness of questions and the scales of measurement. The
questionnaire involved the six dimensions to measure employee job satisfaction based on the
selected independent variables. The questionnaire with five points rating scale was used.
Cronbach's alpha is one of the most commonly accepted measures of reliability. It indicates
that the extent to which the items in a questionnaire are related to each other Fubara and
Mguni, (2005). The normal range of Cronbach’s coefficient alpha value ranges between 0-1
25
and the higher values reflects a higher degree of internal consistency. Reliability is calculated
in such a way that it represents the reliability of the mean of the items, not the reliability of
any single item for instance as shown in the below factor loading table, all the latent variables
and their corresponding indicator variables consisted of multi-item questions. As reported by
Gliem and Gliem (2003), a single item question is not reliable to conclude as compared to
summated multi-item questions.

Table 3.3: Reliability Test of Variable’s Using Cronbach’s Alpha

Reliability Statistics

Variable Name Cronbach's Cronbach's No of items

Alpha Alpha based
Value on
No standardized
items

Independent variables

1 Payments and Benefit 0.788 0.787 7

2 Promotion 0.828 0.828 3
3 Working Environment 0.756 0.759 4
4 Responsibility 0.684 0.686 3
5 Recognition 0.852 0.852 3
Dependent variable
1 Job Satisfaction 0.878 0.908 20

Overall 0.945 0.946 40

Source: Own computation using SPSS of the survey, 2022

3.9 Ethical Considerations

The researcher has used all the information given by employees in a manner of
confidentially and full anonymity of the respondents’ identity. According to the Social

26
Research Association's (2003) Ethical criteria, the research shall be carried out in accordance
with ethical principles and standards. To encourage ethical reflection, 14 check lists are
offered. Informed permission, data protection, confidentiality, and anonymity are among the
usual protocols that must be followed. Participants must also be made aware of any risks or
potential advantages associated with the research endeavor.

27
 CHAPTER FOUR

DATA PRESENTATION, ANALYSIS, AND DISCUSSION OF

THE RESULT

4.1 Introduction
This study is about determining the factors which influence employee‘s job satisfaction at
work places, using Ethiopian Insurance Corporation as a case study. More than half of
Ethiopian Insurance Corporation professional employees are located in Addis Ababa,
especially in the Insurance Service Core process. The sample size for this study involved 174
staff working under different departments both at the managerial level and non-managerial
level. The data was analysed using computer based software SPSS 20.0 and the results have
been presented in tables and figures. The findings are provided in the context of descriptive
and as per the study objectives.

The data collection procedure for the research followed the following pattern: first,
respondents were contacted and asked for their consent to participate in the study; then, they
were informed about how confidentiality and ethical principles would be protected during the
research process. After that, total of 174 questionnaires were distributed to the respondents
and from that 160 (91.95%) questionnaires were collected through a self-administered survey
and 151 (86.78%) questionnaires were properly filled and ready for analysis. After that, the
data were entered into SPSS and the dataset was rechecked to ensure the accuracy of the data
entry. The minimum and maximum data values on each variable related to each case were
checked to detect any irregular or unusual data values. The chapter is structured along the
objectives of the study.

4.2 Demographic Information

The findings are presented in the context of Age, Sex, Education level, Working Experience,
and Work unit and also according to the findings gathered from the respondents on the
subject matter.

28
Table 4.1: General Background Information of Respondents
No. Item Frequency Percent Cumulative
Percent
1 Gender Male 95 62.9 62.9
Female 56 37.1 100.0
Total 151 100.0
2 Age 18- 25 years 4 2.6 2.6
26-35 years 86 57.0 59.6
36-45 years 46 30.5 90.1
46 & above 15 9.9 100.0
Total 151 100.0
3 Education Diploma 3 2.0 2.0
First Degree 106 70.2 72.2
Master’s (MA/MSc) 42 27.8 100.0
Total 151 100.0
4 Experience Below 5 years 34 22.5 22.5
6-10 years 57 37.7 60.3
11-20 years 36 23.8 84.1
Above 20 years 24 15.9 100.0
Total 151 100.0
5 Work unit General Insurance 35 23.2 23.2
Long Term Insurance 27 17.9 41.1
Finance & Investment 20 13.2 54.3
Information T (ITSM) 18 11.9 66.2
Human Resource 15 9.9 76.2
Legal 11 7.3 83.4
Business Dev. & Risk 10 6.6 90.1
Internal Audit 5 3.3 93.4
Others 10 6.6 100.0
Total 151 100.0

Source: Own computation using SPSS of the survey, 2022

29
Gender Distribution

The most important demographic variable that receives huge attention in job satisfaction
research is sex. A number of empirical studies on job satisfaction have suggested that female
workers have lower level of job satisfaction than their male counterparts because male
officials dominate most of the public organizations. The findings show that 95 (62.9 percent)
were male and 56 (37.1 percent) were female respondents as Table 4.1 demonstrates: The
results presented in Table 4.1 show that the majority of the respondents were male. This also
indicates that there are more male professional employees than female ones in the
Corporation. On the whole, there is gender imbalance among professional employees in the
organization.

Age Distribution

The commonly identified variable in the research on demographic characteristics is age.

Worker‘s age has been found to have a negative impact on worker‘s job satisfaction (Buzawa,
1984). This means that younger workers are more satisfied with their jobs than their senior
counterparts. In this study, respondents were asked to indicate their age in the appropriate
space provided. The result shows that the age group between 26 and 35 years were 86 (57
percent) respondents. This was followed by 46 (30.5 percent) respondents in the age group of
36 and 45 years, while the age group between 18- 25 were only 4 (2.6 percent) respondents.
The age group between 46 and above years had 15 (9.9 percent) respondents.

Educational Level Distribution

Another common demographic variable studied was educational level. Most of the researches
on the relationship between education level and job satisfaction yield consistent findings.
Especially Griffin, Dunbar & McGill (1978) found that workers with higher educational level
are tend to be more satisfied with their job than workers with lower educational level. The
study also set out to establish respondents’ level of education and found that the majority of
the respondents have a bachelor‘s degree as evidenced by 106 (70.2 percent), while 42 (27.8
percent) of the respondents have masters degree and 3 (2 percent) of the respondents have the

30
diploma level. This is an indication that about 70.2 percent of the professional staff of the
Corporation have the university education level of at least first degree.

Year of Service Distribution

The respondents were also asked to provide information on their work experience in the
Corporation. The selection of respondents for the purpose of this study was done with regard to
their duration of service. The findings show that the largest number of respondents had stayed
between 6-10 years of services within the Corporation constitute 57(37.7 percent). This is
followed by those respondents with 11-20 years of services who were 36 (23.8 percent), 34 (22.5
percent) of the respondents had spent below 5 years and 24 (15.9 percent) respondents had spent
over 20 years in the Corporation.

Place of Work Distribution

Regarding the work unit in the Corporation, the majority of the respondents were working in
General Insurance Service 35 (23.2 percent) and followed by Long Term Insurance Service
27 (17.9 percent), Finance & Investment 20 (13.2 perecent), Information Technology &
Service Management Directorate (ITSM) 18(11.9 perecent), Human Resource Management
Directorate 15(9.9 perecent), Legal Service Directorate 11(7.3 percent), Business
Development & Risk Management Office 10 (6.6 percent), Internal Audit 5 (3.3 percent) and
others 10 (6.6 percent).

4.3 Factors That Affect employees’ Job Satisfaction

In this section, the factors affecting job satisfaction are discussed. The study sought to
examine factors that affect employees’ job satisfaction in Ethiopian Insurance Corporation.
Job satisfaction factors were viewed in terms of payment and benefits, promotions, work
environment, responsibility and recognition as the independent variables and job satisfaction
as the dependent variable.

31
Table 4.2: Extrinsic factors
A. Payments and Benefit Mean Std. Dev.

My salary is equitable when compared with other Insurance Companies 3.25 .995
My salary payment is satisfactory in relation to what I do 2.95 1.106
I am satisfied by the Corporation’s pay grade 2.80 1.096
Salary adjustment or increment is made on reasonable time period 2.36 1.152
The Corporation pay Competent benefit in the Market 2.95 .900
Benefit and Bonus payment of the Corporation are matched ( Bonus based 3.20 .945
on Profitability of the Corporation is Matched)
The benefit system of the Corporation has effect on my satisfaction 3.50 1.015
B. Promotion
Everyone has an equal chance to be promoted 2.66 1.119
The Corporation’s promotion policy is clearly communicated to all 2.50 1.064
Employees
The existing Promotion motivate employees for high level of job 2.50 1.051
satisfaction
C. Working Environment
I am provided with adequate facilities and resources to do my job 3.02 1.086
effectively
The working condition like space, seating arrangement, ventilation, 2.78 1.171
lighting etc helped me to do my duties in better way
The Corporation provides flexible work hours to accommodate my 2.98 1.104
personal needs
All in all I am satisfied with the working condition of the Corporation 2.97 1.016

Source: Own computation using SPSS of the survey, 2022

The study finding under extrinsic factors shows that in achieving payment and benefits, the
benefit system of the Corporation has effect on my satisfaction has mean value of 3.5 & SD
1.015, My salary is equitable when compared with other Insurance Companies has mean value
of 3.25 & SD 0.995, Benefit and Bonus payment the Corporation are matched (Bonus based on
Profitability of the Corporation is Matched) has mean value of 3.2 & SD 0.945 and The
Corporation pay Competent benefit in the Market has mean value of 2.95 & SD 0.9 are
considered by the respondents to be the most important payment and benefit practices in the
Corporation. The findings of the study indicates that my salary payment is satisfactory in
relation to what I do (Mean = 2.95, SD = 1.106), I am satisfied by the Corporation’s pay grade

32
(Mean = 2.8, SD = 1.096) and Salary adjustment or increment is made on reasonable time
period (Mean = 2.36, SD = 1.152) are also important components of payment and benefit
practices in the Corporation.

With regard to achieving promotion in the organization, everyone has an equal chance to be
promoted (Mean = 2.66, SD = 1.119), the Corporation’s promotion policy is clearly
communicated to all Employees (Mean = 2.5, SD = 1.106) and the existing promotion
motivate employees for high level of job satisfaction (Mean = 2.8, SD = 1.051) show that
they were not well applied in the organization.

As per the table 4.2 the study finding shows that in achieving working environment, I am
provided with adequate facilities and resources to do my job effectively (Mean = 3.02, SD =
1.06), the Corporation provides flexible work hours to accommodate my personal needs
(Mean = 2.97, SD = 1.104), all in all I am satisfied with the working condition of the
Corporation (Mean = 2.97, SD = 1.06), the working condition like space, seating
arrangement, ventilation, lighting etc helped me to do my duties in better way (Mean = 2.78,
SD = 1.118) are important components of working environment in the organization.

Table 4.3: Intrinsic factors

Responsibility Mean Std. Dev.
1 Employees have clear job responsibilities in our organization 3.01 1.055

2 Employees participate in decisions making that has a positive 2.69 .967

effect on their job satisfaction
3 I perform my duty with full autonomy and freedom 3.22 .999
Recognition
1 I get credit for what I do 2.72 1.021
2 I receive constructive criticism(positive feedback)about my 2.81 1.016
work
3 The existence of recognition for good work, has given me an 2.82 .994
opportunity to Perform well

Source: Own computation using SPSS of the survey, 2022

33
The study finding shows that in achieving responsibility under intrinsic factors, I perform my
duty with full autonomy and freedom (Mean = 3.22, SD = 0.999), employees have clear job
responsibilities in our Corporation (Mean = 3.01, SD = 1.055) and employees participate in
decisions making that has a positive effect on their job satisfaction (Mean = 2.69, SD = 0.967)
are more important components of responsibility.

Regarding to recognition under intrinsic factors, the existence of recognition for good work, has
given me an opportunity to perform well (Mean = 2.82, SD = 1.016), I receive constructive
criticism (positive feedback) about my work (Mean = 2.81, SD = 0.944) and I get credit for what
they do (Mean = 2.72, SD = 1.021) are considered to be less important components in the
Corporation.

4.4 Job satisfaction

Table 4.4: job satisfaction
No Items Mean Std.
Deviation
1 Being able to keep busy all the time 3.21 .961
2 3.24 .892
The chance to work alone on the job
3 The chance to do different things from time to time 3.15 .943

4 The chance to be "somebody" in the community 3.11 .888

5 The way my boss handles his/her workers 3.25 1.021
6 The competence of my supervisor in making 3.24 .950
decisions
7 Being able to do things that don't go against my 3.16 .924
conscience
8 The way my job provides for steady employment 3.23 .844
9 The chance to do things for other people 3.40 .857
10 The chance to tell people what to do 3.40 .841
11 The chance to do something that makes use of my 3.37 .984

34
 abilities
12 The way company policies are put into practice 2.92 .949
13 My pay and the amount of work I do 2.89 1.036
14 The chances for advancement on this job 2.84 .987
15 The freedom to use my own judgment 3.12 .993
16 The chance to try my own methods of doing the job 3.32 2.554
17 The working conditions 3.19 .991
18 The way my co-workers get along with each other 3.47 .908
19 The praise I get for doing a good job 3.05 .982
20 The feeling of accomplishment I get from the job 3.15 .943
Source: Own computation using SPSS of the survey, 2022

As per the above table the study finding that shows job satisfaction in the Corporation: The
way my co-workers get along with each other (Mean = 3.47, SD = 0.908), The
chance to do things for other people (Mean = 3.4, SD = 0.841), The chance to tell
people what to do (Mean = 3.4, SD = 0.841), The chance to try my own methods
of doing the job (Mean = 3.32, SD = 0.254), the chance to do something that makes
use of my abilities (Mean = 3.4, SD = 0.841), the chance to work alone on the job
(Mean = 3.24, SD = 0.892), the competence of my supervisor in making decisions
(Mean = 3.24, SD = 0.950), the way my job provides for steady employment (Mean
= 3.23, SD = 0.844), and being able to keep busy all the time (Mean = 3.21, SD =
0.961) are observed to be more important components of job satisfaction in the Corporation.

The findings of the study also indicates that, the chances for advancement on this job (Mean
= 2.84, SD = 0.987), pay and the amount of work they do (Mean = 2.89, SD = 1.036)
and the way company policies are put into practice (Mean = 2.92, SD = 0.949) are less
important components of job satisfaction in the Corporation.

35
4.5 Descriptive statistics of the variables

As presented in the table below, the descriptive statistics of payment and benefits,
promotions, work environment, responsibility and recognition presented as the independent
variables and job satisfaction as the dependent variable. The results in the table show that
payments and benefits has the highest mean score of 3.00 followed by responsibility with an
overall mean score of 2.97 and the relatively low overall mean score was recorded by
promotion which is 2.55. Regarding to the dependent variable the summery statistics shows
that job satisfaction had relatively highest mean score value which is 3.18.

Table 4.5: Descriptive statistics

Descriptive Statistics
N Minimum Maximum Mean Std.
Deviation
Payment & Benefit 150 1.14 4.57 3.0067 .68609
Promotion 151 1.00 4.67 2.5541 .93006
Working Environment 151 1.00 5.00 2.9371 .83278
Responsibility 151 1.00 5.00 2.9713 .78875
Recognition 151 1.00 5.00 2.7859 .88723
Job Satisfaction 151 1.30 4.65 3.1848 .59394
Valid N (listwise) 150

Source: Own computation using SPSS of the survey, 2022

4.6 Correlation analysis

It is a statistical measure that shows the strength of association between different variables
within a study and relative movement of variables as well. The value of correlation
coefficient is needed to be within -1 to +1. The table below shows that correlation coefficients
of this research. The Pearson’s correlation coefficient analysis helped the researcher to better
understand whether there was a positive relationship, negative relationship, or no correlation
between dependent variables and independent variable. Thus, the strength and direction of
relationship between variables was analysed by the researcher using Pearson’s correlation

36
coefficient analysis. In addition, the researcher used it to measure whether there was a
significant relationship between independent variables and dependent variable.
Table 4.6: Correlation matrix of dependent and independent variables
Correlations
Satisf Paymen prom Working Responsib Recognit
action t& otion Environm ility ion
Benefit ent
Satisfaction R 1 .515** .564** .539** .599** .621**
Sig. .000 .000 .000 .000 .000
Payment & R .515** 1 .500** .390** .418** .493**
Benefit Sig. .000 .000 .000 .000 .000
Promotion R .564** .500** 1 .522** .565** .481**
Sig. .000 .000 .000 .000 .000
Working R .539** .390** .522** 1 .676** .491**
Environment Sig. .000 .000 .000 .000 .000
Responsibility R .599** .418** .565** .676** 1 .542**
Sig. .000 .000 .000 .000 .000
Recognition R .621** .493** .481** .491** .542** 1
Sig. .000 .000 .000 .000 .000
**. Correlation is significant at the 0.01 level (2-tailed).
Source: Own computation using SPSS of the survey, 2022

The first tested relationship was among variables provided on recognition and satisfaction
gained through the job. The p-value is less than 0.01, which shows that correlation between
the said two variables is statistically significant. Out of the relationships, on the basis of 151
responses, among the five selected variables, the strongest relationship of job satisfaction in
this study is with recognition which has a value of 0.621. This is a direct or positive
relationship that means if recognition will be improved by 100% there will be 62.1% increase
in job satisfaction. As per the collected data from 151 responses from the employees, among
the five selected variables in this study the second strongest relationship of job satisfaction is
with responsibility which has a value of 0.599. This is a direct or positive relationship that
means if responsibility will be improved by 100% there will be 59.9% increase in job
satisfaction in work place. As per the collected five selected variables in this study the third
37
strongest relationship of satisfaction level is with promotion because the value is 0.564. This
is a direct or positive relationship that means if workplace environment will be improved by
100% there will be 56.4 % increase satisfaction of the personnel from their jobs.

4.7 Regression Analysis

Regression analysis is a statistical measurement used to estimate the relationships among the
dependent and independent variables. It enables to determine the strength of the relationship
between variables and the predictive power of the independent variables on the dependent
variable. In short, regression helps a researcher understand to what extent the change of the
value of the dependent variable causes the change in the value of the independent variables,
while other independent variables are held unchanged. Regression analysis is a way of
statistically sorting out the variables that have indeed an impact. While there are many types
of regression analysis, at their core they all examine the influence of one or more independent
variables on a dependent variable.

4.7.1 Diagnostic Tests of Assumptions of Classical Linear Regression

Model (CLRM)
The Classical linear regression model such as homoscedasticity, autocorrelation,
Multicollinearity, and normality were conducted and are discussed below.

4.7.1.1 Homoscedasticity Test

This assumption of homoscedasticity is central to the linear regression model. It describes a
situation in which the error term (that is, random disturbance in the relationship between the
independent variables and the dependent variables) is the same across all values of the
independent variables. Assumptions can be checked by a scatter plot diagram. The result
plots the values the model would predict, against the residuals obtained. As the predicted
values increase, the variation in the residuals should be roughly similar. The graph looks like
a random array of dots. So, the model is homoscedasticity.

38
Source: Own computation using SPSS of the survey, 2022

Figure 4.1 Homoscedasticity Test

4.7.1.2 Autocorrelation Test

Durbin-Watson statistic is used to test for the presence of serial correlation among the
residuals. The residuals are not correlated if the Durbin-Watson statistic is approximately 2,
and an acceptable range is 1.50 - 2.50. As it can be shown from the table below the Durbin-
Watson statistic value is 1.793 and this value almost approaches 2 therefore, there is no
autocorrelation problem in this model.

39
Table 4.7: Autocorrelation Test
Model Summaryb
Mode R R Square Adjusted R Std. Error of Durbin-
l Square the Estimate Watson
a
1 .738 .545 .530 .40616 1.793
a. Predictors: (Constant), Recognition, promotion, payments, Working Environment,
Responsibility
b. Dependent Variable: Job Satisfaction

Source: Own computation using SPSS of the survey, 2022

4.7.1.3 Multicollinearity Test

Multicollinearity is the situation in which the independent variables are highly correlated each
other. When independent variables are correlated, there is an “overlap” or sharing of
predictive power. This may lead to the paradoxical effect, whereby the regression model fits
the data well, but none of the predictor variables has a significant impact in predicting the
dependent variable. This is because when the predictor variables are highly correlated, they
share essentially the same information. Thus, together, they may explain a great deal of the
dependent variable, but may not individually contribute significantly to the model. The
existence of multicollinearity can be checked using “Tolerance” and “VIF” values for each
predictor variable. Tolerance values less than 0.10 and VIF (variance inflation factor) greater
than 10 indicates the existence of multicollinearity (Robert, 2006). The VIF is a measure of
the reciprocal of the complement of the inter-correlation among the predictors. The decision
rule is a variable whose VIF value is greater than 10 indicates the possible existence of a
multicollinearity problem. Tolerance (TOL) defined as 1/VIF, it also used by many
researchers to check on the degree of collinearity. The decision rule for tolerance is a variable
whose TOL value is less than 0.1 shows the possible existence of a multicollinearity problem
(Gujarati, 2004).
Based on the test result below all the variance inflated factor (VIF) values are less than 10 and
also all the tolerance value greater than 0.1 therefore, in this model there is no high
multicollinearity problem. Multicollinearity problem it is not a matter of existence rather it is
a matter of degree.

40
 Table 4.8: Test of Multicollinearity
Model Collinearity Statistics
Tolerance VIF
1 (Constant)
Payments .662 1.510
Promotion .567 1.765
Working Environment .498 2.008
Responsibility .450 2.222
Recognition .594 1.683

Source: Own computation using SPSS of the survey, 2022

4.7.1.4 Normality test

Multiple regressions require the residuals to be normally distributed. Skewness and kurtosis
are statistical tools that can enable to check if the data is normally distributed or not.
According to Smith and Wells (2006), kurtosis is defined as “property of a distribution that
describes the thickness of the tails. The thickness of the tail comes from the amount of scores
falling at the extremes relative to the Gaussian/normal distribution”. Skewness is a measure
of symmetry. A distribution or data set is symmetric if it looks the same to the left and right
of the center point. The skewness and kurtosis test results of the data is within the acceptable
range (-1.0 to +1.0) and it can be concluded that the data is normally distributed.

41
Figure 4.2: Normality Test

4.7.2 Regression Result Analysis and Discussion

Overall, the entire model passed the four diagnostic tests in accordance with Classical Linear
Regression Assumptions (CLRM). The next part will present the results of the regression
output to analyze the factors that affecting job satisfaction. With the help of multiple linear
regression analysis, model summary, ANOVA, and Beta coefficient were determined, and the
regression model was developed.

Model Summary: The table below shows that there are five predictor variables in the study
including payment and benefits, promotions, work environment, responsibility and
recognition. Regression model was applied to test how far job satisfaction factors had impact
on employee’s satisfaction. Coefficient of determination-R2 is the measure of proportion of

42
the variance of dependent variable about its mean that is explained by the independent or
predictor variables (Hair et.al, 1998). Higher value of R2 represents greater explanatory power
of the regression equation. The table below shows the R2 value of 0.545. This result shows
that the independent variables (payment and benefits, promotions, work environment,
responsibility and recognition) accounted for 54.5 percent of the variance in employee’s job
satisfaction. This means 54.5 percent of the variation in job satisfaction of employee’s is
explained by the independent variables whereas the remaining 45.5 percent of the variation is
explained by other factors which are not included in this study.

Table 4.9: Model Summary

Model Summary
Mode R R Square Adjusted R Std. Error of Durbin-
l Square the Estimate Watson
a
1 .738 .545 .530 .40616 1.793
a. Predictors: (Constant), Recognition, promotion, payments, Working Environment,
Responsibility
b. Dependent Variable: Job Satisfaction

Source: Own computation using SPSS of the survey, 2022

The below table i.e. ANOVA test shows if the predictors of this research actually predict job
satisfaction or not. This can be answered through overall significance of the model, which is
typically and traditionally shown through a p-value that is less than 0.05. The table shows that
the p-value is appropriately and shows a perfectly significant of all collective independent
variables on one dependent variable.

Table 4.10: ANOVA table

ANOVAa
Model Sum of Df Mean Square F Sig.
Squares
1 Regression 28.491 5 5.698 34.542 .000b

Residual 23.755 144 .165

Total 52.246 149
a. Dependent Variable: Job Satisfaction
43
b. Predictors: (Constant), Recognition, promotion, payments, Working Environment,
Responsibility

Source: Own computation using SPSS of the survey, 2022

Table 4.11: Regression output

Coefficientsa
Model Unstandardized Standardiz t Sig.
Coefficients ed
Coefficient
s
B Std. Error Beta
1 (Constant) 1.262 .169 7.479 .000
Payments(ext.) .133 .060 .154 2.226 .028
Promotion(ext.) .110 .047 .173 2.321 .022
Working .084 .057 .118 1.487 .139
Environment (ext.)
Responsibility(int.) .151 .063 .201 2.405 .017
Recognition (int.) .195 .049 .293 4.014 .000
a. Dependent Variable: Satisfaction

Source: Own computation using SPSS of the survey, 2022

Standardized Beta Coefficient: It is the coefficients that can explain the relative importance
of explanatory variables. These coefficients are obtained from regression analysis after all the
explanatory variables are standardized. As can be seen from table 4.11 above the standardized
coefficient of recognition is the largest value followed by responsibility, promotion, payments
and work environment two to five respectively. The larger the standardized coefficient, the
higher is the relative effect of the factors to the job satisfaction.

Unstandardized Beta Coefficient ( ): As it is defined in chapter three, the

unstandardized coefficients ( 1 up to 5) are the coefficients of the estimated

44
 regression model. Hence, by including the error term (ε), the model for job
satisfaction can be written as;

! = "# + "$ %$! + "& %&! + "' %'! + "( %(! + ") %)! + *!

+ ! = $. &,& + #. $''%$! + #. $$#%&! + #. #-(%'! + #. $)$%(! + #. $.)%)!

The intercept ( 0) is the point on the vertical axis where the regression line crosses the Y
axis. The value of 0 is 1.262 which means the expected value of job satisfaction is 1.262
when all the five explanatory variables.

Among the five factors, four of them are found to be a statistically significant effect on
employee performance. The significant variables are Payment and benefits, promotions,
responsibility and recognition.

4.7.3 Discussion of the Regression Result

Payment and benefits

Pay is the leading and most important feature of satisfaction for almost each type of employee
in public, private, small, medium and large institutions and that reasonable pay system is
related with job satisfaction (Bajpai and Srivastava, 2004). Pay is a payment system that
employee view as being fair and proportionate with their skills and expectation is called pay.
The provision of benefits will create an optimistic, motivating work environment and
increases output and sales. The motivated workforce will lead to organizational excellence,
prosperity, excellent quality and cost control. As per the regression output of model one table
4.11 above, the coefficient of payments and benefits is positive and statistically significant at
5 percent level of significance. This implies that a one-unit increase in payments and benefits
leads to 0.133 unit increase in job satisfaction being other variables are constant. The findings
of this study is in line with the findings of Chiu et al. (2002), Saeed et al., (2013), Kanwal and
Majid (2013), Haile and Premanandam (2017), Hossain (2014), Judge et al., 2017) and
Walkowiak and Staszewski (2019).

45
Promotion

Koch and Nafziger, (2012) specified that promotions are desirable for most employees, only
because they work harder to compensate for their ‘‘incompetence.’’ As a result, promotion at
regular interval of time has an optimistic approach behind and they are generally given to
satisfy the psychological requirements of employees in the organization. Promotion refers to
advancing in career or career development. The coefficient of promotion is positive and
statistically significant at 5 percent level of significance. This implies that a one-unit increase
in promotion leads to 0.110 unit increase in job satisfaction being other variables are constant.
Therefore, the study failed to reject the null hypothesis that promotion has a negative effect
on job satisfaction. This means, there is enough evidence to support the positive relationship
between job satisfaction and promotion. The relationship is positive as expected. The findings
of this study is in line with the findings of Kanwal and Majid (2013), Girmachew (2019),
Haile and Premanandam (2017), Hossain (2014), Judge et al., 2017), Walkowiak and
Staszewski (2019), Kaur et al. (2020) and Biniyam (2021).

Responsibility

According to Hertzberg (1950) the relationship of people to their work is a basic one and that
their attitude towards their work can very well determine the job satisfaction. He states that
intrinsic factor such as achievement, recognition, responsibility. As per the regression output
of model table 4.11 above, the coefficient of responsibility is 0.151. The coefficient is
positive and has statistically significant effect job satisfaction at one percent level of
significance. The coefficient of responsibility interpreted as holding constant other
explanatory variables when responsibility increased by one percent, the level of job
satisfaction is increased by 0.151 units. Therefore, the study failed to accept the null
hypothesis that responsibility has a negative effect job satisfaction. This means, there is
enough evidence to support the positive relationship between job satisfaction and
responsibility. The relationship is positive as expected. The findings of this study is consistent
with the findings of Kanwal and Majid (2013), Girmachew (2019), Hossain (2014), Timkete
(2018), Judge et al., 2017), Walkowiak and Staszewski (2019) and Koorella and Perumal
(2019).

46
Recognition
Recognition can be as simple as giving someone response on what they have done right, or
just saying “thank-you”. Recognition enhances the level of productivity and performance at
job whether it is a first time performance or a repeated action at the job in a progressive way
and ultimately reinforces the behavior of employee. As per the regression output of model
table 4.11 above, the coefficient of recognition is 0.195. The coefficient is positive and has
statistically significant effect job satisfaction at one percent level of significance. The
coefficient of recognition interpreted as holding constant other explanatory variables when
recognition increased by one percent, the level of job satisfaction is increased by 0.195 units.
Therefore, the study failed to accept the null hypothesis that responsibility has a negative
effect job satisfaction. This means, there is enough evidence to support the positive
relationship between job satisfaction and recognition. The relationship is positive as expected.
The relationship is positive as expected. The findings of this study is consistent with the
findings of Danish et al. (2010), Milne (2007), Girmachew (2019), Hossain (2014), Timkete
(2018), Kaur et al. (2020) and Biniyam (2021)

Work environment

Jung and Kim, (2012) stated that good work environment and good work conditions can
increase employee job satisfaction and an employee organizational commitment. So the
employees will try to give their best which can increase the employee work performance. The
coefficient of work environment is positive but statistically insignificant. This implies that a
one-unit increase in work environment leads to 0.084 unit increase in job satisfaction being
other variables are constant. Therefore, the study failed to reject the null hypothesis that work
environment has a significant effect on job satisfaction. This means, there is enough evidence
to support the positive relationship between job satisfaction and work environment. The
relationship is positive as expected. The findings of this study is inconsistent with the findings
of Kawada & Otsuka (2011), Saeed et al., (2013), Emberland & Rundmo ( 2010), Tremblay.
et al., 2009), Girmachew (2019), Haile and Premanandam (2017), Hossain (2014), Timkete
(2018), Koorella and Perumal (2019), Kaur et al. (2020) and Biniyam (2021).

47
 CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSIONS, AND

RECOMMENDATIONS

5.1 Introduction
This chapter states the summary of the study findings and results. Based on the key findings
and results, conclusions are drawn and recommendations are made. The recommendations
include interventions to improve job satisfaction in Ethiopian Insurance Corporation and give
implication for further studies.

5.2 Summary of Findings

The main goal of this study is to examine factors that affect employees’ job satisfaction in
Ethiopian Insurance Corporation based on the questionnaire which was distributed to 174
professional employees of EIC. Based on the literature review discussed in chapter two, five
independent variables have been established. These variables are payment and benefits,
promotions, work environment as extrinsic factors and responsibility and recognition as
intrinsic factors.

In the descriptive part of the analysis, the result indicated that majority of the total
respondents are male (62.9%), 57 % of the respondents are in the age range of 26 – 35 years
and 70.2 % of the respondents are master’s degree holders.

Prior to the main analysis of the study, a reliability test was administered to check whether the
questionnaire was reliable or not. With this regard, as Table 3.2 illustrates all the quaternaries
were reliable and acceptable with overall Cronbach's Alpha result 0.945.

The result from Pearson coefficients implies that the five factors were all positively related to
employee job satisfaction within the range of 0.621 to 0.515.

Findings from the multiple regression analysis depict, 54.5 % variation in job satisfaction is
explained by employed explanatory variables (where by R square is 0.545). Furthermore, the

48
significance value of F statistics shows a value 0.000, which is less than p<0.05, implies the
model is significant.

The standardized coefficient of the intrinsic factor recognition is the largest value followed by
responsibility which is also intrinsic and payments, promotion and work environment which
are extrinsic factors three to five respectively. The larger the standardized coefficient, the
higher is the relative effect of the factors to the job satisfaction.

5.3 Conclusions
To realize the objectives of the study, three research questions were generated, and
correlation and multiple regression method were employed to answer the research objective:
To address the problem the study aim to find answers to the following basic research
questions.
1. What are the intrinsic factors that affect employee job satisfaction in Ethiopian
Insurance Corporation?
2. What are the extrinsic factors that affect employee job satisfaction in Ethiopian
Insurance Corporation?
3. Which factors have more effect on employee job satisfaction in Ethiopian
Insurance Corporation?

Thus, on the base of research questions and specific objectives the following conclusions
which are: Determining the intrinsic factors that affect employee job satisfaction in Ethiopian
Insurance Corporation, Analysing the extrinsic factors that affect employee job satisfaction in
Ethiopian Insurance Corporation and Analysing the factors which have more effect on
employee job satisfaction in Ethiopian Insurance Corporation.

Based on the findings, job satisfaction is a critical factor in every organization to be

successful. This research work could justify that job satisfaction has positive relationship with
all the intrinsic & extrinsic factors i.e., payment and benefits, promotions, work environment,
responsibility and recognition.

The multiple regression assumptions like multicollinarity, autocorrelation, normality and

heteroskedasticity tests were meet accordingly in model. The ANOVA test result in model

49
also showed that, the value of R and R2 obtained under the model summary part was
statistically significant and overall significant. The multiple linear regression analysis of the
independent variables and dependent variables shows that in the model out of five
independent variables four variables are positively and statistically significant effect on job
satisfaction i.e payment and benefits (extrinsic), promotion (extrinsic), responsibility and
recognition (Intrinsic) factors while the other extrinsic variable has positive but insignificant
effect on job satisfaction i.e work environment.

From the above result, the researcher conclude that both of the intrinsic variables; responsibility
and recognition and out of the three extrinsic variables; payments and promotion, are the key
factors that affect job satisfaction in EIC.

5.4 Policy recommendation

From the conclusion made based on the major findings of the research the following
recommendations are suggested. These are:

Recognition, which is one of the intrinsic variables has the most influential factor on the
satisfaction of employees of EIC. Therefore, it is strongly recommended for the top
management to give a due attention towards this variable. Managers should establish
criteria for identifying employees who are eligible for recognition, then recognize anyone
who meets the criteria by being consistently fair.

The management of EIC should recognize excellent performance. Employees are

motivated when their above-average efforts are recognized and rewarded. This helps to

build a sense of employee attachment to the organization thus increase job satisfaction.
EIC should also formulate a fair promotion system, an extrinsic factor to increase
employees’ motivation and their job satisfaction.
Since responsibility (intrinsic variable) is a significant variable supervision of employees
in any insurance companies, it should be conducted based on their job requirements.
When people's responsibilities are meaningful and involve their strengths and values, they
become driven. Supervision of employees must be free from bias and the results of
supervision are supposed to be communicated with employees in a transparent manner.
Additionally, EIC needs to promptly update pay and benefits.
50
 Reference

Aamir Ijaz, Adeela Anwar, Rab Nawaz Lodhi, 4umie Habiba. An Empirical Study of The
Factors Affecting Job Satisfaction: Evidence From Banking Sector Of Pakistan.
International Journal of Management and Applied Science, Issn: 2394-7926.

Adams, J. S. (1965). Inequity in social exchange. In L. Berkowitz (Ed.), Advances in

experimental social psychology (Vol. 2, pp. 267–299). New York, NY: Academic
Press.

Agarwal, R., & Ferratt, T. W. (2001). Crafting an HR strategy to meet the need for IT
workers. Communications of the ACM, 44(7), 58-64.

Ahmed, I., Nawaz, M. M., Iqbal, N., Ali, I., Shaukat, Z., & Usman, A. (2010). Effects of
motivational factors on employee‟s job satisfaction a case study of University of the
Punjab, Pakistan. International journal of business and management, 5(3).
Ahmed, S. M., Tolera, M., & Angamo, M. T. (2013). Assessment of job satisfaction among
pharmacy professionals in south-west Ethiopia. International Journal of Pharmaceutical
Sciences and Research, 4(6), 2351.

Al-Ali, W., Ameen, A., Isaac, O., Khalifa, G. S., & Shibami, A. H. (2019). The mediating
effect of job happiness on the relationship between job satisfaction and employee
performance and turnover intentions: A case study on the oil and gas industry in the
United Arab Emirates. Journal of Business and Retail Management Research, 13(4).

Alderfer, C. P. (1989). Theories reflecting my personal experience and life development. The
Journal of Applied Behavioral Science, 25(4), 351-365.

Aleme, T. (2018). Factorizing towards the prime determinants of job satisfaction: An

integrative modeling across PCA and logistic regression. African Journal of Business
Management, 12(23), 683-691.

51
Armstrong, M. (2006). A handbook of human resource management practice. Kogan Page
Publishers.
Asegid, A., Belachew, T. & Yimam, E., (2014). Factors influencing job satisfaction and
anticipated turnover among nurses in Sidama Zone Public Health facilities, South
Ethiopia. Nursing research and practice volume, Hindawi Publishing Corporation.
pp.1-26.
Atasoy, T. (2004). A Comparative Study on Job Satisfaction in Large and Small Size
Enterprises. Ms. Thesis, Middle East Technical University.
Aziri, B. (2011). Job satisfaction: a literature review. Management Research & Practice, 3(4).
Babbie, E. & Mouton. J.(2001). The practice of social research, Oxford University Press,
Cape Town
Bajpai, N., & Srivastava, D. (2004). Sectorial comparison of factors influencing job
satisfaction in Indian banking sector. Singapore Management Review, 26(2), 89-100.

Biniyam Kebede Desta (MBA (2021). Determinants of Employee Job Satisfaction Police
Commission of Dire Dawa Administration, Ethiopia. European Journal of Business and
Management ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online).
Borghini, A., & Williams, N. E. (2008). A dispositional theory of possibility. dialectica,
62(1), 21-41.
Caulton, J. R. (2012). The development and use of the theory of ERG: A literature review.
Emerging Leadership Journeys, 5(1), 2-8.

Chiu Randy., Mei LukVivienne.,& Ping Tang Thomas., (2002). Retaining and motivating
employees, compensation preferences in Hong Kong and China. Personal Review,
31(4) 402-431.

Danish, R.Q., & Usman, A., (2010).Impact of Reward and Recognition on Job Satisfaction
and Motivation: An Empirical Study from Pakistan. International Journal of Business &
Management, 5(2)

Desalegn, N., Akalu, L., & Haile, M. (2015). Ethiopian anesthetists job satisfaction level and
factors affecting their level of job satisfaction. International Journal of Anesthesia and
Clinical Medicine, 3(5), 17.
52
Emberland, J.S. & Rundmo, T. (2010).Implications of job insecurity perceptions and job
insecurity responses for psychological well-being, turnover intentions and reported risk
behaviour.Safety Science, 48:452-459.

Ethiopian Insurance Corporation establishment Proclamation No 68/1975.

Ethiopian Insurance Corporation, Annual Report, 2019/2020(unpublished).
Fahed-Sreih, J (2020).Career Development and Job Satisfaction. Intechopen Limited
Fraser, S. W., & Greenhalgh, T. (2001). Coping with complexity: educating for capability.
Bmj, 323(7316), 799-803.
Garg, K., Dar, I. A., & Mishra, M. (2018). Job satisfaction and work engagement: A study
using private sector bank managers. Advances in Developing Human Resources,
20(1), 58-71.

Gates, V. J., & Reinsch Jr, N. L. (2022). Commentary: Employee counseling, equity theory,
and research opportunities. International Journal of Business Communication, 59(1),
148-157.

Gebremichael, H., & Rao, P. (2013). Job Satisfaction and Organizational Commitment
Between Academic Staff And Supporting Staff ( Wolaita Sodo University – Ethiopia as
a Case ). Fae East Journal of Psychology and Business, 11(1), 11–32.

Gedif, G., Sisay, Y., Alebel, A., & Belay, Y. A. (2018). Level of job satisfaction and
associated factors among health care professionals working at University of Gondar
Referral Hospital, Northwest Ethiopia: a cross-sectional study. BMC research
notes, 11(1), 1-7.

George and Mallery (2003).Calculating, interpreting, and reporting Cronbach’s alpha

reliability coefficient for Likert-type scales. Midwest Research-to-Practice

George, E., & Zakkariya, K. A. (2018). Psychological empowerment and job satisfaction in
the banking sector. Springer.

53
Ghebru, H., & Girmachew, F. (2019). Perceived tenure (in) security in the era of rural
transformation gender-disaggregated analysis from Mozambique (No. 1879-2020-
426).

Gliem, J. A., & Gliem, R. R. (2003). Calculating, interpreting, and reporting Cronbach’s
alpha reliability coefficient for Likert-type scales. Midwest Research-to-Practice
Conference in Adult, Continuing, and Community Education.

Goetz, K., Campbell, S. M., Broge, B., Dörfer, C. E., Brodowski, M., & Szecsenyi, J. (2012).
The impact of intrinsic and extrinsic factors on the job satisfaction of
dentists. Community dentistry and oral epidemiology, 40(5), 474-480.

Goldsmith, D. J., McDermott, V. M., & Alexandar, S. C. (1998). HelpfuL supportive, and
sensitive: Measuring multiple outcomes of social support in personal relationships. In
annual meeting of the National Communication Association, New York, NY.

Gujarati, D. N., Bernier, B., & Bernier, B. (2004). Econométrie (pp. 17-5). Brussels: De
Boeck.

Hackman, J. R., & Oldham, G. R. (1980). Work redesign. Addison-Wesley.

Haile, M., & Premanandam, P. (2017). Employees’ job satisfaction in Ethiopia: A

comparative study of selected public and private sectors in Woldia district. International
Journal of Applied Research, 3(4), 19-25.

Hair, J. F. Jr., Anderson, R. E., Tatham, R. L. and Black, W. C. Multivariate Data Analysis
(5th ed.), New Jersey, Prentice-Hall, 1998

Herzberg, F. H., Mausner, B., & Snyderman, B. S. (1959). The motivation to work. John
Wiley and Sons
Herzberg, F.I. (1966), Work and the Nature of man, world publishing, Cleveland, OH.
Heslop, P., Smith, G. D., Metcalfe, C., & Macleod, J. (2002). Change in job satisfaction
and its association with self-reported stress, cardiovascular risk factors and
mortality. Social science and medicine, Vol.54, pp.1589-1599

54
Hoppock, R. (1935). Job satisfaction, by Robert Hoppock. New York and London: Harper
and Brothers.

Hossain, M. (2014). Job satisfaction of bank employees in Bangladesh. Job Satisfaction of

Bank Employees in Bangladesh (January 3, 2014).
Hotchkiss, D. R., Banteyerga, H., & Tharaney, M. (2015). Job satisfaction and motivation
among public sector health workers: evidence from Ethiopia. Human resources for
health, 13(1), 1-12.

Huseman, R. C., & Hatfield, J. D. (1990). Equity theory and the managerial matrix. Training
& Development Journal, 44(4), 98-103.

Ivancevich, J. M., Matteson, M. T., & Konopaske, R. (1990). Organizational behavior and
management. McGraw Hill Higher Education

Judge, T. A., Weiss, H. M., Kammeyer-Mueller, J. D., & Hulin, C. L. (2017). Job attitudes,
job satisfac- tion, and job affect: A century of continuity and of change. Journal of
Applied Psychology, 102(3), 356–374. https://doi.org/10.1037/apl0000181.

Kaliski, B.S. (2007). Encyclopedia of Business and Finance, Second edition, Thompson Gale,
Detroit, p. 446

Kanwal, A. & Majid, M., (2013). Retention management in banking system and evidence
from Multan, Punjab Pakistan. Interdisciplinary Journal of Contemporary Research in
Business, vol. 5(1), pp. 795-804.
Kaur, E., Wilde, M. M., & Winter, A. (2020). Fundamental limits on key rates in device-
independent quantum key distribution. New Journal of Physics, 22(2), 023039.

Kawada, Tomoyuki, & Otsuka, Toshiaki (2011).Relationship Between Job Stress,

Occupational Position and Job Satisfaction Using a Brief Job Stress Questionnaire.
Work, (40), 393-399.

Klein, S. M. (1973). Pay factors as predictors to satisfaction: A comparison of reinforcement,

equity, and expectancy. Academy of Management Journal, 16(4), 598–610.

55
Koch, A. K., & Nafziger, J. (2012). Job assignments under moral hazard: The Peter principle
revisited. Journal of Economics & Management Strategy, 21(4), 1029-1059.

Koorella, G., & Perumal, R. (2019). A study on factors affecting employee job
satisfaction. IJRAR-International Journal of Research and Analytical Reviews, 6(1),
848-854.

Kothari, C. R. (2004), Research Methodology: Methods and Techniques, Wiley Eastern

Ltd

Kreitner. T & Kinicki, A. (2001). Organizational behavior. (5th Ed.). Boston: McGraw- Hill.

A. Lemma. (2020). Determinants of Employee Job Satisfaction: The Case Study of

Ethiopian Civil Service University (Masters Dissertation, Addis Ababa University).
Locke, E. A. (1976). The nature and causes of job satisfaction. Rand McNally.

Locke, E.A & Lathan, G.P. (1990).Theory of goal setting and task performance.
Englewood
Logsdon, K., & Ellickson, M. C. (2001). Determinants of Job Satisfaction of Municipal
Government Employees. State and Local Government Review, 173-184.
Luthans, F. (1995). Organizational Behaviour. McGraw-Hill, Inc.
Ma, G., & Alexandar, H. R. (1998). Prevalence and pathophysiology of cancer cachexia In:
Bruera E, Portenoy RK, eds: topics in palliative care, vo12.

Maslow, A. H. (1954). Motivation and personality. New York: Harper & Row, Publishers
McGregor, D. (1960). The Human Side of the Enterprise. New York: McGraw Hill.

Masresha, T. (2018). Drivers of employee Engagement; The case of Ethiopian Insurance

Corporation (Master’s Thesis) Addis Ababa University

Mehari Haile And Dr. Peteti Premanandam (2017) An Empirical Study Of The Factors
Affecting Job Satisfaction: Evidence From Banking Sector Of Pakistan. International
Journal of Management and Applied Science, ISSN: 2394-7926.
Mengistu, G. K. (2012). Job satisfaction of secondary school teachers in Ethiopia (Doctoral
dissertation).
56
Mengistu, M. M., & Bali, A. G. (2015). Factors associated to job satisfaction among
healthcare workers at public hospitals of west Shoa zone, Oromia regional state,
Ethiopia: a cross sectional study. Science Journal of Public Health, 3(2), 161-167.

Milne, P. (2007).Motivation, incentives and organizational culture. Journal of Knowledge

Management.11 (6), 28-38.

Nwagwu, C. C. (1997). The environment of crises in the Nigerian education system.

Comparative education, 33(1), 87-96.

Nyamekye, F., (2012). Impact of motivation on employee retention: a case study of Standard
Chartered bank, Ghana Limited. Unpublished thesis (MBA), Kwame Nkrumah
University of Science and Technology.
Oldham, G. R., & Hackman, J. R. (1981). Relationships between organizational structure and
employee reactions: Comparing alternative frameworks. Administrative science
quarterly, 66-83.

Osemeke, M., & Adegboyega, S. (2017). Critical review and comparism between Maslow,
Herzberg, and McClelland‟ s theory of needs. Funai Journal of Accounting, Business
and Finance, 1(1), 161-173.
Parijat, P., & Bagga, S. (2014). Victor Vroom’s expectancy theory of motivation–An
evaluation. International Research Journal of Business and Management, 7(9), 1-8.

Pergamit, M. R., & Veum, J. R. (1999). "What is a Promotion?" Industrial and Labor
Relations Review, 581-601.

Robbins, S. P. (2009). Organizational behavior. Social Psychology: Handbook of Basic

Principles., 2nd Ed., 913–939.

Rue, L.W. and Byars, L. (2003).Management, Skills and Application .10 ed., McGraw-
ill/Irwin
Ruvio, Z.A., 1996. Job insecurity among Isreali school teachers: Sectorial profiles and
organizational implications. Journal of Educational Administration, pp: 521-539.

57
Saeed Rashid.,Mussawar Shireen.,Iqbal Anam.,Nayab Hafsa.,Yaseen Somia.,& Lodhi Nawaz
Rab.(2013), Factors Affecting the Performance of Employees at Work Place in the
Banking Sector of Pakistan. Middle-East Journal of Scientific Research, 17 (9), 1200-
1208.
Saunders, M., Lewis, P., & Thornhill, A. (2009). Research methods for business students.
Pearson education.
Shaikh, S. H., Shaikh, H., & Shaikh, S. (2019). The impact of job satisfaction and job
dissatisfaction on Herzberg theory: A case study of Meezan Bank Limited and
National Bank Limited. International Journal of Business and Social Science, 10(6),
143-147.

Sinha,D. K, (2015) McClelland's Need for Achievement Theory. Retrieved on December 27

,2 0 22 f r o m http://www.yourarticlelibrary.com/entreprene u r s h i p / m o t i v a t i
o n - ntrepreneurship/mcclellands – need – for – achievement - theory/40683/

Smith, B. N., Taverna, E. C., Fox, A. B., Schnurr, P. P., Matteo, R. A., & Vogt, D. (2017).
The role of PTSD, depression, and alcohol misuse symptom severity in linking
deployment stressor exposure and post-military work and family outcomes in male and
female veterans. Clinical Psychological Science, 5(4)
Spector, P.E. (1977). Job satisfaction: Application, assessment, causes, and consequences.
Thousand Oaks: sage
Statistical Product and Service Solutions (SPSS) Statistics Retrieved on January 29 ,2 0 22 f r
o m (https://www.ibm.com/products/spss-statistics).
Stello, C. M. (2011). Herzberg’s two-factor theory of job satisfaction: An integrative
literature review. In Unpublished paper presented at The 2011 Student Research
Conference: Exploring Opportunities in Research, Policy, and Practice, University of
Minnesota Department of Organizational Leadership, Policy and Development,
Minneapolis, MN.

Tadele, G. Comparative Study on Job Satisfaction Level between Private and Public Banks
(A Case Study of Debre Markos Town).

58
Thomas-Shaw, S. A. (2004). An examination of an extension of job characteristic theory to
include role stress among secondary school administrators. University of California,
Santa Barbara.

Timkete, M. (2018). Factors affecting healthcare-seeking for children below five years with
symptoms of acute respiratory tract infection in Ethiopia: a Cross-sectional study based
on the 2016 Demographic and Health Survey.

Tremblay MA, Blanchard CM, Taylor S, Pelletier LG, Villeneuve M (2009) Work extrinsic
and intrinsic motivation scale: its value for organizational psychology research.
Canadian Journal of Behavioural Science/Revue canadienne des sciences du
comportement 41 (4): 213. https://doi.org/10.1037/a0015167

Unutmaz, S. (2014). Factors affecting job satisfaction of employees in a public

institution (Master's thesis, Middle East Technical University).

Walkowiak, D., & Staszewski, R. (2019). The job satisfaction of Polish nurses as measured
with the Minnesota Satisfaction Questionnaire. Journal of Public Health, Nursing and
Medical Rescue, (4).

Westlund, S., and Hannon, J. (2008). Retaining talent: assessing job satisfaction facets most
significantly related to software developer turnover intentions, Journal of
Information Technology Management, Vol.19, No.4, pp.1-15
Wheeler, A. P., Wells, C. M., Smith, S. D., Vega, F. M., Henderson, R. B., Tybulewicz, V.
L., & Ridley, A. J. (2006). Rac1 and Rac2 regulate macrophage morphology but are not
essential for migration. Journal of cell science, 119(13), 2749-2757.

Wiles, R., Crow, G., Heath, S., & Charles, V. (2008). The management of confidentiality and
anonymity in social research. International journal of social research
methodology, 11(5), 417-428.

Yamane, Taro. (1967). Statistics: An Introductory Analysis, 2nd Ed., New York: Harper and
Row.

59
Yousef, D. A. (2000). Organizational commitment and job satisfaction as predictors of
attitudes toward organizational Change in a Non-western Setting. Personal
Review,29(5),567-592.

Appendix

ADDIS ABABA UNIVERSITY

COLLEGE OF BUSINESS & ECONOMICS

Masters of Business Administration in Financial Studies Questionnaire intended to Ethiopian

Insurance Corporation Employees

Dear
Colleagues
:

I a m a student of Masters of Business Administration in Addis Ababa University College

of Business & Economics. I would like to express my sincere appreciation for your
generous time, honest and prompt responses.

This questionnaire is designed to get information only for academic purpose and is the
major requirement to complete the research on the topic: “Factors Affecting
Employees’ Job Satisfaction: the case of Ethiopian Insurance Corporation” in pursuance
of Masters of Business Administration. The purpose of this questionnaire is also to
know how you feel about your present job, which things you are satisfied with and
those things you are not satisfied with. On the basis of your answers and those
of like you, it is expected to get a better understanding of the things individuals like
and dislike about their jobs. This survey is primarily essential for companies to
have satisfied, competent and committed staff for better chance of meeting the
overall objectives and goals. This study will also suggest possible solution that will
be used as an input for management in amending policies and practices concerning
60
 employee job satisfaction.

Your support in responding to this questionnaire is highly appreciated and it is of

paramount importance to the success of this study. The questionnaire may take a few
minutes of your precious time & you are not required to write your name and all
information you provide will be handled with great confidentiality.

If you have any questions about this survey, please do not hesitate to contact me
at my phone number 0911435466 or via my email address:
[email protected].

Thank you very much for your time, participation & and prompt response.

Please rate the following Statements by ticking “√” only one box on the right side in
the space provided based on the description:

Part I. General demographic information

1 Gender 1.Male 2. Female

2 Age 1. Below 25 years 2. 26-35 years

3. 36-45 years 4. 46 & above

3 Highest level of 1. Diploma 2. First Degree

your
achievement 3. Master’s (MA/MSc)
(Education)

4 How long have 1. Below 5 years 2. 6-10 years

you been
working for
EIC? 3. 11-20 years 4. Above 20 years

5 In which of the following working unit are you working?

1. General Insurance 2. Long Term Insurance

3. Finance & Investment 4. Information T (ITSM)

61
5. Human Resource 6. Legal

7. Business Dev. & Risk 8. Internal Audit

SECTION II: FACTORS THAT AFFECT JOB SATISFACTION
Kindly indicate the degree to which you agree with the following statements concerning factors
that affecting job satisfaction in your Corporation.
Please give them a rank based on a five point Likert Scale. Select if
1 = strongly disagree 2 = Disagree 3 = Neutral 4 = Agree 5 = strongly agree
Extrinsic factors

No D. Payments and Benefit 1 2 3 4 5

1 My salary is equitable when compared with other

insurance companies
2 My salary payment is satisfactory in relation to what I do
3 I am satisfied by the Corporation’s pay grade
4 Salary adjustment or increment is made on reasonable time
period
5 The Corporation pay Competent benefit in the Market
6 Benefit and Bonus payment of the Corporation are
matched ( Bonus based on Profitability of the Corporation
is Matched)
7 The benefit system of the Corporation has effect on my
satisfaction
E. Promotion
1 Everyone has an equal chance to be promoted
2 The Corporation’s promotion policy is clearly
communicated to all Employees
3 The existing Promotion motivate employees for high level
of job satisfaction
F. Working Environment
1 I am provided with adequate facilities and resources to do
my job effectively
2 The working condition like space, seating arrangement,
ventilation, refrigerator, lighting etc helped me to do my
duties in better way
3 The Corporation provides flexible work hours to
accommodate my personal needs
4 All in all I am satisfied with the working condition of the
Corporation
Intrinsic factors

G. Responsibility 1 2 3 4 5
1 Employees have clear job responsibilities in our
Corporation
2 Employees participate in decisions making that has a
positive effect on their job satisfaction
3 I perform my duty with full autonomy and freedom
H. Recognition
1 I get credit for what I do
2 I receive constructive criticism(positive feedback)about my
work
3 The existence of recognition for good work, has given me
an opportunity to Perform well

PART III: QUESTIONS RELATED TO JOB SATISFACTION

Here are items that help to measure Job satisfaction. Please give them a rank based on a five
point Likert Scale. Select 1 = very dissatisfied 2 = dissatisfied 3 = Neutral 4 = satisfied
5 = very satisfied

No Items 1 2 3 4 5

1 Being able to keep busy all the time

2 The chance to work alone on the job
3 The chance to do different things from time to time
4 The chance to be "somebody" in the community
5 The way my boss handles his/her workers
6 The competence of my supervisor in making
decisions
7 Being able to do things that don't go against my
conscience
8 The way my job provides for steady employment
9 The chance to do things for other people
10 The chance to tell people what to do
11 The chance to do something that makes use of my
abilities
12 The way the Corporation’s policies are put into
practice
13 My pay and the amount of work I do
14 The chances for advancement on this job
15 The freedom to use my own judgment
16 The chance to try my own methods of doing the job
17 The working conditions
18 The way my co-workers get along with each other
19 The praise I get for doing a good job
20 The feeling of accomplishment I get from the job

THANK YOU FOR YOUR GENUINE RESPONSE