Organizational Factors Affecting Employee Performance: The Case of Selected Public Service Organizations in Dire Dawa Administration, Ethiopia

Abstract

This study aims to analyze the determinants for employee performance in the Public Service Organizations, in Dire Dawa Administration, Ethiopia. Based on the literature discussed, the four factors considered as the important elements influence the employees’ performance that need to be investigated. The research question lies in each of organizational factors has a significant and positive effect on employees performance. Using the quantitative method, the population of this study was 205 respondents but 181 returned the survey questions, indicating a response rate of 88 per cent. Stratified sampling technique was used to select Core Staff and Support Staff. The primary data gathered in the form of questionnaires with a Likert typed-scale were then analyzed using frequencies, percentages and inferential statistics describes the data with making inference or conclusion and summarizing sources of numerical data in to meaningful form.  In this study Chi-square goodness of fit test, factor analysis, stepwise multiple linear regression model and Pearson correlation analysis were used to establish and explain the relationship between the dependent and the independent variables.  In stepwise regression, to explain that it is a systematic procedure where the most significant variable(s) and least significant variable(s) are added or removed respectively. Stepwise regression was performed in sequential stages namely, regression model summary, ANOVA, and regression coefficients. The findings reveal that the value of the determination coefficient test is 89.6 percent, indicating that the employees’ performance is explained by organizationalstructure,communication, Leadership/management system and culture factors, while the remaining 10.4 percent are linked with other factorsand there was a strong correlation between organization structure,communication, Leadership/management system and employees performance at (r=.777, .797, and .757, p<0.01 respectively). Accordingly, organization culture has a moderate positive correlation coefficient of   (r=.506, p<0.01), which implies that it has positive relation with employees performance. Therefore, all the independent variables have a significant positive correlation with dependent variables. The study recommends that the PSO management should build and improve on teamwork and develop the current management systems to maintain the organization culture; create opportunities for employees to interact with the managers of the PSO in order to improve on the communication; and encourage employee innovation, increase on their salaries, organizational loyalty programs and reward long-serving employees.

Keywords: Structure,communication, management system, culture, employee performance and Dire Dawa Administration Public Service Organizations.

DOI: 10.7176/PPAR/9-10-01

Publication date:October 31^st 2019