DETERMINANT FACTORS OF EMPLOYEES’ PERFORMANCE TO IMPROVE SERVICE QUALITY: THE CASE OF LION INTERNATIONAL BANK S.C

Abstract

Due to the intense competition in the banking industry in Ethiopia, it is very essential to increase service quality and retain the existing customers by improving the performance of employees. This research conducted with the main objective of evaluating Determinant Factors of Employees’ Performance to Improve Service Quality the case of Lion international bank. Academic literature and research documents have been used to establish the conceptual framework. As a result, workload, competence, service orientation, standard service behavior, and service role flexibility are identified as the main factors that potentially influence Employees’ Performance to Improve Service Quality. To check the validity of the hypothesis and model specification the researcher used SPSS software. Correlation analysis was also employed in order to examine the strength of the correlation between the dependent variable (employee’s performance) and the independent variables (workload, competence, service orientation, standard service behavior, and service role flexibility) and it is found that they are all correlated significantly. The research used simple random sampling technique. The results of the study have indicated that Lion international bank employees feel their individual service performance can be affected by service quality determinant factors. However, they do not associate the influence of those factors with the ultimate delivery of quality service and customer satisfaction. Accordingly, based on those findings, it has been concluded that the lion international bank employees’ perception of service quality is not satisfactory. It is hence recommended that lion bank need to revisit their recruitment, employee development and employee motivation strategies and align them with the marketing strategy in order to promote system wide service orientation.