Samri Final Research

Effects of Industrial Relations Practices on Employee's Satisfaction:-The Case of
Ethiopian Electric Power

By
Samrawit Masresha
Research Summited To The School of Postgraduate Studies In Partial Fulfillment For The
Award Of Degree In Master of Business Administration of Gage College
June, 2020
Declaration
I, Samrawit Masresha, declare that this research paper entitled “Effects of Industrial
Relations Practices on Employee's Satisfaction:-The Case of Ethiopian Electric Power ” is
my original work and has not been used by others for any other requirements in any other
university and all sources of information in the study has been appropriately
acknowledged.
Declared by:
Samrawit Masresha ----------------- June, 2020
Student Signature Date
Ashenafi abera (Ass.Pro) ---------------- June,2020
Advisor Signature Date
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GAGE Collage
Department of Business Administration
Effects of Industrial Relations Practices On Employee's Eatisfaction; The Case Of Ethiopian

Electric Power
By
Samrawit Masresha
Approved by:
Advisor Signature
Examiner
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Acknowledgement
I would like to thank almighty God for helping me in all the process of my study until
this time. My families especially my mom had a big role in this study by being a moral from
the start of the program until the end.
My advisor; Ashenafi Abera (Ass.Pro.) share his knowledge and experience unlimitedly and
advise me in a helpful and disciplined manner. I would like to appreciate such personality.
EEP staffs, I don’t have a word to explain how much they help and cooperate with me in every
aspect of my project particularly distributing, filling and collecting the questionnaire.
Especially east and south Addis Ababa region employees and management members, union
representatives thank you for your cooperation.
Finally my class mate, friends and others who help me in the process of my research I would
like to give my gratitude for your contribution in the study.
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Table of Content
Declaration...................................................................................................................................................i
Acknowledgement......................................................................................................................................iii
List of Tables..............................................................................................................................................viii
List of Figures..............................................................................................................................................ix
Acronyms.....................................................................................................................................................x
Abstract......................................................................................................................................................xi
CHAPTER ONE INTRODUCTION....................................................................................................................1
1.1. Background of the Study..............................................................................................................1
1.2. Statement of the Problem...........................................................................................................5
1.3. Research Questions.....................................................................................................................6
1.4. Objective......................................................................................................................................6
1.4.1. General Objective................................................................................................................6
1.4.2. Specific Objectives...............................................................................................................6
1.5. Significance of the Study..............................................................................................................7
1.6. Scope of the Study.......................................................................................................................7
1.7. Limitation of the Study................................................................................................................8
1.8. Organization of the Paper............................................................................................................8
CHAPTER TWO REVIEW OF RELATED LITERATURE.......................................................................................9
2.1. Theoretical Literature Review......................................................................................................9
2.1.1 Definition of Industrial relation...................................................................................................9
2.1.2 Significance of Industrial Relations....................................................................................10
2.1.3 Causes of Poor Industrial Relations....................................................................................11
2.1.4 Objectives of Industrial Relations (Introduction to Industrial Relation, journal on web site)
12
2.1.5 Scope.................................................................................................................................13
2.2 Employee Satisfaction................................................................................................................13
2.3 Decision Making Style and Employee Participation...................................................................14
2.3.2 Decision Making.................................................................................................................14
2.3.3 Employee Participation......................................................................................................15
2.4 Communication.........................................................................................................................15
2.5 Pay and Benefits........................................................................................................................16
2.6 Conceptual Frame Work............................................................................................................19
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CHAPTER THREE Research Design and methodology................................................................................24
3.1. Research Method......................................................................................................................24
3.2 Source of data..................................................................................................................................24
3.5 Instruments..................................................................................................................................27
3.5.1 Validity..........................................................................................................................................28
3.5.2 Reliability......................................................................................................................................28
3.6. Data analysis and presentation.......................................................................................................30
3.6.1 Quantitative data analysis............................................................................................................30
3.6.2 Qualitative....................................................................................................................................30
3.7 Human Subject................................................................................................................................30
CHAPTER FOUR DATA PRESENTATION ANALYSIS AND INTERPRETATION..................................................31
Sampling plan and response rate..........................................................................................................31
4.1. Characterstics of Respondents.......................................................................................................31
4.1.1. Sex...........................................................................................................................................31
4.1.2 Age............................................................................................................................................32
4.1.3 Education Statues.....................................................................................................................32
4.1.4 Years of service.........................................................................................................................33
4.2. Major Findings................................................................................................................................33
Attitude of Employees, Management and Union..................................................................................33
4.2.1Employees.................................................................................................................................33
4.21.1 Management..........................................................................................................................34
4.2.2Communication in Employees, Management and Union..............................................................35
4.2.2.1Employees..............................................................................................................................35
4.2.2.2 Management.........................................................................................................................36
4.2.2.3 Union.....................................................................................................................................36
4.2.3 Working Condition in Employees, Management and Union....................................................37
4.2.3.1 Employees.............................................................................................................................37
4.2.3.2 Management.........................................................................................................................38
4.2.3.3 Union....................................................................................................................................38
4.2.4 Decision Making in Employees, Management and Union......................................................39
Employees.........................................................................................................................................39
4.2.4.1 Management.........................................................................................................................40
4.2.4.2 Union.....................................................................................................................................40
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4.2.5. Pay and Benefit in Employees, Management and Union.........................................................41
Employees.........................................................................................................................................41
4.2.5.1Management..........................................................................................................................41
4.2.5.2Union......................................................................................................................................42
4.2.6 General View of satisfaction in Employees, Management and Union......................................42
4.2.6.1 Employees.............................................................................................................................43
4.2.6.2 Management.........................................................................................................................43
4.2.6.3 Union.....................................................................................................................................44
4.7 Review of Ideas from Open Ended Questionnaires...................................................................44
4.7.1 Reasons for not having positive Attitude each other................................................................44
4.7.1.1Employees..............................................................................................................................44
4.7.1.2 Management.........................................................................................................................45
4.7.1.3 Union.....................................................................................................................................45
4.7.2 Reasons for Dissatisfaction in Organization.............................................................................45
4.7.2.1 Employees.............................................................................................................................45
4.7.1.2Union......................................................................................................................................46
4.7.3 Issues in decision making...................................................................................................46
4.7.3.1 Employees.............................................................................................................................46
4.7.3.2 Management.........................................................................................................................46
4.7.3.3 Union.....................................................................................................................................46
4.7.4 What should be done to decrease Dissatisfaction with pay and Benefit Offered?............46
4.7.4.1Employees..............................................................................................................................46
4.7.4.2 Management.........................................................................................................................47
4.7.5 Expressing Working Conditions..........................................................................................47
4.7.4.3 Management.........................................................................................................................47
CHAPTER FIVE SUMMARY, CONCLUSSION AND RECOMMENDATION.......................................................48
5.1. Summary.........................................................................................................................................48
5.1.1. Attitude....................................................................................................................................48
5.1.2. Communication.......................................................................................................................48
5.1.3. Working condition..................................................................................................................48
5.1.4. Decision making.......................................................................................................................49
5.1.5. Pay and Benefits......................................................................................................................49
5.2. CONCLUSSION................................................................................................................................49
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5.3 RECOMMONDATION.......................................................................................................................50
REFERENCE................................................................................................................................................51
Appendixes One........................................................................................................................................59
Qestionnairs..............................................................................................................................................61
Employees questionnairs.......................................................................................................................61
Management Questionnairs..................................................................................................................66
Union Questionnairs..............................................................................................................................73
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List of Tables
Table 1 Addis Ababa Regional Office Data..................................................................................25

Table 2 East and South Addis Ababa Regional Offices Data.......................................................25
Table 3 Sample Size Determination..............................................................................................26
Table 4 the sampling frame work..................................................................................................27
Table 5 seven point Likert scale used in the research for survey data collection..........................28
Table 6 Sampling plan and actual performance............................................................................31
Table 7 Sex Category of the respondent........................................................................................31
Table 8 Age Category of the respondent.......................................................................................32
Table 9 Education level of the respondent....................................................................................32
Table 10 Service year of the respondent........................................................................................33
Table 11 HR current status in Distribution System of EEPCo......................................................50
List of Figure
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Figure 1. Fosam Employee Satisfaction Model.............................................................................19
Figure 2. Justin Field’s Push and Pull Factor Satisfaction Model.................................................21
Figure 3. Thi Duyen Hai’s Employee satisfaction Model...............................................................22
Figure 4. Sefton the relational model of employee participation to satisfaction and other...........22
Figure 5. The dependent and Independent variable Model.........................................................23
Figure 6 Score of Attitude of Employees towards Management...................................................33
Figure 7 Score of Attitude of Management towards Employees...................................................34
Figure 8 Score of Attitude of Union towards Management..........................................................35
Figure 9 Score of Employees satisfaction on communication in the company.............................35
Figure 10 Score of Management satisfaction on communication in the company........................36
Figure 11 Score of union representative satisfaction on communication in the company............36
Figure 12 Score of Employee on working condition in the company...........................................37
Figure 13 Score of Management on working condition in the company......................................38
Figure 14 Score of Union on working condition in the company.................................................38
Figure 15 Score of Employee response on Decision Making in the company..............................39
Figure 16 Score of Management on Decision Making in the company........................................40
Figure 17 : Score of Union response on Decision Making in the company..................................40
Figure 18 Score of Employee response on Pay and Benefits in the company..............................41
Figure 19 Score of Management response on Pay and Benefits in the company..........................41
Figure 20 Score of Union response on Pay and Benefits in the company.....................................42
Figure 21 Score of Employee response in satisfaction in all variables tested...............................43
Figure 22 Score of Management staffs in satisfaction in all variables tested................................43
Figure 23 Score of Union Representatives in satisfaction in all variables tested..........................44
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Acronyms
EPP: Ethiopian Electric power
HRD: Human Resource Development
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Abstract
The study mainly focuses on the relationship between industrial relation practice of the
company and employee satisfaction. It has been undertaken in one of the largest service
giving company which is known by providing electricity service, Ethiopian Electric Power
Corporation. Attitude, Communication, Decision Making Style, Working Condition and Pay
and Benefit were selected to be the study variables. For the target population it used two
regional offices to be targeted which are found in Addis Ababa. A Descriptive Survey Design
is used to reach on the result. A sample of 280 employees from managements, non-
management and union representative were used for questionnaire, And 90% of it was
responded. The data were analyzed using SPSS software and as a result it was found that 62%
of employees, 60 % of management staffs and 67% of union representatives respond as
if they were dissatisfied with the Industrial relation practice of their organization. Some
differences were observed with the response of the three employee group however the total
result shows that more than average employees were dissatisfied with the practice. Finally
depending on the finding possible conclusion and recommendations were given which can be to
alter a problem which was discovered on the project process.
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CHAPTER ONE
INTRODUCTION
1.1. Background of the Study
All the resources that are used in the production process, Human resource are the most important
input for all organizations. The traditional assumptions that states efficiency is achieved only
through managerial control, technological advancement and allocation of resources have given a
way to the view that efficiency is the result of greater involvement of employees in their job,
team and organization (Armstrong,2006) organizations have successfully transformed themselves
to promote the role of Industrial relations and mutual trust with their employees.
Industrial relations in its broader sense cover all such relationships that a business enterprise
maintains with various sections of the society such as workers, state, customers and public who
come into its contact. In the narrow sense, it refers to all types of relationships between employer
and employees, trade union and management, works and union and between workers and
workers. It also includes all sorts of relationships at both formal and informal levels in the
organization Lingam). Industrial relations refer to” relationships between management and labor
or among employees and their organizations that characterize or grow out of employment” (Rao,
2002:
According to R.A. Lester, industrial relations “involve attempts to have workable solutions
between conflicting objectives and values, between incentive and economic security, between
discipline and industrial democracy, between authority and freedom, and between bargaining and
cooperation.” Industrial relations can be regarded as a system or web of rules regulating
employment and the ways in which people behave at work (Dunlop, 1958). Industrial
relations were broadly defined to include the relationships and interaction between employer and
employee.
1
From this perspective, industrial relations cover all aspects of the employment relationship,
including human resource management, employee relations, and union-management (or labor)
relations. In all definition given by different authors can get an idea that Industrial relations are
the relationships between employees and employers within the organizational settings.
The relationships which arise at and out of the workplace generally include the relationships
between individual workers, the relationships between workers and their employer, the
relationships between employers, the relationships employers and workers have with the
organizations formed to promote their respective interests, and the relations between those
organizations, at all levels. Industrial relations also includes the processes through
which these relationships are expressed (such as, collective bargaining, workers’
participation in decision-making, and grievance and dispute settlement), and the management of
conflict between employers, workers and trade unions.
The elements of employee relations (Green,1994) consist of the formal and informal employment
policies and practices of the organization, the development, negotiation and application of formal
systems, rules and procedures for collective bargaining, handling disputes and regulating
employment.
Maintenance of harmonious industrials relations is on vital importance for the survival and
growth of the enterprise. Good industrial relations result in increased efficiency and hence
prosperity, reduced turnover and other tangible Benefits to the organization (Thompson).
The other concept of the study is Employee satisfaction. Employee satisfaction is perhaps the
most frequently studied construct in the organizational sciences (Schneider and Brief, 1992).
Employee satisfaction has been defined as “a pleasurable or positive emotional state resulting
from the appraisal of one’s job or experience’’ (Locke, 1976). Satisfaction involves both feelings
and attitudes an employee has about the specific aspect of the job or the organization. As with
other feelings, employee satisfaction can be either positive or negative. Luthans (1989) expanded
on Locke and described employee satisfaction with in three specific facets: (a) emotional
response to the work environment (b) the relationship between employee expectations and
outcomes, and (c) satisfaction with pay working condition, work Employee satisfaction is a
measure of how happy workers are with their job and working environment.
2
According to Schultz (1998), Employee satisfaction encompasses both the positive and
negative feelings and attitudes that people hold about their jobs and organizational environments,
these depending on many work related and Personal characteristics.
Measuring employee satisfaction is another important function of Industrial relations. Employee

satisfaction, morale and engagement are intangible references to how well employees enjoy
working for the company.
Organizations strongly desire satisfaction from their employees (Oshagbemi, 2003). Satisfaction
of employees has been found to significantly influence job performance, absenteeism, turnover,
and psychological distress (Andresen; Davis, 1992 ; Specter, 1997). Dissatisfied workers are
prone to excessive turnover and absenteeism. Understanding job satisfaction thus may be linked
to performance, organizational productivity and other issues, including labor turnover (Dicter et
al, 1996, Lee et al., 1999, Melamed et al, 1995, sekoran and Jauch, 1978).
Employee satisfaction is as important as customer satisfaction in influencing organizational

performance. Lee (1988) showed that satisfaction of employees is among the best predictors of
turnover. Satisfaction also influences customer perceptions of service quality (Rafaeli,
1989;Schneider and Bowen, 1985). Additionally, Williams (1995) found that employee
benefits influence satisfaction. Indirect costs associated with job dissatisfaction include training,
recruiting and learning curve inefficiencies, as well as reduction in the client base (Brown and
Mitchell, 1993). Conversely, employee satisfaction can improve productivity, reduce staff
turnover and enhance creativity and commitment.
It is often assumed that employees who are more satisfied with their job condition are more likely
to produce better work outcomes. This is based on the rationale that higher levels of satisfaction
improve morale (Dole and Schroeder, 2001). Petty et al, (1994) conclude that employee
satisfaction and performance are indeed positively correlated. Keeping morale high among
workers can be of tremendous benefit to any company, as happy workers will be more likely to
produce more, take fewer days off, and stay loyal to the company. There are many factors in
improving or maintaining high employee satisfaction, which wise employers would do well to
implement. Therefore, employee satisfaction should not be ignored and yet very few businesses
seriously consider employee satisfaction ( Ulmer et al. 1999).
3
The organization under study is Ethiopian Electric power. The company has been stayed as the
sole electric service provider for more than six decades in the history of electric service in
Ethiopia. Even though it was totally owned by foreigners in its establishment, it was transferred
immediately as the public property. In its history the organization is called by different names
with different regimes and reestablishments.
Since 1989 E.C it was proclaimed to reestablish as a corporation in the new form and the current
name has been given. Additionally, Williams (1995) found that employee benefits influence
satisfaction.
Indirect costs associated with job dissatisfaction include training, recruiting and learning curve
inefficiencies, as well as reduction in the client base (Brown and Mitchell, 1993). Conversely,
employee satisfaction can improve productivity, reduce staff turnover and enhance creativity and
commitment. It is often assumed that employees who are more satisfied with their job condition
are more likely to produce better work outcomes.
This is based on the rationale that higher levels of satisfaction improve morale (Dole and
Schroeder, 2001). Petty et al, (1994) conclude that employee satisfaction and performance are
indeed positively correlated. Keeping morale high among workers can be of tremendous benefit
to any company, as happy workers will be more likely to produce more, take fewer days off, and
stay loyal to the company.
There are many factors in improving or maintaining high employee satisfaction, which wise
employers would do well to implement. Therefore, employee satisfaction should not be ignored
and yet very few businesses seriously consider employee satisfaction (Ulmer et al., 1999).
4
1.2. Statement of the Problem
Organizations can rarely secure people who are, at the time of employment, total masters of their
unique requirements. In most cases, there may be gap between employees’ knowledge, skills and
attitude and what the job demand. The gap must be filled through human resource development
programs.
As a result, personnel training, development and education are the major ways that
firms attempt to maintain the competency levels of their human resources and increase their
adaptability to changing organizational demand. The changes in production system and method
have significance impact on production skills requirements. Thus, employees face the need to
constantly upgrade their skills and develop an attitude that permit them to adopt change.
Moreover, employees’ are demanding professional and career development opportunities with in
their organization which in turn require considering the needs of employees in training,
development and education programs. Thus, providing an effective human resource development
program is required to enhance both firms’ competitiveness and employee satisfaction.
However, in developing countries most organizations tend to give less emphasis for employees’
needs in HRD programs. (Hooi, 2007). Inadequate need assessment, outdated training
and development methods, limited educational opportunities, unequal access to training
opportunities, insufficient opportunity to learn skills/knowledge that will improve employees
chance of promotion, inadequate opportunities for career growth and poor supervisors’ guidance
for employees’ development are some of the areas which results dissatisfaction with HRD
practices. (Wan,2007). These problems later on lead the organizations to lack of
optimal man-task relationship, resistances of employees in taking future assignments, decrease in
productivity, and increase in operational error, and decrease in employee morale and
commitment and increase in employee turnover.
According to preliminary survey conducted by the researcher, employee turnover is one of the
problems that Ethiopian Electric Power(EEP) has facing. Among other factors employees’
dissatisfaction with HRD practices is one factor which could result in employee turnover.
According to one of the HR department personnel of EEPC, comparing with other governmental
owned organizations like ETC; EEPC has highest employee turn-over especially in non-technical
staffs.
5
According to the person, much of the Corporation’s HRD practices
focused in very limited areas like generation construction, generation operation and distribution
work units. Based on the data collected from the employees of Ethiopian Electric Power
Corporation, the study tried to analyze the extent to which employees satisfied with different
dimensions of HRD practices in the Corporation. In EEP shows a recurrent and frequent
legislation with management on the labor affairs mainly on the pay and benefit and others.
Continuous disagreements on other relationship terms also imply a problem on the gap between
industrial relation practice and satisfaction of employees. This situation has been attributed to
general lack of satisfaction of employee in the organization because many have not acquired the
required dignity salary and other working environment ethics to secure jobs.
This suggests a need to carry out thorough studies into the situation of industrial relation and
employee satisfaction try to address their difficult situation if anything is to be done to help them
out and which was the main aim for this study.
1.3. Research Questions
Therefore, the research addresses the following study question:

1. What are the various employee relations practices in the organization, and how do they affect
productivity?
2. What challenges dose the organization face?
3. In what ways can healthy relationship be enhanced between employees and employer in the
organization?
1.4. Objective
1.4.1. General Objective
 The general objective of the study is to asses employee relation practices, and its effect on
the satisfaction of employees.
1.4.2. Specific Objectives
 To identify the gap between industrial employee's expectations and perceptions of
service quality
 To measure the quality of service and level of industrial employee's satisfaction.
 To identify organization factors that affect industrial employee's satisfaction
 To pinpoint the most effective ways of closing service quality gaps and chooses which
6
gaps to focus on.
1.5. Significance of the Study
In this point of view, the objective of this paper is to review the concept of Industrial relation
environment in the selected service giving public enterprise which is found in Ethiopia. So the
finding of the result will have the following importance;
 The finding of the project will bring a view about the relationship existed between
industrial relation practice and employee satisfaction.
 The finding and possible recommendation, which will be given at the end of the
project, can help the organization under study to see its employees’ satisfaction level
resulted from its industrial relation practices.
 The finding and recommendation also bring an opportunity for other enterprises to
consider their employment relation practices in their organization.
 The investigation can also be used for other studies on similar topic or organization
for further study on the discipline.
1.6. Scope of the Study
Industrial relation whether it is favorable or unfavorable, is applicable in all types of organization

and the finding of the research work will be fruit full if it is to be conducted widely by including
large number of public organizations. However, due to various constraints the study is focused
on single service sector public organization.
Industrial relations in its broader sense cover all such relationships that a business enterprise
workers. So, the scope of the study will delimit to the later definition.
The previous researches under the same topic were focused on cooperation, conflict and
disciplinary action as a dimension of management labor relation. Even though, Industrial
Relations consist of a number of dimensions, the scope of this paper is delimited to industrial
relation practices; Attitudes of employees, management and union towards each other, Pay and
Benefit Policy, Communication, Working Conditions, Decision making style and participation as
to their contribution to the satisfaction of employees. These factors will be identified as to their
7
contribution to the satisfaction of employees. The other dimensions are beyond the scope of this
study.
1.7. Limitation of the Study
To achieve that maximum result out from the study and being reliable source of information, it
was better if it had been studied in difference public organizations. But the time brings a
burden to limit self just on a single organization.
To have the fruitful result and finding, it would have been preferable to take a sample from the
total employees of each process. But due to the time and cost limitation of the study, the samples
were taken from two regions in Addis Ababa which is found in marketing and Sales process
among other processes in the company.
1.8. Organization of the Paper
The research had five chapters. The first chapter deals with the introduction and back ground of
the study. It includes a declaration of what, why and how the study was conducted. The second
chapter covers the review of the related literature. On this section previous works of other
researchers with the related topics and theoretical bases of the topic was discussed. The third
chapter deals with Methodology part. This chapter discusses the designs, data collection
methods, instruments and other things in relation to the collection and processing the necessary
data for the study. And the fourth Chapter deals with data Analysis and finding. On this part the
data which was collected is being analyzed and presented to give a meaning. Such meanings
answered the research questions. The final chapter composed of the result, conclusion and
recommendation.
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CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1. Theoretical Literature Review
2.1.1 Definition of Industrial relation
Industry today is neither viewed as a venture of employers alone nor profit if considered as its
sole objective. It is considered to be a venture based on purposeful cooperation between
management and labor in the process of production and maximum social good is regarded as
its ultimate end and both management and employees contribute in their own way towards its
success (Chen, 2007).
Similarly, labor today is no more an unorganized mass of ignorant works ready to obey
without resentment or protest the arbitrary and discretionary dictates of management (Milad et
al., 2010). The management has to deal with employees today not only as individuals but also as
members of organized social groups who are very much conscious about their rights and have
substantial bargaining strength (Tripathi P.C 2009).
Hence, the objective of evolving and maintaining sound industrial relations is not only to find
our ways and means to solve conflicts to resolve differences but also to secure the cooperation
among the employees in the conduct of industry. But maintaining smooth industrial relation is
not an easy task. Almost all the industrialized countries of the world face the problem of
establishing and maintaining good management worker relationships in their industries. Each
country has sought to find out solution, depending upon its economic, social and political
environment.
However, industrial conflict still arises and therefore establishment and maintenance of
satisfactory industrial relations forms an important plank in the personnel policies of modern
organization.
In the broad sense, industrial relations cover all such relationships that a business enterprise
9
workers. It also includes all sorts of relationships at both formal and informal levels in the
organization.
The term industrial relations have been variously defined; J.T. Dunlop defines industrial
relations as “the complex interrelations among managers, workers and agencies of the
governments”. According to Dale Yoder “industrial relations is the process of management
dealing with one or more unions with a view to negotiate and subsequently administer collective
bargaining agreement or labor contract”.
In indusial relations, therefore, one seeks to study how people get on together at their work, what
difficulties arise between them, how their relations including wages and working conditions etc.,
are regulated. The elements of employee relations (Dr. Tilaye, Green 1994, Glossary Of
Industrial Relations) consist of the formal and informal employment policies and practices of the
organization, the development, negotiation and application of formal systems, rules and
procedures for collective bargaining, handing disputes and regulating employment. Industrial
relations also include the processes through which these relationships are expressed.
2.1.2 Significance of Industrial Relations
Maintenance of harmonious industrials relations is on vital importance for the survival and
growth of the industrial’s enterprise. Good industrial relations result in increased efficiency and
hence prosperity, reduced turnover and other tangible benefits to the organization. The
significance of industrial relations can be summarized as below: (Tripathi 2009)
1. It establishes industrial democracy: Industrial relations means settling employees’

problems through collective bargaining, mutual cooperation and mutual agreement
amongst the parties i.e., management and employees’ unions. This helps in establishing
industrial democracy in the organization which motivates them to contribute their best to
the growth and prosperity of the organization.
2. It contributes to economic growth and development; Good industrial relations lead to
increased efficiency and hence higher productivity and income. This will result in
economic development of the economy.
3. It improves morale of the work force: Good industrial relations, built-in mutual
cooperation and common agreed approach motivate one to contribute one’s best,
result in higher productivity and hence income, give more job satisfaction and help
10
improve the morale of the workers.
4. It ensures optimum use of scare resources Good and harmonious.
5. Industrial relations create a sense of belongingness and group- cohesiveness among
workers, and also a congenial environment resulting in less industrial unrest, grievances
and disputes. This will ensure optimum use of resources, both human and materials,
eliminating all types of wastage.
It discourages unfair practices; on the part of both management and unions: Industrial
relations involve setting up machinery to solve problems confronted by management and
employees through mutual agreement to which both these parties are bound. This results
in banning of the unfair practices being used by employers or trade unions.
6. It prompts enactment of sound labor legislation: Industrial relations necessitate passing of

certain labor laws to protect and promote the welfare of labor and safeguard interests of
all the parties against unfair means or practices.
7. It facilitates change: Good industrial relations help in improvement of cooperation,
team work, performance and productivity and hence in taking full advantages
of modern inventions, innovations and other scientific and technological
advances. It helps the work force to adjust them for change easily and quickly.
2.1.3 Causes of Poor Industrial Relations
Perhaps the main cause or source of poor industrial relations resulting in inefficiency and labor
unrest is mental laziness on the part of both management and labor. Management is not
sufficiently concerned to ascertain the causes of inefficiency and unrest, until it is faced with
strikes and more serious unrest.
Even with regard to methods of work, management does not bother to devise the best method but
leaves it mainly to the subordinates to work it out for themselves. Contempt on the part of the
employers towards the workers is another major cause.
However, the following are briefly the causes of poor industrial relations: (SM. Chock Lingam
(Dr.))
11
1) Mental inertia on the part of management and labor;
2) An intolerant attitude of contempt towards the workers on the part of management.
3) Inadequate fixation of pay or pay structure;
4) Unhealthy working conditions;
5) Indiscipline;
6) Lack of human relations skill on the part of supervisors and other managers;
7) Desire on the part of the workers for higher bonus and the corresponding desire of
the employers to give as little as possible;
8) Inappropriate introduction of change without providing the right climate;
9) Unduly heavy workloads;
10) Inadequate welfare facilities;
11) Dispute on sharing the gains of productivity;
12) Unfair labor practices, like victimization and undue dismissal;
13) Retrenchment, dismissals and lock-outs on the part of management and strikes on
the part of the workers;
14) Inter-union rivalries; and
15) General economic and political environment, such as rising prices, strikes by
others, and general indiscipline having their effect on the employees’ attitudes.
2.1.4 Objectives of Industrial Relations (Introduction to Industrial Relation, journal on

web site)
1. To bring better understanding and cooperation between employers and workers.
2. To establish a proper channel of communication between workers and management.
3. To ensure constructive contribution of trade unions.
4. To avoid industrial conflicts and to maintain harmonious relations.
5. To safeguard the interest of workers and the management.
6. To work in the direction of establishing and maintaining industrial Democracy.
7. To ensure workers’ participation in decision-making.
8. To increase the morale and discipline of workers.
9. To ensure better working conditions, living conditions and reasonable Wages.
10. To develop employees to adapt themselves for technological, social and economic
changes.
11. To make positive contributions for the economic development of the Country.
12
2.1.5 Scope
The scope of industrial relations includes all aspects of relationships such as bringing cordial and
healthy labor management relations, creating industrial peace and developing industrial
democracy. (Tripathi S.D. & Arya P P,)
The cordial and healthy labor management relations could be brought in-
 by safeguarding the interest of the workers;

 by fixing reasonable wages; by providing good working conditions
 By providing other social security measures;
 By maintaining healthy trade unions;
 By collective bargaining.
 The industrial peace could be attained –
 by setting industrial disputes through mutual understanding and agreement;
 By evolving various legal measure and setting up various machineries such as
Works Committee, Boards of Conciliation, Labor Courts etc.
 The industrial democracy could be achieved –
 by allowing workers to take part in management; and
 By recognition of human rights.
2.2 Employee Satisfaction

Employee satisfaction is perhaps the most frequently studied construct in the organizational
sciences (Schneider and Brief, 1992). Employee satisfaction has been defined as “a pleasurable
or positive emotional state resulting from the appraisal of one’s job or experience’’ (Locke
1976). Satisfaction involves both feelings and attitudes an employee has about the specific aspect
of the job or the organization.
As with other feelings, employee satisfaction can be either positive or negative. Luthans (1989)
expanded on Locke and described employee satisfaction with in three specific facets: (a)
emotional response to the work environment (b) the relationship between employee
expectations and outcomes, and (c) satisfaction with pay working condition, work contents etc.
Employee satisfaction is a measure of how happy workers are with their job and working
environment. According to Schultz (1998), Employee satisfaction encompasses both the positive
and negative feelings and attitudes that people hold about their jobs and organizational
environment, these depending on many works related and personnel characteristics.
13
Measuring employee satisfaction is another important function of industrial relations. Employee
satisfaction, morale and engagement are intangible references to how well employee enjoy
working for hold about their jobs and organizational environments, these depending on many
work related and personal characteristics.
2.3 Decision Making Style and Employee Participation

2.3.2 Decision Making
The decision-making culture of an organization is reflected by the degree of formalization that it

subscribes to, with a bureaucratic and highly structured approach being negatively related to
satisfaction and commitment (Du Preez, Goodman, Zammuto & Gifford, 2001; Lok &
Crawford, 2001; Odom et al., 1990). The hierarchical decision-making style characterizing a
regulated system seems to be part of the problem (McNeely, 1983; Visser et al., 1997).
A Participating style enhances job satisfaction, specifically in setting standards (Churchill, Ford
& Walker, 1976; Elizur, 1990), management involving staff in decision making (Du Preez, 2003;
Maree, 2000), employees having some degree of influence over their jobs (Gunter & Furnham,
1996) and employees assisting in problem solving (Cohen Rosenthal & Cairnes, 1991).
Several authors (Cohen-Rosenthal & Cairnes, 1991”; Du Preez, 2003; Gunter & Furnham,
McNeely, 1983; Moynihan & Pandey, 2007; Ritter & Anker, 2002; Strydom & Meyer ,
2002 Visser et al., 1997) have concluded that job satisfaction is facilitated significantly
by an organizational culture characterized by positive lateral and vertical relationships among
staff, and by positive interpersonal relationships with people at work contributes to a
supportive environment.
2.3.3 Employee Participation
Key attributes of employee participation, such as open communication, expressing new

ideas, shared vision and common direction are suggested as the key elements in fostering
Satisfaction (Nyhan, 2000).
Participative management is a management style in which the subordinates share a

significant degree of decision-making power with their superiors (Ford and Randolph, 1992).
Participative management encourages employees to participate in the process of making those
decisions which directly affect their working environments.
Employees reciprocate this support by bearing high trust in their supervisors and organization
14
(Meyer and Allen, 1997). Based on this argument, Employee participation can be a key
factor in fostering Satisfaction and improve the acceptance of managerial decisions in
organizations.
2.4 Communication
A number of scholars have noted the important role that communication plays in Satisfaction of
employees (e.g. Sekhar and Anjaiah, 1996). Open communication and accurate information
sharing have been suggested to directly influence variables associated with commitment by
enhancing trust and perceptions of importance (Meyer and Allen, 1997).
In a recent line of research surveying trust - building behaviors in the workplace, open and
honest communication between supervisors and employees is found to be the most important
element in fostering trust in a supervisor (sekhar and anjaiah,1996).Hence, employee see their
organization as trustworthy when communication is accurate and forthcoming. Employees can
express varying Degrees of satisfaction about definite aspects of communication. In research
conducted on information about personal roles in an organization in the USA, employees
receiving useful and sufficient information about what is expected of them related to their work
during change increased their understanding of the goals, vision, norms and values of
organizational decisions.
Receiving sufficient information about future opportunities and career advice encouraged
development and adaptation when an organizational change process commenced (Penley and
Hawkins, 1985). Communication responsiveness shows the degree of supervisor’s consideration
and shows his/her interpersonal concern and emphasis on human relations, especially during
times of organizational change (Penley and Hawkins, 1985).
The rationale for good communications is best summed up by Kaye and Jordan-Evans
(1999): Conspicuously withholding information can lead to deleterious consequences within
the organization. When top leaders share information and expect other managers to share it with
employees, employees tend to feel more included and their trust is reinforced, resulting in
smaller dips in productivity during crises.
Additionally, informed employees are sometimes able to provide solutions to otherwise

unresolved problems. Information sharing includes: strategic directions, the organization's
and industry's future, emerging trends that could affect career possibilities, and other cultural
political realities affecting the organization. These types of information help to support
15
employee career development and advancement.
2.5 Pay and Benefits
Pay and satisfaction with pay is of great importance to employees (Society for Human Resource
Management (SHRM, 2007b)) and to organizations (Bergmann and Scarpello,2002; Dreher et
al,1988; Gehart and Rynes,2003, Heneman and Judge, 2000; Williams et al,2007).
Pay satisfaction is a multidimensional construct. Pay level refers to the individual current direct
compensation in terms of wage and salary; raises refer to change in pay level. Benefits reflect
indirect pay to the individual in the form of health, Retirement and payment for time not worked
and other non-financial returns.
Pay Structure and administration refers to the hierarchical relationships created among pay Rates
for different jobs within the organization and procedures by which the pay system is
administered (Heneman and Schwab,1985).
Employee compensation has long been a topic of interest to employers and employees. The
concept of an employment relationship implies that employees work in exchange for some
reward, and this reward is usually monetary remuneration. Pay, benefits and satisfaction
have emerged as popular Variables for use in organizational research (Carraher etal.,2004 a,b,c;
Gerhart and Rynes, 2003; Scarpello and Carraher, 2008; Williams etal.,2008).They exhibit
significant relationships with organizationally important out comes such as absenteeism,
turnover intentions, perceived organizational attractiveness for job seekers, organizational
citizenship behaviors, and job
Performance (Carraher etal., 2006a,b; Gaiduk et al.,2009; Labatmediene et al., Sturman

etal.,2003). Research with small, medium, and large businesses from around the World
has found that employee benefit and compensation packages can play a strategic role in
enhancing organizational Performance and profitability (Joo, 2000; Mangel and Useem, 2000;
Meyer etal., 2001). Employers view compensation as a major cost factor of production, and as a
necessary inducement for attracting suitable job applicants in addition to retaining valued
employees, motivating performance, and other desirable Behaviors by satisfying employees
(Carter and Van Auken,1990, Sturman etal., 2003). Employer compensation practices are
intended to Provide “fair” compensation (Carraher , 2005; Scarpello and Carraher, 2008).
The term “fair,” however, is defined by the compensation system’s ability to balance competitive
business interest through the cost control of compensation outlays with the compensation goals of
16
attracting, retaining, motivating, and developing a competent work force (Pohlen and
LaLonde, 1994). Because employer business costs vary across industries and countries, “fair”
pay and benefits may be relative terms (Carraher and Welsh, 2009; Gustainiene and
Endriulaitiene, 2009; Kakabadse et al.,2004; Kessleretal., Lunnan and Traavik, 2009; Turk,
2008)
Ensuring that employees are satisfied with their remuneration is critical: pay dissatisfaction has
been shown to influence cognitions and behaviors, Including performance, commitment, trust,
theft, job search, union sentiments, benefit choice, turnover, intention to quit, organizational
effectiveness and tardiness (Currall et al.,2005; Heneman and Judge, 2000; Kisilevitz etal ,
2006; Tekleab et al.,2005; Williams etal., 2006).
2.6 Working Conditions
Working climate may be defined as employees’ perceptions of organizational policies, practices

and procedures. A condition for Work depends on the fundamental support provided by
Organization through resources, training, managerial practices, and assistance required to
perform effectively etc …. (Schneider et al. ,1998). Schneider and Bowen (1993) argued that
Work condition may include some practices which encourage offering high quality service and
creating supportive conditions, such as efforts toward removing obstacles to work, and other HR
policies. General working condition is proposed to have two major components, managerial
support and work facilitation (Yuanqiong He et al., 2010). Managerial support means actions
taken by an employee’s manager in a manner that supports and rewards delivery of quality
service. Work facilitation means all things that support delivery of quality service, such as
general HR practices, guidance, and cooperation among workmates (Yuanqiong He et al. ,
2010).
Liao and Chuang (2004) argued that some behaviors of employees must intervene between the
working condition they experience and the quality of the service they provide for their
customers, which will bring them satisfied. Hence, employee satisfaction may be the important
intervening variable between service quality and working condition (Silva, 2006). Satisfied
individuals believe in, and accept, organizational goals and values. They want to remain in the
organization and commit themselves to provide quality service on behalf of the organization
(Chen, 2007). Working Conditions determines how individuals behave, as it influences how they
think and feel about their environment (Salancik and Pfeffer, 1978). In particular, employees rely
on cues from their surrounding work environment to interpret events, develop appropriate
17
attitudes and behaviors, and the consequences (Salancik and Pfeffer,1978). Organizational
support, as perceived by employees, strongly influences their Commitment (Eisen berger et al.,
1986; Gu and Siu, 2009). Mottaz’s (1988) study of 1,385 employees from various occupations
found that employees who perceived a friendly and supportive relationship with their co-workers
and supervisors had a strong, positive commitment to their respective organizations. Also, Asree
et al. (2010) found that leadership Competency and organizational culture were important factors
for improving employees’ responsiveness to their responsibilities and boost their satisfaction.
Satisfaction of employees’ interest will lead employees to be more committed in their work.
Commitment has been found to be causally – related with employee performance in previous
literature (Chen et al., 2002). Employee commitment serves as a psychological Bond that
encourages individuals to act in ways that are consistent with the interests of the organization.
For instance, Farh et al (1998) found that employee commitment was positively related to sales
performance. Commitment to the organization can be beneficial to customer satisfaction in two
ways. On the one hand, employees generally being committed to their organizations deliver high
quality service to customers (Boshoff and Tait, 1996). On the other hand, committed employees
are satisfied with their work and this feeling of satisfaction will reflected to customers (Ulrich et
al., 1991).
2.6 Conceptual Frame Work
The most commonly used methods for satisfaction surveys are to examine the thoughts and
satisfaction of subjects via questionnaires; the dimensions of the questionnaires are used to
explain the determinants.
The dimensions of the determinants for employee satisfaction surveys vary among different
businesses or organizations. In order to decide which model of Employee satisfaction best
fits the intention of the researcher to measure employees satisfaction level arise out from
industrial relation practice, let us see different models developed to measure employee
satisfaction level.
Fosam et al. (1998) analyzed police organizations to find a suitable employee satisfaction
model taking the South Yorkshire Police (SYP) as an example. The model developed looks as
follows;
18
Küskü (2001) proposed applying employee satisfaction surveys to the employees of a
Turkish college, and applied the following dimensions for measuring their satisfaction:
? General satisfaction;
? Management satisfaction;
? Colleagues;
? Another working group satisfaction;
? Job satisfaction;
? Work environment; and
? Salary satisfaction.
Metle (2003) conducted employment satisfaction surveys on employees in the Kuwaiti public
government sector (KGS), and identified the following employment satisfaction factors:
? Overall job satisfaction;

? Pay and security;
? Co-workers;
? Supervision;
? Promotion; and
19
? Content of work.
Richard P.Viosky and Francisco X. Aguilar develop a model which depicts Employee
Satisfaction (the dependent variable) and six explanatory variables:
? Control/Autonomy/Influence,
? Challenge,
? Performance Measures,
? Feedback,
? Instrumentality, and
? Stability/Security. They summarize on the model figure that the hypothesized
relationships between the six constructs and employee satisfaction.
Their Proposed Conceptual Model tries to identify Antecedents of Employee Satisfaction by the
explanatory variables they identify. According to Justin Field on April 11, 2008 study of
satisfaction model for retention, he has justifies that the fundamental reason that employees
leave organizations is that they are not satisfied. It’s handy to think of the reasons for
dissatisfaction in terms of push factors (things that make employees more dissatisfied) and pull
factors (things that make employees more satisfied). Here looks the model;
Figure 2. Justin Field’s Push and Pull Factor Satisfaction Model
According to Employment satisfaction survey stated in Epinion web site, Nguyen Thi Duyen
Hai identifies some variable to satisfaction of employees .
20
Figure 3. Thi Duyen Hai’s Employee satisfaction Model
In research performed by Sefton (1999), it was determined that there is relationship

between employee satisfaction and the perception of employees, perception of managers and
compatibility between these perception , Sefton determined and employee was more satisfied
when the perception and realities with the work environment were consistent.
Employee
Participation Jobs Satisfaction

Current V. Expect
Current V. Ideal
Communication Satisfaction
Current V. Others Perception
Organizational Commitment
Figure 4. Sefton the relational model of employee participation to satisfaction and other
The relational model of employee participation to satisfaction and other factors in deciding to
choose the model for the study, the employee satisfaction model should incorporate
elements/variables/ in industrial relation which is thought to bring satisfaction on employees.
The elements of employee relations (Dr. Tilaye, Green 1994, Glossary of Industrial Relations,
Dr. SM. Chock lingam) consist of the formal and informal employment policies and practices of
the organization, the development, negotiation and application of formal systems, rules and
procedures for collective bargaining, handling disputes and regulating employment.
More specifically recruitment, selection ,placement, promotion, reward, pay, grievance etc
policies, communication culture of the company, decision making style of management,
union representation, collective bargaining, participation of employees, working conditions,
21
attitudes of employees toward management and vice versa, recognition, Trust, confidence
of employees in management and of management in employees, good interpersonal relations
between all those involved, realistic working agreements and arrangements, a willingness
to work together are all the Constitutes of industrial relation who will affect the relationship
with in the organization and satisfaction of employees.
Since the satisfaction of employees has many contributing factors, each model is developed to
measure different circumstances and determinants. This study specifically tries to measure
attributes of industrial relation elements which contribute for employee satisfaction.
The above models even though, had IR components with in it; it didn’t design specifically for
this purpose. So, on the decision no complete models can be followed. To establish an employee
satisfaction measurement model come out from industrial relation practice, this study will apply
self-designed employee satisfaction model. So the self-developed model that tries to measure
employee satisfaction looks the following.
Attitude of employee’s
management
Working Condition
Employee Satisfaction
Communication
Decision making &
participation
Pay & Benefits

Figure 5. The dependent and Independent variable Model
So the dependent variables are those in the left side and employees’ satisfaction is the
dependent variables for which the change was tested.
22
CHAPTER THREE
Research Design and methodology
3.1. Research Method
Since the major purpose of this study is to evaluate industrial customers ‘satisfaction on service
quality, a descriptive method of research design was used to achieve the research objective. Data
sources used in this research were both primary and secondary. Primary data were collected from
industrial customers found in Addis Ababa region. The sources of secondary data were from
published and unpublished materials like newsletters, manuals, magazines, and annual reports.
3.2 Source of data

Data were collected from primary sources by the use of questionnaires. Documentations, books,
research findings, internet sources and experience reviews will also be used as a secondary
source.
 Primary sources will be used to acquire the direct employee, management and union
leader’s response for the practices of industrial relation and its impact on employee
satisfaction.
 Secondary sources will be used to infer the HR policies, procedures and other rules
govern the HR relation in the organization. Also research findings of other scholars in the
related discipline will also be a secondary source.
3.3 Participants of the study
The study assesses the industrial relation practice and its relation with the resulting employee
satisfaction. The organization under study, Ethiopian Electric Power Corporation has more than
11000 employees in the ten major processes and other director offices all around the country.
Among these processes marketing and sales process owns about 70 % of the work force of the
organization who work in fifteen regional divisions all over Ethiopia. From the fifteen regional
divisions under the marketing and sales process, four of them are found in Addis Ababa namely,
East Addis Ababa, West Addis Ababa, South Addis Ababa and North Addis Ababa regional
offices. Districts are structured under each regional office. Including employees in districts, each
regional office have a considerable number of employees work under it. The composition looks
as follows;
Name of Regions Total Number of No of Districts No of Mgt6 No of Union

23
in A.A5 Employees under it Staffs Leaders
E/A/A/R1 629 19 25 5
W/A/A/R2 539 16 22 5
S/A/A/R3 497 12 18 5
N/A/A/R4 579 22 28 5
Total 2244 69 93 20
1. East Addis Ababa Region 5. Addis Ababa

2. West Addis Ababa Region 6. Management
3. South Addis Ababa Region
4. North Addis Ababa Region
Table 1 Addis Ababa Regional Office Data
(Source; data base of each region HR Administration and services office as of November 15,
2011)
East Addis Ababa Region because of its large number of employees from other regions, and
South Addis Ababa Region because of its high volume of operation (periodical report from
corporate sales monitoring office), are selected to be the target population for this study. The
population composition looks as follows;
Name of Total Number of Number of

Regions in Number of Employees in Employees
A.A Employees regional HQ in Districts
E/A/A/R 629 100 529
S/A/A/R 497 82 415
Total 1126 182 944
Table 2 East and South Addis Ababa Regional Offices Data
3.4 Sample Techniques
To determine the appropriate sample size for the population under study the researcher uses
different sampling number determination mechanisms. With the need to have 95% confidence
level and 5% sampling error, various sampling size have been found with the number of
24
populations under study. Let us see four sampling size determination software and its calculated
results about the sample size of the population of 1126
Sampling size determination table and sample size Results with its respective population size is
shown on the appendix.
Determining the size of a random sample

Sampling Error of 5% with a Sampling Error of 1% with a
Size of the total
confidence level of 95% confidence level of 99%
population (N)
Size of the sample population (S) Size of the sample population S)
50 44 50
100 79 99
200 132 196
500 217 476
1000 278 907
2000 322 1661
5000 357 3311
10000 370 4950
20000 377 6578
50000 381 8195
100000 383 8926
1000000 384 9706
Notes
N=population size
S=sample size
Source Krejcie and Morgan, 1970
Table 3 Sample Size Determination
All the reference in determining sample size gives approximately the same size of sample for the
target population under the study. So, the sample size were 280 employees of the two regions
including management, non-management and union representative employees.
The sampling plan looks as follows.
% share % of No
Tot No of of each of No of Total No of
al Employ region employe Mgt. No of sample
No ees in employe es who sample member No of Sampl s from
of regiona es from Sam work in size for staff in Union es for No of each
Regio Pop l the total ple regional regional each Represe district distri district
n
ns office* Popn size office office region ntatives s cts s
25
E/A/A/
R 629 100 0.56 156 0.16 25 25 5 101 19 5
S/A/A/
R 497 82 0.44 124 0.16 20 18 5 81 12 7
112
Sum 6 182 1 280 0.32 45 43 10 182 31 12
* No of employees outside the regional office who works in districts which is also under the supervision of
regions
Table 4 the sampling frame work
3.5 Instruments
Primary data was collected from the questioners which were collected from employees of the
organization in the selected regions. The questioners have components of industrial relation
factors selected for this study which will expect to have a relationship to employees’ satisfaction
level. Adopted Likert seven point Scale questionnaires will be used to measure the satisfaction of
employees on the selected variables. While there are issues and concerns about the limitation of
such scales, the use of this method appears to have been accepted in behavioral and attitudinal
research, including employee satisfaction (Ellickson 2002, Eskildsen & Dahigaard 2000, Fosam,
Grimsely & Wisher 1998, Scott, Bishop & Chen 2003, Waters & Roach, 1971)
The company employee survey being used for this analysis was administered from December 12,
2011 to December 23, 2011. Employees were randomly selected to participate in the
questionnaire in each district of the two regions. Management and union representative have
twenty two close ended questions and five open ended questions. Employees on the other hand
had twenty three close ended and five open ended questions. The survey uses a seven point
Likert scale having a response from the most positive to the most negative responses.
The media for collecting the data is the traditional paper and pencil. Each respondent is given
two days to fill and return the questionnaires. Part of the questionnaires are distributed for high
level management staffs and Head office employees to have a diverse view of the issue in the
organization and to have a reliable data source. The seven Point Likert scale response option for
the participant are shown below;
Strongly Agree Disagree Strongly

No
Agree Agree Somewhat Somewhat Disagree Disagree
Opinion
26
Very
Satisfied Satisfied No Somewhat Very
Satisfied Dissatisfied
Somewhat Opinion Dissatisfied Dissatisfied
Very Somewhat No Somewhat Very

Attractive Unattractive
Attractive Attractive Opinion unattractive Unattractive
Table 5 seven point Likert scale used in the research for survey data collection
3.5.1 Validity
Regarding the test of validity the questions on the questionnaire are adopted from different
researches. These researches are published sources. So the questions are checked for their
validity on the former study.
On the other hand the questionnaire before dispatched to the target population was assessed by
HR professionals both inside and outside the organization. Regarding its contents and clarity of
questions employees around twenty were randomly selected from different department of the
company and comment their suggestions and amendments on its clarity for the respondents.
3.5.2 Reliability
The seven point scale anchored by standard “strongly disagree” and “strongly agree” designation
will be used. Since the seven pint Likert scale is more common in various areas of research, the
general population is familiar with the format. Therefore, in addition to external validity, the use
of a Likert scale could be considered a benefit as it would reduce the amount of potential
confusion and increase the internal validity of the questionnaire.
For the data to be a reliable source of information employees from two regions are selected
randomly from districts and regional offices. In addition from having a respondent from these
regions some questionnaires are distributed to head office employees to have a diverse view of
the employee response. This in turn will make the information reliable for conclusion to the
behavior of the employees in the organization.
Regional officers are one of the top management members after the deputy GM (process owner)
of the organization. This and additional questionnaires obtained from high level management
members make the result obtained from management response more reliable source of
information. Almost all of such high level managers work in Head office at the corporate level
post
27
In the process of obtaining data from union representatives, corporate level union representatives
(including the union leader) are participated in the response of questionnaire. By this fact we can
easily conclude that most of the union representative around all corner of the company can be
represented by the date we obtain. All this facts can contribute for the reliability of the data we
obtain for the study being undertaken. So we can conclude that the finding of the study will most
probably be a representative of the larger population of the employees of EEPCo (the company
under the study).
Reliability Test result of the Instrument
Employee Measure
Reliability Statistics
Cronbach's
Alpha N of Items
.819 5
Management
Cronbach's
Alpha N of Items
.837 5
Union
Cronbach's
Alpha N of Items
.931 5
28
3.6. Data analysis and presentation
3.6.1 Quantitative data analysis
3.6.2 Qualitative
3.7 Human Subject

The survey instrument is administered and processed in a confidential nature; therefore, there are
no inherent risks associated with the completion of the employee opinion survey. All employees
participating in the survey did so voluntarily and the individual information is not accessible to
the company population or any other persons in the manner that one would be able to detect the
identity of a specific individual.
Prior to their participation in the survey, employees are made aware that their input is
confidential. Certain Benefits, However, are potentially available to management and employees
through the analysis of the data collected. Some of the management members as well as a lot of
employees expressed their interest in reading the finding and conclusion of this research.
CHAPTER FOUR
DATA PRESENTATION ANALYSIS AND INTERPRETATION
Sampling plan and response rate

The study has intended to have 280 sample sizes to which the questionnaire will be distributed.
These include three categories: management, employees and union representatives. Out of this
251 questionnaire sample were responded to the study which shows 90 % of the plan was
successful in collecting the questionnaire. This has impact on the representativeness of the
sample in its result. The detail is presented as follows:-
Intended Responde
Category sample size d Percentage
Employees 227 212 0.93
Management 43 30 0.70
Union Representatives 10 9 0.90
29
Total 280 251 0.90
Table 6 Sampling plan and actual performance
4.1. Characterstics of Respondents

4.1.1. Sex
Category
Employe Union
Sex e Management Representatives Total Percentage
Male 122 23 8 153 0.61
Female 85 7 1 93 0.37
Not Responded 5 5 0.02
Total 212 30 9 251 1.00
Table 7 Sex Category of the respondent
4.1.2 Age
Category
Employe
Age e Management Union Representatives Total Percentage
Under 20 3 3 0.01
20 to 30 93 13 1 107 0.43
30 to 40 54 15 4 73 0.29
40 to 50 50 2 4 56 0.22
Above 50 8 8 0.03
Total 212 30 9 251 1.00
Table 8 Age Category of the respondent
From the above data i can see that majority of the respondents were male and young respondents.
So the population can also be estimated to have such character. So it can be inferred the company
to have a young and energetic work force which the company can manipulate and use as an asset
for a long years if handled properly.
30
4.1.3 Education Statues
Category
Union
Level of Education Employee Management Representatives Total Percentage
Under 12th Grade 4 4 0.02
12 Grade complete 15 15 0.06
Certificate 15 1 16 0.06
Diploma 104 3 107 0.43
First Degree 68 28 5 101 0.40
Second Degree 2 2 0.01
Others(Advance Diploma, 10+2,
12+2) 3 3 0.01
Not responded 3 3 0.01
Total 212 30 9 251 1.00
Table 9 Education level of the respondent
4.1.4 Years of service

Category
Union
Service year Employee Management Representatives Total Percentage
Under 1 Year 3 3 0.01
1 to 3 Years 7 7 0.03
3 to 5 years 39 5 44 0.18
5 to 10 Years 73 19 1 93 0.37
More than 10 Years 89 6 8 103 0.41
Total 212 30 9 251 1.00
Table 10 Service year of the respondent
The Above two tables indicate that more than 80 % of respondents are professionals and semi
professionals with diploma and first degree and serve for long years in the company. This makes
the data obtained more reliable and representative of the exact figure /picture/ of the population
and the organization.
31
4.2. Major Findings
Attitude of Employees, Management and Union

4.2.1Employees
Figure 6 Score of Attitude of Employees towards Management
4.21.1 Management
Figure 7 Score of Attitude of Management towards Employees
The above graphs shows how frequent (shown on the vertical axis) employees and management
rate (the horizontal axis) their attitudes toward each other on their organization. And the
32
horizontal axis declined on the right side shows the lowest rate given for the attitude they had for
each other. The vertically standing bars on the horizontal axis show how frequent the response
was for each rate given. To the right side of the attitude axis present the positive response and
satisfaction and to the right side shows the negative response and dissatisfaction. The same is
true for the next graph with union representative and management.
4.2.1.2 Union
Figure 8 Score of Attitude of Union towards Management
33
4.2.2Communication in Employees, Management and Union
4.2.2.1Employees
Figure 9 Score of Employees satisfaction on communication in the company
4.2.2.2 Management
Figure 10 Score of Management satisfaction on communication in the company
34
4.2.2.3 Union
Figure 11 Score of union representative satisfaction on communication in the company
The above three graphs shows response of employees, management and union representatives on
the communication they get form their organization. And the horizontal axis declined on the left
side shows the lowest rate given and vice versa. The vertically standing bars on the horizontal
axis show how frequent the response was for each rate given.
4.2.3 Working Condition in Employees, Management and Union
The next three graphs were depicted to show the response of the three groups of respondents;
Employees, management and union representatives on the working condition they have on EEP.
As it has been explained on the previous graphs the graphs to the right side on the horizontal axis
shows the positive response and the vertical bar show the frequencies for each response.
35
4.2.3.1 Employees
Figure 12 Score of Employee on working condition in the company
36
4.2.3.2 Management
Figure 13 Score of Management on working condition in the company
4.2.3.3 Union
Figure 14 Score of Union on working condition in the company
37
4.2.4 Decision Making in Employees, Management and Union
Employees
Figure 15 Score of Employee response on Decision Making in the company
38
4.2.4.1 Management
Figure 16 Score of Management on Decision Making in the company
4.2.4.2 Union
Figure 17 : Score of Union response on Decision Making in the company
The graphs in the decision making subtopic shows the respondents response on the decision
making culture in the organization. Their satisfaction will be measured by how much responses
lay above the middle point. And to the left side the rate become lower and on the right side the
rate increases. Up on this rate, frequencies will be measured to decide on how much employees
were satisfied or dissatisfied. To the left side of the horizontal axis the response values will
become lesser and lesser and to the right side the response value will become increased. It can be
interpreted that responses which lies above the average rate will considered to be satisfied on
their view and the reverse is true.
39
4.2.5. Pay and Benefit in Employees, Management and Union
Employees
Figure 18 Score of Employee response on Pay and Benefits in the company
4.2.5.1Management
Figure 19 Score of Management response on Pay and Benefits in the company
40
4.2.5.2Union
Figure 20 Score of Union response on Pay and Benefits in the company
The above three figures on the pay and benefit topic shows the satisfaction and dissatisfaction
response of employees, management and union representatives on the pay and benefit package
their company offers for their contribution. On the left side of the graphs the lowest value were
given and the value become increased when we go to the right.
4.2.6 General View of satisfaction in Employees, Management and Union

The next three graphs show the total Industrial relation practice. As the same as the above
graphs, to the left side the value decreases and to the right side the value increases which is the
dissatisfaction and satisfaction response respectively. The vertical side shows the frequencies of
each response. The five variables tested are merged to give this result. The graphs shows
employees, management and union representatives respectively.
41
4.2.6.1 Employees
Figure 21 Score of Employee response in satisfaction in all variables tested
4.2.6.2 Management
Figure 22 Score of Management staffs in satisfaction in all variables tested
42
4.2.6.3 Union
Figure 23 Score of Union Representatives in satisfaction in all variables tested
4.7 Review of Ideas from Open Ended Questionnaires

4.7.1 Reasons for not having positive Attitude each other
4.7.1.1Employees
- Insufficient payment which fit job, lack of management skill and professional measures,
unavailability of materials including safety equipments.
- Unfair labor practice like ignoring HR issues, promotion without merit consideration.
Always in court with labor union about the benefits and payments for employees of the
organization, Inequality in treatment of employees, disrespecting the rights of employees.
- Employee questions are not answered, priorizing management interest.
- Do not give time and willingness to meet with employees because of this management
didn’t exactly know how the employees feel and what their interest is.
- They didn’t know the feeling of employees because there are no opportunities to meet at
large each other.
- Lack of openness, luck of participation of employees in their decisions.
- Because Employees continually expressing their unfulfilled interests and their stand to
management.
- Not considering employees effort and contribution thoroughly.
43
- Labor market condition. Lack of modern HRM concept and ignoring the importance of
HR.
- Lack of Good Governance, Fear on Decision.
- Fear to face/confront/ employees.
- Underestimating Employees
4.7.1.2 Management
- Employees thought about management as ignorant that have a little commitment to
improve the working conditions, pay and benefit and employees participation in issues
affecting their work.
- Employees’ complaint in fulfilling responsibility of management specially, in improving
benefits and working condition.
- No open communication between management and employees.
- Employees’ expectation that management didn’t value and expect its employees.
- Management always decides on its side, ignoring employees’ interest.
- Loose of willingness to work cooperatively in employee issue.
- Delay in decision regarding employee benefits.
- Loose of motivation and trust to the company and management.
- Lack of employees ownership mentality in the organization, raise only their own
problems not the company’s problem and participate in unlawful activities like theft and
expecting extra benefit from customers.
- Minimum Performance by employees, lack of confidence on what was decided.
- Expect employees always as a benefits seeker.
4.7.1.3 Union
- Management always decides on its side; do not consider employees’ interest.
4.7.2 Reasons for Dissatisfaction in Organization

4.7.2.1 Employees
- Promotion and transfer is not based on merit rather by nepotism and other affiliations like
political affiliation, payment and benefits (which is low to the standard and as compared
to other similar organizations), ability of management on its profession, unequal
treatment, and little attention to human resource of the organization, disrespecting
seniority.
- Injustices and luck of openness in Management.
44
- Lack of good HR practices, Policies and Procedure (example, Hiring, Promotion, transfer
etc… are blocked for the last four years.)
- Lack of Willingness to accept problems when raised.
- Employee developments are not considered (employees which develop themselves don’t
get a better position for a long years).
- Bad External Image of the company.
4.7.1.2Union
- Lack of communication between management and employees.
- Good Governance.
4.7.3 Issues in decision making

4.7.3.1 Employees
- Most of the time technical decision will result in problems because of lack of technical
knowhow on management side with lack in opportunities to participate technical
employees.
- When we get a chance to offer a suggestion, usually we give a wrong opinion which we
ourselves even don’t believe in. This is just because of fear of consequence. We have so
many experiences on such case.
4.7.3.2 Management
- Almost centralized,
- Districts and regions are losing their decision making power every day (like purchase,
transformer allocation and like).
4.7.3.3 Union
- Fear of employees
- Should perform to increase the capacity and involvement of employee indecision making.
4.7.4 What should be done to decrease Dissatisfaction with pay and Benefit Offered?
4.7.4.1Employees
- The scale is not revised for long years so employees become frustrated.
- At least as compared to other companies with similar characteristics in the market and
living standard of the country.
- Benefits like closes and other things should come on time.
- Performance Related pay.
- Transport allowance should be added.
45
4.7.4.2 Management
- Fair and timely remuneration is needed, should go in line with market, Performance
Based pay is necessary should also be continuously revised.
- Transport allowance should be added.
4.7.5 Expressing Working Conditions

4.7.4.3 Management
- Not good at all, far from technology, bureaucratic, poor and becoming worst each day.
- Uncomfortable due to discriminating and grouping of individual in some base of
similarities (like same background, same batch etc….). Especially in management
position.
- Especially bad for management position.
46
CHAPTER FIVE
SUMMARY, CONCLUSSION AND RECOMMENDATION
5.1. Summary
The study as described in the methodology part uses the seven point Likert scale which
ranges from strongly Agree to strongly disagree options. Questions have a positive meaning
in the questionnaire for the three categories of employees. Because of this strongly agree
option has a large value as opposed to strongly disagree which has a smaller value. The
scale has a mean value of 4 four which is described as a middle position on the satisfaction
measurements of the instrument. So the discussion will be on how employees are lied on
each variables tested and presented on the scale as it is describe data analysis and
presentation part of the chapter.
5.1.1. Attitude
Regarding Attitude of employees, unions and management each other the finding of the
study shows that 73 % of employees in the organization are dissatisfied with the attitude
they have in the company. Such number of employees fill that management do not have
positive attitude towards its employees in the organization and employees too on their
management. Also the labor union representatives, 55 % of the sample respondents agree
with employees stand. On the management side 56 % of the respondents do have similar
attitude as to employees have. The rest respondents in each group think that, management
and employees have a positive attitude towards each other in the organization.
5.1.2. Communication
In measuring communication in the satisfaction of employees in the three categories of
employees, except for the union representative, management and employees are 53% and 47 %
of them are satisfied with the communication they have with the organization respectively.
However, the representatives of labor union responded 56 % dissatisfaction with the
communication in the organization. This can have an implication that things which have to be
communicated specifically to the labor unions are not communicated to the leaders as it has been
expected. This might create dissatisfaction on the part of union specifically.
5.1.3. Working condition

When we look at figure 12, 13 and 14 on the working condition data analysis; 69%, 57% and
77% of employees, management and union representative respondents respectively lie below the
mean value of the score. This in turn implies that above average employees is living with the
47
dissatisfaction of the company because of its bad working conditions. Because of that employees
are more vulnerable to leave the company are not willing to recommend their friend to enjoy the
company whom they work for.
5.1.4. Decision making

According to this category 53% of employees and management were fill satisfied with the
decision making culture they get from their company. When we see the result in the union
representatives, 67% of the respondents fill dissatisfied with the participation opportunity they
get from their organization in the decision making. This shows the little opportunities given
particularly for the representative of the labor in the company which make it a source of
dissatisfaction. This is thought as to be insufficient by the representatives of the labor union.
5.1.5. Pay and Benefits

What is obtained in this variable is unique. All categories of employees are highly dissatisfied
with the pay and benefit their company offer for their contribution. Although the results of
management respondent were little bit better than employees and union representatives, almost
more than 80 % of employees lay below the mean value of the measures. To see the figures
obtained 88% of employees, 80% of management and 88% of union representatives respond that
they are dissatisfied with the pay and benefit their company offers. This can be a symbol for the
high dissatisfaction of employees in the company with the pay policies and benefit packages that
the company offers. Employees fill unsatisfied with the pay and benefits they get both relatively
and absolutely.
5.2. CONCLUSSION
As it can be seen from figure 21, 22 and 23 which summarized the five variables and its score on
respondents’ response, the average results of employees’ response shows that 62 % of employees
fill dissatisfied with the Industrial relation practice of the company. And also 60 % and 67% of
management members and union representatives respectively fill dissatisfied with the industrial
relation practice of the organization. This dissatisfaction might result a treat to the company
performance. High Turnover, low productivity, corruption, theft and other unlawful
consequences might come with such environments. At this time because of this and other reasons
(which require further investigation) employees are leaving the company and there are lots of
open positions. Here below is the sample monthly HR report of Distribution system for the
month of Hidar 2004.
48
5.3 RECOMMONDATION
On the staff Presently Difference in %
No HR Status Plan Available Number Available
1 Staffs outside Projects 1807 840 967 46
2 Professionals 106 43 63 40
3 Non Professionals 1085 334 748 41
Table 111 HR current status in Distribution System of EEPCo
Source; Corporate monthly report
Also, the management and union representatives show a significant number of dissatisfaction
responses on the survey. This will have an impact on the leader ship capacity, innovativeness and
lack of motivation to their work both in management and non-management staffs of the
organization. Satisfied and motivated manager can contribute a lot for motivating and
encouraging employees and make them more productive for work.
So, from the finding in the study employees are highly dissatisfied in the pay and Benefit
provided. A revision on the pay policies and rules is required to update to the market relative
value and living standard of the nation. Transport allowance is highly recommended by most of
the respondents.
The management should arrange a regular mass meeting with the larger employees to have a
common understanding each other. In addition, from such meetings, periodical surveys should be
employed to watch over the intent of employees. Such efforts will cover core employee and
management issues. This will foster mutuality and trust both in management and employees. On
the side of employees filling of recognition and participation will be enhanced and on the side of
management full understanding of employees’ intention and confidence will be developed.
49
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Appendixes One
 Three Questionnaires of the respondents have to be here and attached on the separate
folder.
Note: The margins of error used in the table ware.03 for continues data and .05 for categorical
data. Researchers may use this table if the margin of error shown is appropriate for there study,
however, the appropriate sample size must be calculated if these error rates are not appropriate.
Table developed by Bartlett, Kotrlik & Higgins.
58
Population and respective sample sizeSource, organizational Research: Determining
Appropriate Sample Size in Survey RJames E. Bartlett, IIJames E. Bartlett, II Joe W. KotrlikJoe
W. Kotrlik Chadwick C. HigginsChadwick C. Higgin
59
Qestionnairs
Employees questionnairs
ይህ መጠይቅ በኢትዮጵያ ኤሌክትሪክ ኃይል ኮርፖሬሽን በተመረጡ የአዲስ አበባ ሪጅኖች ውስጥ በኢንዱስትሪያል
ግንኙነቶችና በሰራተኞች እርካታ መካከል ስላለው ግንኙነት ለማወቅ ለሚደረግ ጥናት የተዘጋጀ መጠይቅ ነው፡፡ ከመጠይቁ
የሚገኘው መረጃ ትምህርታዊ አላማ ብቻ ያለው ሲሆን መረጃውም ለጥናቱ አላማ ብቻ የሚውል ይሆናል፡፡ በመጠይቁ ላይ
የእርሶን ማንነት መግለጽ አስፈላጊ አይደለም፡፡ ለጥያቄዎቹ ትክክለኛና ግልጽ የሆነ መልስ መስጠቶ ለጥናቱ ስኬታማነት
ከፍተኛ የሆነ አስተዋጽኦ ይኖረዋል፡፡
የቃላት መግለጫወች
- የኢ.ኤ.ኃ.ኮ. የሚለው የኢትዮጵያ ኤሌክትሪክ ኃይል ኮርፖሬሽን ለማለት ነው፡፡
- ማኔጅመንት የሚለው የኢትዮጵያ ኤሌክትሪክ ኃይል ኮርፖሬሽን የስራ መሪ ማለት ነው፡፡
- ማሕበር የሚለው የኢትዮጵያ ኤሌክትሪክ ኃይል ኮርፖሬሽን የሰራተኞች ማህበር ማለት ነው፡፡
መመሪያ
- እያንዳንዱ ጥያቄወች ሰባት ምርጫዎች ያሉዋቸው ሲሆኑ ከሰባቱ ምርጫዎች ለእርሶ የሚስማማው አንድ ምርጫ
ላይ ምልክት በማድረግ ያልፋሉ ማለት ነው፡፡ ምርጫ ያልተቀመጠላቸው ጥያቄዎች ላይ ነጻ የሆነ ሃሳቦትን ማስፈር
የሚችሉ ሲሆን ለጥያቄወቹ የተሰጠው ቦታ ካልበቃዎት የጥያቄ ቁጥሩን በመጻፍ ከመጠይቁ ጀርባ ባለው ባዶ ቦታ
ላይ ሃሳቦትን መግለጽ ይችላሉ፡፡
ስለ ትብብርዎ እናመሰግናለን!
ለጠቅላላ መረጃ ብቻ
1. ጾታ ወንድ ሴት
2. ዕድሜ
1. ከ 20 በታች 3. ከ 30 እስከ 40 5. ከ 50 በላይ
2. ከ 20 እስከ 30 4. ከ 40 እስከ 50
3. የትምህርት ደረጃ
1. ከ 12 ኛ ክፍል በታች 4. ዲፕሎማ 7. ሌላ ይጥቀሱት ------------------------
2. 12 ኛ ክፍል ያጠናቀቀ 5. ዲግሪ
3. ሰርተፍኬት 6. ሁለተኛ ዲግሪና ከዚያ በላይ
4. የአገልግሎት ዘመን
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1. ከ 1 ዓመት በታች 4. ከ 5 ዓመት በላይ እስከ 10 ዓመት
2. ከ 1 ዓመት በላይ እስከ 3 ዓመት 5. ከ 10 ዓመት በላይ
3. ከ 3 ዓመት በላይ እስከ 5 ዓመት
ሠራተኞች፤ የስራ መሪዎችና የሰራተኛ ማህበር ያላቸው አመለካከት
በጣም በመጠ በመጠ በጣም

እስማማ እስማ ኑ አላው ኑ አልስማ አልስማ
ለሁ ማለሁ እስማማ ቅም አልስማ ማም ማም
ለሁ ማም
ማኔጅመንት ስለ ሰራተኛው
የኢ.ኤ.ኃ.ኮ. ማኔጅመንት ስለ ሰራተኛው ቀና
የሆነ አመለካከት አለው፡፡
ሰራተኛ ስለማኔጅመንትና ስለ ማህበር

የኢ.ኤ.ኃ.ኮ ሰራተኛ ለኢ.ኤ.ኃ.ኮ. ማኔጅመንት
ቀና የሆነ አመለካከት አለው፡፡
የኢ.ኤ.ኃ.ኮ. ማኔጅመንት ከሰራተኛው ማህበር

ጋር በሰራተኞች ጉዳይ ዙሪያ በቀናና በመተባበር
መንፈስ ይሰራል፡፡
መሰረታዊ የሰራተኞች ማህበር የሰራተኞቹን

መብትና ጥቅም ከማስጠበቅ አንጻር ያለበትን
ኃላፊነት በአግባቡ ይወጣል፡፡
ስላለው ግንኙነት በጠቅላላው

ለስራ መሪወች ቀና የሆነ አመለካከት ቢኖረኝ
በስራዮ ላይ ደስተኛ እሆናለሁ፡፡
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6. ሰራተኛው ለማኔጅመንት ቀና የሆነ አመለካከት የለውም ብለው ካሉ ምክንያቶቹ ምንድን ናቸው ብለው ያስባሉ?
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7. ማኔጅመንት ለሰራተኛው ቀና የሆነ አመለካከት የለውም ብለው ካሉ ምክንያቶቹ ምንድን ናቸው ብለው ያስባሉ?
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ግንኙነት
በጣም በመጠኑ በመጠኑ በጣም

እስማማ እስማማ እስማማ አላው አልስማ አልስማ አልስማ
ለሁ ለሁ ለሁ ቅም ማም ማም ማም
ሠራተኞች በስራ ላይ የራሳቸውን ሀሳብና አስተያየት
እንዲሰጡ ይበረታታሉ፡፡
ድርጅቱ የሚጓዝበትን አቅጣጫ፣ ተልዕኮውን፤

ራዕዩንና የረጅም ግዜ እቅዱን በግልጽ አውቃለሁ፡፡
ለምሰራበት ድርጅት የምሰራው ስራና የማበረክተው

አስተዋጽኦ እውቅና ያገኛል ፡፡
በድርጅቱ ውስጥ ስለሚካሄደው ነገር በቂና ወቅቱን

የጠበቀ መረጃ ይደርሰኛል፡፡
ከሌሎች የስራ ክፍሎች በቂ የሆነ ድጋፍና ትብብርን

በስራችን ላይ እናገኛለን፡፡
እኔንና ስራዬን በሚመለከት የሚወሰኑ ውሳኔወች

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ላይ በቂ የሆነ ተሳትፎ እንዲኖረኝ ይደረጋል፡፡
የስራ አካባቢ/የስራ ባሕሪይ/
1. በአጠቃላይ በድርጅትዎ እንደተቀጣሪ ሰራተኛ ምን ያክል ደስተኛ ኖት?
በጣም ደስተኛ ደስተኛ በመጠኑ ደስተኛ ምንም አላውቅም በመጠኑ ደስተኛ አይደለሁም ደስተኛ
አይደለሁም በጣም ደስተኛ አይደለሁም   
   
2. ድርጅቶትን ከሌሎች ከሚያውቋቸው ድርጅቶች ጋር ሲያወዳድሩት ምን አይነት ድርጅት ነው?
በጣም የሚስብ የሚስብ በመጠኑ የሚስብ ምንም አላውቅም በመጠኑ የማይስብ የማይስብ
ምንም የማይስብ    
  
3. ጓደኛዬ ወይንም የምቀርበው ሰው እዚህ ድርጅት ውስጥ እንዲቀጠር እመክረዋለሁ፡፡
በጣም እመክረዋል እመክረዋል በመጠኑ እመክረዋል ምንም አላውቅም በመጠኑአልመክረውም

አልመክረውም በጣም አልመክረውም   
   
4. በአጠቃላይ በዚህ ድርጅት ደስተኛ ካልሆኑ ደስተኛ ሊያደርጎት ያልቻሉት ዋነኛ ምክንያቶች የትኞቹ ናቸው?
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ውሳኔ አሰጣጥ

በስራዬ ላይ መወሰን ያለብኝን ነገር ለመወሰን በቂ
የሆነ እድል ይሰጠኛል፡፡
በስራዬ ከኔ በላይ ካሉ አካላት ጋር የመነጋገርና

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የመወያየት በቂ የሆነ እድል አለኝ፡፡
አለቃዩ ለመወሰን በሚፈልገው ጉዳይ ከእኔ ጋር

የመማከር ልማድ አለው፡፡
በውሳኔወች ላይ በምሰጠው አስተያየት

ከማኔጅመንት የማገኘው ምላሽ አስደሳች ነው፡፡
5. በውሳኔ ላይ ባሎት ተሳትፎ ተጨማሪ ሊናገሩት የሚፈልጉት ጉዳይ ካለ፤

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ክፍያና ጥቅማ ጥቅም

የሚከፈለኝ ክፍያ ከምሰራው ስራና ካለብኝ ሃላፊነት
ጋር ተመጣጣኝ ነው፡፡
ይሄ ድርጅት ከሌሎች ድርጅቶች ጋር ሲወዳደር

የተሻለ ክፍያ ይከፍላል፡፡
በአጠቃላይ ድርጅቱ ውስጥ የማገኘው ክፍያና

ጥቅማ ጥቅሞች በቂና ደስተኛ የሚያደርጉኝ
ናቸው፡፡
ድርጅቱ ሁልጊዜም የተለያዩ ነባራዊ ሁኔታዎችን

በማገናዘብ የክፍያ ማሻሻያዎችን ያደርጋል፡፡
በአጠቃላይ በድርጅቱ ውስጥ በማገኘው ክፍያና

ሌሎች ጥቅማ ጥቅሞች ደስተኛ ነኝ፡፡
6. በአጠቃላይ በድርጅቱ ውስጥ በሚከፈሎት ክፍያና በሚያገኙት ጥቅማ ጥቅሞች ደስተኛ ካልሆኑ ምን ነገሮች
መደረግ አለባቸው ብለው ያስባሉ?
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___________________________________ እናመሰግናለን!
Management Questionnairs
The study is being taking place on the relationship between industrial relation practice of the
company and employee satisfaction level by taking Ethiopian Electric Power Corporation as a
case. So this questionnaire will be distributed for selected regions of the company around Addis
Ababa. Any information obtained through this questionnaire will be used only for educational
purpose. There is no need to mentions your identity on this questionnaire since it will not
contribute for the intention of the study. Your clear and correct response for the questionnaires
will give us a lot.
Used Abbreviations
- EEPCo. Is used to mean Ethiopian Electric Power Corporation.
- Management is used to refer management of Ethiopian Electric Power Corporation.
- Union is used to mean the labor Union of Ethiopian Electric Power Corporation
Employees.
Instruction
- There exist seven choices for each question to see your agreement or disagreement on the
statements. You can choose one from the alternatives. For the open ended questions you
have provided with the space for your free statement and if you need to add additional
point you can use the blank space at the back of the questionnaire by mentioning the
number of the question that you need to elaborate.
THANK YOU FOR YOUR COOPERATION!
for statistical purpose only
3. sex male female
4. age
4. Between 20 to 30 3. Between 40
to 50
65
5. Between 30 to 40 4. Above 50
6. Your Level of Education
1. 12th grade complete 4. First Degree

7. Other specify -------------------
2. Certificate 5. Second Degree
3. Diploma 6. PHD
7. Years of Service
3. Below 1 year 4. Above 5 years to 10

years
4. Above 1 year to 3 years 5. Above 10 years
3. Above 3 years to 5 years
Attitude of Employees, Management and Union each other
Stron Agree Disagr Strongl

gly Agre Somew No ee Disagr y
Agre e hat Opinio Somew ee Disagr
e n hat ee
Employees towards Management
Employees have positive attitude
towards management in EEPCo.
Management towards Employees and

union
Management has a positive attitude
towards its employees.
Management has a positive and

cooperative attitude towards labor
union.
66
The labor union of the Employees has a
capacity to represent employees to
secure their rights they deserve.
Towards the relation each other

I would be happy if I had a positive
attitude towards employees and their
union?
6. If you think that, employees don’t have a positive attitude towards management, what do you
think is the reasons?
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_________________________
7. If you think that, management doesn’t have a positive attitude towards employees, what do you
think is the reasons?
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_________________________
Communication
Stron Agree Disagre Strongl

gly Agre Somew No e Disagr y
Agre e hat Opinio Somew ee Disagre
e n hat e
Employees are encouraged to offer their
opinions and ideas.
67
I understand the long-term strategy,
vision, mission and strategic direction of
EEPCo.
I feel recognized for the contribution I

make to this organization.
The communication I received from
company is accurate and timely.
I get the Full cooperation I need from

those outside my department.
I receive enough opportunity to interact

with Upper management on a formal
level.
Working Condition
1. Overall, how satisfied are you with EEPCo as an employer?
Very Satisfied Satisfied Somewhat Satisfied No Opinion Dissatisfied

Somewhat Dissatisfied Very Dissatisfied
    
 
2. How do you rate company as a place to work compared with other companies you know
about?
Very Attractive Attractive Somewhat Attractive No Opinion Somewhat

unattractive Unattractive Very Unattractive
    
 
3. I would recommend employment at EEPCo to a friend.
Strongly Agree Agree Somewhat Agree No Opinion Disagree

Somewhat Disagree Strongly Disagree
68
    
 
4. How do you describe the general working condition of this organization?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________
Decision Making Style
Stron Agree Disagre Strongl

gly Agre Somew No e Disagr y
e n hat e
I am given enough authority to make
decisions I need to make.
My superior asks me for my input to help

make decisions.
If I have ever offered suggestions to

management, I Was satisfied with the
response?
4. How satisfied are you with your involvement in decisions that affect your work?
Very Satisfied Satisfied Somewhat Satisfied No Opinion Dissatisfied

Somewhat Dissatisfied Very Dissatisfied
    
 
5. Anything you want to add in decision making style of management.
_______________________________________________________________________________
_______________________________________________________________________________
____________________________________________________
69
Pay Policy
Stron Agree Disagr Strongl

gly Agre Somew No ee Disagr y
e n hat e
My salary is fair for my responsibilities.
This organization pays well compared to
other organizations.
I am satisfied with the benefits package

this organization offers.
This organization continually tries to
improve its benefit packages by
considering different situational factors.
Overall, I'm satisfied with all benefit

(including pay and other benefits) I get
from EEPCo
6. What things should you think be considered to the pay and benefit package of the
company to make employees satisfied?
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
___________________________________
THANK YOU!!!
70
Union Questionnairs
ይህ መጠይቅ በኢትዮጵያ ኤሌክትሪክ ኃይል ኮርፖሬሽን በተመረጡ የአዲስ አበባ ሪጅኖች ውስጥ በኢንዱስትሪያል
ግንኙነቶችና በሰራተኞች እርካታ መካከል ስላለው ግንኙነት ለማወቅ ለሚደረግ ጥናት የተዘጋጀ መጠይቅ ነው፡፡ ከመጠይቁ
የሚገኘው መረጃ ትምህርታዊ አላማ ብቻ ያለው ሲሆን መረጃውም ለጥናቱ አላማ ብቻ የሚውል ይሆናል፡፡ በመጠይቁ ላይ
የእርሶን ማንነት መግለጽ አስፈላጊ አይደለም፡፡ ለጥያቄዎቹ ትክክለኛና ግልጽ የሆነ መልስ መስጠቶ ለጥናቱ ስኬታማነት
ከፍተኛ የሆነ አስተዋጽኦ ይኖረዋል፡፡
የቃላት መግለጫወች
- የኢ.ኤ.ኃ.ኮ. የሚለው የኢትዮጵያ ኤሌክትሪክ ኃይል ኮርፖሬሽን ለማለት ነው፡፡
- ማኔጅመንት የሚለው የኢትዮጵያ ኤሌክትሪክ ኃይል ኮርፖሬሽን የስራ መሪ ማለት ነው፡፡
- ማሕበር የሚለው የኢትዮጵያ ኤሌክትሪክ ኃይል ኮርፖሬሽን የሰራተኞች ማህበር ማለት ነው፡፡
መመሪያ
- እያንዳንዱ ጥያቄወች ሰባት ምርጫዎች ያሉዋቸው ሲሆኑ ከሰባቱ ምርጫዎች ለእርሶ የሚስማማው አንድ ምርጫ
ላይ ምልክት በማድረግ ያልፋሉ ማለት ነው፡፡ ምርጫ ያልተቀመጠላቸው ጥያቄዎች ላይ ነጻ የሆነ ሃሳቦትን ማስፈር
የሚችሉ ሲሆን ለጥያቄወቹ የተሰጠው ቦታ ካልበቃዎት የጥያቄ ቁጥሩን በመጻፍ ከመጠይቁ ጀርባ ባለው ባዶ ቦታ
ላይ ሃሳቦትን መግለጽ ይችላሉ፡፡
ስለ ትብብርዎ እናመሰግናለን!
ለጠቅላላ መረጃ ብቻ
5. ጾታ ወንድ ሴት
6. ዕድሜ
8. ከ 20 በታች 3. ከ 30 እስከ 40 5. ከ 50 በላይ
9. ከ 20 እስከ 30 4. ከ 40 እስከ 50
10. የትምህርት ደረጃ

5. ከ 12 ኛ ክፍል በታች 4. ዲፕሎማ 7. ሌላ ይጥቀሱት ------------------------
6. 12 ኛ ክፍል ያጠናቀቀ 5. ዲግሪ
7. ሰርተፍኬት 6. ሁለተኛ ዲግሪና ከዚያ በላይ
8. የአገልግሎት ዘመን
71
5. ከ 1 ዓመት በታች 4. ከ 5 ዓመት በላይ እስከ 10 ዓመት
6. ከ 1 ዓመት በላይ እስከ 3 ዓመት 5. ከ 10 ዓመት በላይ
3. ከ 3 ዓመት በላይ እስከ 5 ዓመት
ሠራተኞች፤ የስራ መሪዎችና የሰራተኛ ማህበር ያላቸው አመለካከት

ማኔጅመንት ስለ ሰራተኛው
የኢ.ኤ.ኃ.ኮ. ማኔጅመንት ስለ ሰራተኛው ቀና የሆነ
አመለካከት አለው፡፡
ሰራተኛ ስለማኔጅመንትና ስለ ማህበር

የኢ.ኤ.ኃ.ኮ ሰራተኛ ለኢ.ኤ.ኃ.ኮ. ማኔጅመንት ቀና
የሆነ አመለካከት አለው፡፡
የኢ.ኤ.ኃ.ኮ. ማኔጅመንት ከሰራተኛው ማህበር ጋር

በሰራተኞች ጉዳይ ዙሪያ በቀናና በመተባበር
መንፈስ ይሰራል፡፡
መሰረታዊ የሰራተኞች ማህበር የሰራተኞቹን

መብትና ጥቅም ከማስጠበቅ አንጻር ያለበትን
ኃላፊነት በአግባቡ ይወጣል፡፡
ስላለው ግንኙነት በጠቅላላው

ከስራ መሪዎች ጋር በሚኖር ቀናና መልካም መንፈስ
ደስተኛ የሆነን ሰራተኛ መፍጠር ይቻላል፡፡
8. ሰራተኛው ለማኔጅመንት ቀና የሆነ አመለካከት የለውም ብለው ካሉ ምክንያቶቹ ምንድን ናቸው ብለው ያስባሉ?
_______________________________________________________________________________
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_________________________
72
9. ማኔጅመንት ለሰራተኛው ቀና የሆነ አመለካከት የለውም ብለው ካሉ ምክንያቶቹ ምንድን ናቸው ብለው ያስባሉ?
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_________________________
ግንኙነት

ሠራተኞች በስራ ላይ የራሳቸውን ሀሳብና
አስተያየት እንዲሰጡ ይበረታታሉ፡፡
ድርጅቱ የሚጓዝበትን አቅጣጫ፣ ተልዕኮውን፤

ራዕዩንና የረጅም ግዜ እቅዱን ሰራተኞች በግልጽ
እንዲያውቁት ይደረጋል፡፡
ሠራተኞች የሚሰሩት ስራና የሚያበረክቱት

አስተዋጽኦ እውቅና ያገኛል፡፡
በድርጅቱ ውስጥ ስለሚካሄደው ነገር ሠራተኛው

በቂና ወቅቱን የጠበቀ መረጃ እንዲደርሰው
ይደረጋል፡፡
ማህበሩ በሚያደርገው የስራ እንቅስቃሴ ላይ ከስራ

ክፍሎችም ሆነ ከአሰሪወች አስፈላጊውን ትብብር
ያገኛል፡፡
ሠራተኞች የሚሰሩትን ስራና ሌሎችም እነሱን

የሚመለከት ውሳኔወች ላይ በቂ ተሳትፎ
እንዲኖራቸው ይደረጋል፡፡
የስራ ባሕሪይ /አካባቢ/
1. በአጠቃላይ ሰራተኞች በድርጅቱ ምን ያክል ደስተኛ ናቸው?
73
በጣም ደስተኛ ደስተኛ በመጠኑ ደስተኛ ምንም አላውቅም በመጠኑ ደስተኛ አይደሉም ደስተኛ
አይደሉም በጣም ደስተኛ አይደሉም   
   
2. በስራዎት ላይ ከሚያውቋቸው ከሌሎች ድርጅቶች ጋር ሲያነጻጽሩት ይህንን ድርጅት እንዴት ይገልጹታል?
በጣም የሚስብ የሚስብ በመጠኑ የሚስብ ምንም አላውቅም በመጠኑ የማይስብ የማይስብ
ምንም የማይስብ   
   
3. በቅርበት የሚያውቁትን ሰው ወይንም ጓደኛዎት ወደዚህ ድርጅት እንዲገባ ይመክሩታል?
በጣም እመክረዋል እመክረዋል በመጠኑ እመክረዋል ምንም አላውቅም በመጠኑአልመክረውም

አልመክረውም በጣም አልመክረውም   
   
4. በአጠቃላይ ሰራተኞች በዚህ ድርጅት ደስተኛ ካልሆኑ ደስተኛ ሊያደርጓቸው ያልቻሉት ዋነኛ ምክንያቶች የትኞቹ ናቸው፡፡
_______________________________________________________________________________
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_______________________________________________________________________________
_______________________________________________________________________________
_________________________
ውሳኔ አሰጣጥ

እስማማ እስማማ እስማማ አላውቅ አልስማ አልስማ አልስማ
ለሁ ለሁ ለሁ ም ማም ማም ማም
ሰራተኞች በስራቸው ላይ መወሰን ያለባቸውን ነገር
ለመወሰን በቂ እድል ይሰጣቸዋል፡፡
ሠራተኞች ከበላይ አለቆቻቸው ጋር የመነጋገርና

የመወያየት በቂ እድል አላቸው፡፡
የስራ ሃላፊወች በውሳኔ አሰጣጣቸው ላይ ማህበሩን

ተሳታፊ ያደርጋሉ፡፡
በውሳኔወች ላይ በሚነሱ ሃሳቦችና በሚሰጡ
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አስተያየቶች ከማኔጅመንት የሚሰጠው ምላሽ
አስደሳች ነው፡፡
4. ሰራተኞች በውሳኔ ላይ ባላቸው ተሳትፎ ተጨማሪ ሊናገሩት የሚፈልጉት ጉዳይ ካለ፤

_______________________________________________________________________________
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ክፍያና ጥቅማ ጥቅም

እስማማ እስማማለ እስማማ አላውቅ አልስማ አልስማ አልስማማ
ለሁ ሁ ለሁ ም ማም ማም ም
ሠራተኞች ከሚሰሩት ስራና ሃላፊነት ጋር
የሚመጣጠኝ ክፍያ ይከፈላቸዋል፡፡
ከሌሎች ድርጅቶች አንጻር ይሄ ድርጅት የተሻለ ክፍያ

ይከፍላል፡፡
ድርጅቱ የተለያዩ ነባራዊ ሁኔታወችን ከግንዛቤ

በማስገባት የክፍያ ማስተካከያዎችን ያደርጋል፡፡
በአጠቃላይ ድርጅቱ በሚከፍለው ክፍያና ሌሎች

ጥቅማ ጥቅሞች ሰራተኛው ደስተኛ ነው፡፡
5. ሠራተኞች በአጠቃላይ በድርጅቱ የሚከፈላቸው ክፍያና የሚያገኙት ጥቅማ ጥቅም አያስደስታቸውም ብለው
ካሰቡ ምን ነገሮች መደረግ አለባቸው?
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እናመሰግናለን!!
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Samri Final Research

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Effects of Industrial Relations Practices on Employee's Satisfaction:-The Case of

Ethiopian Electric Power

Samrawit Masresha ----------------- June, 2020

Student Signature Date

Ashenafi abera (Ass.Pro) ---------------- June,2020

Advisor Signature Date

Effects of Industrial Relations Practices On Employee's Eatisfaction; The Case Of Ethiopian

Table 1 Addis Ababa Regional Office Data..................................................................................25

EPP: Ethiopian Electric power

HRD: Human Resource Development

1.1. Background of the Study

Measuring employee satisfaction is another important function of Industrial relations. Employee

Employee satisfaction is as important as customer satisfaction in influencing organizational

1.3. Research Questions

Therefore, the research addresses the following study question:

1.5. Significance of the Study

1.6. Scope of the Study

Industrial relation whether it is favorable or unfavorable, is applicable in all types of organization

1.7. Limitation of the Study

1.8. Organization of the Paper

2.1. Theoretical Literature Review

2.1.1 Definition of Industrial relation

2.1.2 Significance of Industrial Relations

1. It establishes industrial democracy: Industrial relations means settling employees’

6. It prompts enactment of sound labor legislation: Industrial relations necessitate passing of

2.1.3 Causes of Poor Industrial Relations

2.1.4 Objectives of Industrial Relations (Introduction to Industrial Relation, journal on

 by safeguarding the interest of the workers;

2.2 Employee Satisfaction

2.3 Decision Making Style and Employee Participation

The decision-making culture of an organization is reflected by the degree of formalization that it

2.3.3 Employee Participation

Key attributes of employee participation, such as open communication, expressing new

Participative management is a management style in which the subordinates share a

Additionally, informed employees are sometimes able to provide solutions to otherwise

2.5 Pay and Benefits

Performance (Carraher etal., 2006a,b; Gaiduk et al.,2009; Labatmediene et al., Sturman

2.6 Working Conditions

Working climate may be defined as employees’ perceptions of organizational policies, practices

2.6 Conceptual Frame Work

? Another working group satisfaction;

? Work environment; and

? Overall job satisfaction;

Figure 2. Justin Field’s Push and Pull Factor Satisfaction Model

In research performed by Sefton (1999), it was determined that there is relationship

Participation Jobs Satisfaction

Current V. Others Perception

Pay & Benefits

3.1. Research Method

3.2 Source of data

3.3 Participants of the study

Name of Regions Total Number of No of Districts No of Mgt6 No of Union

1. East Addis Ababa Region 5. Addis Ababa

Table 1 Addis Ababa Regional Office Data

Name of Total Number of Number of

Table 2 East and South Addis Ababa Regional Offices Data

3.4 Sample Techniques

Determining the size of a random sample

Table 3 Sample Size Determination

The sampling plan looks as follows.

Strongly Agree Disagree Strongly

Very Somewhat No Somewhat Very

Reliability Test result of the Instrument