EFFECT OF ENTERPRISE RESOURCE PLANNING ON EMPLOYEES’JOB PERFORMANCE: THE CASE OF COMMERCIAL BANK OF ETHIOPIA, DIRE DAWA DISTRICT, ETHIOPIA

Abstract

This study was aimed at analyzing the effect of Enterprise Resource Planning (ERP) on employee job performance in Commercial Bank of Ethiopia (CBE) dire dawa district. From the ERP vendors the one which is implemented and currently under use by CBE is Oracle ERP system. It is an ERP system which allows managers and employees to access and manage information and transaction in a paperless environment. Both primary and secondary data were used for the study. Primary data were directly collected from 321 employee of CBE under dire dawa district. The data was collected from the respondent by stratified and simple random sampling. The variable used to measure job performance of the respondents were gender, age, educational back ground, work experience, job title, training, communication, ERP system quality and management support. The result of econometric analysis of ordered logistic regression shows that six variables (age of the respondent, job title, work experience training, ERP system quality and communication) positively and significantly affected employees job performance. ERP system is significant and one more unit increase in the usage of the system has reduces the paper consumption/work by 38.9 % for the work done through it. Therefore, the recommendation drawn from the findings aimed at in order to overcome the biasness in performance rating by the ERP system, a uniform and measurable criteria should be prepared by the CBE Company and this system should be widely used by all concerned staff member through further training.