Abstract:
This thesis investigates the effect of quality of work life on employees’ performance in private
and public-owned banks in Ethiopia. Quality of work life has the most dominant effect on
employee performance and productivity by sustaining the well-being of workers, which in
return maximizes efficiency. The main purpose of this study was to disclose the effect of
quality work life on employee performance in the banking industry. The participants of the
study were employees of public and private banks in Harar City. The study applied descriptive
statistics, Pearson's correlation analysis, and multiple linear regression analysis. The result
indicated that among quality of the work-life factors, training/development has a strong and
positive correlation with employee performance than another variable, while the working
environment has a positive and less strong correlation with employee performance,
compensation/reward has less correlation to the dependent variable but the work-life balance
was the least correlated factors with employee performance. Based on the findings quality of
work life to increase the level of its employee’s performance means the management should
focus in particular on improving the working environment, participation/communication, and
also enhance compensation/reward, training/development of the employee. The banking sector
should keep making proactive changes to the workplace via well-designed QWL programs for
employees. This will boost employee satisfaction and loyalty to the company, motivate staff to
do better work and clear the way for a better future for the enterprise and its stakeholders.
Effective strategies should also be used to maintain a motivated workforce while ensuring the
banking sector's financial viability and contribution.
