College of Bussines and Economics

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DETERMINANTS OF TAX COMPLIANCE OF MICRO AND SMALL BUSINESS ENTERPRISE (MSE) CATEGORY “C” TAXPAYERS, THE CASE OF SOUTHWEST SHOA ZONE, ETHIOPI
(WOLKITE UNIVERSITY, 2018-01) GETAHUN AYANSA BIRAE
This study sought to identify the determinant of tax compliance in Ethiopia, specifically focusing on Micro and Small business enterprises operating in South west shoa zone. The researcher outlined a detailed literature review and identified the variables for this research to be tax rate, tax knowledge, tax compliance cost; attitude of Micro and small enterprises and tax system. The research employed both descriptive and explanatory research design. A sample size of 325 were used from a population of 1726 micro and small business enterprises category “C” taxpayers in south west shoa zone. Data was collected using questionnaires and structured interview. Thecollected data was consequently analyzed using Statistical Package for Social Scientist softare (SPSS V.22) and the findings of the research presented using tables, various chart types ad graphs. The results showed that tax rate, tax knowledge, tax compliance cost, attitude of SME’s and tax system significant determine tax compliance of taxpayers. Tax rate, Tax system and compliance cost predominantly affect tax compliance. With regard to cost of tax compliance, the study revealed that Micro and Small businesses incur different costs such as salary of accountants, fees to tax consultants, cost of stationeries, etc. that contributed for their noncompliance and estimation of Micro and Small Enterprises tax is another problem related tax system. However, the taxpayers do feel and strongly agree that the taxation system in Ethiopia is in great need of improvement. The study then recommended that the current tax law should be amended to incorporate provisions that grant special tax incentives to MSEs in order to improve voluntary tax compliance by MSE taxpayers. The study also recommended that the ERCA should disseminate information on tax rate and tax system more frequently in order to improve the levels of tax knowhow for voluntary tax compliance.
FACTORS AFFECTING CUSTOMERS’ ADOPTION OF ELECTRONIC BANKING SERVICE (IN THE CASE OF COMMERCIAL BANK OF ETHIOPIA BUTAJIRA TOWNS
(WOLKITE UNIVERSITY, 2018-01) ADDISU ALEMAYHU
The main objective of the study was to examine the factors affecting customers’ adoption of e banking service in commercial bank of Ethiopia in Butajira towns.In order to achieve theresearch objectives, the researcher adopted mixed research approach. Specifically, the techniques in the study included questionnaire, structured interviews and secondary data. And then, regression and correlation analysis method was used to analyze and interpret the data.There are still many problems that need to be resolved yet in with the adoption of Electronic banking service by customers in Commercial bank of Ethiopia like low level of awareness about the Electronic banking services by customers, shortage of boxes mainly Automated teller machine box which results long linings, low level of promotion for the merits of E-banking services. In order to perfect the development of the adoption of electronic banking service by customers in commercial bank of Ethiopia Improvements in the level of security risk, national Information and communication technology infrastructure, and attitude of customers are required to ensure client confidence.
DETERMINANTS OF BUDGET CONTROL IN PUBLIC ORGANZATION A STUDY WITH REFERENCE TO SOUTHERN NATIONS, NATIONALITIES, AND PEOPLES’ REGIONAL STATE (SNNPRS)
(WOLKITE UNIVERSITY, 2018-04) Getachew Mamo, Getachew
The main purpose of this study was to investigate the determinants of budget control in the Southern Nations, Nationalities, and Peoples’ Regional State public organizations. This investigation was focus on five purposely selected public organization that are expected to represent all other bureaus. From the total population, (watson 2001) formula was used to determine sample of respondents. The management team, the internal and external auditors, budget experts, finance officers, tax and planning experts of the selected public organization were the sources for the required data to the study through questionnaires adminstered. The STATAS software was used to analyze the data using descriptive statistics, including mean, standard deviation and logistic regression used to analysis inferential output. For this study, eight independant variables were identified including budget planning process, management support, competent internal audit staff, organizational commitment, budget monitering and evaluation, information and communication, cost reduction and competency of human resource in budget department. The dependent variable is degree of budget control which was measured under Binary logistic regression. According to the logistic regression output, budget planning process, competent internal audit staff, organizational commitment and competency of human resource in budget department were contributed for the budget control in the public sector significantly and positively but budget monitoring and evaluation for the budget control was negatively and significantly related. The other variables organizational commitment were positively related with the budget control, but its contribution for the budget control were statistically insignificance at 5% level and management support also positively related with the budget control, but its contribution for the budget control were statistically insignificance at 5% level. All of these eight independent variables are making 50.93% of the contributions for budget control in the public organization. Then, the researcher recommend that public organizations should understand the contributions of these five variables collectively significant and their odd ratio were greater than one to infinity indicate the relationship between those predictors and the outcomes and add values for the budget control in the public sector offices.
EXCHANGE RATE, NET EXPORT AND ECONOMIC GROWTH IN EAST AFRICAN COUNTRIES: PANEL DATA ANALYSIS
(WOLKITE UNIVERSITY, 2018-06) AMSALU BICHINU AYALEW,
This paper examines an empirical investigation of exchange rate, net export and economic growth in east African countries. The study fully employing a strongly balanced panel data the period from 2000 to 2015/2016.The data set is collected from NBE, IMF and WB. The study employed Random effect model as confirmed by Hausman test.The study found that net export; real exchange rate, trade openness and expenditure of government are positive and significantly explained economic growth.The empirical investigation of in this study indicates that both exchange rate and net export are equally important and the advance issue of determining economic growth.The estimation result suggested that, a depreciation of exchange rate and the improvement of net export were improves economic growth and all types of import and exports, a result that is statistically significant and consistent with the standard economic theory. The policy recommendation of these countries should take emphasis and give more attention to improve more advancements of manufacturing product rather to devaluate exchange rate
INTERNATIONAL REMITTANCE AND ECONOMIC GROWTH IN ETHIOPIA: AN AUTOREGRESSIVE DISTRIBUTED LAG APPROACH
(WOLKITE UNIVERSITY, 2018-06) ABDURAHMAN AGIRO
Having the general objective of investigating the relationship between international remittances and economic growth in Ethiopia, this study used an auto regressive distributed lag (ARDL) model or Bound Testing approach to co-integration. The data used is from Ethiopian economic association, national bank of Ethiopia and World Bank Development Indicators which spans from 1980 to 2016. The outcome of the study revealed that, both the long run and short run growth impact of international remittance during the study period is positive and significant. Apart from this, other growth determinant factors, such as real gross fixed capital formation, human capita and consumer price index are found to significantly and positively affecting growth in Ethiopia. Trade openness has found Negative and significantly impact economic growth. Moreover, the Granger Causality test has confirmed that there is a unidirectional causality which runs from remittance to output. The most important policy implication that comes out of this study is that the government as well as other concerned stakeholders should work on easing the remittance sending process and cost, so as to better extract the economic benefit of international remittance.
DETERMINANTSOFAGRICULTURALPRODUCTIVITYAND RURALHOUSEHOLDINCOMEINETHIOPIA
(WOLKITE UNIVERSITY, 2018-06) BIRHAN GIRMA
Population Growth and Economic Development in Ethiopia
(Wolkite University, 2018-06) Kasim Nejmu
The debate on the relationship between population growth and economic growth has been undergoing over a long period of time and yet it is inconceivable developing countries in generally and Ethiopia particularly. Hence, this study aimed to analyze the impact of population growth on economic development of Ethiopia using time series data from 1974/75 to 2015/16 by employing Johansen co-integration test, Granger causality test, VAR and VECM. The study found that population growth had a significant negative impact both in the short run and in the long run on economic development. While government education expenditure as percentage ofRGDP is positive and statistically significant relationship with economic development. The results of causality test shows that there exists unidirectional relationship running from economic development to population growth in long run. Lastly the study recommends that the government as well as the concerned body should exert their effort to balance the population growth and economic development
ASSESSMENT OF INTEREST FREE BANKING SERVICE (CASE OF COMMERCIAL BANK OF ETHIOPIA WEST ADDIS ABABA DISTRICT)
(WOLKITE UNIVERSITY, 2018-06) BERHANU BEYENE NURGI
The main objective of this Study is to assess interest free banking service in commercial bank of Ethiopia- West Addis Ababa District. The study has employed descriptive research design and has used both primary and secondary data which have been collected through structured questionnaire and semi structured interview. A total of 398 sample respondents were taken through judgment & Convenience sampling for Employees & Customers respectively. The data was analyzed using descriptive statistics of mean, frequency, percentage, and standard deviation using Statistical Package for Social Science version 16 software. Based on the analysis of the study, the result shows that there is performance lagging of Interest free Banking financing products, lack of well trained & experienced employees with Interest free Banking in the branches, lack of awareness of customer about Interest free Banking products, inadequate marketing and promotion, unavailability of Interest free Banking financing products in all ofCommercial Bank of Ethiopia branches, and Interest free Banking as ameans of resource mobilization Strategy in Commercial Bank of Ethiopia. The study concluded that, Commercial Bank of Ethiopia has the capacity to provide the other interest free banking products & Service to its customers provided that there is commitment and support from all stakeholders of the bank including National Bank of Ethiopia. Based on the results of the findings, the study recommended that Interest free Banking should be given the necessary attention and support from all stakeholders, the bank has to be ready and committed in all aspect to deliver Interest free Banking products, aggressive promotion and marketing campaign about Interest free Banking products should be made, The Bank has to increase the accessibility of Interest free Banking products through increasing Interest Free Banking Window at each service providing Branch.
ASSESSMENT OF CUSTOMER REL ATIONSHIP MANAGEMENT AND CUSTOMER SATISFACTION PRACTICE CASE OF COMMERCIAL BANK OF ETHIOPIA
(WOLKITE UNIVERSITY, 2018-06) GEBEYEHU MELESSE
Customer Relationship Management (CRM) is the strongest and most efficient approach inmaintaining and creating close relationships with customers in the service sectors including banks.As world has become a global village, competition become tough and stiff between organizations and formed a climate of constant change, achieving and holding a customer has become vital for the success of any organization and Ethiopia is no exception.To examine and measure customer relationship management and its assessment on customer satisfaction practice in Commercial Bank of Ethiopia west Addis Ababa districts was the aim of this study.In this study both qualitative and quantitative approaches were employed. The study used primary and secondary sources to gather data. Primary data were collected through close ended questionnaire and semi-structured interview. The study has been conducted on a sample group of both customers and employees a total of 392(three hundred ninety two) respondents in three branches of CBE West Addis Ababa district located in Guraghe zone. To analyze the collected data correlation, simple linear regression was used. The findings show that customer relationship management dimensions affects customer satisfaction.
CHALLENGES AND PROSPECTS ON INTEREST FREE BANKING SERVICES WITH PARTICULAR REFERENCE TO AWASH BANK SOUTH DISTRICT
(WOLKITE UNIVERSITY, 2018-06) DANIL GOSSAYE ANDETA
The recent development of starting Islamic banking service in one window in connection with conventional banking service made to examine the challenges and prospects of Islamic banking service for resource mobilization in Awash banks. The study was conducted based on data collected from staffs of through questionnaires. To achieve the objectives of the study respondents were drawn from south district. Data was collected through questionnaire by using stratified sampling from a sample of 230 and 223 were properly filled and returned. Besides, Semi-structured interview were used to guide for the qualitative data collection tools. The data collected from the questionnaire were analyzed using SPSS version 20 statistical tools such as percentages and mean followed by interpretation. The study focuses that awareness, culture and religion influencer, legal framework, societal belief, resource requirements as some of the challenges while economic growth, attraction of investors, and fostering investment are the likely prospects of the banks. The study concludes that Islamic banking service would bring additional capacity in the economy in connection with additional resource for banks, investment opportunity, reaching unbanked customers and employment opportunities in the country through effective mobilization and allocation of capital. Based on the above conclusions it is recommended that banks need to create awareness for public acceptance and training of staffs, employ good marketing techniques, governing body need to establish clear set of legal framework, and compliance with sharia issues should be adhered.
CHALLENGES AND PROSPECTS OF E- BANKING SERVICE IN ETHIOPIA: THE CASE OF SELECTED COMMERCIAL BANKS AT WOLKITE TOWN.
(WOLKITE UNIVERSITY, 2018-06) DIRES ENDALE
Despite the growth of e-banking adoption worldwide, Ethiopian banks continue to conduct most of their banking transactions using traditional methods. The general objective of this study is to assess the challenges and prospects towards the implementation of E-banking technology in Ethiopian banking industry. Descriptive research design was employed to conduct this study and Both primary and secondary data were used. The collected data was analyzed by using descriptive analysis such as tables, mean and mode. The study was conducted based on the data gathered from five purposive sampled commercial banks at wolkite town from those sampled commercial banks the total of 200 clerical staff. Questionnaire were distributed to 170 clerical staff and used the research purpose. A mixed research approach was employed. In order to analyze the research results, SPSS V. 16.0 tool software and 5 Likert Scale used to gather respondents answer. The result of the study indicated that, the major challenges Ethiopian banking industry faces in the adoption and development of E-banking technology are, high cost of implementation of E-banking, lack of customer awareness, limitation in network infrastructure and internet related support services, security risk and lack of trust. The study also indicated existing prospects for E-banking such, as improvement in the banking habit of the society, late adoption of E-banking, commitment of the government to facilitate the expansion of ICT infrastructure and commitment of the government to strengthen the banking industry. And The xii study recommended banks to facilitate proper and continuous training for their employees, increasing security for E-banking products, create deep awareness about E-banking technology to the community while the government should support banking sector by facilitating sufficient ICT infrastructure development and issue clear and workable legal frameworks to ease the adoption and growth of E-banking Technology in Ethiopia
THE ROLE OF COOPERATIVES IN ENHANCING RURAL ECONOMIC DEVELOPMENT: THE CASE OF SODO WEREDA, GURAGE ZONE
(WOLKITE UNIVERSITY, 2018-06) ADDISU ASNAKEW
The study was conducted in Southern Nations and nationalities 3HRSOH¶V 5HJLRQ,Gurage zone Sodo Wereda with the general objectives of to assess the role of cooperatives to enhance the economic development of the society. The researcher was used descriptive research design method to describe the role of cooperatives in the society now days. The data were collected from 391 cooperative member respondents in Sodo Wereda cooperative societies which are selected randomly. The major source of data for this study was the primary data which was collected from questionnaires and interview. The researcher was analysis and interpreted the data in the form oftable and percentage. The finding stated that there are so many problems that hinder the role of cooperatives in enhancing economic development in the societies such as: passive participation of members, lack of trained man power, shortage of finance,and mistrust among members in the cooperatives. To reduce such problems and limitations increase members participation to create awareness among members, givetraining to improve their skill, selling additional issued share and minimize mistrustamong members and maintain piece
ASSESEMNT OF OCCUPATIONAL SAFETY AND HEALTH PRACTICES; THE CASE OF MANUFACTURING COMPANIES AT GURAGE ZONE
(WOLKITE UNIVERSITY, 2018-06) ABDERAZAKE WOLELA
Organizations have both legal and moral obligations to provide healthy and safe working environments as well as ensuring the total well-being of their employees.. All organizations even those with limited resources can achieve an important basic requirement for health and safety within the workplace using minimal resources and maximal management and staff commitment. The study adopted Descriptive Research Design inform of Survey where data was collected from population by use of Primary source for purposes of assessing occupational health and safety practices at manufacturing companies of Guragh Zone. A structured questionnaire was used to collect data. A Five point Likert scale was used to determine the degree to which various OSH practices are being implemented at the companies. The researcher analyzed and report the information in form of tables, bar graphs, percentages, continuous prose and through use of Statistical Package for Social Sciences (SPSS). The findings of the study established that some occupational safety and health practices were found to have been adopted by the organization. However, safety and health inspection have not been implemented, have no practice of designing equipment and work tasks to prevent injuries(ergonomics practices), the companies have not been adopted an emergency action plan which specifies procedures for handling sudden and unexpected situations and the majority of employee in the companies are work under stress. The study recommends that manufacturing companies maintain effective health and safety practices, and be committed to its success
MENT OF HUMAN RESOURCE MANAGEMENT PRACTICES AND EMPLOYEES` JOB SATISFACTION:
(WOLKITE UNIVERSITY, 2018-06) Aliyu Lahimu
Human resources are the greatest asset that an organization can possess and they are pivotal to organizational effectiveness. Satisfied employees’ contribute greatly to the attainment of organizational objective. The main objective of this research is to examine the relationships of human resource management practices (recruitment and selection, performance appraisal, training and development and compensation) and employees’ job satisfaction in EIC. The scope of study is focused on the full time employees and managers of the corporation found in Addis Ababa. In this study a total of 258questionnaires were distributed to the respondents of EIC employees using stratified sampling techniques. Out of these, 224 (86.82%) usable questionnaires were collected. In order to analyze the data, Statistical Package for Social Science (SPSS) computer software program version 16 was used for data analysis. Despite the correlation coefficient of recruitment and selection is weaker compared with other variables performance appraisal, compensation, training and development found to have moderate and positive correlation with employees’ job satisfaction. Each HRM practices in the corporation should be a source for employees’ satisfaction and then employees will be loyal and willing to stay in the corporation because, employees’ satisfaction on the job will reduce absenteeism and turn over intentions in the case company
ASSESSMENT OF CAREER DEVELOPMENT AND ACADEMIC STAFF MOTIVATION: THE CASE OF SELECTED TVET COLLEGES IN GURAGE ZONE
(WOLKITE UNIVERSITY, 2018-06) TARIKU KASSA SIBATO
The researcher was initiated to conduct the study on the assessment of career development andacademic staff motivation on the case of selected public TVET Colleges in Gurage zone (Wolkite, Butajira, Agena and Arekit) for the assumption to represent all TVET colleges in the zone and the region. These colleges were also selected purposefully based on their establishment years/age. To realize the study successfully, a descriptive survey design was employed in the study and the information was gathered through self-administered questionnaire from a sample of 192 respondents. Respondents were selected by simple random sampling technique. The data collected from the questionnaire were analyzed using software called Statistical Package for Social Science (SPSS), by using statistical tools such as: frequency/percentage, mean, standard deviation, and other appropriate techniques were applied to assess the magnitude and direction of each independent variable. Assessing the levels of career development practice; staffs motivation in general; impact of career development on academic staff’s motivation; problems of career development and level of staff motivation with regard to career development practice. The study revealed that, the overall mean score for the career planning practice and career advancement was 2.7629 and 2.776 respectively; and this implies that, majority of trainers in TVET colleges were highly dissatisfied with both activities. At the same time, level of staff’s motivation has grand mean score of 3.126 which implies that, the majorities of respondent moderately agreed on their motivation level in their present jobs. Many important strategies also suggested for raising academic staff’s motivation; these are: appreciate and acknowledge best performers; treat all employees fairly and provide extra financial incentives to trainers for extra work done are the dominant one. Accordingly, the study provides strategies that can be used to minimize constraints to career advancement after the reform; these are: there should be merit based assignment of deans and other administrative staffs, review and set clear and transparent policies on promotion, training and advancement and avoid unfair/unequal treatment of employees in the college, appreciate and acknowledge the best performers; make academic activities free from politics; develop different types of reward programs; and make trainers career path and growth criteria easily achievable.
THE EFFECT OF WORKFORCE DIVERSITY ON EMPLOYEE PERFORMANCE
(WOLKITE UNIVERSITY, 2018-06) ABDILJELIL ASSEFA OUMER
The value of diversity at the workplace is becoming a key business consideration of most organizations. Close and continuous attention to the issues of workforce diversity is important because it can be a major source of competitive advantage. However there were limited research works was conducted on the topic area especially in Ethiopian context and in Ethio telecom. Therefore, the purpose and objective of this study was to investigate the effect of workforce diversity i.e. age, gender, ethnicity, education background, work experience and marital status on employee performance in case of Ethio telecom south west Addis Ababa zone. The study reviews theoretical and empirical literatures and develop conceptual framework. The study used cluster sampling technique with probability proportional to the cluster size including purposive sampling. Primary data for the study was collected from 74 (seventy four) respondents through structured questionnaire and analyzed it through descriptive and explanatory research design using software package for social science (SPSS). Statistical techniques such as mean, standard deviation, correlation, regression and analysis of variance were employed in data analysis and the finding shows that there is a positive relationship between all independent variables and dependent variable. Whereas, only ethnicity has significant to explain employee performance by 28.7% while others are insignificant to predict employee performance. Thus, Ethion telecom should understand how to manage the diverse workforce in ethnicity where it can increase the advantage of such diversity and eliminate or reduce the disadvantage. Ethic telecom could give a chance to employees to learn more skills through course and training so as to improve their performance.
ASSESSMENT OF FACTORS CONTRIBUTING FOR LOAN NON-REPAYMENT THE CASE OF OMFI GURAGHE ZONE BRANCH
(WOLKITE UNIVERSITY, 2018-06) FELEKE LEMMA
This study was conducted with the objective of “assessing factors contributing for loan non-repayment in Omo Micro Finance Institution Guraghe zone branch “ using both primary and secondary data . Descriptive research design was used to carry out the study. Primary data were collected using structured questionnaires with the help of trained data collectors, and secondary data were also collected from Omo Micro Finance Institution Guraghe zone branch office, and sub-branch offices. Out of 383 samples data were collected from 370 defaulters (96.7%). Statistical Package for Social Sciences (SPSS) software was employed to analyze data. The results of the analysis showed that age, marital status, family members, education status, type of business engaged/residence, type of loan, type of borrowing, amount of loan released, delayed loan release, inconvenient repayment period , and level of income ,training and monitoring were the major contributing factors for non-repayment of loan to Omo Micro finance Institution Guraghe Zone branch office. The remaining independent variables used in the research had a contribution for the non-repayment of the loan but were not significant contributing factors .Revision of policy issues, and strengthening the institutional capacity was recommended
ASSESSMENT OF TAX AUDIT PRACTICE AND ITS EFFECTIVENESS IN ENHANCING TAX REVENUE THE CASE OF LARGE TAX PAYERS BRANCH OFFICE OF ETHIOPIAN REVENUE AND CUSTOMS ATHORITY
(2018-06) MELAKU KINFE
The purpose of this study is to assess the tax audit practice and its effectiveness in enhancing tax revenue of large tax payers’ office. The study examines tax audit practice and its effectiveness with dimensions of experience and capable audit staff, tax payer’s record keeping, tax payer’s office information system, audit case selection and examination method, the type of audit used and frequency of tax audit influence audit effectiveness in LTO. In light of this objective the study adopted mixed research method of research approaches. Specifically, the study used survey of questionnaire analysis offices’ on tax auditors and team leader, and interview analysis on team leaders and process owners. Then tax auditors and team leaders were selected based on Census method, because, the target population studied is small. In large tax payer’s office there were 80 tax auditors supervised and lead by 10 team leaders managed by two process owners. Then the researcher distributed those questionnaires to the 90 tax auditors and team leaders, only 80 of them were returned. Consequently, Data was then analyzed on quantitative basis using inferential statistics (Anova and linear regression analysis) and descriptive statistics (frequency, percent, mean and standard deviation). Qualitatively interview was presented to process owners. The results of the study enable us to conclude that tax audit type, experience and capability of audit staff and audit case selection and examination method as a linear combination significantly influence tax audit effectiveness in the organization studied. However, tax payers record keeping, tax payers information system and frequency of tax audit were not significantly to undermine tax audit effectiveness. In the end, the study forwards the possible measures to be taken by the Ethiopian Revenue and Customs Authority to mitigate problems in tax audit operation. The authority should conduct further study to alleviate the problems which are related to tax audit.
RISK MANAGEMET PRACTICE IN COMMERCIAL BANK OF ETHIOPIA WEST ADDIS ABABA DISTRICT
(2018-07-01) SIMEMU LEMA DEWECHE
The aim of this paper is analyzing the effective risk management practice of commercial bank of Ethiopia. In order to assess the risk management practice, the researcher develops survey questionnaire based on the conceptual models of the risk management practice found in the literature. Questioners distributed to 119 risk expert from a total population of 169 staffs of commercial bank of Ethiopia underwest Addis Ababa district by using stratified random sampling technique. Quantitative data analysis was conducted to analyze the collected data. Both inferential and descriptive statics employed by using SPSS (Ver. 20) statistical package. In the data analysis, one-sample t-test, correlation and regression analysis were employed. Based on the finding it is concluded that all the four independent variables (understanding risk and its management, risk identification, risk monitoring, and risk analysis and assessment) have significant and direct impact on the risk management practice of the bank; with overall impact of 55.8%. The researcher recommended the bank to develop an encyclopedia in order to create common risk definitions among the staffs. The respondent suspect that technology risk, liquidity risk and foreign exchange risk will be the main risk for the bank in the future. Accordingly the researcher recommends the bank to improve its status with respect to risk management; and also examine other factors that would affect its risk management practice.
ASSESSING THE IMPACT OF CORE BANKING SYSTEM ON CUSTOMER SATISFACTION IN SOME SELECTED COMMERCIAL BANKS WOLKITE TOWN
(Wolkite University, 2018-09) YONAS ENDALE GELAN
Financial institutions across the globe are re-examining how they meet their customer satisfaction and developing plan needed to align them strategically to remain competitive & Profitable in the future. Core banking service has networking of branches which enables customers to operate and manage their accounts and avail themselves of banking services from any branches of banks irrespective of the branch with which they maintains their accounts. Customer Satisfaction leads organization to gain loyalty and achieve the desired objectives. Formerly commercial banks use manual & Obsolete technologies. This becomes cause for customer dissatisfaction on day to day financial institution service quality. Therefore this research focus on recognizing the impact of Core banking system on Customer Satisfaction at some selected commercial banks which is commercial bank of Ethiopia, Nib international bank, Abyssinia bank & Debub global bank. The main objective of this study is to assess the impact of Core banking on Customer satisfaction in Commercial banks. As ample of 398(three hundred ninety eight) customers were selected using probability sampling technique and among these 360(three hundred sixty) was collected. Questionnaire & interview was used to collect primary data for the study and data was analyzed using descriptive statistics and inferential statistics. The result of this study shows that, there was significant relationship between core banking & customer satisfaction and also there was significant relationship between service quality & customer satisfaction. From the service quality dimensions; reliability, empathy & tangibles are positive and significant impact on customer satisfaction & the remaining assurance, responsiveness are positive but insignificant impact on customer satisfaction. Thus it is suggested that application of Core banking technologies and service quality on Commercial banks have many contributions regarding Customer satisfaction.