Impact of Management Contracting on Employees’ Commitment (A Case Study In Ethiotelecom)

In this study the researcher investigates the impact of the management contracting and transformation of the ETC to ET on the commitment of the employees, the new managerial practices which influence the level of commitment of the employees negatively or positively. The study used different statistical sampling stages which include convenient sampling, judgmental sampling, stratified sampling and simple random sampling step by step, which enabled the researcher to withdraw 350 samples from the target population with the help of scientific sample determination formula. From the distributed, 343 questions were fully filled and taken as a relevant questionnaire for analysis. In analyzing the findings the researcher used descriptive statistics and multiple regressions analysis. The researcher found that the transformation of the management of ETC to ET brought a high positive effect on the affective and normative side of the employees’ commitment; and a moderate effect on the continuance commitment of the employees; which averagely found a high effect. The managerial practices which positively and significantly affect the achieved commitment include the compensation, career development, the team spirit and work cooperation, and work environment and conditions. However the relation with management and the job security are found to have negative effect. The study recommends that the organization should have to give a due attention to link the employees’ affective and normative commitment with the continuance commitment to reap the full benefit of the transformation. In addition it should have to revise the managerial practices with the problematic variables which include mainly relation with management and the job security. Keywords: Employees’ Commitment, Factors affecting commitment, Ethiopian Telecommunications Corporation, Ethio-Telecom DOI: 10.7176/EJBM/12-1-01 Publication date: January 31st 202