Chapter One

1. Introduction
This chapter contains background of the research, statements of the problem, basic research
question, major and specific objectives of the research and methodology to be employed. In
addition to this, it also explains significance of the research and organization of the paper..

1.1. Background of the Study

The objectives of higher education institutions are producing graduates with different
disciplines and compile them with the skills and knowledge needed to employee in the current
competitive labor market and satisfy the demand of employers (Tazebachew, 2018). Because
investing people in education especially; in tertiary education institutions play an important role
in economic and social development of any country by supporting the economic objectives as
well as diffusing and applying new knowledge and developing a qualified indigenous labor force
(Ariel, 2017). Education is important for not only individuals but also, for society as a whole,
through economic outcomes and a wide range of social outcomes like improved health, reduced
crime and higher well being.
Employers would not be satisfied by university graduates especially the skills and knowledge’s
that are possessed from universities is not match with what the organizations want (Tazebachew,
2018). Here of higher education institution Leaders and employers must work together to bridge
the gaps between current educational practices and the needs of the working world (Dorothy,
2016).However now days all concerning body is directed towards the improvement quality of
education but Still the effort to enhance the wish is not sufficient either in the government side or
the public sectors.
The modern health care professional workers was introduced around 1866 by Swedish
missionaries who came to Eritrea (one of the previous countryside of Ethiopia) and started to
deliver medical care for very limited members of the society (Yonas, et.al 2016).
In 1939, Emperor Haile Selassie’s daughter Princess Tsehai became the first national Ethiopian
nurse trained in child health in the London school of nursing. Similarly, Sister Meheret Paulos
was the second nurse, who graduated from Jerusalem and worked in Egyptian British and a
number of hospitals in Ethiopia (Abdurahman, 2011).

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Similarly modern education system in Ethiopian was goes back to Imperialist Minilk II since
1908 ‘’It was a u-turn in history of Ethiopian education in all aspects to make it modern like
western type’’ (Eyasu, 2017). After 1941 education was expand through the country, but there
were no educated teachers. So, it was opened Minilik II teacher training school in 1944. It is the
first Ethiopian primary school. But secondary school teacher education was started in the faculty
of Arts of University College of Addis Ababa in since 1950.
According to the 2010 Education Statistic Annual Abstract of the Ministry of Education
(MOE), there were about 246 Secondary and preparatory public and private Schools, 21
Technical and Vocational Education and Training centers (TVETs) and 38 Colleges functioning
in Addis Ababa. And also according to the 2010 health Statistic Annual Abstract of Addis Ababa
health Bureau there were about 67 public and private hospitals in Addis Ababa. Additionally
there were about 120 grade one general contractors (higher grade contracting firms) and 15
public contractor corporations in Addis Ababa.
. Thus it is scientific to believe that those sectors should have qualified engineering, teacher and
health graduates to fill the gap what the industry requires and to move forward it in a better
position by satisfying their customers.
Hence, the purpose of this research will be assessing employers’ satisfaction towards university
graduate the case of teaching, health and engineering profession in Addis Ababa. There are
factors responsible to the decline of quality education in Ethiopia and one can use this part as a
research thematic area.

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 1.2. Statement of the Problem

A number of studies and statistical indicators show that the mismatch or misunderstanding
present between the needs of hiring industries and the qualifications of the university graduates
prepared by educational institutions. And also the demands of employers search ones memory on
the employability skills have become communal subheading interest in the labor market
(Tazebachew, 2018). A high skilled and adaptable workforce would enable employers to respond
to the industry changes. But employers face a problem with majority of university graduates lack
essential core skills and knowledge wants to efficient to the work environment and needed for
their future goals and objectives to compete in the global economy (Hesketh 2000).
However on the other hand, university graduates have few chances to develop and practice the
necessary knowledge and skills which required by employers due to traditional teaching and
learning process in the university system (Athula, 2011).
The factor responsible for increasing of unemployment in Ethiopia especially in the formal
private sector the current educational system and practices in Ethiopia are more exposed to
theory concept rather than practical learning (Jerusalem, 2016). Due to this reason university
graduates especially in health sector, problem of maternal health due to shortages of skilled
midwives, at health centre levels (Ministry of Health 2011 annual report). So health, education
and engineering professions have lack Technical and non Technical skills. So to know the
employer level of satisfaction understanding the causing factors is very important.
There is only one study about satisfaction of employers by university graduate are few studies
about employer level of satisfaction in Jigjiga City (Tazebachew, 2018); Although those studies
tried to identify the employer level of satisfaction, they used only statistical tools to show the
difference between private banks and commercial bank of Ethiopia manager’s satisfaction of
business graduate Knowledge and understanding General qualities, are the variables and the
findings are bank managers are more satisfied by their employees with Knowledge and
understanding skills and also less satisfied with graduate positive attitude towards work and
graduates self-discipline working in their banks.
This study is different from previous studies on the following ground. First, it uses econometrics
analysis to identify determinant factors of employer satisfaction. Second, I study in both
engineering, education and health professions in the case of Addis Ababa city administration.

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Third, I use different variables like technical and non technical skills employees’ quality of work,
employee’s personality, etc.
The reality of the present labor market annoys the importance stressed by both practitioners and
educators of identifying the various attributes university graduates must have to meet the needs
of employers in the workforce of the 21stcentury (Eisner,2010).
In now days even most constriction companies, education and health sectors are hiring new
graduates, those managers are pinpointing problems and weaknesses observed from university
graduates in their banking operation. Therefore assessing employer’s satisfaction of university
graduates the case of teaching, health and engineering profession in Addis Ababa is important.

1.3. The major Objective of the study

The general objective of the study is to assess the satisfaction level of employer’s by university
graduates the case of teaching, health and engineering professions in Addis Ababa
Specific objectives;
 to seek employers views on the importance of the knowledge & understanding, qualities,
technical and non technical skills generally expected of the graduates;
 To assess the perception of employers towards recruiting university graduates
 Assess the level of satisfaction of the employers on the technical, non technical skills and
qualities of new graduates as employee.
 To find out the relationship between the level of satisfaction of employers and the quality of
graduates.

1.4. Basic research questions

Based on the problem statement clarified above the following research question was designed.
 Do really teaching, health and engineering managers are satisfied on higher education
graduate employees?
 What is the level of employers’ satisfaction by university graduates of HEI?
 What are the perception of employers when they recruiting new graduates?
 What are the main qualification criteria’s new graduates fitful when they graduate from HEI
in order to satisfy their employers and will be competent in their work?

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 1.5. Research Hypothesis

The following are hypothesis which are developed for the purpose of this study
H1. Technical skill of employees has significant effect on employer satisfaction
H2. Non technical skill of employees has significant effect on employer satisfaction.
H3. Educational qualification of employees has significant effect on employer satisfaction.
H4. Personality of employees has significant effect on employer satisfaction.

1.6. Significance of the Study

The first and the most higher education institutions, stakeholders are Employers. So there should
have their expectations of graduates incorporated into the teaching and peter of graduates to enter
the skilled labor force (Verville, 1995).
In this study as a higher education institution in Ethiopia will know the knowledge and skill gaps
of new graduates and will enable the university to correct, rectify, reform and change its
curriculum, lecture style and other technical gaps. Finally the study will be used as a reference
material for other researchers.

1.7. Scope of the Study

Satisfaction is very broad concepts, yet for this study purpose these concepts are studied from
employers’ point of view on the service and quality of higher education institutions. This study is
geographically restricted to Addis Ababa by focusing engineering, education and health
professions of managers’ level of satisfaction towards university graduates.

1.8. Limitation of the Study

In the first place due to resource constraint, the researcher will delimit the study in Addis Ababa
city Administration. Second the study will include only grade one general contractor and there
will not include sub contractors in the engineering profession and there will not also include the
primary private health centers. Thirdly lack of adequate and recent research works in similar
areas in the Addis Ababa in the same research topic will a challenge.

1.9. Organization of the study

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The rest of the paper will be organized as follow: The second chapter presents literature review;
this reviews the theoretical and empirical literature followed by a third chapter that is dedicated
for research methodology; this part describes the methodology and instruments that the researcher
will use during data collection, processing and analysis.

1.10. Definition of key terms

1.10.1. Definition of employer

According to Wikipedia an employer is a person or institution that hires employees. It offers

wages or a salary to the workers in exchange for the worker's work or labor. Employers include
everything from individuals hiring to governments and businesses which may hire many
thousands of employees. In most western societies governments are the largest single employers,
but most of the work force is employed in small and medium businesses in the private sector.

1.10.2. Definition of satisfaction

The word satisfaction is derived from the Latin word satis (meaning enough) and the Latin
ending -faction (from the Latin facere - to do/ make) (Clinton, and Wellington, 2013).
According to Merriam-Webster’s Online Dictionary Satisfaction is compliance of a need and
want. Satisfaction is a person feelings of pleasure or disappointment resulting from comparing a
perceive performance in relation to his or her expectations. And it’s also defined as Satisfaction
is the result of the expected or desired and what is actually experienced across a number of
disciplines (Amanuddin, et.al, 2015).
Satisfaction is a thought that has presence in many fields of study that measures office evaluation
by employee satisfaction, hospital evaluation by patient satisfaction, and site evaluation by
visitor satisfaction and others (Clinton et.al, 2018).

1.10.3. Definition of engineering

According to Tecle and Mahelet (2009), Engineering is the process of utilizing knowledge and
principles to design, build, and analyze objects. it is the profession of applying scientific
principles to the design, construction, and maintenance of engines, cars, machines.
Engineering is the creative application of science, mathematical methods, and empirical evidence
to the innovation, design, construction, operation and maintenance of structures, machines,

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materials, devices, systems, processes, and organizations for the benefit of humankind. The
discipline of engineering encompasses a broad range of more specialized fields of engineering,
each with a more specific emphasis on particular areas of applied mathematics, applied science,
and types of application. See glossary of engineering (Anyanwu, 2013).

1.10.4. Definition of education

According to cathryn (2017), Education is the improvement of the abilities of the intelligence it
is focuses on more abstract and open ended concepts.
Education is process of imparting or acquiring general knowledge, developing the powers of
reasoning and judgment, and generally of preparing oneself or others intellectually for mature
life. Education is the act or process of imparting or acquiring particular knowledge or skills, as
for a profession.

1.10.5. Definition of health

According to Meseret and Yihenew (2004), health is defined as “a state of complete physical,
mental, and social well being and not the mere absence of disease or infirmity”.

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 CHAPTER TWO

2. Literature Review

2.1. Theoretical Literature Review

2.1.1. Labor market and the characteristics of higher education system

The labor markets have a multi variety effect for the quality of education that has to be providing
by different educational sectors and it enable colleges, universities to revise their curriculum,
course syllabus, mode of delivery etc in national level (Tazebachew, 2018).
According to Stephen and Sandra (2007), the tertiary education systems of many countries have
growing rapidly, changing with the experience of different countries and with expansions
occurring at different times. This had been essential and profound impacts on labor markets and
in the way in which employers are more interesting to employee the highly educated labor.
new graduates overall the world to satisfy the demands of employers wants that the eligible
graduates to fit the industries what want (Tazebachew, 2018).
Higher educated workers are hot property in the labor market, receive an education premium and
enjoy less unemployment than lower educated workers. Because of Better educated workers
perform better in the labor market, in terms of earnings but also in terms of (un)employment
rates We go beyond this well established evidence and raise the question of other potential
benefits of education (Pavlina, 2013).
Currently the supply of labor market is structured around profiles that provide the higher
education institution to scientific–technical knowledge to develop a series of competencies and
abilities that will ensure lifelong learning. In this respect, it has also been demonstrated that the
speed at which graduates learn to do their jobs depends on the level and type of competencies
they have acquired in their formal education. For this reason, higher education shall provide
students not only with adequate theoretical and practical knowledge in their field, but also the
necessary abilities and competencies to carry out their job requirements (Hernández et al, 2009).
The labor market and employer needs directly dynamics of occupational structure that
expectations are affecting the graduates’ employment in the labor market (Tazebachew, 2018).

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2.1.2. The required skills for employee by employers

Employee will provide certain services on the job that satisfy the demand of an organization
whereas the employer's planned to facilitate working environment to achieve the organization’s
objectives and mission (Jerusalem, 2016)
According to Amanuddin (2015), Employees should have skills especial employability skills in
order to compete in the labor market and retained by the employers. This indicates that
employability of an employee was affected by employability skills and it indirectly influences
the satisfaction of the employers. The skills required by employers in two broad clusters, namely
technical and nontechnical skills.

2.1.2.1 None technical skills

Non-technical skills refer to ‘‘employability skills’’ that are received out of the regular education
program. These skills are not limited to specific job positions in the work place. But rather serve
a wider purpose in an individual’s attempts. It can utilize majority of the work occupation or
common to all jobs and this skills cannot be received with limited time however can be gain
through experience with a long period of time (Ahmad, et,al 2011).
According to (Fidella, 2014) now days the challenging of business organization only have
professional skills is not ample for university graduates to satisfying employer demands or
requirements.
According to PSET employer survey, 2014 in Samoa employer has provide high value to non
technical skills, from university graduate employees to have lessening and communication skills.
‘’seven core competency skills are divided into two main groups, foundation and workplace
competencies’’. Table 1 explained in more detail the content and elements contained (Fidella,
2014).
According to Tazebachew (2018), Graduates and employers have different views of about the
relevant, the degree and significance of soft skills from different outlooks. However, the nature
of soft skills requirements different from one industry to other industry for instance the soft skills
an individual in military and teachers professions are completely different except few both of
them will share and this skills is which is created or cultivated by environmental factors and this
will not be satisfactory by employers expectation for employees soft skills.

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 According to Gallagher (20000), the main the requirements of skills needed by different
organization employer as follows:
 The skills demanded by property and business services sectors are namely creativity and
flair, enthusiasm, and capacity for independent, critical thinking, Good numeracy and
good problem solving skills.
 The finance and insurance companies is great demand for skills required by employees
are time management skills and the capacity to handle pressure as well as creativity and
flair, enthusiasm, and capacity for independent and critical thinking.. They also place
great value in academic learning, problem solving skills, logical and orderly thinking
skills than other industries.
 Employers in the hospitality industry are more interested to personal presentation
initiative, maturity, and grooming, and flexibility and adaptability. They also give
emphasis in critical thinkers with good oral communication and time management skills.
 There are no skills not demanded by manufacturing sector employers. But they have less
demanding overall in terms of the range of skills tested compared to other sector
employers. Since creativity, flair and enthusiasm are to be the most important attributes
for graduates to have.
 Flexibility and adaptability are the most important skills required by in construction
company employers. They also gave a higher value to customer focus than their
counterparts in other industries. But it is not give high value.
 Employers in retail industry were gave the highest value to creativity and flair,
enthusiasm, and capacity for independent and critical thinking and other skills required
by employees were not different to other employers in their demands.
 The wholesaler trade industry employers were not want specific area skills. But they
more importance rating to rely on -the-job training skills than other industry employers.

Group Skills and Competencies Elements

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Foundation
Basic Skills Reading, Writing, Speaking, Listening skills
Arithmetic/Mathematics

Thinking Skills Creative thinking, Decision making

Learning skills, Problem solving skills
Personal Qualities Responsibility, Self-esteem, Self-management
Sociability, Integrity
Honesty
Resources Skills Time, Money and Material & facilities
management
Human resources
Workplace Competencies

Interpersonal Skills Participates as a team member

Teaches others new skills
Serves clients/customers
Exercises leadership
Negotiates
Works with diversity
Informational Skills Acquires and evaluates information
Organizes and maintains information
Interprets and communicates information
Uses computers to process information
System and Technology Skills Understands systems
Monitors and corrects performance
Improves or designs systems
Selects & Applies technology to task
Maintains and troubleshoots equipment

Table 1: List of employability skills from (Fidella, 2014)

2.1.2.2, Technical skills

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 According to Medina (2010), technical skills are ‘’skill, expertise or technical competence
related to the field of the workers, whether engineering or technical skills or ‘hard skills’’ is
often linked with the use of materials or tools to order the work appropriately. It can be gained in
formal and non formal way and it also can be known and understood more easily as can be seen
clearly with the naked eye. ‘’Hard skills are the technical abilities and knowledge needed for a
job (Marcel, 2012). Technical skills are essential for an engineering graduate working as an
engineer profession (Fidella, 2014).
Technical skills is the Practical subjects based on scientific principles that posses from the
institutions of higher learning and attending courses and seminars organized by training centers
(Eureka, 2015).
According to PSET employer survey, 2014 in Samoa Employers also give feedback how is
useful for university graduates have technical skills being workable their position in the work
place. It also found that employees are prepared and have functional their technical skills in the
work environment as estimated by employer.

Technical Skills Characteristic Details

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 Breadth and depth of education and type of knowledge, Apply knowledge of mathematics,
Engineering
knowledge
both theoretical and practical science, engineering specialization
to the solution of complex
engineering problems
Design/ development of solutions

Breadth and uniqueness of engineering problems i.e. the Design solutions for complex
extent to which problems are original and to which engineering problems and design
solutions have previously been identified or codified systems, components or processes
that meet specified needs with
appropriate consideration for public
health and safety, cultural, societal,
and environmental considerations.

Level of understanding of the appropriateness of the Create, select and apply appropriate
tool techniques, resources, and modern
Modern Tool Usage

engineering and IT tools, including

prediction and modeling, to
complex engineering activities, with
an understanding of the limitations.

Type of solutions Understand the impact of

professional engineering solutions
Environment And
Sustainability

in societal and environmental

contexts and demonstrate
knowledge of and need for
sustainable development

Table 2: List of Technical skills elements from (Fidella, 2014)

2.1.3. Personality

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Personality is the individual pattern of psychological processes arising from individual
characteristics such as patterns of thought, emotion, behavior, motives, and feeling. It also
Defined as "Personality is the entire mental organization of a human being at any stage of his
development. It embraces every phase of human character including: intellect, temperament,
skill, morality, and every attitude that has been built up in the course of one's life" (Muindi and
Peter, 2015) According to Goldberg (1990), refer by kurt (2007), Many Researchers have
identified individual’s personality with a five-factor model, often termed the Big Five model of
personality consisting of Neuroticism, Extraversion, Agreeableness, Openness and
Conscientiousness. These five wide-ranging factors of higher order, identified in several
empirical studies constitute the pattern of traits across individuals and are considered the
fundamental dimensions of personality. Individuals with high Conscientiousness have been
reported to be dependable, responsible, organized, hardworking, and achievement-oriented
(Jennifer, 2012).Researchers have linked people’s personalities to their jobs, contextual
performance and characteristic behavioral patterns that differentiate them from others. The main
reason of People’s developing habits of behavior and personality patterns their option of
decision-making and problem-solving processes will be People’s natural personality preferences.
It is also found that a direct relation between people’s personalities and their employability in the
labor market (Momoh, 2015).

2.1.4. Performance Appraisal as a way to Measure Employers Satisfaction

Performance appraisal is the Continues Open Communication and official assessment of an

employee performance in order to decide or determine who employee was effectively and
efficiently performed his or her job (Mohammednur, 2018). Performance appraisal is the
employees work performance evaluation methods with respect to his or her job owned by human
resource management in an organiztion (Frehiwot, 2017). According to Addis Ababa University,
school of commerce performance management, monitoring and evaluation manual, (2016)
Performance appraisal is the formal assessment and rating of individual by their managers at,
usually an annual performance evaluation meeting and it has been discredited The performance
of employees can be evaluated by objective measures such as the number of pieces and quality of
output produced. It is directly evaluated by the supervisor or line manager and a person who
performs the evaluation. The subjective measures of employee performance can be evaluated by

14
based on the evaluator’s judgments and provides flexibility in the appraisal system (Frehiwot,
2017). Three major types of behavior that constitutes performance at work needs to measure
during performance appraisal.

1. Task Performance: Performing the duties and responsibilities that contribute to the
production of a good or service or to administrative tasks.
2. Citizenship: Actions that contribute to the psychological environment of the organization,
such as helping others when not required, supporting organizational objectives, treating
co- workers with respect, making constructive suggestions, and saying positive things
about the workplace.
3. Counter productivity: Actions that actively damage the organization. These behaviors
include stealing, damaging company property, behaving aggressively toward co-workers,
and taking avoidable absences.

2.2. Empirical literature Review

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According to (Tazebachew (2017), managers have provide better scores in Satisfaction it also
more satisfied with knowledge and understanding skills of their employees and less satisfied
with positive attitude and self-discipline who work in the bank.

With the exception of engineers and doctors, new graduates who work in private sector ` should
have necessary skills and qualities in the work environment. But the private sector employers are
not satisfied those skills and qualities especially with ICT skills, English language proficiency
and the applicability of practical knowledge. It also conclude that employees should improve
those skills, attitudes and qualities to compete in the labor market (Athula, 2011)

The main reasons for negative perception of employers towards their employees had the negative
expectation of educational quality of PHEIs. As a result, employees who graduate PHEIs have
little demand by employers. However, once they hired them, they are highly satisfied with the
knowledge and skill of graduates, who came from PHEIs. So PHEIs should take the initiative to
create awareness among employers about the quality of their education (frehiwot, 2017).
According to (Tudy, 2017) employers are highly satisfied with all skills of graduates. It also
conclude that technical skills are the most important skills that demanded by employers. So
universities should continuous improvement in the curriculum, programs, and services in order to
develop those skills.
Employers are the more satisfied with employees listening, adapting situations of change and
functioning skills. It also needs positive attitude meeting deadlines and communicating one-tone
skills. The perception of employers in new graduate skills included motivation, adaptability, self-
discipline, self-management, and the willingness to learn skills (Dorothy, 2016).
According to Mahsood (2011), the gap between employability skills developed at the University
and the expectations of employer describes that employers are satisfied by employees with their
generic skills and knowledge, personal characteristics, interpersonal skills, intellectual skills.

2.3. Conceptual Framework

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 Independent variables Dependent variable

Non-technical skills
 Basic skills
 Thinking skills
 Resource skills
 Interpersonal skills
 Informational skills
 System and technology skills

Employer level of satisfaction

Technical skills
 Engineering knowledge skills
 Design/development skills
 Modern tool usage skills
 Environment and sustainability
skills

Personal characteristics
 Punctuality
 Motivation
 Good character
 Attitude

CHAPTER THREE

3. RESEARCH METHODOLOGY

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This chapter presents the research method and procedures used in the study, which consists of
the following sections: research design and approach, population, sample size and sampling
procedure, data sources and data collection methods with analysis methods.

3.1. Research Design

Polity and Beck (2003), describe a research design as the overall plan and structure of
investigation for the purpose of provide answers to research questions or testing the research
hypothesis. Studied and handling questions are some of the difficulties encountered during the
research process.
Grove et.al, (2003), defines a research design as “a blueprint for conducting a study with
maximum control over factors that may interfere with the validity of the findings”.
The research design for this study will the Cross-sectional field survey method because data will
be collected at one point of time during a period of two months to assess the relationship
between independent variables and employers satisfaction by university graduates in health,
education and Engineering profession In cross-sectional field surveys, independent and
dependent variables are measured at the same point in time using a single questionnaire Anol,
(2012). In addition the studies will also co relational in design because there is intended to
establish the relationship between dependent and independent variable of the study.

3.2. Research approach

Based on the purpose of the research, descriptive research design will be chose. This is because it
describes the characteristics of objects, people group and organization. And also as it was noted
by Frehiwot (2017, this plan used to describe and explicate the tendency of events that occur
now, and which existed in the past and which affect on the present situation. It also helps to
describe broad varieties of data from different respondents.
The researcher will be uses mixed research method design consists of both qualitative and
quantitative data to analyze data by using both qualitative and quantitative techniques to
overcome the limitation of using one technique. Thus, the researcher believes that the objectives
of this study are best addresses through a descriptive design and by using mixed approach Hiwot
(2015).

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3.3. Source of Data

The necessary data for this study will be collected from both primary and secondary sources. The
primary data will collected through survey method. For this purpose both open and close ended
questionnaires will prepare and administer to the chosen respondents. According to Derara
(2014), the major advantages of questionnaires are that they can be administered to groups of
people simultaneously, and they are less costly and less time-consuming than other measuring
instruments.
The secondary data materials will collect from relevant source like publication, articles, journals,
and documents that have direct and indirect relationship with managers’ satisfaction of university
graduate in engineering, health and education profession.

3.4. Study Population & Sampling Procedures

Population is the universe where the required number of samples will be drawn. Sekeran
(2001) defines a population as “the entire group of people, events, or thing of interest that the
researcher wishes to investigate”. The target population for this study will consists of a total of
526 public and private, construction companies, health and education sectors who are located in
Addis Ababa City Administration. 305, private and public colleges and schools, 86 private and
public health sectors, 135 private and public construction companies located in Addis Ababa.
The sampling frame can be defined as set of source materials from which the sample is selected.
The definition also encompasses the purpose of sampling frames, which is to provide a means for
choosing the particular members of the target population that are to be includes in the survey
(Derara, 2014).However, sampling location is a place where a research is conducted or/and a
place where information is acquired.
In this research, source materials consisted of all private and public engineering, education and
health profession worker managers working in Addis Ababa city administration are selected
purposively because according to (Kothari, 1990), ‘’particular units of the universe for
constituting a sample on the basis that the small mass that they so select out of a huge one will be
typical or representative of the whole’’.

According to Kothari (1990), stratified sampling is defined as if the population from which a
sample is to be selected it cannot establish a similar or homogeneous group, this sampling

19
method the population is divided into several sub-populations that are individually more
homogeneous than the total population and then we select items from each stratum to constitute a
sample. Since each stratum is more homogeneous than the total population. Due to this reason
the private and public engineering, education and health organizations are selected through
stratified sampling methods. Due to limitedness in capacity, the study couldn’t address the entire
population of all private and public engineering, education and health profession worker
managers working in Addis Ababa city administration rather represent a sample. For this study
systematic sampling technique was used.

Yamane (1967), sample size determination formula is conducted to know the actual sample size
from the entire population by using a simplified formula for Proportions n= N/ (1+ e 2N), Yamane
sample calculation is a way to determine the sample size for a study. It is the most ideal method
to use when the only thing you know about the underlying population you are sampling from is
its size. The Yamane sample size states that:
nY= N/(1+Ne2),
Where, nY, is your Yamane sample size,
N, is your underlying population size and e, is determined from the confidence you are seeking
from your study. That is, if you want to be 95% (confidence level) sure about the results of your
study then e=0.05, or margin of error.
The types of sampling mentioned earlier was systematic random sampling technique (SRS ) to
distribute questionnaire to those of public and private engineering, education and health sector
managers working at Addis Ababa City Administration.
As indicated in the article “Taro Yemane sample size calculation techniques’’ has published a
formula for determining sample size. For determining needed sample size when population size
known is the following;
n = N/ (1+ e^2N),
n = the required sample size
N = the population size. (526)
e = the degree of accuracy expressed as a margin of error (.05).
n= 526/(1+(0.05) ^2*526
n = 526/1+0.0025*526
n = 526 /1+1.315

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 n =526 /2.315
n = 227.2138
n= ~ 227
.

Sector type

No Category private public population sample

1 health sector 47 39 86 37

2 education sector 208 97 305 132

3 constriction industry 120 15 135 58

  total 375 151 526 227

Therefore, the researcher used the above formula by considering sampling technique to minimize
sampling error and determine the sample size and the result of the equation was 227.2138 and
approximately 227 representative samples was taken from 526 population size for the
questionnaire survey. Then after obtained the actual sample size the researcher was select the
first nth sample individual by conducting lottery method / random number and the rest sample
individuals were selected using systematic sampling method.

1-in-k systematic sample

Most commonly, a systematic sample is obtained by randomly selecting 1 unit from the first k
units in the population and every kth element thereafter. This approach is called a 1in k
systematic sample with a random start. To choose k so than a sample of appropriate size is
selected, calculate:

K(Sampling Interval)= Number of units in population / Number of sample units required

Accordingly, I will planned to choose 227 samples from a population of 526 public and private
engineering, healthy and education sector managers, k = 526/227= 2, so this design would be a 1-
in-2 systematic sample. After calculating this sampling interval, I will ready to select the first

21
BSU. Choose a random number 2 between 1 and the sampling interval I will calculate. (https://
research- methodology.net/sampling /probability–sampling/) noted that the first sample has to be
chosen in a random manner. It is important to select the first sample randomly to ensure
probability sampling aspect of the systematic sampling. To choose the 2 nd BSU, add the sampling
interval to the number of the 1st BSU, by adding the sampling interval to the number found for
the previous BSU is continuing until the last (nth +sampling Interval) members of sample group
are chosen among the population.

3.5. Data Collection Methods and Procedures

Mainly For this study my data gathering instruments were a Questionnaires and Observation
guide. And for the content of Questionnaires some of them will develop by the researcher
because of new independent variables that will the researcher tried to incorporate in this study
and the rest was adoption with modification from previous different research.
The questions will be designed & translated by simple Amharic to reduce misunderstanding and
uncertainties on the questions by the respondents.
The questions will formed in a five point Likert scale such as 1= vary satisfied, 2= satisfied, 3=
Unsatisfied, 4= Very Unsatisfied which allows respondents to indicate level of agreement with
the statement provided. It was lead to a better understanding towards the Antecedents of
employer satisfaction of engineering, education and health sector workers in Addis Ababa.
The researcher will be decided to use these tools because; questionnaires were help in gathering
basic data from large number of respondent with fewer amounts of time on the other hand
interviews that give the advantage of collecting detailed information from small number of
respondents and it will helps the researcher how take in to account how the target population
feels and think about the problem.
The questionnaire was prepared to addresses respondent’s demographic profile, educational
background and work experience and other mentioned /drivers / determinants of employer
satisfaction in public and private engineering, education and healthy profession in Addis
Ababa. .

3.6. Pilot Testing

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In the way that to reduce the possibility of getting the answer wrong, attention need to be paid to
two particular issues: reliability and validity (Saunders, 2003).

3.6.1. Validity

Validity defined as the extent to which data collection method or methods accurately measure
what they intended to measure (Saunders 2003). Numbers of different steps were taken to ensure
the validity of the study:
 Data will collected from the respondents who fulfill the require qualifications like those
who are the managers of engineering, health and education profession employees
working in those selected organizations in Addis Ababa. So, the researcher believes the
data will collect from the reliable sources.
 Questions will made based on literature review and frame of reference to ensure the
validity of the result;
 The questionnaires will evaluate by managers who has a long year experience in those
organizations. And based on his /her comments re-arrangement and modification will
made.

3.6.2. Reliability

Validity is a necessary but not sufficient condition of a measure. A second consideration is

reliability. According to Saunders, (2003) reliability refers to the degree to which data collection
method or methods will yield consistent findings (J. Briony, 2006).
In conclusion the real difference between reliability and validity is mostly a matter of definition.
Hair et al. (2007) defines reliability as the extents to which a variable or a set of variables is
consistent in what it is intended to measure. To ensure the inner consistency of the present
instrument, it was used the cronbach’s alpha coefficient. Developed by Lee Cronbach in 1951,
the cronbach’s alpha coefficient is a statistical tool that evaluates the confidentiality through the
inner consistency of a questionnaire. For the utilization of this coefficient, it is a requirement that
all the items of an instrument use the same measurement scale. Validity, on the other hand,
involves the degree to which is measuring what you are supposed to, more simply, the accuracy
of your measurement. It is my belief that validity is more important than reliability because if an

23
instrument does not accurately measure what it is supposed to, there is no reason to use it even if
it measures consistently (reliably).
According to Sekaran, (2003), reliabilities less than 0.6 are considered to be poor, those in the
0.7 range to be acceptable and those over 0.8 are good. The reliability coefficient closer to 1 is
better. Therefore the researcher will test both the reliability and validly.

3.7. Data Analysis Methods and Models

After the data will collected and before data analysis the researcher will make sure the data for
their completeness; entries will check for consistency and after proper coding, the data will feed
into STATA software version 14, then after the data will cheek through correct and organization
data, lastly descriptive statistics and Econometrics analysis will use to analyze data. A
descriptive statistical method is use to manage, describe and summarize the variable data. The
outcome will shows in tables with percentages, mean scores and standard deviations, range,
Median, Max and Min.
In Econometrics analysis will used to see the relationship between dependent and independent
variables, see the extent effect of one variable on other, test different variables relationships and
predict about future effects.
From inferential statistics, Ordinal logistic regression model have been employed to develop
functional relationship between the dependent and independent variables.
The study will use ordered legit model because the data was cross sectional data and the
dependant variable employer satisfaction is categorical with naturally ordered or ranked.
Ordered legit regression model have appropriate method to show the relationship between
ordinal response variable and repressors that are rated on five point Likert scale asking
employers on their satisfaction rate: Very satisfied, satisfied, unsatisfied and very unsatisfied.
Thus, both the relationship between variables and the level of statistical significance will have
been assessed.

3.8. Model specification

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Model specification can be defined as the exercise of formally stating a model i.e. the explicit
translation of theory into mathematical equations and involves using all the available relevant
theory research and information and developing a theoretical model.
Regressed which has more than two outcomes in the form of likert scale questions are
importantly regressed through ordinal logistic regression (Gujarati, 2004). The response variable
or regress can have more than two outcomes and very often these outcomes are ordinal in nature;
that is, they cannot be expressed on an interval scale. Frequently, in
Survey-type research the responses are on a Likert-type scale, such as “Very satisfied’’,
‘’satisfied’’, ‘’unsatisfied’’ and ‘’very unsatisfied”. These are ordinal scales in that there is clear
ranking among the categories.
As a result, ordinal logistic regression model is the preferred logistic regression type in this
study. The following models are developed for the purpose of running ordered or ordinal logistic
regression that is necessarily to test the effects of predictors on employer satisfaction. The
formula to compute ordinal logistic regression is the following:

Y* = XTβ + €i…………………………………………………………………….. (1)

Where; Y* is the exact but unobserved dependent variable
XT is the vector of independent variables

€i is the error term and

β is the vector of regression coefficients which we wish to estimate
Thus, the effect of independent variables on a dependent variable can be modeled as described
below:

YEIM= β1X1 + β2X2 + β3X3 + β4X4 + + €i....…… (2)

Where
YEIM = Denotes the dependent or explained variable (employer satisfaction)

X1= technical skill

X2= non technical skill
X3= personal characteristics
X4= quality of work performed
β1, 2, 3……are parameters to be estimated

25
€ is the error term with assumption (normal with mean 0 and variance 1)

The analysis will at a confidence of 95% significance level. Correlation analysis will use to
describe the degree to which one variable relates to the other.
Diagnostic Tests: post estimation tests such as Multicollinearity, Linearity, and Independence of
errors, Tests of Overall Model Fit and Goodness‐of‐Fit Measures tests will be conducted during
data analysis.

No. Objective Data Type Data Source Method of Analysis

1 to assess the satisfaction level Quantitative, Survey questionnaire, Univariate
Qualitative, (Descriptive) analysis,
of employer’s

Table.3. Objective, Data and Analysis Matrix

Variables Description of variables Measurement Expected sign

26
 Dependent variable
Satisfaction level of employers Categorical  
Employer satisfaction
Independent variables      

skill skills of employees Categorical ±

personal characteristics of
personal characteristics   ±
employees
Age Age of the respondents   ±

Sex sex of respondents    

Educational level Age of the respondents continuous ±

Dummy variable 0 if employer is

Work experience Dummy ±
female,1 if employer is male

Educational level educational level of respondents Categorical ±

The average years of service to

Work experience Categorical ±
respondents

Table 4.Variable Definition, Measurement and Expected Effect of dependent and

independent variable

27
 3.9          Work plan
Time Table
Sn
Main Activities De Fe
o Start Finish Sep Oct Nov
c
Jan
b
Mar Apr May June
1 Thesis title submission and approval 24/12/2018 24/12/2018                  
2 Preparation of concept paper 25/12/2018 06/01/2019                    
3 Submit Concept Paper to Advisors 08/01/2019 08/01/2019                    

28
 Budget plan
Quantity Price Total
No Description Reference
(Number) (Birr) Amount

1 Transport expenses for Data Collection 5 1000 5,000  

2 labtop computer 1 18000 18,000  

3 Internat     7,000  

4 Stationery and printing        

4.
1 1 reams of Printing papers 1 100 100  
4.
2 Printing/Binding 4 20 80  

5 Miscellaneous     3,518  

  TOTAL     33,698  

29
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Health Education to Health

Education

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