The purpose of the study is in Partial Fulfilment for the Requirements of the Degree of Masters of Arts in Human Resource Management and the study mainly focused on the assessment of the impact of labour union on employees’ performance in commercial bank of Ethiopia. To conduct this study mixed approach method i.e., both quantitative and qualitative methods have been used to have better out come out of the study. The qualitative one has been used to describe about the perceptions of respondents about the labour union effectiveness in its major practice in enhancing the employees’ performance using content analysis. And the quantitative one to explain about the effectiveness of labour union in its major practices in enhancing the employees’ performance using statistical tool i.e., mode of frequencies in number and percentage. Communication network, working condition and harmony, safety and healthy, salaries and benefits, collective action in partnership with management, policy and strategic issues and conflict and complain handling were selected to be the study variables. For the target population it used employees of the organization who are working in Addis Ababa region. Both descriptive and explanatory survey design has been used to reach on the results. Samples of 423 employees were used for the questionnaire, and 92.43% of it was responded. The quantitative data were analysed using SPSS software and the qualitative data were analysed using content analysis and the results of which were combined by interoperating with the results of quantitative one for the final results ,as a result it was found that more than 37.9% of the respondents in the questionnaires under the closed ended questions and majority of respondents’ opinion under the open ended questions in the questionnaires have given their negative feed backs about the effectiveness of labour union. In addition, five of them out of seven interviewees have given their negative feedbacks about its effectiveness. However, much less than 45.8% of the respondents in the questionnaires have given their positive feedback. In general, as results indicate the labour union is not effective or very weak in its practices to enhance employees’ performance to the desired level in the achievement of the goals of the organization and has very weak bargaining power.
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