Influence Of Employee Empowerment Strategies on Performance of Non-Governmental Organizations in Addis Ababa City, Ethiopia

Abstract

Employee empowerment is a crucial factor in enhancing the performance of non-governmental organizations (NGOs), particularly in Addis Ababa, Ethiopia, where NGOs address significant socio-economic challenges. Despite their critical role in promoting sustainable development, many NGOs face obstacles such as hierarchical leadership, limited access to information, inadequate skills development, and unsupportive management, which hinder effectiveness. This study examines the influence of empowerment strategies autonomy in decision-making, access to information, skills development, and supportive management on NGO performance in Addis Ababa. Grounded in Self-Determination Theory, Resource-Based View Theory, Human Capital Theory, and Leader-Member Exchange Theory, the study employed a descriptive survey design. The target population comprised employees from selected NGOs, with a representative sample drawn through stratified and simple random sampling. Data were collected via structured questionnaires and analyzed using descriptive and inferential statistics. Diagnostic tests, including reliability and validity assessments, ensured data accuracy. Multiple regression results revealed significant explanatory power, with an adjusted R² of 0.786, showing that 78.6% of performance variation was explained by the four empowerment strategies. The model was statistically significant (F = 11.273, p < 0.001), confirming the joint predictive strength of the variables. At the individual level, all four significantly influenced performance. Autonomy in decision-making (β = 0.233, p = 0.013) enhanced ownership and accountability. Access to information (β = 0.245, p = 0.003) fostered transparency and better decisions. Skills development (β = 0.312, p = 0.000) improved employee capabilities, boosting efficiency. Most notably, supportive management (β = 0.615, p = 0.000) had the strongest effect, highlighting leadership, mentorship, and resource support as key drivers of motivation. The study concludes that NGO performance in Addis Ababa is significantly shaped by the alignment of empowerment strategies. It recommends prioritizing decision-making autonomy, enhancing information access, investing in skills development, and promoting supportive management. These findings offer practical insights for NGO leaders and policymakers to strengthen workforce engagement and organizational effectiveness.