Abstract:
The objective of the study was to investigate the effects of internal marketing on employee job
satisfaction in the case of Gondar City Administration. This study used explanatory research
design and quantitative research approach. The study was based on 283 sample respondents which
was selected by using stratified random sampling technique. The research gathered data by
using questionnaire; Then the data collected, was analyzed by using inferential statistical tests such
as one-sample t-test, independent sample t-test and multiple linear. One sample and independent
sample t-tests were used to measure the extents and existence of group differences between managers
and officers respectively; in addition, multiple linear regression was used to evaluate the effects of
internal marketing dimensions on employee job satisfaction. Descriptive statistics was also used to
corroborate the demographic background of respondents. The results of the study revealed that
the extents of reward, training, motivation and internal communication dimensions was
found low; conversely empowerment and managerial support dimensions were found high. In
connection the extent of employees’ job satisfaction was also found low. The study also finds
out that internal marketing dimensions together accounted for 60 % of variance in the
dependent variable of employee job satisfaction. Moreover, the regression model result
depicted that from the proposed six internal marketing dimensions, five of the internal
marketing dimensions such as reward, motivation, internal communication, managerial
support and training were significant predictors of job satisfaction; whereas empowerment
was found to be insignificant predictor to job satisfaction. In addition, reward and motivation
dimensions were the first and the second most powerful predictors by determining 55.5 and
29.8 percent of the variance in job satisfaction. Furthermore, the level of job satisfaction
between managers and officers differs significantly implying that higher level of satisfaction
was observed among managers than officers. Finally based on the findings and conclusions
the study recommends to managers in public sectors expend effort to reward and motivate
their employees by establishing effective plans and documents.