Abstract:
Globally, efficient fixed asset management practices are recognized as essential for enhancing operational efficiency, reducing costs, and maximizing the lifespan and productivity of physical assets. The study analyzes the effect of fixed asset management practice on organizational performance of Awash Bank S.C., Addis Ababa, Ethiopia. To achieve objectives of the study, descriptive and explanatory research designs were employed. A qualitative and quantitative research approaches were used where both primary and secondary data have been utilized. To obtain the primary data, structured questionnaire and interview techniques were employed. From the total population, 376 employees were selected using simple random sampling technique and participated as a sample size of the study. The data collected were analyzed using descriptive (percentage, mean, and standard deviation) and inferential statistics (Pearson correlation, analysis of variance, and multiple linear regressions) with the help of statistical package for the social science, version 23. The result of the study indicated that the fixed asset structure, acquisition, accountability, maintenance, and disposal positively correlated with each other. All predictors also have positive and significant correlation with organizational performance. The regression analysis shows that fixed asset structure is highly, positively and significantly influenced organizational performance, followed by maintenance and acquisition. Based on these findings, the bank is suggested to focus on improving fixed asset structure and maintenance, followed by acquisition to achieve the most significant positive effect on organizational performance
