This research paper aims to examine the effect of employee-employer relationship practices onrnthe organizational performance: A case study of Commercial Bank of Ethiopia. The finding ofrnthis study is expected to be valuable to the service industry especially banks to emphasize in theirrnHR policies and come up with the right solution to improve their employee relationshiprnpractices. This research primarily was primarily intended to fill the gap by emphasizing thernadvantage of healthy employee-employer relationship toward organizational performance inrnBanks. To address the research objective 390 sampled respondents were selected. Purposivernsampling techniques were used to collect the data from the branches. 390 questioners wererndistributed; from which 386 sample respondents replied appropriately to the questionnaire. Datarngathered were analyzed based on these 386 responses using SPSS 20 software package.rnDescriptive statistics and inferential statistics research approach were employed. All out putsrnwere reported using frequency, correlation and multiple linear regression analysis results suchrnas ANOVA and regression coefficient results. The result indicates that communicating ways,rnleadership styles, grievance handling procedure, and motivational compensations systems hadrnstatistically significant and positive correlation with organization performance. The studyrnrecommended that the bank ought to be provides employee recognition which encourages themrnto perform better at their job duty, establish and modify a prompt and effective grievancernhandling styles and create an open dialogue