The job characteristics necessary for better performance of employees are skill variety, task identity, task significance, autonomy, and feedback. The purpose of this study was to determine the effect of job design on employee job performance in Abay Bank, Bahir Dar city branches. The study adopted a descriptive research design and used census method. A total of 233 employees participated in the study. A structured questionnaire consisting of 5-point Likert scale items was used to collect data; developed and selfadministered to employees in Abay Bank, Bahir Dar city branches. The quantitative data in the study was analyzed using descriptive and inferential statistics. Pearson correlation coefficient was used to check the relationship between independent and dependent variables. The results show that the five job characteristics measuring job design such as skill variety, task identity, task significance, autonomy and feedback are positively related to employee job performance within the range of r=0.346 to r=0.531. Besides, feedback is the most forecasting job design in the prediction of employee job performance with beta value 0.228. The other four job design dimensions, in their descending order of unstandardized coefficients are task significance, autonomy, task identity, and skill variety. Furthermore, multiple regression analysis is used to measure the statistical effect of each independent variable on the dependent variable. The result of the test indicated that the alternative hypothesis of task identity, task significance, autonomy, and feedback is corroborated by multiple regressions as p <0.05. However, the skill variety has no significant effect on the job performance of employees as it is explained by the level of significance p> 0.05. The study concludes that job design affects the performance of employees. The implications of the results are discussed and recommendations made. The study recommends that Abay Bank in Bahir Dar city branches should improve job design to enhance the employees’ job performance. The organization should consider skill variety, task identity, task significance, autonomy and feedback in the design of a job to increase the performance of employees.