The effect of organizational culture on employees‟ commitment the case of Oromia international bank S.C
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Date
2020-07
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A.A.U
Abstract
The objective of this study was to examine the effect of organizational culture on employees’ commitment in Oromia International Bank S.C. The conceptual framework was designed by considering organizational culture as an independent variable and employee commitment as dependent variable. To achieve the objective, four research questions and four hypotheses were formulated. Organizational culture was more expressed using specific culture dimensions such as involvement, consistency, adaptability and mission. Explanatory or causal research design with quantitative research approach was applied. In order to check the reliability and internal consistency of the questionnaire, cronbach’s alpha was tested. The data were obtained by closed-ended questionnaires consisted of 51 statements with five point Likert scale. The study took 1535 target population with sample of 307 respondents, out of which 291 (94.8%) were returned. The data were analyzed using SPSS (version 24). Both Descriptive and inferential statistics were used to analyze the data and interpret results. Pearson Correlation analysis shows that there was statistically significant positive relationship between all selected four organizational dimensions (i.e. involvement, consistency, adaptability and mission) and employees’ commitment. Moreover, the regression result revealed that all the four dimensions measuring organizational culture were found to have their own positive and significant effect on employees' commitment. Consistency was found to be the most contributing organizational culture dimension in the prediction of employees’ commitment. The remaining three dimension; adaptability, involvement and mission had significant contribution in predicting employees’ commitments in their respective order. And also the results of regression analysis, it can be concluded that 64.6% of the variation in the employees’ commitment of the bank can be explained by the organizational culture. Based on the research findings and research conclusions, the bank should observe the organizational culture and should check whether the cultures they have consistent approach to doing business are making their employees more committed or not. The bank has to make sure that the involvement of its employees, consistency, adaptability and let know the mission and the directions of the organizations so that employees' commitment could be improved.
Description
A Thesis Submitted to Addis Ababa University College of Business and Economics School of Graduate Studies MBA Program in Partial Fulfillment of the Requirements for the Award of Master Business Administration in Management
Keywords
Adaptability, Employees’ Commitment, Involvement, Organizational Culture