The Effect Of Organizational Culture On Employees’ Perceived Performance: The Case Of Berhan International Bank S.C

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Date

2018-10-21

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Addis Ababa University

Abstract

This study investigates the effect of organizational culture on employees’ perceived performance. The aim of this study is to assess and examine the effect of organizational culture on employee performance in Berhan International Bank S.C.. The conceptual framework was designed by treating organizational culture as an independent variable and employee performance as dependent variable. To achieve the objective, six research questions and five hypotheses were formulated. Organizational culture was further expressed using specific culture dimensions such as involvement, consistency, adaptability and mission. Explanatory or causal research design with mixed research approach was applied. The organizational culture questionnaire was adopted from Denison (1990) and the employee performance questionnaire was adopted from Onyango (2014). In order to check the reliability and internal consistency of the questionnaire, cronbach alpha was tested. Furthermore, pilot test was conducted before the distribution of the questionnaires. The data were obtained by an interview and survey questionnaires consisted of 54 statements with five point Likert scale. The study took 250 target population with response rate of 132 respondents. The data were analyzed using SPSS (version 20). Both Descriptive as well as inferential statistics were used to analyze the data and interpret results. According to the results of regression analysis, it can be concluded that 57.6% of variation in employee performance is accountable for organizational culture. Specifically, Consistency and Adaptability sub culture dimensions have a positive and a high significant effect on employees’ performance. Based on the research findings and research conclusions, major recommendations such as; employees’ capacity development, performance management system, and enhancing internal communication tools were offered for possible consideration by Berhan International Bank S.C.

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Keywords

Organizational Culture, Involvement, Consistency

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