The Effect of Organizational Culture on Employees’ Commitment – the case of Ethiopian Airlines
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Date
2019-06
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Addis Ababa University
Abstract
The objective of this study was to assess and examine he relationship between organizational culture and employees’ commitment. The researcher used explanatory research design with quantitative research approach in order to meet the objective of the study. The target population for this study was professional employees of Ethiopian Airlines located in Addis Ababa, Head Quarter. Out of which 364 respondents were selected using Stratified Random Sampling Technique. A structured and self-administered questionnaire was developed based on Denison’s organizational culture dimensions (involvement, consistency, adaptability and mission) and employees’ commitment, and distributed to the target respondents. A total of 331 questionnaires were used for this study and the data were analyzed using descriptive and inferential statistics. Pearson Correlation analysis shows that there was statistically significant positive relationship between all the four organizational dimensions (i.e. involvement, consistency, adaptability and mission) and employees’ commitment. Moreover, mission had stronger positive and statistically significant correlation with employees’ commitment than the other dimensions. Relatively, involvement had less positive correlation with employees’ commitment. The result of multiple regression Analysis revealed that 23.7% of the variation of employees’ commitment can be predicted by the independent variables i.e. involvement, consistency, adaptability and mission. In addition, the two organization culture dimensions (i.e. adaptability and mission) had significant contribution to employees’ commitment at 95% confidence level. However, involvement and consistency had a positive but statistically insignificant contribution towards employees’ commitment. Accordingly maintaining the organizational culture with significant contribution towards commitment (i.e. Identification with mission and adaptability) by communicating its mission and vision to the newly hired employees consistently and rewarding innovation to encourage employees for further creativity is recommended by the researcher. The need to establish clearly defined and visible expression of organizational culture is also recommended by the researcher.
Description
A Thesis submitted to School of Graduate Studies of Addis Ababa University College of Business and Economics in partial fulfillment of the requirements for the Award of Master of Business Administration in Management
Keywords
Employees’ commitment, Ethiopian Airlines, Organizational culture