The Effect of Organizational Culture on organizational Performance : the Case of Tsedey Bank
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Date
2023-06
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Addis Ababa University
Abstract
The way an organization interacts with its internal and external environments in the quest for answers to issues like performance and survival depends on the culture that the majority of its people share. Therefore, the main goal of this study was to examine how organizational culture affected Tsedey Bank's performance from a non-financial standpoint in Addis Ababa, Ethiopia. The research's scope was restricted to all leaders and staff members working under a few chosen branch offices, eliminating recently hired personnel who cannot demonstrate all performance management processes, i.e., the company's progression from an MFI to a bank. To accomplish its primary impartiality, for the literature review on organizational culture and performance, the researcher examined primary and secondary sources that were gathered through structured questionnaires from the employees still employed by the bank and from books and the bank's website, respectively. The association and impact of two factors were examined using an "explanatory/causal" approach. Statistical Package for Social Sciences (SPSS) 23 was used by the researcher to analyze and interpret the data. Out of 30 branches in Addis Ababa, the researcher focused on 12 branches that mostly operate in Addis Ababa, Ethiopia. The study used a 59 person sample size. The primary and secondary sources yielded all the information required. The term "primary data" refers to information that has been collected directly by the researcher. Secondary data is information that was gathered earlier by another party. The response rate was 100% out of the 59 questionnaires that were given to Tsedey Bank employees and collected. According to the finding of the research that all four organizational cultural features, particularly value, tradition, custom, and belief, were relevant in the context of the bank and had a weighted average mean value of 4.133. The cumulative impact of the four organizational cultures demonstrates that culture has a significant impact on the performance of the bank. While still other performance-related aspects have an impact on a performance to the tune of 33.8%. In order to maintain its performance and guarantee its ecological growth, the organization should therefore continue to research those other contributing variables