The Relationship Between Organizational Excellence and Organizational Commitment (In Case of Awash Bank)
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Date
2024-04-12
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AAU
Abstract
This study investigated the relationship between organizational excellence and employee commitment
within Awash Bank. Specifically, it examined how organizational excellence practices, measured using
the Kanji Business Excellence Model, influence employee commitment across three facets: affective
(emotional attachment), normative (obligation to stay), and continuance (lack of better alternatives).
A quantitative approach with a correlational design was employed. Data were collected from 228
Awash Bank employees using a self-reported questionnaire encompassing Meyer & Allen's
Organizational Commitment scale and Kanji Excellence Model items. Multivariate data analysis
(MANOVA) and Pearson correlation coefficients were used to assess the overall relationship and
directionality between organizational excellence and commitment facets. Linear regression analysis
explored the explanatory power of excellence dimensions on each commitment facet.
The findings revealed a significant positive relationship between overall organizational excellence and
employee commitment. Leadership and people management practices emerged as key contributors to
excellence, significantly impacting affective commitment. Affective and normative commitments were
explained by 34.8% and 15.5% of the variance in organizational excellence factors, respectively.
Interestingly, while continuance commitment showed a positive association with excellence, the
relationship was not statistically significant.
The study highlights the importance of prioritizing affective and normative commitment aspects when
designing and implementing organizational excellence initiatives at Awash Bank. By fostering strong
leadership, effective people management practices, and continuous improvement culture, the bank can
cultivate a more engaged and committed workforce, contributing to its long-term success.