“The Impact of Organizational Climate on Employees’ Job satisfaction: The Case of Commercial Bank of Ethiopia
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Date
2024-10
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Addis Ababa University
Abstract
The main purpose of this study is to explore the impact of organizational climate on employees’ job satisfaction at commercial bank of Ethiopia. The subjects of the study are employees of the Bank who work at the head quarter. This study was conducted with the use of a survey. A questionnaire on organizational climate dimensions and job satisfaction was developed to assess both the organizational climate and job satisfaction of the employees. Two hundred seventy-eight (278) questionnaires were returned, for a response rate of 91.72 percent. The questionnaire was divided into two parts. The first part included questions related to respondents' biographical and organizational variables and the second part comprises of 30 measuring questions under different categorical dimensions. Statistical methods used to analyze the data included Cronbach's alpha coefficient to determine reliability of the instrument. Spearman's rho correlation was employed to assess the degree of relationship between organizational climate and job satisfaction. The data analysis revealed a strong, positive, and significant correlation between all dimensions of organizational climate (trust, job security, job autonomy, and recognition) and job satisfaction. Regression analysis further confirmed that these dimensions collectively explained a significant portion (64.7%) of the variance in job satisfaction, with all four being significant predictors. The findings suggest that fostering a positive organizational climate that emphasizes trust, job security, job autonomy, and recognition can contribute to increased job satisfaction among employees.
Key Words: - Organizational Climate, Job Satisfaction, Trust, Job security, Job autonomy, and Recognition and appreciation