The Effect of Organizational Culture on Organizational Performance: In Case of Cooperative Bank of Oromia S.C

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Date

2023-07

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Addis Ababa University

Abstract

This study is aimed at investigating the effect of organizational culture on organizational performance in Cooperative Bank of Oromia. Denison's Model was used to visualize the four components of organizational culture: Mission, Consistency, Adaptability, and Involvement. The study was also determined the extent to which organizational culture influences Cooperative Bank of Oromia's performance through BSC measurement. The study was delimited to area sampling and the proportionate stratified sampling techniques. Quantitative data was collected using self-administered questionnaire which are developed and distributed to a sample size of 265 employees. With a response rate of 82.26%, 218 questionnaires are returned and were used for data analysis. Based on research objectives and questions, quantitative research approach was adopted and explanatory research design were employed. The findings of the study have shown that organizational culture with three dimensions (i.e. Mission, Adaptability and Involvement) has positive and significant effect on organizational performance, while Consistency dimension of the organizational culture has negative relationship and no significant effect on organizational performance. The result of multiple regression analysis has shown that organizational culture has positively and significantly predicted organizational performance with the coefficient of determination (R-Square) of 0.581 which means 58.1%. The researcher recommended that the bank should work on creating and maintaining the right organizational culture to enhance its performance.

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