The Effect of Staff Retention Policies on Employees Organizational Commitment: The Case of Berhan International Bank S.C.
No Thumbnail Available
Date
2015-05
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
This research was conducted to examine the effect of staff retention policies on organizational
commitment in the case of Berhan International Bank Share Company (BrIB) using drivers of
organizational commitment as an indicator. Data was gathered from Head Office and almost all
branches(both city and outlying). Descriptive and inferential statistics was used to analyze the
empirical data and also cluster sampling was used followed by systematic sampling to select the
samples. Primary data were collected using five Point Likert-Scale questionnaires and a
structured interview and 184 responses were properly filled and returned. Statistical package for
social science studies (SPSS) version 20 was used to analyze empirical data collected through
the close ended questionnaire. The independent variables are compensation, job security,
Training and development, working conditions, supervisor support culture, and organizational
justice whereas the dependent variable is employees’ organizational commitment. The mean and
standard deviation of the dependent and independent variables were computed and interpreted.
Pearson correlation Coefficient (r) was used to determine the relationship between each
independent variable with the dependent variable. The descriptive statistics result indicated that
the mean value for compensation (mean=2.65), Supervisor Support Culture (mean=2.69), Work
Environment (mean=2.75), Organizational Justice (mean=2.87), and Organizational
Commitment (mean2.78) were below average which indicate that employees in general are not
committed in BrIB. The correlation result indicated that there were positive relationship between
all of independent variables and the dependent variable, rejecting all null hypotheses. This
implies that any increase or decrease on the independent variable will bring corresponding
change on employees’ organizational commitment. It’s found that the independent variables has
a 48% influence on the dependent variable while the remaining 52% is influenced by factors
unaccounted in this research. It was concluded that the organization’s management expectation
to increase overall employees’ commitment as a result of the said staff retention policies did not
materialize for various reasons such as lengthy and bureaucratic process, various eligibility
criterion… etc
Description
Keywords
Compensation, Job security, Training and Development