FACTORS AFFECTING ORGANIZATIONAL COMMITMENT AT BUNA INTERNATIONAL BANK SHARE COMPANY
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Date
2018-05-19
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Addis Ababa University
Abstract
A study was conducted to determine factors affecting organizational commitment at Buna International Bank Share Company and to identify the factors that influencing the organizational commitment of Employees, the researcher had distributed questionnaire for 187 respondents. The instruments used for data collection were Meyer, Allen, and Smith (1996) 20 item organizational commitment questionnaire (Johnston, Parasuraman, Futrell, and Black, 1990; Mathieu, Bruvold and Ritchey, 2000; Boles, Madupalli, Rutherford and Wood, 2007)31 item survey(JSS)tool. Spearman’s Rank Correlation Statistical tool and multiple regressions were used to test the hypotheses the finding revealed that there was low level of organizational commitment. According factors affecting organizational commitment(Compensation and Incentive, Training and Learning Opportunity, Career Management, Supervisor support and Promotions Fairness level of BIB employees were low except Supervisor support and Career management factors And correlation analysis and linier regression shows that significant positive relationship was found between Organizational Commitment and the stated affecting factors. However multiple regressions analysis result was describe that the only two of factors were significant, (*p < 0.05, **p < 0.01) in influencing organizational commitment. The significant variables were Supervisor Support, (B=0.337, p < 0.01)and Compensation and Incentive (B=0.242, p < 0.01) but the other three factors, Training and Learning Opportunity, Career Management and Promotion fairness found to be not significant in influencing organizational commitment in this research. And Supervisor Support and Organizational Commitment contributed 35.8% and 30.1% to organizational commitment respectively. And the adjusted R² is 0.403. Thus, by taking the adjusted R² can be said the predictors i.e., Compensation and Incentive, Training and Learning Opportunity, Career Management, Super Visor Support and Promotion Fairness account for 40.3% variation of employee’s organizational commitment. And the remaining 59.7% depend on other factors. The result of the study also revealed that from the five selected factors major predictors of organizational commitment were Supervisor Support and Compensation and Incentive
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Organizational Commitment, Compensation, Incentive