The Effect of Organizational Culture on Employee Performance: the Case of Berhan International Bank s.c
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Date
2019-06
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Addis Ababa University
Abstract
The objective of this study was to investigate the effect of four organizational culture traits namely,
involvement, consistency, adaptability and mission on employee performance in Berhan
International Bank s.c. Based on the work of Denison on organization culture traits, a structured
questionnaire was developed and self-administered to employees of Berhan International Bank s.c to
collect explanatory data. Since the research is descriptive in nature quantitative method was used. A
total of 161 employees participated in the study and the data’s were analyzed using descriptive and
inferential statistics. The results show that the four traits measuring organizational culture were all
positively related with employee’s performance within the range of r=0.634 to r=0.738. Moreover,
adaptability is the most contributing organizational culture traits in the prediction of employee
performance with beta value .376. The other three organizational culture traits, in their descending
order of standardized coefficients are involvement, mission and consistency. Furthermore,
statistically significant of the four organizational culture traits: adaptability and involvement
indicate that there is significant relationship with employees’ performance. However, consistency
and mission doesn’t have significant effect on employee performance as it is explained by
significance level p>0.05. The implications of the findings were discussed and recommendations
made. From the study organizational culture has positive relation with employee performance.
Having this the organization should do a frequent cultural audit so that to perform better and be
competitive
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Keywords
Organizational culture, involvement, consistency, adaptability