The Effect of Organizational Culture on Employee’s Commitment: The Case of Commercial Bank of Ethiopia in Gondar City; Gondar.

Abstract

The main objective of the study was to examine the effect of organizational culture on employee’s commitment in Commercial Bank of Ethiopia at Gondar City branches. The researcher used explanatory type of research design with quantitative research approach in order to meet the objective of the study. The total target populations of this particular study were 564 professional employee’s of Commercial Bank of Ethiopia at Gondar city. A standardized questionnaire which had been adopted from previous scholars on five-point Likert scale foundation was used to collect data from 222 sample respondents in Commercial Bank of Ethiopia. In addition to this, Simple random sampling technique was undertaken to select respondents from each branch of Commercial Bank of Ethiopia at Gondar City. Pearson Correlation analysis was used and explore that there was positive and significant relationship between all the four dimensions of organizational culture and employee commitment in the Bank. Besides, the regression result revealed that all the four dimensions measuring organizational culture were found to have their own positive and significant effect on employee’s commitment in Commercial Bank of Ethiopia at City. Consistency was found to be the most contributing organizational culture dimension in the prediction of employee’s commitment. The remaining three dimensions, involvement, adaptability and mission had significant contribution in predicting employee’s commitments in their respective order. The overall finding of the study suggests that all the four dimensions of organization culture dimensions had statistically positive significant effect on employee commitment and the researcher conclude that organizational culture had a significant effect in improving the level of employee commitment in Commercial Bank of Ethiopia at Gondar city. Based on the finding of the study, the researcher recommended that Commercial Bank of Ethiopia should give priority to all selected organizational culture traits i.e. involvement, consistency, adaptability and mission which had strong influences on employee’s commitment.