Woldia University Faculty of Business and Economics Departement of Management
Woldia University Faculty of Business and Economics Departement of Management
By:- ID NO
1. Genet Mengstie•••••••••••••••••••••••••2559/07
2. Getasew Merkebu•••••••••••••••••••••••2274/08
3. Getaye Getu•••••••••••••••••••••••••••••2276/08
Advisor:-
Nuru Siraj (MBA)
MAY, 2018
WOLDIA, AMHARA, ETHIOPIA
1
ACKNOWLEDGEMENT
First and for most we would like to thanks our almighty God for his endless help in every aspect
of ours life. Next to that we would like to express our sincere gratitude to our Advisor Mr. Nuru
Siraj for his Advise and comment in all of paper. .
It’s also fact that we would like to thanks our families for their contribution to the success of this
study and for their financially and morally support.
2
ABSTRACT
The objectives of this study were to identify the main organizational culture of Dashen bank and its
relation to employee’s commitment, to a bank’s the organizational culture and describe their
suitability to the employees and to examine the contribution of the existing organizational
culture on the employee’s commitment. In this study the researchers used primary data
questionnaire.Whereas, secondary data collected from written materials about the organization.
Census used to collect data from employees because of they were few in numbers. The collected
data effectively processed, analyzed and presented by using percentage and tabulating. The major
findings of the study was employee’s to ward doing their job, conflict tolerance behavior among
employees, and the degree of employee’s commitment to their organization were identified and the
possible conclusion and recommendation was given. To overcome this problem Dashen bank has
better to: encourage functional conflict among employees as well as the management, of Dashen
bank better to follow participatory kind of decision making, providing continuous ethics course.
Table of contents
ACKNOWLEDGEMENT ……………………………………………………………………………
3
ABSTRACT............................................................................................................
Table of Contents
LIST OF TABLES.............................................................................................................................
CHAPTER ONE..............................................................................................................................
ONE
1. INTRODUCTION......................................................................................................................
1.1 BACKGROUND OF THE STUDY.....................................................................................
1.2 STATEMENT OF THE PROBLEM.....................................................................................
1.3 Research question...............................................................................................................
1.3 OBJECTIVE OF THE STUDY...............................................................................................
1.3.1 General objective ........................................................................................................
1.3.2 Specific objective ........................................................................................................
1.4 SCOPE OF THE STUDY...................................................................................................
1.5 LIMITATION OF THE STUDY.............................................................................................
1.6 SIGNIFICANCE OF THE STUDY........................................................................................
CHAPTER TWO.............................................................................................................................
2. REVIEW OF RELATED LITERATURE.................................................................................
2.1 Definition of Organizational Culture......................................................................................
2.2 COMPONENTS OF ORGANIZATIONS CULTURE...........................................................
2.2 .1 Artifacts and Creations (level one)..................................................................................
2.2.2 Values (level two).............................................................................................................
2.2.3 Basic Underlying Assumptions or Norms (level three)....................................................
2.3 DIMENSIONS (CHARACTERISTICS) OF ORGANIZATION CULTURE........................
2.3.1 The Role of Culture in the Organization..........................................................................
2.4 TYPES OF ORGANIZATION CULTURES..........................................................................
2.4.1 The Bureaucratic or Role Culture.....................................................................................
2.4.2 The Power Culture............................................................................................................
2.4.3 Task or Matrix or Achievement Culture...........................................................................
2.4.4 Person or Support Culture................................................................................................
2.5 EMPLOYEE COMMITMENT...............................................................................................
2.5.1 Commitment Typologies..................................................................................................
4
2.5.2 Affective Commitment.....................................................................................................
2.5.3. Continuance Commitment...............................................................................................
2.5.4 Normative Commitment or Obligation.............................................................................
CHAPTER THEREE..........................................................................................................
THEREE
3. RESEARCH METHODOLOGY..............................................................................................
3.1 Research design......................................................................................................................
3.2 Target population and sampling size ......................................................................................
3.3 sampling technique.................................................................................................................
3.4 soure of data and gathering tools.............................................................................................
3.5 Data analysis and intepretation ..............................................................................................
CHAPTER FOUR...........................................................................................................................
FOUR
DATA ANALYSIS AND INTERPRETATION..............................................................................
INTERPRETATION
CHAPTER FIVE.............................................................................................................................
5. CONCLUSIONS AND RECOMMENDATIONS........................................................................
5.1 CONCLUSIONS.....................................................................................................................
5.2 RECOMMENDATION...........................................................................................................
REFERENCE....................................................................................................................................
REFERENCE
APPENDIX........................................................................................................................................
5
LIST OF TABLES
TABLE NO PAGE
1. Background of respondents……………………………………………………
Organization ………………………………………………………………………..
organization …………………………………………………………………………
organization…..................................................................................
organization………………………………………………………………………...
the organization………………………………………………………………………
organization…………...
CHAPTER ONE
6
1. INTRODUCTION
7
1.2STATEMENT OF THE PROBLEM
Organization culture can act as a boundary that differentiates one organization from the other.
This may encourage employee’s sense of identity. But ensuring the smooth and good functioning
of any organization in a competitive environment is highly challenging task. This task requires
good knowledge the existing values, norms, beliefs, practices and method that makes the core of
organization culture, most of employees as well as managers doesn't give enough attention to it.
Also most of organization culture is not a written rules and regulation; rather it is mind rules,
beliefs that enforce people to behave (Robbins, 1996).
Dashen bank is one of the biggest private bank in Ethiopia. It has many branches in Ethiopia,
One of them is Woldia, Adago branch. As we compare it with other private banks it proceeded
them in number of customers and this motivate the researchers to conduct a study on assessment
of its organizational culture on employee commitment. Finally the study attempted to answer the
following basic question.
8
1.4 SCOPE OF THE STUDY
Even though, there are many banks in woldia town, this study was focused only Dashen bank
specifically in Adago since it was difficult to assess many organizations due to time and financial
constraints. The research was conducted using census survey technique. Moreover, this study
concern only organization culture on employee commitment as it is time consuming and difficult
Some respondents were not willing to fill out the questioner, so, the researchers cannot
collect the entire questioner, but most of the respondents were fill the questioner.
Lake of adequate data from the organization
9
CHAPTER TWO
10
Organizational culture is the set of shared assumption, values and norms that identifies what the
organization considers important and how employees in judge manager should behave….(noe
etal,1996)
11
2.2.2 Values (level two)
These are the second level of culture and reflect underling beliefs in the organization about the
things that are important to people. Values are conscious, affective desires or wants. “Values are
the things that the members of an organization collectively see as important and which
consequently tend to guide their behavior”. (Sadler, 1995)
When we say value, there may have a difference between a company’s exposed values (what the
members say they value) and its enacted values (values reflected is the way the members actually
behave. (Nelson & Quick,1997).
12
2.3.1 The Role of Culture in the Organization
Culture can serve two critical functions in the organization. The first role is it creates internal
integration in the organization. This means that the guides the day-today work relationship in the
organization and determine how people communicate in the organization. The second role is
external adaptation this means how the organization meet is goals and response to outside. If
employees perform their work cooperatively, they can meet the goal of their organization. (Singh
and Chhabara, 2002).
13
2.4.4 Person or Support Culture
This types of culture is formed in the organization whose purpose is to save the interest of the
person or the individual within it. The individual is very important and the organization structure
and system are designed to facilitate and support the work of the key individual wealth earners.
Such types of culture exist in partnership of a few individuals who do all the work of the
organization themselves.
14
payoffs, fulfillments of a debt to the organization, strong identification with the employees., and
lack of job alternatives resulting in a limited mobility.
15
outcomes and correlated of commitment. However, more recently, researchers are beginning to
examine more individual level correctives of affective commitment like steers, week beings &
work formally conflict. (Meyer etal. 2000)
CHAPTER THREE
3. RESEARCH METHODOLOGY
16
CHAPTER FOUR
4. DATA ANALYSIS AND INTERPRETATION
This part deals with the analysis of the data collected during the process of the research. Thirty
three (33) copies of questionnaires were distributed to employees of Dashen bank.
Out of 33 questionnaires distributed to participants 29(87.88%) were filled and returned while
the remaining 4(12.12%) were not returned due to certain problem, respondents’ inability
(refusal) to return some of the question. Thus, the response rate for the questionnaire distributed
is 87.88% and total of 29 responses were used in the data analysis procedures.
Number %
17
Degree 25 86.20
MBA - -
Total 29 100
4 Marital status Married 21 72.41
Single 8 27.59
Divorced - -
Total 29 100
5 Work experience 1-3 6 20.69
3-6 10 34.48
6-9 8 27.59
Above 50 5 17.24
Total 29 100
18
of respondents have above 9years work experience. This implies that majority of the respondents
served the organization 3-6 year work experience
Number %
1 My initiative to do the work in Strongly disagree 6 20.69
my on are no accepted on Disagree
employer commitment Neutral
16 55.17
Agree - -
Strongly agree
7 24.14
- -
Total 29 100
2 Here every body works his or Strongly disagree 3
her on job, nobody cares about Disagree
other job Neutral
9
Agree 1
Strongly agree
11
5
Total 29 100
Source: Own Survey, 2010 E.C
Table 4.2 shows on employee’s autonomy toward doing their job, the researchers wear asked
respondents whether the initiative to do the work in their own responded no accepted on
19
employee’s commitment. Accordingly, 6(20.69%) of the respondents were responded strongly
disagree, 16(55.17%) of the respondents were responded disagree, 7(24.14%) of the respondents
were responded agree.
The second item of table 4.2 indicates accordingly every body works his or her own job nobody
cares about other job. 3(10.34%) of the respondents were responded strongly disagree,
9(31.03%) of the respondents were responded disagree, 1(3.45%) of the respondents were
responded neutral,11(37.93%) of the respondents were responded and the remaining 5(17.24%)
of the respondents were responded strongly agree. this indicate that the majority of respondents
were responded response, 11(37.93%) were agree with the existence of here every body works
his or her own job nobody cares about others work.
Number %
1 People bring out the Strongly disagree 2 6.90
conflict issues in the open Disagree 8 27.58
without fear of punishment Neutral - -
Agree 13 44.83
Strongly agree 6 20.69
Total 29 100
20
4.4 Assess objectives and performance evaluation in the
organization
Table 4.4The existence of clear objectives and performance expectation
No Items Responses Respondents
Number %
1 The duties and responsibilities Strongly disagree 4 13.79
attached to our job are not clearly Disagree 10 34.48
informed to us Neutral 2 6.90
Agree 7 24.14
Strongly agree 6 20.69
Total 29 100
Total 29 100
Source: Own Survey, 2010 E.C
The first item of table 4.4 indicate that 4(13.79%) of the respondents were responded strongly
disagree, 10(34.48%) of the respondents were responded disagree, 2(6.90%) of the respondents
were responded neutral, 7(24.14%) of the respondents were responded agree, and the remaining
6(20.69%) of the respondents were responded strongly agree. This indicated that the majority of
respondents responds 10(34.48%) were disagree with the existence of the duties and
responsibilities attached to their job are not clearly informed to them.
The second items of table 4.4 indicate that 1(3.45%) of the respondents were responded strongly
disagree, 3(10.35%) of the respondents were responded disagree, 2(6.90%) of the respondent
21
were responded neutral, 14(48.27%) of the respondents were responded agree, and the remaining
9(31.03%) of the respondents were responded strongly agree. this indicated that the majority of
respondents responds 14(48.27%) were agree with the existence of they try their best to make a
meaningful contribution to their organization throughout their job
Total 29 100
Source: Own Survey, 2010 E.C
The first items of table 4.5 indicate that on communication hierarchy, 2(6.90%) of the
respondents were responded strongly disagree,2(6.9%) of the respondents were responded
disagree, 3(10.35%)of the respondents were responded neutral,15(52.72%)of the respondents
were responded agree, and the remaining 7(24.13%) of the respondents were responded strongly
agree. This indicated that the majority of respondents response 15(51.72%) were agree with the
existence of they must communicate in the organization according to specified formal hierarchy.
22
The second items of table 4.5 indicate that 3(10.35%) of the respondents were responded
strongly disagree, 10(34.48%) of the respondents were responded disagree, 4(13.74%) of the
respondents were responded neutral, 11(37.93) of the respondents were responded agree and the
remaining 1(3.45%) were strongly agree. This indicated that the majority of respondents
response 11(37.93%) were agree with the existence of they are can go to their supervisors or any
colleagues at any time. So this implies that employees of dashen bank have freedom to raise their
idea to the supervisors/leaders of the organization. This increases employee commitment to
organizational tasks.
Number %
Neutral 2 6.90
Agree 10 34.48
Total 29 100
23
respondents response 10(34.48%) were agree with the existence of they were told in what way
they have to behave in the organization.
Number %
1 In this organization Strongly disagree 1 3.45
promotion are given Disagree 7 24.13
according to seniority rather Neutral 1 3.45
than merit and ability of Agree 9 31.03
employees Strongly agree 11 37.93
Total 29 100
Total 29 100
Source: Own Survey, 2010 E.C
The first items of table 4.7 indicate that 1(3.45%) of the respondents were responded strongly
disagree, 7(24.14%) of the respondents were responded disagree, 1(3.45%) of the respondents
were responded neutral, 9(31.03%) of the respondents were responded agree and the remaining
11(37.93%) of the respondents were responded strongly agree .this indicated that the majority of
24
respondents responded11(37.93%) were strongly agree with the existence of in this organization
promotion were given according to seniority rather than merit and ability of employees.
The second items of table 4.7 indicate that 4(13.79%) of the respondents were responded
strongly disagree, 7(24.13%) of the respondents were responded disagree, 2(6.89%) of the
respondents were responded neutral, (24.13) of the respondent were responded agree, and the
remaining 9(31.03%) of the respondents were responded strongly agree. this indicated that the
majority of respondents responded with 9(31.03%) were strongly agree with the existence of
sometimes they do not know why they have been rewarded.
Total 29 100
3 One of the causes of living in Strongly disagree - -
this organization is not scarcity Disagree 9 31.03
of other job alternatives Neutral - -
elsewhere Agree 10 34.48
Strongly agree 10 34.48
Total 29 100
25
Source: Own Survey, 2010 E.C
The first items of table 4.8 indicate that 4(13.79%) of the respondents were responded strongly
disagree, 4(13.79%) of the respondents were responded disagree, 2(6.90%) of the respondents
were responded neutral, 12(41.38%) of the respondents were responded agree and the remaining
7(24.14%) of the respondents were responded strongly agree. this indicated that the majority of
respondents response 12(41.38%) were agree with the existence of they would be very happy to
spend the rest of their life career with this organization.
The second items of table 4.8 indicate that 3(10.34%) of the respondents were responded
strongly disagree,4(13.79%) of the respondents were responded disagree,4(13.79) of the
respondents were responded neutral, 9(31.03%) of the respondents were responded agree, and
the remaining 9(31.03%) of the respondents were responded strongly agree. this indicated that
the majority of respondents response with 9(31.03%) were agree and 9(31.03%)of the
respondents were strongly agree with the existence of they really feel that this organizations’
problems are their own.
The third items of table 4.8 indicate that 9(31.03%) of the respondents were responded disagree,
10(34.48%) of the respondents were responded agree, and the remaining 10(34.48%) of the
respondents were responded strongly agree. This indicated that the majority of respondents
response 10(34.48%) were agree and 10(34.48% ) were strongly agree with the existence of one
of the causes of living in this organization was not scarcity of other job alternatives where.
The respondents said that, the bank with in working condition is very good by different reasons
because the organization is encouraged and promote the unity of employees. this enhance good
atmosphere in the organization and this create good organizational culture. in the organization
their is a smooth relation among employee
26
Table 4.9 show relationship and effect of organizational culture on employee
commitment
No Items Responses Respondents
Number %
1 Organizational culture is directly related Strongly disagree 1 3.45
with employee commitment Disagree 4 13.79
Neutral 1 3.45
Agree 15 51.72
Strongly agree 8 27.59
Total 29 100
2 Organization culture have an effect on Strongly disagree 4 13.78
employee commitment Disagree 7 24.14
Neutral 1 3.45
Agree 4 13.78
Strongly agree 13 44.83
Total 29 100
27
responded strongly agree with the idea that organization culture have an effect on employee
commitment.
The respondents said that, the organization has good organizational culture. Even if the
organization don't have divers’ employee composition the general organizational culture is
interesting.
The respondents said that, to support teach banking skill, this means all workers (officers) could
be helped each other because this strengthen the organizational culture.
28
CHAPTER FIVE
Conflicts are highly discouraged in Dashen bank. This resulted from fear of
disciplinary measure taken on the participants. This increase stress and moral
disasters among employees.
Dashen bank has a highly bureaucratic structure and employees have to follow
and communicate according to the specified line of hierarchy even if form
communication is used to control problems easy for the management
There are problems in promotion and reward system of Dashen bank.
29
5.2 RECOMMENDATION
On the basis of the findings made and conclusions drawn with regard to organization culture on
employees’ commitment a case study of Dashen bank the following recommendations were
given.
Conflicts were highly discouraged in Dashen bank. To overcome this problem, Dashen
bank has better to: encourage functional conflict among employees as well as the
management, of Dashen bank, better to follow participatory kind of decision-making,
providing continuous ethics course. When employees participate in decision making
process a must for rising conflicting idea and this pave for creativity and innovation.
Dashen bank has problem on communication pattern. To overcome this problem the
researchers suggested that: Balancing formal and informal communication because
formal communication consume more time for decision making, Dashen bank, has to
permits the establishment of good labor association, by preparing get together program.
Also Dashen bank has problem on promotion and rewarding system. to overcome this
problem by: Balancing both seniority and ability as a base for rewarding employees
based on the situation, Rewarding employees who perform better than other, because, it
lead to encouraging creativity in the organization.
Dashen bank has own effect with the general rule and regulation to overcome this
problem the researcher suggests that: Dashen bank should change its strict rule and
regulation about how to talk, dress by flexible rule according to interest of employees.
Dashen bank has better to practice the following activities. Provide sound working
environment, give full responsibility to their own specific job, and create a sense of
belongingness by paying their salary match with their effort.
Generally we try to show the organizational culture on employee’s commitment
up to these. The other researchers next to these assess widely to the same
organization or other sector.
30
REFERENCE
4. Singh and T.N Chhabra, (2002), Organization Theory and Behavior, DHANPATRAS
and co. (p) LTD, Delhi.
6. Wright Neo.et AL, (1996) Management of organizations, von Hoffman press, Inc, USA.
8. Lioyd L. Byars and Leslie W. Rue (1997), Human Resource Management, 5th Ed USA.
9. Noe, Hollenbeck, Gerhrt wright (2004), fundamental of human resource, 2nd Ed, USA.
31
APPENDIX
WOLDIA UNIVERSITY
FUCULITY OF BUSINESS AND ECONOMICS
DEPARTMENT OF MANAGEMENT
This is organization study conducting for supporting the researchers senior essay paper
entitled as assessment of organizational culture on employee commitment in dashen
bank. Is an aim to get information about your work life in the organization, The gathered
information will be kept secret and be used mainly for the researchers academic purpose
not evaluating your commitment and take same measure. we hope you will extract your
kind cooperation lies with frankly responding to this questionnaire.
Thank you for in advance
GENERAL INSTRUCTION
Please:-
To maintain confidentiality, please do not write your name or sign anywhere in the
questionnaire
Give your response to all the statement found in the questionnaire.
Kindly do not consult others while responding
Please choose among the alternative and make “x” sign on it..
Part One:- Demographic information
Sex:
A. Male B. Female
2. Age A. 18-25 C. 34-41 E. above 50
B. 26-33 D. 42- 50
3. Education A. 10-12 completed B. Diploma
. C. Degree D. MBA Degree
32
4. Marital status A. Married B single C Divorced
Below are some statements, which describe the possible feelings and beliefs you may have about
your organization. Please indicate your response by ticking only one of the five alternatives.
No Items Strongly Disagree Neutral Agree Strongly
disagree agree
1 My initiative to do work in my
own are not accepted on
employer commitment
2 Here every body works his or
her own job, nobody care about
others work
3 People bring out the conflict
issues in to the open without fear
of punishment
4 The duties and responsibilities
attached to our job are not
informed to us
5 I try my best to make a
meaningful contribution to my
organization throughout my job
6 We must communicate in the
organization according to
specified formal hierarchy
7 We can go to our supervisor or
any colleagues at any time
33
8 We are told in what way we have
to behave in the organization
9 In this organization promotions
are given according to seniority
rather than merit and ability of
employees
10 Sometimes we do not know why
we have been rewarded
11 I would be very happy to spend
the rest of my life career with
this organization
12 I really feel that this
organizations problems are my
won
13 One of the causes of living in
this organization is not scarcity
of other job alternative elsewhere
14 Organization culture is directly
related with employee
commitment
15 Organization culture have an
effect on employee commitment
16. How do you express your organization culture in relation to employee
commitment
••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••
••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••
17. General opinion about your organization culture?
••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••
••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••
••••••••••••••••••••••••••••••••••••
34