MASTERS OF BUSINESS ADMINISTRATION PROGRAM

EFFECT OF ORGANIZATIONAL CULTURE ON EMPLOYEE COMMITMENT:

THE CASE OF ETHIO TELECOM HEAD OFFICE

BY:

ASHENAFI BENTI AYANO

ADVISOR:-BONSON ALEMU (ASSIS. PROFESSOR)

A THESIS RESEARCH SUBMITTED TO THE SCHOOL OF POSTGRADUATE

STUDIES IN PARTIAL FULFILMENT FOR THE AWARD OF DEGREE IN MASTER
OF BUSINESS ADMINISTRATION OF GAGE UNIVERSITY COLLEGE

JUNE, 2022

ADDIS ABABA, ETHIOPIA

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 GAGE UNIVERSITY COLLEGE

COLLEGE OF BUSINESS AND ECONOMICS

SCHOOL OF GRADUATES

BUSINESS ADMINISTRATION PROGRAM

APPROVAL OF THE THESIS

As members of Board examiners of the final MBA, Thesis open defense examination, we certify

that we have read and evaluated the thesis prepared by Ashenafi Benti entitled “The Effect of
Organization Culture on Employee Commitment the Case of Ethio-Telecom in Head
Office”. We recommend that thesis be accepted as fulfilling the thesis requirement for the degree
of masters of business administration.

Broad of Examiners

Name of External Examiner __________________ Signature______________ Date__________

Name of Internal Examiner ___________________ Signature _____________ Date__________

Advisor _____________________________Signature ______________ Date__________

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 Declaration

I, Ashenafi Benti declare that this research paper entitled “Effect of Organizational Culture on
Employee Commitment (Case of Ethio-Telecom Head Office)” is my original work, and has not
been present for a degree or diploma in any other university and it is in partial fulfillment to the
requirement of the masters of business administration.

Name: Ashenafi Benti

Date: ___________________

Signature: ___________________

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 Acknowledgment

First and for most I would like to thank God for giving me the courage and patience for
accomplishing this research study. I would also like to thank my advisor Bonson for his guidance
and support right from the start all the way to the accomplishment of this thesis. Second to that I
would like to show my deepest gratitude and my friend to Doctor Metasebiya Dagne for their
emotional and support material for all the times. In the deepest of my heart I like to thank my for
all Special thanks for Ethio-Telecom Staff for helping me in materials and information for
supporting proposal.

I also thank, Department Business Administration, to pursue my MBA and encouraging me. I also
appreciate the help and support from all Ethiotelecom staffs who were directly or indirectly
involved in my paper work.

Last but not the least, my parents, my brothers and my friends, I thank them all for their utmost
moral support, and they are the ultimate role models, love and care in all the aspects of my life.

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 Abbreviation and Acronym

ANOVA Analysis of Variance

ETA Ethiopian Telecommunications Authority

ETC Ethiopian Telecommunications Corporation

ICT Information communication technology

LMX Leader-Member Exchange

SPSS Statistical Package for Social Science

TPO Transformation program office

SD Standard deviation

WCS Wipro consulting services

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 Table of Contents
Declaration.....................................................................................................................................................i
Acknowledgment..........................................................................................................................................ii
Abbreviation and Acronym..........................................................................................................................iii
List of Tables..............................................................................................................................................vii
List of Figure..............................................................................................................................................viii
Abstract........................................................................................................................................................ix
CHAPTER ONE...........................................................................................................................................1
1. Introduction...............................................................................................................................................1
1.1 Background of the study...................................................................................................................1
1.2 Background of Organization...................................................................................................................3
1.3 Statement of the problem........................................................................................................................4
1.4 Research Questions.................................................................................................................................5
1.5 Objectives of the study............................................................................................................................5
1.5.1 General objective.................................................................................................................................5
1.5.2 Specific objective.................................................................................................................................5
1.6 Scope and limitation of the study............................................................................................................5
1.7 Significance of the study.........................................................................................................................6
1.8 Definition of Terms.................................................................................................................................7
1.9 Organization of the paper........................................................................................................................8
CHAPTER TWO..........................................................................................................................................9
2. Literature Review....................................................................................................................................9
2.1 Organizational Culture............................................................................................................................9
2.2 Models on Organizational Culture........................................................................................................10
2.3 Functions of Organizational Culture.....................................................................................................13
2.4 Importance of organizational culture.....................................................................................................14
2.5. Theories and Measurement of Organizational Culture.........................................................................16
2.6. Harrison Typologies of Organizational Culture...................................................................................17
2.6.1. Power Culture...................................................................................................................................17
2.6.2. Role Culture......................................................................................................................................17
2.6.3. Achievement Role.............................................................................................................................18
2.6.4. Support Culture.................................................................................................................................18
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2.7 The Seven Dimensions of Culture.........................................................................................................18
2.7.1 Innovative Culture..............................................................................................................................19
2.7.2 Aggressive Culture.............................................................................................................................19
2.7.3 Outcome Oriented Culture.................................................................................................................19
2.7.4 Stable Culture.....................................................................................................................................19
2.7.5. People Oriented Culture....................................................................................................................20
2.7.6. Team Oriented Culture......................................................................................................................20
2.7.7. Detail Oriented Culture.....................................................................................................................20
2.8. Strong vs. Weak Organizational Cultures............................................................................................21
2. 9. Organizational Factors Affecting Employees’ Commitment...............................................................21
2.9.1 Job-related Factors.............................................................................................................................21
2.9.2 Employment Opportunities................................................................................................................22
2.9.3 Work Environment.............................................................................................................................22
2.9.4 Positive Relationships........................................................................................................................23
2.9.5 Organizational Structure....................................................................................................................23
2.9.6 Management Style..............................................................................................................................24
2.9.7 Personal Characteristics.....................................................................................................................24
2.10. The outcomes of commitment............................................................................................................25
2.11. Level of Commitment........................................................................................................................26
2.12. Employees’ Commitment to Organizations........................................................................................27
2.13. Source of Commitment......................................................................................................................27
2.14 Models of Organizational Commitment..............................................................................................28
2.14.1 Affective Organizational Commitment............................................................................................28
2.14.2 Continuance Organizational Commitment.......................................................................................29
2.14.3 Normative Organizational Commitment..........................................................................................30
2.15 Organizational Values.........................................................................................................................30
2.16 Leadership Style and Commitment.....................................................................................................32
2.17 Empirical Review................................................................................................................................35
2.18. Conceptual Framework......................................................................................................................37
CHAPTER THREE....................................................................................................................................38
3. Research Design and Methodology.........................................................................................................38
3.1 Research Design....................................................................................................................................38
3.2 Population and Sampling Techniques...................................................................................................38
3.3 Method of data collection......................................................................................................................39
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3.4 Source and Instrument of Data Collection.............................................................................................39
3.5 Validity and Reliability.........................................................................................................................39
3.6 Method of data analysis........................................................................................................................40
3.7 Ethical Considerations..........................................................................................................................40
CHAPTER FOUR.......................................................................................................................................41
DATA ANALYSIS, DISCUSSION AND INTRERPRITATION..............................................................41
4.1 Rate of Response...................................................................................................................................41
4.3 Descriptive Analysis.............................................................................................................................44
4.4. Correlation analysis between organizational culture and employees’ commitment..............................49
4.5 Tests of Assumption of Regression Analysis........................................................................................50
4.5.1. Linearity Test....................................................................................................................................51
4.5.2. Normality test....................................................................................................................................52
Fig 4.3 Histogram that shows the normal distribution of the population.....................................................54
4.5.3. Multicoloniarity Test.........................................................................................................................54
4.5.4. Homoscedasticity Test......................................................................................................................55
4.6 Regression Analysis..............................................................................................................................56
4.7 Interview Analysis................................................................................................................................58
CHAPTER FIVE........................................................................................................................................60
Summary, Conclusion and Recommendation.............................................................................................60
5.1 Summary of Findings............................................................................................................................60
5.2. Conclusion...........................................................................................................................................61
5.3. Recommendations................................................................................................................................63
References...................................................................................................................................................64
APPENDIX I............................................................................................................................................70

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 List of Tables

Table: 3.1 Reliability Test for organizational culture and employees’ commitment …………………...…40

Table: 4.1 Response Rate…………………………………………………………………………41

Table 4.2: Respondents Profile………………………………………………………………...…42

Table 4.3 Weighted mean results for Likert scale………………………………………………...44

Table 4.4: Descriptive statistics analysis of involvement……………………………………..….44

Table 4.5 Descriptive statistics analysis of consistency………………...………………………...46

Table 4.6: Descriptive Analysis of Adaptability……………………………...…………………..47

Table: 4.7 Descriptive Analysis of Employees commitments……………………………………48

Table 4.8 Summary of total mean and standard deviations for organizational culture and
employees’ commitment……………………………………………………………………….…48

Table 4.9 Correlation between Organizational Culture model and employees commitment….…49

Table 4.10. Multicoloniarity Test…………………………………………………………………55

Table 4.11: Model Summary of organizational culture…………………………………..………56

Table 4.12 ANOVA of organizational culture on employees’ commitment……………………..57

Table 4.13 Coefficients of organizational culture on employees’ commitment………...…….….57

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 List of Figure

Fig 2.1: Conceptual framework organizational culture…………...………………………………37

Fig 4.1 P-P plot……………………………………………………..……………...……………...51

Fig 4.2 Probability Plot (P-P) graph ……………………………………...……………...……….53

Fig 4.3 Histogram that shows the normal distribution of the population .......................................54

Fig 4.4. Scatter plot diagram .........................................................................................................55

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 Abstract

This finding emphasizes the impact of organizational way of life elements, namely; organizational
involvement, organizational consistency and adaptability on employee commitment in Ethio-
telecom. Based on the work of Denison on traditional company's features and Mowday on worker
commitment, a structured questionnaire was developed and self-administered to employees at the
Ethiopian Telecom Company. It used to be guided by research questions, which were to examine
the effect of organizational culture (involvement, consistency and adaptability) on employees’
commitment. The study used a simple random sampling approach to pick out the samples of the
respondents. The whole population of the learn about Ethio-Telecom is 264. From these, 159
samples were selected and disbursed to the respondents; eventually, 143 responses were filled
and returned. The data has been collected via questionnaire, interview and observation. The
researcher used both primary and secondary data. Descriptive and explanatory research design
was once employed as nicely as both quantitative and qualitative research strategy strategies
were once used. The facts were analyzed using descriptive statistics, Pearson correlation and
regression analysis through the software program of SPSS model 23. The result of descriptive
statistics suggests the profile of respondents and to see the understanding of employees’
commitment in mean, percentage, table and graphs. Pearson correlation to exhibit the
relationship between impartial and based variables as nicely as the regression model indicates,
employee that the effect of organizational tradition on employees commitment. The Pearson
correlation result shows that adaptability has a robust, advantageous and statistically significant
relationship with employees’ commitment. In addition, consistency and involvement in an
organizational tradition have a moderate, effective and heavy statistical relationship with
employees’ commitment. The regression analysis result indicates that organizational cultures
(involvement, consistency and adaptability) have a fantastic impact on employees’ commitment.
Based on the end result of this study, organizational tradition and employees’ commitment have a
tremendous and huge relationship. Even although the relationship is direct and positive, unhappy
overall performance of the employees and the agency as a whole may come due to the weak spot
of organizational tradition and its implementation in the organization.

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 CHAPTER ONE

1. Introduction

This chapter presents an overview of the entire study. It includes; Background of the study,
statement of the problem, research questions, and objectives of the study, significance of the
study, scope and limitation of the study.

1.1. Background of the study

Organizational culture is a system of shared meaning held by members that distinguishes the
organization from other organizations (Robbins & Judge, 2013). Thus, it is a distinct personality
of an organization (Dolan & Lingham, 2012). Organizational culture can also be defined as
shared values, norms, attitudes, and assumptions that influence the way people act and the way
things get done. Furthermore, it ensures that everyone thinks and behaves in a prescribed manner
(Armstrong, 2007; Kondalrk, 2007).

Similarly, Coffey, Trew, and Trigunarsyah (2012) explained the four organizational cultures
(involvement, consistency, adaptability, and mission) depicted in Denison's organizational
culture model. The researcher further explains these traits as follows: involvement, the first
organizational trait, ensures the participation of employees in decision making. And the
consistency trait emphasizes maintenance of the status quo by being well coordinated and well
integrated. The third trait, adaptability, describes the ability of the organization to translate the
demands of the business environment into action. The last trait is a mission, whereby
organizations devise meaningful long-term strategic direction and vision for the company.

Organizational culture comprises the unwritten customs, behaviors, and beliefs that determine
the "rules of the game" for decision making, structure, and power. It is based on the shared
history and tradition of the organization combined with current leadership values. With a strong
organizational culture, employees do things because they believe it is the right thing to do and
feel they will be rewarded for their actions. Some recent definitions of organizational culture are
dynamic and directed at creativity, innovation, and entrepreneurship. Organizational culture
includes a system of ideas and concepts, customs, traditions, procedures, and habits for

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functioning in a specific macro culture (Harris et al., 1981). Organizational culture is the
implicit, invisible, intrinsic, and informal awareness of the organization that directs the behavior
of individuals and which results from their behavior (Scholz, 1987). 

A great deal has been written about organizational culture, its impact on the effectiveness of the
organization, and its relevance to strategic issues as well as corporate success. However, because
of its profound role in influencing organizational behavior, organizational culture can mark out
the difference between strategic success and failure, hence the need to explore it in detail. Since
the organization’s source of competitive advantage lies within its employees, what they believe
and how they behave influence the organization’s success. It is therefore imperative that
managers do well to understand the culture in their organizations. 

Organization commitment is defined as the employees‟ feeling of obligation to stay with the
organization (Allen and Meyer, 1990). Organizational commitment, which is the dependent
variable in this study, has been the focus of many researchers. A well-known model proposed by
Allen and Meyer (1990) proposes that there are three components of organizational commitment,
namely, affective, continuous and normative commitment. As described by Allen and Meyer, the
affective commitment refers to the employee’s emotional attachment to, identification with and
involvement in the organization. The continuous commitment refers to commitment based on the
costs that the employee associates with leaving the organization. The normative commitment
refers to the employee’s feeling of obligation to remain with the organization.

Organizational commitment is a common phenomenon which has been extensively addressed by

many researchers worldwide due to its importance to the organization (e.g. Angle & Perry, 1981;
Kim, 2001; Lio & Nyhan, 1994; Lo, Ramayah, & Min, 2009). Organizational commitment has
been linked to the performance of organizational constituents, their loyalty, organizational
citizenship behavior, counterproductive behavior, employees‟ aggression, job satisfaction, and
other individual and group constructs. Committed employees are expected to perform at a greater
level than their uncommitted counterparts, if they are willing to work extra hours when the job
requires them to do so. They are also willing to promote the organization as a favorable place to
work.

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1.2 Background of Organization

The introduction of telecommunications services in Ethiopia dates back to 1894, when Minelik
II, the King of Ethiopia, introduced telephone technology to the country. However, the first
Ethiopian pioneer of telephony was his cousin Ras Mekonnen, who came back with a telephone
apparatus in 1889 after his visit to Italy and established a company. The company was placed
under government control at the beginning of the twentieth century, and was later brought to
operate under the auspices of the Ministry of Post and Communications. In 1952,
telecommunications services were separated from the postal administration and structured under
the Ministry of Transport and Communications. The Ethiopian Telecommunications Corporation
is the oldest public telecommunications operator in Africa. 

Under the Derge Regime, Ethiopian Telecommunications was reorganized as: Ethiopian
Telecommunications Service from October 1975 to February 1981; and the Ethiopian
Telecommunications Authority (ETA) in January 1981.

It retained this name until November 1996. The Ethiopian Telecommunications Service (ETS) as
well as the Ethiopian Telecommunications Authority (ETA) were in charge of both the operation
and regulation of telecommunications services in Ethiopia. The Ethiopian Telecommunications
Authority was replaced by the Ethiopian Telecommunications Corporation (ETC) by regulation
number 10/1996 of the Council of Ministers, pursuant to which all the rights and obligations of
the former Ethiopian Telecommunications Authority were transferred to the Corporation. 

ETC conducted a business transformation to align its services to the customer's requirements
through the deployment of Next Generation technology and processes, which will be expected to
change the culture of the company. This led to the establishment of the Transformation Program
Office (TPO) to effect the change by the formation of a new telecommunications service
providing entity. As part of the initiative, TPO has engaged Wipro consulting services (WCS) to
assess the alignment of the ongoing initiatives with the business goals and objectives
(http://www.intranet.ethiotelecom.et).

In its endeavor to create a "World Class New Company", TPO set itself the goal of creating
world-class ICT infrastructure and developing best-in-class processes that will help minimize
costs and increase revenue. These critical engagements were divided into multiple projects. All
these initiatives (projects) have made possible the creation of Ethiotelecom (ET). It is operated

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by management contracts with French telecom and the main objective of the agreement is to gain
management experience and increase the revenue of the company by eliminating unnecessary
costs and creating new revenue-generating opportunities, though cultural change is the main
hindrance for the organization to achieve its goals and objectives. 

1.3 Statement of the problem

According to (Mowday et al, 1979), organizational commitment is viewed as the psychological

strength of an employee’s attachment and involvement with the organization. According to (Deal
and (Kennedy, 1982), they argue that corporate culture affects the commitment of employees
within the organization and the strength of organizational commitment is correlated with the
strength of corporate culture. Corporate culture is vital in developing and sustaining employee
commitment and intensity levels that are often characteristic of successful organizations (Deal
and Kennedy, 1982). In addition, (Deal and Kennedy 1982) argue that corporate culture affects
the commitment of employees within the organization and the strength of organizational
commitment is correlated with the strength of corporate culture.

(Hofstede, 1991), who defines culture as being a collective mental programming meant to
differentiate the members of a group or a certain social category from the other groups‟
members. On the other hand, organizational culture is the degree to which the cultural conditions
are visible to the observer of the organization as a level of artifacts, values and assumptions on
organizational leadership (Schein, 2004).

Hence, examining the effect of each organizational cultural trait enables organizations to identify
a cultural trait which has a greater effect on employee commitment. Coming to the specific case,
Ethiopian Telecom has an organizational culture which distinguishes it from other companies.
This organization’s culture encompasses shared values, norms and attitudes which guide the way
employees behave. Accordingly, studying the organizational culture and its effect on employee
commitment might help organizations to enrich their organizational practice and adjust their
focus on the most important organizational culture type that can bring employee commitment.

Ethio-telecom is the sole and state provider of telecom service in Ethiopia, so that for most of its
customers the need to buy its products is not a matter of choice, rather it is a matter of buying or
not at all. These days, information is becoming the heart of everything and the device for this
information is provided by Ethiopian telecom. Consequently, most of the company's employees
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may perceive that they are not required to invest more efforts towards maintaining the comfort of
their customers if the customer's choice is very limited. 

1.4 Research Questions

1. What is the current organizational culture of Ethio-Telecom? 

2.  What is the effect of involvement on employees in Ethio-Telecom? 
3. What is the effect of consistency on employees in Ethio-Telecom?
4. What is the effect of adaptability on employees in Ethio-Telecom?

1.5 Objectives of the Study

1.5.1 General Objective

The general objective of the study was to assess the effect of organizational culture on employee
commitment in the Ethio-Telecom Head Office.

1.5.2 Specific Objective

1. To describe the current organizational culture of the company.  

2. To find out the effect of involvement on employee commitment. 

3. To identify the effect of consistency on employee commitment. 

4. To identify the effect of adaptability on employee commitment.

1.6 Scope and limitation of the study

Even though the effect of organizational culture on employee commitment is a problem in all
organizations, the researcher focused only on Ethio-telecom employees found in Addis Ababa
due to time and other resource problems.

The study has been delimited conceptually, geographically as well as methodologically; this
study only focuses on the effect of organizational culture on employee commitment in Addis
Ababa City. Considering the limited time and scattered geographical locations of all the Ethio-
telecom employees, the researcher tried to restrict the geographical coverage to collect primary
data from the Head Office and Addis Ababa City.

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1.7 Importance of the Research

The researcher has not found any previous research that deals with the effect of organizational
culture and its effect on employee commitment at Ethio-telecom. Most of the research done in
Ethiopia deals with the effect of organizational culture on employee performance and
motivation. Thus, research would be helpful to suggest suitable organizational culture, which has
been very important to enhance the commitment of employees in Ethio-telecom. As a result, the
research determined the precise effects of organizational culture on employee commitment and
provided insight for improving employee commitment. The result of this study may help the
organization to re-consider and amend its policies, procedures, strategy, and human resources
manual on organizational culture to enhance employees' commitment. The organization may
benefit if the manager can see the identified problems and recommend solutions based on this
research; additionally, this research will be useful to the organization's management in
conducting additional research in this area and developing strategies that can create a suitable
organizational culture for its employees. It will also be important for other researchers to conduct
further research depending on the research findings. Furthermore, this study will have the
following significance:

 The study could benefit the case organization by determining which type of
organizational culture has the greatest effect on employees' commitment. This could
also lead to improvements in workplaces to help employees become more committed
to their jobs.
 This study can help Ethio-Telecom enrich its organizational culture practice and
adjust its focus on the most important organizational culture type that can bring
employee commitment.
 The company might use the study findings as an input to amend its policy and
procedure on organizational culture and other related human capital management
strategies.
 The study might contribute to the existing literature through identifying the
significant relationship between the selected organizational culture and employee
commitment. Moreover, empirically identifying the contribution of organizational
culture traits to employee commitment in the Ethiopian context is an important
addition to the literature as well.

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1.8 Definition of Terms

Normative Organizational Commitment: A feeling of obligation to continue employment

(Allen & Meyer, 1990)
Consistency- deals with the values and systems that are the basis of a strong culture in an
organization (Denison and Neale, 2011).
Organizational values can be defined as shared mental representations about the principles that
guide organizational practices and standards (Katz & Kahn, 1974).
Organizational culture concerns the values, beliefs, history, traditions etc. reflecting the
foundations of the organization. An organization’s cultures are long standing, deeply rooted and
often slow to change (Deal & Kennedy, 1982).

Organizational Commitment: Organizational commitment defined as an employee’ strong belief in and

acceptance of an organization and strong desire to maintain membership in the organization (Dockel, A.
2003 ).

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1.9 Organization of the Paper

The study consists of five chapters. The first chapter provides an introduction to the study,
including background of the study, assertion of problem, goals of the study, research questions,
and value of the study, as well as scope and limitations of the study. The second chapter
dedicated to reviewing related literature follows via the third chapter that discusses the
methodology used to undertake the study. While chapter four presents the record analysis and
consequences part of the paper, finally, chapter five deals with the summary, conclusion, and
recommendation. The references and appendix are introduced at the end of the paper.

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 CHAPTER TWO

2. Literature Review

Theoretical Review

2.1 Organizational Culture

Organizational culture has been variously defined. In its simplest form, it can be construed as the
way things are done in the organization (Deal & Kennedy, 1982). It is a set of meanings created
within the organization, but influenced by broader social and historical processes. Culture can be
seen in the norms and values that characterize a group or organization; it is a system of shared
values and norms that define appropriate attitudes and behaviors for its members. To encourage
creativity in organizations a key challenge is to create a culture which nourishes it.
Organizational culture concerns the values, beliefs, history, traditions etc. reflecting the
foundations of the organization. An organization’s cultures are long standing, deeply rooted and
often slow to change.

Organizational culture reflects the things people value, the way people within the organization
generally relate to one another, share ideas and work together on a daily basis to get things done.
It includes the shared view of directions and values, priorities, commitments and feelings of
loyalty and personal worth within an organization. Organizational climate, on the other hand,
refers to the recurring patterns of behavior exhibited in the day to day environment of the
organization, as experienced, understood, and interpreted by the individuals within that
organization. It is an important differentiation although there is often an overlap between the
two. A positive organizational culture is essential for an organization to be successful. It also
provides personal work satisfaction, supports emotional and physical well-being and generates
high morale as well as positive perceptions by others.

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2.2 Models of Organizational Culture

Schien’s model

In order to understand culture and its impact on creativity (Schein, 1984), it offers a useful
starting point. Schein suggests that organizational culture is what a group learns over a period of
time as the group solves its problems of survival. He argues that a culture is a pattern of basic
assumptions that have been evolved, discovered, or developed by a given group as it learns to
cope with its problems of external adaptation and internal integration. "Culture is a pattern of
shared basic assumptions that has worked well enough to be considered valid and therefore to be
taught to new members as the correct way to perceive, think, and feel in relation to those
problems."

His model exists at three levels – artifacts, values, and basic assumptions. Artifacts are the
visible organizational structure and processes. Underlying values are the social principles, goals,
and standards held within the culture to have intrinsic worth, and underlying assumptions are
beliefs and habits of perception, thought, and feeling that are taken for granted.

He also observes that

"Culture matters because it is a powerful, latent, and often unconscious set of forces that
determine both our individual and collective behavior, ways of perceiving, thought patterns, and
values." Organizational culture is important because cultural elements influence strategy, goals,
and modes of operation. "

Culture is either good or bad, depending on how it supports the achievement of organizational
goals. It is "good" if it enables the organization to achieve its objectives and goals or adapt
appropriately to its external environment. If an organization needs to be creative and innovative,
it must design its culture accordingly. The question of how one does that still remains. A sensible
starting point would be to identify the current perceptions of the existing culture.

Denison’s model

(Dension, 2000) also stated that organizational culture is the fundamental values, beliefs, and
moral principles that play an important role in the organizational management system. Schein
(1984) stated that organizational culture is a pattern of basic assumptions that are raised and
spread by a group of people in such a way that they are consistent with the external environment

19
and cause cohesion within the group. (Dension, 2000) conducted some research on
organizational culture and organizational effectiveness. Based on this model, the characteristics
of organizational culture are: involvement, consistency, adoptability, and mission. Each of these
characteristics is measured with three indices.

1. Effective organizations enable their employees to establish their organization on the basis
of working groups and develop the capabilities of their human resources at all levels; as a
result, members of the organization feel committed to their work and see themselves as a
part of the organization's body. Individuals at all levels believe they are involved in
decision-making, that these decisions are effective in their work, and that their work is
directly related to organizational goals. The mentioned characteristic is measured in this
model by measuring three indexes: Individuals have the needed authority, initiative, and
ability to administer their work. This makes them feel a sense of ownership and
responsibility within the organization. Teamwork in order to fulfill common goals is
highly appreciated in the organization so that, like the managers, the employees feel that
they are responsible for their work. These organizations rely on the groups to do the
work.

Capability development: in order to supply their needs and survive in the competitive arena,
organizations develop the skills of their employees continually.

1. The available literature shows that the most effective organizations are those that are
consistent and stable, and the behavior of their employees is rooted in the core values of the
organization; leaders and followers are skilled at getting agreement (even when their attitudes
are contradictory); and organizational activities are coordinated and integrated.People with
such characteristics have a strong and distinctive culture and have a sufficient influence on
the behavior of their employees. Consistency is measured by three indexes as follows.

Core values: the members of the organization are common in some values that form their
identity and expectations.

Agreement: the members of the organization are able to come to an agreement in the event of a
difference in their attitudes. This agreement includes both the agreements at the lower levels of
the organization and the middle and upper levels of the organization.

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Coordination and integration: organizational departments that have different functionalities
can co-work to meet their common goals and objectives. The organizational frontiers will not be
messed up by this kind of co-working.

1 Adaptability: well-integrated organizations will find it difficult to change. Thus, internal

integration and external adaptability can be advantages and priorities for the organization.
Adaptable organizations are driven by customers; they take risks, take lessons from their
mistakes, and they are open to change on the basis of their capacity and experience. They
frequently improve the abilities of the organization in order to better serve the customers.
Adaptability is measured by three indexes as follows:

Creating change: the organization can think of new ways to meet its needs, understand its
surroundings, respond to current stimuli, and anticipate future changes.

Customer focus: the organization is able to understand the customers and respond to their
needs, and be prepared to supply their daily needs. Indeed, customer focus is the level at which
the organization is conducted toward customer satisfaction.

Organizational learning: this index measures the signals that organizations receive and
interpret and the opportunities that organizations create to encourage creativity, knowledge, and
abilities.

 Mission: It could be said that the most important feature of the organizational culture is
its mission. The organizations that don't know where they are and what their situation is
will be on the wrong path. Successful organizations have a clear idea of their own goals
and direction so that they clearly define their organizational and strategic goals and their
mission. The most problematic organizations are those that have to change their mission.
When an organization changes its mission, it has to change its strategy, structure, culture,
and behavior as well. In such conditions, a strong leader specifies the mission of the
organization and creates a culture that supports that vision.

Strategic direction and intent: clear strategic intent shows the direction of the organizational
goals so that everyone can make himself participate in that area or industry.

Goals and objectives: goals are tied to the mission strategy and the perspective of the
organization and specify the direction of the work of every individual in the organization.
21
The organization has a common vision for the future. The vision illustrates the core values of the
organization, brings the hearts of the human resources closer to each other, and simultaneously
specifies the directions.

2.3 Functions of Organizational Culture

According to Wagre and hollebeck (1998), an organization’s tradition is thus an informal, shared
way of perceiving lifestyles and individuals in the business enterprise that binds contributors
together and have an effect on what they suppose about themselves and their work. Overall,
culture benefits businesses with the aid of increasing organizational commitment and the
consistency of employee behavior. It additionally aids personnel by way of lowering ambiguity.
In the manner of supporting to create a mutual appreciation of the organization life,
organizational tradition fulfills five primary functions.

 It offers members an organizational identity as way of life conveys a sense of identity for
its members.
 It facilitates collective commitment. The frequent reason that grows out a shared way of
life tends to elicit strong commitment from all these who be given the culture as their
own.
 It promotes organizational stability. By nurturing a shared feel of their identification and
commitment, culture encourages lasting integration and cooperation among the
individuals of an organization.
 It additionally fosters social balance as subculture is the social glue that helps to keep the
corporation collectively through offering excellent standards for socially perfect
employee behavior.
 It shapes conduct by assisting participants make sense of their surroundings. An
organization’s subculture serves as sources of shared meanings to explain why things
show up the way they do. Culture serves as a manipulate mechanism that courses and
shapes the attitudes and conduct of employees.
Organizational way of life has many benefits to each organization and employees, as Robbins
and Judge, (2013) assert, Culture has a boundary-defining role: it creates distinctions between
one company and others. And it conveys a feel of identity for organization members. In addition,
way of life allows dedication to something large than man or woman self-interest. It also

22
enhances the steadiness of the social device through being social glue that helps maintain the
organization collectively by means of presenting standards for what personnel say and do.

Furthermore, Kondalrk (2007) tried to outline what tradition does to each personnel and
organization. First, it gives contributors an organizational identity: Sharing norms, values and
perceptions offers humans a sense of togetherness that helps promote a feeling of common
purpose. Then, it facilitates collective commitment. The common purpose that grows out of
shared lifestyle tends to elicit sturdy commitment from all these who take delivery of the way of
life as their own. Third, it promotes systems stability. By encouraging a shared feel of identity
and commitment, way of life encourages lasting integration and cooperation among the
participants of an organization. Fourth, it shapes conduct by way of assisting participants make
experience of their surroundings. An organization lifestyle serves as a supply of shared that
means that explains why things appear the way they do. Finally, it helps organizational
participants stick to conformity and anticipated mode of behavior. So, Culture ensures that
everybody thinks and behaves in a prescribed manner.

The primary feature of organizational culture is to define the way of doing things in order to
supply meaning to organizational life (Arnold, 2005). Organizational way of life additionally
determines organizational behavior, via identifying primary goals; work methods; how
participants interact and address each other; and how to conduct personal relationships (Harrison,
1993) states the following functions of organizational culture:

 Conflict reduction: A frequent culture promotes consistency of perception, hassle

definition, assessment of problems and opinions, and preferences for action.
 Coordination and control: Largely because culture promotes consistency of outlook it
also facilitates organizational methods of coordination and control.
 Reduction of uncertainty: Adopting of the cultural thought body is an nervousness
lowering device which simplifies the world of work, makes alternatives less difficult and
rational motion seem possible.
 Motivation: A fabulous and cohesive subculture can provide personnel a focal point of
identification and loyalty, foster beliefs and values that encourage personnel to perform.
 Competitive advantage: Strong tradition improves the groups chances of being profitable
in the marketplace.

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2.4 Importance of organizational culture

Saiyadin (2003:258) explains that culture performs the following functions:-

 Culture dietary supplements rational management: advent of work subculture is a time

consuming process. Therefore, employer lifestyle can't suddenly change the behavior of
humans in an organization. Culture communicates to humans thru symbols, values, bodily
settings, and language, and, thereby dietary supplements the rational administration
equipment such as science and structure. Saiyadin (2003)
 Culture enables induction and socialization: Induction is a procedure via which new
entrants to an organization as socialized and indoctrinated in the expectations of the
organization. Saiyadin (2003)
 Culture promotes a code of conduct: a strong subculture in a corporation explicitly
communicates modes of behavior so that humans are conscious that sure behaviors are
predicted and others would in no way be visible. The presence of a strong lifestyle would
be evident where members share a set of beliefs, values, and assumptions which would
impact their conduct in an invisible way.
 Culture is the ardor to an enterprise; it is the core of a successful business. So far, as the
organizational tradition grows, absolutely everyone has been normally diagnosed that it’s
way of wondering and behaving shared by means of all contributors of the organization.
Successful experience tells us, organizational tradition is an immortal pillar for the
development of the organization, cultural improvement also has the plausible pressure of
cohesion, it added no longer solely a spirit to personnel however additionally inspire them a
feel of delight and responsibility, cultivating the teamwork spirit of the organization, thus,
to enhance the basic effectiveness of the enterprise.(Pumpin, 1987)
Robbins and Judge (2013) asserted as that culture has a boundary-defining role: it creates
distinctions between one enterprise and others. It also conveys a experience of identity for
employer members. In addition, lifestyle helps dedication to something larger than character self-
interest. It also enhances the stability of the social system via being social glue that helps hold
the corporation together by way of imparting requirements for what personnel need to say and
do.

Mullins (1999) also showed that lifestyle helps to account for variations among agencies and
managers, each nationally and internationally. It also helps to explain why exceptional

24
businesses of human beings pick out things in their own way and perform things in a different
way from different groups. Culture can assist to reduce complexity and uncertainty. It gives a
consistency in outlook and values, and makes feasible the procedure of decision-making,
coordination and control.

According to Schein (1999), organizational subculture will become greater vital due to the fact
maximizing the value of employees as mental belongings requires a culture that promotes their
intellectual participation and allows both individual and organizational learning, new expertise
creation and application, and willingness to share knowledge with others.

According to Denison and Neale (2011) a clear grasp of organizational culture is vital for all
leaders because it influences the way their agencies react to the changing needs of the
commercial enterprise environment.

As Kondalrk (2007) outlined, culture offers contributors of an organizational identity: Sharing

norms, values, and perceptions which supply humans a sense of togetherness that helps to
promote a feeling of frequent purpose. Then, it enables collective commitment. The common
reason that grows out of shared tradition tends to produce sturdy dedication from all these who
be given the subculture as their own.

It also promotes device steadiness with the aid of encouraging a shared feel of identity and
commitment, way of life encourages lasting integration and cooperation among the participants
of an organization. It also shapes behavior by using assisting individuals makes feel of their
surroundings. An organization subculture serves as a source of shared meaning that explains why
matters appear the way they do. It additionally helps organizational members stick to conformity
and predicted mode of behavior. Culture additionally ensures that everybody thinks and behaves
in a prescribed manner.

2.5. Theories and Measurement of Organizational Culture

Different researchers have employed more than a few theories to measure organizational culture.
Here we will see some and the most frequent theories and measurements of organizational
culture. Schein (1984) suggests a view of organizational tradition based totally on distinguishing
three stages of culture, from the shallowest to the deepest: artifacts and creations; values; and
fundamental assumptions.

25
Level 1: Artifacts. The most visible level of tradition is artifacts and creations which is the built
physical and social environment. This includes bodily house and layout, the technological
output, written and spoken language and the overt behavior of group members.

Level 2: Espoused Values. Cultural learning reflects someone’s authentic values. Solutions about
how to deal with a new task, problem or trouble are primarily based on convictions (confidence)
of reality. If the answer works, the price can seriously change into a belief. Values and beliefs
end up part of the conceptual technique by way of which group individuals justify movements
and behavior.

Level 3: Basic Underlying Assumptions. When a solution to a problem works persistently it

comes to be taken for granted. Basic assumptions are unconsciously held discovered responses.
They are implicit assumptions that actually guide behavior and decide how team members
perceive, think and sense about things.

2.6. Harrison Typologies of Organizational Culture

Harrison typologies classes organizational subculture in to four subculture type as power, role,
achievement and assist &defines their traits as follows:

2.6.1. Power Culture

Many small companies and giant conglomerates show the characteristics of a centralized energy
culture. This mannequin is very like Weber's Charismatic organization. It is like a web with a
ruling spider. Those in the net are structured on a central power source. Rays of electricity and
affect unfold out from a central determine or group. There may additionally be a expert or
functional shape however central control is exercised generally via appointing, loyal key folks
and interventionist conduct from center. Effectiveness is judged on consequences and now and
again for the central figure, perhaps the ends on occasion justify their capacity (Brown, 1998).

2.6.2. Role Culture

Often referred to as a bureaucracy, it works via logic and rationality. Its pillars represent features
and specialism. Departmental features are delineated and empowered with their position e.g. the
finance dept., the format dept. etc. Work within and between departments (pillars) is managed by
procedures, role descriptions and authority definitions. There are mechanisms and guidelines for
26
processing selections and resolving Artifacts Visible organizational shape and procedure (hard to
decipher)Espoused values Unconscious taken for granted beliefs, perceptions, thoughts and
emotions (ultimate source of values and actions)Basic underline assumptions Strategies, dreams
philosophies (espoused justifications conflicts. Matters are taken up the line to the higher shape
where heads of features can outline a logical, rational, & corporate response. Co-ordination
is at the top with the senior management group. Job role is central to this now not necessarily the
job holder as a person. People are appointed to position based on their ability to elevate out the
functions excellent overall performance of role. Efficiency stems from rational allocation of
work and conscientious overall performance of described duty (Harrison, 1996).

2.6.3. Achievement Role

The emphasis is on outcomes and getting matters done. Resources are given to the right humans
at whatever degree who are added collectively and given decision making electricity to get on
with the task. Individuals empowered with discretion and manage over their work. The task and
effects and the primary focus and team composition and working relationships are headquartered
on functionality as an alternative than popularity (Harrison, 1993).

2.6.4. Support Culture

The person is the central point. If there is a structure it exists only to serve the men and women
within it. If a group of folks decide to band together to do their personal thing and an workplace
or secretary would assist - it is a guide culture. The tradition only exists for the people
concerned; it has no super-ordinate objective (Brown, 1998). There are many different typologies
of business enterprise culture. Hofstede argues that differences in the norms and values of special
nations can be captured by way of five dimensions of culture: individualism vs. collectivism,
power distance, fulfillment vs. nurture orientation, uncertainty avoidance, and long time period
vs. short term organizations, but this dimension of tradition is challenging to follow practically in
terms of cost, time and different useful resource problems. Quinn and Rohrbaugh (1983) use a
unique typology of corporation culture. They developed the Competing Values Framework that
has 4 dimensions: people oriented (Clan), manage oriented (hierarchy), innovation oriented
(adhocracy) and market oriented (market)

27
2.7 The Seven Dimensions of Culture

However One typology that has obtained a lot of research attention is the organizational culture
profile in which culture is represented by way of seven awesome values (Chatman & John,
1991).These consist of innovation and risk taking, interest to detail, effect orientation, people
orientation, team orientation, aggressiveness and stability, every of these characteristics exists on
a continuum from low to high.

2.7.1 Innovative Culture

It is a degree in which employees are inspired to be revolutionary and to take risks. If the
tradition of the employer is innovative and risk taking then personnel will be extra motivated
closer to their work. According to the OCP framework, organizations that have progressive
cultures are flexible and adaptable, and test with new ideas. These organizations are
characterized by using a flat hierarchy in which titles and other fame distinctions tend to be
downplayed (Deutsch man, 2004).

2.7.2 Aggressive Culture

The degree to which employees of enterprise is aggressive and aggressive alternatively than co-
operative. In this case primarily personnel compete with each other for rewards and there is no
cohesion among them to work for achievements of organizational goals. Companies with
aggressive cultures price competitiveness and outperforming competitors: By emphasizing this,
they can also fall short in the area of company social responsibility (Greene, Reinhardt &
Lowry, 2004).

2.7.3 Outcome Oriented Culture

The framework describes outcome-oriented cultures as these that emphasize achievement,

results, and action as important values (Copeland, 2004). Research shows that organizations that
have a performance-oriented way of life have a tendency to outperform organizations that are
missing such a lifestyle (Nohria, & Roberson, 2003). At the equal time, some outcome-
oriented corporations can also have such a excessive power for outcomes and measurable overall
performance goals that they may additionally suffer bad consequences. Companies over
beneficial worker overall performance skilled well-publicized enterprise and ethical failures.

28
When performance pressures lead to a culture where unethical behaviors turn out to be the norm,
individuals see their friends as rivals and non-permanent results are rewarded; the resulting
unhealthy work surroundings serves as a liability (Probst & Raisch, 2005).

2.7.4 Stable Culture

These agencies aim to coordinate and align character effort for best levels of efficiency, are
predictable, rule-oriented, and bureaucratic. When the surroundings is secure and certain, these
cultures can also help the company to be tremendous by means of presenting steady and steady
ranges of output (Westrum, 2004). These cultures forestall rapid action, and as a result can also
be a misfit to a changing and dynamic environment. Public region institutions can also be viewed
as steady cultures. In the private sector, corporation with centralized selection making and rule
orientation that suffered as a result of the lifestyle environment mismatch (Thompson, 2006). Its
bureaucratic tradition is blamed for killing top thoughts in early degrees and stopping the
company from innovating (Boyle, 2004).

2.7.5. People Oriented Culture

Value fairness, supportiveness, and appreciate for character rights. These agencies really live the
mantra that “people are their greatest asset.” In addition to having truthful tactics and
management styles, these organizations create an environment where work is enjoyable and
personnel do now not feel required to pick between work and different components of their lives.
In these organizations, there is a larger emphasis on and expectation of treating people with
recognize and dignity (Erdogan & Kraimer, 2006).

2.7.6. Team Oriented Culture

Degree to which the groups structure to all works and to operate the work of the agency due to
the fact through the team the desires can be carried out efficaciously as an alternative than
working as an individually. Companies with team-oriented cultures are collaborative and
emphasize cooperation among personnel (Bolino & Turnley, 2003). Members have a
tendency to have more positive relationships with their coworkers and mainly with their
managers (Erdogan & Kraimer, 2006).

29
2.7.7. Detail Oriented Culture

The diploma to which personnel is predicted to showcase precision, analysis, and interest to
detail. Organizational subculture based on employees’ culture, and tradition developed by using
the personnel of organization. Organizations with detail-oriented cultures are characterized in the
framework as emphasizing precision and paying attention to details. Such a lifestyle gives a
competitive advantage to organizations in the hospitality enterprise by helping them differentiate
themselves from others (Fitch, 2004).

2.8. Strong vs. Weak Organizational Cultures

Organizational culture can be both vulnerable and strong, in a strong culture; the agencies
core values are held strongly and shared widely. Strong organizational cultures have a
excellent have an effect on the conduct of organizational members (Martins &
Martins, 2003). A vulnerable culture, on the other hand, capacity the opposite of a sturdy
culture, in other words, organizational participants do no longer subscribe to the shared
beliefs, values and norms (O'Reilly, 1991). Organizational individuals in a vulnerable way
of life discover it hard to become aware of with the organizations core values and dreams
(Wilson, 1992). As a end result components or one-of-a-kind departments inside such an
employer uphold exceptional beliefs that do not necessarily address the core goals of the
organization.

2. 9. Organizational Factors Affecting Employees’ Commitment

There are a range of organizational elements that shape employees commitment. Such elements
consist of the following: job-related factors; employment opportunities; high-quality
relationships; organizational structure; and administration style.

2.9.1 Job-related Factors

Organizational dedication is an important job-related consequence at the individual level, which

may also have an have an effect on on other job-related consequences such as turnover,
absenteeism, job effort, job role and overall performance or vice versa (Randall, Fedor, &
Longenecker, 1990). The job position that is ambiguous might also lead to lack of commitment
to the company and promotional possibilities can also decorate or slash organizational dedication
30
(Curry, Wakefield, Price & Mueller, 1996). Other job factors that could have an have an
impact on on dedication are the level of responsibility and autonomy. Baron and Greenberg
(1990) state that “the higher the stage of accountability and autonomy related with a given job,
the lesser repetitive and greater fascinating it is, and the greater the stage of dedication expressed
by way of the character who fill it".

2.9.2 Employment Opportunities

The existence of employment opportunities can have an effect on organizational commitment

(Curry et. al., 1996). Individuals who have a sturdy perception that they stand a danger of
finding any other job may additionally emerge as much less dedicated to the employer as they
contemplate on such suited alternatives. Where there is lack of different employment
opportunities, there is a tendency of high stage of organizational commitment (Vandenberghe,
1996). As a result, membership in the business enterprise is based totally on continuance
commitment, the place employees are continuously calculating the risks of closing and leaving
(Meyer et al., 1997).There is fantastic relationship between employee’s organizational
commitment and boom opportunities. The businesses need to grant clear and handy career paths
to the employees, among the rewards may additionally include each monetary and non-monetary
benefit. Thus phenomenon of reciprocity happens to be furnished in actual sense. The
researchers recommended that in order to strengthen the commitment of employees with their
business enterprise the factors accountable for enhancing the dedication must be strengthened.

2.9.3 Work Environment

The working environment is also identified as any other aspect that affects organizational
commitment. One of the common working environmental conditions that may additionally affect
organizational dedication positively is partial possession of a company. Ownership of any kind
gives employees a sense of importance and they experience phase of the decision-making
manner (Klein, 1987). This thought of possession which consists of participation in decision-
making on new developments and adjustments in the working practices creates a sense of
belonging (Armstrong, 1995). A learn about conducted by Subramanian and Mia (2001) also
shows that managers who participate in finances decision- making have a tendency to have a
high stage of organizational commitment.

31
Another aspect inside the work environment that may also have an effect on organizational
dedication is work practices in relation to recruitment and selection, overall performance
appraisal, promotions and management fashion (Meyer et al., 1997). Obtaining pinnacle
management leader ship and commitment is vital for diversity programs of business enterprise to
succeed. One way to talk this commitment to all employees’ as properly as the exterior
surroundings is to include the organization’s attitudes toward diversity into the company mission
statement and into strategic plans and targets

Thomas S. (2002), Metcalfe and Dick (2001, p 412) in their study conclude that “the low level of
organizational commitment of constables should be attributed to inappropriate decision and
promotion which lead to the perpetuation of managerial style and conduct that has a negative
effect on organizational

Commitment of subordinates”. In all of the empirical studies, interestingly crew work sprit plays
the most influential function in predicting commitment. The extra satisfied personnel is with
work place the greater commitment to organization they will make. This can be understood as
affective orientation rather than profits orientation (normative commitment) and advantage
(continuance commitment) Tung N., Khuong N., and Phuong V. (2014).

2.9.4 Positive Relationships

The organization as a place of work environment is built up of working relationships; one of

which is the supervisory relationship. According to Randall et al.,(1990) “the supervisory
relationship can have an effect on organizational dedication either positively or negatively”. A
fantastic supervisory relationship depends on how work-related practices such as overall
performance management are being carried out in the enterprise (Randall et al., 1990). When
humans locate the supervisory relationship to be truthful in its practices, they tend to be more
dedicated to the company (Benkhoff, 1997).

Other work relationships, such as teams or groups, which exist in the workplace, can have an
effect on organizational commitment. Organizational individuals can exhibit commitment when
they are in a position to locate fee thru work relationships (Mathieu et al., 1990).

Brooke, Russell and Price (1988) country that “employee dedication and attachment to the
corporation can be improved thru efforts made to improve the companies social ecosystem and

32
sense of purpose”. In essence, when work relationships replicate mutual respect to individuals,
they are in a position to commit them to the organization.

2.9.5 Organizational Structure

Organizational structure performs an essential position in organizational commitment.

Bureaucratic structures have a tendency to have a terrible impact on organizational commitment.
Zeffanne (1994, p 991) indicates that "the elimination of bureaucratic boundaries and the advent
of greater flexible structure are greater likely to contribute to the enhancement of employee
dedication each in phrases of their loyalty and attachment to the organization". The management
can increase the degree of commitment via supplying the personnel with higher direction and
influence (Storey, 1995).

2.9.6 Management Style

It is stated by Zeffanne (1994, p1001) that "the answer to the query of employee commitment,
morale, loyalty and attachment may additionally consist no longer only in providing motivators,
but additionally to remove demotivates such as patterns of administration not applicable to their
context and to modern-day worker aspirations". Weldebrhan (2013) validated that to enhance the
commitment stage of the employees need to focus on motivational factors with fantastic and
considerable of fantastic commitment. A administration fashion that encourages employee
involvement can assist to satisfy employee's wish for empowerment and demand for a
commitment to organizational goals. Management is obligations consist of vision, establishing
structures setting the expectations, assessing performance, improving effectiveness,
encouragement for doing things, commitment of top management to wards safety, fitness and
environment is essential and this message ought to flow to all organizational stages and
dedication of personnel to ward organizations. R.K Jain (2010).

2.9.7 Personal Characteristics

Organizational dedication can also be affected by means of the employee's private traits such as
age, years of service and gender (Meyer et al., 1997). In the find out about of Muhammad I et al.,
(2012) concluded that organizational commitment is structured on gender, marital status, age,
education, experience, It potential that where their falls duty on personnel to be grew to be
dedicated with institution and perform duties as required there additionally fall accountability on
33
institutions to grant them blissful job preserving the view their demographics. Baron et al.,
(1990) state that "older employees, those with tenure or seniority, and those who are comfy with
their own ranges of work overall performance tend to report higher levels of organizational
commitment than others". This implies that older human beings are considered to be more
dedicated to the business enterprise than other age groups.

Another personal characteristic that may additionally affect organizational commitment is related
with gender (Meyer et al., 1997). However, it is argued that gender variations in commitment are
due to unique work characteristics and experiences that are linked to gender (Mathieu &
Zajac, 1990).Even though we have covered gender as a variable of organizational dedication in
all of our empirical studies; it regarded to be a huge predictor of employees’ organizational
commitment in only one of the studies. In order to measure gender. In all of the empirical
studies, female employees extra dedicated than male, which is greater or much less similar to the
prevailing gender share of employment in the Ethiopian context e.g., (Deribe, Hibret, &
Terefe, 2013). The end result is such that female employees are more committed to the enterprise
than their male counterparts. Consistent with Guest (1987) and Altinoz,Cakiroglu, and Cop
(2012), the conclusion is that employees’ gender matters as a ways as their commitment to their
using business enterprise is concerned. In normal Employees who are married, have longer
tenures, possess high educational qualification, and are older exhibit greater dedication than the
employees who are single, having smaller tenures with the organizations, decrease certified and
youthful in age respectively (Tekile & Solomon, 2016).

2.10. The outcomes of commitment

The importance of commitment was highlighted by Walton (1999) where he pointed that
performance can be extended if the organization takes a commitment strategy instead than a
control-oriented approach. Employees come to work to make a contribution and those employees
who are committed to deliver consumer satisfaction constitute a value asset in any company
(Payne, 2003).

In addition to this, the probability of having dedicated personnel will provide the organisation
assist in order to acquire the corporate goals, and so they can grow to be a sizable source of
competitive advantage due to their greater potential of innovation and flexibility. And this is a
need to for the organization if they desire to prosper or even to survive. This is also evident in the
nice motion with an emphasis on employee’s identification, excellence and the need for high

34
individual levels (Corbridge, 1998). Luchak (2007) state, that the feeling of dedication stem from
the employees’ firsthand ride with the employer when it helps its personnel treats them fairly and
enhances their feel of personal importance and competence with the aid of acting to value their
individual and collective negligible.

According to Meyer (1991), the outcomes of commitment are associated with the extraordinary
elements motivating employees to stay in the organization. It is viable to anticipate that the
personnel provide organizational commitment and persisted membership to the corporation in
return for pleasant consequences bobbing up from their organizational membership (Arnold,
1999). This is once in a while called a social exchange approach) or potential rationality.
Moreover, some research verifies that improvements in employee commitment amplify retention
and productivity. All the three forms of dedication are negatively correlated with withdrawal
cognition, turnover intention and turnover itself. Affective dedication looks to be the
commitment thing that produces a preferred outcome, such as lower turnover and greater
acceptance for a change for proper reasons, because of the emotional attachment, identification
and involvement in the organization.

Therefore, worker commitment has a magnitude influence on the agencies effectiveness and will
increase the overall affectivity and income as well as profits of the organization. It additionally
helps the business enterprise to gain its strategic desires and objectives, do away with or limit an
average turnover expenses due to the fact that prevalent employee turnover increases the cost of
education and development. So having a quite committed rent helps the company to increase its
earnings and earnings with the aid of reducing down instances and production interruption due to
excessive worker turnover.

2.11. Level of Commitment

Pandall (1987) [as cited in David, 2001] distinguishes three level of commitment. Most
descriptions relate to before stated definitions of commitment. Nevertheless, through using levels
we can see that employee commitment can occupy one of a kind stage of development

 High Level: is a sturdy trust in the companies’ desires and values

 Medium Level: is a willingness to exert big effort on behalf of the organization
 Low Level: is a strong desire to continue as an organization member

35
Such categorization may additionally be beneficial when negotiating with senior management as
to the preferred degree of commitment they require and is appropriate to the organization. It may
additionally serve as a scale by which personnel can gauge their self-perceptions of their
commitment. It appeared that even at low stage of commitment there can be advantageous
penalties for the man or woman and the organization. Low degrees can be practical for the
organization if greater turnover and absenteeism related with uncommitted people limit the
disruption which they might motive whilst at work. Low commitment degrees are regularly
associated with excessive labor turnovers, high absenteeism, bad overall performance and even
sabotage. However, such an argument may help to affirm the view that senior management
would desire employees to posse’s high level of affective commitment as opposed to similar
levels of continuous commitment (David 2001).

2.12. Employees’ Commitment to Organizations

Employee dedication has been a necessary factor to decide the success of an organization.
Employee commitment to an organization has received increasing demand as it aids the
corporations to hold expert team of workers and thereby enlarge in achievement, productivity,
and effectiveness. No business enterprise in the cutting-edge formidable world can execute at
peak levels unless each worker is committed to the objective of organization’ and performs as an
high quality group member. The employment of right employees is annoying but of even
extensive significance is the organizations’ capacity to create a dedicated group of workers (Gilo,
2018).

Employees have a complicated relationship with the organization in which they work. Many
constructs make contributions to this relationship, which encompass the employees’ commitment
to the organization. Employees’ dedication to the organization impacts commercial enterprise
outcomes, environment friendly operations, turnover rates, and productivity. Employees’
commitment to the organization has associated to the employee’s willingness to contribute to the
desires of the organization. There exist countless competing and complementary theories about
employees’ commitment to the company that have been researched (Timothy, 2018).

Definitions of dedication differ. For example, as an attitude, organizational dedication is most

frequently described as a strong desire to stay a member of a particular organization, in different
phrases loyalty to the company. According to this definition commitment refers to an individual's

36
psychological bond to the organization, as an advantageous attachment and identification
(Coopey and Hartley, 1991).

2.13. Source of Commitment

Sources of worker dedication may also vary from man or woman to person. Employee's initial
commitment to an organization is determined mostly through their man or woman traits (e.g.
personality and attitudes) and how nicely their early job experiences suit their expectations
(Hellriegel, 2001). Employee dedication continues to be influenced with the aid of job
experiences, with many of the equal factors that lead to job pleasure additionally contributing to
employee commitment or lack of commitment: pay, relationships with supervisors and
coworkers, working conditions, and opportunities for advancement. Over time, employee
commitment tends to come to be better due to the fact folks improve deeper ties with the agency
and their co-workers as they spend more time with them; seniority often brings blessings that
tend to strengthen greater positive attitudes; and opportunities in the job market might also
reduce with age, inflicting employees to grow to be extra strongly connected to their
contemporary job (Hellriegel, 2001). Employees nowadays are increasingly self-assured and
conscious of their value to employers. They would consciously select to work for those
corporations that meet their workplace expectations. Organizations that reveal their dedication to
personnel will appeal to and keep their preferred group of workers and will eventually win the
combat for the group of workers share (Madigan, 1999). While money truly plays a phase in
building worker loyalty, it’s in reality now not ample in today’s work environment.
Compensation is important, however most personnel think about it a proper and change for the
work one does. People desire to feel that what they do, make a distinction and money on my own
does no longer do this; private focus does (Nelson, 1999).

2.14 Models of Organizational Commitment

Based on the multidimensional nature of organizational commitment, different theories describe different
types of organizational commitment models large studies used for organizational commitment three
component model proposed by Meyer and Allen (1991). The three components are:

37
2.14.1 Affective Organizational Commitment
Affective commitment refers to employees’ adoption of the values, attitudes and beliefs of the
organization (Meyer, Stanley, Herscovitch & Topolnytsky, and 2002:21). The commitment to an
organization’s values infers the preparedness of subordinates to exert extra effort to achieve the
goals of the organization. This means employees typically accept organizational goals and values
as their own. This component of commitment involves value equivalence between the employees
and the organization and is often consequent upon the compatibility between employee goals and
values and organizational objectives (Suliman & Iles, 2000:408).

According to Meyer and Allen (1997), Affective organizational commitment refers to an

employee’s affection to, recognition with, and participation in the organization. An employee
who has a strong affective organizational commitment to an organization stays with the
organization because he or she needs to continue working in the organization. Members who are
committed to an affective level stay with the organization because they view their personal
employment relationship as congruent to the goals and values of the organization (Beck and
Wilson, 2000). Meyer and Allen (1997) found that the best forecaster of affective organizational
commitment was work experience. Employees whose work knowledge is steady with their
expectations and whose basic needs within the organization are satisfied have a stronger level of
affective commitment to the organization. Employees with strong affective commitment stay
with the organization because they have no wish to leave.

Meyer (2001) reported that affective commitment has been found to associate with a wide range
of proceeds, absenteeism, job performance, and organizational nationality behavior. The cost of
affective organizational commitment are lower earnings and turnover intentions, better on- the
job behavior, and better employee health and wellbeing (Angel and Lawson,1994). Meyer and
Allen (1997) further indicate that affective commitment is influenced by factors such as job
challenge, role clarity, and goal clarity, and goal difficulty, receptiveness by management, peer
cohesion, equity, personal importance, feedback, participation, and dependability.

2.14.2 Continuance Organizational Commitment

Continuance commitment is referred to as an employee’s psychological bond to an organization

which is premised on the perceived costs and risks related to leaving the organization (Curtis &
Wright, 2001:60). The costs of leaving the organization may include time spent in the
organization, organization-specific skills, monetary rewards and loss of attractive benefits
38
offered in the organization, giving up seniority-based privileges, disrupting family life or lack of
alternative employment opportunities outside the organization (Powell & Meyer, 2004:165).

Continuance organizational commitment refers to the awareness of cost linked with the departure
from the organizations (Meyer and Allen, 1997). Employees with a strong continuance
organizational commitment know that leaving the organization may be harmful to them fiscally
due to the lack of employment option and a loss of savings. Kanter (1968) supports this
definition and states that it is the profit associated with continued participation and a cost
associated with leaving the organization.

Meyer and Allen (1991) further state that employees whose primary link to the organization is
based on continuance commitment remain because they need to do so. Meyer et al. (1990) also
maintain that accrued investments and poor employment alternatives tend to force individual to
maintain their line of action and are responsible for these individuals being committed because
they need to. Individuals stay in the organization because of the investments they accumulate due
to time spent in the organization, not because they want to.

2.14.3 Normative Organizational Commitment

Normative organizational commitment reflects an emotion of obligation to carry on employment

(Meyer and Allen, 1997). An employee with a strong normative organizational commitment feels
he or she has a moral obligation to stay in the organization. Internalized normative beliefs of
duty and obligation make individuals obliged to sustain membership in the organization (Meyer
and Allen, 1990). The normative component is viewed as the commitment employees consider
morally right to stay in the company, regardless of how much status enhancement or satisfaction
the firm gives him or her over the years (Marsh and Mannari, 1977).

According to Schneider (2003), normative organizational commitment is the ethical obligation

the employee develops after the organization has spent on him or her. He argued that when an
employee starts to sense that the organization has spent either too much time or money
developing and training him or her, such an employee might feel a compulsion to stay with the
organization. Normative organizational commitment is most likely when individuals find it
difficult to give return the organizations investment in them. Moreover, Meyer and Allen (1997)
use the tridimensional model to conceptualize organizational commitment in three dimensions
namely affective, continuance, and normative commitments. Allen and Meyer (1996) urged

39
researchers to investigate the dimensionality of organizational commitment across cultures to
discern if multidimensional conceptualizations developed in the US are applicable to other
cultures or not.

2.15 Organizational Values

Organizational values can be defined as shared mental representations (Tindale, Smith, Thomas,
Filkins, & Sheffey, 1996) about the principles that guide organizational practices and standards
(Katz & Kahn, 1974). These are shared by organizational members who live in the same
environment for a relatively long period of time (Schneider & Barbera, 2014); are hierarchically
organized (Tamayo et al., 2000) and transcend practices or specific standards. Organizational
values are the core element of the organizational culture (Schneider & Barbera, 2014; Tamayo et
al., 2000). These are at the conscious level and are more general than the organizational practices
(Schein, 2010). For this reason, here we chose to work with the values in order to allow more
precise delimitation of the phenomena. Criticisms of studies on organizational values have been
raised. (Stackman etal, 2000) state that it is difficult to define which actors must have their
personal values accessed and how these values can be mathematically aggregated to compose the
organizational values. To move away from this critique, the perspective adopted in this study is
that organizational values are shared mental representations (Tindale et al., 1996) which emerge
from the individual perception to form an aggregate perception of what is important to the
organization. Therefore, they do not constitute individual perceptions of organizational values or
the individual values‟ mean. This solution equates the question of who should be accessed in an
organizational value survey. Finally, recent developments in multilevel analysis, especially
regarding emergent processes in organizations (Chan, 2014) solve the mathematical issue raised
by other researchers.

Organizations cultural identity is created by interaction of three levels that are basic underlying
assumptions or beliefs, values and artifacts (Stevenson, 1995) Organizational culture can be also
characterized as ideologies endorsed by the organization and be represented by observable
behavioral norms associated to the work environment. Additionally the social form of
organizations is maintained by organizational culture, which is quite stable and somewhat
resistant to change. (Kwantes et al, 2007)Referring to (Michailova & Minbaeva, 2012)
organizational values are essential component of organizational culture. Top managers articulate,

40
nurture and utilize values to shape certain types of individual behavior and to achieve desired
organizational goals, such as intra-organizational knowledge sharing.

Organizational values are beliefs held by an individual or a group regarding the means and the
ends that management must identify in the running of a company, in establishing objectives or in
choosing the most preferable business activities from wide range of alternatives. (Michailova &
Minbaeva, 2012); (Aggrawal & Mohendra, 2010). According to (Kwantes et al, 2007)
organizational values can be described as taken-for-granted assumptions and ideologies at its
core. Additionally organizational values can be considered of being ideas about standards of
actions that organizational members should exhibit in the endeavor to achieve organizational
objectives within organizational community (Thomas, 2013). (Bourne & Jenkins, 2013) Identify
that organizational values have a central place in organizational phenomena such as identity,
culture, person organization fit and socialization. They also shape the ethical stance of an
organization, employee commitment and relationships with external constituents. Organizational
values influence critical processes and characteristics of organizations including exegesis of
strategic issues, strategic choice and strategic change and managerial decision-making. Strong
organizational values are both intensely held and widely shared. (Chatman, 1991). Furthermore
(Bourne & Jenkins, 2013) identify organizational values to be closely connected to other
organizational phenomena, specifically culture and institutionalism. On the other hand
organizational values exemplify those general values that direct organizational members in their
selection or evaluation of behavior.

2.16 Leadership Style and Commitment

Leadership style is the set of attitudes, attributes, and skills of the managers that is formed on the
basis of the value system, trust in the employees, leadership tendencies, and sense of security in
the ambiguous situations. Generally speaking, leadership style determines the atmosphere,
culture, and strategies of the organization (Rowold, 2009).

Leadership is one of the most broadly discussed topics by the researchers from all over the
world. (De Jong, Hartog, D. N., 2007) described leadership as a process to influence
subordinates for attaining desired set of objectives. Leaders assist to encourage, stimulate,
support, and identify their followers in order to get key performance outcome. Earlier researches
on leadership have recognized different types of leadership styles which leaders adopt in
managing organizations since leader’s ability to inspire, motivate and produce dedication to
41
common goal is crucial for organizational outcomes (Basu, R., & Green, S. G., 1997)Previous
studies relate different leadership styles to the employees‟ innovation process, many of them
paid attention for participative or mutual leadership styles (Pelz, D. C., & Andrews, F. M.,
1966)and suggested a list of detailed behaviors that the leaders should permit in order to initiate
creativity among employees (Amabile, 1998)A number of leadership theories have been
proposed but the scholars mostly considered assumption of Leader-Member Exchange (LMX)
which is linked with transformational leadership style and innovative behavior of the employees
( (Basu, R., & Green, S. G., 1997); (Jung, 2001)LMX theory proposed that transformational
leaders keep close associations with high level and lower level linked with their subordinates.

Bass and Avolio's model (Bass, & Avolio, 2000)in which the dimensions of the leadership style
are classified into three groups, mainly the transformational leadership, transactional leadership,
and non-intervening leadership.

Transformational leadership: is the performance of a leader who is going to motivate his/ her
followers by idealized influence (Charisma), inspiring motivation, intellectual stimulation, and
individual consideration in order to push them in a direction beyond their own transient interests
(Bass, 2008).

The objective of the transactional leadership goes beyond meeting the transient needs.
Transactional leader employs his/ her optimism, intellectual charisma, and many other personal
skills to promote the goals of the others, and runs the persons and organizations toward a higher
performance (Skakon, 2010).At the following part we will refer to some dimensions of the
transformational leadership.

Charisma (idealized influence)

This dimension implies the idealized influence of the leaders who act as the real model of act so
that their act leads to the manifestation of the desirable behaviors (Nielsen& Cleal,
2011).Charismatic leadership is a part of the transformational leadership and includes the
idealized characteristics and idealized behavior. The most prominent idealized characteristics of
a leader are to inspire the sense of honor and pride in the followers and to participate in their
activities in order to gain the interests of the group (Shoghi.B & Shoghi.A, 2012).

Inspirational motivation Inspirational motivation is one of the capabilities of the

transformational leader that offers a character of the leader that that inspirationally stimulate the

42
followers to have a suitable behavior. This factor describes the leaders who make the followers
participate in illustrating the future vision, and accordingly strengthen their commitment and
who encourage the followers to come along the mentioned process (Moriano& Molero,
2011)Thus the transformational leaders have to act in a specific manner and encourage and
stimulate their followers. This specific behavior implicitly includes to show their enthusiasm and
optimism and to encourage the team work (Shoghi.B & Shoghi.A, 2012).

Intellectual stimulation

As a capability of the transformational leaders, intellectual stimulation plays an important role in

the process of transformation of the organization. The transformational leaders try to encourage
their followers to be innovative and creative. These leaders encourage the change of thinking
methods of the problem solving and always use analogies and metaphors in order to increase the
knowledge of their followers (Bass, 2008), thus they may use the new and creative ideas for
solving the problems. Bass believes that the intellectual stimulation is a main stimulus in the
followers to think to their beliefs, their values, their problems, and solving the problems (Bass, &
Avolio, 2000).

Individual Considerations

Paying attention to the individual differences of the followers, communicating with each of
them, and stimulating them by assigning the responsibilities to them for the sake of their learning
experiences are the main subjects of the individual considerations. Transformational leaders help
their followers activate their own potential talents in order to increase their accountability in the
organization. On other words, the leaders attempt to develop the potential abilities of the
individuals (Horwitz, 2008). Individual consideration is a key element in the relationships
between the transformational leader and the followers. Transformational leaders may use the
strategy of assignment as a tool for the growth of their followers relying on the personal
challenges (Nurthhouse, 2001).

Transactional leadership: is a style of leadership based on the transaction between the leader
and the follower so that the mutual interests of the both parties are met. This leadership style
includes some dimensions such as the contingent rewards and management –by- exception
(active- passive) (Shoghi.B & Shoghi.A, 2012).At the following part we will refer to these
factors of the transformational leadership.

43
Contingent reward Contingent rewards refer to the process of the transaction between the
leaders and followers in which, the followers' attempts in transacted against some specific
rewards. In this type of the leadership, the leader tries to gain the agreement of the followers
about what is needed to do and what is granted for doing that things (Bass, 2008).

Management -by- exception (active-passive) Management -by- exception refers to those

behaviors of the leaders that implies the corrective criticisms, negative feedbacks, negative
reinforcement, and predicting the failures and problem solving. Management-by-exception
emerges in two forms: passive and active. In active form of management -by- exception,
transactional leaders supervise the tasks of their subordinates and make sure of the completion of
those tasks. The leader in this form, do all necessary and needed things to prevent any deviation
from the standards and findings the bugs and mistakes. But the passive leaders in this form of
management -by- exception apply some due punishments just if the standards are not met; that is,
they passively wait for the mistakes of their followers so that attract their attention to the
negative feedbacks or official reproach before dealing with the corrective activities. Although
this latter form of the management has been proved to be ineffective but some managers still
apply it to supervise over a large number of the subordinates who report him directly.

This process is less effective than the contingent awards and the components of the
transformational leadership (Nurthhouse, 2001).

(Amabile, 1998), define creativity as the “production of novel and useful ideas”. Employees play
a significant role in the innovation, effectiveness and survival of the organization. Creative
employees are result oriented and they put forward meaningful ideas relating to procedures,
services and products of the organization. The required level of creativity and importance of
creativity differ in different organizations. This difference is due to the positions and
responsibilities of the managers or employees; however, most managers accept the possibility of
employee to be creative at different level.

44
2.17 Empirical Review

Organizational culture and organizational commitment are the most extensively researched about
concepts in management studies, yet the two concepts still remain elusive as ever (Shoaib,
Zainab, Maqsood & Sana, (2013). Not only that, as depicted on the problem statement of this
study , the effect of different organizational culture traits on organizational commitment
investigated and conclude by different researcher is inconsistent.

A state of involvement implies a positive and relatively complete state of engagement of core
aspects of the self in the job, whereas a state of alienation implies a loss of individuality and
separation of the self from the work environment (Kanungo, 1982). The key success factors for
organization now a day is employee empowerment, teamwork, and employee development.
These enable managers and employees more committed to work and feel that they own a part of
the organization. According to Nongo and Ikyanyon, (2012) found a significant and positive
relationship between involvement and commitment. Therefore, employees are committed to their
organizations if they are involved in decision making.

A study conducted by Nongo and Ikyanyon (2012) found a significant and positive relationship
between involvement and commitment. This means that employees are committed to their
organizations when they are involved in decision making. The key success factors for
organizations today are employee empowerment, teamwork, and employee development. These
enable managers and employees more committed to work and feel that they own a piece of the
organization. People at all levels feel that they have at least some inputs into decisions that will
affect their work and that their work is directly connected to the goals of the organization.

On the other hand, (Singh and Verghese, 2015) investigate the impact of employee
empowerment; a process in which power is transferred from the managers to their subordinates,
on organizational commitment. Similarly (Asghar, Mojtaba and Sadeghi, 2015) Involvement is
one of the most important dimensions of organizational culture and it has great role in fulfillment
of organizational commitment of teachers.
Nongo and Ikyanyon (2012) found out that there was no significant relationship between
consistency and commitment. As much as organizations try to maintain a strong culture by being
highly consistent, well-coordinated, and well integrated, this does not impact significantly on the
level of employee commitment. In other words, employees prefer to be given the freedom to do
45
the job rather than being compelled to do it in a rigid manner. Hence, the researcher concludes
that the key success factor for organizations today is flexibility rather than consistency.To the
contrary, research finding by Asghar, Mojtaba and Sadeghi (2015), Ghader and Afkhami (2014)
revealed that there is positive relationship between consistency and organizational commitment
in which coordination and integration, agreement and fundamental values as a component of
consistency increase employee commitment to provide efficient and effective work. Similar,
Hakim (2015) asserted that an indicator of the most powerful in shaping the organizational
culture variable is stability (consistency). It means that, cultural values that received the most
attention in the activities of the organization, which emphasizes the maintenance of the status
quo as a contrast to the growth will have positive effect on organizational commitment.
Organizations should support innovation and teamwork among employees. This will enable
employees adapt in an environment of change, thereby improving their level of commitment.
(Nongo & Ikyanyon, 2012). According to (Ghader & Afkhami, 2014), Employees exhibited is
the highest organizational commitment when they perceived higher learning culture (adaptability
traits) which includes culture of creating, acquiring, and transferring knowledge and also quickly
react to current trends, and anticipate future changes.
Other study conducted by (Yadollah Hamid, etal, 2017) on Relationship between organizational
culture and commitment of employees in health care centers in west of Iran. The researcher was
used to study four organizational culture variables (involvement, consistency adaptability and
mission). There was a significant relationship between adaptability and involvement on
organizational commitment. There was also a direct and significant relationship between
consistency and organizational commitment. In addition a research which conducted by (Meseret
Getachew, 2019) on organizational culture on employees‟ commitment in the case of Ethiopian
Airline.Another study conducted by (Ezekiel Saasongu Nongo & Darius Ngutor Ikyanyon, 2012)
on organizational culture on employees‟ commitment. The researcher was used to study four
organizational culture variables (involvement, consistency adaptability and mission). The result
indicates a significant relationship between involvement and commitment, adaptability and
commitment but the relationship between consistency and commitment was not significant.

46
2.18. Conceptual Framework

The conceptual framework of this study consists of independent variable organizational culture
and the dependent variables of employees‟ commitment. Therefore, Denison model of
organizational culture is a base to select the cultural traits emphasized under this study and has
been modified to see the effect of the cultural traits on employee commitment .The modified
framework is shown below:

Figure 2.1: Conceptual framework organizational culture

47
 CHAPTER THREE

3. Research Design and Methodology

This chapter offers important points of the research design: source of data, method and
equipment of data collection, target population, sample size and sampling approach, and method
of statistical analysis. Using questionnaires is present and analyzed in this chapter, and the
interpretation of the results makes use of SPSS version 23 software.

3.1 Research Design

The study used to be dominated by quantitative methods; however, to some extent, qualitative
information was used to help the quantitative research findings (i.e., a mixed research approach).
This blended method of research is more inclined to quantitative research. The researcher tried to
give an explanation for the relationship between worker dedication and organizational culture
factors primarily based on the end result that was discovered by means of regression and guided
by the questionnaire. Because of this, the research diagram was once explanatory and descriptive
in nature.

3.2 Population and Sampling Techniques

Ethiotelecom headquarters has 264 employees. The researcher once used simple random
sampling techniques. Under this sampling design, every object in the universe has an equal
chance of inclusion in the sample. The intent of administering this technique is in accordance
with (George, 2003). A simple random sampling approach involves selecting randomly from a
listing of the populace a sampling frame which contains the required wide variety of topics for
the sample. The components derived by Yamane, 1967, were used to determine the sampling
size in the study.

N 264
=159
1+ N (e) 2 1+ 264(0.05) 2

Where n =sample size, N =population size, e =error term (5%), 1= designates the chance of
tournament occurring.

48
3.3 Method of data collection

A structured questionnaire was used to get the primary data from Ethio-Telecom workers, and as
a secondary source of facts, put up journal articles, books, websites, and others as discovered
gorgeous for the study.

3.4 Source and Instrument of Data Collection

The study adopted a structured questionnaire, which consists of common information and a
Likert scale, i.e., to measure respondents' mindset by way of asking the extent to which they
agree or disagree with a unique question or statement. The general statistics consist of age,
gender, years of riding and academic background. The study uses a five-factor scale from (1)
strongly disagrees to (5) strongly agree.

3.5 Validity and Reliability

"Validity is defined as the extent to which statistical collection approaches or techniques

accurately measure what they are intended to measure. Data is collected from reliable sources,
i.e., respondents who have experience in Ethiotelecom. Furthermore, the study observes via
the guide and other colleagues to determine its clarity. The reliability of the research
instrument (structured questionnaire) was additionally measured by means of Cronbach’s
alpha. In order to ensure the validity of this study and the statistical collection instrument, a
pilot survey was conducted on randomly selected 10 employees via the use of the
questionnaire developed for this research in order to make certain that the questionnaire is
fabulous and statements are generally understandable. In addition, appropriate detection
through a guide was also taken to ensure the validity of the instruments. Finally, the extended
versions of the questionnaires have been printed and distributed.

According to (Neuman, 2012), reliability is the degree of consistency or dependability of an

instrument, which includes stability, internal consistency, Cronbach's alpha is the most
frequent measure of interior consistency or reliability. According to George and Mallery
(2003), the value of the Cronbach alpha coefficient must be greater than 0.7, which is an
acceptable degree of inner consistency or reliability. (George and Mallery, 2003) provide the
following rules of thumb: .9 Excellent, .8 Good, .7 Acceptable,.6 Doubtful,.5 Poor, and.5
Unacceptable. To check the reliability of the items within every concept, the Cronbachs alpha
coefficient was calculated for each variable.
49
 Table: 3.1 Reliability Test for organizational culture and employees’ commitment
Cronbach's Alpha N of
Items
Involvement .734 9
Consistency .801 8
Adaptability .796 7
employees’ commitment .757 9
Source Own Survey, 2022

3.6 Method of data analysis

The researcher has employed a descriptive facts analysis approach to analyze the accumulated
facts and statistics. They are analyzed by means of SPSS. The accrued information is absolutely
presented by way of the use of tables, which are expressed in the form of frequency, percentage,
mean, and standard deviation. The Pearson's Correlation is used to observe the relationship
between employee commitment and elements of organizational culture affecting it. Moreover,
more than one regression has been used to become aware of the most essential things that
contribute to employee dedication or to find out which variables have the best impact on
employee commitment. The researcher described and analyzed the findings of the study
genuinely.

3.7 Ethical Considerations

Research, as a scientific process and activity, has got its own basic ethical principles that
shouldn’t be compromised at all levels. For instance, any source that is quoted and used as an
essential part of the study should be cited. That means acknowledging the authors of books and
articles is necessary. Moreover, the data will be gathered from the appropriate and relevant
sources. Therefore, with respect to the current study, the researcher is respected and compliant
with existing ethical principles to make the research credible and acceptable by the academic
communities and users of the result. The confidentiality of participants (managers’ supervisors
and staff) is maintained in that their names, addresses, signatures, and roles in the company are
not appear in and filled in the questionnaire.

50
 CHAPTER FOUR

DATA ANALYSIS, DISCUSSION, AND INTRERPRITATION

1. Introduction

This chapter consists of the evaluation of descriptive statistics, correlation analysis, and a couple
of linear regressions. In this chapter, the gathered facts were analyzed and interpreted. The
analyzed and interpreted statistics were introduced and discussed in detail.

4.1 Rate of Response

The researcher distributed a total of 159 questionnaires. From these, 143 (89.9%) questionnaires
were collected effectively. The researcher interviewed the office head to get additional
information in order to support the questionnaire response. The last 16 (10.1%) were not
amassed for different reasons.

Table: 4.1 Response Rate

Response Respondents Percentage

Returned 143 89.9%
Unreturned 16 10.1%
Missing Response 0 0
Total Distributed 159 100%
Source: Own Survey, 2022

The researcher distributed a total of 159 questionnaires. From these, 143 (89.9%) questionnaires
were collected effectively. The researcher interviewed the office head to get additional
information in order to support the questionnaire response. The last 16 (10.1%) were not
amassed for different reasons.

51
Table 4.2: Respondents Profile

Variable Category Frequency Percent Valid

Percent
Sex of respondents Male 84 58.7 58.7
Female 59 41.3 41.3
Total 143 100.0 100.0
Age of respondents 18-30 19 13.29 13.29
31-40 59 41.26 41.26
41-50 39 27.27 27.27
51 and above 26 18.18 18.18
Total 143 100.0 100.0
Diploma and below 87 60.8 60.8
Bachelor degree 48 33.6 33.6
Educational label of Master degree 7 4.9 4.9
Phd 1 .7 .7
respondents Total 143 100.0 100.0
Single 13 9.1 9.1
Married 121 84.6 84.6
Marital status
Divorced 8 5.6 5.6
Widowed 1 .7 .7
Total 143 100.0 100.0
Work Experience Less than 2 years 4 2.80 2.8
2-7 years 57 39.86 39.86
8-14 years 46 32.17 32.17
Above 15 years 36 25.17 25.2
Total 143 100.0 100.0
Management 12 8.39 8.39
Non-management 131 91.61 91.61
Total 143 100.0 100.0
Source: Own Survey, 2022

4.2.1 Respondent Gender

As shown in table 4.2 above, the total number of respondents is 143. As a result, 84 (58.7%) of
complete respondents had been males and the remaining 59 (41.3%) of respondents had been
females. As the statistics indicate, the majority of the respondents are male employees.

4.2.2 Age of respondents

Table 4.2 suggests that the majority of the respondents fall between the age ranges of 31–40
years old, which consists of 59 (41.26%) respondents. followed by the age range of 41–50 years,
which consists of 39 (27.27%) respondents; between the age range of fifty-one and above, which
consists of 26 (18.18%); finally, 19 (13.29%) respondents have been between the age range of

52
18–30 years. The company has a person workforce and assists the agency in putting the
organization's goals into action by sharing information with new employees.

4.2.3 Educational level of respondents

According to the above table, the educational level of respondents was 87 (60.8%) of
respondents with a diploma or less, 48 (33.6%) of respondents with a bachelor diploma, 7 (4.9%)
of respondents with a master's degree, and 1 (.7%) of respondents with a PhD. This implies that
the majority of the respondents are diploma and below. Next to that, the first diploma is the
second majority of the respondents. This may also imply that the corporation will be focused on
capacity building to have the required knowledge and skills to acquire organizational dreams and
objectives.

4.2.4 Marital Status of Respondents

As shown by the marital popularity of the respondents, 121 (85%) have been married while 13
(9%) were single, eight (5%) divorced, and the remaining one (1%) had been widowed.

4.2.5 Work experience of respondents

With regard to the respondent’s work experience, 57 (39.86%) of respondents served from 2–7
years, 46 (32.17%) of respondents served from 8–14 years, 36 (25.17) of respondents served 15
years, and the last four (2.80%) of the respondents served for less than two years. This implies
that the majority of the respondents is well skilled and can take as an asset to the organization.
As a result of the agency's long years of experience, there is a particularly low worker turnover,
which reduces the cost of hiring new employees and saves time as the agency can achieve its
objectives.

4.2.6 Division of employees

Finally, the majority of the respondents (131, or 91.61%) were non-manager personnel, and the
remaining 12 (8.39%) had been higher and center-level managers.

4.3 Descriptive Analysis

In this section, to verify an organizational culture model that is classified into three
organizational tradition features, which are involvement, consistency, and adaptability. The
respondents had been asked to factor out their level of agreement or disagreement with exclusive
53
statements, so that the outcomes are summarized with the aid of using the adverse statistical
output of the mean and preferred deviation. According to Al-Sayyad, Rabea and Samrah (2006),
the imply score of 1 up to 1.8 is considered very low, the suggest rating from 1.8 up to 2.6 is
considered low, the imply rating 2.6 up to 3.4 is viewed as moderate, the imply score 3.4 up to
4.2 is considered high, and the imply rating 4.2 up to 5.00 is viewed as very high. The lower the
mean, the more the respondents disagree with the statements. The greater the mean, the more the
respondents agree with the statement. On the other hand, general deviation indicates the
variability of an observed response from a single sample. Marczyk, Dematteo and Festinger
(2005).   A 5 – point Likert scale was once assumed to answer all statements.

Table 4.3 Weighted mean results for Likert scale

Response Mean score

Very high Score 4.2 up to 5.00
High 3.4 up to 4.2
Moderate 2.6 up to 3.4
Low 1.8 up to 2.6
Very low 1up to 1.8

Source: Al-Sayyad, Rabea and Samrah (2006)

Table 4.4: Descriptive statistics analysis of involvement

S.NO INVOLVEMENT N Mean Std.

Deviation
1 Your enterprise has a vogue of delegation for its 143 3.13 1.188
employees.
2 Employees in your business enterprise are participated in 143 3.10 1.044
their Organizational decision
3 Every employee believes that empowerment can have a 143 3.03 1.512
high-quality effect on his or her performance.
nce. 3.06 1.191
4 Employees‟ group work throughout exclusive departments 143
of the enterprise is prompted with appropriate crew spirit.

5 Your agency believes that cooperation of personnel play 143 3.14 1.196
an necessary position for the success of the organization.

6 143 2.99 1.275

In your organization, teamwork is used to get high quality
and efficient work done, as a substitute than hierarchy

54
 7 The company has a continuous capacity improvement to 143 2.51 1.255
decorate the skills of employees
8 143 2.64 1.253
The investment on capacities of personnel is viewed as
integral problem of the organization
9 Capacity building of employees is implemented in special 143 2.45 1.191
period of time for every employee.
Aggregate mean 2.89 1.234
Source: Own Survey, 2022

As indicated on the above Table 4.4, involvement way of life trait with its nine question Based
on descriptive statistics, the nine statements are computed, and the mean indicates moderate level
Q1which (Mean = 3.13 SD = 1.188). For this index, the declaration that describes whether most
employees’ in Ethio-Telecom are moderate involved in their work had moderate mean rating
value (Mean = 3.13)

Q2. Which (Mean = 3.10 SD = 1.044). For this index, the assertion that describes whether or not
most employees’’ in Ethio-Telecom are reasonable worried in their work had average imply
rating value (Mean = 3.10) Q3. From this assertion (Mean = 3.03 SD= 1.512) this point out that
the Ethio-Telecom employees are moderate participated in their work had suggest (mean =3.03).
Q4. Which mean ((mean =3.06, SD 1.191) according to the respondent, they are appreciably
involved in their work

Generally the overall end result of mean score of involvement culture trait had excessive score
cost (Mean = 2.89, SD = 1.234) and this end result indicates that Ethio-Telecom moderate
practicing Involvement culture.

55
Table 4.5 Descriptive statistics analysis of consistency

S.NO CONSISTENCY N Mean Std.

Deviation
1 In your organization, managers and employees are 143 2.94 1.112
deeply is aware of the core values of the organization.
2 The organizational core price is an ethical code that 143 3.46 1.105
publications managers & employees behavior.
3 Ignoring the core values of the business enterprise will 143 3.55 1.260
lead to dissatisfaction of believers and customers.
4 In your organization, it is convenient to reach an 143 3.30 1.101
agreement, even if the problems are extra difficult
5 There is a clear perception about the proper and 143 3.33 1.053
incorrect approaches to operate duties in your
organization.
6 It is easy to coordinate and integrate across different 143 3.31 1.127

organization
7 In your organization, there is a nice coordination and 143 3.04 1.144
integration with believers and customers
8 In your enterprise personnel in distinctive branch 143 3.37 .976
shared a common values and attitudes.
.
Aggregate mean 3.29 1.110

Source: Own Survey, 2022

Accordingly, the above table, consistency culture, out of the whole 143 respondents, returned the
first question on the agreement item with the highest mean rating of (mean = 2.94) and a
standard deviation of (1.112) implied that the respondents agree moderate.

Based on the second assertion, mean rating (mean = 3.46) and (Std. dev. 1.105), implied the
respondents' response was high and The overall suggestive rating of consistency had a moderate
mean score value (mean = 3.29 and SD = 1.110) for the nine item dimensions of consistency
lifestyle.

56
Table 4.6: Descriptive Analysis of Adaptability

S.NO ADAPTABILITY N Mean Std.

Deviation
1 The lifestyle of your corporation is open for alternate 143 2.26 1.226
and the leaders/employees are adapting quickly, and
open to new ideas
2 Managers and Employees of your company supply 143 2.54 1.179
greater attention to customers‟ wishes and wants.
3 Customers’ remark and suggestion are usually acceptable 143 3.24 1.206
and lead to a positive changes for your organization.
4 Innovations and creativities are greater inspired in your 143 2.99 1.154
organization.

5 In your organization, the new leaders analyze from 143 2.90 1.370
that of the pervious.
6 In your organization, failure taken as an chance for 143 2.90 1.122
studying and improvement
7 In your organization, failure taken as an opportunity 143 2.85 1.094
for learning and improvement.
Aggregate mean 2.81 1.193
Source: Own Survey, 2022

As seen from Table 4.6 above, the descriptive statistics of the adaptability way of life trait with
its seven items had a moderate mean rating value. The Adaptability tradition out of the whole
143 respondents who returned the first query on the agreement item suggested a score (mean =
2.26) and a standard deviation of (1.226) implied that the respondents were reasonable and the
mean rating of adaptability was higher (2.81) and a standard deviation of (1.193) Furthermore,
the majority of respondents believed that Ethio-Telecom is translating the demand of a business
environment as well as the demand of an internal customer. There will be a significant impact on
employee commitment to Ethio-Telecom.

57
Table: 4.7 Descriptive Analyses of Employees

S.NO Employees’ Commitment N Mean Std.

Deviation
1 Your time administration based on organizational day by day 143 3.11 1.193
working hours is nearly best.
2 You value the organization’s code of ethics. 143 2.65 1.140
3 You feel that this enterprise appears like your personal 143 3.52 1.266
4 You are an example of loyalty to the organization. 143 3.30 1.055
5 The difference in revenue cannot make you determine to 143 2.91 1.221
leave the job
6 You successfully and effectively use the organization’s assets 143 2.94 1.260

7 You locate the way to do a correct job even in adverse conditions . 143 2.62 1.099

8 You are accomplish in time and manners the things to do that are 143 2.72 1.340
assigned to you
are assigned to you provide an accountable or risky work
9 If your organization 143 2.48 1.186
for you then you will accept it
Aggregate mean 2.92 1.196
Source: Own Survey, 2022

Source: Research Data, 2020

Table 4.8 Summary of total mean and standard deviations for organizational
culture and employees’ commitment
Organization Culture N Mean Std Deviation
model 143 3.29 1.110

Involvement 143 2.89 1.234

Adaptability 143 2.81 1.193

Employees’ Commitment 143 2.92 1.196

Source: Own Survey, 2022

The above table 4.8, the result of descriptive statistics, shows the total means and widespread
deviation of every organizational way of life model. The organizational tradition mannequin
consistency had a total mean of 3.29 with a standard deviation of 1.110, the involvement
tradition model had a total mean of 2.890 with a standard deviation of 1.234, and the adaptability
way of life model had a total mean of 2.810 with a standard deviation of 1.193. According to the
58
findings, all three elements of organizational lifestyle models and personnel dedication have a
moderate level of agreement.

4.4. Correlation Analysis Between Organizational Culture and Employees’

Commitment

Correlation analysis measures or indicates the linear relationship and measures the strength of
the association between two variables. According to Field (2009), the correlation coefficient is a
very useful means to summarize the relationship between two variables with a single number that
falls between-1 and +1. So, a perfect positive relationship (r = + 1.00) indicates a direct
relationship, and an r = 1.00 indicates a perfect negative relationship. The larger the implied
value, the stronger the relationship. 0 indicates that there is no linear relationship between the
variables (Field, 2009). The values for interpretation according to statistics are (Marczyk,
Dematteo & Festinger, 2005).

 .01 to .30,-.o1 to -.30……………………………………………. Low correlation

 .30 to .70, -.30 to -.70 ……………………………………... Moderate correlations
 .70 to .90, -.70 to -.90 ………………………………………… Strong correlations
 .90 to 1.00, -.90 to -1.00…………………………………. Very strong correlations

Table 4.9 Correlation Between Organizational Culture Model and Employees Commitment

Correlations EMPLOYEES COMMITMENT

INVOLVMENT Pearson Correlation .379**
Sig. (2-tailed) .000
N 143
CONSISTENCY Pearson Correlation .586**
Sig. (2-tailed) .000
N 143
ADAPTABILITY Pearson Correlation .732**
Sig. (2-tailed) .000
N 143
ignificantatatthe
**. Correlation is significant the0.01
0.01level
level(2-tailed).
Source: Own Survey, 2022

59
The above table 4.9 shows the relationship between organizational way of life and employees'
commitment. A Pearson correlation coefficient outcome indicates that organizational culture
(adaptability, consistency, and involvement) had a superb correlation with employee
commitment with (r =732, r = 0.586, and r = 0.379) respectively. The findings indicate that there
is a large relationship between each organizational tradition and employee dedication (sig. ; 0.01
two-tailed). As a result, adaptability has a very strong correlation with employees' dedication (r
=.732). Consistency and involvement in organizational way of life, on the other hand, had a
moderate correlation with employees' dedication (r =.586 and r =.379).

This discovery is consistent with the findings of other researchers. According to Azadi, Bagheri,
Eslami & Aroufzad (2013), findings of researchers point out that adaptability is associated with
worker commitment, which is regular with the correlation coefficients of adaptability (r = 0.85).
Similarly (Asghar, Mojtaba & Sadeghi, 2015) undertook a Pearson correlation check and
concluded that there is a moderate level of correlation between worker commitment and
involvement (r =0.44). In addition, there is a high correlation between the two organizational
lifestyle traits, namely involvement and consistency, with the dependent variable and the
correlation coefficient, which used to be r = 0.83 and r = 0.76, respectively. (Azadi, Bagheri,
Eslami, and Aroufzad, 2013).

4.5 Tests of Assumption of Regression Analysis

According to (Field, 2009) to run a linear regression, checking crucial assumptions is

quintessential and it is beneficial to draw conclusion about the population underneath study.
Regression evaluation is a statistical size of the relationship between the two or greater variables
by means of showing the alternate of response variable (dependent variable) as a end result of
per unit trade of the predictor (independent variable). In different phrase regression model is the
system of estimating the value of structured variable while the independent variable modified
through per unit (sekaran and bougie, 2010).

Therefore, in this Regression evaluation five basic, classical linear regression model assumptions
had been tested before the regression analysis is conducted. These assumptions are: Linearity,
Normality, Multi-colinearity, Autocorrelation, and Homoscedasticity.

60
4.5.1. Linearity Test

Linearity potential the relationship between based and unbiased variables is to be linear. This
relationship characterized by way of a straight line. Linearity approves the researcher to predict
the dependent variable based totally on one or greater numerous independent variables. The
assumption is checked thru the P.P plot by means of looking at whether or not the two variables
approximately structure a straight line. Therefore, to determine the linear relationship between an
established variable (employees‟ commitment) and independent variables (organizational
culture) thru the p.p plot. As indicates in the figure 4.1, when looking at the scatter plot, moved
from left to proper the distance of points on round the suit line approximately similar.

Figure 4.1 P-P Plots

61
4.5.2. Normality test

According to (Field, 2009), noted, the assumption of normality is important in research while the
usage of regression and beneficial to generalize the results of the analysis beyond the pattern
collected. Accordingly, among several approaches to test for the normality assumptions for
linear regression analysis, it is really helpful to check out to see if a distribution is every day thru
a P–P plot (probability–probability plot). Therefore, to set up the validity of these assumptions,
the researcher also checks for the normality for the standardize residuals P-P plot. The straight
line in this plot represents a regular distribution, and the points represent the observed residuals.
Therefore, in a perfectly usually allotted facts set, all points will lie on the line (Field, 2009). A
2nd attribute of the everyday distribution is that it is symmetrical. This capability that if the
distribution is cut in half, every facet would be the mirror of the other (Ghasem, and Zahediasl
S., 2012).

62
Figure 4.2 Probability Plot (P-P) graph

63
Fig 4.3 Histogram that shows the normal distribution of the population

4.5.3. Multicoloniarity Test

Collinearity is a data trouble that arises if two independent variables are highly correlated and
Multi co linearity occurs if greater than two independent variables are noticeably correlated. The
VIF is a measure of the reciprocal of the complement of the inter-correlation amongst the
predictors. The decision rule is a variable whose VIF value is greater than 10 indicates the
feasible existence of multicollinearity problem. Tolerance (TOL) defined as 1/VIF, it
additionally used by means of many researchers to check on the degree of collinearity. The
selection rule for tolerance is a variable whose TOL price is less than 0.1 suggests the viable
existence of multicollinearity problem (Gujarati, 2004). From the assumption take a look at the
VIF values for all variables became less than the tolerable value, i.e. 10.

64
 Table 4.10. Multicoloniarity Test
Coefficientsa

Model Collinearity Statistics

Tolerance VIF
(Constant)
INVOLVMENT .932 1.073
CONSISTENCY .690 1.449
ADAPTABILITY .652 1.534
able: EMPLOYEES COMMITMENT
a. Dependent Variable:
Source: Own Survey, 2022

4.5.4. Homoscedasticity Test

This assumption of homoscedascity is the central to linear regression model. It describes a

scenario in which the error term (that is, random disturbance in the relationship between the
unbiased variables and the based variables) is the equal throughout all values of the independent
variables. Assumptions can be checked by scatter plot diagram.

The end result plots the values the model would predict, in opposition to the residuals obtained.
As the envisioned values increase, the variation in the residuals should be roughly similar. The
graph looks like a random array of dots. So, the model is homoscedasticity

Figure 4.4

65
4.6 Regression Analysis

Linear regression evaluation is the most common and widely used technique to discover the
relationship between a single based variable and more than one unbiased variables or predictors
(Pallant, 2005).On the other hand, more than one regressions able to show how the value of
based variable modifications as the value of two or greater unbiased variables is changed
(Babbie, 2013)

Table 4.11: Model Summary of organizational culture

Model R R Square Adjusted R Std. Error of

Square the Estimate
.800a .639 .632 .4241

a. Predictors:ctors: (Constant)
(Constant), ,
ADAPTABILITY Y,
, INVOLVMENTCONSISTENCY
b. Dependent Variable: EMPLOYEES COMMITMENT
Source: Own Survey, 2022

According to the regression model summary table 4.11 above, the R-value indicate that, the
affiliation of all independent variables (involvement, consistency and adaptability) with the
structured variable (employees‟ commitment) is 0.800. It indicates that, there is a robust and nice
relationship between them. The fee of R square is 0.639. It suggests that 63.9% variance in
employee’s commitment is due to alternate in all the independent variables and the last 36.1%
employee’s commitment is defined through other variables which are now not defined in this
research. The cost of adjusted R square is 0.632. Which shows 63.2% is strong association. The
find out about of (Noah, 2008) concluded that to acquire increased Workers‟ dedication and to
humanize the administrative center with the intention of enhancing organizational performance
and properly citizenship behavior, managers need to allow an excessive degree of worker
participation in selection making.

66
Table 4.12 ANOVA of organizational culture on employee’s commitment

Sum of df Mean F Sig.

Squares Square
Model Regression 44.328 3 14.776 82.142 .000b

Residual 25.004 139 .180

Total 69.332 142

ent Variable
a. Dependent Variable:: EMPLOYEES
EMPLOYEE COMMITMENT
S
b. Predictors: (Constant), ADAPTABILITY , INVOLVMENT , CONSISTENCY

The ANOVA table suggests that the normal significance or acceptability of the model from a
statistical point of view. From the table above 4.12, the regression model is significant, at p <;
0.001. R square is = 0.639. The p-value is (0.000), which is much less than the magnitude degree
0.05 (P<; 0.05). Adjusted R square = 0.632. The findings indicate that, the regression model is a
proper in shape of the records and the model is statistically significant, however it does not mean
that all variables have an equally contribution of employees commitment. As an end result
organizational subculture has statistically vast effect on its employees‟ commitment.

Table 4.13 Coefficients of organizational culture on employees’ commitment

Model Unstandardized Standardized T Sig.

Coefficients
Coefficients

(Constant) β Std. Error Beta .099 .921

INVOLVMENT .022 .218 .243 4.610 .000

CONSISTENCY .243 .053 .294 4.787 .000

ADAPTABILITY .285 .055 .513 8.125 .000

Variable: EMPLOYEES
a. Dependent Variable: EMPLOYE ESCOMMITMENT

67
The value of the regression coefficient represents the rate of alternate of the dependent variable
as a result of one unit change of the impartial variable. The above table 4.13 regression
coefficients point out the contribution and impact of organizational subculture on the employees'
commitment. So the beta () cost of involvement is ( = 0.243). It indicates that, while involvement
increases by one unit, an employee’s commitment will increase by means of +0.243. Other
factors remain constant. As a result, involvement has a tremendous effect on employees'
dedication and is statistically sizeable at p = 0.000. The beta value of consistency is ( = 0.285),
showing that 1 unit trade in consistency would cause a 0.285 unit positive exchange in employee
commitment and it is statistically considerable at p <; 0.05, retaining different elements constant.
The beta price of adaptability is (β = 0.447), displaying that 1 unit of alternate in adaptability
would produce a 0.447 unit of high quality alternate in employee commitment. And it is
statistically sizable at p<; 0.05, meaning that different elements remain constant. The statistics
were collected from the interview questions by asking the workplace head and different
management bodies as a question. How to provide an explanation for your employees' pride with
relation to the selection of the management, working environment, income and distinct benefits?
What are the gaps in your organizational way of life with regard to developing employees'
commitment? And so on. Generally, their response is summarized in the following way:

4.7 Interview Analysis

The researcher raised numerous questions, primarily based on dimensions of organizational

culture and employee commitment for the HR supervisor and administrative control body of
worker representatives in EthioTelecom. To aid outcomes from pattern survey interview results,
the control facet shows that the enterprise encompasses involvement, consistency, and
adaptability in a high quality issue with its organizational culture. Primarily based on this result,
consistency is the dominant organizational subculture in terms of involvement and flexibility.
Similarly, the effects of management generally tend to take the side that personnel are happy
with organizational tradition and other distinct factors.

Then again, the interview resulted from representative of employees' cross towards the
management, and that they stated the majority of the above culture (involvement, consistency,
and adaptability) did exist in the agency's tradition, and they're the ones that affect its personnel
commitment in that the control does not inspire teamwork for the jobs to be performed. Contrary
to the management's responses to the interview, personnel are dealt with fairly in that their minds

68
and thoughts are taken to be given values and implementations. Management normally imposes
burdens on employees. Management is primarily based on punishments and penalties. Even for
minor human errors, there are warnings that impose earnings deductions. Furthermore, they are
no longer encouraged to take risks and try new things in order to demonstrate their dedication.
The employees trust that each member of the organization has issues related to dedication, and
they talked about how they're now not dedicated enough.

Typically, by aggregating interview results from sides and sampling survey results, the
researcher concluded that in the organizational subculture, employees have a tendency to agree
that a number of the scale exist within the corporation. So that it contributes to moderate level
employees' dedication.

69
 CHAPTER FIVE

Summary, Conclusion, and Recommendation

Introduction

This chapter outlines the key findings developed from chapter four statistics evaluation. Based
on the findings summary, a conclusion was developed and advice was forwarded on the
difficulty of Ethio-Telecom in improving organizational lifestyle and employee dedication; a
summary of the study's findings; and a discussion of the final results and the approaches used to
obtain them.

5.1 Summary of Finding

Concerning the methodology of this research, quantitative and qualitative research strategies as
well as descriptive and explanatory methods have been applied. With relation to sampling
technique, simple random sampling was usually applied. Based on this sampling technique, 159
samples have been chosen out of a whole population of 264. So far, 159 questionnaires have
been disbursed to the respondents, and 143 questionnaires have been collected. The facts were
used to be analyzed through the usage of descriptive statistics, Pearson correlation, and linear
regression with the use of the SPSS model 23.

The popular profile of the respondents showed that 87 (58.7%) of the respondents were male,
whereas the remaining 59 (41.3.4%) were female. The higher part of the respondents falls
between the age tiers of 31–40 years old, which consists of fifty-nine (41.26%) respondents
followed by the age range of 41–50 years, which consists of 39 (27.27%) respondents. The
instructional stage of respondents was 87 (60.8%) of respondents with a diploma and below,
accompanied with the aid of 48 (33.6%) of respondents who had been bachelor degree holders, 7
(4.9%) of the respondents have a masters diploma, and the final 1 (.7%) of the respondents have
a Phd. Of the whole respondents, 132 (91.61%) were non-managers, and the final 12 (8.39%)
were greater and center-level managers.

The end result of the descriptive data of this study indicates that consistency has the best mean
score of 3.29, followed by using involvement with a 2.89 suggested score and adaptability rating
of 2.81.
70
 As a result, all organizational culture models point out that the majority of respondents have
moderate agreement. Based on this result, consistency is the dominant organizational subculture
in contrast to involvement and adaptability.

From the Pearson correlation analysis, the organizational subculture has a robust, high-quality,
and statistically widespread relationship with employee commitment. Adaptability has a sturdy
relationship with a correlation coefficient of 0.732, accompanied by consistency with a
coefficient of 0.568, and involvement of 0.379. which shows a reasonable relationship and is
statistically sizeable at (P<; 0.01).

The beta (β) fee of involvement is (β = 0.243). It indicates that while involvement increases by
one unit, employees’ dedication will increase by +0.243 while other factors remain constant. As
a result, involvement has a fantastic effect on employees' commitment.

The beta cost of consistency is (β = 0.285) displaying that 1 unit alternate in consistency would
motive a 0.285 devices nice alternate in employee commitment.

The beta fee of adaptability is (β = 0.447), showing that one unit exchange in adaptability would
motivate 0.447 high-quality trades in worker commitment.

From this result, involvement, consistency, and adaptability have a positive and statistically
extensive effect on personnel dedication at p<; 0.05. Based on the facts from the researcher’s
observation, the current scenario of the organization wants some change and strong focus. As
discovered from exceptional reports and current status, the energy and performance of the
corporation before 10 years used to be higher as compared to now.

71
5.2. Conclusion

Finally the find out about comes up with the following conclusion on the groundwork of finding
related to with the effect of organizational tradition (involvement, consistency and adaptability)
on employees‟ commitment. The descriptive evaluation of the result indicates that, the three
components of the primary organizational lifestyle in the find out about (consistency,
involvement and adaptability) had bought a moderate means score value. It is an implication of
employees‟ pleasure toward their job. From this result, the researcher concludes that, if the
enterprise exerts more effort on enhancing organizational culture, it will elevate the power of
employees‟ dedication and as a reward it will improve organizational performance. The
correlation analyses end result indicates that, adaptability has robust correlation with employees‟
commitment. Whereas, consistency and involvement have average degree of correlation with
personnel commitment. This shows that the above listed organizational lifestyle has a positive
and direct relationship with employees‟ commitment.

The value of R square is 0.639. It indicates that 63.9% variance in employee’s commitment is
due to exchange in all the independent variables and the last 36.1% employee’s commitment is
defined through different variables which are not defined in this research. In addition, the overall
organizational tradition (involvement, consistency and adaptability) have a advantageous and
statistically substantial impact on personnel commitment.

So that, a fine change and impact of the three aspects of organizational way of life can deliver
positive enchantment on employees‟ commitment. From this result the researcher conclude that,
if the organization applies extra effort on strengthening organizational culture, it will enlarge the
energy of employees‟ dedication and the performance of organization as a whole. Based on the
records from the interview, one of a kind reasons the organizational culture, personnel moral and
dedications as well as the performance of the corporation grow to be deteriorated. The
predominant purpose of this trouble was unnecessary government intervention on spiritual
organization especially in Islamic organization‟‟. From the interview facts the researcher
concludes that, the useless intervention of exterior body on one agency may also have a multi-
dimensional negative impact in unique aspects of that organization. Finally primarily based on
the result of this study, organizational subculture and employees‟ commitment have a fantastic
and extensive relationship. Even though the relationship is direct and positive, unsatisfied
performance of the personnel and the corporation as an entire may also come due to the weak
spot of organizational lifestyle and its miss implementation in the organization.

72
5.3. Recommendations

Depending on the findings of the research and conclusions made, the researcher came up with
some important recommendations which would assist the corporation to focus on organizational
tradition that can largely make contributions to the enhancement of employee commitment. The
guidelines given are the following:

To improve the performance of the employees and the employer as a whole, it is suggestible that
the enterprise itself wishes to support the lifestyle of the business enterprise as well as regional
representatives.

It is really helpful for organizations to take a duty to enhance their working lifestyle and adapt to
modern-day administrative systems. It is advised that organizational corporations such as
regional, zonal, and woreda stage Ethio-Telecom exert higher efforts on training and
mobilization of followers to bring higher performance functionality in unique activities. To
improve the power of organizational tradition and its implementation, special coaching and
mobilization devices need to be applied.

Responsible government corporations such as the Ministry of Peace need to have a positive and
oriented impact on and aid in enhancing organizational strength.

It is suggestible that Ethio-Telecom and training want to be handy for organizational managers,
personnel, and followers as a whole to deliver top-notch change in the organization’s working
habits, leadership, economic management, modern-day working machines, and all-around
performance. It is advised for this company to maintain a cordial relationship with others, such
as the government, and to avoid any negative or ineffective influence or intervention from
outside bodies.

73
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 APPENDIX I

Gage University College

School of Graduates Study

Business Administration Program

Questionnaire to be filled by employees of Ethio-Telecom

Dear Respondents,

This questionnaire is prepared by graduate student of Gage University College in the field of
Business Administration master’s program in fulfillment of a master’s thesis. This study entails
to Effect of organizational Culture on employee Commitment: the case of Ethio telecom at head
office of Addis Ababa City.

Therefore, you are selected to fill this questionnaire because student researcher has full trust on
you to get complete and real information that are required for this research. Note that, the
validity of your response has high contribution for success of my study due to this reason I
would like to ask with due respect to give the right response. All information you provide to this
study will be kept strictly confidential.

Thank you in advance for your cooperation.

Section I – Background information

Please indicate your choice by putting a thick mark () among the given alternatives
Notice;
- It is not necessary to write your name.
- Please put a “” mark on the space provided

Section I: Demographic profile of respondents

Please indicate the following by ticking (√) on the spaces in front of the response options:

1. Gender: 1. Male 2. Female

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 2. Age: 1. 18-30 2. 31-40 3. 41-50 4. 51
Above

3. 1. Educational level: Diploma 2. First degree holder 3.

Master’s degree

4. PhD
4. Marital status 1. Single 2. Married 3. Divorced 4.
Widowed

5. How many years of experience do you have in your current organization?

1. Less than 2 years 3. 8-14 years

2. 2-7 years 4. More than 15 years

6. Division of Employment 1. Management 2. Non-management

Section II

This part of questionnaire covers about Effect of organizational Culture on employee

Commitment. Please indicate how much you agree or disagree with each of the following
statements by putting a thick mark () that best represents of your opinion. 1 indicates strongly
disagree (SDA), 2 indicates disagree (DA), 3 indicates neutral (N), 4 indicates agree (A) and 5
indicates strongly agree (SA).

NO MODELS OF ORGANIZATIONAL CULTURE 1(SDA) 2(DA 3(N) 4(A) 5(SA)

INVOLVMENT )

1 Your enterprise has a vogue of delegation for its

employees.

2 Employees in your business enterprise are participated

in their Organizational decision
3 Every employee believes that empowerment can have a
high-quality effect on his or her performance nice.
4 Employees‟ group work throughout exclusive
departments of the enterprise is prompted with
appropriate crew spirit.
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5 Your agency believes that cooperation of personnel play
and necessary position for the success of the
organization.
6 In your organization, teamwork is used to get high
quality and efficient work done, as a substitute than
hierarchy
7 The company has a continuous capacity improvement to
decorate the skills of employees
8 The investment on capacities of personnel is viewed as
integral problem of the organization viewed as crucial
issue of the organization.
9 Capacity building of employees is implemented in special
period of time for every employee.
CONSISTENCY
10 In your organization, managers and employees are
deeply is aware of the core values of the organization.
11 The organizational core price is an ethical code that
publications managers &amp; employees behavior.
12 Ignoring the core values of the business enterprise will
lead to dissatisfaction of believers and customers.
13 In your organization, it is convenient to reach an
agreement, even if the problems are extra difficult
14 There is a clear perception about the proper and incorrect
approaches to operate duties in your organization.

15 It is easy to coordinate and integrate across different

organization departments to accomplish a core activities
of the
16 In your organization, there is a nice coordination and
integration with believers and customers
17 In your enterprise personnel in distinctive branch shared
a common values and attitudes.
.
ADAPTABILITY

18 The lifestyle of your corporation is open for alternate and

the leaders/employees are adapting quickly, and open to
new ideas

19 Managers and Employees of your company supply

greater attention to customers‟ wishes and wants.
20 Customers’ remark and suggestion are usually acceptable and
lead to a positive changes for your organization.

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21 Innovations and creativities are greater inspired in your
organization.

22 In your organization, the new leaders analyze from that

of the pervious.
23 In your organization, failure taken as an chance for
studying and improvement
24 In your organization, failure taken as an opportunity
for learning and improvement.
EMPLOYEES COMMITMENT
1 Your time administration based on organizational day by day
working hours is nearly best.

2 You value the organization’s code of ethics.

3 You feel that this enterprise appears like your personal

4 You are an example of loyalty to the organization.
5 The difference in revenue cannot make you determine to
leave the job
6 You successfully and effectively use the organization’s
assets
7 You locate the way to do a correct job even in adverse
conditions.
8 You are accomplish in time and manners the things to do that
are assigned to you
are assigned to you
9 If your organization provide an accountable or risky
work for you then you will accept it

INTERVIW DATA

The following questions were prepared for structured interviews about the title of the effect of
organizational culture on employees’ commitment for the Ethiopian Ethio telecom managers in
order to get special reference about this topic for the academic research purpose only.

1. What are the dominant organizational cultures in your organization? Are these organizational
cultures creating a positive employees commitment? How?

2. How to explain your employees‟ satisfaction with relation to the decision of the management,
working environment salary and different benefits?

3. Is your organization providing quality service to your employees and customers? How?
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4. How to explain the culture of involvement, consistency and adaptability in your organization?

5. How to evaluate the level of your employees‟ commitment in your organization? How to build
up the employees‟ commitment to improve the organizational performance?

6. What are the gaps in your organizational culture with relation to grow up employees‟
commitment?

7. How to explain the effect of organizational culture on its employees‟ commitment in your
organization?

8. Is your organization having a clear goals and objectives? How do you explain their clarity to
managers and employees?

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