ADMAS UNIVERSITY

DEPARTMENT OF MARKETING MANAGEMENT

HOW ORGANIZATIONAL IMAGE AFFECT EMPLOYEES ATTITUDE IN CASE OF

TELE COMMUNICATION JEMMO BRANCH

PREPARED BY:-

ABEL HAILEMARIAM…………………………………………0737/19

AMANUEL ELIAS………………………………………………..0591/19

EYUEL SOLOMON………………………………………………0553/19

HAREGEWOIN WORKU……………………………………....0687/19

KIRUBEL SHIMELS……………………………………………..0682/19

MINTESNOT GEZAHEGN………………………….……….0508/19.

NATENAEL DANIEL.............................................0565/19

4DRM2

JANUARY, 2019
ADDIS ABABA, ETHIOPIA

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 TABEL CONTENTS
ACKNOWLEDGEMENTS............................................................................................................. 3
ABSTRACT....................................................................................................................................... 4
CHAPTER ONE............................................................................................................................... 5
INTRODUCTION............................................................................................................................ 5
1.1 Background of the study.................................................................................................... 5
1.2 Statement Of The Problem................................................................................................ 7
1.3 Basic Research Questions Guide The Study:..............................................................7
1.4 Objectives Of The Research............................................................................................... 7
1.4.1 General Objective:-........................................................................................................ 8
1.4.2 Specifically Objectives:-............................................................................................... 8
1.5 Significance Of The Study................................................................................................... 8
CHAPTER TWO.............................................................................................................................. 8
2. LITERATURE REVIEW........................................................................................................... 8
2.1 Components Of Image......................................................................................................... 9
2.2 Consequences Of Organizational Image....................................................................10
CHAPTER THREE....................................................................................................................... 14
RESEARCH METHODOLOGY................................................................................................ 14
3.1 Research Methods.............................................................................................................. 14
3.2 Research Design.................................................................................................................. 14
3.3 Data Sources......................................................................................................................... 14
3.4 Subjects................................................................................................................................... 15
3.5 Sampling Technique.......................................................................................................... 15
3.6 Instruments Of Data Collection..................................................................................... 16
REFERENCE.................................................................................................................................. 17

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 ACKNOWLEDGEMENTS
We are very grateful to the Lord Almighty for His mercies and grace to have
finished this work. We are grateful to him for giving us his time, advice, critical
comments, and encouragement to ensure that this work was completed.

We say a very big thanks to the employees of Ethio Telecom for the essential
contribution they provided relevant documents, their time and voluntarily
support on data collection which were very important for our research project
during the data collection phase. They filled the questionnaires in the middle
of very tight daily routines.

Finally, we would like to acknowledge and thank all our friends and teachers
in Admas University who provided us their support in many ways during the
entire processes of this research work.

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 ABSTRACT
This research adopted both quantitative and qualitative approach The major
objective of this study is to assess the image effects of an employee attitude of
Ethio Telecom. The study we used is random sampling technique to collect the
data. Our article presents the study that explored the impact of perceived
external prestige; job satisfaction, affective organizational commitment and
affective on organizational commitment and affective of well-being at work.
We targeted a population of 28 employees from 104 employees to fill the
questionnaires. Data analysis was done using descriptive statistics with the
help of numbers, percentage ratings were used to present the perception of
the respondents. Consequently, the management group reflected that the
company doesn’t have benefit policy for project teams. Moreover, it was
perceived that the effectiveness of compensation and benefits package was
not evaluated and revised based on needs and circumstances. In line with this
a recommendation is forwarded on points that the compensation and benefit
policy should be periodically revised, participation of employees on
development and implementation of the policy must be considered positively
in furthering mutual understanding and it is better to develop benefit policies
for project management teams as their tasks are the most important in
operational divisions of the company. The overall attitude of employees is
good in the organization, it is recommended to the capacity building through
training and development, having process consultation, establishing
appropriate governance structure establishing enabling environment in the
implementation process and creating collaboration within the units in the
organization that are critical to reform efforts in general to implementation in
particular in the organization.

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 CHAPTER ONE

INTRODUCTION

1.1 Background of the study

Organization image has mostly been studied using an external perspective
focused on strategy and marketing issues. Given its salience in employees
symbolic environments, however, image may also have internal as well as
external consequences yet, the potential impact of image on internal human
resources aspects has received many interest.

Hatch and Schultz (1997) argue that in the current business environment the
boundary between the internal and external aspects of contemporary
corporations is breaking down because of increased interactions between
organizational members and external actors. In this context, organizational
identity should be viewed as a bridge between the external position of the
organization in the market place and its internal environment.

The perception of an organizations identity from the outside is captured by

the notion of organizational images- that is the externally produced symbols
and interpretations made by outsiders about the company (Whetten and
Mackey,2002).

An organizational image exerts an indirectly influence over its internal

stockholders, particularly the employees, through their perception of how
outsider view the organization (Bird et al, 1989). As stated by Hatch and
Schultz(1997:361), ‘who we are is reflected in what we are doing and how
others interpret who we are and what we are doing In this dynamic and
competitive environment, any organization, which runs any business for
profit?

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Through different product and service delivery, organization image and their
employees attitude, is the most important and core thing to be issued. Ethio
telecom is one of the biggest companies in Ethiopia. It is sole
telecommunications service provider in the country, which was introduced in
Ethiopia by Emperor Menelik II in 1890 it is more than a century old, with
passing through different stage of technologies up to now. Telenegerit (2007:
13)

In those years, the technological scheme contributed to the integration of the

Ethiopian society when the extensive open wire line system was laid out
linking the capital with all the important administrative cities of the country.

After the end of war against Italy, The telecommunication network was
destroyed, Ethiopia re-organized the Telephone, Telegraph and Postal
services in 1941. In 1952 the Imperial Board of Telecommunications (IBTE)
was established by proclamation No. 131/52 in 1952. The Board had full
financial and administrative autonomy and was in charge of the provision and
expansion of telecommunications services in Ethiopia.

The Imperial Board of Telecommunications of Ethiopia, which became the

Ethiopian Telecommunications Authority in 1981, was placed in charge of
both the operation and regulation of telecommunication services in the wake
of the market reforms. In 1996, the Government established a separate
regulatory body, the Ethiopian Telecommunication Agency (ETA) by
Proclamation 49/1996, and during the same year, by regulation 10/1996, the
Council of Ministers set up the Ethiopian Telecommunications Corporation
(ETC). Worku Bogale, ( 2005)

Under the supervision of the Ethiopian Telecommunication Agency, the

principal duty of Ethiopian Telecommunication Corporation is maintaining
and expanding telecommunication services in the country and providing
domestic and international telephone, telegram, and other communicant on
services. In this respect, currently It is the only operator of any
telecommunication related service.

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This sole organization in the country is restructured at different time after
concentrating its efforts on education, health and environment, the Ethiopian
Government has decided to transform the telecommunication infrastructure
and services to world class standard, considering them as a key lever to the
development of Ethiopia. (http:/lwww.ethiotelecom.et)

1.2 Statement Of The Problem

Perception of employees is attracted with many different things by outside
image weather by internal and external different factors which many
companies face this problem nowadays with effort try to change employees
attitude. According to the logged complaint in the Social relations section of
the company as well as the report from the labor union, employees claim that
they became a victim of their job disaffection due to different reasons, ethio
telecom differs as the company has recently been transformed with a vision of
becoming a world class telecom operator. The management as well as the
tools that are being used is recently introduced and yet the employees
dissatisfaction could not be solved. An organization’s image seems to affect
people’s attraction to an organization as a place to work And an employee also
uses an organization’s image as a mirror of how others are judging them
Lievens (2017). Human resource books like Human resource Management
(Jerry R. Baker and Madeleine S Doran) states the problem.

1.3 Basic Research Questions Guide The Study:

How to find the major challenges faced by employees?

How to assess the compatibility between employees performance and the

organization image?

How to provide the necessary recommendations those are possibly improve

the employees attitude to retain in the organization?

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1.4 Objectives Of The Research
The main purpose of this study is to determine the problems of ethio telecom
How the organizational image effects its employees attitude in accordance
with the achievement of the general company objectives.

1.4.1 General Objective:-

Identifying the main challenges of employees with respect to the organization
image

1.4.2 Specifically Objectives:-

To identify the major challenges faced by the employees

To assess the compatibility between employees performance and the

organization image

To provide the necessary recommendations those are possibly improve the

employees attitude

1.5 Significance Of The Study

Ethio telecom as many government offices has gone through reform processes
and the government is demanding that promotion and other incentives be
attached to the results and performance of employees. The findings and
recommendations of this research will help ethio telecom’s management to
outline which kinds of other company image attracts employees. This in turn
will increase employee satisfaction and thus productivity of employees will
increase resulting in the overall growth towards the GTP goal, to retain its
employees to change the outside image of ethio-telecom Attitude. In addition
it will be used as a reference to other researchers.

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 CHAPTER TWO

2. LITERATURE REVIEW
Organizational image refers to people’s global impressions of an organization
and is defined as people’s loose structures of knowledge and beliefs about an
organization. Organizational image represents the net cognitive reactions and
associations of customers, investors, employees, and applicants to an
organization’s name. Accordingly, it serves as a template to categorize, store,
and recall organization-related information. It should be noted that there is
no such thing as “the” organization’s image, because an organization typically
has multiple images. These multiple images result from various groups (also
known as stakeholders or corporate audiences) holding different images of
the same organization. At least, one might distinguish among the following
organizational images. Breaugh, J. A. (2013). Employee recruitment. Annual
Review of Psychology, 64, 389–416.First, investors and executives hold an
image of an organization as an economic performer (“company financial
image”). These investors typically rely on factual economic figures as a basis
of their beliefs about the organization. Second, there is the image of an
organization as a social performer in the general society (also known as
“corporate social performance”), which can be further broken down into an
organization’s involvement in the community and its pro-environmental
practices. Third, customers or clients hold an image of an organization as a
provider of goods and services (“product image or service image”). Fourth,
each organization has an image as an employer among current employees and
(potential) applicants (also known as company employment image or
employer image). This is the image that is assessed in rankings such as
Fortune’s “The 100 Best Companies to Work For” or “a great place to work.”
These multiple organizational images might not always coincide. For instance,
a firm’s image as an employer as held by either employees or job seekers
might be different from its image as a provider of goods and services in the
minds of customers or clients. Organizational images typically develop over
longer periods of time.

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They result from, among other things, media coverage, individual or group
sense making, and communication on the part of the organization (as reflected
in an organization’s advertising, sponsorships, and publicity). However, it
should be clear that organizational images are not static. Specifically,
organizations often audit their images. In these image audits, the aim is to
carefully determine which factors make up the image among various
stakeholders. Next, organizations aim to strategically modify the image held
by these stakeholders. For instance, this might be done by increasing an
organizations exposure or by highlighting specific attributes in advertising
campaigns.

2.1 Components Of Image

The above definition of organizational image reflects a holistic view of
organizational image. It is also possible to focus on specific attributes that
people associate with employer image (employer image dimensions). In this
elementalistic view, Fulmer, I. S., Gerhart, B., & Scott, K. S. (2003). Two broad
components can be distinguished in an organization’s image. First, people
typically associate some objective attributes with an organization. These
attributes might vary from factual or historical aspects of organizations to
organizational procedures and policies. For example, in terms of a company’s
image as an employer, research has confirmed that applicants might have
some knowledge about the attributes of the organization and the jobs they
might consider applying for. Examples include size, location, level of
centralization, pay, benefits, type of work to be performed, advancement
opportunities, and career programs. Many of these attributes (e.g., pay,
advancement) are also referred to as instrumental attributes because they
have functional or utilitarian value in that they enable maximum benefits and
rewards. A second part of people’s general impressions of an organization
refers to more symbolic aspects, also known as trait-related inferences. Trait
inferences about organizations are different from the aforementioned
objective company-related information for two reasons. First, trait inferences
describe the organization in terms of subjective, abstract, and intangible
attributes. Second, they convey symbolic company information in the form of
imagery that people assign to organizations. For example, people refer to
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some employing organizations as trendy, whereas other employing
organizations are seen as prestigious. People associate themselves with
organizations with these symbolic aspects because they want to express their
own values or impress others.

2.2 Consequences Of Organizational Image

An organization’s image plays a central role because what various
stakeholders know about an organization influences considerably how they
respond to the organization. In fact, an organization’s image might have
various potentially favorable consequences for the organization and its main
stakeholders. Barber, A. E. (1998).Individual and organizational perspectives.
Thousand Oaks, CA: Sage

First, there might be effects on investment decisions. Specifically, firms with

good images might have competitive leverage in terms of attracting and
keeping new investors. Second, it has been found that an organization’s image
exerts effects on consumers’ product choices. In this context, an organization’s
image might serve as a signal of product quality and might enable an
organization to distinguish itself from its main competitors. Third, an
organization’s image seems to affect people’s attraction to an organization as
a place to work. This is especially the case in early recruitment stages as
(potential) applicants have only a rudimentary knowledge of the key job and
organizational attributes. Hence, (potential) applicants mainly rely on their
general impressions of the firm (i.e., image) when deciding to apply for a job.
The general effect that has been found is that employer image influences the
quantity and quality of the applicant pool of an organization in that
organizations with good images are able to attract more and better applicants.
Apart from these general effects on applicant quantity and quality, applicants’
view of the image of an employer has also long-lasting effects on other
recruitment stages. Specifically, impressions of an organization as an
employer measured in early recruitment stages are strong predictors of
applicants’ attraction measured in later recruitment stages (e.g., after a
campus interview), which in turn is related to applicants’ final job acceptance
decisions. A fourth group of studies has examined the consequences of

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organizational image on employees’ attitudes and behaviors toward their
organizations. For instance, an employee also uses an organization’s image as
a mirror of how others are judging them. Moreover, an organization’s image
has been found to be important to employees’ sense of self. Cable, D. M., &
Turban, D. B. (2001)

If one holds the company in low regard, one has lower job satisfaction and a
higher probability of leaving the organization. Conversely, if the company is
held in high regard by oneself and others, job satisfaction is higher and
turnover intention is lower. In this case, an employee also wants to be
associated with the positive image of the organization and feels proud to
belong to that organization. Finally, there is evidence that firms on the best
100 list enjoy organizational performance advantages over the broad market
and a matched sample of firms. In other words, organizational image seems to
enhance the competitive ability of the firm. Organizational image is closely
related to other constructs, such as organizational reputation and
organizational identity. However, there are also some differences. Dutton, J. E.,
Dukerich, J. M., & Harquail, C.V. (1994). Organizational images and member
identified Administrative Science In particular, organizational reputation
refers to people’s beliefs about the general public’s affective evaluation of the
organization. Organizational reputation differs from organizational image in
that reputation entails an affective component (a loose set of feelings
associated with an organization), whereas image is mainly cognitively
oriented (a loose set of knowledge and beliefs about an organization). Another
difference is that reputation refers to more stable shared perceptions of how
the general public feels about the organization, whereas image deals with a
person’s own more transient beliefs. Another related construct is an
organization’s perceived identity. The key difference between an
organization’s identity and an organization’s image is that an organization’s
identity is what insiders in the organization (employees) perceive to be the
organization’s central, enduring, and distinctive characteristics. Conversely,
image and reputation deal with outsiders’ (applicants, customers) views and
feelings. Finally, in the practitioner literature, the term employer brand has
also been used. The employer brand is the perceived package of attributes

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(see the image components mentioned previously) that makes an employer
attractive and distinctive in the minds of both job seekers and current
employees. A further distinction is often made between the external employer
brand and the internal employer brand. Whereas the external employer brand
converges with the organization’s image as an employer as seen by outsiders,
the internal brand mirrors the construct of an organization’s perceived
identity. In common, HR consultants recognize that the main idea of work is to
include in employee attitudes as a reason, it is a main area HR can assist
influence through organization programs and organization practices. On the
other hand, in the last two decades, the major research achieved in
recognizing dispositional and cultural control on job expectations as well, that
is not until now satisfied by consultants. Furthermore, only one most
important parts of the work situation to influence job satisfaction, “the work
itself” are frequently ignored by practitioners when addressing job
satisfaction. A number of innovative studies have explained the power of a
person’s nature on job pleasure. In this area for first study confirmed that a
person results in job satisfaction has strength over time. He or she can change
their job or companies any time (Staw & Ross, 1985). According to same
study, childhood nature was realized to be statistically linked to adult job
satisfaction up to forty years later (Staw, Bell, & Clausen, 1986). The issue
even indicates that the identical double reared part in the job satisfaction is
statistically similar (Armey, Bouchard, Segal, & Abraham, 1989). It has critics
about this writing (Davis-Black & prefer, 1989), a gathering body of data
shows that variations in job satisfaction. The workers can be traced it. In this
part they can differ in their nature (House, Shane, & Herold, 1996).

Robbins (2003) defined attitudes as evaluative statements and they can be

either favorable or unfavorable concerning objects, people, or events.
Therefore they reflect how one feels about something. The favorable
statements may provide positive effects regarding the concerned object,
person or event whereas unfavorable statement may provide negative effects.
An attitude is a positive or negative feeling or mental state of readiness,
learned and organized through experience that exerts specific influence on a
person’s response to people, objects and situations. This definition of attitude

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has certain implications for managers. First, attitudes are learned. Second,
attitudes define one’s predispositions toward given aspects of the world.
Third, attitudes provide emotional basis of one’s interpersonal relations and
identification with others. And fourth, attitudes are organized and are closed
to the core of personality. Some attitudes are persistent and enduring; yet, like
each of the psychological variables, attitudes are subject to change (Fishbein
and Ajzen, 1975).

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Research Methods

This section tries to describes the method that we have followed in doing this
research describing the research type, sampling technique, data source,
instruments of data Collection and data analysis method in doing the research.
Thus, methods applied in this research, were chosen In order to acquire
information and infer conclusions about How Organizational Image Effects
Employees Attitude.

3.2 Research Design

To get comprehensive answer to the research questions, we used the mixed
research accordingly, we collect Both quantitative data and qualitative data
from the employees.

The reason why we used questionnaires is due to the merits such as low cost,
free from the bias of the researcher, respondents have adequate time to give
well thought out answers, respondents who are not easily approachable can
also be reached conveniently, large samples can be made use of and thus the
results can be made more reliable.

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3.3 Data Sources
Data sources were usually classified into two broad categories: primary and
secondary. Both primary and secondary data will used in conducting this
study.

The primary data were collected through questionnaires, which were

distributed to the respondents during the data collection phase. In addition,
the secondary will be collected from related documents, books, journals,
research papers, and internet and from the company report.

3.4 Subjects
The subjects of this study is on ethio telecom - Employees in Jemmo Branch
Addis Ababa. To conduct this study We considered 28 Employees as a sample
of this study, because of financial and time constraints the researchers could
not consider all 104 population of the enterprise. Therefore, according to the
rules of thumb for determining sample size suggested by Roscoe, sample size
larger than 25 and less than 500 are appropriate for most research (Dr Saiful).
In our Research our target population is 104 and our required sample size is
28.

3.5 Sampling Technique

To make an inference that can be generalized for and to carry out with few
rules governing how the Sample should be collected with the relative cost and
time required that we used simple random sampling. The simple random
sample means that every case of the population has an equal probability of
inclusion in sample. Disadvantages associated with simple random sampling
include (Ghauri and Gronhaug, 2005): A complete frame (a list of all units in
the whole population) is needed; In some studies, such as surveys by personal
interviews, the costs of obtaining the sample can be high if the units are
geographically widely scattered; The standard errors of estimators can be
high Random sampling or representative sampling. The word random
describes the procedure used to select elements (participants, cars, test items)
from a population. When random sampling is used, each element in the
population have an equal chance of being selected (simple random sampling)

15
or its is a subject of statically population in which each Member of the subject
has an Equal probability of being chosen. The sample is referred to as
representative because the characteristics of a properly drawn sample
represent the parent population in all ways.

P=1

P=probability

n=sample size

N= Total population

So, our sample size is 28 and our total population is 104

P=0.27

3.6 Instruments Of Data Collection

In order to gather valuable information for this study we used questionnaire.
Based on this, questionnaire were developed in English language, for the
Employees.

The structured questionnaire was created for the Employees which were
consist of 29 items each. The questionnaire were applied the Simple Random
technique. This technique is easy to respondents to give their response.

REFERENCE
 Hatch and Schultz (1997) retrieved from
(https://www.emeraldinsight.com/doi/abs/) (Cranfield University, UK)

16
 Whetten and Mackey (2002) retrieved from
(https://journals.sagepub.com/doi/) Bird et al, (1989).
 Worku Bogale, ( 2005) primary affiliation; Addis Ababa university-
Addis Ababa Ethiopia
 (http://www.ethiotelecom.et services) Ethio Telecom Compensation &
Benefits Policy and Procedural Manual (2011), Published by Ethiopian
telecom
 John R.Walker,Jac E Miller (2009) International Human Resource
Management
 Jerry R. Baker and Madeleine S Doran (2013) Human resource
Management
 Employee recruitment. Annual Review of Psychology, 64, 389–416
 Fulmer, I. S., Gerhart, B., & Scott, K. S. (2003)
 Cable, D. M., & Turban, D. B. (2001)
 Dutton, J. E., Dukerich, J. M., & Harquail, C.V. (1994)
 Staw& Ross, (1985)-Staw, Bell, & Clausen, (1986)
 Armey, Bouchard, Segal, & Abraham, (1989).
 Robbins (2003)- Organizational behavior (10th edition) Fishbein and
Ajzen, (1975).
 Michael A. & Helen M. (2005), A Handbook of Reward management, 5th
edition Published by Kogan Page India Pvt.Ltd
 Christon L. (2010) Department of Management School of Economics,
South Sulawesi of Indonesia
 Mullins (1999) Management and organizational behavior, sixth edition.
Lecturer's guide book.
 Luthans ,Maciag, and Rosenkrantz, 1983; Ottemann and Luthans ,(1975)
 Michael A. & Helen M. (2005), A Handbook of Reward management, 5th
edition Published by Kogan Page India Pvt.Ltd

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