Professional Documents
Culture Documents
DEPARTMENT OF MANAGEMENT
BY:
EZIRAWU ESIYAS
ID NO; - MGMT/WE/159/12
APRIL, 2024
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Table of Contents Page
ABSTRACT........................................................................................................................................i
CHAPTER ONE.................................................................................................................................1
1. INTRODUCTION..........................................................................................................................1
1.1 Back ground of the study.......................................................................................................1
1.2 Statement of the problem.......................................................................................................2
1.3. Research Questions...............................................................................................................3
1.4. Objective of the study...........................................................................................................3
1.4.1. General objective of the study...........................................................................................3
1.4.2. Specific objective of the study..........................................................................................3
1.5. Significance of the study.......................................................................................................4
1.7. Limitation of the study..........................................................................................................4
2. LITERATURE REVIEW...............................................................................................................5
2.1 Definition of organizational culture.......................................................................................5
2.1.2 Components of organizations culture.................................................................................6
2.2. Artifacts and Creations (level one).......................................................................................6
2.2.1Values (level two)...............................................................................................................6
2.2.2. Basic Underlying Assumptions or Norms (level three)....................................................7
2.3. Dimensions (characteristics) of Organization Culture..........................................................7
2.3.1The Role of Culture in the Organization.............................................................................7
2.4 Types of Organization Cultures.............................................................................................7
2.4.1The Bureaucratic or Role Culture.......................................................................................8
2.4.2The power of Culture..........................................................................................................8
2.4.3 Task or Matrix or Achievement Culture............................................................................8
2.4.4 Person or Support Culture..................................................................................................8
2.5 Employee Commitment.........................................................................................................8
2.5.1 Commitment Typologies....................................................................................................9
2.5.2 Affective commitment........................................................................................................9
2.5.3 Continuance Commitment................................................................................................10
2.5.4 Normative Commitment or Obligation.............................................................................10
2.6. Empirical Literature............................................................................................................10
CHAPTER THREE..........................................................................................................................12
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3. METHODOLOGY OF THE STUDY..........................................................................................12
3.1. Description of the study area..............................................................................................12
3.2. Research Design..................................................................................................................12
3.3. Sampling technique.............................................................................................................12
3.3. Types of data and source.....................................................................................................12
3.5. Methods of data collection..................................................................................................13
3.6. Methods of data Analysis....................................................................................................13
References.........................................................................................................................................14
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CHAPTER ONE
1. INTRODUCTION
1.1 Back ground of the study
It is widely accepted that organizations’ and their employees’ done of live in vacuum separated
from their cultural surroundings. To start with national culture asset of values, attitudes and
behaviors, includes also those which one relevant to work and the organization. These are carried
in to the work place, as part of the employee’s cultural baggage.
Organization culture represents a common perception held by the organization members. This will
be made explicit when we defined culture as a system of shared meaning we should expect, there
for, that individual with different backgrounds or at different levels in the organization, (Robbins,
2005). Moreover, the human aspect of an individual is the primary and most valuable asset that
provides integrity and cohesion to other financial, Martial and information resources. Success and
prospering of an organization can be achieved through the efficient and effective contribution and
each individual employee to the smooth running of organizational operation.
It is probable that, no element of organization dimensions received more attention in recent that
organization culture which relates to all the element of the dimensions directly or indirectly.
Supervisors and managers need to achieve coordinated behaviors. To achieve coordinated
behavior, managers engage in activities intended to plan organize, lead and control behavior. Too
often, organization culture of most organization and is faced with two basic problems these are the
existence of culture that doesn’t match with the changed strategies and environment of the
organization. Weakness of this type of culture to more employees effectively committed to their
organization and the difficulty to change this strangely held culture by the management and old
members of the organization (Thokozani, 2017).
To solve the organizational problems that came due to the presences of negative employment
relationship the case for this are organizational culture, behavior and belief.
In many cases critical appraisal of organization culture will discloses serious deficiencies. That is
why the study is needed to be conduct in order to solve this problem ( Ravasi& Schultz, 2006).
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As stated earlier, organizational culture may influence employees’ commitment. Different
researchers measure employees’ commitment in different dimensions but in this study employees’
commitment is conceptualized along the following dimensions. These are: quality quantity,
timeliness, cost-effectiveness, need for supervision and interpersonal relationships (Benardin and
Russell, 1995).
Employees are the most important determinants and leading factors that determine the success of
an organization in a competitive environment. This is especially true for service organizations like
banks that rely heavily on their good behavior of employees to provide courteous services to their
customers in this competitive environment. There will be significant research in the literature to
explore the effect of organizational culture on employee commitment and productivity. For
instance, organizational culture would be used for measuring economic performance of an
organization. However, organizational excellence would be varied since cultural traits would be
source of competitive advantages through causal ambiguity. (Barney, 1991).
The world is changing rapidly and the level of employee expectation and satisfaction also will be
changed accordingly. This study therefore took into consideration how organizational culture
adapts overtime to cope up with dynamic changes and would meet the varying demand of
employee expectations and satisfactions. Therefore a supportive culture is considered as a
motivational instrument promoting employees to perform smoothly and ensures better
productivity. (Ritchie, 2000). Therefore this study would sight to examine the relationship between
role of organization culture and employee commitment in the case of selected commercial bank
of Ethiopia Kawo Gobe branch.
1.2 Statement of the problem
Organization culture can act as a boundary that differentiates one organization from the other. This
may encourage employee’s sense of identity. But ensuring the smooth and good functioning of any
organization in competitive environment is highly challenging task. This task requires good
knowledge the existing values, norms, beliefs. Practices and method that makes the core of
organization culture, most of employee as well as managers don’t give enough attention to it.
Regardless of its significance to increase employees’ commitment and the emphasis it gets on
business literature, the research found little or no evidence on impact of organizational culture of
banks. The researcher believes that as the number of banks increase in Ethiopia, it is valuable to
study the effect of their organizational culture to get evidence on how the banks can be
characterized along organizational culture dimensions. Practically, having a strong culture doesn’t
mean that employees are best performers or a weak culture doesn’t exactly indicate that employees
have poor commitment. So, it is also useful to assess employees’ perceived commitment and how
it is related to the banks’ organizational culture.
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1.5. Significance of the study
The study created awareness among lower level employees, higher level employees and other
member of the bank about the need of effective and strong organization culture. This study
expected to be used as a tool for taking some measure of the commercial bank of Ethiopia Kawo
Gobe branch, if there is bad culture.The investigations also hope that, the finding of this study will
provide support to other researcherwho will be interest to conduct further study in the area as a
national level.
The study will provide information for commercial bank of Ethiopia Kawo Gobe branch about
what are the effects of organizational culture on employee commitment. It will use for the
employee of commercial bank of Ethiopia Kawo Gobe branch to check their day interaction with
the organization.It will use for the researcher, to get experience and to get BA degree in general
management.
1.6. Scope of the study
The study will be focused on only one aspect of organization dimensions which is organization
culture and employee commitment specifically commercial bank of Ethiopia Kawo Gobe branch.
This study will be focused on assessing organizational culture and its relationship with employees‟
commitment in the organization under study, Kawo Gobe Branch. Even though there are different
work related factors such as job satisfaction, employee reward system, employees‟ motivation,
employees‟ engagement and others which might have either positive or negative relationship with
employees‟ commitment and influential impact on it, this research work assessed only one factor,
i.e. organizational culture.
1.7. Limitation of the study
While, constraints of time, research budget, and logistical problems are considerable limitations on the
scope, coverage, and sampling size of the proposal as well as the study mainly limited
This study will be used report assessment of the employees’ performance to measure employees’
commitment which may have some degree of subjectivity. Culture can also be better understood
will be involved qualitative data. Although interview will conduct with human resource managers
of the banks, it can have been better if the interview responses are deeper and broader enough and
have focus group discussion to gather data on each dimension of the organizational culture and
commitment.
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CHAPTER TWO
2. LITERATURE REVIEW
2.1 Definition of organizational culture
Organizational culture is a term that is used to refer to a system of shared meaning held by
members that distinguishes the organization from other organization. It is concerned with “how
employees perceive the characteristics of an organization’s members”. The excitation is that
individuals with different background or at different levels in the organization will tend to describe
the organization’s culture in similar term. This does not mean that “there can’t be subculture with
in any given culture. Most large organizations have and numerous sets of subculture” (Robbins,
2005).
It is elusive, intangible, implicit, and taken for granted but every organization develops a core set
of assumptions, and implicit rules that govern day-today behavior in them workplace. They explain
it impact this way:” until new comer learn the rules, they are not accepted as fully fledged
members of the organization” and high light the fact that the punishment is psychological, in that,
trans cessions of the rules on the part of high-level executives or front line employees result in
universal disapproval and power full penalties, while conformity to the rules becomes the primary
basis for reward and upward mobility (Robbins, 2005).
Organization are characterized by their goal oriented behavior, and they pursue goals and objective
that can be achieved more efficiency and effectively by the concerted action of individual and
groups. Organizations are more than means for providing goods and services. They creates the
setting in which most us spend our lives. In this respect, they have profound influence on our
behavior (Ivacevich and Matteson, 1990).
Even though organizations are more than means for providing goods and services, but we cannot
conclude that all behavior exist in the organization are not goal oriented. It is difficult to define
organizations culture, because of its close interdependence with other dimension.
There are many definition of organizational culture that is given by different individuals.
Organizational culture is the set of shared assumption, values and norms that identify what the
organization considers important and how employees in judge manager should be have (Neo, et
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AL 1996). Yes organizational culture is the set of shard attributes that clear show the identity of
the organization that use to differentiate one organization to another.
Personal enactment: - is the behavior that reflects the organizations culture through the
examination of the behavior of organization’s members. It is behaviors that reflect the
organization’s value.
Ceremonies & rites: - are relatively elaborate set of activates that are enacted time and again on
important occasions.
Stories: - “they are accounts of post events that events that illustrate and transmit deeper cultural
norm” (Singh and Chhabara, 2002).
Rituals: - is “actions that are repeated regularly to enforce culture norms and values’ (Singh and
Chhabara, 2002).
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2.4.1The Bureaucratic or Role Culture
Those organizations have a formal structure, and operate by well-established rules and procedures.
Job dos creation establish definite tasks for each person’s job and procedures are established for
many work routines, communication between individuals and departments, and the settlement,
disputes and appeals. Members of the organization cultural “do things right, but not necessarily
during their things. The organization structure defines authority and responsibility to individual
managers, who enact the role of expected their position.
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strength of an individual‘s identification and involvement in particular organization. Also it can be
defined by the following three factors.
Again as an attitude, commitment is distinctly different from the concept of job satisfaction is
commitment reflect a general affective response to the organization as a whole and the other hand,
job satisfaction reflects” “a pleasure or positive emotional state resulting from the appraisal of
one’s job or job experience” commitment is more stable than job satisfaction.
Commitment attitude develop slowly over time, were as job satisfaction attitudes are viewed
immediate reaction to work, pay promotion opportunities, supervision and ex-workers same
employees strongly identify with the organization and feel attached to it attitude of an employee
commitment is linked to overlooking minor sources of dissatisfaction and effecting to be a member
of the organization. Strongly commitment employees also are likely to view themselves as truly
member of the organization. In contrast: low employee commitment is associated with
dissatisfaction and to an expectation to leave the organization.
People who lack commitment to their organization are likely to be absent from work and quit their
job they want to view the organization as same thing a part from themselves (Specters, 2000) an
the other hand, employee commitment is not only the function of the above things that described
by the specters, but also employee comment is a function of employee beliefs in future payoffs,
fulfillments of debt to the organization, strong identification with the employees,” and lack of job
alternatives resulting in limited mobility.
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willingness to work hard, desire to stay with the organization. It encompass locality, but it is also a
deep concern for the organization welfare. Also if viewed as a three component on emotion
comprising identification with the goals an devalues of organization, high involvement in work
activates, and loyal attachment to the organization (Nelson & Quick, 1997), but better definition is
given by another, affective commitment is defined as in terms of internalization of the
organization’s values, willingness to put in strong effort towards helping the organization to
achieve its goals and a strong desire to keep membership of organization (Specter, 2000). It is
better definition in terms of broad coverage.
2.5.3 Continuance Commitment
It is employees’ tendency to remain in an organization because of the person cannot afford to
leave. That means same employees stay in the organization, if they leave; they will lose a great of
their investment in time, effort and benefits. And they cannot replace this investment. The
individual believes that he has invested as a great deal of effort or time and to remain in the
organization.
Because of the obligation he or she has. Example of an organization is layout to the employee or
has supported his/her educational efforts the employee may report higher digress of normative
commitment. Affective commitments tend to be most highly related to these outcomes. A review
of the research supports that researchers have typically focused on organizational outcomes and
correlated of commitment. However, more recently researchers are beginning to examine more
individual level correctives of affective commitment like steers, week beings & work formally
conflict (Meyer et Al 2002).
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members enhances both implementation process and employee commitment. Similarly, 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. Similarly, Ghorbanhosseini,
(2013).
Found out that there is a significant relationship between employee involvement and
organizational commitment. Singh and Varghese (2015) found out that there is a significant
positive relationship between employee empowerment and organizational commitment. by
involving them in the decision making process of the organization to a certain extent can ensure
employee’s continuous involvement thus employees feel to be participative in the organization
Furthermore, Asghar, Mojtaba and Sadeghi (2015), found out that involvement is one of the most
important dimensions of organizational culture and it has great role in fulfillment of employees'
commitment of teachers. This shows that people participation in work helps their intention to stay
in work space. The employees‟ involvement means using them in decision making and this leads
to the stability of their commitment.
Moreover, a study carried out in Bank Saderat Iran shows that there were positive 17 relationship
between Involvement and Employees‟ Commitment Bani et al(2014).study conducted in Bayelsa
State Civil Service found that there is a significant relation between involvement and employees’
commitment Sunarsih and Mashithoh (2016) found of that involvement and employees
commitments significantly relationship.Agwu,M, (2013).
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CHAPTER THREE
Sodo (Amharic: ሶዶ) or officially Wolaita Sodo (Amharic: ወላይታ ሶዶ, Wolaytta: Wolaytta
Sooddo) is a city in south Ethiopia. The City is a political and administrative center of the Wolaita
Zone and South Ethiopia Regional State. It has a latitude and longitude of 6°54′N 37°45′E with an
elevation between 1,600 and 2,100 metres (5,200 and 6,900 feet) above sea level. It was part of the
former Sodo woreda which included Sodo Zuria which completely surrounds it.
Sodo's amenities include digital and mobile telephone access, postal service, 24 hour electrical
service, two banks, and a hospital. Sodo is also the seat of the Roman Catholic Apostolic
Vicariate of Sodo-Hosaena.
3.2. Research Design
The researcher will be believes that explanatory research design is appropriate for
the study because the study will be concerned with finding out the effects of
organizational culture on employee commitment on the basis of quantitative
approaches.
3.3. Sampling technique
The study will includes all employees from 34 of 27 respondents will be selected from commercial
bank of Ethiopia Kawo Gobe branch. This will be done through random sampling techniques for
the study to give equal chance for all. To conduct the interview, one branch manager, two
supervisors from the bank selected using purposive sampling technique. The interviews will be
requested based on their position and experience in the banks.
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3.5. Methods of data collection
In the data collection process, a different data collection method will be used on the study. These
methods are varying according to the sources of data that collect.
The respondents who participate in the time of data collection process are educated so, they were
easily written down the answer. To get enough time to do the paper, the researcher will be gather
data from some written materials such as books, company’s recorder files and internet.
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