The Effect Of Organizational Culture On Employees Engagement The Case Of Awash International Bank S.c

The core objective of this study was to examine the effect of organizational culture on employees’ engagement in Awash International Bank S.C. Organizational culture was used as an independent variable in the conceptual framework, while employee engagement was used as a dependent variable. Four research questions and four hypotheses were developed to attain the goal. Organizational culture was more expressed using specific culture types such as clan, adhocracy, market, and hierarchy culture. With a quantitative research methodology, both descriptive and explanatory or causal study designs were used. Cronbach's alpha was used to assess the questionnaire's reliability and internal consistency. Closed-ended questionnaires with 41 statements on a five-point Likert scale were used to collect the data. The study used a target population of 3088 people and a sample of 342 people, of which 326 (95.3%) were returned. SPSS was used to analyse the data (version 24). The data was analysed and the results were interpreted using descriptive and inferential statistics. According to a Pearson Correlation analysis, there was a statistically significant positive association between employee engagement and all four organizational culture types (clan, adhocracy, market, and hierarchy). Moreover, the regression result revealed that all the four culture types measuring organizational culture were found to have their own positive and significant effect on employees' engagement. Clan culture was found to be the most contributing organizational culture types in the prediction of employees’ engagement. The remaining three organizational culture types; adhocracy, market and hierarchy culture had significant contribution in predicting employees’ engagements in their respective order. And also the results of regression analysis, it can be concluded that 51% of the variation in the employees’ engagement of the bank can be explained by the organizational culture. Based on the research findings and research conclusions, the bank should observe the organizational culture and should check whether the cultures they have consistent approach to doing business are making their employees more engaged or not. And also the bank should give emphasis to all selected organizational culture types i.e. clan culture, adhocracy culture, market culture and hierarchy culture which had strong influences on employees’ engagement.

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