ADDIS ABABA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF ECONOMICS

SECTION ONE

PRACTICAL ATACHMENT

BY: AYTENEW GIRMAW

ORGANIZATIONAL CULTURE AND ITS ADAPTABILITY BY

EMPLOYEES: (THE CASE OF COMMERCIAL BANK OF ETHIOPIA
SELASSIE BRANCH)

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 TABLE OF CONTENTS
ABSTRACT.................................................................................................................... i
Acknowledgment ...................................................................................................................................i

TABLE OF CONTENTS
Chapter 1...................................................................................................................... iii
INTRODUCTION.......................................................................................................... 1
1.1 Background of the organization...................................................................................................1
1.2 statement of the problem
1.3 Research question............................................................................................................................2
1.4 Objective of the study..................................................................................................................3
1.4.1 General objective..............................................................................................................................3
1.4.2 Specific objectives..........................................................................................................................3
1.5 Significance of the study
1.6 Scope and limitation of the study....................
Chapter 2
LITERATURE REVIEW ............................................................................................... 5
2.1Theoretical review of related literature

2.1.1 Organizational Culture

2.1.2 Value level tow .................................................................................................................................5

2.1.3 Basic underlying assumptions or norms
2.1.4 Dimension (characteristics) of the organizational culture...............................................................6
2.1.5 The role of culture in the organization................................................................................................7
2.1.6 Employees commitment
2.2 Empirical Studies
2.3Literature gap
Chapter 3
RESEARCH METHODOLOGY..................................................................................... 10
3.1 Description of the study area...............................................................................................................10
3.2 Target population ..............................................................................................................................11
3.3 Research design ................................................................................................................................11

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3.4 sources and types of data.....................................................................................................................11
3.4.1 Types of data....................................................................................................................................11
3.4.2 Sources of data.................................................................................................................................11
3.5. Sampling techniques and sampling size.............................................................................................11
3.6. data collection instruments................................................................................................................12
3.7 methods of data analysis and presentation
3.7.1 Operational meaning of variables
3.7.2 Methods of data analysis
3.7.3 Hypothesis testing

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ABSTRACTION

In today’s world business environment the banking industry plays a major role in the
development of any nation and this study is designed to assess the organizational culture and its
adaptability by employee in commercial bank of Ethiopia Selassie' Branche. The mainobjective
of conducting this study is to deal with the different problems related organizational culture to
investigate the possible relation between workers and managers. The relevant data were
collected form primary and secondary sources through the census survey method.The tools of
data collection were questionnaire for employees and structured interview for manager of
organization. The secondary data were collected form published and unpublished materials
which are available in organization. The study population would be 52 of 24 females and 28 of
males employee and all of them were selected as a sample. The data collected through
questionnaire and interviews were processed through descriptive analysis.Finally conclusion is
made and the possible recommendation was forwarded.

Acknowledgment

First of all, my gratitude goes to almighty GOD. who has helped me on all of my life and whose
offerings, forgiveness and mercy has been with me. Second, I would like to express my deepest
gratitude to the bank manager Mr.Girma Tadese for his cooperation and comments, suggestion
and constructive advice on my practical attachment. Next, my deepest thanks goes to my friends
who supported me for their constructive advice.

CHAPTER ONE

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 INTRODUCTION
1.1 Background of the organization
Commercial Bank of Ethiopia (CBE) is one of the oldest public banks established in 1942 as a
State Bank and was legally established as ashare company in 1963. Since then, CBE has gone
through different reforms and mergers coming out as one of the most reputable and biggest
commercial banks in the country. Currently It has more than 35 million account holders in its
1838 branchs and the number of mobile and internet Banking users reached more than 5.5
million as of Jun 30,2022.active ATM card holders reached more than 7.7 miliion.individual
depositors, small and medium scale businesses and private and public mega investment
projects has made it the largest single bank in the country to have a significant impact on the
economy of the country.
CBE(Commercial Bank of Ethiopia ) has its own vision and mission,To become world class
commercial bank with reduced environmental footprint, leading by example in 2025 is its
vision and realize stakeholders’ needs, Enhanced financial intermediation globally,
supporting national development priorities, deploying highly motivated, skilled and disciplined
employees as well as state-of-the-art technology is its mission.the commercial Bank of
Ethiopia has its organaizational culture and employees take trainings before enter to service
first should adapt the organization culture. Organization culture is the concept a developed by
research to explain the values, psychology attitude, belief and experience of the organization.
Generally speaking, it is viewed the shared norms and values of the individual and groups
within organization. Through this set of mutual understanding , organizational culture control
the individual interact with each other within the organization as well as with customer
supplier and the other stock holder existing outside the boundaries of the organization (Steven
Mc Can, 2005 ). Organizational culture is the collection of values, expectations, and practices
that guide and inform the actions of all team members.
The manager and executive with an organization have a significant role on the culture
because of in making decision but they are not the only member of work community ,in reality
all employees contribute of the culture in the environment of the work place is the result of
weakness , strength , life experiences and education of in very one who is part of the
organization work force ( Steven McCann, 2005).

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Since, organization culture involves shared expectation, values and attitude, its expert influence
an individual, groups and organizational process. For example, member is influence to be good
citizens and to go along. Thus, if quality customer services important in the culture then
individual are expected to adapt this behavior. Thus if on the other hand adhering to a specific
set of the producers in dealing with the customer is the norms then this types of behavior would
be expected , recognized and rewarded.Researchers who suggested and studied adaptability of
culture on employees indicate that in provideds and encourages by an organizational culture is
able to attract,develop and retain top quality employees because of the firm stability and the
pride

1.2 statement of the problem

Like other organizations in CBE( Commercial Bank of Ethiopia) it is challenging task to

ensuring smooth and orderly functions. Employee are most valuable to be coming enemies of
the adaptability during the on brooding process, a time when they are blank slates seeking to
understand both an organization informal culture and formal expectation .Yet organization
obtain fail to address adaptability during on boarding, leading to incorrect conclusion and a
missed opportunity. When an organization failed to address adaptability during on boarding,
new employees may come to understand whether accurate or nations revolve around fear of
failure (mesh an and Glints, 1994).

Such a conclusion can be reached at the organization levels and draw during on boarding,
through a new employee’s predilection of organizational culture. One of the first experiences
with the larger organization to failure can easily be interpreted by new employees as disinterest
innovation and fear of failure .With their drive try to and to fit in to organization culture, not
saying anything about adaptability or experimentation during the on boarding process still
says something to new employee and the will be particular sensitive to the message, such as
conclusion at the individual level could be reached during on boarding or even in early work
interaction .

In instance, formally interaction with an agent of the organization (such as, an manager or on
boarding trainer) may convey expectation of an employee that them to support or even

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encourage caution, rigidity and fear of future. Organization point of view different organization
have efficient service, delivery, mismatch between worker sill and new technology lack of finance
adapt new technology and when we see employees point of view of the organization gives high
priority relative, bank of the vertical and horizontal condition between employees (annual
report of commercial bank of Ethiopia ,1992).

1.3 Research question

This study was answered the following question
1. What is the existing culture of commercial bank of Ethiopia of selassie branch?
2. How much the existing employees are committed to the organization?
3. What is importance of organizational culture for employees on the performance?
1.4 Objective of the study
1.4.1 General objective
The general objective of this study is to assess the organizational culture and its adaptability by
employee in commercial bank of Ethiopia of Selassie branch.
1.4.2 Specific objectives
1. To identify the existing culture in commercial bank of Ethiopia of Selassie branch .

2. To find out the degree extent of employees adaptability to the organization .

3 .To examine how organizational culture affects and guides the behavior of employees.

1.5 Significance of the study

This study will be essential for the bank,and for other researchers to use it as reference for the
further study.It helps an organization to reduce the give problems through using solution that
obtained from this study. This study also helps new research organizations and the other
concerned bodies. For the concerned bodies it will help associates economic development
though giving recommendation on other draw.

1.6 Scope and limitation of the study

Although, CBE(Commercial Bank of Ethiopia) have more than 1800 branches trough out the
country,the study focused only in commercial bank of Ethiopia of selassie branch which is
located Addis Ababa in arat killo.the research focus only the assessment of organizational
culture and its adaptability by employee on commercial bank of Ethiopia and it may not

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represent the other factor that affect commercial bank of Ethiopia of selassie branch. The other
things are that might get match information from the different branches through different
sources. There for this study focused only commercial bank of Ethiopia in Selassie branch.

2. CHPTER TWO

Literature review

2.1 Theoretical review of related literature

2.1.1 organizational culture

Organizational culture is generally understood as all of a company’s beliefs,

values and attitudes, and how these influence the behaviour of its employees.
Culture is transmitted to the organization’s employees by means of communication
network, socialization, training, rites and rituals and symbols. Schein, 2011 stated
that organizational culture is the set of shared beliefs, values, and norms that
influence the way the employees think, feel, and behave in the workplace. As per
Nelson & Quick, 2011 organizational culture has four functions. That includes
‘giving sense of identity to members, reinforcing organizational values, increasing
the commitment, and serving as a control mechanism for shaping behavior.
Leaders shape culture by what they pay attention to, how they allocate rewards,
how they behave, and how they hire and fire individuals. Sometimes organizations
must change their culture. Leaders can do so by helping current members to buy
into a new set of values, by socializing newcomers into the organization. Kotter
2012 stated that organizational culture has the potential to augment the
organizational performance, the sense of certainty about problem solving ability
and employee job satisfaction. Burns & Stalker, 1961; Burt, Gabbay, Holt &
Moran, 1994 stated that based on what we know about culture-performance

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relationships, a contingency approach seems to be a good one for leaders to adopt.
If an organizational culture becomes incongruent with the changing expectations
of internal and/or external stakeholders, the organization’s effectiveness can
decline as has occurred with some organizations (Ernst, 2001). 9According to NOE;
(1996) culture is set of shared assumptions, values and norms that identifies what the
organization consider and important how employees in the doing manager should have. Culture
is the system of share values and belief that produce norms of behavior (Smirch, 1983).
According to Anglo kinkiness (1992), culture can be the style of dress they use jargons that are
suitable and used for the task of the organizations ways of doing things. It expresses social ideas
and beliefs that the organizational member come to share manifests in symbolic devices such as
myth, rituals, legends stores and specialized language. Mesh and Diclinous(2000), tried to
define the organizational culture in the way that the basic pattern of shared assumption
values beliefs governing the was employees within organization think about set on problems
and Opportunities Many definition of organization culture has been proposed, almost all of
them states that there are different ingredient that constitute as the organization culture (nelson
and Quick, 1997) Culture involves there levels. These levels range from visible artifact and
creation to testable values and even precious basic assumptions.Artifact are the organization
visible structure and process they are what the observer as see, hear and feel about in
organization ( Wrightnose,1996). This includes an organization physical environment, its
technology and products that employees dress behavior toward one another stores they tell
about organizational and its leaders. Mesdames nag Glico ( 2001) define artifact at the“ the
observation symbol and sign of an organizations culture including its physical structure
ceremonies, languages and stores “ personal enactment is the behavior that reflects the
organization culture through the examination of behavior that reflects the organization culture
through the examination of the behavior that reflect the organizations culture .

2.1.2 Value level tow

Value is things that the members of an organization collectively see as important and with
consequently tend to guide their behavior Sandler (2002). Every organization has a distinctive
set of the values spoken and un spook, which any guide how people interest in the
organization . Although there might not always be universally accepted set of standards,

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nevertheless most of the people working in the organization see the have pert good idea of
what the culture at large considers important many or the is values, standard s seem from the
words and deeds of the management in their day to day operation ( Singh and chbahar, 2002).
Value has to do with how much something is worth, either in terms of cash or importance.

2.1.3 Basic underlying assumption or norms

This is at the core deepest level of an organization culture. According to ( Wright and noel ,
1999) basic underline assumption defined as “ shared views that are taken for guaranteed
and considered as on negotiable . The members of the organizational may not be
aware of their assumption and may not be unwilling or unable discusses them or change
them ( nelson and quick 1998 ). Norms are a “social contract” that supports a group’s
collaborative work. In this article, learn more how and why to use norms to support trust and
risk taking, two important aspects of productive collaborative work.

2.1.4 Dimension (characteristics) of the organizational culture

Even though culture may not be immediately observable, identifying a set of values that might
be used to describe an organization’s culture helps us identify, measure, and manage culture
more effectively. For this purpose, several researchers have proposed various culture typologies.
One typology that has received a lot of research attention is the organizational culture profile
(OCP), in which culture is represented by seven distinct values (Chatman & Jehn, 1991;
O’Reilly, Chatman, & Caldwell, 1991). We will describe the OCP as well as two additional
dimensions of organizational culture that are not represented in that framework but are
important dimensions to consider: service culture and safety culture. Organizational culture has
its characteristics dimensions that are interdependent on each other. The presence of this
dimension used to understand the organization culture. Moreover, culture should have distinct
characteristics that can be defined and measured. When we combine and see this dimension and
use for the differentiating one organizations culture for mother (Robbins, 1995).

2.1.5 The role of culture in the organization

Organizational culture plays important role in the organization it has a culture that meet its
operating environment. According to sign and cobra (2000), culture casernes to critical function
in the organization. The first role is creates internal integration in the organization. In
addition, it shows acceptable and what is not acceptable behavior in organization is. This lead

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them collecting identify and know how to work together effectively to meet the organization
objectives and response rapidly to customer needs and the moves of the computation. Finally the
organization culture can act as a boundary that differentiates one organization form the other.
This may encourage employee’s sense of identity. If it is strong accept by numbers it generates
commitment to the organization and can act as a rule and regulation control mechanism.
Because this is not like a written rules and regulation rather if it is mind rules benefit that
performance people to behave (Robbins, 1999)

2.1.6 Employees commitment

The most widely accepted and used definition for commitment is that of porter, stress Monday
and Boolean( 1994) which state that commitment the relative strength of individual identification
and involvement in a particularorganization Commitment is the bond employees experience with
their organisation. Broadly speaking, employees who are committed to their organisation
generally feel a connection with their organisation, feel that they fit in and, feel they understand
the goals of the organisation. The added value of such employees is that they tend to be more
determined in their work, show relatively high productivity and are more proactive in offering
their support.

2.2 Empirical studies

many studies in literature committed to organizational culture in the banking industry.Alharbi
Mohammad Awadh. (Mar 2013) stated that different values and beliefs based upon employee
performance helps in organization association. The organization culture helps in internalizing
joint relationship that leads to manage effective organization processes. The job performance of
organization has a strong impact of strong organization culture as it leads to enhance
productivity. Anuradha Reddy (Oct 2011), stated that culture is the best way in which group of
people solves problems and reconciles dilemmas and Inter culture communication is essential
for exchange of ideas and emotions. Bhumika Raval (Jul 2016) concluded that trustworthy
culture, work security, employee welfare activities have positive impact on employee satisfaction
and

career growth11.Raza, Mehmood Anjum and Syed Muhammad Zia. (Apr 2014) revealed that
organizational culture impacts the performance and productivity of organization significantly.

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The research also identifies that employees are the most integral instrument of the organization.
Khan MA, Afzal H, Chaudhry IS, Khan MFA. (2010) established strong positive relationship
between mission and organization performance. Olu, O. (Aug 2009) identified that corporate
culture is an essential element in every organization and it has positive impact on employee’s job
performance. The research also revealed that corporate culture has impacts organizational
productivity. Olu.O. also found a positive relationship between organizational culture and
employee job performance.

12Luftim Cania. (2014) revealed that human resource practices enable the organizations
possessing their employees with the right skills and positioning the employees according to the
level of their skills and qualifications. Luftim has also forced the organizations to understand the
expectation of the employees, so that employees show their skills, motivational level and behave
in a manner required by the company to reach the performance. Naveed Ahmad, Muqadas
Jameel. (2016) revealed that HRM practices such as recruitment, career growth and job security
have significant association with employee performance and work fulfillment. Nongmaithem
Robindro Singh. (2016) found an association between human resource practices and
organizational performance. Osibanjo Omotayo Adewale, Adeniji Adenike Anthonia. (Dec 2013)
examined a positive association between human resource practices such as recruitment and
selection; training and development; compensation; and performance appraisal and
organizational culture attributes (value, belief, and practice).

2.3. Literature gap

As I saw the related literature the whole findings revealed that there is a strong relationship
between managers and employees. And a good culture is essential for the success of any
business organization. But the researcher understood the difference between perception by
management and the role of culture. This would occur if the organization's management actually
understood the organization culture needs but the management failed to implement the cultures
correctly in order to guide the employee in aproper way . So in this study, the researcher fills
this gap and gives insight.

CHAPTER THREE

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3. RESEARCH METHODOLOGY
In this chapter clearly describe and answer the question of where the study will focus on, the
type of data and source of data, the population, how the sample will be drawn from, and
technique of data collection will be used, and also describes what methods will be used to
analyse and interpret the data’s. And finally the chapter will discuss the reliability of the
research

3.1Description of the study area

Selassie branch is one of the the part of CBE(Commercial Bank of Ethiopia) in Addis Ababa
around arat killo near to st.slassie church. There are many commercial bank of Ethiopia in
Addis Ababa and selassie branch is one of the part of CBE. and Addis Ababa is the capital city
of Ethiopia. in these branch there are 52 employees and manager.

3.2 Target population

Target population of this study was all employees and managers of the organization in
commercial bank of Ethiopia in selassie branch. Total population in this organization was 52.
The researcher was used censuses survey method, because of the small numbers of the
employees.

3.3 Research design

The researcher was used descriptive types of research. Because of descriptive study under
taken in order to ascertain and able to the properties of variable of interest in situation. Quit
frequently will be undertaken in the organization to describe the properties of a group of
employees. And also to understand the characteristic of the organization that follows certain
common practices.
3.4 sources and types of data

3.4.1 Types of data

The researcher were used both qualitative and quantitative types of data for this study.

3.4.2 Sources of data

To conduct this study the researcher was used both primary and secondary sources of data.
Primary data source has been collected from respondents through distributing questionnaire,
asking interviews that either written or oral. Secondary sources of data were gathered from the

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documented data about the organization which is published and unpublished materials records
and documents of the organization.

3.5. Sampling techniques and sampling size

To determine the study the researcher were uses only census survey methods due to small
number of total population. There for, no need to take either probability or non probability
sampling method. Total population in the organization was 52.

3.6. Data collection instrument

There are different methods or tools of data collection. For example interview focus group
discussion, books questionnaire and observation. But for this research, the researcher will use
both close ended and open ended questionnaire and unstructured interview to collect data. For
open ended questionnaire the respondents were asked to support their own judgments and for
close ended questionnaires the respondents were asked to select their own answer for the given
list.

3.7 Data processing and analysis

3.7.1 Operational meaning of variables

A. Explanatory variables

Variables that determine or influence the dependent variables or the cause and the values are
independent of the other variables in the model.These are different explanatory variables which
related with emplooyees behavior.

A. Expactation; refers to employees expect to be treated with respect to be paid equitably to trust
and be trusted by the people they worked with.

B.Attitude; the positive or negative display of motivation on an employee show.

C.Rewared; a more tangible form of appreciation to employees from the managers or their
leader.

D.Recognition; the act of publicity acknowledging employee for who they are and what to do.

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E.Value; employees exhibit dedication and use their skills and attitudes to positively influence
their work enviroment.

B. Dependent variables

These are variables that are determined by other independent variables or the values are
measured by the change in the independent variables.

3.7.2 Method of data analysis

A. Descriptive analysis
Descriptive statistics frequency and percentage mean, and standard deviation will be used to
present socio-economic factors, independent variables and for the level of customer satisfaction.

B.Quantitative analysis
OLS regression model will be employed to determine the major factors that influence CSAT.
According to Pohlman (2003) OLS models the relationship between the explained and
explanatory variables. Before estimating the model, it is better to check the validity of the
model. To this, tests for melticollinearity test. To test this problem the researcher use variance
inflation factor (VIF). As a rule of thumb, if the value of VIF greater than 10, then there will be
multicollinearity problem. If not, there is no problem. In linear regression model the dependent
variables are expressed as the linear combination of independent variable plus error term. In
this way the model expressed as:

Y= β0+ β1x1 + β2X2+ β3X3+ β4x4+ β5X5+ Ɛ

Where: Y= Employees adaptability in CBE

Β0 = the Constant term Employee of CBE

X1= Reward

X2= Value

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X3= Recognation

X4= Attitude

X5= Expectetion

Where the βs are coefficients of independent variables, Xs are column vectors for the
independent variables in this case; rewared, value, recognition , attitude , and expectation and Ɛ
are a vector of errors of prediction. The errors terms are assumed to be normally distributed
with a mean value of zero and a constant variance.

3.7.3 Hypothesis testing

After estimating the value of parameters the researcher will be employed hypothesis testing
using the appropriate method. The hypothesis as follows: -

H0: Rewared has no influence on EADAT. Where, H0: = 0, H1: ≠0

H1: Rewared has influence on EADAT.

H2: Value has no influence on EADAT. Where, H2: =0, H3: ≠0

H3: Value has influence on EADAT.

H4: Recognition has no influence on EADAT. Where, H4:=0, H5: ≠0

H5: Rrcognition has influence on EADAT.

H6: Attitude has no influence on EADAT. Where, H6:=0, H7: ≠0

H7: Attitude has influence on EADAT.

H8: Expectation has no influence on EADAT. Where, H8:=0, H9: ≠0

H9: Expectation has influence on EADAT.

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After testing the hypothesis the researcher know the significance of the two variables.If failed to
reject the null hypothesis then the independent variables are insignificance in determining the
influence. But if failed to reject the alternative hypothesis, then the independent variables are
significant in determining the influence.

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