MNGT 3
MNGT 3
By:-
SELAMAWIT KIFLE
Advisor:-
YIMER AYALEW (MBA)
MAY, 2014
DESSIE, ETHIOPIA
1
ACKNOWLEDGEMENT
First and for most I would like to thanks Almightily God he has helped me in every aspect of my
life. Next to that I would like to express my sincere gratitude to my Advisor Ato Yimer Ayalew
for his Advise and comment in all of my paper. .
It’s also fact that I would like to thanks my families for their contribution to the success of these
studies to providing me financially and morally support.
2
ABSTRACT
The objectives of this study were to identify the main organizational culture of Dashen bank
and its relation to employee’s commitment, to assess the organizational culture and cheek
their suitability to the employees and to examine the contribution of the existing
organizational culture on the employee’s commitment. In this study the researcher used
collect primary data questionnaire used. Whereas secondary data collected written materials
about the organization. Census used to collect data from employees because of they were few
in numbers. The collected data effectively processed, analyzed and presented by using
percentage and tabulating. The major findings of the study was employee’s to ward doing
their job, conflict tolerance behavior among employees, and the degree of employee’s
commitment to their organization were identified and the possible conclusion and
recommendation was given.
Table of Contents
3
ACKNOWLEDGEMENT...............................................................................................................2
ACKNOWLEDGEMENT
ABSTRACT....................................................................................................................................3
ABSTRACT
LIST OF TABLES...........................................................................................................................6
CHAPTER ONE..............................................................................................................................7
ONE
1. INTRODUCTION....................................................................................................................7
1.1 BACKGROUND OF THE STUDY...................................................................................7
1.2 STATEMENT OF THE PROBLEM...................................................................................8
1.3 Research question..................................................................................................................8
1.3 OBJECTIVE OF THE STUDY.............................................................................................8
1.3.1 General objective of the study........................................................................................8
1.3.2 Specific objective of the study.........................................................................................9
1.4 SCOPE OF THE STUDY.................................................................................................9
1.5 LIMITATION OF THE STUDY...........................................................................................9
1.6 SIGNIFICANCE OF THE STUDY......................................................................................9
CHAPTER TWO...........................................................................................................................11
2. REVIEW OF RELATED LITERATURE.............................................................................11
2.1 Definition of Organizational Culture..................................................................................11
2.2 COMPONENTS OF ORGANIZATIONS CULTURE.......................................................12
2.2 .1 Artifacts and Creations (level one)..............................................................................12
2.2.2 Values (level two).........................................................................................................13
2.2.3 Basic Underlying Assumptions or Norms (level three)................................................13
2.3 DIMENSIONS (CHARACTERISTICS) OF ORGANIZATION CULTURE....................13
2.3.1 The Role of Culture in the Organization......................................................................13
2.4 TYPES OF ORGANIZATION CULTURES......................................................................14
2.4.1 The Bureaucratic or Role Culture.................................................................................14
2.4.2 The Power Culture........................................................................................................14
2.4.3 Task or Matrix or Achievement Culture.......................................................................14
2.4.4 Person or Support Culture............................................................................................14
2.5 EMPLOYEE COMMITMENT...........................................................................................15
2.5.1 Commitment Typologies..............................................................................................15
4
2.5.2 Affective Commitment.................................................................................................16
2.5.3. Continuance Commitment...........................................................................................16
2.5.4 Normative Commitment or Obligation.........................................................................16
CHAPTER THEREE.....................................................................................................................17
THEREE
3. RESEARCH METHODOLOGY..........................................................................................17
3.1 Data type and sours..............................................................................................................17
3.2 Research design...................................................................................................................17
3.3 sample size and sampling....................................................................................................17
3.4 Data collection tools............................................................................................................17
3.5 method of data analysis.......................................................................................................17
CHAPTER FOUR.........................................................................................................................18
FOUR
DATA ANALYSIS OF AND INTERPRETATION.....................................................................18
INTERPRETATION
CHAPTER FIVE...........................................................................................................................28
5. CONCLUSIONS AND RECOMMENDATIONS....................................................................28
5.1 CONCLUSIONS.................................................................................................................28
5.2 RECOMMENDATION.......................................................................................................29
REFERENCE................................................................................................................................30
REFERENCE
APPENDIX....................................................................................................................................31
5
LIST OF TABLES
TABLE NO PAGE
1. Characteristics of respondents………………………………………………20
expectation……………………………………………………………………….22
rules and
regulation…………………………………………………………………..24
reward system.........................................................................……25
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CHAPTER ONE
1. INTRODUCTION
This study tries to address important issues about organization culture, which is part of
organizations dimension. It investigates what the culture and dashen bank dessie branch) is
7
which is important to the development of employees’ commitment in the organization and the
impact of it on the existing level of employee’s commitment.
8
1.3.2 Specific objective of the study
To show how organization cultures affects the behavior of employees.
To identify the main organizational culture of Dashen bank and its relation to employee’s
commitment.
To assess the organizational culture and cheek there suitability to the employees
To examine the contribution of the existing organizational culture on the employees
commitment.
1.4 SCOPE OF THE STUDY
Even though, there are many banks in dessie town, this study was focuses only Dashen bank
since it was difficult t asses many organizations due to time and financial constraints. Moreover,
This study concern only organization culture on employee commitment as it is time consuming
and difficult to assess other different issues in on study area.
9
It was used for the researcher, to get experience.
CHAPTER TWO
2. REVIEW OF RELATED LITERATURE
10
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 culture” and it” represents a common
perception held by the 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 the 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, transactions 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).
Organizations 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 identifies what the
organization considers important and how employees in judge manager should behave….(noe
etal,1996)
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2.2 COMPONENTS OF ORGANIZATIONS CULTURE
Many definitions of organizational culture have been proposed. Almost all of them consent that
there are different ingredients that constitute as the organization culture. Artifacts, values, and
basic assumption are major elements these levels are differs each other in terms of their visibility
and their ability to cheeped. The levels range farm visible artifacts and creation to testable values
to invisible and preconscious basic assumptions (Nelson and Quick; 1997)
12
When we say value, there may have a difference between a company’s exposed values (what the
members say they value) and its enacted values (values reflected is the way the members actually
behave. (Nelson & Quick, 1997).
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2.3.1 The Role of Culture in the Organization
Culture can serve two critical functions in the organization. The first role is it creates internal
integration in the organization. This means that the guides the day-today work relationship in the
organization and determine how people communicate in the organization. The second role is
external adaptation this means how the organization meet is goals and response to outside. If
employees perform their work cooperatively, they can meet the goal of their organization. (Singh
and Chhabara, 2002).
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2.4.4 Person or Support Culture
This types of culture is formed in the organization whose purpose is to save the interest of the
person or the individual within it. The individual is very important and the organization structure
and system are designed to facilitate and support the work of the key individual wealth earners.
Such types of culture exist in partnership of a few individuals who do all the work of the
organization themselves.
15
payoffs, fulfillments of a debt to the organization, strong identification with the employees., and
lack of job alternatives resulting in a limited mobility.
16
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 etal. 2000)
CHAPTER THEREE
3. RESEARCH METHODOLOGY
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CHAPTER FOUR
18
No Items Respons
es Respondents
Number %
1 Sex Male 26 74.29
Female 9 25.71
T 35 100
otal
2 Age(in 18-25 3 8.57
years) 26-33 10 28.57
34-41 12 34.29
42-50 7 20
Above50 3 8.57
T 35 100
otal
3 Education 10-12 8 22.86
al completed 9 25.71
Qualificati Diploma 18 51.43
on Degree - -
MBA
To 35 100
tal
4 Marital Married 27 77.14
status Single 8 22.86
Divorced - -
Windowed - -
To 35 100
tal
5 Work experience 1-3 5 14.29
3-6 7 20
6-9 3 8.57
Above 9 20 57.14
Total 35 100
Source: questionnaire, 2006
As depict in the table-4.1 the distribution of participants based on their sex 26(74.29%) were
male while the remaining 9(25.71%) were female. This implies that majority of the respondents
were male.
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In the same table item number 2 shows on respondent’s age, 3(8.57%) of respondents were aged
18-25 year, 10(28.57%) of respondent were aged 26-33 year, 12(34.29%) of respondents aged
34-41 years, 7(20%) of respondent were age 42-50 year, 3(8.57%) of respondents were age
above 50 year. This implies that majority of the respondents were in between age 34-41.
In the same table, item number 3 shows on respondent’s education qualification, Accordingly
8(22.86%) of respondents were 10-12 completed, 9(25.71%) were diploma holders, while the
remaining 18(51.45%) were first-degree holders, This implies that majority of the respondents
were first-degree holders.
In the same table, item number 4 shows respondents marital status. Accordingly 27(77.14%) of
respondents were married, and 8(22.86%) of respondents were single. This implies that majority
of the respondents were married
Regarding the distribution of the respondents with respect to work experience, accordingly
5(14.29%) of the respondents have 1-3 year work experience, 7(20%) of respondents have 3-
6year work experience, 3(8.57%) of respondents have 6-9 year work experience, and 20(57%) of
respondents have above 9years work experience. This implies that majority of the respondents
served the organization above 9 years
Total 35 100
20
2 Here every body Strongly disagree 13 37.14
works his or her own Disagree 12 34.29
job, no Body cares Neutral - -
about other job Agree 4 11.43
Strongly agree 6 17.14
Total 35 100
Source: questionnaire, 2006E.C
Table 4.2 shows on employee’s autonomy toward doing their job, the research wear asked
respondents whether the initiative to do the work in their own responded no accepted on
employee’s commitment. Accordingly, 6(17.14%) of the respondents were responded strongly
disagree, 13(37.14%) of the respondents were responded disagree, 6(17.14%) of the respondents
were responded neutral, 3(8.57%) of the respondents responded Agree, and the remaining
7(20%) of the respondents were responded strongly agree.
The second item of table 4.2 indicates accordingly every body works his or her own job nobody
cares about other job. 13(37.14%) of the respondents were responded strongly disagree,
12(34.29%) of the respondents were responded disagree, 4(11.43%) of the respondents were
responded agree, and the remaining 6(17.14%) of the respondents were responded strongly
agree. this indicate that the majority of respondents were responded response, 13(37.14%) were
strongly disagree with the existence of here every body works his or her own job nobody cares
about others work.
Total 35 100
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Source: questionnaire, 2006E.C
Table 4.3 indicated that 3(8.57%) of the respondents were responded strongly agree, 3(8.57%) of
the respondents were responded disagree, 10(28.57%) of the respondents were responded
neutral, and the remaining 19(54.29%) of the respondents were responded agree. This indicated
that the majority of respondents were responded agree with the existence of people bring out the
Conflict issue in the open without fear of punishment
Table 4.4 the existence of clear objectives and performance expectation
No Items Respondents
Responses Number %
1 The duties andStrongly disagree 13 37.14
responsibilities attachedDisagree 9 25.71
to our job are not clearly
Neutral 10 28.57
informed to us Agree - -
Strongly agree 3 8.57
Total 35 100
2 I try my best to make a Strongly disagree - -
meaningful contribution Disagree 6 17.14
to my organization Neutral - -
throughout my job. Agree 7 20
Strongly agree 22 62.86
Total 35 100
Source: questionnaire, 2006E.C
The first item of table 4.4 indicate that 13(37.14%) of the respondents were responded strongly
disagree, 9(25.71%) of the respondents were responded disagree, 10(25.71%) of the respondents
were responded neutral, and the remaining 3(8.57%) of the respondents were responded strongly
agree. This indicated that the majority of respondents responds 13(37.14%) were strongly
disagree with the existence of the duties and responsibilities attached to their job are not clearly
informed to them.
The second items of table 4.4 indicate that 6(17.14%) of the respondents were responded
disagree, 7(20%) of the respondents were responded agree, and the remaining 22(62.85%) of the
22
respondents were responded strongly agree. this indicated that the majority of respondents
responds 22(62.86%) were strongly agree with the existence of they try their best to make a
meaningful contribution to their organization throughout their job
Table 4.5 pattern Communication in the organization.
N Items Respondents
o Number %
1 We must communicate in Strongly disagree - -
the organization according Disagree - -
to specified formal Neutral 6 17.14
hierarchy Agree 16 45.71
Strongly agree 13 37.14
Total 35 100
2 We can go to our Strongly disagree - -
supervisors or any Disagree 6 17.14
colleagues at any time Neutral - -
Agree 19 54.29
Strongly agree 10 28.57
Total 35 100
Source: questionnaire, 2006E.C
The first items of table 4.5 indicate that on communication hierarchy, 6(17.14%) of the
respondents were responded neutral, 16(45.71%) of the respondents were responded agree, and
the remaining 13(37.14%) of the respondents were responded strongly agree. This indicated that
the majority of respondents response 16(45.71%) were agree with the existence of they must
communicate in the organization according to specified formal hierarchy.
The second items of table 4.5 indicate that 6(17.14%) of the respondents were responded
disagree, 19(54.25%) of the respondents were responded agree, and the remaining 10(28.57%)
were strongly agree. This indicated that the majority of respondents response 19(54.29%) were
agree with the existence of they are can go to their supervisors or any colleagues at any time. So
this implies that employees of dashen bank have freedom to raise their idea to the
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supervisors/leaders of the organization. This increases employee commitment to organizational
tasks.
Table 4.6 Degree of employees’ behavior control through rules and
regulations.
No Items Respondents
Number %
1 Many rules and Strongly disagree - -
regulation are there to Disagree 3 8.57
guide our activities (what Neutral 3 8.57
are have to dress, talk Agree 19 54.29
etc) Strongly agree 10 28.57
Total 35 100
2 We are told in what way Strongly disagree 4 11.43
we have to behave in the Disagree 3 8.57
organization Neutral 9 25.71
Agree 10 28.57
Strongly agree 9 25.71
Total 35 100
Source: questionnaire, 2006E.C
The first items of the table 4.6 indicate that 3(8.57%) of the respondents were responded
disagree, 3(8.57%) of the respondents were responded neutral, 19(54.29%) of the respondents
were responded agree, and the remaining 10(28.57%) of the respondents were responded
strongly agree. This indicated that the majority of respondents response 19(57.28%) were agree
with the existence of many rules and regulation are there to guide their activities (what are have
to dress, talk etc).
The second items of tables 4.6 indicate that 4(11.43%) of the respondents were responded
strongly agree, 3(8.57%) of the respondents were responded disagree, 9(25.71%) of the
respondents were responded neutral, 10(28.57%) of the respondents were responded agree, and
the remaining 9(25.71%) of the respondents were responded strongly agree. This indicated that
24
the majority of respondents response 10(28.57%) were agree with the existence of they were told
in what way they have to behave in the organization.
Table 4.7 Attitude of employees toward promotion and reward system of
Dashen.
N Items Respondents
o Number %
1 In this organization Strongly disagree 3 8.57
promotion are given Disagree 3 8.57
according to seniority Neutral - -
rather than merit and Agree 19 54.29
ability of employees. Strongly agree 10 28.57
Total 35 100
2 Sometimes we do not Strongly disagree 1o 28.57
know why we have been Disagree 7 20
rewarded. Neutral 25.71
9
Agree 6 17.14
3
Strongly agree 8.57
Total 35 100
Source: questionnaire, 2006E.C
The first items of table 4.7 indicate that 3(8.57%) of the respondents were responded strongly
agree, 3(8.75%) of the respondents were responded disagree, 19(54.28%) of the respondents
were responded agree, and the remaining 10(28.57%) of the respondents were responded
strongly agree .this indicated that the majority of respondents response 19(54.28%) were agree
with the existence of in this organization promotion were given according to seniority rather than
merit and ability of employees.
The second items of table 4.7 indicate that 10(28.57%) of the respondents were responded
strongly disagree, 7(20%) of the respondents were responded disagree, 9(25.71%) of the
respondents were responded neutral, 6(17.14%) of the respondent were responded agree, and the
remaining 3(8.57%) of the respondents were responded strongly agree. this indicated that the
25
majority of respondents response 10(28.57%) were strongly disagree with the existence of
sometimes they do not know why they have been rewarded.
Table 4.8 Degree of employee’s commitment to their organization.
No Items Respondents
Number %
1 I would be very happy to Strongly disagree - -
speed the rest of my life Disagree - -
career with this Neutral 6 17.14
organization Agree 16 45.71
Strongly agree 13 37.14
Total 35 100
2 I really feel that this Strongly disagree 3 8.57
organizations’ problems Disagree - -
are my own Neutral 7 20
Agree 13 37.14
Strongly agree 12 34.29
Total 35 100
3 One of the causes of Strongly disagree 7 20
living in this organization Disagree 10 28.57
is not scarcity of other Neutral - -
job alternatives Agree 9 25.71
elsewhere. Strongly agree 9 25.71
Total 35 100
Source: questionnaire, 2006E.C
The first items of table 4.8 indicate that 6(17.14%) of the respondents were responded neutral,
16(45.71%) of the respondents were responded agree, and the remaining 13(37.14%) of the
respondents were responded strongly agree. this indicated that the majority of respondents
response 16(45.71%) were agree with the existence of they would be very happy to spend the
rest of their life career with this organization.
26
The second items of table 4.8 indicate that 3(8.57%) of the respondents were responded strongly
disagree, 7(20%) of the respondents were responded neutral, 13(37.14%) of the respondents
were responded agree, and the remaining 12(34.29%) of the respondents were responded
strongly agree. this indicated that the majority of respondents response 13(37.14%) were agree
with the existence of they really feel that this organizations’ problems are their own.
The third items of table 4.8 indicate that 7(28.57%) of the respondents were responded strongly
disagree, 10(28.57%) of the respondents were responded disagree, 9(25.71%) of the respondents
were responded agree, and the remaining 9(25.71%) of the respondents were responded strongly
agree. This indicated that the majority of respondents response 10(28.57%) were disagree with
the existence of one of the causes of living in this organization was not scarcity of other job
alternatives where.
Table 4.9 Shows relationship and effect of organization culture on employee
commitment
Respondents
No Items Number Percent (%)
27
related is employee commitment. This implies that organization culture have strong relation with
employee commitment in the organization.
In the same table item-2, respondents were asked whether organization culture have an effect on
employee commitment. Accordingly 2(5.71%) of the respondents were responded strongly
disagree,2(5.71%)of the respondents were responded disagree,3(8.57%) of the respondents were
responded neutral, 7(20%)of the respondents were responded agree, and the remaining
21(60%)of the respondents were responded strongly agree. Majority of respondents were
responded strongly agree with the idea that organization culture have an effect on employee
commitment.
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CHAPTER FIVE
Conflicts are highly discouraged in Dashen bank. This resulted from fear of
disciplinary measure taken on the participants. This increase stress and moral
disasters among employees.
Dashen bank has a highly bureaucratic structure and employees have to follow
and communicate according to the specified line of hierarchy even if form
communication is used to control problems easy for the management
There are problems in promotion and reward system of Dashen bank.
norms that exist in Dashen bank about what do dress, talk and in what way to act
in the organization surrounding has own its problems what the reality is that, not
all rule and regulation or norms are correct
Employees were communicated about organization’s mission, vision goals and
objectives. The knowledge about why the company exists, what needs to achieve
in the future, the duties and responsibilities of each specific position will have
effect on employees feeling of belongingness to the organization but, the main
problem is that the time of communicating these thing, because communicating
organization’s mission, objective and goals are not one time task rather
continuous task until all members of Dashen bank understand the reason why
Dashen bank exist.
Most of the employees in Dashen bank are not effectively committed. Because
effectively committed employees will stay in their organization irrespective of
anything they get in response for their organization. Also most of employees
29
disclosed that, they have stayed in this organization because of absence of other
better job alternatives else were.
5.2 RECOMMENDATION
On the basis of the findings made and conclusions drawn with regard to organization culture on
employees’ commitment a case study of Dashen bank the following recommendations were
given.
Conflicts were highly discouraged in Dashen bank. To overcome this problem, Dashen
bank has better to: encourage functional conflict among employees as well as the
management, of Dashen bank, better to follow participatory kind of decision-making,
providing continuous ethics course. When employees participate in decision making
process a must for rising conflicting idea and this pave for creativity and innovation.
Dashen bank has problem on communication pattern. To overcome this problem the
researcher suggested that: Balancing formal and informal communication because formal
communication consume more time for decision making, Dashen bank, has to permits the
establishment of good labor association, by preparing get together program. Also Dashen
bank has problem on promotion and rewarding system. to overcome this problem by:
Balancing both seniority and ability as a base for rewarding employees based on the
situation, Rewarding employees who perform better than other, because, it lead to
encouraging creativity in the organization.
Dashen bank has own effect with the general rule and regulation to overcome this
problem the researcher suggests that: Dashen bank should change its strict rule and
regulation about how to talk, dress by flexible rule according to interest of employees.
Dashen bank has better to practice the following activities. Provide sound working
environment, give full responsibility to their own specific job, and create a sense of
belongingness by paying their salary match with their effort.
Generally we tray to show the organizational culture on employees commitment
up to these. The other researcher next to these assess widely to the same
organization or other sector.
30
REFERENCE
4. Singh and T.N Chhabra, (2002), Organization Theory and Behavior, DHANPATRAS
and co. (p) LTD, Delhi.
6. Wright Neo.et AL, (1996) Management of organizations, von Hoffman press, Inc, USA.
8. Lioyd L. Byars and Leslie W. Rue (1997), Human Resource Management, 5th Ed USA.
9. Noe, Hollenbeck, Gerhrt wright (2004), fundamental of human resource, 2nd Ed, USA.
31
APPENDIX
WOLLO UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF MANAGEMENT
This is organization study conducting for supporting the researcher senior essay paper entitled as
assessment of organizational culture on employee commitment in dashen bank. Is an aim to get
information about your work life in the organization, The gathered information will be kept
secret and be used mainly for the researcher academic purpose not evaluating your commitment
and take same measure. I hope you will extract your kind cooperation lies with frankly
responding to this questionnaire.
Thank you for in advance
GENERAL INSTRUCTION
Please:-
To maintain confidentiality, please do not write your name or sign anywhere in the
questionnaire
Give your response to all the statement found in the questionnaire.
Kindly do not consult others while responding
Please choose among the alternative and make “x” sign on it. Like this, if you select B.
A B x C D
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4. Marital status A. Married B. Unmarried
C Divorced D. Windowed
5. What is your experience?
A. 1-3 C. 6-9
B. 3-6 D. Above 9
Part II
Below are some statements, which describe the possible feelings and beliefs you may have about
your organization. Please indicate your response by ticking only one of the five alternatives.
33
8. Many rules and regulation to
what we have and to dress, talk,
etc.
9. We are told in what way we
have to behave in the
organization
10.In this organization promotions
are given according to seniority
Rather than merit and ability of
employees.
34