THE EFFECTS OF ORGANIZATIONAL CULTURE ON EMPLOYEE JOB PERFORMANCE

Abstract

The primary objectives of this research is to investigate the nature and the extent of organizational culture impact on the employee job performance and also to examine the relationship between organizational culture and employee performance in Development Bank of Ethiopia. The study adopted survey research design. The population of the study is the employees of the Development bank of Ethiopia who work at head office. Both primary and secondary data were used for this study, primary data was collected through questioners administered to the selected respondents. Sample size is 25 % of the total population which is N=100. The researcher used organizational cultures variables Power culture, Role culture, Achievement culture, Support culture and other employee performance affecting variables such as performance appraisal, leadership style, remuneration, training and career movements. To analyze the data, the researcher used descriptive statistics and regression analysis (standard multiple regression) and SPSS software was used in analyzing the collected data. The result of the findings shows that the present culture of the Development Bank of Ethiopia is power culture and the preferred culture as is achievement culture. Regression analysis shows organization culture is positively related with employee performance but the effect of the existing culture on employee performance is insignificant. in addition to this, the result of the analysis showed from other employee performance variables leader ship style and remuneration are the major employee performance affecting factors which is significantly affect the performance of employees. Based on the research conclusions made in this study, some recommendations were offered for possible consideration by Development Bank of Ethiopia. Individual employee performance can be improved by strengthening the dimensions of competence as indicators of organizational culture and other employee performance variables. The current organization culture has positive impact on performance but insignificantly effect employees’ performance therefore this culture should be changed to preferred culture of the organization (achievement culture) and the Bank should create an effective and good performance appraisal system, remuneration system and leadership style to enhance employee performance of the Bank.