EFFECT OF ORGANIZATIONAL CULTURE ON EMPLOYEES’ ENGAGEMENT: THE CASE OF BANK OF ABYSSINIA

Abstract

The study has sought the effects of organizational culture on employees' engagement in Bank of Abyssinia. The study used quantitative research method and explanatory research design to objectively answer the proposed research questions. Random Probability sampling technique was used to select the employees from the three districts and head office and also proportionate stratified sampling technique was adopted to treat the 360 participants. Out of those, 340 employees have responded. Descriptive analysis, Pearson correlation, analysis of variance (ANOVA) and regression were carried out to analyze the data using SPSS 20. Descriptive analysis was used to determine which culture is dominant in the bank and the level of their engagement and Correlation and Regression analysis was used to assess the effects of organizational culture on the employees’ engagement. The study shows that there is positive relationship between organizational culture (Clan culture, Adhocracy culture, Market culture and Hierarchy culture) and employees’ engagement. Based on the findings, the study recommends that Bank of Abyssinia should empower employees and reinforce team orientations, embrace integration, co-ordination, organizational learning, agreement and core values and they should create competence development to promote employees engagement.