THE EFFECT OF ORGANIZATIONAL CULTURE ON EMPLOYEES JOB PERFORMANCE IN THE CASE OF BANK OF ABYISSINIA

Abstract

The aim of this study was to examine the effect of organizational culture on employee performance at Bank of Abyssinia (BOA). To achieve the aim of the study, an explanatory research design with quantitative research was used. A target population of the study was BOA employee in Addis Ababa district. In order to conduct the study, a sample size of 240 was drawn from the total population using Yeman's sample size determination formula. Questionnaires were used as the primary data collection tool. To ensure the reliability of the measurement instruments, the Cronbach's alpha test was conducted and confirmed as the data met the criteria for normality. In addition, content validity was utilized to assess the validity of the measurement instruments. Prior to conducting correlation and regression analysis, several classic assumptions of multiple linear regression were tested, including normality, linearity, multicollinearity, and homoscedasticity. The results of these assumption tests indicated that the criteria were met, allowing for further regression analysis to be conducted. Pearson correlation and multiple linear regression analysis were conducted to estimate the causal relationships between organizational culture and employee performance. The findings revealed that each independent: Clan, adhocracy, market cultures, and hierarchy culture had a positive impact on employee performance. Thus, the findings of this study suggests that organizational culture plays a crucial role in determining employee performance levels. As a result, the bank should focus on improving employee performance by actively implementing effective organizational culture types and creating a conducive environment for employees. The study recommends that the organization pay attention to the compatibility of a formalized and structured workplace and periodically revise its rules and policies