EFFECT OF ORGANAZATIONAL CULTURE ON EMPLOYEE PERFORMANCE: THE CASE OF DEVELOPMENT BANK OF ETHIOPIA WOLITA SODO DISTRICT

Abstract

This research paper discussed the effect of organizational culture on employees’ performance in case of Development Bank of Ethiopia. The objective of this study was to investigate the effect of four organizational culture traits namely, involvement, consistency, adaptability and mission on employee performance in Development Bank of Ethiopia (DBE). The thesis adopts explanatory research with quantitative research approach. Data for the study was collected from 84 employees by census, using survey questionnaire. Both inferential and descriptive analysis are used to see the relationship and effect of independent variables on dependent variable. The results show that the four traits measuring organizational culture were all positively related with employee’s performance. Moreover, involvement is the most contributing organizational culture traits in the prediction of employee performance with beta value .654. The other three organizational culture traits, in their descending order of standardized coefficients are mission, consistency and adaptability. Furthermore, statistically significant result for the three organizational culture traits: involvement, mission, and consistency, indicate that there is significant relationship with employees’ performance. However, adaptability doesn’t have significant effect on employee performance as per the result of regression analysis.