Abstract:
The purpose of this study is analyzing the effect of organizational culture practice on
employee’s retention and its strategies in selected private banks in Arbaminch town.
The research approach used in this study is mixed research approach, by using explanatory
research design to test the existence of relationship between organizational culture and
employees retention variables, and the population of the study comprises three private banks
which were selected through lottery method, the sample size of the research was 129 which
involved private banks (Abyssinia, Dashen and Awash) employees and the branch managers,
research data were collected using questionnaires that were distributed to banks employees and
interviews were conducted to private banks branch managers, the researcher used both
qualitative and quantitative approach in analyzing the data and also tables were used to
summarize the data provided.
The study found out that; mission had moderate positive correlation with employee’s retention
while the other three organizational culture dimensions (involvement, adaptability and
consistency) were ranked depending on their correlation level from highly correlated to the least
correlated but relatively, consistency was less positively correlated with employee retention.
Moreover, the regression result revealed that all the four dimensions measuring organizational
culture were found to have their own positive and significant effect on employee retention. And
also, the results of regression analysis, it can be concluded that 69.5% of the variation in the
employee retention of the organization can be explained by the organizational culture. Based on
the research findings research conclusions, the organization make sure that mission, goal,
objective and vision of the organization are clear and plausible and also the organization has to
make sure that the involvement of its employees, consistency, adaptability.
