THESIS SUBMITTED TO THE DEPARTMENT OF MANAGEMENT, IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF MASTER OF BUSINESS ADMINSTRATIO

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.