THE EFFECT OF ORGANIZATIONAL CULTURE ON EMPLOYEE COMMITMENT: THE CASE OF HILLTOPS ACADEMY

Abstract

The main purpose of the study was to evaluate the effect of organizational culture on employee commitment in Hilltops Academy with respect to organizational culture of innovation and risk taking, outcome orientation, people orientation and, team orientation. Descriptive statistics was used to present the demographic characteristics of the respondents and explanatory study design was used to examine the effect of organizational culture on employee commitment of the organization. Both quantitative and qualitative approaches were used in the study. Target population of the study was 115 permanent employees of Hilltops Academy working in Addis Ababa and Ashewa Meda campuses. Census sample size was used for the study. Primary and secondary data were also used as a source. Questionnaires were distributed to 115 employees of the organization and interview was conducted with HR manger, administrative manager and one employee representative of the organization to gain the management's view and make the data more comprehensive. The collected data were summarized and analyzed using descriptive and inferential statistics using SPSS version 20. The result is then presented in the form of tables and figures followed by discussion for further interpretation on the findings. All the independent variables of organizational culture were found to have a positive and significant correlation with the dependent variable which is employee commitment. The multiple linear regression analysis revealed that, all the independent variables (innovation and risk taking, outcome orientation, people orientation and team orientation) have statistically significant effect to predict employee commitment. Innovation and risk taking and outcome orientation account the largest share to explain the variation of employee commitment. Therefore the study recommends that the organization should enhance it organizational culture especially (innovation and risk taking, outcome orientation, people orientation and team orientation) in order to become more effective in its employee commitment and overall productivity.