THE EFFECT OF ORGANIZATIONAL CULTURE ON EMPLOYEE ENGAGEMENT: THE CASE OF DASHEN BANK SC

Abstract

The purpose of this study was to investigate the effect of organizational culture on employee engagement in case of Dashen Bank SC. The study was based on an explanatory research design. The organizational culture questionnaire was adopted from Cammeron and Quin and the employee engagement questionnaire was adopted from Utretch. A total of 270 employees participated in the study with response rate of 91%. The researcher used proportionate stratified simple random sampling techniques. The data was analyzed using descriptive and inferential statistics. The results show that the existing characteristic of the organization culture in Dashen Bank is hierarchy culture which is highly characterized by bureaucratic, according to the finding this culture type do not have significant effect on employee engagement. The study also found out that the four traits measuring organizational culture clan, adhocracy, market and hierarchy were all positively related with employee engagement. On top of that, clan is the most contributing organizational culture traits in the prediction of employee engagement with beta value .455. According to the regression analysis result, clan culture has significant effect on employee engagement (p<0.05). On the other hand, the remaining three culture traits adhocracy, market and hierarchy have no significant effect on employee engagement due to the fact that p>0.05. Based on the research findings and conclusions the major recommendations were offered for possible consideration by Dashen bank SC which is mostly related with the type of culture shall be applied to boost employee engagement.