EFFECT OF ORGANIZATIONAL CULTUREON EMPLOYEE PERFORMANCE:(A CASE STUDY OF DEVELOPMENT BANK OF ETHIOPIA)

Abstract

This study was conducted mainly to assess and analyse the effect of organizational culture on employee performance (the case of Development bank of Ethiopia) to make it more competitive in the local and global financial sector and banking industry. The research used primary data through distributing questionnaire to development bank of Ethiopia head office workersExplanatory and descriptive research design and quantitative type of research approach was used a population of 250workers were purposively selected from core directorates of the bankand using the sample size formula of Uma sekarer(2003)154 samples were made ready and were distributed to members of core directorates and From the distributed154 questionnaires 147 (95.4 %) respondents completed and returned the questionnairequantitative research approachand explanatoryand descriptiveresearchdesignswere utilized.So,using the returned questionnaires from each respondent.The quantitative data were coded date entry was made and analysed using SPSS 23 statistical tools including descriptive and inferential statistics done both Pearson’s correlation and multi linear Regression analysis were used.The findings of the study explained on this research through descriptive ,correlation and regression analysis .The detail of these result the mean value of involvement dimension of organizational culture ,consistency dimension of organizational culture, ,adaptability dimension of organizational culture , mission dimension of organizational culture and employee performance are recorded figuratively respectively .And the correlation result of each independent variables with respect to dependent variables produced on this study these are Involvement with Employee performance,consistency with Employee performance, adaptability with employee performance),and mission trait with employee performance has r values of all positive with mission trait the highest positive higher r- value. Atthe end regression analysis of coefficients presented and the result of β value of Involvement dimension, consistency dimension, adaptability dimension and mission dimension are listed in figurerespectively;showing as β value of all independent variables are positive. this implies that independent variable have positive effect on employee performance and also the Hypothesis result of this study show three independent variables rejected /Notes supported and the significant value[P-Value] above 0.05 with the exception Mission dimension .Generally this report would identify the general issues of organizational culture traits mainly involvement dimension, consistency dimension, adaptability dimension, mission dimension and their level of effects and relationships on employee performance of development Bank of Ethiopia. From all the above findings it is recommended that those insignificant traitslike involvement,consistency and adaptability has to be corrected by the bank, whereas Mission dimension since it shows significant effect it has to be maintained by making sure thatthose in leadership positions are conversant with the organizations mission and to understand help othersto understand those cultures of strategic intent and direction.