THE EFFECT OF ORGANIZATIONAL CAPACITY ON PERFORMANCE: A CASE OF AWASH BANK NORTH ADDIS ABABA REGION

Abstract

The major purpose of this study is to investigate the effect of the organization capacity on customers’ service delivery of Awash bank of north Addis Ababa region and recommend possible solution to the existing problems. This study finds out the effect independents variable on performance of the organization. To this end the performances evaluated and propose solution to bridge the existing performance gap. The study also identifies the challenge, status and success of the study bank. This study also shows where organizational capacity is lacking and indicate the immediate solution before things going worse. This study employed a descriptive survey research design that enables quantitative data to be collected through questionnaires after which it can be used to test the hypothesis. This study use both primary and secondary data. Research instruments piloted in advance in order to ensure the clarity of questions, confirm the ease of administration, and obtain insight to potential difficulties that might arise during data gathering. The reliability and validity of questionnaires were checked and improve in early stage. In this study, the researcher employed both qualitative and quantitative data analysis methods. Thus, the row data collect and carefully organize using SPSS 20.0. The data interprets by using descriptive statistics; multiple regression, and correlation. Multiple regression analysis is done to know which independent variable as a significant impact on the dimension related to the topic. This study also used diagnostic tests such as linearity, multicollinearity, heteroskedasticity and normality tests. The author recommended that the managements are responsible to develop good working culture, add value on the system, overcome challenges, ensure accountability and improve efficiency. Thus, the bank needs to work with the strategy, use data, and build employee capacity to attain the intended objectives. The study indicate that digital capacity overall have somehow improved and there is also progress in digital quantity service. But much work expected to come up in to digital quality. To this end the study bank further improved customer service through new IT technology. Hence it helps to retain the existing one and attract new customers through addressing their rise expectations. This study also infers that the study bank ability to sell and onboard consumers’ service on digital channels has not much developed. Therefore, the bank faces serious challenge when the government opens new market to both upcoming local and foreign banks with high working capital and technology. This study infers that the study bank has to provide best service with low cost through deliver of next generation customer support, interactive video and integration of voice banking so as boost its image and provide financial return. Thus, the bank needs to enhance the best service to customer in addition access, reduce cost, maximizes convenience and improve revenue so as to keep its competitive advantage.