THE EFFECT OF ORGANIZATIONAL CULTURE ON EMPLOYEESCOMMITMENT ON ETHIO-NIPPON TECHNICAL COMPANY SHARE COMPANY

Abstract

The main purpose of this research paper is to find out the effect of organization culture on employee commitment on the case of Ethio-nippon technical company S.C. This study aimed to examine the organizational culture of ENITCO using Denison’s cultural model, The research design was descriptive and explanatory and also the research approach was quantitative research approach. This study was based on primary data. The sampling technique was probability sampling (simple random sampling, stratified sampling). Descriptive and inferential statistics of correlation and regression analysis were used to analyze the empirical data. Pearson coefficients implies that the four factors measuring organizational culture were all positively related with employees commitment within the range of 0.661 to 0.780, all were significant at p<0.01 level therefore the researcher proved that the entire hypotheses were accepted. The result of multiple regression analysis, indicate that R2 .867 shows that 86.7% of the variation of employees commitment can be predicted by the independent variables. It indicates that employees’ commitment is influenced by 86.7%.of organizational culture in ENITCO. The remaining 13.3% of variation of employee’s commitment can be clarified by other variables. From beta coefficient result the researcher found that consistency is the most contributing organization culture traits in the prediction of employee commitment followed by mission. The other two variables adaptability and mission contributed the least variation. Finally based on the finding the researcher concluded that in the case of Ethio-Nippon technical company S.C the four variables mission, involvement, adaptability and consistency have significant and positive impact on employee commitment