Abstract:
The purpose of this study was to determine the effect of teamwork on organizational performance in the case of Commercial Banks of Ethiopia under Merkato District, Addis Ababa. The population of the study was all workers who were working in Commercial Bank of Ethiopia under Merkato District. Stratified random sampling was used based on the different size of the sample frame in which 196 employees were participated on the study. The researcher used descriptive and explanatory research design and the required data were collected using questionnaire. The reliability was estimated using Cronbach's Alpha Coefficient and its result showed acceptable level values. Quantitative data were analyzed using Pearson correlation, multiple and simple linear regression analysis to measure effect of teamwork on organizational performance. The result showed that the effect of teamwork dimensions, team trust, team cohesiveness, team leadership, team communication, team accountability and team interpersonal skills, under study showed positive and significant effect on organizational performance. Likewise, teamwork showed positive and significant effect on organizational performance. Based on the findings, the study recommends that managers of Merkato District Commercial Banks of Ethiopia should: improve the communication and information flows among teams of its employees that needs to focus on teamwork and recognize good performing teams so as to get better teamwork outcome; strengthening team accountability practice in the organization for enhanced organizational performance; should promote team trust in the subordinate, superior and among employees that promotes good work relations among them and this leads improved performance which is seen through effectiveness in service delivery; strive team leader to become role models to their subordinates
