Abstract:
This research was conducted to examine the factors affect organizational commitment in the
case of Awash Bank Share Company (AB) using drivers of organizational commitment as an
indicator. Data was gathered from Head Office and North Addis Ababa regional branches.
Descriptive and inferential statistics was used to analyze the empirical data and also cluster
sampling was used followed by systematic sampling to select the samples. Primary data were
collected using five Point Likert-Scale questionnaires and 184 responses were properly filled
and returned. Statistical package for social science studies (SPSS) version 20 was used to
analyze empirical data collected through the close ended questionnaire. The independent
variables are compensation, job security, Training, working environment, supervisor support,
and organizational justice whereas the dependent variable is organizational commitment. The
mean and standard deviation of the dependent and independent variables were computed and
interpreted.
Pearson correlation Coefficient (r) was used to determine the relationship between each
independent variable with the dependent variable. The descriptive statistics result indicated that
the mean value for compensation (mean=2.93), Supervisor Support (mean=2.69),
Organizational Justice (mean=2.87) and organizational commitment (mean=2.77) were below
average except job security and training. The correlation result indicated that there was positive
relationship between the majority of independent variables (compensation, work environment,
Training, organizational justice, job security) and the dependent variable organizational
commitment. This implies that any increase or decrease on the independent variable will bring
corresponding change organizational commitment. It was concluded that the organization‟s
management expectation to increase overall employees‟ commitment as a result of the said staff
retention practices did not materialize for various reasons such as lengthy and bureaucratic
process, various eligibility criterion… etc
