“Factors Affect Organizational Commitment: The Case Of Awash Bank S.C’’

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