Abstract:
The main purpose of the study was to examine factors affecting organizational commitment in
the case of Awash Bank Share Company (AB) using drivers of organizational commitment as an
indicator. The study employed descriptive and explanatory research design. The data used were
primary and secondary data. The sampling method was area sampling and systematic sampling
to select the sample. The study was used close ended self-administered questionnaire which is
design to collect quantitative data. Independent and dependent variables‟ items utilized five
point Likert-scales. Data was gathered from Head Office and North Addis Ababa regional
branches. Descriptive and inferential statistics was used to analyze collected data using five
Point Likert-Scale questionnaires and 184 responses were properly filled and returned 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). 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 on organizational
commitment.
