Factor Affecting Organizational Commitement (The Case Of Awash Bank).

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.