The Effect of Organizational Climate on Employees commitment In Case Of Commercial Bank of Ethiopia in South Addis Ababa District

Abstract

The commercial banks play important roles in worldwide economies and their employees are the best sources of delivering good services to their customers. Hence, this study conducted with the objective of assessing the effects of organizational climate on employees’ commitment of commercial bank of Ethiopia south Addis Ababa district. The study has used both descriptive and explanatory research designed. Data for the analyses collected from primary through questionnaires and interview. The study has used simple random sampling technique to select 200 employees from 1796 employees of commercial bank of Ethiopian South Addis Ababa district. The study has used correlation and regressions to establish the relationship between variables. Correlation coefficients revealed a significant positive relationship between employees commitment. organizational climate such as; Autonomy, Trust, Team work, Rewards and Recognition, Fairness and supervisors and Support are positively and significantly affect employees commitment. Multiple regression analysis has also revealed that 79.70% the variance in employee’s commitment are explained by organizational climate dimension; Autonomy, Trust, Team work, Rewards and Recognition, Fairness and supervisors and Support have significant effect on employees’ commitment. Therefore, it can be concluded that any improvement in these organizational climate dimension can improve employee’s commitment. The study recommends that commercial bank of Ethiopian of South Addis Ababa district should continue support team work since it contributes more for employees’ commitment. Similarly, the study recommended that commercial Ethiopian bank of South Addis Ababa district should continue work on trust on mangers and Rewards and Recognition since they contributes more for employees’ commitment. Moreover, the organization would be able to focus on selected organizational climate and also it would be possible to have improvements in workplaces to help employees become more committed to their jobs.