The effect of organizational climate on employee engagement in Anbessa city bus service enterprise, Ethiopia

Abstract

The aim of this study was to examine the relationship between organizational climate and employee engagement. The independent variable is organizational climate consist with six dimensions namely; Organizational structure, Individual responsibility, reward and recognition, Leadership, Conflict management and Communication while employee work engagement was treated as a dependent variable. Accordingly, six research hypotheses were developed to address the research objectives. Explanatory and descriptive research designs were adopted with mixed (Quantitative and Qualitative) approach to examine the relationship among the study variables. Primary data source was used to answer the research questions. It was collected through standard and adopted questionnaires. Stratified random sampling technique was applied to collect information from the sample respondents. Additionally purposive sampling was used for interview questions. 359 questionnaires were distributed to employees of ACBSE, out of which 342 (95.3%) were successfully filled in and returned. Hence, the data gathered were organized and analysed in a manner that enables to answer the basic research questions raised at the beginning of the study by SPSS version 26. Descriptive and Inferential statistics were applied. The beta coefficient of multiple regression and correlation result of the study shows that communication has positive moderate relationship with employee engagement. Furthermore, Individual responsibility, reward and recognition, conflict management, and communication have a positive strong relationship and significant effect on employee job engagement. On the other hand organizational structure and leadership have a positive weak relationship with employee engagement. Additionally they do not have significant effect on employee engagement in ACBSE. Building positive organizational climate is one of the best and simplest ways to get employees engaged. Therefore, Management of ACBSE should focus on organizational climate dimensions in order to enhance their employee’s job engagement. Finally, longitudinal research design can be used by future researchers to examine the cause and effect relationship between different organizational climate dimensions (that are included and not included in this study) and employee engagement.