Abstract:
The main objective of this study was to investigate the effect of institutional reform on organizational culture in Nono Benja woreda of Jimma Zone. The researcher selected descriptive survey method for the quantitative part which helps the researcher to know what exists at present. Both quantitative and qualitative research methods were used. Data for this study was generated from both primary and secondary sources. Target population and the researcher used simple random and availability sampling techniques in the study and the data analyzed using SPSS version 20 for histogram, bar chart, pin chart, percentage and tables. About 218 employees were selected out of 480 using simple random sampling techniques. Data gathering instruments for this paper was collected using, questionnaire, FGD and interview. The awareness of employees on institutional reform was better regarding their knowledge on clear understanding of the aims of institutional reform and the initiatives taken by top administrative to activate institutional reform and the participants have poor awareness concerning if institutional reform are achieved the intended aims after the implementation. There were strong agreements among participants as factors affecting the implementation of institutional reform and organization culture were related to top management's insufficient understanding about reform on building and developing implementation system procedures and structure many problems. The finding illustrated that the relationship between institutional reform and organizational culture was strong, significant and positive relationship with r=.937**, n=208, p=.000. This showed that efficient implementation of institutional reform enhances organizational culture in Nono Benja Woreda. The institutional reform variables positively affect the organizational culture in providing the needed operations. Institutional reform significantly predicted organizational culture with R=.94a, R2 adjusted= .88 (p<0.01) significance level. Institutional reform explaining the organizational culture by 88%; hence the organizational culture in the public sector of Nono Benja Woreda greatly affected institutional reform.
