The Effect of Organizational Culture On Employee Commitment: The Case Of Jimma City Administration

Abstract

The way employees carry out their duties and communicate with one another inside an organization is defined by its organizational culture. Employee commitment is a crucial component of organizational development. The objective of this research was to analyze how organizational culture affects employee commitment in Jimma City Administration. The study employed Denison's organizational culture model, with adaptability, employee empowerment, training and development, rewards and recognition, and effective communication as independent variables and employee commitment as the dependent variable. Both quantitative and qualitative research approach were utilized, combining both descriptive and explanatory research designs. A sample of 326 respondents was selected from the target population of 1757 employees in the Jimma City Administration sectors using a stratified random sampling technique. Multiple regression analysis was conducted, and the R square results showed that the independent variables could predict 79.2% of the variation in employee commitment. Pearson correlation coefficients indicated a positive and statistically significant relationship between each independent variable and employee commitment. The study revealed adaptability as the most significant independent variable, followed by employee empowerment, training and development, rewards and recognition, and effective communication. The data were analyzed using the Statistical Program for Social Science (SPSS) Version 24. The findings highlight the significance of organizational culture dimensions on employee commitment. Particularly, adaptability emerged as the most crucial factor, with a 30.8% increase in employee commitment with every increment in adaptability and followed by employee empowerment, training and development, rewards and recognition, and effective communication. Overall, by addressing these variables and improving the organizational culture, the Jimma City Administration sectors can enhance employee commitment, leading to better organizational development and success.