Impact of Organizational Learning On Organizational Success Case Study On Commercial Bank of Ethiopia Shashemene Town

IMPACT OF ORGANIZATIONAL LEARNING ON
ORGANIZATIONAL SUCCESS CASE STUDY ON

COMMERCIAL BANK OF ETHIOPIA SHASHEMENE TOWN
A Thesis Proposal Submitted to

Maddawalabu University, School Of
Graduate Studies For the Partial Fulfillment Of
The Requirements In Acquiring Master Of
Business Administration Degree
Submitted by: Feven Teshome

Submitted to: Abdulnasir Abdulmelike
MaddaWalabu University College of Business and Economics Management

Department
March, 2021
Shashemene, Ethiopia
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Abstract
The purpose of the study is to examine the impact of organizational learning on Organizational success
in commercial bank of Ethiopia in Shashemene town ten branches. The study adopted descriptive
research design with a target population of commercial bank of Ethiopia 10 branches in shashemene
town .The study used proportionate stratified random sampling method to identify a sample that was
representative of the 10 branches in the town. A sample of 81 employees and managements were used in
the study. Primary data was collected using structured close-ended self-administered questionnaires.
The study is quantitative in nature. The studies descriptively analyzed the data elicited from surveys with
the help of SPSS
Keywords: Organizational Learning, Organizational success, Commercial Bank of Ethiopia
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Acknowledgment
First and foremost, praises and thanks to the almighty God for his showers of blessings
throughout my research proposal. I would like to express my deep and sincere gratitude to my
research advisor Mr. Abdulnasir.Abdulmalike for providing invaluable guidance throughout this
research proposal.
I am also extremely grateful for parents for their love, prayer, caring and sacrifices for educating
and preparing me for my future
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Table of Contents
Abstract.................................................................................................................................i
Acknowledgment.................................................................................................................ii
List of Tables......................................................................................................................vi
CHAPTER ONE................................................................................................................1
1. INTRODUCTION..........................................................................................................1
1.1 Background of the study....................................................................................1
1.2. Statement of the Problem..................................................................................7
1.3. Objectives of the Study.....................................................................................8
1.3.1. General Objective..............................................................................8
1.3.2. Specific Objectives............................................................................8
1.4. Research Questions...........................................................................................8
1.5. Scope of the Study............................................................................................8
1.6. Significance of the Study..................................................................................9
1.7. Limitation of the Study...................................................................................10
1.8. Operational Definition of Terms.....................................................................10
1.9. Organization of the Study...............................................................................11
CHAPTER TWO.............................................................................................................12
2. REVIEW OF RELATED LITERATURE.................................................................12
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2.1. Theoretical Review.........................................................................................12
2.1.1. Definition and concepts of organizational learning and
organizational success................................................................................12
2.2. Empirical Review............................................................................................19
2.3. Conceptual Framework...................................................................................26
CHAPTER 3.....................................................................................................................30
3. RESEARCH METHODOLOGY...............................................................................28
3.1. Description of the Study area..........................................................................28
3.2. Research design and approach........................................................................28
3.3. Data type and Sources.....................................................................................29
3.4. Study Population and Sampling Design.........................................................30
3.4.1 Population.........................................................................................30
3.4.2 Target population..............................................................................30
3.4.3 Sampling frame.................................................................................30
3.5. Method of Data Analysis................................................................................32
3.6. Ethical Consideration......................................................................................33
APPENDICES...................................................................................................................34
APPENDIX 1: QUESTIONNAIRE......................................................................35
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List of Table
Table 1. sample size determination table--------------------------------------------------------31
Table 2. Sample size table -------------------------------------------------------------------------32
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CHAPTER ONE
1. INTRODUCTION
1.1 Background of the study
In current complex business environment every organization needs to have up to date
knowledge about their customers, customer preferences, product range, suppliers,
competitors, technology, capabilities and resources of the competitors. In such an
environment, a controlled system with a strong financial orientation is no longer
appropriate and can even be counter productive.in order to maintain sustainable
competitive advantage managers should stimulate their employees to learn (Mu & Di
Benedetto, 2011), According to Chang and Lee (2007) sustainable competitive advantage
is in fact firm’s ability to learn faster than its competitors.
Learning; is at the heart of company management and has become the essence of
productive activity, being a need more than a choice in today’s conditions (F.J. Lloréns
Montes et al., 2005). All humans are born with the ability to learn and through it they
adapt to the changing and evolving environment (S.-h. Liao et al, 2008). The learning of
organizations in the study of S.-h. Liao et al. (2008) are referred to as; when the members
of an organization use learning to solve a common problem that they are facing. Though,
learning to achieve the organizational level crosses two stages; individual and group
learning thereafter it becomes organizational. Individual learning occurs with the
acquisition or creation of knowledge, group learning happens when this knowledge is
transferred and disseminated and finally organizational learning is achieved with the
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integration and sharing of this knowledge through the organization (Gomez et al., 2005).
Every organization will develop the most suitable learning method according to the needs
and characteristics of the organization itself (S.-h. Liao et al.2008).
Peter Senge (1990) defines learning organization as “an organization that encourages and
facilitates learning in order to continually transform itself to survive and excel in a
rapidly changing business environment”.
The concepts of learning, knowledge, and information relate to one another in such a way
that information acts as a meaningful input that generates the learning processes and
constitutes the basis for acquiring knowledge (Lloria & Moreno-Luzon, 2014).
Knowledge is the strategic asset that firms can utilize to build their competitive
advantage (Chung, Yang, & Huang, 2015). Recent decades have witnessed knowledge-
intensive business services (KIBS) emerging as an important evolution trend in the
knowledge economy (Hu, Lin, & Chang, 2013).With knowledge as their most valuable
asset. Economic growth is stimulated through learning (Piazza, 2010). Providing ongoing
learning opportunities and profession development will drive firm success.
Organizational learning is the process of intense interaction around an organization in
which learning is aimed at changing or developing old knowledge. It is the process of
developing the skills and capabilities of the staff of the organization, which achieves its
distinction and adapts to environmental changes. This requires ensuring continuity of
learning process
The Commercial Bank of Ethiopia (CBE) is the largest commercial bank in Ethiopia
banking industry, established in 1942 as State Bank of Ethiopia and later incorporated as
a limited liability public enterprise pursuant to the laws of the Government of Ethiopia on
December 16, 1963 for an indefinite time period as a holding Bank.. Commercial bank of
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Ethiopia plays a catalytic role in the economic progress and development of the country
and the huge bank in the country in terms of capital, asset and number of branches. Its
vision is to become world class Bank by the year 2025 G.C and its mission is being
committed to best realize stakeholders needs through enhanced financial intermediation
globally and supporting national development priorities, by deploying highly motivated,
skilled and disciplined employees as well as state-of-the-art technology. The bank
disclosed in its annual performance for the 2018/19 financial year that it is biggest bank
in the country stated that its assets reached to 712.9 billion birr by the end of the financial
year. Consequently, its performance and competitive position remained strong. It
continued to command over 60% of the total deposit, 61% of the total asset and 44.5% of
the capital and reserve of the entire banking industry operating in Ethiopia. Also CBE is
largest commercial bank with more than 37,000 employees; the bank took human
resource development as a focal area as part of its ongoing development program to
enhance the capacity of its employees, it organized and conducted various training
programs. During the budget year 2018/2019, 54,867 employees attended technical
training programs and 5,570 received developmental training, while 3,981 employees
attended ethics training programs. CBE continued to give high priority to the deployment
of modern banking technologies by including digitalization as one strategic theme. The
accessibility of the banking increased the total number of branches of the bank reached
1,444. As a result, the accessibility of the bank was enhanced significantly, contributing
to the financial inclusion endeavor of Ethiopia. The number of account holders of the
bank rose to 21.6 million CBE was positioned well in the banking industry to continue its
leadership in all parameters. The bank had market shares of 28%, 61% and 61.4% in the
industry’s branch network, deposit and asset, respectively.
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1.2. Statement of the Problem
The performance of commercial bank of Ethiopia is a key in determining the overall
performance of Ethiopian banking sector against that of other countries in the world.
According to Aidemark (2009), from the total knowledge of an organization, 80% is
evidenced to be in the mind of individuals and the remaining 20% is available in the form
of explicit knowledge. Unless individuals interact and create mechanisms for converting
and sharing this knowledge among themselves, their effort will only fetch limited success
in their organizations. Hence, a detail investigation of those impacts on organizational
success in that specific organization seems vital. Also there are less empirical researches
with respect to organizational learning construct in Commercial Bank of Ethiopia. In
light of the above, the current study seeks to identify the impact of organizational
learning on organizational success in commercial bank of Ethiopia Shashemene town. If
research regarding the learning constructs will be available, the sector might be groomed
1.3. Objectives of the Study
1.3.1. General Objective
The study will assess the impact of organizational learning on organizational success on
commercial bank of Ethiopia Shashemene town 10 branches. To achieve the main goals,
the study has the following specific objectives
1.3.2. Specific Objectives
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1. To investigate the impact of Teamwork and Group Problem-solving on organizational
success
2. To examine the impact of Clarity of Purpose and Mission on organizational success
3.To explain the impact of Transfer of Knowledge on organizational success
4.To see the impact of experience on organizational success
5. To describe the impact of Leadership Commitment on organizational learning
1.4. Research Questions
The current research answered the following research questions

i. Impact of teamwork and group problem solving on organizational success
in commercial bank of Ethiopia Shashemene town branches?
ii. Impacts of clarity of purpose and mission on organizational success
iii. Impact of transfer of knowledge on organizational success
iv. Impacts of experience on organizational success
v. Impact of leadership commitment on organizational learning
1.5. Scope of the Study
This study examined impact of organizational learning on organization success. It

covered the responses from sample of CBE shashemene town 10 branches managements
and staffs specifically Abosto branch, Alech branch, Bulchana branch. ,Gibrina sefer
branch, Harufa branch, Hessa branch, Shashemene branch, Melka oda branch, kuyera
branch and Oda branch. The findings of the study would be more fruitful if it were
conducted by including most branches/departments in the bank, But due to time
constraint, luck of information & cooperation it is impossible to do so. Thus the study is
limited to ten branches in Shashemene town with the assumption that the responses
would represent the views of other employees in the branches in the town. Inferences will
be made from the response given by selected employees and managerial staff in different
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branches of the Bank; a sample representative of the entire branch’s population.
Methodologically, this study used descriptive research design for describing the situation
or case under their research study and Explanatory research design to show the
relationship between the variables.
1.6. Significance of the Study
Banks play unquestionable role in sustainable economic development of a country
through providing the required financial services to the economy. Commercial banks, in
particular, can be taken as a lung for every business activities in which the cash, oxygen,
in and out breathe takes place. Thus the bank will benefit extensively from the findings of
this study. It will understand further the impact of organizational learning that affect its
success and come up with strategic measures on how to improve its performance and
become more competitive in the industry as well as the economy both locally and
globally. Employees of the bank, the country as a whole can be beneficial from the study
that improving the bank is like improving employees and improving the economy of the
county. Other financial institutions will also benefit in that they can now benchmark
themselves and do an analysis on whether the factors analyzed in this study affect their
performance as well.
1.7. Limitation of the Study
Since this study only included branches of the Bank found in Shashemene town only, the
findings of this study couldn‘t represent the characteristics of all staffs of the Bank found
throughout the country. However, considering the time, budget, access to data, expect
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rate of return for research instruments and convenience, this research concentrate on
commercial Bank of Ethiopia in Shashemene town.
1.8. Operational Definition of Terms
Informal groups- according to Greenberg (2010) informal groups can occur in an
organization as a result of mutually shared interest of the individuals.
Bank’s mission statement -The bank is committed to best realize stakeholders' needs
through enhanced financial intermediation globally and supporting national development
priorities, by deploying highly motivated, skilled and disciplined employees as well as
state-of-the-art technology.
Service quality –is the customers overall perceived assessment of service performance
(Parasuraman et al,.1998).also service quality considered critical success element in
modern service business and prerequisite for achieving sustainable competitive
advantage. (Rapert and Wren, 1998)
Common vision-To become a world-class commercial bank by the year 2025.
Revenue- is the income generated from normal business operations
Profit margin is a ratio of a company’s profit (sales minus all expenses) divided by its
revenue. The profit margin ratio compares profit to sales and tells you how well the
company is handling its finances overall. (KIMBERLY AMADEP, 2020)
Cash flow- is the movement of cash and cash equivalent into and out of the business.it is
the cycle of cash inflows and cash outflows that determine business solvency.
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Strategic plan- can be defined as the balance of actions and choices between internal
capabilities and external environment of an organization. Accordingly, strategy can be
seen as a plan, play, pattern, position and perspective (Mintzberg et al, 2009).
1.9. Organization of the Study
This study focuses on the impacts of organizational learning on organizational success
case study on CBE shashemene town 10 branches. Thus, the study contains four chapters
and it will be structured as follows.
The study was organized into five chapters. The first chapter was an introductory part of
the study in which background of the study, statement of the problem, objective of the
study, Scope of the study ,research question, definition of term, significance of the study,
and. The second chapter deals with related literature review of the study. The third
chapter was methodology of the study. Chapter four analyzes the data and presents the
findings. The last chapter was the summary of findings, conclusions and
recommendations part.
CHAPTER TWO
2. REVIEW OF RELATED LITERATURE
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2.1. Theoretical Review
2.1.1. Definition and concepts of organizational learning and organizational success
The term organizational learning was originally introduced by Argyris and Schon(1978),
involving the detection and correction of error in organizations. It was later defined as the
process of improving actions through better knowledge and understanding by Fiol and
Lyles (1985). Huber (1991) assumed that an entity learns if, through its processing of
information, the range of its potential behaviors is changed. Nevis et al. (1995) defined
organizational learning as “the capacity or processes within an organization to maintain
or improve performance based on experience” while Dodgson (1993) described
organizational learning as the ways organizations build, supplement and organize
knowledge and routines around their activities, and adapt or develop organizational
efficiency through improving the use of their workforce’s broad skills.
Organizational learning focuses on organizational problems’ solution; creation of new
Opportunities; developing new insight; synergizing and charging work environment
socially and emotionally; enhancing performance and bringing cognitive; behavioral and
social productive changes to organizations and its employees (Apostolou, 2014;Aranda et
al., 2017; Aragón et al., 2016).
A more recent definition highlighted organizational learning, which is related to learning
organization (Robelo & Gomes, 2011) as a process or capacity within organization which
enables it to acquire, access and revise organizational memory thus providing directions
for organizational action .a study noted that learning organization always seek ways to
capture learned concepts to function continuously (Alipour, Khairuddin, &Karimi, 2011),
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another suggested that a vital component of building a learning organization is team
learning (Norliya&Azizah, 2007).
Firms that are concerned with maintaining a continuous learning process acquire a better
understanding of the market, use their internal knowledge and experience and develop the
ability to react quickly to new market needs, flexibly reconfiguring their resources and
reducing the perception of uncertainty against the complexity of the environment
(Damanpour, 1991; Calantone, Cavusgil, & Zhao, 2002; Gallouj&Savona, 2009).
Additionally, Norashikin and Noormala (2006) also suggested that organizational
learning helps to improve organization’s competitive advantage and responsiveness to
change, subsequently sparking interest to develop organizations that promote and foster
learning. The concept of learning organization has been linked to innovation and
performance in organizations (Power & Waddell, 2004; Watkins &Marsick, 1993; 1999).
The capacity for change and continuous improvement to meet the challenges in the
environment in which organizations operate has been associated with the capability of
these organizations to learn (Armstrong & Foley, 2003; Senge, 1990). Thus,
organizations that learn will be able to keep abreast with developments and
improvements in the business environment to operate successfully. Accordingly, Kalsom
and Ching (2011) highlighted that for public institutions of higher education (PIHEs) to
strive for academic excellence, it is vital for the institutions to become learning
organizations. in an attempt to further understand the subject matter, the three concepts,
which are learning organization, organizational performance and organizational
innovativeness will be defined in general organizational terms. Watkins and Marsick
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(1996) noted that learning organizations are where learning and work are integrated in an
ongoing, systematic manner in order to support continuous individual, group and
organizational improvements
A more recent definition noted that learning organizations are organizations looking for
transformation and excellence through interrupted and continuous organizational renewal
and gradually mastering the subject matter (Griego, Geroy, & Wright, 2000).
Organizational performance, meanwhile, has not been frequently defined and has been
used differently according to the context, as well as being difficult to define and measure
(Erbisch, 2004; Stainer, 1999). A general definition of organizational performance by
Stankard (2002) noted that it is the product of interactions of different parts or units in the
organization. In the context of this study, organizational performance refers to the
outcomes of various organizational processes
Learning organization
The terms organizational learning and learning organization are used interchangeably in
the literature but are not functional equivalents (Thomas and Allen, 2006). Organizations
that purposefully construct structures and strategies in order to enhance and maximize
organizational learning have been called “learning organizations” (Dodgson, 1993). A
learning organization refers to building a capacity for creating learning and knowledge in
individuals and of enabling the effective dissemination of this knowledge throughout the
organization. It is the product or result of a critical combination of internal change
mechanisms intended to maintain or improve performance. Organizational learning might
be described simply as the capacity or processes to get the above product or result
In the last fifteen years, since the seminal publication by Senge (1990)on the fifth
discipline, the art and practice of the learning organization, the field of organizational
learning has grown extensively (Gamin, 1993; Easterby-Smith, 1997; Argyris, 1999) and
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the proliferation of research shows no signs of abating (Bapuji & Crossan, 2004). Yet
despite widespread interest in the topic, organizational learning remains elusive from a
conceptual and practical standpoint. Commonly cited reasons include lack of clear
consensual definitions, theoretical and paradigmatic diversity, an absence of cumulative
and integrative research, a paucity of empirical studies, and an inability to translate the
concept into a measurable construct (Bapuji & Crossan,2004; Templeton, Morris, Snyder,
& Lewis, 2004; Friedman, Lipshitz, & Popper, 2005).
To address the last concern, lack of a measure for this construct, Goh and Richards
(1997) developed a 21-item learning organization survey to measure the learning
capability of organizations after an extensive review of the learning organization
literature. As noted by Chakrabarty and RogC (2002), development of a valid and reliable
measure of this construct would be of interest to both organizational scholars and
practicing managers. This study uses Learning Survey developed by Goh and Rtchards
(1997).
Organizational learning framework
Five underlying characteristics developed by Goh and Rtchards (1997)-These
Characteristics, considered interdependent and mutually supportive conditions(Goh,
1998), (I) Clarity of purpose and mission (2) Leadership commitment and empowerment
(3) Experimentation (4) Transfer of knowledge and (5) Teamwork and group problem-
solving
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Clarity of purpose and mission: the extent to which employees support the mission of
the organization and understand how they can contribute to its success and achievement;
Leadership commitment and empowerment: the roles of the leaders with respect to
helping employees learn behaviors consistent with an experimenting and changing
culture;
Experimentation: the freedom employees enjoy in the pursuit of new ways of getting
the job done and taking risks;
Transfer of knowledge: employees can earn from others, past failures, and other
organizations;
Teamwork and group problem-solving: employees can solve problems and generate
innovative ideas
Organizational success
Measuring organizational success is a continuous challenge for both managers and
researchers. While financial measures were in wide use for many years, new frameworks
have emerged in recent years that extend organizational perspectives beyond traditional
financial measures. Among them the Balanced Scorecard is one of the most popular new
frameworks.
Organizational success frameworks developed by different scholars
1. The Balanced Scorecard
Kaplan and Norton’s assertion is that traditional financial accounting measures (e.g.,
ROI, EPS) can give misleading signals for continuous improvement and innovation, and
are out of step with the skills and competencies needed by today’s organizations. “The
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Balanced Scorecard” is a multi-dimensional framework that translates a company’s
strategy into specific measurable objectives. This includes a combination of financial
measures, indicating results of actions previously taken, and operational measures that
are drivers of future performance. Typically,15-20 measures are developed in four
dimensions (customer, internal, innovation and learning, financial). However, even
Kaplan and Norton recently noted that an excellent set of measures does not guarantee a
winning strategy
2. Success Dimensions
Shenhar and Dvir’s “Success Dimensions” model is a multi-dimensional concept that
defines effectiveness across three organizational levels (project, business unit, and
company) and four time horizons (very short, short, long, very long time-frames). The
key premise is that measuring the success of an organization using only one time
dimension can be misleading. Indicators of short-term corporate success (sales, profit,
cash position) are measured at a single point of time, and may change during the
following quarter or next year. More importantly, these measures may not be indicative
of longer-term corporate success. Any lack of corporate vision and values, technology
strategy, investments in people, and new businesses and ventures will typically not be
evident in a short-term organizational view, but must be observed and assessed over the
longer term. For example, the development and optimal use of core competencies is one
of the critical success factors comprising the ‘long term’ dimension. Core competencies
may be new technologies, processes, or marketing and distribution capabilities exploited
for customer benefits. In the ‘very long’ term, Shenhar and Dvir suggest using the ‘ability
to see the future’ and to ‘define new needs’ before competitors and customers as the
critical success measures.
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3. Dynamic Multi-Dimensional Performance
The balanced scorecard However, in spite of its wide usage, it has shown to be
inadequate in various circumstances and across differing firm types. Additional studies
are therefore needed to keep exploring a problem that has been relevant for at least thirty
years. And a new performance model, the Dynamic Multi-Dimensional Performance
framework developed by Alan C. Maltz, Aaron J. Shenhar and Richard R. Reilly(2003)
the proposed DMP model has used the Balanced Score card and the Success Dimensions
models as a foundation framework, DMP model which includes five major dimensions:
Financial, Market, Process, People, and future. The study used success measures taken
from this framework to measure organizational success in commercial bank of Ethiopia.
Financial Measures: represent the traditional approach to organizational success. In
essence, it would involve measures such as sales, profits, or return on investment.
Customer/Market Measures: represent the relationship between an organization and its
customers. Customer-centric companies are adept at understanding customer needs and
wants, building products that meet these needs, and keeping them satisfied, resulting in
high retention rates.
Process Measures: reflect the organizational efficiency and improvement view. Many of
the influential business themes in the past decade have focused on process improvement
—TQM, learning organizations, and team-based efforts.
People Development Measures: recognize the critical role of stakeholders in
organizational success. The level of employee skills, commitment to technological
leadership, personnel development, staff slack resources are indicative of the essential
role of employees in organizational success.
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Preparing for the Future Measures: are clearly expressions of foresight. This dimension
must be viewed as a critical organizational issue and includes measures such as
depth/quality of strategic planning, indicators of partnerships and alliances, anticipating
and preparing for changes in the environment, and investments in new markets and
technologies. Kinds of Organizational Learning
Kinds of organizational learning according to Dawes (2003):
1. Hereditary learning: it points at a science, which has been created by organization
founders.
2. Experiential learning: it considers a science, which is obtained through experience,
which can be obtained on purpose or by chance.
3. Vicarious learning: it points at the second hand experience, which has been done by
the people out of an organization
Kinds of organizational learning according to Argyris and Schon (1978):
1. Monocyclic learning: this kind of learning happens when organization members
answer the environment through finding errors and correcting them, indeed this answer to
the environmental needs is made by keeping organizational current norms.
2. Two-cyclic learning: this kind of learning not only controls current processes, but also
includes correcting culture, policies, goals, strategies and organizational structure. Two-
cyclic learning includes changing the science base of competences and the common
works of organization.
3. Three-cyclic learning (twofold): it is based on changing methods and requires people’s
Conceptual reflection. This kind of learning restarts the reflection element of the learning
Cycle and leads to a new level of contemplation and creating science. In other words, the
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result of twofold learning is new finding and new science
Kinds of organizational learning according to Marquardt (2002):
Kinds of organizational learning according to Marquardt are not limit each other and
more than one kind of learning in the individual, group and organizational level can
happen simultaneously
1. Adaptive learning: it happens when a person, group or organization learn through
experience and evaluation (their previous performance). Adaptive learning process with
regard to organization is that an organization proceeds to achieve a specified aim, and it
leads to some internal and external results. The result is analyzed in terms of congruency
with the aim, and the organization does a new action or corrects the previous action based
on the result.
2. Forward-looking learning: it begins when an organization learns through prospective
futures. This approach is to avoid negative results and experiences through identifying
the best future opportunities and finding the ways of obtaining them.
3. Practical learning: it consists of working on real issues, focusing on the obtained
science and real performance of solutions
Effective Elements of Organizational Learning
Most of learning organization models emphasizes the following elements:
1. Management and leadership,
2. Culture,
3. Knowledge, information and communicational systems,
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3. Organizational structure and systems, which are used for facilitating and instrumenting
change, like technology. (The last case has been less emphasized than others) (Masudi
Nadushan & Javan Shargh, 2005).
According to oxford dictionary “success is the accomplishment of an aim or purpose.
Organizational success is the organization's ability to achieve long-term goals and
balance between the goals and objectives of the organization of employees (Kenny,
2001).also according to (Dell & Kramer, 2003). Organizational success is the
organization's ability to coordinate activities in all components linking this to a common
vision to achieve its strategic goals. Successful organizations make change integrated
with OL, and encourage managers to experiment and learn to find new ways to make
decisions (Jones, 1995).
Since the 1950s, a central question in international development has been how knowledge
can best be generated, mobilized, made available, applied and adapted to improve the
human condition (IFAD, 2007).Learning has no limits. At almost every phase of life
individual and societies learn. Likewise is the case with organizations. With varying
environment, and demands every organization wants to be a competitive player in the
respective industry. To be the leader in the respective industry, organizations are
compelling hard to get the sustainable competitive advantage. Modern companies operate
in a constantly varying and highly unstable business environment. There is a constant
need for them to change and learn at individual, group, Organizational and inter-
organizational levels (Sanchez, 2005).Indeed, extensive research provided support for the
notion that companies that manage their organizational learning processes better are also
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better-off in terms of financial non-financial results (e.g. Bontis, Crossan, &
Hulland,2002; Jimenez-Jimenez & Cegarra-Navarro, 2007; Sˇkerlavaj&Dimovski, 2006;
Sˇkerlavaj, Indihar Sˇtemberger,Sˇkrinjar, &Dimovski, 2007.
2.2. Empirical Review
The list of studies that examine the link between organization learning to performance is
extensive and they all found positive influence. Organizational learning plays an
important role as a strategic tool in modern management in order to obtain the
competitive advantage of the organization and to achieve organizational stability and
success.
Relationship between organizational learning and organizational performance: The
case of Croatia BY Tomislav Hernaus & Miha Skerlavaj(2008) :- The focus of the
paper is on the examination of organizational learning (OL) process and its link with
organizational performance (OP) The most important finding of the study is the empirical
evidence about existence of strong, statistically significant, positive relationship between
organizational learning and organizational performance
Impact of organizational learning on organizational performance: study of higher

education institutes by chaudhry shoaib akhtar & ahmed arif (September, 2011)
The present study is conducted to investigate the impact of organizational learning on
organizational performance of higher education institutes of Pakistan. Non-probability
purposive sampling strategy was adopted, the results revealed a significant positive
impact of the organizational learning on organizational performance. The present study
highlights the fact that organizational learning does influence organizational
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performance, but there are many more variables that influence the overall performance of
these institutions. Future researchers can take into account financial measures as
indicators of organizational dimensions. There are many other dimensions of
organizational learning which can also be incorporated for future studies
The relationship between organizational learning and firm performance: the

mediating roles of innovation and TQM by ipek koçoğlu & huseyin ince (2011)
The main purpose of this study is to evince the influence of organizational learning on
firm performance through the mediating roles of innovation and total quality
management (TQM)IN Turkey’s industries The survey form prepared was subject to a
pilot study in the field. The results of this study reveal strong positive relationship of
organizational learning with TQM and firm performance
Organizational learning and performance - an empirical study by Jyothibabu C &

Bibhuti B Pradhan ( January 2011):-The objective of this paper was to examine the
relationship between organizational performance and three levels of learning –
individual, group and organizational. This has
been done by using the organizational performance construct and learning outcome
constructs at individual level, group level and organizational level of the scale developed
by Jyothibabu et al. (2010) to test the hypotheses. The results of this study support the
organizational-level learning is of prime importance to overall firm performance
The impact of organizational learning on firm’s perceived financial performance:

taking the role of leadership as moderator by raja yasir ali & muhammad saad
20
ameer (2016):-The primary purpose of the study is to perform an exploratory research.
Survey is conducted among the six telecommunication companies working in the
Faisalabad the data is primary in nature. The study is quantitative in nature. A structured
close ended questionnaire is used and results are analyzed through regression with the
help of SPSS. Descriptive statistics was used. The study suggested that a statistically
significant relationship exists between the organizational learning and the financial
performance. It also revealed that this relationship even improved noticeably in the
presence of leadership (moderator). In future the, the same kind research may also be
carried out in some other context. It would be really interesting and fruitful to find the
results of this model in some different contexts. New variables and constructs may also
be added in the model for future research purposes.
The Role of Organizational Learning in Promoting Organizational Success A Study

on by Wageeh A. Nafei (2016) - Teaching Hospitals in Egypt:-The study attempts to
highlight the significant role of Organizational Learning in improving Organizational
Success. There is a statistically significant relationship between the dimensions of OL
(the dynamics of learning, conversion of the organization, employee empowerment,
knowledge management, and the application of technology) and Organizational success
at Teaching hospitals in Egypt- A survey research method was used to collect data- There
is a significant relationship between OL and OS at Teaching hospitals in Egypt.
Effect of Organizational Learning on Organizational Performance of Food

Manufacturing Firms in Nairobi County, Kenya BY Ruth Ouma* Henry
Kombo(2016) :-The study aim was to examine the effect of organizational learning on
organizational performance in food manufacturing firms in Nairobi County Kenya. The
study adopted correlational survey research design with a target population of 87 food
Manufacturing firms from Nairobi County. The study used disproportionate stratified
random sampling method to identify a sample that was representative of the 7 sub-sectors
of the food manufacturing industry. A sample of 71 firms was used in the study. To
summarize the data, descriptive statistics such as mean and standard deviation were used.
To examine the effect of organizational learning on organizational performance, multiple
regression analysis was used. The study lists Knowledge acquisition, Information
21
distribution, Information interpretation and Organizational memory as independent
variables and financial performance and Market performance as dependent variables. The
study results revealed that there was a positive and significant relationship between
organizational learning and organizational performance. The finding confirms that
information distribution and information interpretation are crucial in enhancing
organizational performance. However, knowledge acquisition and organizational memory
each had each a negative relationship with organizational performance thus establishing
that there is no relationship between knowledge acquisition and organizational
performance and organizational memory and organizational performance. However, the
combined effect of knowledge acquisition, information distribution, information
interpretation and organizational memory on organizational performance explained only
a 29.9% variation in performance. This indicates that there are other factors which could
influence organizational performance. Introduction of one or more of these factors can
provide a foundation for further research and introduction of other theories.
Manufacturing firms may differ in terms of knowledge needs and levels of competency in
this regard as compared to service firms and technological firms. Thus the results cannot
be generalized to all firms. Other contextual differences across counties may affect level
of performance as this study focused on manufacturing firms within Nairobi County only.
Does Individual And Organisational Learning Influence The Entreprenuerial

Success? By Ramanujam Veluchamy And Viswanathan Thangaraj (March 2019):-
The study aims at identifying individual and organizational learning influence on
entrepreneurial success on a sample of 150 (MSMEs) Entrepreneurs in Coimbatore
district, Tamilnadu, India, research design adopted for the study was descriptive The
survey was conducted using Stratified Random Sampling; the MSME entrepreneurs are
divided into different industries (strata) so that stratified sampling is used under this
study. The target population for this study consists of 980 individuals learning and
Organizational learning acts as an important variable/ factor in influencing the
organizational success in MSME entrepreneurs. The study recommends it is also possible
that the individual’s learning experience is confined only to the employee and goes along
with him/her when the employee leaves the organization. Thus the organization suffers
22
from knowledge deficiency. This paper provides a conceptual framework that shows
various enablers of learning and its relevance to success. Every MSME should identify
the enablers of learning and the sources from which the organization can capture the
individual and organization learning experience. Such experiences should be
institutionalized through a robust process
The Relationship Between Organizational Learning Capability And Business

Performance -The Case Of Vietnam Firms By Lien Thi Pham And Ha Viet Hoang.
(Accepted 17 September 2019):-The purpose of this paper is to explore the relationship
between organizational learning capability and business performance of Vietnamese
firms. The results confirmed that organizational learning capability has positive effect on
business performance As our world becomes more complex and uncertain it is crucial
that the capability of both individuals and organizations to learn regularly and rigorously
from their work is encouraged so that they may adapt rapidly and continuously to their
changing environments. (Garratt, 1999, p. 203) It is a dynamic concept with its use in
theory emphasizing the continually changing nature of the organization. It is also an
integrative concept that can unify various levels of analysis such as individual, group,
corporate, etc. (Dodgson, 1993). A questionnaire was developed based on research from
literature review with some small modifications for the questionnaire to be suitable with
Vietnamese context. Theoretically and empirically, organizational learning has been
shown to contribute positively to business performance. Managers should understand the
important organizational learning capability dimensions in order to make use of them
effectively to achieve their business performance objectives.
The Relationship between Organizational Learning and Sustainable Performance:

An Empirical Examination BY Anna Zgrzywa-Ziemak and Katarzyna Walecka-
Jankowska (SEP 2020):-The purpose of this study is to investigate the relationship
between organizational learning (OL) and business sustainability (BS) and to carry out its
empirical examination. The empirical studies have shown a positive, statistically
significant relationship between OL and Business sustainability. The studies were
conducted in the businesses functioning in two countries which have different approaches
23
to engagement in the issues of sustainable development: in Poland and in Denmark. The
study emphasized on the relationship between OL and organizational performance. The
empirical studies confirm the positive relationship between OL and organizational
performance.
2.3. Conceptual Framework
Commercial Banks are instrumental to nation building through services they offer such as
loan grants, safe custody of funds, exchange of foreign currency and promoting local and
international transactions (capone,2010).The survival of any organization, particularly, a
profit oriented organization depends to a large extent, on how well it can adapt to
environmental changes, accepts changes and do better in terms of its operations, (Odor,
Int J Econ ManagSci 2018).Commercial bank of Ethiopia is dominant and the biggest
institution that had a very tall growth ladder. Success of the bank has tremendous impact
in success of the country thus the study will assess impact of organizational learning on
organizational success.
Organizational learning
 Teamwork and Group
Problem-solving
 Clarity of Purpose and Mission
 Clarity of Purpose and Mission
 Transfer of Knowledge
 Experimentation
 Leadership Commitment and
Empowerment
Independent Variable Dependent Variable
24
Organizational Success
 Financial performance
 Customer/Market
performance
 Process performance
 People Development
performance
 Preparing for the Future
25
CHAPTER 3
3. RESEARCH METHODOLOGY
3.1. Description of the Study area
CBE is the pioneer to introduce modern banking to the country.it is the oldest and the most
successful financial service provider in Ethiopia, in the amount of deposit it mobilizes, the credit it
avails and other modern and technology based bank products as well as other services it provides.
According to banks annual report for the year 2018/19 It has more than 1,444 branches being the
most accessible bank inside the country. The bank Has Strong correspondent relationship with
about 44 renowned foreign banks, SWIFT bilateral key arrangements with over 750 banks also the
bank has Strong assets position of Birr 712.9 billion and More than 37,894 committed permanent
employees as of the bank recognize team work is the core value for its success.
3.2. Research Design and Approach
In order to achieve the main research objectives quantitative research design approach is adopted.
This approach is useful as it helps the researcher to prevent bias in gathering and presenting
research data. Well designed and implemented quantitative research has the advantage making
generalizations to a wider population from the sample. The research design sets the procedure on
the required data, the methods to be applied to collect and analyze this data, and how all of this is
going to answer the research question (Grey, 2014). Descriptive research which is type of
quantitative research will be applied together with explanatory research design with the aim to
accurately and systematically describe a population, situation or phenomenon. The study used both
descriptive research design and explanatory research design according to Kumar, 2011 a descriptive
1
study attempts to describe systematically a situation, problem, phenomenon, service or describes
attitudes towards an issue. Explanatory research is research that focuses on studying a situation or a
problem in order to explain the relationships between variables (Saunders,Lewis, & Thornhill,
2009). Therefore, adopting this approach on case study of Commercial Bank of Ethiopia inquiry
will be to gain wide exploration about the phenomenon being studied.
3.3. Data type and Sources
Both primary and secondary data will be used to perform the study. Primary data will be collected
through setting adopting questionnaire from Goh 2007 and Maltz2003 in person. Structured
Questionnaires was given to employees and managers of each branch’s. The questionnaires are
close ended questions and the Further, secondary data was collected from documentations such as
scholarly papers, publications and appropriate websites that are relevant to this study. Data collected
will be analyzed quantitatively. An ordinal scale helps to measure variables. Therefore 5
point Likert scale measurement will be used with the assumption that likertscale will
enable the respondent to answer the survey easily. The choices represent the degree of agreement
each respondent has on the given question.
3.4. Study Population and Sampling Design
3.4.1 Population
Commercial Bank of Ethiopia has more that 37,000 (thirty seven thousand) employees in 15
districts branches stretched across the country as of June 2018/2019 banks annual report. The
population of the study consisted of all employees
2
3.4.2 Target population
The study population will be commercial bank of Ethiopia shashemene town 10 branchs
namely Abosto, Al Imam Arada Gebeya , Bulchana, Gibrina sefer, Harufa, Hessa
Melkaoda ,Oda and ,Shashemene having 19,10,20,32,13,55,15,22,56,62 employees
respectively. Currently 304 individuals are working in shashemene town in 10 branches
at different positions as Br. Managers, branch operation manager, branch business
manager, banking operation officer, banking business officer.The level of branches
graded in CBE Grade-1, Grade-2, Grade-3 and Grade-4 based on number of customer,
volume of transaction and other criteria.
3.4.3 Sampling frame
The attempt to observe all cases in a population may actually describe a population less
accurately than a carefully selected sample. The reason is that the planning and logistics
of observation are more manageable with a sample" (Singleton & Straits, 2010, p. 151).A
representative sample represents the target population (poulis et al, 2013).to determine a
sample size Frels and Onwuegbuzie (2012) indicated that researchers must depend on
nature of the topic and availability of data. How adequate the sample size is important to
determine the data saturation level in the study(Fusch and Ness (2015)
3
Sampling size Table
by Ronán Conroy
Therefore taking margin of error ±10 if size of population is ≤ 500 from the total
population sample size 81 is enough. Hence the study used proportionate stratified
random sampling method to identify a sample that was representative of the 10 branches
from the town.
NO Branch Names NO. of Proportional sample size

employees
1 Abosto 19 (19/304)*81=5
2 Al Imam 10 10/304)*81=2
3 Arada Gebeya 20 (20/304)*81=5
4 Bulchana 32 (32/304)*80=9
5 Gibrinasefer 13 (13*304)*81=3
6 Harufa 55 (55/304)*81=15
7 Hessa 15 (15/304)*81=4
8 Melkaoda 22 (22/304)*81=6
9 Oda 56 (56/304)*81=15
10 Shashemene 62 (62/304)*81=17
Total 304 81
Table 2. Sample size table
3.5. Method of Data Analysis
4
The data collected through closed ended questionnaire from sample population of CBE
staffs and management will be analyzed with descriptive statistics. Descriptive statics
enables us to present the data in a more meaningful way, which allows simpler
interpretation of the data. The quantitative data which were collected using five point
Likert scales in the questionnaire have been entered in to the a statistical software known
as statistical package for social Scientists SPSS for the analysis. Since the data which
were acquired using Likert scales were ordinal data types, mode of frequencies and
percentage have been used to measure the central tendency of the data in the data set.
The processed information has been presented using frequency tables and percentages.
3.6. Reliability
3.6.1 Reliability
Internal consistency reliability is a measure of consistency between different items of the

same construct (Bhattacherjee, 2012). Cronbach‘s alpha is a reliability measure designed
by Lee Cronbach in 1951, factors in scale size in reliability estimation (Ibid). If a
multiple-item construct measure is administered to respondents, the extent to which
respondents rate those items in a similar manner is a reflection of internal consistency
(Ibid).For testing the reliability of the data instrument; Cronbach‘s alpha was calculated
to test the reliability of the research instrument.
Table 3.1 reliability statistic
Reliability statistics
Cronbach’s Alpha N of items
.648 6
5
A general accepted rule is that of 0.6-0.7 indicates an acceptable level of
reliability. Hence, this study scored a reliability level 0.648 which is acceptable.
3.6.2 Validity
Validity often called content validity refers to the extent to which the measurement
device, in our case the measurement questions in the questionnaire, provides adequate
coverage of the investigative 27 questions. Judgment of what is adequate coverage can be
made in a number of ways. One is through careful definition of the research through the
literature reviewed and, where appropriate, prior discussion with others (Saunders, Lewis,
& Thornhill, 2009).To validate the study free from bias, the questionnaires were
developed and forwarded for one subject matter experts in the organization and also my
advisor to comment on the content as well the measurement incorporated were valid
enhance validity.
3.7. Ethical Consideration
According to Creswell (2012) as the researchers anticipate data collectors, they need to
respect the participants and sites for the research‘‘. The study was conducted by
considering ethical responsibility. This includes providing information to the respondents
the purpose of the study and the use of the information as well. Information obtained was
held in strict confidentiality by the researcher. Respondent’s anonymity was kept so that
participants would feel free to express their ideas
6
CHAPTER FOUR
RESULTS AND DISCUSSION
This chapter presents the discussions and analysis of the data gathered from the
respondents through questionnaire. The study tried to assess the impact of organizational
learning on organizational success in line with commercial bank of Ethiopia the case of
shashemene town branches. In this chapter the major findings of the study were analyzed
and discussed in line with the stated specific objectives that lead to draw conclusions and
recommendations.
4.1 DESCRIPTIVE ANALYSIS
This descriptive analysis is used to look at the data collected and to describe that
information. It is used to describe the demographic factors for more clarification. It is
mainly important to make some general observations about the data gathered for general
or demographics questions. The demographics factors used in this research are job title,
sex, age, education qualification and work experience and. For the scale typed
questionnaires for all variables mean or average response of respondents was used. Here
the variable under study was team work & group problem solving, clarity of purpose &
mission, transfer of knowledge, experimentation, leadership commitment &
empowerment and organizational success.
4.1.1 DEMOGRAPHIC CHARACTERSTICS OF RESPONDENTS
This part starts with the analysis of the demographic data gathered from the respondents
using frequencies and percentages. Accordingly, the general respondent’s characteristics
including: sex, age, educational level, job title and work experience are presented in
Table 4 below.
7
Table 4: demographic characteristics of respondents
Respondents Categories Frequencies Percent

Characteristics
CSO 30 37
Job title of employees
CSM 20 24.7
SENIOR 23 28.4
MANAGER 8 9.9
SEX
Male 48 59.3
Female 33 40.7
AGE 18 – 25 9 11.1
8
26 – 35 40 49.3
Above 3 32 39.5
1st Degree 51 63
EDUCATION
LEVEL
Masters 30 37
Less than 3 17 21
EXPERIENCE
LEVEL OF
RESPONDENTS
3–5 38 46.9
6 - 10 17 21
Above 10 9 11.1
(Source: analysis of survey data using SPSS V22, 2021)
From the above table 4: about 37 % of employees are customer service officers, followed
by 28.4 % of them are senior staffs and the rest 24.7 % and 9.9 % of the respondents are
customer service managers and branch managers respectively.
9
59.3 % of employees were male and the remaining amount 40.7 % staffs were females.
This implies that the CBE employees were dominated by male employees and female’s
staffs was low relative to male.
The age of majority employees were between 26 and 35 years old that accounts49.3%.
Employees who were in the age range of above 35 years were 39.5 %, employees who
were between18 – 25 years were 11.1 %.
Considering the respondent level of education 63 % of the respondents were Degree

holders and 37 % were master’s degree holder. This signifies that the majority of
respondents were first degree holders in terms of their educational level.
Work experience of the majority of the employees were between 3 up to 5 years that
accounts 46.9 %. The remaining employees work experience were between 6 up to 10
and less than 3 years staffs accounted equal level of 21 % and the remaining 9 staffs who
accounted for 11.1 % of them are in the experience level of above 10 years. From this we
can conclude that most of the staffs have good work experiences which can help them to
do their job effectively and efficiently.
4.1.2. Descriptive Statistics for basic research questions
The objective of this study was to assess the impact of organizational learning on
organizational success in the case of commercial bank of Ethiopia shashemene town
branches. Hence the following basic research questions were raised.
Does organizational learning have an impact on organizational success in commercial

bank of Ethiopia shashemene town branches?
In this section, employees’ level of satisfaction regarding to the practice of organizational

learning and organizational success was reviewed. Because if employees are satisfied by
the organization commitment in providing organizational learning practice, it enhance the
organization performance by initiating them to exert their maximum effort to provide
quality oriented service.
Responses were measured on five point Likert scale with 1= Strongly Disagree; 2=
Disagree; 3= Neutral; 4= Agree; and 5 = Strongly Agree. To make easy interpretation,
the following ranges of values are assigned to each scale: 1.50 or less = Strongly
10
Disagree; 1.51- 2.50 = Disagree; 2.51- 3.49 = Neutral; 3.50 – 4.49 = Agree; and 4.50 and
greater = Strongly Agree.
To analyze the collected data in line with the overall objective of the research
undertaking, statistical procedures were carried out using SPSS version 22 software.
4.1.2.2. Employees’ Awareness towards Team work and group problem
solving
Table: 4.1: awareness towards team work and group problem solving
N Mean Std. Deviation
Current practice in the bank encourages
employees to solve problem together before 81 3.59 .92
discussing it with a manager
we usually form informal groups to solve
81 3.78 .74
organizational problem
Average mean and std. deviation 3.68
As for respondents’ level of understanding about team work and group problem solving
concepts majority of the respondents were able to identify with the concepts on the
contrary some of respondents reply negatively with the statement. What is more
explaining the respondents’ level of understanding; average ` mean value of 3.68 with
average standard deviation of this implies that employees of the organization show their
agreement with the described statement concerning about awareness of concepts.
Based on this finding one can deduce that employees have good awareness of learning
given by organization from its components perspective. Sheikh (2009) found that the
employee’s awareness of training and development, career development, organizational
development and performance appraisal practices are conducive for both enhancement of
the capacity of employees and achievement of organizational goals in public banks
Pakistan supports this research finding.
11
4.1.2.3. Clarity of Purpose and Mission
Table 4.2: descriptive statistical review of clarity of purpose and mission

practice
we have opportunities for self-

assessment with respect to goal 81 3.81 .71
attainment
The banks mission statement identifies

values to which all employees must 81 3.90 .60
conform
Average mean and SD value 3.85
Based on the finding one can conclude that, CBE were implement good practice in
review of clarity of purpose and mission for the employees. As shown above in table 4.2:
the data shows high mean score of 3.85 which indicates that clarity of mission and
purpose is among the key elements of organizational learning that highly satisfies
individual and organizational success.
4.1.2.4. Transfer of Knowledge
12
Table 4.3: employees awareness of transfer of knowledge
failure are often constructively discussed in

81 3.74 .86
our bank
new work process that may be useful to the

bank as a whole are usually shared with all 81 3.64 .96
employees
Average mean and std. deviation 81
As shown in the above table the mean value, M =3.74, SD =o.86 values indicates that the
majority of the respondents agree with the question; failure are often constructively
discussed in our bank. The result indicates that employees are ready to discuss about
failures in the bank which implies that it’s a constructive idea for the bank which further
leads the bank in to success. Whereas the strong mean values of M= 3.64 and SD= 0.96
values for the question; new work process that may be useful to the bank as a whole are
usually shared with all employees. It can be concluded that, the respondents positively
agree on the fact that when new work process arrived in the bank they have a culture of
sharing the idea with all employees which is further have a positive impact on
organizations success. Generally the finding implies that, the organization has a good
performance regarding with creating awareness of transfer knowledge.
13
4.1.2.5. Experimentation
Table 4.4: respondents review of experimentation
I can often bring new idea in to the bank 81 3.72 .84
from my experience people who are new in this bank

81 4.07 .61
are encouraged to question the way things are done
managers in this bank encourages team members to

81 3.64 1.06
experiment in order to improve work process
in my experience new ideas from employees are

81 3.42 1.09
treated seriously by management
Valid N (listwise) 81
14
As the statistical data depicted in table 4.4 the experience people who are new in this
bank are encouraged to question the way things are done according to the respondents
with M= 4.07, SD= 0.61. This implies that the organization encourages new peoples in
the bank to ask questions about the way they are doing. Many of the employees also
agreed that, they bring new idea to the bank with the second high mean score of M= 3.72,
SD= 0.84 values. This implies that the organization takes new ideas from his employees
which is the best culture that leads the organization in to success. Since everything is
possible with positive idea, it’s an excellent culture that could be grow and makes CBE
the best financial institution in Ethiopia. The respondents also implied positively that
managers in this bank encourages team members to experiment in order to improve work
process and new ideas from employees are treated seriously by management with mean
score of M= 3.64, SD= 1.06 values and M= 3.42, SD= 1.09 values respectively.
Generally, according to table 4.4 of the descriptive statistical data analysis shows that the
range 3.51 – 4.50 (good) indicating that the organization gave due emphasis on
experimentation.
4.1.2.6. Leadership Commitment and Empowerment
Table 4.5: statistical review of leadership commitment & empowerment
senior managers in this bank do not resist change

81 3.62 .64
and are ok with new ideas
senior managers and employees share a common

81 3.70 .62
vision of what our work should accomplish
15
managers in this bank can accept criticism without
81 3.69 .73
becoming overly defensive
managers often provide useful feedback that helps

81 3.48 .88
to identify potential problem and opportunities
managers frequently involve employees in

81 3.46 .81
important decision
Valid N (list wise) 81

In this section, the researcher analyzed the impact of leadership commitment and
empowerment of employees on organizational success. Based on the replays of the
question whether or not senior managers and employees share a common vision of what
our work should accomplish with the mean values of M= 3.70, SD= 0.62 which implies
that the employees of the company are committed to share common visions towards the
work they accomplish. Most of the respondents agree with the question managers often
provide useful feedback that helps to identify potential problem and opportunities and
senior managers in this bank do not resist change and are ok with new ideas with the
mean values of M= 3.69, SD= 0.88 and M= 3.62, SD=0.64 respectively. This implies that
managers and senior managers in the organization are open to receive critics from the
employees and they have a culture of not hesitating change which further implies that the
organization is successful in leadership commitment and empowerment towards
Finally the question that, managers often provide useful feedback that helps to identify
potential problem and opportunities and managers frequently involve employees in
16
important decision scored the mean values of M= 3.48, SD= 0.88 and M=3.46, SD= 0.81
respectively which implies that potential problems are identified with a sound feedback
by the managers and as well as the managers give a chance to the subordinates in order to
involve in important decisions. This implies that the organization gives due attention to
empowering employees which is an excellent organizational culture that paves a way for
4.2. CORRELATION ANALYISIS
In this section, correlation analysis conducted in the light of research questions. The
relationship between organizational success and organizational learning was investigated
using two-tailed Pearson correlation analysis. This provided correlation coefficients
which indicated the strength and direction of relationship. The p-value also indicated the
probability y of this relationship’s significance. These findings are presented below.
On this study Pearson Correlation Coefficient were used to analyze the relationship
between organizational learning practices (team work and group problem solving, clarity
of purpose and mission, transfer of knowledge, experimentation and leadership
commitment and empowerment) and organizational success. Many authors believe that
this statistical method is very robust in assessing the strength of relationship between
variables (Mugenda and Mugenda, 2003; Cooper and Schindler, 2006; Saunders et al.,
2009). Besides that ,Cohen and Swerdlik (2002) posit that the Pearson Product Moment
Correlation Coefficient is a widely used statistical method for obtaining an index of the
relationships between two variables when the relationships between the variables is linear
and when the two variables correlated are continuous. Hinkle, et.al (1998) Cite from
Herman proposed the rules of thumb that need to be used in interpreting the R-value
obtained from inter correlation analysis in Table 4.6 as below.
Karl Pearson‟s coefficient of correlation (r) is used to establish the relationship between
the variables under studied. It also indicates the direction and how much relationship
exist between the variables. The value of correlation lies between positive one to negative
one. Table 4.6 shows the correlation between variables.
17
Table 4.6: Correlations between organizational learning and organizational success
Team Clarity Leadership

work of transfer of commitment
Experimentatio organizationa
& purpos knowledg and
n l success
group e and e empowermen
pro mission t
1.00 -.58** .27* .01 -.13 .12

Pearson
Correlatio
n
Team work and

group problem
solving Sig. (2-
.00 .02 .92 .24 .30
tailed)
N 81.00 81.00 81.00 81.00 81.00 81.00
Pearson
Correlatio -.58** 1.00 -.07 .22* .44** .13
n
Clarity of
purpose and
Sig. (2-
mission .00 .53 .04 .00 .26
tailed)
N 81.00 81.00 81.00 81.00 81.00 81.00
18
.27* -.07 1.00 .42** .23* .20
Pearson
Correlatio
n
transfer of
.02 .53 .00 .04 .07
knowledge
Sig. (2-
tailed)
N 81.00 81.00 81.00 81.00 81.00 81.00
Pearson
Correlatio .01 .22* .42** 1.00 .43** .51**
n
Experimentatio .92 .04 .00 .00 .00

n Sig. (2-
tailed)
N 81.00 81.00 81.00 81.00 81.00 81.00
-.13 .44** .23* .43** 1.00 .59**

Pearson
Leadership Correlatio
commitment n
and
empowerment
.24 .00 .04 .00 .00
19
Sig. (2-
tailed)
N 81.00 81.00 81.00 81.00 81.00 81.00
Pearson
Correlatio .12 .13 .20 .51** .59** 1.00
n
organizational .30 .26 .07 .00 .00

success Sig. (2-
tailed)
N 81.00 81.00 81.00 81.00 81.00 81.00
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).
Pearson Correlation test was conducted to know whether there is significant correlation
or not between team work and group problem solving and organizational success. As it is
clearly indicated on the above table, there is positive correlation between team work and
group problem solving and organizational success. The result of correlation analysis
prove that team work and group problem solving and organizational success are
correlated but with weak correlation (0.12).
20
Clarity of purpose and mission and transfer of knowledge has correlated positively with
organizational success but both has no significant effect on organizational success with a
significant value of 0.13 and 0.20 respectively.
As displayed in the above table, Pearson Correlation was computed so as to determine
whether there are significant relationships between organizational success and
experimentation and leadership commitment and empowerment. The variables that found
significant and positive correlation with organizational success and significant value of
are experimentation and leadership commitment and empowerment with a positive value
of, r= 0.51 and r= 0.59 respectively. This implies that organizational success is highly
affected by the experimentation level of the staffs and the leadership commitment and
empowerment level of the employees at CBE.
Hence, out of the five variables that were expected to affect organizational success only
two of them are i.e. experimentation and leadership and commitment level found to be
statistically significant.
4.2.1. CORRELATION MATRIX
Correlation matrix indicates the relationship between two independent or independent

dependent Variables. Correlation matrix examines the direction of relationship among
two variables and how one variable is related to another. Correlation matrix also indicates
the problem of multicollinearity. If coefficient of correlation among two explanatory
variables has absolute value equal or above 0.80, there is severe problem of multi
collinearity (Gujarati, 2004).
Table-4.6 above represents the correlation among some selected independent variables
and verifies no problem of multicollinearity, as all values are less than 0.7. Hence there is
no multicollinearity among the independent variables.
21
4.3. REGRRESSION ANALYSIS
Table 4.7: showing the regression Coefficientsa
Standardiz
ed
Unstandardized Coefficient
Coefficients s
Model B Std. Error Beta t Sig.
1 (Constant) 33.027 3.663 9.017 .000
TGPS .376 .274 .148 1.371 .174
Clarity of purpose
-.266 .285 -.109 -.935 .353
and mission
transfer of
-.295 .256 -.112 -1.152 .253
knowledge
Experimentation .492 .144 .346 3.428 .001
22
Leadership
commitment and .690 .133 .533 5.174 .000
empowerment
a. Dependent Variable: organizational success
From the regression equation, if all factors are taking constant at zero, the organizations
success will be 33.027. The findings also show that if all other independent variables are
taking to zero, clarity of purpose and transfer of knowledge is negatively related to
organizational success but it is also insignificant and it explains non-linear relationship
between clarity of mission and purpose and knowledge transfer of the employee and
A unit increase in team work and group problem solving habit will lead to o.376 or 37.6
% increase in organizational success.
Finally the two variable experimentation and leadership commitment and empowerment
has a strong impact on organizational success with a value of a unit increase in both
variable leads to 0.492 and 0.690 increase in organizational success and they are
statistically significant variables since their p- values are less than the common alpha
level 0.05.
4.3.1. Coefficient of Determination
Table 4.16 shows the coefficient of determination of 0.685 which implies there is a
positive relationship between the variables under studied. The R square (R 2 is the
explanatory power which shows that 0.469 of organizational success is explained by
(organizational learning) Leadership commitment and empowerment, TGPS, transfer of
23
knowledge, Experimentation, Clarity of purpose and mission Table 4.8 shows the
detailed:
Table 4.8. Model Summary
Change Statistics
Std. Error
R Adjusted of the R Square F Sig. F
Model R Square R Square Estimate Change Change df1 df2 Change
1 .685a .469 .434 2.285 .469 13.260 5 75 .000
a. Predictors: (Constant), Leadership commitment and empowerment, TGPS, transfer of

knowledge, Experimentation, Clarity of purpose and mission
4.3.2. ANOVA (Analysis of Variance)
The study used ANOVA to establish the level of significance of the regression with the f
static value of p with less than 0.05 with the confidence level of above 95 %. Table 4.9
shows the ANOVA.
Table 4.9: ANOVAa
Sum of
Model Squares df Mean Square F Sig.
24
1 Regression 346.295 5 69.259 13.260 .000b
Residual 391.730 75 5.223
Total 738.025 80
b. Predictors: (Constant), Leadership commitment and empowerment, TGPS,

transfer of knowledge, Experimentation, Clarity of purpose and mission
4.3.3. Test for multicollinearity
Table 4.10 below represents the correlation among some selected independent variables
and verifies no problem of multicollinearity, as all values are less than 0.7. Hence there is
no multicollinearity among the independent variables. And also the variance inflation
factor results are less than 10 represents there is no problem of multi collinearity.
Table 4.10: collinearity statistics Coefficientsa
Model 95.0% Confidence Interval forCollinearity Statistics

B
25
Lower Bound Upper Bound Tolerance VIF
(Constant) 25.73 40.32
TGPS -.17 .92 .60 1.65
Clarity of purpose and

-.83 .30 .52 1.93
mission
1.00
transfer of knowledge -.80 .21 .75 1.34
Experimentation .21 .78 .70 1.44
Leadership commitment
.42 .96 .67 1.50
and empowerment
26
CHAPTER FIVE
5. SUMMARY OF FINDINGS, CONCLUSSION AND RECOMMENDATION
5.1. INTRODUCTION
This chapter deals with summary of the findings and conclusion of the study. It also gives
recommendations to financial institutions and government. Further studies and research
suggestions are also given.
5.2. SUMMARY OF FINDINGS
The main objective of this research is to show the impact of organizational learning on
In conducting this study, the required data is obtained through structured questionnaires.
The instruments (questionnaires) used in this study were modified by the researcher
based on prior study in order to measure all variables of the study. To check the validity
and reliability of the instruments validity and reliability test was also carried out. A total
of 81 questionnaires were distributed to staffs of CBE, among these all 81 of them were
returned, thus, 107 returned questionnaires were analyzed using statistical package for
social science (SPSS version 22). In the analysis descriptive statistics and inferential
which is Pearson correlation test was performed.
5.3. CONCLUSSION
 The results indicated that there is a positive relationship between organizational

learning and organizational success. Organizational learning plays a vital role in
determining success and performance of the bank. Organizational learning is
important for organizational goal attainment. In this study the majority of the
respondents indicated that the contribution of learning towards the improvement
of organizational success was very significant.
27
 Based on the finding one can conclude that, CBE were implement good practice
in review of clarity of purpose and mission for the employees which further has
an impact in organizational success too.
 It can be concluded that, the respondents positively agree on the fact that when
new work process arrived in the bank they have a culture of sharing the idea with
all employees which is further have a positive impact on organizations success.
Generally the finding implies that, the organization has a good performance
regarding with creating awareness of transfer knowledge.
 The variables that found significant and positive correlation with organizational
success and significant value of are experimentation and leadership commitment
and empowerment with a positive value of, r= 0.51 and r= 0.59 respectively. This
implies that organizational success is highly affected by the experimentation level
of the staffs and the leadership commitment and empowerment level of the
employees at CBE.
 Two variable experimentation and leadership commitment and empowerment has
a strong impact on organizational success with a value of a unit increase in both
variable leads to 0.492 and 0.690 increase in organizational success and they are
statistically significant variables since their p- values are less than the common
alpha level 0.05.
 Finally (R2 is the explanatory power which shows that 0.469 of organizational
success is explained by (organizational learning) Leadership commitment and
empowerment, TGPS, transfer of knowledge, Experimentation, Clarity of purpose
and mission.
5.4. RECOMMENDATION
By depending up on the reviewed literature and the study findings the researcher
recommended the following:
 As the age of the respondents are relatively young more organizational

learning program should be introduced and high emphasis should be given for
the selection of employees and equal opportunities should be given for all
employees to take organizational learning packages.
28
 It is undeniable fact that the recent times many organizations have come to
realization of the importance of role of learning programs as it increases the
organization staff efficiency, skill and productivity which boosts
organizational success. Due to this fact, organization must be clear about the
learning requirements. Therefore both managers and employees must
collaborate effectively and communicate the request for learning. Learning
selection policy and procedures should be applied consistently.
 Finally the organization success is highly linked with employee performance
and employee performance relies on the learning received, organization
should work hard with developing their employee’s performance by giving
them the right learning packages by the right time.
29
APPENDICES
APPENDIX 1: QUESTIONNAIRE
MaddaWalabu University School of Business and Economics
Department of Management
Dear Respondents: This questionnaire is a supporting document for my thesis which is

on “impact of organizational learning on organizational success in Commercial Bank of
Ethiopia shashemene town branches. The objective of the questionnaire is to obtain firsthand
information as an input to my research. Therefore, I kindly request you to answer the
questions with due care and reflecting your genuine attitudes so that the findings will be fair
presentation of the reality. I can assure you that the information you provide will be
completely anonymous and will not be used for any other purpose it will use only for
academic purpose. Please note that any personal information including the identity of your
organization will not be disclosed in the final presentation of the paper. The researcher thus
appreciates in advance your cooperation and sparing your valuable time in filling this
questionnaire (responding to the questions).
Thank you! Feven Teshome
Respondent profile
Please use this mark in the box “√” Where it applies
1) Job Title: __________________________
30
2. Sex : □Male □Female
3. Age : □ 18-25 □ 26-35 □ Above 35
4. Your Education level: □ Diploma □ First Degree □ Masters □ Above Masters
5. Total Year of experience in the Banking Industry (any bank)
□ < 3 years □3-5years □6-10 years □Above 10 years
Questionnaire (organisational learning and success)
Organisational learning (Goh et. al., 2007)
31
No Teamwork and Group Problem-solving Response scale
.
1 2 3 4 5
1.1 Current practice in the bank encourages employees to
solve problems together before discussing it with a
manager
1.2 We usually form informal groups to solve
organizational problems
Clarity of Purpose and Mission
2.1 The bank's mission statement identifies values to
which all employees must conform

2.2 We have opportunities for self-assessment with
respect to goal attainment

Transfer of Knowledge
3.1 Failures are often constructively discussed in our
bank
3.2 New work processes that may be useful to the bank
as a whole are usually shared with all employees

Experimentation
4.1 I can often bring new ideas into the bank
4.2 From my experience, people who are new in this
bank are encouraged to question the way things are
done
4.3 Managers in this bank encourage team members to
experiment in order to improve work processes

4.5 In my experience, new ideas from employees are
treated seriously by management

Leadership Commitment and Empowerment
5.1 Senior managers in this bank do not resist change
and are ok with new ideas

5.2 Senior managers and employees in this bank share a
common vision of what our work should accomplish

32
5.3 Managers in this bank can accept criticism without
Organisational success (Maltz et. al, 2003)
No Items Response scale
.
1 2 3 4 5
1 The bank has an increased customer satisfaction
2 The bank exhibited an improved service quality
3 The bank has good corporate image
4 The bank exhibited an increased revenue
5 The bank exhibited an increased profit margin
6 The bank exhibited a healthy cash flow
7 The bank provide enough Employee skills training
8 The bank has quality professional/technical
development
9 The bank provide Employee satisfaction survey
10 The bank has superior strategic plan
11 The bank has Articulated and supportive HR policy
12 The bank did well on quality of leadership
development
13 The bank is competitive in new technologies
33
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IMPACT OF ORGANIZATIONAL LEARNING ON

ORGANIZATIONAL SUCCESS CASE STUDY ON

A Thesis Proposal Submitted to

Submitted by: Feven Teshome

MaddaWalabu University College of Business and Economics Management

and preparing me for my future

1.1 Background of the study....................................................................................1

1.2. Statement of the Problem..................................................................................7

1.3. Objectives of the Study.....................................................................................8

1.3.1. General Objective..............................................................................8

1.3.2. Specific Objectives............................................................................8

1.4. Research Questions...........................................................................................8

1.5. Scope of the Study............................................................................................8

1.6. Significance of the Study..................................................................................9

1.7. Limitation of the Study...................................................................................10

1.8. Operational Definition of Terms.....................................................................10

1.9. Organization of the Study...............................................................................11

2. REVIEW OF RELATED LITERATURE.................................................................12

2.1.1. Definition and concepts of organizational learning and

2.2. Empirical Review............................................................................................19

2.3. Conceptual Framework...................................................................................26

3.1. Description of the Study area..........................................................................28

3.2. Research design and approach........................................................................28

3.3. Data type and Sources.....................................................................................29

3.4. Study Population and Sampling Design.........................................................30

3.4.2 Target population..............................................................................30

3.4.3 Sampling frame.................................................................................30

3.5. Method of Data Analysis................................................................................32

3.6. Ethical Consideration......................................................................................33

Table 1. sample size determination table--------------------------------------------------------31

Table 2. Sample size table -------------------------------------------------------------------------32

1.1 Background of the study

In current complex business environment every organization needs to have up to date

knowledge about their customers, customer preferences, product range, suppliers,

competitors, technology, capabilities and resources of the competitors. In such an

environment, a controlled system with a strong financial orientation is no longer

appropriate and can even be counter productive.in order to maintain sustainable

is in fact firm’s ability to learn faster than its competitors.

learning thereafter it becomes organizational. Individual learning occurs with the

acquisition or creation of knowledge, group learning happens when this knowledge is

and characteristics of the organization itself (S.-h. Liao et al.2008).

facilitates learning in order to continually transform itself to survive and excel in a

rapidly changing business environment”.

Organizational learning is the process of intense interaction around an organization in

which learning is aimed at changing or developing old knowledge. It is the process of

distinction and adapts to environmental changes. This requires ensuring continuity of

committed to best realize stakeholders needs through enhanced financial intermediation

globally and supporting national development priorities, by deploying highly motivated,

skilled and disciplined employees as well as state-of-the-art technology. The bank

year. Consequently, its performance and competitive position remained strong. It

resource development as a focal area as part of its ongoing development program to

of modern banking technologies by including digitalization as one strategic theme. The

industry’s branch network, deposit and asset, respectively.

The performance of commercial bank of Ethiopia is a key in determining the overall

According to Aidemark (2009), from the total knowledge of an organization, 80% is

in their organizations. Hence, a detail investigation of those impacts on organizational

with respect to organizational learning construct in Commercial Bank of Ethiopia. In

learning on organizational success in commercial bank of Ethiopia Shashemene town. If

1.3. Objectives of the Study

1.3.1. General Objective

the study has the following specific objectives

1.3.2. Specific Objectives