CPU Business and Information Technology College

The Effect of Organizational Culture on Employees

Commitment: The case of Ethio Telecom Addis Ababa Head
Office.

BY: AREGITU BIAZEN

August,2021
Addis Ababa, Ethiopia
CPU Business and Information Technology College
Department of Business Administration

The Effect of Organizational Culture on Employees

Commitment: The Case of Ethio Telecom Addis Abeba
Head Office.

By: Aregitu Biazen

Advisor: Yirgalem (DR)

August,2021

Addis Ababa, Ethiopia

CPU Business and Information Technology College Department

s of Business Administration

The Effect of Organizational Culture on Employees

Commitment: The Case of Ethio Telecom Addis Abeba Head
Office.

Approval

Board of Examiners

Yirgalem Gerba (Dr) _______________ ________________

Research advisor Signature Date

_________________ _______________ ________________

Internal examiner Signature Date

_________________ ________________ ________________

External examiner Signature Date

August 2021
Addis Abeba, Ethiopia

Table of content
 Declaration
I, Aregitu Biazen announce this research paper entitled “The effect of
organizational culture on employees’ commitment: the case of ethio
telecom Addis Abeba head office” is my original research work of that is done
under the support of my advisor for any other requirements all sources of
materials used for the study have been duly acknowledged.

This study has been done in partial fulfillment for Master of Business
Administration (MBA) program.

Researcher
Aregitu biazen signature ____________ Date ___________

advisor:
Yirgalem Gerba signature ____________ Date ___________
 Acknowledgments
First and foremost, I would like to thank Almighty God and his mother, the
Virgin Mary, for helping me begin and end this study.
I would like to express my sincere gratitude to my advisor, for the time being,
for constructive feedback and for his prompt response. And also, I would like to
thank Ethio telecom's head office employees and management for donating their
precious time and by filling out the questionnaires. Finally, I would like to
thank my family and all who have done this research.
Acronyms
LIST OF TABLES
LIST OF FIGURES
ABSTRACT
 CHAPTER ONE: INTRODUCTION

Background of the Study

Culture, at the workplace, is a very powerful force, which is consciously and deliberately
cultivated and is passed on to the incoming employees (Nadaraj, 2008) It is the very thread
that holds the organization together. Organizational development has some features that can
increase sustainability on basis of effectiveness. The enhancement in performance
contributes to employee commitment while norms, values and objectives contribute to
enhancing the culture of an organization (Awadh & Saad, 2013).

Culture is a key advantage when it comes to attracting talent and outperforming the
competition. 77 percent of workers consider a company’s culture before applying, and almost
half of employees would leave their current job for a lower-paying opportunity at an
organization with a better culture. The culture of an organization is also one of the top
indicators of employee satisfaction and one of the main reasons that almost (65%) of
employees stay in their job.(Kellie Wong,2020).

Organizational culture is the set of important assumptions often unstated that members of an
organization share. There are two major assumptions in common: beliefs and values. Beliefs
are assumptions about reality and are derived and reinforced by experience. Values are
assumptions about ideals that are desirable and worth striving for. When beliefs and values
are shared in an organization, they create a corporate culture (Azhar, 2003). Schein (2004)
defined organizational culture as a dynamic force within the organization, which is revolving,
engaging and interactive and it shapes up by the employees and managements gestures,
behaviors, and attitudes. It is a relatively uniform perception held of the organization, it has
common characteristics, it is descriptive, it can distinguish one organization from another,
and it integrates individuals, groups, and organization systems variables.

For employees, it is either the glue that bonds people to an organization or what drives them
away. Managers, today, are increasingly challenged with changing an organizations culture to
support new ways of accomplishing work. Therefore, the purpose of this study is to create a
better understanding of organizational culture and employee commitment at a selected
company. This study attempts to look at a small business enterprise and ascertain the
prevailing as well as the expected culture.
Organizational culture is the proper way to behave within the organization. This culture
consists of shared beliefs and values established by leaders and then communicated and
reinforced through various methods, ultimately shaping employee perceptions, behaviors and
understanding. Organizational culture is the collection of values, expectations, and practices
that guide and inform the actions of all team members. Organizational culture means that
corporate culture refers to the beliefs, attitudes, and values that the organization’s members
share and the behaviors consistent with them (which they give rise to). Corporate culture sets
one organization apart from another and dictates how members of other organization will see
you, interact with you, and sometimes judge you. Often, projects too have a specific culture,
work norms, and social conventions (Adrienne, 2014).

Once the corporate culture has been identified, members should try to adapt to the frequency,
formality, and type of communication customary in that culture. This adaptation will strongly
affect employee commitments productivity and satisfaction internally, as well as with the
client organization (Adrienne, 2014).
Various studies and literatures defined organizational culture traits in different dimension.
Robbins and Judge (2013) listed the seven primary characteristics of organizational culture.
These are innovation and risk taking, attention to detail, outcome orientation, people
orientation, team orientation, aggressiveness, and stability. Moreover, Dolan and Lingham
(2012) explain Charles Handy organizational culture concepts that classify organizational
cultures as power, role, task, and person culture. Similarly, Coffey, Trew and Trigunarsyah
(2012) described the four organizational cultures (Involvement, consistency, adaptability, and
mission) depicted on Denison organizational culture model. Commitment to work is defined
as the level of enthusiasm an employee has towards his/her tasks assigned at a workplace. It
is the feeling of responsibility that a person has towards the goals, mission, and vision of the
organization he/she is associated with.

Employee commitment has been defined as the strength of an individual's identification and
involvement in a particular organization. Hakim (2015) defines employee commitment as the
desire and the willingness of employees to remain in the organization and devote themselves to
the success of the organization. Robbins and Judge (2013) have explained that organizational
culture builds employee commitment. Besides, these authors noted that the more members accept
the core values, the greater their commitment and the greater its influence on their behavior.In
addition to (Asghar, Mojtaba & Sadeghi (2015); Hakim (2015); Azadi, Bagheri, Eslami &
Aroufzad (2013), found out the overall organizational culture and employee commitment have
positive and significant relationship.

Background of the organization

The introduction of telecommunications services in Ethiopia date back to 1894, seventeen

years after the invention of telephone technology in the world. Because of different reason its
name changed many times. Some of them are Imperial Board of Telecommunications of
Ethiopia (IBTE), Ethiopian Telecommunication Services (ETS), Ethiopian
Telecommunications Authority (ETA), and Ethiopian Telecommunications Corporation
(ETC). Then on regulation No 197/2010 Ethio-telecom established on November 29, 2010, as
Public Enterprise (Ethio-telecom Establishment council of Ministers Regulation, 2010).
The vision of the company is to be a world-class provider of telecom services and its
missions are Connect Ethiopia through state-of-the-art telecom services, Provide high quality,
innovative and affordable telecom products and services that enhance the development of our
nation, Build reputable brand known for its customers’ consideration, build its managerial
capability and manpower’ talent that enables Ethio Telecom to operate at international level
and Support community and environmental development. Thus, Ethio telecom is born from
this ambition to bring about a paradigm shift in the development of the telecom sector to
support the steady growth of our country.
Telecommunication is one of the best support services needed for rapid growth and
modernization of various sectors of the economy. Knowing of this fact, the Ethiopian
government has established a new telecom company known as Ethio Telecom, to replace the
long serving Ethiopian Telecommunications Corporation, with a view to enhancing the
development of the telecom sector and supporting the steady growth of the country.

The study will further engage to reveal the level of employee commitment that is prevalent
within this organization.

Due to the previous researcher’s suggestion this study is conducted with the objective of
identifying which organizational culture traits has significant effect on employee commitment
in Addis Ababa Ethio Telecom head office using both descriptive and correlation analysis
techniques. The purpose of this study is to examine the impact of organizational culture on
organizational commitment in different franchises based Ethio-Telecom Companies. This
finding will be useful to Ethio- telecom companies and their managers when attempting to
understand the influence of organizational culture on employee commitment.
 Statement of the problem
Inadequate level of employees’ organizational loyalty is one of the major observations from a
number of current studies on organizational commitment. This employee commitment is also
reflected in Productivity and innovation which are vital for the well-being of a company. As
stated by Devra Gartenstein and reviewed by Michelle Seidel, 11 March 2019, the human
aspect is among the factors that affect company efficiency. This human factor, in turn, is
affected by various factors among which organizational culture is a prominent one.
Culture is the organizational equivalent of a human personality, specifically; culture can have
an influence on employee commitment, employee morale, productivity and efficiency, the
quality of work, nature of the employee and the attitude of employees in the workplace.
Schein (2010) defines culture as beliefs, ideologies, feeling, attitude, expectation norms and
shared values. The values have a strong influence on the people in the organization and
prescribe how the employees dress, act, and perform their duties. Every organization
maintains a unique corporate culture, which provides a guideline and boundaries for the
behavior of the members (Hofstede, 2001).
The organizational culture must be developed which may provide support to an organization
and bring continuous improvement. Employee commitment is very important in an
organization goal success.
According to Fakhar, Rana and Ayesha (2012) proved that if employees are committed and
having the same norms and value as per their organizations, they can increase the
performance toward achieving the overall organization goals. Every society is an assortment
of organizations such as educational institutions, religious organizations, business
organizations, and so on. Ethio-telecom is a business organization that focuses on telecom
service deliveries. It is a merger of internal and external customers and stakeholders, solely
the government of Ethiopia. In this case, effective employee commitment among such crucial
entities is paramount for organizational success. Some researcher’s studies were conducted
the effect of organizational culture on employee commitment in the business and service-
oriented organization across the world.

Nongo and Ikyanyon (2012) proved that corporate culture is important in improving the level
of employee commitment to the organization but not all corporate cultural measures have
effect on employee commitment. Accordingly, these researchers conclude that, consistency &
Mission; two of the corporate culture traits on Dension Model, are not significantly correlated
with employee commitment.
Asghar, Mojtaba, and Sadeghi (2015); Ghader and Afkhami (2014); Azadi, Bagheri, Eslami
and Aroufzad (2013) research finding show that there is significant relationship between
organizational culture dimension and employee’s commitment. Asghar, Mojtaba, and
Sadeghi was correlation research design and used by the four Denison’s cultural model
dimensions means that Involvement, Consistency, Adaptability and Mission and used by
standard questioners. Therefore, the result of their finding all organizational culture
components are significantly correlated with employees’ commitment.

There are a few researchers in Ethiopia studied on the effect of organizational culture
dimensions. According to Mersen Bizuneh (2016) study on the effect of organizational
culture on employee’s commitment in case of Ethiopian airline. Therefore, the result of the
study shown that adaptability is the most contributing organizational culture traits in the
prediction of employee commitment. The other three organizational culture traits; mission,
involvement and consistency are ranked depending on their contribution (mission highest;
involvement moderate and consistency the least). Means that consistency is not significant
contribution on employees’ commitment.

Abraham Warga (2019) study on the effect of organizational culture on employee

commitment: in case of Commercial Bank of Ethiopia. The result shows involvement,
adaptability, mission have positive and significance effect on employee commitment but
consistency, insignificant contribution to employee commitment. Similarly, Meseret Getachew,
(2020) studies the effect of organizational culture on employee’s commitment by using
Denison culture model dimension in case of Ethiopian airline. The findings of this study,
results shows that organizational culture is important in improving the level of employees‟
commitment which is concluded by the statistically significant contribution of mission and
adaptability towards employees‟ commitment. However, consistency and involvement have
positive but statistically insignificant contribution towards employees‟ commitment.
In addition to Mahlet kefelegn (2020) studies the effect of organizational culture on employee
commitment in case of ethio telecom.

As shown the previous studies that the effect of organization culture on employee commitment
are very limited in Ethiopia. Few studies conducted on Ethio Telecom to investigate the effect of
organization culture on employee motivation, project management performance, and creativity.
However, I try to assess the previous studies of the effect of organizational culture on employee’s
commitment in case of ethio telecom only one researcher (Mahlet Kefelegn,2020) to apply in this
field of study and these studies have addressed on the regional level the specific area ethio
telecom Debere Birhan town. In addition to the total sample of the study inadequate because in
terms of the number of employees of the company the sample taken is not enough and when the
researchers to study this research corona virus (Covid 19) is the one impact of to collect adequate
data because lack of willingness in some respondents and management bodies during distributing
the questionnaire and carelessly filling, and in that time another constraint of this study is internet
access is very weak in case of this she is not refer furtherly . Therefore, it needs further
investigate the effect of organizational culture on employee’s commitment in case of ethio
Telecom Company. Theoretically discourses on employee commitment is the crucial factor
influencing the success of any organization. On the other hand, organizational culture is argued to
have a strong influence on employee commitment. Thus, examine the effect of organization
culture on employee commitment is believed to generate strong evidence that support the efforts
to improve employee commitment and company success. Thus, examining the effect of
organizational culture on employee commitment in Ethio Telecom Addis Ababa head office is a
strong contribution in the process.

Building strong organizational culture is not only important to enhance employee commitment,
but it is also important for the satisfaction of individual employees which in total contributes for
the welfare of the society. People’s (employees’) motive in the day-to-day activity is not only to
secure their livelihood it is also their interest to build a good relationship with their co-workers
and with the management.

The main objective of this study would be investigated the effect of organizational culture on
its commitment and answers the important questions that how an organization can sustain and
build strong culture and make relationship to employee commitment in case of ethio telecom
Addis Ababa head quarter.

Basic research questions

1. What is the relationship between organizational culture and employee commitment in
ethio telecom head office?
2. What is the effect of organizational culture dimensions (Involvement, Consistency,
Adaptability and Mission) on employees’ commitment?

3. What is the practice of organizational culture and the impact on employee ‘s

commitment?
4. What the factors that influence of organizational culture on employee commitment?
 5. Which type of selected organizational culture has significant effect on employee
commitment?

Objective of the study

General objective
The overall objective of this study has been investigating the effect of organizational culture
on employee’s commitment and relationship the case of ethio telecom in Addis Abeba head
office.

Specific objective
The specific objective of this study would be:

 To investigate the relationship between organizational culture and employee’s

commitment in ethio telecom Addis Ababa head office.
 To identify the effect of involvement, adaptability, mission, and consistency on
employee’s commitment in ethio telecom Addis Ababa head office.
 To investigate the practice of organizational culture and the impact on employee ‘s
commitment?
 The influence of organizational culture on employee’s commitment.
 To investigate the selected organizational culture dimension has significant effect on
employee’s commitment.

Significant of the study

This study might also help the company to enhance its organizational culture practice and adjust
its focus on most important organizational culture type that can improve employees” commitment
and it would be an importance in identifying the organization culture gaps and investigate the
relationship between Employee Commitment and Organization Culture traits. The managers of
the organization that perform their work effectively, making quality decision, and to find the
necessary organization culture traits to improve their employee commitment. The researcher’s
belief that identified the existing organizational culture in ethio telecom and its relationship with
employees‟ commitment may help the company in increasing the number of committed
employees.

In addition to this research findings, it might be important to similar organizations that operate in
the same industry to get a glance of information on organizational culture which is related to
employees‟ commitment and contribute to the existing literatures through identifying the
significance relationship between the selected organizational culture and employees‟
commitment.

Therefore, the main purpose of this study has been assessed the relationship between
organizational culture trait and employee’s commitment in ethio telecom head quarter.

Scope of the study

This study was focused on the effect of organizational culture on employee’s commitment
and its relationship in the Ethio-Telecom. This study would be estimated only the
commitment of staffs employed in Addis Ababa head office. In addition, this study would a
cross-sectional study in which data was collected at one point in time. As a methodological
scope, the study has been used only quantitative research design. The rationale behind using
quantitative approach is the nature of the research questions and the most appropriate method
to address the research questions. The researchers developed some of the important
organizational culture models are Deal and Kennedy Model; Charles Handy Concept Model;
Edgar Schein Model and Denison Model. This study focused only one organizational culture
model (Denison model). Means that it depends on the variable of Denison model
organizational culture trait namely: adaptability, involvement, consistency, and mission.
Today organizational culture is a broad and dynamic concept it’s difficult to investigate all
component of organizational culture with respect to employee’s commitment.

The researchers to develop different research methodologies for the purpose of data
collection, interpretation, and analysis. However, this study was used some selected methods
it depends on the field of study. The study has been used a quantitative research approach and
the nature of the study would be descriptive and explanatory in addition Stratified and simple
random probability sampling design has been used for this study.

Due to as Ethio telecom is a sole service provider company in Ethiopia there are a number of
branches in different regions and cities in the country. This research was only conducted on
Addis Ababa and one of the selected ethio telecom branch, post office or head quarter
geographical area coverage and the study will be limited to focus only on selected employees
(customer service division employees) who are working at ethio telecom head office.

This study has been focused only on ethio telecom Addis Ababa head office customer service
division billing and customer care and operational support department employees.
Organization of the study
The study has contained of five chapters. The first chapter involves the background of the
study, statement of the problems, basic research question, and objective of the study,
significance of the study, scope of the study or limitation of the study.

Chapter Two deals with the literature review. In this section, the concepts of organizational
culture and employees‟ commitment and their relationship were discussed in the theoretical,
empirical review of related literatures conceptual framework of the finding.

Chapter Three deals with the research design and methodology. This chapter presents ways of
information gathering, how questionnaires were constructed and how it was distributed for
the determined target sample employees and how the results were collected.

Chapter Four also discussed about presentation, analysis, and interpretation of the data.

Finally, chapter five involves summary of the findings, conclusion, and recommendations.

Definition of terms
Culture: means that the learned, shared method of doing things in a particular society.
Organizational culture - Refers to a system of shared meaning held by members that
distinguishes the organization from other organizations (Robbins and Judge, 2013).
Organizational culture means that underlying values, beliefs, and principles that serve as a
foundation for an organization's management system, as well as the set of management
practices and behaviors that both exemplify and reinforce those basic principles (Denison and
Neale,2011).
Involvement - A sense of responsibility of an employee towards his work (Denison, 1990).
Consistency- Shared system of beliefs, values, and symbols, widely understood by an
organization’s members, which has a positive impact on their ability to reach consensus and
carryout coordinated actions (Denison, 1990).
Mission - It expresses how the organization will investigate the future; it focuses activities by

entire element channels to achieve organizational goals (Denison, 1990).

Adaptability - A system of norms and beliefs that can support the capacity of an
organization
to receive, interpret and translate signals from its environment into internal behavioral
changes that increase its chances for survival, growth, and development (Denison, 1990).
Commitment – is an intention to persist in a course of action (Meyer and Allen, 2004).
Employee Commitment - is a psychological state that characterizes the employees’
relationship with the organization and has implication for the decision to continue
membership in the organization (Meyer and Allen, 1997).
Organization - is a social entity where two or more people are working together
cooperatively within identifiable boundaries to accomplish a common goal.
Organizational Commitment - Organizational commitment is a psychological state that
binds an employee to an organization, thereby reducing the incidence of turnover and the
constructs are Continuance, Normative and Affective organizational commitment (Allen and
Meyer, 1991).
 CHAPTER TWO: REVIEW OF RELATED LITERATURE

Theoretical related literature review

The main objective of this chapter is to discuss the major theoretical and empirical concepts that
helped form both organizational culture and employee commitment. The various published and
unpublished literatures had been studied and presented as substantiation for the study related
to organizational culture, employee commitment and their components on the effect of
organizational culture on employee commitment. The chapter will be present a conceptual
framework in the bright of the empirical literature reviewed to define and investigate the
relationship between the organization culture and the employee commitment. The researcher
under this section of the paper will elaborate about organizational culture, meaning,
typologies, models, and elements of organizational culture.

Meaning of Organizational Culture

Different scholars define organizational culture in a different ways and perspectives. In this
section of the paper the researcher presents some of the various definitions and the one
chosen for the purpose of the paper i.e., Stein’s definition of organizational culture. Schein
(2004) define culture as a pattern of shared tacit assumptions that was learned by a group as it
solved its problems of external adaptation and internal integration that has worked well
enough to be considered valid and therefore, to be taught to new members as the correct way
to perceive, think, and feel in relation to those problems. The implications of the above
definition by Schein (2004) includes that first, we understand culture is stable and not easy to
change once it’s developed since its manifested as composite knowledge –thinking, feeling,
and perceiving the environment which made up the organizations successful. Second, the
crucial component of culture is invisible and that is why usually members of an organization
can’t tell you what kind of culture exists in their organizations. Organizations also do culture
assessment research since it’s difficult to list down what type of culture exists through simple
observation. Third, we realize that there is no right or wrong culture by its own, it all depends
on the tacit assumptions of situation in which the culture is to be applied.

The culture is one of the widely studied phenomena in an organization. According to Robbins
& Judge (2013) was explained that the culture as a system of shared meaning held by
members that distinguishes from one organization to another organization.

The culture is a set of values and commonly held beliefs that determine the acceptable
behaviors and expected from a given group, countries, religion, ethnic groups, and
organizations, Dolan & Lingham (2012).
Organizational culture is a system of shared values, norms, attitudes, and assumptions that
can be influenced the people to act and get things done by its members. This organizational
culture distinguishes from one institution to another, Robbins & Judge, (2013). The
organizational culture has a positive attitude and behavior on employee’s commitment, and it
tends to develop commitments towards their organization, Asghar, Mojtaba & Sadeghi,
(2015).
Kaplan and Norton (2004) also viewed culture as the humanizing element of corporate
business, which helps to establish expectations between an employee and the organization the
employee works for, foster trust, facilitate communications, and build organizational
commitment.
According to Schein (2010), define organizational culture as “A pattern of shared basic
assumptions learned by a group as it solved its problem of external adaptation and internal
integration, which has worked well enough to be considered valid, and therefore to be taught
to new members as the correct way to perceive, think, and feel in relation to this problem”.
In different researchers use seven primary characteristics seem to capture the means of an
organization’s culture:
Innovation and risk taking: The degree to which employees are encouraged to be
innovative and take risks.
Attention to detail: The degree to which employees are expected to exhibit precision,
analysis, and attention to detail.
Outcome orientation: The degree to which management focuses on results or outcomes
rather than on the techniques and processes used to achieve them.
People orientation: The degree to which management decisions take into consideration the
effect of outcomes on people within the organization.
Team orientation: The degree to which work activities are organized around teams rather
than individuals.
Aggressiveness: The degree to which people are aggressive and competitive rather than
easygoing.
Stability: The degree to which organizational activities emphasize maintaining the status quo
in contrast to growth (Stephen, 2013).
In general, most authors agreed with the definition and concept of organizational culture as
the norms, values, beliefs, and underlying assumptions, that members share with the
organization. Not only this, but also organizational culture encompasses management
practices and behavior that encourage an organization’s basic principles, management system,
organization strategies, image, and services.

Types of organizational culture

There are four major types of organizational culture: market culture; hierarchy culture; clan
culture and adhocracy culture, Cameron, and Quinn (2006).
Market culture: The basic assumptions in a market culture are that the external environment
is not benign but hostile, consumers are choosy and interested in value, the organization is in
the business of in- creasing its competitive position, and the major task of management is to
drive the organization toward productivity, results, and profits.
Hierarchy culture: large organizations and government agencies are generally dominated by
a hierarchy culture, as evidenced by large numbers of standardized procedures, multiple
hierarchical levels.
Clan Culture: The characteristics of clan-type firms were teamwork, employee involvement
programs, and corporate commitment to employees. Some basic assumptions in a clan culture
are that the environment can best be managed through teamwork and employee development,
customers are best thought of as partners, the organization is in the business of developing a
humane work environment, and the major task of management is to empower employees and
facilitate their participation, commitment, and loyalty.
Adhocracy Culture: These assumptions were that innovative and pioneering initiatives are
what leads to success, that organizations are mainly in the business of developing new
products and services and preparing for the future, and that the major task of management is
to foster entrepreneurship, creativity, and activity on the cutting edge.
 2.1.2 The importance of organizational culture

Robbins and Judge (2013) asserted as that culture has a boundary-defining role: it creates
distinctions between one organization and others. It also conveys a sense of identity for
organization members. In addition, culture facilitates commitment to something larger than
individual self-interest.

According to Schein (1999), organizational culture becomes more important because maximizing
the value of employees as intellectual assets requires a culture that promotes their intellectual
participation and facilitates both individual and organizational learning, new knowledge creation
and application, and willingness to share knowledge with others.
Schien also suggests that organizational culture is even more important today than it was in the
past. Increased competition, globalization, mergers, acquisitions, alliances, and various workforce
developments have created a greater need for coordination and integration across organizational
units in order to improve efficiency, quality, and speed of designing, manufacturing, and
delivering products and services product innovations.

According to Wagner and Hollenbeck (2010) identify four basic functions of culture.

 It gives members an organizational identity – means that organizational members

share norms, values, and perception provide them with the sense of togetherness that
promotes a feeling of common purpose.
 It facilitates collective commitment
 It promotes organizational stability
 It shapes behavior by helping members make sense of their surroundings.
The Kondalkar, (2007), exposed about the organizational culture and its benefits for
employees in the organization. The organizational culture offered an institutional identity to
the members like sharing norms, values and good perceptions, a sense of togetherness,
integration and cooperation, shapes behavior, facilitates a collective and strong commitment.

2.1.2 Models of organizational culture

Several scholars have been developed different models till to this time express the
organization culture and some researchers describe different indicators and dimensions of
organizational cultures. The prominent scholars exploring organizations culture are as follow:
Edgar Schein Model, Deal and Kennedy Model and Charles Handy Model and Denison
model organization culture. Common to all models of culture and the linkages to
organizational success assert that values of employees need to be aligned with vision and
mission of the company.

Edgar Schein Model: Dolan and Lingham (2012) tried to summarize Edgar Schein Model as
it is described by three cognitive levels of organizational culture.

The first and most cursory level of Schein's model is organizational attributes that can be
seen, felt, and heard by the uninitiated observer.

The next level deals with the perceived culture of an organization's members. At this level,
company slogans, mission statements and other operational belief are often expressed, and
local and personal values are widely expressed within the organization.

The third and deepest level depicts the organization's tacit assumptions.

Deal and Kennedy Model: according to Dolan and Lingham (2012) suggest that Deal and
Kennedy Model is measured organization in terms of feedback or instant response. There are
four type of organizational culture which are Tough-Guy Macho Culture, Work Hard Culture,
bet your Company Culture & Process Culture were developed.

Charles Handy Model: according to Dolan and Lingham (2012) discussed that Charles
Handy Model is the base of Organizational structure and to classify organizational culture in
to four: Power Culture, Role Culture, Task Culture and Person Culture.

Denison model this model is different from the above three models because the above three
models indicate organizational culture dimensions from psychological or personality
perspective and mainly the first is designed and created within the academic environment
which uses non-business language. Denison’s organizational culture model to identify the
behaviorally designed and created within the business environment.

2.1.2 Denison organization cultural trait dimension

According to Denison and Neale (2011) identifies four cultural dimensions: involvement,
consistency, adaptability, and mission. These underlying dimensions were expressed in terms
of a set of managerial practices and measured using the twelve indices that make up the
model.

For this organizational culture traits (involvement, consistency, adaptability, and mission) are
integrated with its organizational performance and effectiveness that achieve their setting
objective in the organization.
Involvement

Involvement is the first organizational culture trait. It ensures the active participation of
employees in decision-making, team effort and the development of their necessary skills.
Organizational cultures characterized as highly involved strongly encourage employee
involvement and create a sense of ownership and responsibility. They rely on informal,
voluntary, and implied control systems, rather than formal, explicit, bureaucratic control
systems. Fey & Denison, (2006), stated that involvement represents the most significant
dimension of organizational culture for organizations whose primary goal is workers
satisfaction. There are three indices used to measure the involvement trait, they are
Empowerment: Team Orientation and Capability Development.

Consistency

According to Denison (2000), consistency is another organizational culture trait dimension,

and it is a fundamental source for integration, coordination, and control. Consistent
organizations develop a mindset and a set of organizational systems that create an internal
system of governance based on consensual support. Consistency creates a strong culture
based on a shared system of beliefs, values and symbols that are widely understood by
members of an organization. There are three significant indicators consisting in this trait they
represent core values, agreement, and coordination and integration used to measure the
consistency.

Adaptability:

Adaptability is the third organizational culture trait, and it typically represents the ability of
an organization in translating the environment into affirmative action through creating
change, customer focus and organizational learning. Adaptability impacts an organization's
effectiveness by three aspects: The ability to perceive and respond to the external
environment. Successful organizations are very focused on their customers and their
competitors; The ability to respond to internal customers, regardless of level, department, or
function and the last is the capacity to restructure and re-institutionalize a set of behaviors
and processes that allow the organization to adapt. Without this ability to implement adaptive
response, an organization cannot be effective.

Mission
According to Denison et al, (2006), statement, the mission represents the final trait, and it
involves in defining a meaningful long-term direction for the organization. A mission
provides the purpose and meaning by defining a social role and external goals of the
organization. It provides an explicit direction and goals to serve in an appropriate course of
action for the organization and its members and shape current behavior by envisioning a
desired future state.

The concept of employee commitment

Commitment is the bond employees experience with their organization. Broadly speaking,
employees who are committed to their organization generally feel a connection with their
organization, feel that they fit in and, feel they understand the goals of the organization.

During the 1990s, commitment continued to be a major focus of researchers. It is a

psychological state that characterizes the employee’s relationship with the organization. This
has implications in terms of continuing his or her membership in the organization. A
committed employee is one who stays with the organization under any favorable or
unfavorable circumstances affecting the organization (Meyer and Allen, 1997).

According to Herscovitch and Meyer (2002) Employee’s commitment can also be deemed as
the degree to which an employee identifies with the goals and values of the organization and
is willing to put in efforts to help the organization to achieve these goals.

In addition to Meyer and Allen (1997), suggest that a committed employee is the one who
stays with the organization through thick and thin, attends work regularly, puts in a full day;
protects company’s assets, shares company goals and others. Thus, having a committed
workforce would be an added advantage to an organization. Moreover, they said that
commitment is a psychological state that characterizes the employee’s relationship with the
organization and has implication for the decision to continue membership in the organization.

Allen and Meyer (1990) also proposed a three-component model of commitment, which
integrated Affective Commitment, Continuance Commitment and Normative Commitment.
Affective Commitment

refers to employee’s emotional attachment to, identification with, and involvement in the
organization. This attachment could be one’s role in relation to the organizational goals and
values, or to the organization for its own sake.
Continuance commitment

It is mentioned to commitment based on the costs the employees associate with leaving the
organization. As such, in this type of commitment, the fewer viable alternatives employees
have, the stronger will be their continuance commitment to their current employer.

Normative commitment

It indicates to employees’ feelings of obligation to remain with the organization. This type of
commitment will be influenced by an individual’s experience both prior to cultural
socialization and following organizational socialization entry into the organization.

Empirical Related Literature Review

Several studies have been conducted with respect to organizational culture. Organizational
culture refers to a device of shared assumptions, values, and beliefs that show human beings
what's suitable and beside the point behavior. Those values have a robust influence on
employee ‘s behavior in addition to organizational overall performance. The productiveness
and culture of enterprise allows in enhancing performance (pages: 179-181) MOHAMMED,
JamilIdris Faculty of Administration Department of Business Administration Ahmadu Bello
University Zaria, as cited by DANIELONYANGO OMONDI (page 26) NigeriaXenikou and
Simosi, (2006)says that organizational norms that encourage cooperation, teamwork, and
participation are related to overall performance because they facilitate organization
coordination and synergy of divergent organizational sources. He adds that moreover, self-
actualization and employee development are the basis of creating a large pool of
organizational resources that reflect the human capital within organizations and lead to
organizational efficiency.

An organization ‘s culture may be one of its strongest assets or its biggest liability. In fact, it
has been argued that an organization that has a rare and hard-to-imitate culture enjoys a
competitive advantage. As Boris Groysberg, Jeremiah Lee, Jese Price, andJ.Yo-jud Cheng
stated, strategy and culture are among the primary at top leader’s disposal levers in them by
no means-ending quest to keep organizational viability and effectiveness.

The Effect of Organizational Culture on Employee’s Commitment

This study would be shown the research finding of several researchers tried to identify the
effect of organizational culture (Involvement, consistency, adaptability, and mission) on
employee’s commitment.
 Involvement and employee commitment
According to Asghar, Mojtaba and Sadeghi (2015) Involvement is one of the most important
dimensions of organizational culture and it has great role in fulfillment of employee commitment
of teachers. This shows that people participation in work helps their intention to stay in
workspace. The employees‟ Involvement means using them in decision making and this leads to
the stability of their commitment.

Mersen B. (2016) finding shows that involvement has moderate level of correlation with
employee commitment, which means that employees are committed to their organizations when
they are involved in decision making and sense of ownership result a greater commitment to the
organization. Teamwork, investment to develop the skills of employees, room to receive inputs
from organizational members enhances both implementation process and employee commitment.

Involvement and commitment have a significant and positive relationship. This means that
employees are committed to their organizations when they are involved in decision making. The
key success factors for organizations today are employee empowerment, teamwork, and
employee development. These enable managers and employees more committed to work and feel
that they own a piece of the organization. People at all levels feel that they have at least some
inputs into decisions that will affect their work and that their work is directly connected to the
goals of the organization (Nongo and Ikyanyon, 2012).

Abreham W. (2019) study concludes that Involvement Culture traits had positive influence
employee’s commitment and employees are committed to their work and feel that they own a
piece of the organization. Meseret G, (2020) the research finding shows that involvement have
positive but statistically insignificant influential relationship (contribution) to employees‟
commitment.
Mahlet K. (2020) studies result indicates that involvement had positive and statistically
significant contribution towards employee’s commitment. This also implies that, the
availability of information to employees, the participation of employees on decision making
and continual investments on skill development have significant contribution towards
employees’’ commitment.

Consistency and employee commitment

According to (Mersen B.2016). Consistency doesn’t have significant effect on employee
commitment. Hence, as much as organizations try to maintain a strong culture by being highly
consistent, well-coordinated, and well-integrated; this does not have significant contribution to
the level of employee commitment.
To the contrasting, research finding by Asghar, Mojtaba and Sadeghi (2015), Ghader and
Afkhami (2014) revealed that there is positive relationship between consistency and employee
commitment in which coordination and integration, agreement, and fundamental values as a
component of consistency increase employee commitment to provide efficient and effective
work. Similar, Hakim (2015) asserted that an indicator of the most powerful in shaping the
organizational culture variable is stability (consistency). It means that, cultural values that
received the most attention in the activities of the organization, which emphasizes the
maintenance of the status quo as a contrast to the growth will have positive effect on employee
commitment.
Abreham W. (2019) the studies result indicates that consistency Culture construct is remained
marginally insignificant in predicting employees‟ commitment.it implies that employees not
being entirely accustomed with how corporate culture facilitates consistency of work and
approach in line with the organizational core values.
Mahlet K. (2020) the finding results shows that consistency culture is negative and statistically
not significant on employees’ commitment. This indicates organizations try to maintain a strong
culture by being highly well-coordinated, well integrated, and consistent set of values, a clear
agreement regarding the right way and the wrong way to do things; this does not have significant
effect to improve the level of employee commitment.
Adaptability and employee commitment
Adaptability predicts employee commitment more than any other corporate cultural variables.
Employees are more committed to organizations that adapt to changing circumstances.
Companies should encourage innovation and teamwork among employees. This will enable
employees adapt in an environment of change, thereby improving their level of commitment.
(Nongo & Ikyanyon, 2012).

Abreham W. (2019) his finding result shows that Adaptability culture trait can also enable the
organization take risks and learn from their mistakes, and have capability and experience at
creating change, when customer focus is higher than creating change and organizational learning.
It indicates that risk monitoring; creating change and customer focus has a positive impact on
employees’ commitment.
In addition to (Ghader & Afkhami (2014), 2014; Coffey, V. Trew, A. and Trigunarsyah, 27;
Denison, R.D.and Neale, S.W., 2011; Azadi, Bagheri, Eslami and Aroufzad (2013) employees
exhibited the highest employee commitment when they perceived higher learning culture
(adaptability traits) which includes culture of creating, acquiring, and transferring knowledge
and quickly react to current trends, and anticipate future changes.
Mahlet K, (2020) the finding result indicates that Adaptability culture is positive and strong
correlation with employee commitment. The regression results also showed that, the most
contributing organizational culture traits, more effectible culture, and the first highest
predictor of employee commitment has been well established in Ethio Telecom. Hence,
employees are less committed to organizations that adapt to changing circumstances.

Mission and employee commitment

According to Mersen B. (2016) to internalize and identify with an organizational mission
contributes to both short- and long-term commitment of employees to the organization.
Similarly, (Saadat, Marjani& Momeni(2012), (Ghorbanhosseini 2013) and (Nikpour A.
2017). found of that mission and employees” commitments significantly relationship.

Mission provides purpose and meaning by defining a social role and external goals for the
organization and, mission provides clear direction and goals that serves to define an
appropriate course of action for the origination and its members which result the increase in
level of employee commitment to the organization (Denison and Neale, 2011).

To the other side, Nongo and Ikyanyon (2012) found no significant relationship between
mission and commitment. This means that employees‟ identification with the purpose,
mission, and goals of the organization does not bring commitment to the organization. But
companies should define the mission of their organization clearly and always communicate
same to employees.

Abreham W. (2019) the finding results shows that mission culture trait had a positive impact
employee‟ commitment. This concluded that when an organization underlying mission
changes, changes also occur in other aspects of the organizations culture.
In addition to Mahlet K. (2020) the finding results shows that organizational mission culture
significantly contributes commitment of employees to the organization. Mission is another
highest predictor of employee commitment in which employees’’ identify the long-term
purpose and direction, mission, strategy, and goals of the organization elicit commitment to
the organization.

Conceptual framework
The conceptual framework shows the role of organizational culture in mediating the effect of
transformational leadership and organizational communication media on motivation,
organizational commitment, job satisfaction, engagement, job involvement, innovation, and
performance.
The conceptual framework of this study has been focused on the effect of organizational culture
on employee commitment by used Denison model dimensions (adaptability, consistency, mission,
and involvement. Denison model of organizational culture is a base to select the four cultural
dimensions emphasized under this study and has been aligned to see the influential relationship of
the four cultural dimensions with employee commitment. Therefore, the aligned conceptual
framework is shown as below:

Organizational culture

(Independent variable) Dependent variable

Adaptability

Involvement
Employee
Commitment
Consistency

Mission

Figure1: conceptual framework

CHAPTER THREE: METHODOLOGY OF THE STUDY

Method refers to the techniques and procedures used to find and analyze research data it is
including questionnaires, observations, interviews, statistical and non-statistical techniques
(Saunders, Lewis, and Thornhill, 2009). This chapter covers and discussed by research design
and approach, population of the study and sampling techniques, data source, data collection
and data analysis method, validity and reliability test and ethical considerations.
 Research design
Research design is the plan for fulfilling research objectives and answering questions. For the
purpose of study, the researcher was used the explanatory and descriptive research design
because explanatory research design highlights on studying a problem to explain the
relationship between dependent and independent variables. The descriptive research designs
studies are concerned with describing the characteristics of a particular individual, or a group.
for this study was used the descriptive and explanatory research design because the objective
of the study examining the effect of organizational culture on employee’s commitment and
their relationship in ethio telecom.
Research approach
In order to achieve the study objective and determine the problem the researchers used
quantitative research design by examining the relationship among the variables. So that
numbered data was analyzed using quantitative data analysis. Therefore, the demographic
information of the study sample was analyzed using descriptive statistics such as frequencies,
percentage, means and standard deviation. On the other way, data collected on the study
variables which were rated based on a 5-point Likert scale was analyzed using inferential
statistics.
For this research was used quantitative research approach because the study to investigate the
effect of organizational culture on employee’s commitment and to explore, present, describe
and examine relationships and trends within data and as it also helps to collect results in
numerical and standardized data.

Population and sampling design

population is defined as a total group of individuals or units that are of interest to the
researcher and individuals at which the outcomes of the study can be generalized. Bell and
Waters (2014), Population is the total collection of individuals to be studied and from which
sample is drawn (Sekaran, 2016).
Target population of the study
Ethio telecom is a monopoly service provider company in Ethiopia therefore the total
employees of the company are permanent employee #### and temporary employees ####
however to cover these total employees of the company is very difficult to collect data. but
also, this study target population limited the total employees of ethio telecom in Addis Ababa
head office customer service division billing and customer care and Operational support
department employees(N=402).
Under these departments there are 9 different sections. Billing and customer care department
have 6 sections namely: customer profile management; corporate bill management; activation
and provision; bill quality and compliant management; retention and loyalty; billing and
credit control. In the other under operational support department have 3 sections as follows:
Quality assurance and monitoring; Technical support and Training section.

Table 3.1 Total population of under customer service division in ethio telecom head
office

NO Department/section name Total employees of each

section
Billing and customer care department
1 Customer profile management section 109
2 Corporate bill management section 51
3 Activation and provision section 45
4 Bill quality and compliant management section 33
5 Retention and loyalty section 59
6 Bill credit control section 37
Operational support department
7 Quality assurance and monitoring section 30
8 Technical support section 20
9 Training section 18
Total employees 402
Source: (human resource division 2020)

Sample size determination

Sample size determination is the act of choosing the number of observations or replicates to
include in a statistical sample. The sample size is an important feature of any empirical study
in which the goal is to make inferences about a population from a sample. Sample size is the
number of elements selected from a given population (Denscombe, 2014).
The objective of sampling is to obtain an optimum sample from the whole population such
that the sample is representative of the target population.

For this study the sample size of the population centered on Ethio telecom Addis Abeba head
office customer service division billing and customer care department and operation support
department employees and there are a total population (N=402) of employees. Accordingly,
the researcher used confidence interval of 95%, which is the level of certainty whether the
response for each question is the right answer or wrong. 5% margin of error which is the
amount of error from difference in the responses the researcher can tolerate when drawing a
conclusion from the data. Mersen. B(2016). Hence, 200 is accepted as a representative
sample size of the target population. To take the sample from the population used by the
sample size determination formula of Yamane, (1967), which is cited by (Belay Tefera et al.,
2015).

N
n=
1+N ¿ ¿

n = Desired sample size

N = Size of the total population: 402

1 = is constant

e = margin of error. It is usually accepted at 5% or 0.05 Or 95 % confidence limit.

Therefore, the numbers of the sample size of the study are 200 employees.

Table 3.2 sample size determination as per each department/section of

ethio telecom

Total Rate of Sample

N Department/section name employees of proportion size per
O
each section section
Billing and customer care department
1 Customer profile management section 109 54
2 Corporate bill management section 51 31
3 Activation and provision section 45 23
4 Bill quality & compliant management 33 16
section
5 Retention and loyalty section 59 29
6 Bill credit control section 37 15
Operational support department
7 Quality assurance and monitoring section 30 18
8 Technical support section 20 9
9 Training section 18 7
Total employees 402 200

Sampling techniques
Sampling techniques is a vital role of any research. In order to achieve the objective of the
study it was used stratified and simple random probability sampling technique. Stratified
sampling would be considered to ensure the sample includes representative study units from
each stratum. Therefore, stratified sampling is used to distribute the survey questionnaires to
acquire employee insight towards Addis Ababa Ethio Telecom organizational culture and
their employee commitment. After stratified the sample, simple random sampling technique
was used to select the sample respondents. The sample population as this technique allows
sample research respondents to be selected based on equal chance.

Data type and source of data

For this study was used to both data types (primary and secondary) data to obtain clear and
accurate information on the topic being clarified. Therefore, these data types would be
implemented to get the maximum result.

Primary data

Primary data information gathered or generated by the researcher for the purpose of study
immediately at hand. In the case of this study primary data was collected by questionnaires
from Addis Ababa ethio telecom head office customer service division billing and customer
care and operational support department employees.

Secondary data
For this study secondary data are available in the form of either published or unpublished
sources such as journals, articles, internet browsers, bulletins, manuscripts, diaries, letters and
ethio telecom annual reports.
Method of Data Collection

In this study the researcher would be collect data form both primary and secondary data
sources. Secondary data was collected and used from archival records, organizations
information. Primary data has been collected through structured questionnaires. The
secondary data gathered through referring different textbooks, internet and published and
unpublished data of the corporation; related with the subject matter.

Whereas a lot of necessary data would collect through structured interview conducted with
customer service division billing and customer care and operational support department
employees. This research questionnaire designed in the form of five-point Likert Scale. For
this study used both open and close ended questionnaire, to collect primary data.

When the researchers were collected primary data from the ethio telecom employees first
informed to the respondents that, the utilization of the data is confidential, and it is used only
for academic purpose. After that the questionnaire was distributed to all respondents by the
researcher himself and was given one week to fill the entire questionnaire. The researcher has
given her personal contact address to support respondents for any difficulty when they fill the
questionnaire. After a week the researcher collected and checked its completeness
immediately and a few respondents does not fill for a given days. However, the researcher
contacted again to respondents that fall to fill properly. The secondary data gathered from
secondary sources through reviewing both published and unpublished documents such as
journal articles, reports, and other publication.

Method of data analysis

Data analyzed were summarized and evaluated using descriptive and different inferential
statistics using Statistical Package for the Social Sciences (SPSS). Data analysis was used by
both descriptive and statistical regression. Descriptive statistics like these frequencies,
percentages, means, and standard deviations were used to summarize and present the data.
Additionally, tables were used to increase understanding and facilitate easy comparison of the
data collected from the survey and it was used for describing the respondents’ demographic
characteristics in terms of frequency and percentage.
In the other hand inferential statistics, Pearson correlation coefficient used to examine the
relationship between organizational culture and employee commitment. Furthermore,
multiple regression analysis was conducted in the present study to examine the effect of each
organizational culture traits (independent variable) on the employee commitment (dependent
variable) Therefore, multiple regression analysis is used to understand how one or more
predictor variables effect the dependent variable. Specifically, this analysis enables to
understand the extent that the independent variables affect the prediction of the dependent
variable.

The data collected from part two and three of the questionnaire, which was rated based on a
5- point Likert scale were analyzed using Inferential statistics means that Pearson correlation
and regression analysis. The researcher used Pearson Correlation to identify relationship that
exist between organizational culture and employee commitment. After analyzing and
interpreted the data the major findings were summarized based on their significance findings
and which would

be followed by the forwarding of appropriate recommendation and suggestions for all the
concerned parties.

Validity

Validity anxieties with the degree to which a question measure. To assure the validity of the
questionnaire used to collect data on both the dependent variable and the independent
variables an intensive literature review is conducted, and original sources have been
consulted to frame the research instrument. In addition to the validity of the study, the
researcher took the comment from the advisor and discussed with ethio telecom employees
and management about the questionnaires before it was distributed. The questionnaire
prepared includes standard questions for the main variables; study questions on
organizational culture by Denison‟s Cultural Model (Denison and Neale 2011) and questions
on employees‟ commitment by Allen and Meyer (1990). The questionnaire was evaluated by
examining feasibility during questionnaire pre-testing. Feasibility of the questions was
evaluated by examining study participant acceptability, and the time & ease of
administration.

Reliability
Reliability was also checked for the survey instrument. Reliability analysis used to measure
the internal consistency of a questionnaire. There are different methods of reliability test and
for the purpose of this study Cronbach‟s alpha is believed to be suitable. Cronbach‟s alpha is
the most common measure of internal consistency or reliability. According to George &
Mallery (2003), the value of Cronbach‟s alpha coefficient should be more than 0.7 which is
an acceptable level of internal consistency or reliability.

Responses to the questionnaire were measured using 5- point Likert scale. part III of the
questionnaire which was about employees‟ commitment. The alpha coefficients for the study
dimensions and the overall scale calculated as a reliability indicator was shown in the
following table.

no indicators Number of attributes Cronbach’s alpha

1 involvement 9
2 adaptability 9
3 consistency 9
4 mission 9
5 Employee commitment 11
Source: SPSS reliability (2020)

Ethical consideration

The researcher conducts this study was considered ethically because it is one of the main
issues for every research. So ethical consideration before collection of data to understand the
respondent’s willingness without forced and harmfully to answer the given questionnaire,
clearly explain the purpose of the study, there would be not express their personal
information in the answers of questionnaire, keep the time when the respondent’s interest,
keep

confidentially for any things and the researcher would be appreciated and thanks their
collaboration of the respondents.
 CHAPTER FOUR
ANALYSIS OF RESULT
The major objective of this chapter is to analyze and interpret the data collected from the
respondent using questionnaire; the data obtained from the questionnaire was analyzed by using
statistical package for social sciences (SPSS) version 24.
The data has been processed and analyze in according with the outline and down for the purpose
at the time of developing the research plan. Technically editing, coding, classification, and
tabulation of collected data so that they are amenable to analysis.
The analysis is based on the information obtained from 200 employees. In order to get the
representative data, 200 questionnaires were developed and distributed to employees of Ethio
telecom head office found in Addis Ababa. Out of these 200 questionnaires distributed to the
respondents 182 were collected. In cause of respondent different reasons like annual leave, sick
leave and so on the rest of (18) not collected. In addition to out of 182 collected data (6)
respondents are not correctly filled or not finished. Therefore, the analysis is based on the valid
176 questionnaires responded by employees. The following table show the response rate.

Table 4.1 the response rate of respondents

Item Total Sampling Employees

 Not completely/
Correctly filled and returned correctly filled and Not returned
returned
Number  176  6  18
Percentag
e