FACULTY OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

THE EFFECT OF ORGANIZATIONAL CULTURE ON EMPLOYEES JOB PERFORMANCE

AMONG COMMERCIAL BANKS (INCASE OF WOLDIA CITY)

By:

Tesfa Worku Ambaw

ID NO GSE14022

Advisor:

Belay Mengstie (PhD)

May, 2024

Woldia, Ethiopia
THE IMPACT OF ORGANIZATIONAL CULTURE ON EMPLOYEES JOB PERFORMANCE
AMONG COMMERCIAL BANKS (INCASE OF WOLDIA CITY)

By

Tesfa Worku

ID NO GSE14022

Advisor: Belay Mengstie (PhD)

A THESIS SUBMITTED TO DEPARTMENT OF MANAGEMENT FOR THE PARTIAL FULFILLMENT OF

THE REQUIREMENTS FOR THE AWARD OF MASTERS DEGREE IN BUSINESS ADMINSTRATION
(MBA)

May, 2024

Woldia, Ethiopi
 CERTIFICATE

This is to certify that the thesis entitled “The Effect of Organizational Culture on Employees Job Performance
among Commercial Banks (In case of Woldia city The case of woldia University undertaken by Tesfa…. for the
partial fulfillment of Master of Business Administration in Woldia University, Now, it is submitted with approval
as a thesis.

Name of Advisor………………………………

Date …………………………………………...

i
 APPROVAL

This is to certify that the thesis prepared by Tesfa, entitled “The Effect of Organizational Culture on Employees
Job Performance (In case of Woldia city)”. And submitted for partial fulfillment of the requirements for the
degree of Masters of Business Administration complied with the regulation of University and meet the accepted
standard.

Signed by Examining committee

1. Advisor _________________________ Signature______________ Date____________

2. Internal Examiner __________________Signature______________ Date____________

3. External Examiner __________________ Signature _____________ Date ____________

ii
 DECLARATION

I, Tesfa, hereby declare that this thesis, entitled “The Effect of Organizational Culture on Employees Job
Performance among Commercial Banks (In case of Woldia city)”. Submitted to the Department of Management,
Faculty of Business and Economics, Woldia University, in partial fulfillment of the requirements for the award of
the Degree of MASTER OF BUSINESS ADMINISTRATION (MBA), is a record of original research work done
by me in 2016E.C, under the supervision and guidance of Belay Mengstie (PhD). It has not formed the basis for
the award of any Degree / Diploma or other similar title of any candidate of any university. I have produced it
independently except for the guidance and suggestion of my research advisor.

Tesfa

Signature_________

Date____________

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 ACKNOWLEDGEMENT

First and foremost I would like to thank the almighty God for his protection and endless blessing for my success.
Secondly, my gratitude goes to my advisor Mr. Belay Mengstie (PhD), who assisted, and advised me in writing
this paper through his valuable, tireless suggestion, supplementing basic skills, constructive comments, and
guidance.

Thirdly, I want to express my heart full thanks to all of my respondents for their appropriate answers and
willingness to participate to fill the questionnaires, and I would like to extend heartfelt thanks to my friends
Gashaw Abebe who showed much devotion to the success of my thesis especially in translating, distributing and
collecting the questionnaire and for all the positive comments, supports and cooperation you gave me while doing
this research. May God bless you!

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 TABLE OF CONTENTS

CONTENTS PAGES
..................................................................................................................................................................................................... 1
CERTIFICATE ............................................................................................................................................................................ i
APPROVAL................................................................................................................................................................................ ii
DECLARATION ....................................................................................................................................................................... iii
ACKNOWLEDGEMENT ......................................................................................................................................................... iv
TABLE OF CONTENTS ............................................................................................................................................................ v
LIST OF TABLES ................................................................................................................................................................... viii
LIST OF FIGURES ................................................................................................................................................................... ix
LIST OF ABBRIVATIONS AND ACRONYMS ...................................................................................................................... x
ABSTRACT ................................................................................................................................................................................. xi
CHAPTER ONE: INTRODUCTION ........................................................................................................................................ 1
1.1. Background of the Study.......................................................................................................... 1

1.2. Statement of the Problem ......................................................................................................... 2

1.3. Research Questions ....................................................................................................................... 4

1.4. Objective of the Study................................................................................................................... 4

1.4.1. General Objective...................................................................................................................................................... 4

1.4.2. Specific objectives .................................................................................................................................................... 4
1.5. Hypothesis Testing ........................................................................................................................ 4

1.6. Significance of the Study .............................................................................................................. 4

1.7. Scope of the Study ........................................................................................................................ 5

1.8. Organization of the Study ............................................................................................................. 5

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CHAPTER TWO ........................................................................................................................................................................ 6
REVIEW OF RELATED LITRATURE ..................................................................................................................................... 6
2.1. Theoretical Literature .................................................................................................................... 6

2.1.1. Model of organizational culture .......................................................................................................................... 8

2.1.1.1. Deal and Kennedy model .................................................................................................................................... 8
2.1.1.2 Charles handy concept......................................................................................................................................... 8
2.2. Function of Organizational Culture .......................................................................................... 9

2.3. Empirical Review on Organization Culture and Employee Commitment................................... 10

2.3.1. Organization culture of salary and employee job performance ............................................................................... 11

H1: Salary has a significant effect on employee job performance..................................................................................... 13
2.3.2. Work life balance and employee job performance .................................................................................................. 13
2.3.3. Mission and employee performance ....................................................................................................................... 14
2.3.4. Communication and Employee Innovativeness ...................................................................................................... 15
2.4. Employee Job Performance......................................................................................................... 17

2.6. Conceptual Framework of the Study........................................................................................... 19

CHAPTER THREE................................................................................................................................................................... 20
RESEARCH METHODOLOGY .............................................................................................................................................. 20
3.1. Introduction ................................................................................................................................. 20

3.2. Research Approach ..................................................................................................................... 20

3.3. Research Design .......................................................................................................................... 20

3.4. Target Population ........................................................................................................................ 20

3.5. Sample and Sampling Technique ................................................................................................ 21

3.6. Source of Data and Method of Data Collection .......................................................................... 23

3.7. Data Collection Instrument ......................................................................................................... 23

3.8. Variables Description .................................................................................................................. 24

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 3.8. Validity and Reliability ............................................................................................................... 24

3.8.1. Validity.................................................................................................................................................................... 24
3.8.2. Reliability ................................................................................................................................................................ 25
3.9. Data Analysis and Model Specification ...................................................................................... 25

3.10. Ethical consideration ................................................................................................................. 26

CHAPTER FOUR ..................................................................................................................................................................... 27

RESULT AND DISCUSSION ................................................................................................................................................. 27
4.1. Introduction ................................................................................................................................. 27

4.2. Response Rate ............................................................................................................................. 27

4.2.1. Demographic Characteristics of the Respondents ................................................................................................... 27

4.3. Reliability Test ............................................................................................................................ 28

4.4. The Mean of Dependent and Independent Variables .................................................................. 29

4.4.1. Employee job performance ..................................................................................................................................... 29

4.4.2. Work life balance factors ........................................................................................................................................ 30
4.4.3. Salary related factor ................................................................................................................................................ 31
4.4.4. Communication factor ............................................................................................................................................. 32
4.4.5. Mission factors ........................................................................................................................................................ 32
4.4.6. Job characteristics ................................................................................................................................................... 33
4.5. Inferential statistics analyzing factors that affect employee job performance ............................ 34

4.5.1. Diagnostics Test /Assumption/ ............................................................................................................................... 34

4.5.2. Linearity test............................................................................................................................................................ 34
4.5.3. Normality test .......................................................................................................................................................... 35
4.5.4. Multicollinearity Test .............................................................................................................................................. 36
4.5.5. Homoscedasticity Test ............................................................................................................................................ 37
4.5.6. Independent Test ..................................................................................................................................................... 38
4.6. Correlation Analysis ................................................................................................................... 38

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 4.7. Multiple Regression Model ......................................................................................................... 41

4.7.2. ANOVA .................................................................................................................................................................. 42

4.7.3. Model Coefficient ................................................................................................................................................... 42
4.8. Discussion and Hypothesis Testing ............................................................................................ 44

CHAPTER FIVE: MAJOR FINDING, CONCLUSION AND RECOMMONDATION......................................................... 47

5.1. Finding of the Study .................................................................................................................... 47

5.2. Conclusions ................................................................................................................................. 48

5.3. Recommendations ....................................................................................................................... 49

5.4. Future Direction of the Research ................................................................................................ 50

5.5. Limitation of the Study ............................................................................................................... 50

REFERENCES.......................................................................................................................................................................... 51
APPENDIXIES I: QUESTIONARRIES .................................................................................................................................. 55

LIST OF TABLES
TABLE 1: PROPORTIONATE SAMPLE DISTRIBUTION FOR EACH EMPLOYEES OF BANKS ............................................... 21

TABLE 2: DEMOGRAPHIC CHARACTERISTICS OF RESPONDENTS .................................................................................. 27

TABLE 3: RELIABILITY TEST ...................................................................................................................................... 28

TABLE 4: DESCRIPTIVE STATISTICS ANALYZING EMPLOYEE JOB PERFORMANCE........................................................ 29

TABLE 5: DESCRIPTIVE STATISTICS ANALYZING WORK LIFE BALANCE FACTORS ON EMPLOYEE JOB PERFORMANCE . 30

TABLE 6: DESCRIPTIVE STATISTICS ANALYZING SALARY FACTORS ON EMPLOYEE JOB PERFORMANCE...................... 31

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TABLE 7: DESCRIPTIVE STATISTICS ANALYZING COMMUNICATION FACTORS ON EMPLOYEE JOB PERFORMANCE ....... 32

TABLE 8: DESCRIPTIVE STATISTICS ANALYZING MISSION FACTORS ON EMPLOYEE JOB PERFORMANCE ..................... 32

TABLE 9: DESCRIPTIVE STATISTICS ANALYZING JOB CHARACTER FACTORS ON EMPLOYEE JOB PERFORMANCE ......... 33

TABLE 10: COLLINEARITY TEST ................................................................................................................................. 36

TABLE 11: DURBIN WATSON AUTO CORRELATION TEST ............................................................................................ 38

TABLE 12: CORRELATION ANALYSIS .......................................................................................................................... 38

TABLE 13: MODEL SUMMARY ..................................................................................................................................... 41

TABLE 14: ANOVA RESULT ...................................................................................................................................... 42

TABLE 15: COEFFICIENTSA......................................................................................................................................... 42

LIST OF FIGURES
FIGURE 1: THE CONCEPTUAL FRAME WORK OF THE INDEPENDENT AND DEPENDENT VARIABLES ............................... 19

FIGURE 2: LINEARITY TEST ........................................................................................................................................ 35

FIGURE 3: NORMALITY TEST ...................................................................................................................................... 36

FIGURE 4: TEST OF HOMOSCEDASTICITY TEST ........................................................................................................... 37

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 LIST OF ABBRIVATIONS AND ACRONYMS

SPSS Statistical Package for Social Science

SMART Simple, Measurable, attainable, reliable, and timely

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 ABSTRACT

The study's main objective was to analyze “The Effect of Organizational Culture on Employees Job Performance
among Commercial Banks (In case of Woldia city)”. The study employed both descriptive and explanatory
research design and quantitative research approaches. Both primary and secondary sources of data were used.
Questionnaires were the main data collection instrument with five scale pointing rates. Employees of Woldia city
available banks were the target population. Among 532employees, 228 samples were selected by using stratified
and simple random sampling techniques. Descriptive and inferential statistical tools were used: Pearson
correlation and multiple linear regressions were used to analyze the relationship and effect of independent
variables on the dependent variable. Statistical Package for Social Science (SPSS) version 26 was used to analyze
quantitative data from questionnaires. Moreover, the study finding showed that independent factors salary,
communication, job character, and mission factors are statistically significant to affect the employee job
performance in study area. Their p-valve is less than 0.05and statistically affect employee job performance.
According to the finding, researcher recommended that, banks and other concerned bodies should correct and
balance the payment of employees in order to increase performance of employees properly. and the government
as well as the other stake holders should clearly take out the mission as well as objectives for employees, the
mission and objectives of the organization shouldn’t be fantasy and unclear but it become clear, SMART for
employee job performance increasing and organization success.

Key words: Employee job performances, job character, salary, mission, communication

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 CHAPTER ONE: INTRODUCTION
1.1.Background of the Study

According to (Agwu, 2014), an organization's organizational culture plays a crucial role in determining its success
by giving its workers a sense of identity and acting as a source of stability and continuity. In order to attract and
retain top talent, an organization's culture plays a crucial role as the social glue that binds its employees together
and gives them a feeling of community. In addition to having clearly defined management, a successful
organization needs inspired and motivated staff members because contented workers inherently take good care of
the organization's clients, deliver excellent services, and perform well. Supervisors need to understand that
workers are essential to achieving the objectives of the company.

An essential managerial concept is organizational culture which aids in organizing and regulating workers'
attitudes and behaviors to accomplish group goals through cooperation, coordination and synchronization of
activities (Owoyemi & Ekwoaba, 2014). Organizations develop unique cultures in order to convey their values,
the reasons behind them, their goals, and the appropriate conduct expected of them and their members (Kokila &
Ramalingam, 2015).

According to (Cancialosi, 2017) organizational culture explains the underlying attitudes and values that guide
employee behavior as well as what is expected of a business and what it has experienced. It is apparent in how
staff members view themselves, behave within the company, interact with the public, and establish long-term
objectives. Its foundations include shared predispositions, customs, and written and unwritten laws that date back
centuries but are still largely regarded as being of utmost importance today. An organization's culture is made up
of the unspoken customs, beliefs, and behaviors that set the "rules of the game" for power, hierarchy, and
decision-making. It is based on the shared history, traditions, and modern leadership philosophies of the
organization.
Since employee job performance is associated with multiple outcomes, it has become a crucial issue. When a
worker is dedicated to their job, they are content and seldom seek out alternative opportunities. His likelihood of
quitting the company is lower (Gao & Bai, 2011). Employee commitment, however, is a powerful concept that is
simple to see but unduly harsh when put into practice.
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Worker performance is a major issue in many organizations, including government offices in Ethiopia. Employee
commitment is a problem that has a detrimental effect on the effectiveness, productivity, and efficiency of
organizations. Consequently, it is critical to determine the elements that influence workers' performance in
Ethiopian government offices.

Many researchers have discovered a strong and positive correlation between organization and overall culture
(Asghar et al., 2015; Hakim, 2015; Ghader & Afkhami, 2014; Habibet al., 2014); Messner, 2013; Bagheri et al.,
2013; Sabir et al., 2010). Try to understand what is meant by employee commitment and organizational culture, as
well as the positive relationship that many academics have proposed between the two. Thus, the study's goal was
to examine how organizational culture impacted workers' job performance in the banking industry in terms of pay,
work-life balance, communication, and the organization's mission.

1.2.Statement of the Problem

It's widely acknowledged in talks about organizational efficiency nowadays that managers need to learn more
about their cultural environments if they want their organizations to run as smoothly as possible (Hodgetts &
Luthans, 2018).

As the study's backdrop illustrates, a variety of writers and researchers have claimed that organizational
commitment and overall organizational culture have a positive and meaningful relationship. Additionally, there is
a statistically significant and positive correlation between organizational culture and employee commitment
(Salehipour & Ahmand, 2018). There is a positive correlation between employee commitment and organizational
culture, according to Magee (2012). Thus, commitment is impacted by organizational culture. Knowing exactly
how to preserve an organization's culture can help the company progressively raise its level of performance.
Consequently, there will be a rise in employee performance.

According to Ojo (2015) contends that the precise nature of the relationship between employee performance and
organizational culture remains unclear. Similarly, Ogbonna and Harris (2017) assert that there is no widely
acknowledged causal relationship between organizational culture and employees' performance, despite a large
body of research in this area and contributions from a variety of fields.

Employee performance and organizational culture have a positive and statistically significant relationship
(Salehipour & Ah mand, 2018). According to a recent study titled "Culture and Employee Performance," the
2
culture has a considerable impact on an employee's personality and level of dedication, but it does not statistically
significantly affect how well they perform (Sahertian, Setiawan, & Sunnaryo, 2019). Innovative culture, a critical
aspect of corporate culture, has a big impact on how well employees perform (Nwakoby, Okoye, & Anugwu,
2019). Mohammed and Mohsin (2020) conducted another study that demonstrates the value of organizational
culture and how it contributes to meeting management objectives. Additionally, organizational culture affects
knowledge management and managerial effectiveness in different businesses.

According to (Nongo & Ikyanyon, 2012) state that there is no meaningful relationship between mission and
commitment. This suggests that a worker's identification with the aims, purposes, and mission of the company
does not equate to a dedication to the company. Conversely, Nikpour (2016) found that in the education office of
the province of Kerman, there exists a positive correlation between employee commitment and the mission trait.
Employers should always ensure that staff members are aware of and comprehend the goal of the company.

Despite the fact that the topic has been the subject of numerous worldwide studies, elements that apply in one
nation may not apply in another. To the best of the researchers' knowledge, several studies focusing on public
sector areas were restricted to research centers, making it impossible for them to observe certain variables, like the
relationship between employee performance and salary, conducted in different parts of the country, leading to
inconsistencies with some variables, like mission (Nongo & Ikyanyon, 2012). Additionally, the researchers found
no evidence of a significant effect that existed between performance and mission. While (Nikpour, 2016) found
that employee performance and the mission have a positive relationship, researchers need to balance the results of
the two studies by conducting additional research while taking into account that prior research is not always
indicative of future research directions.

Employee performance is currently a major issue at the banking center, which has an impact on organizational
performance, productivity, and efficiency. According to the initial conversation with the same managers, some
employees don't demonstrate a strong performance to finishing their work, and the organization's annual report
reveals high employee turnover, absenteeism, tardiness, and reduced diligence (banks HRM report, 2022). The
purpose of this study is to ascertain the reason behind these issues that arise and have an impact on employees'
loyalty to the organizations they work for. Owing to the aforementioned perceived issue, researchers are
attempting to bridge this knowledge gap by evaluating elements that impact (influence) employee performance,

3
including salary, work life balance, organizational mission, and communication. Based on the aforementioned
study problems, the researcher developed the following basic research questions.

1.3. Research Questions

1. What is the effect of salary on employee job performance?
2. To what extent work life balance affect employee‟s performance?
3. How mission affect employees performance?
4. What is the effect of communication on employee‟s performance?

1.4. Objective of the Study

1.4.1. General Objective
The general objective of the study is analyze the impact of organizational culture on employee job performance.

1.4.2. Specific objectives

1. To examine the effect of salary on employee job performance
2. To investigate the effect of work life-balance on employee job performance

3. To evaluate the effect of mission on employee job performance

4. To evaluate the effect of communication on employee job performance

1.5. Hypothesis Testing

H1: Salary has a significant effect on employee job performance

H2: work life-balance has a significant effect on employee job performance

H3: mission has a significant effect on employee job performance

H4: communication has a significant effect on employee job performance

1.6. Significance of the Study

The main significance of the study is researcher enable to know the pressing problems impact of organizational
culture on employee job performance. Identifying the factors of employee performance in banking sector may an
input for banks HRM to improve employee job performance
4
For employees, show direction and initiate for better performance, the study might detect their weakness in their
day to day operation and for other researchers, it would be the source of information, knowledge, to conduct other
study particularly factors that affect the performance of employee.

1.7. Scope of the Study

The scope of the study would be delimited through geographically, conceptually and methodologically. Even
though researcher to understood the need to cover all country level of problems, un- manageable population size,
lack of finance, and resource limitation the study delimited in woldia city only

Conceptually, the study would assess factors that affect the performance of employee specially salary, work life
balance, mission and communication. Moreover, the study used simple random sampling and stratified sampling
technique in order to get valuable and true information from respondents and data collected primary from
employees of the banks.

1.8. Organization of the Study

The research paper contained five chapters. The first chapter is concern with introductory part which include
introduction, statement of the problem, research questions, objectives of the study, significance of the study, scope
of the study and organization of the study. The second chapter deals with review of related literatures. The third
chapter is concern about the research methodology. In this section it includes study design, data type and source of
data, target population, sample and sampling technique, method of data collection, method of data analysis and
validity and reliability. The fourth chapter deals with about result and discussion and the fifth chapter contain
conclusion, recommendation and managerial implication.

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 CHAPTER TWO

REVIEW OF RELATED LITRATURE

2.1. Theoretical Literature

Culture is significant and complex and it can be difficult to understand and 'use' in a deliberate manner.
Businesses and managers have different perspectives on how important culture is. It's often difficult to get a high
enough level of cultural understanding to guide judgments. Rapid fixes are the main focus of many management
books and concepts, which is detrimental (Alvesson, 2012). The stories, traditions, beliefs, meanings, values,
standards, and language of an organization so give it a sense of identity and define "how things are done around
here."

(Dolan & Lingham, 2012) Propose that culture is a system of values and accepted ideas that establish the
expectations and appropriate behaviors within a particular group. Cultures exist in nations, religious and ethnic
groupings, and organizations. In line with Dolan and Lingham's concept, (Robbins & Judge , 2013) define culture
as a shared meaning system that sets an organization apart from others.

The organizational cultures that can boost the healthcare facility's capacity to compete, improve its community
involvement, and motivate all employees‟ commitment to act morally (Watkins , 2013) and (Valentine et al.,
2018). In order to provide patients with high-quality care services, the healthcare provider should build
organizational skills based on its core competencies and supported by the organizational culture (Lee & Kang ,
2012). "A process of sense-making (e.g. a collaborative process of creating shared awareness and understanding
out of different individuals' perspectives and varied interests) in organizations," is how (Watkins , 2013) described
culture. People's rewards, which encourage and reinforce "right" thinking and behavior while penalizing "wrong"
thinking and behavior, are the best indicators of what they will do.

Every employee must be committed to the organization; this is intrinsic to the way the current organizational
culture operates. Organizational commitment, according to (Luthans, 2006), is a mentality that expresses
employees' allegiance to the organization. Employee communicates their concerns to the organization, success,
and ongoing growth through this continuous process. Commitment to the organization is shown by the way
responsibilities and functions are carried out in carrying out the daily schedule of the organization. The treatment

6
of time as attendance at the workplace in order to provide excellent service, including involvement in institutional
committees and other related activities, is one way that commitment to the organization is put into practice
(Khalik et al., 2016).

Given that organizational commitment is a more comprehensive reaction and resistance to the organization as a
whole than job satisfaction, it makes more sense as a predictor. According to (Ramalho Luz et al., 2018),
organizational commitment is also described as a psychological bond that forms between employees and their
organizations, encouraging employees to stay connected to them in order to avoid leaving on their own initiative.

According to (Satwari et al., 2016) state that a high level of performance to the organization will be seen as a
trusting attitude toward organizational ideals, a willingness to put in maximum effort for the organization's
benefit, and a determined resolve to stay employee of the organization. Employee experience is what connects
employees to their organizations. Organizational commitment performed employees typically have a positive
relationship with their employer, feel at home there, and believe they are aware of the firm's objectives. These
employees have a greater commitment to their jobs, which contributes to their value. They frequently exhibit
comparatively higher productivity and are faster in extending their assistance.

Not every person has the same degree of cultural awareness. Individual differences which might arise from
diverse parental, educational, and micro-social environments are the root cause of intra-cultural variety. As a
result, differences exist among all cultural groupings, including sub cultural ones. Such differences are accepted
by most civilizations; in fact, they may even work as a stimulant for cultural progress or dynamism. For example,
national subcultures might be classified based on socioeconomic status, race or religion, or even occupation.
These elements may give rise to discussion and disagreement, which may present chances for development and
modification. Though culture is created and preserved in social contexts such as organizations, it is dynamic and
ever-evolving. In contrast to educational institutions, national culture is molded in part by the media, history,
political processes, and other elements. Recruits learn organizational culture through socialization, which includes
training and managerial initiatives (Brooks, 2006).

According to (Sinha, 2018), organizational culture encompasses all of organizations unique characteristics that are
focused on how employees relate to one another and view their work in relation to other non-work-related issues.
Workplace culture and organizational culture are influenced by regional, national, and global social and cultural
circumstances. Organizational climate is distinct from organizational culture in that the former is limited to the
7
perceptual configurations within an organization. An organization may have an integrated, differentiated, or
fragmenting culture, depending on how similar the characteristics within its subcultures are to one another.
Diverse academics utilize distinct sets of fundamental beliefs, customs, and behaviors to identify various forms of
organizational cultures. The founder and his group of top executives take the initiative to establish the
organization and hire employee commitment who also contributes to shaping the organization's culture. This is
how organizational culture begins to take shape.

2.1.1. Model of organizational culture

Different researchers develop models on organizational culture which incorporate different traits or behaviors
driven by beliefs and assumptions that create an organizational culture.

2.1.1.1. Deal and Kennedy model

According to (Dolan & Lingham, 2012) tried to summarize the model as follows. The model measured
organization in respect of feedback or instant response accordingly four classification of organizational culture
were developed. These are Tough-Guy Macho Culture, Work Hard / Play Hard Culture, Bet your Company
Culture & Process Culture.

The first Tough-Guy Macho Culture where by feedback is quick and the rewards are high. This often applies to
fast moving financial activities such as brokerage and it is very stressful culture in which to operate. Secondly,
The Work Hard / Play Hard Culture are characterized by few risks being taken, all with rapid feedback. This is
typical in large organizations, which strive for high quality customer service. Thirdly, bet your Company Culture
in which big stakes decisions are taken, but it may be years before the results are known. Typically, these might
involve development or exploration projects, which take years to come to completion, such as oil prospecting or
military aviation. Fourthly, Process Culture which occurs in organizations where there is little or no feedback.
People become suspicious with how things are done not with what is to be achieved. This is often associated with
bureaucracies.

2.1.1.2 Charles handy concept

The second model that (Dolan & Lingham, 2012) discussed in detail is Charles Handy Model. Organizational
structure is the base for this model to classify organizational culture in to four: Power Culture, Role Culture, Task
Culture and Person Culture.

8
A Power Culture in which power concentrates among a few and control radiate from the center like a web. Power
Cultures have few rules and little bureaucracy. A Role Culture characterized by people has clearly delegated
authorities within a highly defined structure. Typically, these organizations form hierarchical bureaucracies thus,
power derives from a person's position and little scope exists for expert power.

A Task Culture in which teams are formed to solve particular problems. Power derives from expertise as long as a
team requires expertise. These cultures often feature the multiple reporting lines of a matrix structure.

A Person Culture exists where all individuals believe themselves superior to the organization. Survival can
become difficult for such organizations, since the concept of an organization suggests that a group of like-minded
individuals pursue the organizational goals.

2.2. Function of Organizational Culture

The game's rules are determined by culture. It first defines boundaries by differentiating across organizations.
Second, it gives members of the organization a sense of identity. Thirdly, culture encourages loyalty to a cause
greater than one's own self-interest. Fourth, it improves the social system's stability. Culture acts as a social bond
that ties the organization together because it establishes expectations for what employees should say and do.

Finally, but just as importantly it serves as a control and sense-making mechanism that guides and shapes
employees attitudes and actions. When there is a strong organizational culture supported by clear rules and
regulations, employee conduct is more consistent and predictable. Building a strong culture is more difficult than
ever, but unexpectedly, the present movement toward independent organizations also makes it more difficult to
construct a strong culture. Decentralization reduces formal authority and control structures, and the common
meaning of culture can guide everyone in the same direction. Teams of employees, on the other hand, might be
more loyal to their group and its principles than to the organization as a whole (Robbins & Judge , 2013).

9
2.3. Empirical Review on Organization Culture and Employee Commitment

According to (Orpen, 2015) believes that employee empowerment can be a key element of changing the culture of
an organization because it includes the concepts of internal justification for decision making, shared
responsibilities, intrinsic motivation, and integration for problem solving. As they advance in an organization,
employees gain comprehension, internalize justification for their actions, and develop intrinsic motivation. As part
of this internalization process, employees commitment regularly step in to correct the behavior of less
experienced employees commitment and give feedback on activities that align with the culture. When employees
are empowered, they are driven toward employment because they are aware of their responsibilities and feel
capable of doing them.

According to (Kurstedt & Mallk, 2016), assert that an organization's culture affects its level of empowerment.
Strong cultures promote the empowerment process in many ways. First, companies with strong cultures continue
to be clear and consistent in their missions. Second, because management tends to speak with a single voice and
communications are less ambiguous, organization with strong cultures avoid giving contradictory messages.
Thirdly, essential decision making processes are guided by a core of consistency in organizations with strong
cultures. This inner core supports consistency with regard to fundamental concepts and standards of thought,
while providing individual interpretations and responses for topics beyond it. Fourth, organizations with strong
cultures help employees build their social capital through connections, experience, status, and expertise. This
social currency gives people the ability to communicate, trust one another, and accomplish tasks without the need
for official titles or authority.

According to (Manyonyi, 2017), an organization can foster a sense of belonging among its employee commitment
by providing them with accessible and effective information communication. This encourages workers to give
their all for the organization as well as for their salary. Information that can be shared with employee commitment
includes the organization's long term plans as well as recent advancements, including opportunities or challenges
the business is facing. Offering incentives to employee commitment in order to improve their performance is
another approach for encouraging a culture of engagement inside an organization. This is often not true. The most
popular wish among employees is to feel valued by their employer or organization.

10
2.3.1. Organization culture of salary and employee job performance
Salaries must be paid immediately in addition to being paid on schedule or as soon as they become payable. When
employees may anticipate receiving such pay must be made known by the corporation to them. Once more, the
process and mechanism of payment for these salaries need to be somewhat consistent (Chukwudi et al., 2012).
In addition to being a helpful tool, attractive compensation or payment has a big role in raising employee
commitment and productivity (Azar & Shafighi , 2013). Salary is a major motivator because, as we have been told
from the beginning of time, we shall be rewarded for our labor. The opportunity to support oneself through a
payment or wage is the main reason for taking a paid job.

Salary is the process of paying employees of an organization in line with specified procedures and policies. A
good organization's pay and salary administration strategy must include the monitoring and assessment of each
employee's salary to ensure that they are being paid fairly, both relative to other employees in the same
organization and to the market as a whole. Salaries are often handled by the company's human resources
department, although larger businesses are more likely to have a separate department manage it (Muo, 2007)
considering the significance of pay incentive systems for employees in both public and private sector
organizations, it is disappointing to observe that they are not controlled and implemented in integrated sustainable
pay reward systems.

Nigeria's public sector follows a number of policies and practices that are out of step with the demands of
moderation, current affairs, and justice. The degree of competition has increased, company costs have gone up, the
cost of living in Nigeria has gone up significantly in recent years, and employees are now more conscious of the
value they provide and the pay they receive in the form of wages and salaries (Agba & Ushie, 2013).

The basic idea is to estimate each position's value to the organization and account for the results of this process of
observation and assessment, which will result in wage adjustments. Although other factors may affect payment
adjustments, these assessments will be essential in a situation where collective bargaining is in place for any such
alterations (Wise, 2013) Pay increases boost commitment outcomes and have a beneficial impact on employee
productivity, satisfaction, and commitment all rise.

11
According to (Robbins & Judge, 2007), highlighted the significance of a salary structure that promotes
cooperative efforts as opposed to competitive ones. They held the opinion that incentives like as wage raises and
promotions should be given to people in recognition of their achievements as successful team players. They
stressed that this is not to mean that individual contributions are ignored; rather, they are counterbalanced by
selfless actions taken in the interest of the team. They stated that the team should be rewarded for actions such as
coaching new teammates, imparting information to teammates, helping to resolve conflicts within the team, and
picking up new skills that the team is missing.

Salary increases were dependent on fluctuations in the cost of living, and employees viewed compensation
increases as rights rather than rewards based on their own or the organization's achievements. This meant that an
increase in salary increased an employee‟s financial independence without requiring a corresponding increase in
their effectiveness toward the organization. On the one hand, this meant that an employee's salary increase did not,
in any way, alter his or her attitude toward work such that he or she could exert more effort to affect overall output
to make up for the increase (Swanson et al., 2020).

It's not always the case that adjustments to the pay scale boost employee comfort and productivity. There are
numerous choices available to the management organization to improve employee efficiency (Ertanto &
Suharnomo, 2011). The organization and its employee may recognize the value of human resource development
through this pay structure. Self-esteem is only helpful as a partial mediating variable between salaries and their
impacts on effectiveness since a higher income has a direct impact on achievement rather than being mediated by
it (Ertanto & Suharnomo, 2011). Workplace motivation, job satisfaction, and compensation all have a big impact
on how effective employees are.

Raising salaries is the hardest thing an organization can do, but it's also one of the most crucial things for
employees because it shows to them how much their families, communities, and even themselves respect their
labor. Pay is important to an organization because it shows the effort it puts in to safeguard its employees and
keep them at high levels of commitment and loyalty. It is expected that the approach of increasing compensation
will facilitate the viability of the employees, the realization of the organization's vision and purpose, and the
achievement of employment objectives (Umar, 2012).

Salaries are a set amount provided to employees on a regular basis in recognition of their performance and
productivity, whereas wages are hourly-based payments made to labor for the quantity of work, according to
12
(Surbhi, 2015). When a paid job is finished in a single day, it's referred to as "blue collar labor jobs," which
suggests that the worker performs unskilled or semi-skilled labor and is paid daily for it. He went on to say that
although salaried people are typically described as working in "white collar office jobs," this suggests that they are
highly talented, well-educated, hired by a company, and hold a respectable status in society. The basic idea is to
estimate each position's value to the organization and account for the results of this process of observation and
assessment, which will result in wage adjustments.

Even though other factors may affect compensation changes, these assessments will be essential in a situation
where collective bargaining is in place (Wise, 2013). Pay increases positively impact employee productivity and
enhance performance outcomes. Productivity, satisfaction, and performance all raise.

H1: Salary has a significant effect on employee job performance.

2.3.2. Work life balance and employee job performance

Work and personal lives must be balanced by both the organization and its employees. Organizations use work-
life balance practices to reduce employee conflict between work and personal life. Additionally, this makes
workers more productive and efficient at work (Lazar, Osoian, and Ratiu, 2010). Work-life balance has been
defined in a number of ways over the years. Work-life balance is crucial in determining an employee's attitude
toward their company and their personal life, according to Scholarios (2004).

Work-life balance has been defined by Clark (2000) and Ungerson & Yeandle (2005) as the idea that employees
should maintain and integrate their personal, professional, and family time while reducing the likelihood of
conflict. According to Guest (2002), there is a possibility of identifying a work-life balance trend and growth since
it affects employees' job outcomes and well-being. According to Dundas (2008), striking a balance between work
and personal life involves effectively managing and adjusting both.

In recent years, companies are increasingly becoming aware of the need to embrace the concept of work–life
balance as an important tool to facilitate sustainable human resources, which is found to be very important to
attract and retain talents (Ruth Eikhof, Warhurst&Haunschild, 2007; Ojo, Salau&Falola, 2014). Ahuja (2014)
supports this where work-life balance affects absenteeism, productivity, and work satisfaction thus influencing
employee innovativeness.

13
According to Xiaoxia Sun,(2019): The study is conducted among the hospitality and tourism entrepreneurs to
analyze their work-life balance pattern. Many of the entrepreneurs shifted to the business area. Leaving their
family in the city and having business in some other area really has a psychological impact. Though they are
happy with their work by balancing the work and life by having trustable employee‟s .They have appointed close
relatives and friends as the authorities. By the way, business is not the work but it‟s a life-style. Those who can
manage this life-style positively can have greater benefits than running his/her life as a employee in an
organization. The study discusses about the boundary management tactics of lifestyle entrepreneurs.

H2: Work life balance has a significant effect on the job performance of employees

2.3.3. Mission and employee performance

According to (Achua & lussier, 2013), an organization's unique organizational culture generates value and is
difficult to replicate or reproduce. This helps establish and preserve an organization's competitive advantage. In
order for this to occur, the organization must have a meaningful mission statement and set of values that people
will accept, as well as a set of guiding principles that are supported in a variety of symbolic and useful ways.
Organizations that promote innovation reward high work performance from their employees because it encourages
competition among them. This will motivate every other employee in that organization to put in their best effort in
order to be noticed and stand out.

According to (Forest & David, 2003), it is sometimes known as a belief, purpose, or declaration describing the
organization's culture and principles. It frequently represents the ideals and viewpoints of an organization's senior
management. Therefore, it all begins with the leaders of the organization defining these values, after which they
assist the staff in realizing how their own values are affirmed when they carry out their duties in a way that aligns
with the organization's values. (Gordon, 2008), believes that when personal and employer principles are aligned,
staff involvement will rise. As a result, employees experience more job satisfaction and are inspired to work more
and give their all at work.

According to (Denison & Neale, 2011), believe that an organization's mission gives it meaning and purpose by
outlining its social function and external objectives. Additionally, a mission statement offers precise guidelines
and objectives that help establish a suitable course of action for the business and its members, which raises
employee commitment to the organization.

14
According to (Runy, 2007), agrees and adds that a high-performing organization has committed employees who
share the mission, values, and vision of the business and are determined to achieve its objectives.(Achua &
lussier, 2013), Assert that culture fosters a shared understanding of an organization's identity. Employees are
more likely to rise to the challenge of accomplishing the organization's goal and work well in teams when they
feel appreciated as valuable contributors to the culture of the business. It has the capacity to transform employee
commitment into inventive and creative assets for an organization.

According to (Nongo & Ikyanyon, 2012), reported that no significant relationship between mission and
commitment. This indicates that an employee's identification with the organization's mission, purpose, and goals
does not translate into a commitment to the organization. However, organizations should always make sure that
employees are aware of the organization's objective and that it is defined clearly.

According to (Mersen, 2016), to internalize and identify with an organizational mission contributes to both short
and long term commitment of employees to the organization. The mission and employees commitment has
significant relationship. (Saadat et al., 2012), found of that mission and employees‟ commitment has significant
relationship. An empirical study also carried out in Bank Saderat Iran shows that there was positive relationship
between mission and employees‟ performance.

H3: Mission has a significant effect on employee job performance.

2.3.4. Communication and Employee Innovativeness

According to Mastel al. (2015) Innovation Communication as symbolic interactions between organizations and
their stakeholders, dealing with new products, services, and technologies, Furthermore Zerfaß et al. (2004) state
that the communication of innovation is the systematically planned executed and evaluated communication of
Innovation with the aim to create empathy and trust in the innovation. Moreover, it is meant to position the
organization itself as an innovator. Communication of the innovative performance or the innovativeness to
internal and external stakeholders serves several functions (Zerfaß/Huck, 2007). To internal stakeholders the
communication is supposed to create awareness for innovation matters (Mast el al. 2005), motivate staff (Greg,
2012), create an innovation culture (Benner/Tushman, 2003; Zahra et al. 2000) cross-pollinate ideas and
knowledge during the research, development and application stages and to keep up the employee loyalty or
retention. According to Zerfaß et al. (2004) state that the communication of innovation is the systematically

15
planned, executed and evaluated communication of innovation with the aim to create empathy and trust in the
innovation. Moreover, it is meant to position the organization itself as an innovator.

Geels and Schot (2007) articulated four transition pathways that depended on whether internal or external
communication. They also observed that multiple types of agency are involved in most transitions. The
involvement of multiple agents creates added complexity at the transition points as there is rarely a shared view of
the interaction and there are inevitable differences in language and understanding as engineers interact with
research scientists and researchers interact with management and marketing. This potential problem of
misunderstandings can compromise the successful navigation of a transition and the progression of a particular
performance

Simon (2011) supports the theory of communication and reinforced two-way communication channels between
employees and managers as a key driver of employee engagement. Simon‟s (2011) study illustrated that two-way
communication; high quality line management, a development focus for employees‟ commitment and employee
wellbeing are among the top drivers of employee engagement within organizations. According to the CIPD
(2006), the feeling of being well informed about what is happening in the organization and thinking that their
manager is committed to the organization was other important drivers.
Robinson et al. (2004) explains further that employee engagement requires a two-way relationship between
employer and employee that continuously needs to be developed in order to maintain levels of engagement.
Allowing employees to have a voice is important when looking at innovation (Rees & French, 2010). This can be
established by having effective communication channels that allow both upward and downward communication,
which will help to create a more open and trusting environment, resulting in higher levels of engagement
(Attridge, 2009).

Communication is found to be an important factor, since engagement levels is affected by the amount of
information employees received about how the company was/is performing, and how they contributed to the
company in achieving its business objectives. Furthermore, employees being involved in a company decisions
affecting their job or work is also associated with high levels of engagement (Purcell et al. 2003).

To maintain trust during difficult periods such as layoffs, senior management must communicate
effectively, provide rationale for the decisions they make, and treat employees in a dignified and respectful
manner (Folger and Skarlicki, 1998; Dirks and Skarlicki, 2004).

16
2.4. Employee Job Performance
The word „performance‟ can be used to describe different aspects such as societal performance, organizational
performance, employee performance, and individual performance etc. Employee‟s performance means the ability
of employees to attain goals either personal or organizational by using resources efficiently and effectively (Daft,
2000). Employee performance is originally what an employee does or does not and how those activities were
executed. It plays an important role for organizational performance Employee performance at the work place is a
major concern for the organizations irrespective of all the factors and conditions. As such, employees are
considered very important assets to their organizations (Qureshi & Ramay, 2006).

According to Mohammad, Rumana and Saad (2013) the word „performance‟ can be used to describe different
aspects such as societal performance, organizational performance, employee performance, and individual
performance etc. Performance on the other hand refers to be the ability (both physical & psychological) to execute
a specific task in a specific manner that can be measured as high, medium or low in scale. Performance refers to
the degree of achievement of the mission at work place that builds up an employee job. Different researchers have
different thoughts about performance. Mostly researchers used the term performance to express the range of
measurements of transactional efficiency and input & output efficiency. Performance is a continuous process to
controversial issue between organizational researchers (Fakhar, Rana and Ayesha, 2012).

Employee‟s performance means the ability of employees to attain goals either personal or organizational by using
resources efficiently and effectively. Sometime the term performance mixed with productivity. Performance and
productivity were two different things. Productivity means the ratio represents the volume of work done within the
due to the period while performance is an indicator of productivity, consistency, and quality of work (Fakhar,
Zahid & Muhammad, 2013). From Dedrick (1999) points, employee performance could be defined as the record
of outcomes achieved, for each job function, during a specified period of time. If viewed in this way, performance
is represented as a distribution of outcomes achieved, and performance could be measured by using a variety of
parameters which describe an employee‟s paten of performance over time. Different studies related to employee
performance variables were carried out in the past.

A study Murphy and Kroeker (2018) defines employee performance as a function of the individual‟s
performances on the specific tasks that comprise standard job descriptions, and declares that it is also affected by
variables such as maintaining good interpersonal relations, absenteeism and withdrawal behaviors, substance

17
abuse and other behaviors that increase hazards at the workplace. A study Befort and Hattrup (2003) indicates that
the essence of job performance relies on the demands of job, the goals and the mission of the organization and the
beliefs of the organization about which behavior are mostly valued. To conclude, employee performance could be
simply understood as the related activities expected of a worker and how well those activities were executed.

Hellriegel, Jackson and Slocum (2009) defined performance as the level of an individual's work achievement after
having exerted effort. Job performance can be viewed as an activity in which an individual is able to accomplish
the task assigned to him/her successfully, subject to the normal constraints of reasonable utilization of the
available resources (Dar, Akmal, Akram & Khan, 2011).

According to Motowidlo, Borman, & Schmidt (2007) defined employee performance as the overall expected
value from employees‟ behaviours carried out over the course of a set period of time. Charity (2009) performance
means the degree of completion of an employee‟s task or given objective. “Performance is associated with
quantity of output, quality of output, and timeliness of output, presence / attendance on the job, efficiency of the
work completed and effectiveness of work completed”. Employee performance can be defined as the job relevant
activities anticipated from an employee and how well such activities are executed. Although there is no general
and predominant theory about employees‟ execution (Calvin, 2017), thus the viability with which associations
oversee, create and empower their employees is a significant cornerstone of organizational performance
(Christensen, 2011). Hence, people management contributes significantly in performance (Xanthopoulou, Bakker,
Demerouti, & Schaufeli, 2009).

Performance can be traced back to the attitudes of individuals on the shop floor. Employees work in certain ways
and behave in a way that adds to (the objectives of) the association. If employees‟ performance doesn't add value,
the organizations have no reason to exist (Bauer, Erdogan, Liden & Wayen, 2006). Employee performance is an
activity that is very important because it can be used as a measure of success in supporting the success of the
organization‟s employees (Said, 2008). Employees are extremely motivated to monthly rewards. Employee are the
important part of any organization increasing the performance they can be motivated through financial and non-
financial benefits they can designing that you can says that composition is reward which is receiving by the
employee to show their performance (Rizwan & Ali, 2010).

18
2.6. Conceptual Framework of the Study

According to Mugenda (2003), a conceptual framework, is a diagrammatic representation of the connection

between dependent and independent variables. By using a conceptual framework, the study problem was
described using concepts that are related to one another. In this study the dependent variable is performance of
employee and the independent variables salary, work life balance, communication and mission.

Figure 1: The conceptual frame work of the independent and dependent variables

Salary

work life balance

Employees job
mission performance

Communication

Source: own developed, 2024

19
 CHAPTER THREE

RESEARCH METHODOLOGY

3.1. Introduction

The main point discuss in this section would be design of research, approach, target population,
sample size, sampling method, source of data and data collection instrument, explanation of and
techniques to evaluate facts.

3.2. Research Approach

The study used quantitative research approach. Quantitative research approach is considered to
be appropriate to gather data and address the research questions of this study. This is because
quantitative research is a systematic investigation of phenomena by gathering quantifiable data
and performing statistical, mathematical or computational techniques and mostly conducted in
social sciences using the statistical methods (Bryman, 2004).

3.3. Research Design

The study used both descriptive and explanatory research design. Explanatory research design
used for convenient for an explanation of cause and effect relationship between the dependent
and independent variables. Descriptive research design is convenient for description of the
predictor variables (organizational culture) and the dependent variables (employee job
performance). A descriptive and explanatory research design allows a researcher to gather
information, summarize present data and interpret it for the purpose of clarification (Creswell,
2003s).

3.4. Target Population

All elements (individuals, objects, and events) that meet the sample criterion for inclusion in a
report are referred to as the population. The target population of the study is employees of

20
commercial banks in Woldia City. The total numbers of employees in these banks is 532 (2023
HRM report).

3.5. Sample and Sampling Technique

Researcher to get sample from the total population stratified sampling technique used. The total
number of employees who engage in the banks classify in to names. These names are different
names of commercial banks. Researcher would use simple random sampling technique after
stratification made. To identify the target participants or sample size in this study, the researcher
would use Yamane's (1967) formula. Researcher used 5% error and 95% of confidence interval.
Hence, the formula is described as follows: n= N/1+N (e) ².

Where

n= Sample size

N = Size of total population

e= error margin or level of precision (0.05 in this case)

532/1+532(0.05)² = 228 Samples will be taken to gain true and valuable information

Table 1: Proportionate Sample Distribution for employees of each bank

S/No Bank EMPLOYEES SAMPLE SIZE

1 CBE Woldia Branch 56 25

2 CBE Adago Branch 38 16

3 CBE Mecharie Branch 24 10

4 CBE Gubalafto Branch 26 11

5 CBE Gonderber Branch 22 10

6 CBE Yejugenet Branch 22 10

7 CBE Kerim Branch 20 9

21
8 Tseday Bank Adago Branch 16 7

9 Tseday Bank Woldia Branch 12 5

10 Tseday Bank Gonderber Branch 16 7

11 Tseday Bank Gubalafto Branch 12 5

12 Tseday Bank Mugad Branch 10 4

13 AHADU BANK WOLDIA BRANCH 6 3

14 ENAT BANK WOLDIA BRANCH 6 3

15 NIB BANK WOLDIA BRANCH 6 3

16 TSHEAY BANK WOLDIA BRANCH 6 3

17 Dashen Bank Woldia Branch 20 9

18 Dashen Debregelila Branch 12 5

19 Dashen Bank Gonderber Branch 10 4

20 Dashen Bank Rukiya Branch 8 3

21 Awash Bank Woldia Branch 14 6

22 Awash Bank Adago Branch 12 5

23 Oromoia Bank Woldia Branch 8 3

24 Abay bank Woldia Branch 14 6

25 Abay Bank Adago Branch 10 4

26 Abay Bank Mecharie Branch 8 3

27 Amhara Bank Woldia Branch 12 5

28 Amhara Bank Merhaba Branch 8 3

22
29 Hibret Bank Woldia Branch 10 4

30 Hibret Bank Gonderber Branch 8 3

31 Wegagen Bank Woldia Branch 6 3

32 Anbesa Bank Woldia Branch 6 3

33 Hijra Bank Woldia Branch 8 3

34 Zamzam Bank Woldia Branch 6 3

35 Abyssinia Bank Woldia Branch 12 5

36 Abyssinia Bank Adago Branch 8 3

37 Abyssinia Bank Debregelila Branch 10 4

38 Berhan Bank Woldia Branch 10 4

39 Bunna Bank Woldia Branch 8 3

40 Bunna Bank Mugad Branch 6 3

TOTAL 532 228

Source: survey, 2024

3.6. Source of Data and Method of Data Collection

The study employed both primary and secondary source of data. The primary source of data
collected directly from employee of the banks through close-ended questionnaires. Secondary
sources are essential for precise literature review which was gained from annual office reports,
previous thesis, articles, and policy papers.

3.7. Data Collection Instrument

Questionnaires would be the method of data collection from the sample to get fair representation
of the population. The questionnaires included closed-end questionnaires with a Likert scale.
The survey questionnaire in this study would contained a five-scale-pointing rating from (1)
23
strongly disagrees to strongly agree (5). The questionnaires adapted from different journals,
thesis papers and articles and amend it based on the respondents and study area.

3.8. Variables Description

Salary: To being a valuable tool, attractive salaries or compensation also plays a crucial part in
raising employee productivity and performance (Azar & Shafighi, 2013). One of the most
significant motivating reasons is pay, as we have been promised since the beginning of time that
we will eat from our sweat. The primary motivation for taking up a paid position is the ability to
support oneself through a paycheck or wage.

Communication:- Communication of the innovative performance or the innovativeness to

internal and external stakeholders serves several functions (Zerfaß/Huck, 2007). To internal
stakeholders the communication is supposed to create awareness for innovation matters (Mast el
al. 2005), motivate staff (Greg, 2012), create an innovation culture (Benner/Tushman, 2003;
Zahra et al. 2000) cross-pollinate ideas and knowledge during the research, development and
application stages and to keep up the employee loyalty or retention.

Mission: According to Achua and Lussier (2013), a unique corporate culture provides value to
the organization and, therefore, hard to duplicate or imitate. In this regard, it helps to build and
sustain a firm‟s competitive advantage. For this to happen, the organization has to have a mission
statement and values that have meaning; a statement that people will take seriously; a set of
overarching beliefs that serve as powerful guides for everyday action and that are reinforced in a
hundred different ways, both symbolic and substantive.

3.8. Validity and Reliability

3.8.1. Validity

Validity refers to how well a test measures what it promises to measure (Creswell, 2003).
Researcher will use trust worth sources for the study reliability and validity of the measurement
of the data to solve the problem in which the study area exist. Questionnaires addition, omission
and adaption from different source like previous articles, papers and journals. Research advisor
also added, omitted the questionnaires according to the study area respondents.

24
3.8.2. Reliability

According to Kothari (2004), a measuring instrument is dependable if it gives consistent results.

A reliability test will be conduct to ensure the measurement scale's internal consistency and
accuracy. Cronbach's alpha would utilize to assess the data instrument's reliability. When,
researcher wants to check the reliability of the dependent variables and independent variables in
the study (employee job performance).

3.9. Data Analysis and Model Specification

Data would be analyzed after collecting from respondents. The data would organize, analyzed,
and interpreted through statistical package for social science (SPSS) version 26. Both descriptive
and inferential statistics would be used to analyze the data in order to see the relationship and
cause and effect of the explanatory variables and predicted once. The model of this study was
specifying using multiple regression analysis between the independent variables and dependent
variable as follows.

Job performance of employees (Yi) =ḟ (S, WLB, Co, M)

Y = β0+β1x1+β2x2+β3x3+ β4x4 + Ԑ0

Where

β0 represent constant term

X1 represent salary

X2 represent work life balance

X3 represent communication

X4 represent mission

25
3.10. Ethical consideration

Data would be collected after the researcher get official permission from the institution; the goal
of ethics is to ensure that no one is hurt or experiences negative repercussions as a result of
research. By sending an official letter to the necessary organizations, all important data for this
study gathered.

At any point during the data collection process, respondents had the option to decline or
terminate.

26
 CHAPTER FOUR

RESULT AND DISCUSSION

4.1. Introduction
This chapter focused on the presentation, analysis, and interpretation of data and contains the
reliability analysis, respondents' profiles, descriptive statistics, correlation analysis, and multiple
regression analysis. A total of 228 questionnaires were distributed and were collected from
employees of commercial banks in Woldia City. Out of 228 questionnaires 215 were properly
filled out and collected. This represents 94.2% of respondents responded properly and returned
it. The analysis and all the discussions below are made on these groups of respondents. The
collected data were analyzed by using the statistical package for social science (SPSS) version 26
to answer the research questions.

4.2. Response Rate

4.2.1. Demographic Characteristics of the Respondents

Table 2: Demographic characteristics of respondents

Frequency Percent Total (%)
Total
Item
Sex Male 162 75.3
Female 53 215 24.7 100

Age 18-25 26 12.1

26-33 92 42.8
34-42 72 215 33.5 100
42-49 17 7.9
Over 50 8 3.7
Marital Status Single 64 215 29.8
Married 140 65.1
Divorce/Widowed 11 5.1 100
Educational Diploma 47 215 21.9 100
Level Degree 151 70.2
Master and above 17 7.9

27
Source: survey, 2024
The above table shown about the demographic characteristics of respondents, related to sex 162
(75.%) of respondents are male and 53(24.7) respondents are females. The findings of the study
shows majority of respondents are male in the study area. Concerning to age the majority of
respondents 26 (12.1%) were between the ages of 18-25 years, 92(42.8%) 26-33 years,
72(33.5%),33-41, 17(7.9%) from 42-49 and 8(3.7) of respondents are above 50 years. The
majority of the responders in this table are between the ages of 26-33 years.

Related to the marital status of respondents, 64(29.8%) of respondents are unmarried (single),
140(65.1%) respondents are married and the remaining 11(5.1%) respondents are
divorced/widowed. This shows that the majority of employees in the study area was are married.
And regarding to the educational background of respondents, 47(621.9%) of the employees are
diploma, 151 (70.2%) respondents are degree, 17(7.9%) of the respondent are master above it.
The study finding shows that majority of respondents are degree holders.

4.3. Reliability Test

To validate the internal consistency and accuracy of the measurement scale, a reliability test was
conducted. Cronbach's alpha was used to assess the data instrument's dependability. In order to
examine the factors influencing the employee job performance in woldia city bank workers, a
questionnaire was used in the study. The general criteria for reliability is better than.9
outstanding, greater than.8 very good, greater than.7 good, and.6 to.69 acceptable, according to
George and Malley (2003). Therefore, the reliability for each item related to the factors is also
listed in the following table.

Table 3: Reliability Test

No Variables Cronbach‟s Alpha No of item Decision

1 Employee Job .756 4 Accepted
Performance
2 Work life balance .740 6 Accepted
3 Salary .750 5 Accepted

28
4 Communication .717 5 Accepted

5 Mission .711 6 Accepted

6 Job character .852 6 Accepted

7 Total .887 32 Accepted

Source: own survey, 2024

As the above table shows, Cronbach's Alpha for all independent and dependent variables was
0.887. According to (George and Malley, 2003), the rule of thumb very good reliability is more
than 0.8(0.887). The reliability of measurement used in the study can be considered as good and
acceptable. The Cronbach's Alpha for all variables was .887.

4.4. The Mean of Dependent and Independent Variables

4.4.1. Employee job performance

Table 4: Descriptive Statistics analyzing Employee job performance

Descriptive Statistics
N Mean Std. Deviation
Your rated the quality of your work in the last performance is 215 3.07 1.255
not excellent
You haven‟t a complete knowledge and understanding of tasks. 215 3.07 1.098
You always aren‟t reach your objective set (performance 215 3.63 .996
target).
You review your performance continuously for improvement. 215 3.60 1.067
Grand mean 3.45
Source: own survey, 2024

As the above table shown as regarding to the performance of employees, Your rated the quality
of your work in the last performance not excellent the mean value of 3.07 and standard deviation
of .1.255. This means that the rate of employees in the organization is not excellent. Regarding to
the you hasn‟t a complete knowledge and understanding of tasks the mean value of 3.07 and
standard deviation of 1.098. Concerning to you isn‟t always reaching your objective set
(performance target) the mean value of 3.63 and .996. Related to the review your performance
29
continuously for improvement the mean value of 3.60 and standard deviation of 1.067.This
shows as the mean and standard deviation of shows as respondents agreed as the employee
performance of the study area was not good and effective due to the above stated problems.

4.4.2. Work life balance factors

Table 5: Descriptive Statistics analyzing work life balance factors on Employee job
performance

Descriptive Statistics
Std.
N Mean Deviation
Your personal life and work life is not balance 215 2.87 1.199
Your work life don‟t support employee to innovation. 215 3.20 1.082
Your work life and co-workers life is not balance 215 3.34 1.136
Your work place is not good for innovation. 215 3.52 1.041
Your work life balance gives little opportunity to innovation 215 3.38 1.157
and creativity
You have low work life balance for create new things 215 3.60 1.253
Grand mean 3.56

Source: own survey, 2024

According to the above table, which showed descriptive statistics analyzing work-life balance
on the employee performance, your personal life and work life is not balance, have a mean
difference of 2.87and a standard deviation of 1.199 which indicated that work life have not good
on employees in the study area. Your work life don‟t support employee to innovation has the
mean difference was 3.20 and the standard deviation of 1.082. Your work life and co-workers
life is not balance in the study area had a mean difference of 3.34 and a standard deviation of
1.136, indicating that respondents responded agreed on the employee work life balance is not
good in the study area.
Your work place is not good for innovation, has the mean difference was 3.52 and a standard
deviation of .1.041, Your work life balance gives little opportunity to innovation and creativity
with mean value of 3.38 and standard deviation of 1.157. This means that employee has little
opportunity in the study area.

30
You have low work life balance for create new things, has the mean value of 3.60 and standard
deviation of 1.253, this showed that work life balance of employee affects creativity and
innovation by different reason and respondents responded to agree.

4.4.3. Salary related factor

Table 6: Descriptive Statistics analyzing salary factors on Employee job performance

Descriptive Statistics
Std.
N Mean Deviation
The salary your organization pay to is not enough 215 3.32 1.047
You are not satisfy by your salary 215 3.24 1.040
Your salary is low for idea conception and 215 3.01 1.021
implementation to increase performance
You got low reward when you do your additional job 215 3.65 .954
You payment that your organization pay is little 215 3.23 1.036
Grand mean 2.29

Source: survey, 2024

The table shown descriptive statistics analyzing salary factors on employee job performance,
concerning the salary your organization pay to is not enough, the mean valve of 3.32 with a
standard deviation of 1.047. The satisfaction of respondents by your salary in study area was a
mean deviation was 3.24 and standard deviation of 1.040, employees is not satisfied in the study
area.

Regarding the salary amount, the mean difference was 3.65with a standard deviation of .954.
Concerning to additional reward the mean value was 3.23 and with a standard deviation of
1.1.036and payment level is low wit mean value of 3.65 and standard deviation of .954.
Respondent responded about the impact of salary, the employee faces any type of salary
problem; those factors hinder their operation in any manner. Respondent responded as the salary
affect their performance and agree it can affect their performance and the level of agreement is
neutral for decision.

31
4.4.4. Communication factor
Table 7: Descriptive Statistics analyzing communication factors on Employee job
performance

Descriptive Statistics
N Mean Std. Deviation
Your communication with co-workers is poor and little 215 2.96 1.486
The communication between you and your manger is not 215 3.48 1.106
good.
You have low communication to share idea for innovation 215 3.31 1.374
Your communication from other concerned bodies low, leads 215 3.38 1.361
to low innovation
Your communication have less acceptance for innovation 215 3.07 1.230
Grand mean 215 3.65
Source: own survey, 2024

As the above table showed regarding to the communication factors of the study in the study area.
Regarding to your communication with co-workers the mean value of 2.96 and standard
deviation of 1.486, means the organization communication is not comfortable in the study area.
Concerning to communication between you and your manger is not good the mean value of 3.48
and standard deviation 1.106, Regarding to the have low communication to share idea for
innovation the mean value of 3.31 and standard deviation of 1.374.

Regarding to there is communication from other concerned bodies low to innovation the mean
value of 3.38 and standard deviation of 1.361. And you communication have less acceptance
for innovation the mean value of 3.07 and standard deviation of 1.230. The study finding showed
as communication of the organization affect the employee job performance in the study area. The
grand mean shows about agreement levels of respondent is agree.

4.4.5. Mission factors

Table 8: Descriptive Statistics analyzing mission factors on Employee job performance

Descriptive Statistics
N Mean Std. Deviation
Your organization mission is not comfort to increase 215 3.02 1.174
performance

32
Your organization doesn‟t provide reward for employee job 215 3.26 1.088
performance.
There is no clear mission that gives meaning and direction to 215 3.20 1.113
your work.
There is no a long -term purpose and direction of the 215 3.25 1.172
company
You aren‟t continuously track your progress against your 215 3.28 1.159
stated goals
Your mission is not concern for employee but for business 215 2.82 1.332
Grand mean 215
Source: survey, 2024
As the above table showed regarding to the mission factors of the study in the study area.
Regarding to your organization mission is not comfort to increase performance the mean value of
3.02 and standard deviation of 1.174, means the organization mission is not comfortable in the
study area. Concerning to your organization doesn‟t provide reward for employee job
performance the mean value of 3.26 and standard deviation 1.088, Regarding to the there is no
clear mission that gives meaning and direction to your work the mean value of 3.20 and standard
deviation of 1.113.

Regarding to there is no a long -term purpose and direction of the company the mean value of
3.25 and standard deviation of 1.172. And you aren‟t continuously tracking your progress
against your stated goals the mean value of 3.28 and standard deviation of 1.159 and your
mission is not concern for employee but for business the mean value of 2.82 and standard
deviation of 1.332. The study finding showed as mission of the organization affect the employee
performance in the study area.

4.4.6. Job characteristics

Table 9: Descriptive Statistics analyzing job character factors on Employee job
performance

Descriptive Statistics
N Mean Std. Deviation
You have not autonomy in your job 215 3.62 1.189
Your job don‟t permit me to decide on my way how to go 215 2.88 .952
about doing the work

33
Your job has not complete piece of work that has an obvious 215 2.88 .952
beginning and end.
he job doesn‟t require me to do many different things at work, 215 3.38 .987
using a variety of my skills and talents
The results of your job significantly affect the lives or well- 215 3.75 .992
being of other people
You have less freedom on your task 215 3.69 .649
Grand mean 215
Source: survey, 2024
As the above table showed regarding to the mission factors of the study in the study area. The
autonomy in your job the mean value of 3.62 and standard deviation 1.189, Your job don‟t
permit me to decide on my way how to go about doing the work the mean of 2.88 and standard
deviation of .952, Your job has not complete piece of work that has an obvious beginning and
end the mean of 2.88 and standard deviation of .952, the job doesn‟t require me to do many
different things at work, using a variety of my skills and talents the mean value of 3.38 and
standard deviation of .987, the results of your job significantly affect the lives or well-being of
other people the mean of 3.75 and standard deviation .992 and finally freedom on your task is the
mean value of 3.69 and standard deviation of .649. The respondents responded as agree about the
job characteristics.

4.5. Inferential statistics analyzing factors that affect employee job performance

4.5.1. Diagnostics Test /Assumption/

4.5.2. Linearity test

When a regression is said to be linear, it signifies that the connection between the predictor
variables and the outcome variable is linear. In order to do a linear regression, the relationship
between independent and dependent variables must be a linear function since the predictor
variables in the regression have a straight line link with the outcome variable (Hayes, 2012).
With the help of SPSS software version 26, it is possible to verify the linear relationship between
the variables. According to the linearity assumption, the plot of the straight line makes a roughly
straight line.

34
 Source: own survey, 2024
Figure 2: Linearity Test
4.5.3. Normality test

When the data distributed it makes a curve, the curve doesn‟t pass through right or left rather
normally distributed. According to Gugrati (2007), the distribution is regularly distributed since
the mean residual is close to zero and its variance is close to one. As a result, the variance is
close to one (0.988) and the mean of the residual is nearly zero, indicating that the error term's
distribution is normally distributed.

35
 Source: survey, 2024
Figure 3: Normality test
4.5.4. Multicollinearity Test
When your predictor variables are significantly associated with each other, you get multi-
collinearity. Regression programs can compute variance inflations factor (VIF) for each
variable, and as a rule of thumb; VIF below 10 shows no Multi-collinearity test.

Table 10: collinearity Test

Coefficientsa
Collinearity Statistics
Model Tolerance VIF
1 Worklifebalance .830 1.205
Salaryfactors .495 2.019
Communication .554 1.804
Mission .543 1.842
Jobcharacter .353 2.836
a. Dependent Variable: Employeeperformance
Source; survey, 2024

36
In this study, the variance inflation factors values are 1.205, 2.019, 1.804, and 1.842 and 2.836.
As a result, there is no multi-collinearity symptom because the values of variance inflation factor
and tolerance were in the acceptable range (VIF, under 10 and Tolerance, 0.1 to 1.0). Based on
Gugrati, 2007 the variance inflation factors of the variable is below ten, there is no multi-
collinearity.

4.5.5. Homoscedasticity Test

The idea of Homoscedasticity, commonly referred to as homogeneity of variances, holds that

variations among different groups are comparable or equal (Gugrati, 2007). The variance of the
residual should be constant for each level of predictor variables. In SPSS, the researcher used a
scatter plot technique to compare the standardized residuals (ZRESID) to the standardized
predicted values (ZPRED).

Source: own survey, 2024

Figure 4: Test of Homoscedasticity test

37
 worklifebala Salaryfact Communica Jobcharact
nce ors tion mission er

4.5.6. Independent Test

Auto-correlation is an assumption that the errors are linearly independent of one another
(uncorrelated with one another). The popular Durbin- Watson test was used to determine whether
or not auto-correlation existed. Watson's determination about auto-correlation of the value is
approximately equal to 2; there is no problem with auto-correlation. This study has not the
problem of auto-correlation because the valve of Durbin-Watson is at a good level.

Table 11: Durbin Watson auto correlation test

Durbin-
Model Watson
1 1.83
Source: own survey, 2024

4.6. Correlation Analysis

To ascertain whether there is a meaningful correlation between the independent and dependent
variables in this study, Pearson's Product Moment Correlation Coefficient was used.
The study variables, specifically the work life balance, salary factors, communication factors, job
character factors, and mission factors, (independent variables), as well as the employee job
performance, which is the dependent variable, are explored through correlation analysis.

Table:
Table 12: correlation Analysis

38
Employee Pearson .352** .604** .619** .658** .694**
performance Correlation

Sig. (2-tailed) .000 .000 .000 .000 .000

N 215 215 215 215 215

Work Pearson 1 .328** .227** .353** .378**

lifebalance Correlation

Sig. (2-tailed) .000 .001 .000 .000

N 215 215 215 215 215

Salaryfactors Pearson .328** 1 .554** .549** .679**

Correlation

Sig. (2-tailed) .000 .000 .000 .000

N 215 215 215 215 215

Communicati Pearson .227** .554** 1 .461** .648**

on Correlation

Sig. (2-tailed) .001 .000 .000 .000

N 215 215 215 215 215

Mission Pearson .353** .549** .461** 1 .652**

Correlation

Sig. (2-tailed) .000 .000 .000 .000

N 215 215 215 215 215

jobcharacter Pearson .378** .679** .648** .652** 1

Correlation

Sig. (2-tailed) .000 .000 .000 .000

N 215 215 215 215 215

39
 .352** .604** .619** .658** .694**

Source: survey, 2024

The above table shows about the correlation of dependent and independent variables are
expressed in this manner.
According to McDanail and Gates (2006), the Pearson momentum product correlation analysis
value ranges describe the magnitude of the relationship as ±1 perfect, ±0.8 to ± 0.9 very strong, ±
0.5 to ± 0.8 strong, ± 0.3 to ± 0.5 moderate, ± 0.1 to ± 0.3 modest, and 0 to ± 0.1 weak. The
correlation matrix indicates that there was a positive relationship between work life balance,
salary factors, communication factors, job character factors, and mission factors, with the
performance of employees job which is β = .352** .604** .619** .658** and .694**
respectively.

The one correlation which is shown along the diagonal from the above table is the correlation
between the variable itself. Hence, the Pearson moment product correlation of work life balance
factors and employee job performance was r=.352**, p=.000). This revealed that the employee
job performance has a moderate relationship with work life balance factors.
The result showed that the correlation between salary factors and employee job performance has
a strong positive relationship and is significant at 0.01 levels, (r= .604**, p=.000). When leaders
stable and improve the performance of employee increases.

Regarding the, communication factors, like other factors have a positive relationship with the
performance of employees (r=.619**, p=.000). This means that, when the communication
problems are alleviated, minimized, and solve the performance of employee can increase. This
means that the communication factors increase positively (improvement), and the performance of
employee increases similarly.
Correlation coefficients demonstrate that there is a positive relationship between mission and
employee job performance. This means that the mission is guide line for employee activities and
improves their performance when r=658** and p-value of 0.001. Mission and employee job
performance has positive relationship with each other.

40
The correlation between the employee job performance and job character is strong and positive
when r=694** and p-value of 0.000, the correlation between the dependent and independent
factor is positive and strong.

4.7. Multiple Regression Model

Multiple linear regression analysis was employed to examine the effect of work life balance,
salary factors, communication factors, job character factors, and mission factors on the
performance employee. The effect of independent variables on the dependent variable is
expressed by regression analysis.
Table 13: model summary

Model Summaryb
Adjusted R Std. Error of
Model R R Square Square the Estimate
a
1 .780 .609 .600 .38066
a. Predictors: (Constant), jobcharacter, worklifebalance,
Communication, mission, Salaryfactors
b. Dependent Variable: Employeeperformance
Source: survey, 2024

According to the above table, sixty point nine (60.9%) of the problems are explained by the
explanatory variables,( work life balance, salary factors, communication factors, job character
factors, and mission factors) and the remaining (39.1%) are not explained by the explanatory
variables (under error term). According to the above table, coefficient determination explains the
change in the dependent variable can explain the change in independent variables or the
percentage of change in variation of employee job performance can be explained by independent
variables.

41
4.7.2. ANOVA
Table 14: ANOVA Result

ANOVAa
Sum of
Model Squares Df Mean Square F Sig.
1 Regression 47.193 5 9.439 65.136 .000b
Residual 30.285 209 .145
Total 77.478 214
a. Dependent Variable: Employeeperformance
b. Predictors: (Constant), jobcharacter, worklifebalance, Communication,
mission, Salaryfactors
Source: own survey, 2024
In ANOVA, from the above table, the F statistic must be used in combination with the p-value
when we are deciding whether the overall results are significant. The statistic is just comparing
the joint effect of all the variables together. The model is statistically significant and independent
factors jointly had a significant effect on the employee job performance. Since F- statistics was
65.136 with a p-value less than 0.05 (.000) and this indicates, that the model is statistically
significant and as a result, the model has contained a significant explanatory variable.

4.7.3. Model Coefficient

Table 15: Coefficientsa

Coefficientsa
Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta T Sig.
1 (Constant) .477 .187 2.544 .012
Worklifebalanc .049 .038 .061 1.294 .197
e
Salaryfactors .118 .058 .125 2.035 .043
Communicatio .228 .053 .248 4.271 .000
n
Mission .329 .063 .307 5.223 .000
Jobcharacter .185 .060 .226 3.097 .002
a. Dependent Variable: Employeeperformance
Source: survey, 2024

42
The above regression coefficient table contained five columns. The first column was about
independent variables, the second column was about un-standardize beta, the third column was
standardized beta, the fourth column the T- statistics, and the fifth one also about the exact p-
value in which the independent variables became statistically significant. In this study, researcher
used the unstandardized coefficients of beta to explain the magnitude of the relationship.
Because the variables effect cannot be ranked based scientific measurement of criteria about
variables,
Y=0.477β0+0.118X2+0.228X3+0.329X3+0.185X4 ………………ꜫ ----------------- or
Employee performance= .477β0+.118(sal) +.228(com) +0.329(mi) +.185(jc)
Where
β0 = constant term
sa= salary factors
jc = job character
Com= communication factors
Mi = mission factors

The above table demonstrates that salary factors, communication factors, mission factors and job
character factors are statistically significant influences on employee job performance. As a result,
there is an improvement in the salary between employees and organizations in the study region,
and as a result of this connection, the performance employee job altered by 11.8 percent from the
previous performance. On the other side, as communication issues are addressed and resolved,
employee job performance improves and increased by 22.8 percent.

When the job character of the organization improves the existing when the job was conducted,
correctly delivered to employees, and improved by the government and other interested agencies,
the performance of employee can increased by 18.5 percent and mission of the organization is
consistent with employee of the organization and the mission is consider the employees of the
organization, performance increased by 32.9 percent from the previous status.

43
4.8. Discussion and Hypothesis Testing

A correlation shows the strength or direction of the relationship between two or more variables.
Although correlation can be used to determine the link between independent and dependent
variables, it cannot demonstrate how the two variables interact. Although correlation between
variables demonstrates their association, it does not inevitably imply a cause-and-effect
connection. The following provides details on the hypothesis and comments based on the study's
findings.

H1: Salary factors have a significant effect on employee job performance in the study area.
According to unstandardized beta the improvement in finance can change the performance of the
employees in the study area Based on the finding of the study the salary of the company affect
employee job performance in the study area. The finding of the study is in line with (Azar &
Shafighi, 2013), stated that, attractive compensation or payment play a vital role in raising
employee productivity and performance. Since we have been told since the beginning of time
that we will eat from our sweat, one of the most important motivational factors is remuneration.

The capacity to support oneself through a payment or wage is the main incentive for accepting a
paid position and judges and Robbins (2017). They held the opinion that individuals ought to be
recognized for their achievements as successful team members through promotions, pay raises,
and other forms of reward. They made sure to underline that this doesn't mean that people's
contributions are ignored, but rather that they are balanced out by selfless actions taken for the
good of the group. They claimed that actions such as coaching younger teammates, imparting
knowledge to teammates, helping to settle disputes within the team, and picking up skills that the
team lacks should all be recognized. So, the hypothesis is supported.

H2: work life balance factors have a significant effect on employee job performance in the study
area, but not statistically significant in the study area. So, the hypothesis is not supported.

H3: Communication factors have a significant effect on employee job performance in the study
area. Based on unstandardized beta mission factor has significant effect on employee
innovativeness and has positive relationship. The p-value of the study was .000 which is less
than 0.05 that means statistically significant effect on employee performance.
44
The p-value of the study was 0.016 which is less than 0.05 that means statistically significant
effect on employee innovation. If motivation is provided by the organization employee
innovativeness can changed by 22.8%. or increased motivation employee innovativeness also
increase. The study finding is similar to (Mastel et al., 2015), Communication is described as
symbolic exchanges between organizations and their stakeholders while dealing with new goods,
services, and technologies The communication of performance, according to Zerfaß et al. (2004),
is the deliberately planned, implemented, and assessed communication of performance with the
intention of fostering empathy and trust in the job. Additionally, it aims to establish the business
as a leader in innovation. There are numerous purposes served by informing internal and external
stakeholders of creative performance or performance.

H4: Mission factors have a significant effect on employee job performance in the study area.

Based on unstandardized beta mission factor has significant effect on employee job performance
and has positive relationship. The p-value of the study was .000 which is less than 0.05 that
means statistically significant effect on employee performance. If mission is provided by the
organization employee job performance can changed by 32.9% or increased employee job
performance also increase.

The study is similar with, Forest and David 2003; mission reflects the values and beliefs of top
managers in an organization. It, therefore, all starts with the organizations leaders to define these
values and then help the employees discover how their personal values are validated when they
perform their jobs in accordance with the organizational values. And this alignment, asserts
Gordon (2018), will make personal and corporate values increase staff engagement. Therefore,
employees gain more fulfillments from their job and are motivated to work harder, bringing their
best to their work.

H5: Organizational justice has a significant effect on employee engagement in the study area.

With regard to organizational justice, at 5% level of significance, the regression at un

standardized coefficient is 0.000, its p value less than 0.05. This demonstrates that organizational
justice has a big impact on workers' performance. This study's conclusion was consistent with
that of (Colquitt et al., 2001). While procedural justice is concerned with the perceived fairness
45
of the methods and procedures used to decide how much and how to distribute resources, justice
is concerned with how one feels about the fairness of decision outcomes. Justice views are linked
to various organizational outcomes, including work satisfaction, commitment, citizenship
behavior, withdrawal, and performance. So, the hypothesis is supported.

46
 CHAPTER FIVE: MAJOR FINDING, CONCLUSION AND RECOMMONDATION

5.1. Finding of the Study

A total of 228 questionnaires were given to woldia city banking sector for this study. 215 of the
questionnaires were completed and returned, representing a 94.3% response rate.

The above table shown about the demographic characteristics of respondents, related to sex 162
(75. %) of respondents are male and 53(24.7) respondents are females. The findings of the study
shows majority of respondents are male in the study area. Concerning to age the majority of
respondents 26 (12.1%) were between the ages of 18-25 years, 92(42.8%) 26-33 years,
72(33.5%),33-41, 17(7.9%) from 42-49 and 8(3.7) of respondents are above 50 years. The
majority of the responders in this table are between the ages of 26-33 years.

Related to the marital status of respondents, 64(29.8%) of respondents are unmarried (single),
140(65.1%) respondents are married and the remaining 11(5.1%) respondents are
divorced/widowed. This shows that the majority of employees in the study area was are married.
And regarding to the educational background of respondents, 47(621.9%) of the employees are
diploma, 151 (70.2%) respondents are degree, 17(7.9%) of the respondent are master above it.
The study finding shows that majority of respondents are degree holders.

Regarding to the independent variables majority of respondents responded as all independent

factors except work life balance affect job performance in the study area.

The Pearson moment product correlation of work life balance factors and employee job
performance was r=.352**, p=.000), the correlation between salary factors and employee job
performance has a strong positive relationship and is significant at 0.01 levels, (r= .604**,
p=.000).
Regarding the, communication factors, like other factors have a positive relationship with the
performance of employees (r=.619**, p=.000). The correlation between the employee job
performance and job character is strong and positive when r=694** and p-value of 0.000, the
correlation between the dependent and independent factor is positive and strong.

47
5.2. Conclusions

The study was conducted in Woldia City to analyze the impact of organization culture on
employee job performance among Commercial Banks. Based on the findings of the study the
following conclusions are drawn. The study indicated that the performance of employees is
significantly affected by the work life balance, salary factors, communication factors, job
character factors, and mission factors in the study area.

Employee job performance is affected by salary factors. Salary factors affect the employee job
performance and hinder their operation properly in the study area. The salary factors have a
strong positive relationship and significant effect on the employee job performance in the study
area. It significantly hinders the competitiveness, task quality, and day to day activities.

Moreover, communication with co-workers is poor and little, communication between you and
your mangers is not good, and has low communication to share idea for innovation,
communication from other concerned bodies low to innovation hinder performance of
employees.

The research found that mission factors have significant effect on the performance of employees
in the study area. The mission that the organization has impact on employee job performance in
the study area due to unclear and fantasy mission of the organization, and the mission of the
organization in the study area can affect the employees task quality, employees work
specification and description.

Related to job characteristics would improve overall organizational performance and raise
employee engagement in relation to job characteristics within the company. The correlation
study's findings indicate that employee engagement and job characteristics have a positive and
moderate relationship.

48
5.3. Recommendations
Based on the major findings of the study, the following recommendations are forwarded with the
view to improve the contributions of employees to the country in general and the study area in
particular. Regarding salary factors the government and other concerned bodies should correct
and balance the payment of employees in order to increase performance of employees properly.
Government receives information from employees and responds appropriate responses to
employees about salary question.

Communication, banks should prioritize managers, employees, and customers having excellent
communication with one another. This is because god performance is the result of rational
information gathered from these sources managers, customers, and employees.

Concerning to Mission, the government as well as the other stake holders should clearly take out
the mission as well as objectives for employees. What employees expected to do for organization
success and what organization do for employee job performance encouragement. The mission
and objectives of the organization shouldn‟t be fantasy and unclear but it become clear, SMART
for employee job performance increasing and organization success.

Related to job character: - Because employees who are given jobs with high job characteristics
are more likely to respond with greater job performance, the administration should consider the
qualities of jobs they offer to employees and try to make the job have characteristics that enables
employees to do independently (autonomy), use the skills and talents of employees, and task
significance so that they can play their role in leading to employee job performance.

49
5.4. Future Direction of the Research

The future research line with attempt to the following basic things

To investigate technological, political and legal factors, organization structures, and other factors
of employee job performance.

Future research should better examine issues at the regional and national levels or including
Wollo, Gondar, and Bahir Dar cities.

5.5. Limitation of the Study

The limitation of the study arose from the scope of the study. This study focused on analyzing
factors that affect employee job performance in Woldia city only. So, the study does not focus on
all Ethiopian environments, all Amhara region environments and may not solve all country-level
and regional level problems. The study focused only on limited variables such as work life
balance, salary factors, communication factors, job character factors, and mission factors affect
the employee job performance. No, other factors were included in the study.

50
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 APPENDIXIES I: QUESTIONARRIES

WOLDIA UNIVERSITY

FACULTY OF BUSINESS AND ECNOMICS

DEPARTMENT OF MANAGEMENT

MASTER OF BUSINESS ADMNISTRATION

SECTION 1: INTRODUCTION

Dear respondent, Currently, I am undertaking a research entitled „The Effect of Organization

Culture on Employee Job Performance. You are one of the respondents selected to participate on
this study. Please assist me in giving correct and complete information to present a representative
finding on the current status of the factors affect employee innovativeness in the area.

I confirm you that the information that you share me will be kept confidential and only used for
the academic purpose. No individual‟s responses will be identified as such and the identity of
persons responding will not be published or released to anyone. All information will be used for
academic purposes only. Thank you in advance for your time devotion to me.

Sincerely,

Tesfa Worku

Phone: +251-910527569

Instructions

 No need of writing your name

 For statements and multiple choice questions indicate your answers with a check mark
(√) in the appropriate block.

55
SECTION 2: Background of Respondents

1. Age: 18-25 26-33 34-41 42-49

Over 50
2. Sex Male Female
3. Marital Status: Single Married Divorced/ Widowed
4. Educational level of respondents
Diploma Degree Master
5. What is your employer bank?

Academic staff Administrative staff

The impacts of organization culture on employee job performance are listed below. Please
indicate the degree to which these factors affecting employee job performance.

After you read each of the factors, evaluate them in relation to job performance and then put a
tick mark (√) under the choices below. Where,

5=Strongly Agree 4 = Agree,

3 = Neutral 2 = Disagree
1= Strongly Disagree.
1. Please indicate the degree to which you agree with the following statements concerning
salary.

Salary related questions 5 4 3 2 1

1. The salary your organization pay to is not enough

2. You are not satisfy by your salary

3. Your salary is low for idea conception and implementation to

increase performance

4. You got low reward when you do your additional job

5. You payment that your organization pay is little

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2. Please indicate the degree to which you agree with the following statements concerning work
life balance related factors

Work-life balance 5 4 3 2 1

1. Your personal life and work life is not balance

2. Your work life don‟t support employee to innovation.

3. Your work life and co-workers life is not balance

4. Your work place is not good for innovation.

5. Your work life balance gives little opportunity to
innovation and creativity
6.You have low work life balance for create new things

3. Please indicate the degree to which you agreement with the following statements concerning
communication related factors
Communication related questions 5 4 3 2 1

1. Your communication with co-workers is poor and little

2. The communication between you and your manger is not good.

3. You have low communication to share idea for innovation

4. Your communication from other concerned bodies low, leads to low

innovation
5. Your communication have less acceptance for innovation

4. Please indicate the degree to which you agree with the following statements concerning
mission of organization related factors

Mission related questions 5 4 3 2 1

1. Your organization mission is not comfort to

increase performance

57
 2. Your organization doesn‟t provide reward for
employee job performance.
3. There is no clear mission that gives meaning and
direction to your work.

4. There is no a long -term purpose and direction of

the company
5. You aren‟t continuously track your progress
against your stated goals
6. Your mission is not concern for employee but for
business

5. Please indicate the degree to which you agreement with the following statements
concerning job character related questions.

Job Characteristics 1 2 3 4 5

1. There is less autonomy in my job

2. Your job don‟t permit me to decide on my way how to go about

doing the work

3. Your job has not complete piece of work that has an obvious
beginning and end.

4. The job doesn‟t require me to do many different things at work,

using a variety of myskills and talents.

5. The results of your job significantly affect the lives or well-being of

other people
6. You have less freedom on your task

7. Please indicate the degree to which you agreement with the following statements
concerning employee job performance.

Employee job performance related questions 5 4 3 2 1

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1. Your rated the quality of your work in the last
performance excellent
2. You have a complete knowledge and understanding of
tasks.
3. You always reach your objective set (performance
target).

4. You review your performance continuously for

improvement.

59