The Effects of Organizational Hierarchy, Culture and Organizational Climate on Organizational Commitment in Banking Sector of Azerbaijan
Date Issued
2022-05-15
Author(s)
Mammadova, Fidan
Abstract
Organizational commitment enables employees to form an identity unity with the organization,
establish long-term relationships, adopt the goals of the organization and work with enthusiasm,
and encourage employees to exhibit the desired behaviors towards the goals of the organization.
The high level of organizational commitment of the employees leads to many positive results such
as the decrease in the rate of turnover in the organization, the increase in the performance of the
employees, and the greater participation of the employees in the beneficial activities within the
organization. Considering direct contributions of banking sector to the country's economy, the
efficiency, productivity and profitability of the banking sector and employees in the banking sector
is a very important issue for Azerbaijan, and in this context, it is thought that it is very important
to examine the Azerbaijani banking sector in terms of organizational culture, climate, and
commitment in the research.
The subject of the thesis is determined as the impact of organizational hierarchy culture and
organizational climate on organizational commitment in employees. Based on various studies on
organizational commitment, within the scope of this study, the concept of organizational
commitment was discussed in three sub-dimensions as an emotional, continuance, and normative
commitment within the framework of Meyer and Allen's (1997) approach. The hypotheses
developed later in the research were examined by simple linear regression analysis. Within the
framework of the hypotheses, first of all, the effects of organizational culture and then
organizational climate on organizational commitment and its sub-dimensions are discussed. As a
data collection tool, survey application was carried out between 01/03/2022 – 20/04/2022. The
survey application was filled in digitally distributing the questionnaire to the individuals employed
in the Banking Sector in Azerbaijan.
6 hypotheses out 7 were justified as a result of bivariate regression analysis, and it was concluded
that organizational culture perceptions of the employees are "strong", organizational climate
perceptions are "positive" and organizational commitment levels are "high". The type of
commitment that employees have the most is continuance commitment.
establish long-term relationships, adopt the goals of the organization and work with enthusiasm,
and encourage employees to exhibit the desired behaviors towards the goals of the organization.
The high level of organizational commitment of the employees leads to many positive results such
as the decrease in the rate of turnover in the organization, the increase in the performance of the
employees, and the greater participation of the employees in the beneficial activities within the
organization. Considering direct contributions of banking sector to the country's economy, the
efficiency, productivity and profitability of the banking sector and employees in the banking sector
is a very important issue for Azerbaijan, and in this context, it is thought that it is very important
to examine the Azerbaijani banking sector in terms of organizational culture, climate, and
commitment in the research.
The subject of the thesis is determined as the impact of organizational hierarchy culture and
organizational climate on organizational commitment in employees. Based on various studies on
organizational commitment, within the scope of this study, the concept of organizational
commitment was discussed in three sub-dimensions as an emotional, continuance, and normative
commitment within the framework of Meyer and Allen's (1997) approach. The hypotheses
developed later in the research were examined by simple linear regression analysis. Within the
framework of the hypotheses, first of all, the effects of organizational culture and then
organizational climate on organizational commitment and its sub-dimensions are discussed. As a
data collection tool, survey application was carried out between 01/03/2022 – 20/04/2022. The
survey application was filled in digitally distributing the questionnaire to the individuals employed
in the Banking Sector in Azerbaijan.
6 hypotheses out 7 were justified as a result of bivariate regression analysis, and it was concluded
that organizational culture perceptions of the employees are "strong", organizational climate
perceptions are "positive" and organizational commitment levels are "high". The type of
commitment that employees have the most is continuance commitment.