LEAD STAR COLLEGE OF MANAGEMENT AND LEADERSHIP

FACULTY OF BUSSINESS AND LEADERSHIP

GRADUTE DEPARTMENT OF BUSINESS ADMINISTRATION

TERM PAPER ORGANIZATIONAL CULTURE AND EMPLOYE

MOTIVATION OF BANK OF ABYSSINIA

Course Name: Organizational Design, Development and Change

Management (MBAC-501)

CONDUCTED BY :- HAILU KEBEDE

ID NO DE/Gra/BA4097/09/3

DECEMBER 2017

Addis Ababa, Ethiopia

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Contents
ACKNOWLEDGMENT.................................................................................................................3

1.Back Ground of Bank of Abyssinia..............................................................................................4

2. Motivation/ Incentives, performance and satisfaction in Bank of Abyssinia..............................4

3. Organizational culture.................................................................................................................6

4. Work Environment in bank of Abyssinia....................................................................................8

5. Consequences of job dissatisfaction in Bank of Abyssinia.........................................................9

6. Solution for Bank of Abyssinia Management team...................................................................12

7. Conclusion/Summary................................................................................................................13

8. Recommendation.......................................................................................................................14

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ACKNOWLEDGMENT

First of all, I would like to thanks Lead Star University College for giving me this opportunity to
conduct term paper. I also want to thank all the people, who have given their support and
assistance to complete the study successfully. Bank of Abyssinia and Employees of Abyssinia
Bank provided me with enormous support and guidance for my term paper. I would also like to
thank my honorable HUMAN RESOURCCE DEPARTMENT HAED WEZARO MARTA
ZAWDIE and others officials of Abyssinia Bank who helped me and gave me their valuable
time, providing me with the most relevant information on the basis of which I have prepared this
report. I am thankful to all of them for helping and guiding me and for being nice and kind to me.
My thanks also belong to my friend, Taddesse Moreda (MSc), for her unreserved and devoted
effort to comment and edit my work and give direction to my work.

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1. Back Ground of Bank of Abyssinia
Bank of Abyssinia was established as per the intent of the new policy and the Ethiopian
investment code and it came into existence on February 15, 1996 according to the Commercial
Code of Ethiopia 1960, and the Licensing and Supervision of Banking Business Proclamation
No. 84/1994 with a subscribed capital of Birr 25 million, an authorized capital of Birr 50 million
and a paid-up capital of Birr 25 million (www.bankofabyssinia.com, Accessed on November,
2012). The vision of bank of Abyssinia is become the bank of choice for customers, employees
and shareholders. It committed to the following values: Putting customer first, Committed to
excellence, being honest and accountable, Working together as a team, Caring for our
community. This vision and value, of course, is indicative of the public confidence it enjoys and
of the fact that its customers are fully satisfied with the services it is providing them (Bank of
Abyssinia Annual Report, 2011).

Course Description:

Organizational behavior course provides a comprehensive analysis of individual and group

behavior in organizations. Its purpose is to provide an understanding of how organizations can be
managed more effectively and at the same time enhance the quality of employees work life.
Topics include motivation, rewarding behavior, stress, individual and group behavior, conflict,
power and politics, leadership, job design, organizational structure, decision-making,
communication and organizational change and development (Shonda A. Gibson, Ph.D. 2013).

2. Motivation/ Incentives, performance and satisfaction in Bank of Abyssinia

A motive is an impulse that causes a person to act. Motivation is an internal process that makes a
person move toward a goal. Motivation, like intelligence, can’t be directly observed. Instead,
motivation can only be inferred by noting a person’s behavior. Researcher has proposed theories
that try to explain human motivation. These theories include drive reduction theories and
Maslow’s hierarchy of needs theory.

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Drive Reduction Theories

Drive reduction theories of motivation suggest that people act in order to reduce needs and
maintain a constant physiological state. For example, people eat in order to reduce their need for
food. The idea of homeostasis is central to drive reduction theories. Homeostasis is the
maintenance of a state of physiological equilibrium.

Drive reduction theories fail to explain several aspects of motivation:

People sometimes aren’t motivated by internal needs. Example: Some people fast for long
periods for political causes, despite feeling extreme hunger. Sometimes, people continue being
motivated even when they have satisfied internal needs. Example: People sometimes eat even
when they don’t feel hungry. People are often motivated by external incentives as well as
internal needs. Example: If a person is hungry, he or she may choose to eat a salad rather than a
cheeseburger because he or she wants to be slimmer.

Intrinsic and Extrinsic Motivation

A motivation may be intrinsic, extrinsic, or both. Intrinsic motivation is the motivation to act for
the sake of the activity alone. For example, people have intrinsic motivation to write poetry if
they do it simply because they enjoy it. Extrinsic motivation, on the other hand, is the motivation
to act for external rewards. For example, people have extrinsic motivation to write if they do so
in the hopes of getting published, being famous, or making money.

Incentives:-An incentive is an environmental stimulus that pulls people to act in a particular way.
Getting an A on an exam may be an incentive that pulls a student toward studying.

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Maslow’s Hierarchy of Needs

In the 1970s, the psychologist Abraham Maslow suggested that people are motivated by
a hierarchy of needs:

First level: physiological needs, such as the need for food, water, safety, and security.

Second level: need for safety, such as Economic, social, vocational, etc

Third level: needs for social interaction, such as the need to belong.

Fourth level: needs for esteem (need for respect from oneself and others).

Fifth level: needs for self-actualization, or realizing one’s full potential. Maslow believed people
pay attention to higher needs only when lower needs are satisfied.

3. Organizational culture
Organizational culture encompasses values and behaviors that "contribute to the unique social
and psychological environment of an organization." According to Needle (2004), organizational
culture represents the collective values, beliefs and principles of organizational members and is a
product of such factors as history, product, market, technology, strategy, type of employees,
management style, and national culture; culture includes the organization's vision, values, norms,
systems, symbols, language, assumptions, beliefs, and habits. Rvasi and Schultz (2006) wrote
that organizational culture is a set of shared assumptions that guide what happens in
organizations by defining appropriate behavior for various situations. It is also the pattern of
such collective behaviors and assumptions that are taught to new organizational members as a
way of perceiving and, even, thinking and feeling. Thus, organizational culture affects the way
people and groups interact with each other, with clients, and with stakeholders. In addition,
organizational culture may affect how much employees identify with an organization.

Schein (1992), Deal and Kennedy (2000) and Kotter (1992) advanced the idea that organizations
often have very differing cultures as well as subcultures. Although a company may have its "own
unique culture", in larger organizations there are sometimes co-existing or conflicting
subcultures because each subculture is linked to a different management team. Some shocking
cultures of Bank of Abyssinia are mentioned as a below.

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  Language style

Cultural and language differences can hinder effective communication. Workers who are not
fluent in the primary language used in the workplace may have difficulty expressing their needs
or responding to requests from colleagues. If their job involves customer contact, they may have
difficulty understanding a customer inquiry and provide incorrect or misleading information. A
customer who is unable to clearly understand the worker due to a heavy accent or lack of
command of the language may become frustrated and take his business elsewhere.

Most of the time, Amharic is the moderate communication between the staff as well as
management team. This makes the employees who don’t know Amharic well were be
dissatisfied. Employees in this culture where little is expected are likely to procrastinate and take
short cuts when they do execute their work. The motivation to pay attention to flew. This
behavior illustrates a general poor performance that links back to the organizational culture.

 Policy of the bank

The bank has its own policy to guide employees, management team, and the customer. In bank
of Abyssinia, who newly joins the bank, he/she must work at least six month to get some benefit
such as, increment, bonus and staff loan. This lead the workers dissatisfied with the bank and
contribute to low organizational culture.

 Promotion

The degree to which companies offer personal and professional growth opportunities for
employees plays into the overall work environment. Opportunities to learn new skills, take on
new responsibilities, achieve higher compensation and gain new positions can allow employees
to set and work towards goals, conveying a sense of personal achievement that boosts employee
satisfaction. Employees rarely prefer to remain static in their careers for long. Rather, most
people continually look for opportunities to advance. Providing these opportunities can keep
your employee turnover levels under control, as employees stick with you for longer to achieve
their personal and career goals

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No employee wants to be stuck in a dead-end job, regardless of its compensation and benefits.
Because of this, many employees begin to look for work elsewhere when they realize they have
no promotion opportunities at their current position. Lack of advancement opportunities is the
most commonly cited reason employees begin to look for new jobs in the bank of Abyssinia.

Instead of give promotion for employees who are in the bank, they hiring another employee from
outside of the bank. This makes workers claiming lack of promotion potential leads them to seek
another job.

Employees fail to thrive in promotion that is neglectful in training and challenging its workers.
There is little opportunity for employees to excel as they become hold in a culture of
underachievement.

4. Work Environment in bank of Abyssinia

Work Environment in bank of Abyssinia regard to employee satisfaction, there must be a lot of
incentives should be consider and need to be full filled. As I workers of a company and I get
some information from other professionals in the bank of Abyssinia there are several gaps in
organization. Some of them are mentioned as the following.

 Management style

Different business owners and managers utilize different management styles. Managers can be
collaborative, working alongside subordinates to accomplish tasks. Managers can be facilitative,
stepping aside and making sure that employees always have the tools, materials and information
they need to do their jobs. Managers can also be coercive and overbearing, micro-managing
employees' every move. No single management style is better than another. The best
management style for any given situation depends on the nature of work being performed, and
the needs and preferences of employees doing the work. Fitting the right management style with
the right situation can increase employee satisfaction, keeping turnover rates low. But managers
style sometimes hinder the vision that the worker have to act friendly and supportive of workers
and there is no job satisfaction in this situation that create in the working environment job
dissatisfaction. In Bank of Abyssinia some manager’s apply the style that they bring from other

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organization that was not suitable or not significant for the bank. This leads the employees and
customer dissatisfied with management style and working environment.

The notion that poor-quality leadership or manager has negative effects for individuals is not
new. Poor leadership or manager also has been associated with increased levels of employee
stress (Offerman & Hellman, 1996) and retaliation (Townsend, Phillips, & Elkins,2000).
Ashforth (1997) found that when abusive supervisors used non con-tangent punishment,
employees felt a sense of helplessness and alienation from work. On and their own aggression
directed toward their supervisors. The stress of poor supervision also manifests in physical
outcomes

 Personal factor

Some workers in the Organization had their own problem, as I see and they told me there are
challenges of internal and external factors. Internal factors such as disagreement with manager
and other professional, management team cannot care about the problem occurred between them
as soon as possible. External factors such as lack of understanding between workers and the
customers may be occurred. In this case the bank take the problem was only arise on the side of
workers. The employee come to job by such mood create disturbing work environment.

 Lack of human resource at branch

As I Observed in Bank of Abyssinia, there are overloaded works for employees. Because there is
no enough human resource such as accountant, auditor, and there is one or two teller. Numerous
Obligations is conducted by a few staff. This was not necessarily put across all branches. Due to
this working environment-more comfortable environment over load employees and low
comfortable working environment lack enough workers.

5. Consequences of job dissatisfaction in Bank of Abyssinia

Motivating employees to complete their job duties at a satisfactory or better level can be
challenging. Staff members show motivation when they are self-inspired to perform tasks and
proud of their work product. Employees who do not have the drive to succeed company
adversely impact others in the workplace, which can directly affect the success of business.

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Dissatisfaction in the office environment, leading to no employee motivation, can cause negative
consequences.

From thus, result of dissatisfaction In Bank of Abyssinia briefly explained as the following:

 Poor Performance

Employees who are not motivated perform at a lower level than other workers. If there is no
excitement for the mission of the company, it can be difficult to maintain the momentum needed
to complete a project. Low productivity is a consequence of not being motivated and other
employees may feel that they must work harder to compensate for unfinished tasks. Tying in
company goals with employee objectives helps staff members to see the importance of their
positions. Encouragement helps employees know they are appreciated. However, poorly
performing employees can consume an inordinate amount of Bank business owner's time, and
dealing with late or unfinished projects can directly impact on earnings of Bank.

 Dissatisfaction

When one employee lacks motivation, it can bring down the morale of the entire office. Gossip
and complaining among the ranks can turn content employees against Supervisors.
Dissatisfaction with their jobs can spread, and Owners may find that their employees want to
quit. To avoid this scenario, talks to the unmotivated staff member as soon as company’s notice a
change in behavior. Reward employees who complete assigned duties on time to show that there
is no basis for job dissatisfaction at place of business.

 Poor Customer Service

Unmotivated employees may not have the energy or patience to deal with customers. If
employees are responsible for sales, order fulfillment, returns or handling complaints, they may
not adequately represent the company to the public. Consequences of no motivation can include
a lack of follow-through, not offering suitable explanations, no interest in satisfying requests or
being rude when customers complain.

 Decreased Revenue

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Employees should add value to the business, whether through increasing revenues or supporting
staff that produces income. When an employee is not motivated to do the job properly, it can
impact your bottom line. If employees do not produce enough work products to pay for their
positions, they become an expense instead of an asset. As a business owner, it's imperative to
financially justify jobs added to your workforce, such as balancing the cost of staff members
with the revenue their positions can generate. Employees with no motivation, who do not
complete assignments, may not help company keep pace with projected earnings.

 Tardiness

Tardiness is the habit of being late or delaying arrival. Being late as a form of misconduct may
be formally punishable in various arrangements, such as workplace, school, etc. An opposite
personality trait is punctuality.

 Employee turnover

In human resource context, turnover is the act of replacing an employee with a new employee.
Partings between organizations and employees may consist of termination, retirement, death,
interagency transfers, and resignations. An organization’s turnover is measured as a percentage
rate, which is referred to as its turnover rate. Turnover rate is the percentage of employees in a
workforce that leave during a certain period of time. Organizations and industries as a whole
measure their turnover rate during a fiscal or calendar year.

There are four types of turnovers: Voluntary is the first type of turnover, which occurs when an
employee voluntarily chooses to resign from the organization. Voluntary turnover could be the
result of a more appealing job offer, staff conflict, or lack of advancement opportunities.

The second type of turnover is Involuntary, which occurs when the employer makes the decision
to discharge an employee and the employee unwillingly leaves his or her position. Involuntary
turnover could be a result of poor performance, staff conflict, the at-will employment clause, etc.

The third type of turnover is Functional, which occurs when a low-performing employee leaves
the organization. Functional turnover reduces the amount of paperwork that a company must file
in order to rid itself of a low-performing employee. Rather than having to go through the

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potentially difficult process of proving that an employee is inadequate, the company simply
respects his or her own decision to leave.

The fourth type of turnover is Dysfunctional, which occurs when a high-performing employee
leaves the organization. Dysfunctional turnover can be potentially costly to an organization, and
could be the result of a more appealing job offer or lack of opportunities in career advancement.
Too much turnover is not only costly, but it can also give an organization a bad reputation.
However, there is also good turnover, which occurs when an organization finds a better fit with a
new employee in a certain position. Good turnover can also transpire when an employee has
outgrown opportunities within a certain organization and must move forward with his or her
career in a new organization

If an employer is said to have a high turnover rate relative to its competitors, it means that
employees of that company have a shorter average tenure than those of other companies in the
same industry. High turnover may be harmful to a company's productivity if skilled workers are
often leaving and the worker population contains a high percentage of novices. Companies will
often track turnover internally across departments, divisions, or other demographic groups, such
as turnover of women versus men.

6. Solution for Bank of Abyssinia Management team

 Reward employees who complete assigned duties on time to show that there is no basis
for job dissatisfaction at place of business.
 Tying in company goals with employee objectives helps staff members to see the
importance of their positions. Encouragement helps employees know they are
appreciated.
 Company should have tried to reduce employee turnover rates by offering additional
benefits such as house allowance.
 It is important for the entire company to know that employees are an integral part of the
company's success.
 Empower and trust your co-workers to make the right decisions. The benefits of trusting
and empowering others far outweigh the fear that mistakes will be made.

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  The most important thing in the company culture is to listen to those who are a part of it,
whether that be administering a company survey or just asking someone how their day is
going.
 Setting the right compensation and benefits is important too. Work with human resources
to get current data on industry pay packages, and get creative when necessary with
benefits, flexible work schedules.
 Review compensation and benefits packages at least annually. Pay attention to trends in
the marketplace and have HR update you.
 Pay attention to employees’ personal needs and offer more flexibility where you can.
Consider offering telecommuting, compressed schedules or on-site or back-up day care.
 Employees need social interaction and a rewarding work environment. They need
respect and recognition from managers, and a challenging position with room to learn and
move up.
 Managers often overlook how important a positive work environment is for staffers, and
how far meaningful recognition and praise from managers can go to achieve that.
Awards, recognition and praise might just be the single most cost-effective way to
maintain a happy, productive work force.

7. Conclusion/Summary
This term paper conducted on Bank of Abyssinia; organizational behavior I try to discover the
impact of organizational culture, employee motivation, and working environment that has an
impact on its employee’s behavior also explained under consequences of Job dissatisfaction.
How motivation incentives tool implements by the company. For the problems mentioned I
suggested and set recommendable solution in the paper.

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8. Recommendation
I suggest that the impact of such behaviors is exaggerated by the position of the perpetrator. That
is, aggressive acts by supervisor’s might have more deleterious effects on employee outcomes
than do similar acts com-mitted by members of the public or other coworkers. Although we
know of no data that directly test this suggestion, indirect support emerges from several sources.

Second, I suggest that policy of the bank may be a “root cause” that gives rise to other well-
documented workplace stressors. In this sense, I suggest that existing models of organizational
stress are deficient in their lack of consideration of organizational context;

The Bank should give promotion for employees as it is the element of context that needs to be
considered in understanding organizational stressors.

Finally, I recommend that, the bank should have to assign the necessarily human resource
through all branches equally. I suggest that lack of human resource may serve to over load the
work for individuals and deny access to social support and thereby exacerbate the negative
effects of workplace stressors.

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 Reference

Pires, M. (2009).9 Steps to Reducing Employee Turnover. Retrieved November 04, 2012, from
Articles Base: http://www.articlesbase.com/human-resources-articles/9-steps-to-reducing-
employee-turnover-747936.html Quarterly report (2011/2012).Bank of Abyssinia
Management and Organizational Behavior COURSE SYLLABUS: SPRING 2013 Instructor:
Shonda A. Gibson, Ph.D.

http://www.sparknotes.com/psychology/psych101/motivation/section1/page/2/

ORGANIZATIONAL BEHAVIOR CONCEPTS CONTROVERSIES APPLICATIONS Seventh

Edition Stephen P. Robbins 1996

Needle, David (2004). Business in Context: An Introduction to Business and Its Environment.

Ravasi, D.; Schultz, M. (2006)."Responding to organizational identity threats: Exploring the

role of organizational culture". Academy of Management Journal 49 (3): 433–458.

Kotter, J. P.; Heskett, James L. (1992).Corporate Culture and Performance. New York: The
Free Press

Deal T. E. and Kennedy, A. A. (1982, 2000) Corporate Cultures: The Rites and Rituals of
Corporate Life, Harmondsworth, Penguin Books, 1982; reissue Perseus Books, 2000

Roland, Brian, AbenityPresident & CEO (May 4, 2012). "Hot Topic: Why Is Employee Wellness
Important?".Abenity.Retrieved October 29, 2013.

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