Final Aynalem Dagne Thesis

ST.
MARY’S UNIVERSITY
SCHOOL OF GRADUATE
STUDIES MBA PROGRAM
THE EFFECT OF WORKING ENVIRONMENT ON

EMPLOYEES’ COMMITMENT AT DEVELOPMENT BANK
OF ETHIOPIA
BY:
AYNALEM DAGNE
JUNE, 2018
ADDIS ABABA, ETHIOPIA

THE EFFECT OF WORKING ENVIRONMENT ON EMPLOYEES’
COMMITMENT AT DEVELOPMENT BANK OF ETHIOPIA
BY:
AYNALEM DAGNE
ID SGS/0200/2009A
A THESIS SUBMITTED TO ST.MARY’S UNIVERSITY, SCHOOL OF
GRADUATE STUDIES IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS
ADMINISTRATION
JUNE, 2018
ADDIS ABABA, ETHIOPIA
i
ST. MARY’S UNIVERSITY
SCHOOL OF GRADUATE
STUDIES
THE EFFECT OF WORKING ENVIRONMENT ON EMPLOYEES’

COMMITMENT AT DEVELOPMENT BANK OF ETHIOPIA
BY:
AYNALEM DAGNE
APPROVED BY BOAORD OF EXAMINERS
Dean, Graduate studies Signature & date
Advisor Signature & date
Internal Examiner Signature &date
External Examiner Signature &date

Table of Contents
ACKNOWLEDGEMENTS...................................................................................................................v
LIST OF ABBREVIATIONS/ACRONYMS.........................................................................................vi
LIST OF TABLES..............................................................................................................................vii
LIST OF FIGURES............................................................................................................................viii
ABSTRACT.........................................................................................................................................ix
CHAPTER ONE INTRODUCTION...................................................................................................1
1.1.Background of the Study.................................................................................................................1
1.2 Statement of the problem..............................................................................................................3
1.3 Research Questions.......................................................................................................................4
1.4 Objectives of the study.................................................................................................................5
1.4.1. General Objective.....................................................................................................................5
1.4.2. Specific Objectives...................................................................................................................5
1.5 Research Hypothesis.....................................................................................................................5
1.6 Definition of Terms......................................................................................................................6
1.7 Scope of the study.........................................................................................................................6
1.8 Significance of the Study..............................................................................................................6
1.9 Organization of the Study.............................................................................................................7
CHAPTER TWO REVIEW OF RELATED LITERATURE..............................................................8
2.1 Theoretical Literature...................................................................................................................8
2.1.1 Concepts of working environment.............................................................................................8
2.1.2 Components of working environment........................................................................................9
2.2 Characteristics of working environment.......................................................................................9
2.3 Empirical Literature Review.......................................................................................................10
2.3.1 Work Environment Factor Affecting Employees’ Commitment.................................................10
2.3.1.1 Physical Factors of the Workplace Environment..................................................................10
2.3.1.2 Psychosocial Factors Affecting Employees’ Performance....................................................13
2.3.1.3 Work Life Balance................................................................................................................14
2.4 Employees Commitment.............................................................................................................14
2.4.1 Affective Organizational commitment of employees...............................................................15
2.4.2 Continuance Organizational Commitment of employees.........................................................15
2.4.3 Normative Organizational commitment of employees.............................................................16
2.5 Work environment and employees’ commitment.......................................................................16
2.6 Conceptual Framework of the Study...........................................................................................18
CHAPTER THREE RESEARCH DESIGN AND METHODOLOGY.............................................19
3.1 Study area......................................................................................................................................19
3.2 Research Design............................................................................................................................19
3.3 Population and sampling techniques..............................................................................................20
3.4 Sample size Determination............................................................................................................21
3.5 Data source and collection technique.............................................................................................22
3.5.1 Source of Data Collection...........................................................................................................22
3.5.2 Procedures of Data Collection....................................................................................................23
3.6 Methods of Data Analysis and Presentation..................................................................................23
3.7 Reliability and Validity of Instruments..........................................................................................23
3.7.1 Reliability...................................................................................................................................23
3.7.2 Validity of Instruments...............................................................................................................24
3.7.3 Ethical Considerations................................................................................................................25
CHAPTER FOUR DATA ANALYSIS AND INTERPRETATION.................................................26
4.1. Demographic Characteristics of Respondents...............................................................................26
4.2. Analysis of Collected Data...........................................................................................................29
4.2.1. Descriptive Analysis..................................................................................................................29
4.3 Inferential Statistics.......................................................................................................................41
4.3.1 Correlation analysis....................................................................................................................41
4.3.2 Multiple Regression Analysis.....................................................................................................42
4.3.2.1. Assumptions of Multiple Regression analysis........................................................................42
4.3.2.2 Regression Analysis Results....................................................................................................44
4.4Analysis of Data Collected Through Interview...............................................................................48
CHAPTER FIVE FINDINGS, CONCLUSIONS AND RECOMMENDATIONS...........................49
5.1. Summary of Major Findings.........................................................................................................49
5.2. Conclusions..................................................................................................................................51
5.3. Recommendations........................................................................................................................52
5.4. Implications to Further Research..................................................................................................53
References...........................................................................................................................................54
Appendix-A: Questionnaire Distributed to Respondents (Employees)................................................59
Appendix-B: Interview Check List......................................................................................................65
Appendix-C: Statistical results............................................................................................................66
ACKNOWLEDGEMENTS
At first I would like to thank almighty God for all the wonderful things that happened in my
life and for all the blessing that kept me moving forward. Then I would like to thank the
mother of Jesus St. Maryam always believes in you.
First and foremost, my sincere gratitude goes to my advisor Terefe Feyera (PHD) who has
been willing to devote his precious time in giving unlimited support since the conception of
the proposed study till final research thesis.
I would also like to extend my gratitude to all my co-workers and staff members’ of
Development bank of Ethiopia Head office.
Finally, I express my very profound gratitude to all my families for providing me with
reliable support and continuous encouragement throughout all my life and my years of study.
LIST OF ABBREVIATIONS/ACRONYMS
DBE: Development Bank of Ethiopia
SPSS: Statistical Package for Social Science

LIST OF TABLES
Table 3.1:Population and Sampling Techniques....................................................................211

Table 3.2: Reliability test on Cronbach’s alpha.......................................................................24
Table 4.1: Demographic information of respondents.............................................................277
Table 4.2: Perception of employees about the convenience of physical workplace................30
Table 4.3: Perception of employees about the convenience of psychosocial workplace .Error!
Bookmark not defined.32
Table 4.4: Perception of employees about work life balance..................................................35
Table 4.5: Overall Perception of employees on theworking environment...............................37
Table 4.6: Employees self rating their commitment level.......................................................39
Table 4.7: Measure of association and descriptive adjectives Measure of Association..........41
Table 4.8 Correlation matrix between Employees Commitment and working environment
factorss.....................................................................................................................................39
Table 4.9 The Assumption of Multicollinearity.......................................................................43
b.....................................................................................................................................................
Table 4.10 Model Summary 44
Table 4.11 ANOVAa...............................................................................................................44
Table 4.12 Coefficientsa..........................................................................................................45
LIST OF FIGURES
Figure1.1 Conceptual Framework Model: Researcher........................................................ 18
Figure 4.1 Test of Normality Assumption..............................................................................66
Figure 4.2 Test of Homoscedasticity Assumption..................................................................66

ABSTRACT
The key goal of the research was to study the effects of the working climate on the engagement of workers in the
textile industry. The thesis carried out explanatory and comprehensive research designs to define and assess the
interaction of the working climate and the engagement of employees. Quantitative and qualitative methods were
used to gather data using a questionnaire and interviews. Six operating units of the textile unit intentionally picked
the respondents. A total of 238 participants attended the study. Main and secondary data were used to determine
the effects of the study. The SPSS 23 was used to run the data analysis. The data obtained were evaluated by
informative and inferential review of statistics. Based on the study, the researcher concludes that the physical job
climate, the psychosocial working environment and the work life balance have important and beneficial impacts on
the engagement of the workers in each working environment. The study proposed that the Bank function
proactively with participating workers, generating favorable employee understanding through the development of
a convenient working atmosphere. For the effective execution of the working climate, it should be one of the Bank's
policies and should provide a philosophy of direction, a psychological workplace, a working-life balance.
Constant contact between senior managers and all textile employees should also be developed to recognize the
understanding of employees and develop loyalty and value for jobs, and to achieve the strategic objective of the
textile industry.
Key words: Development Bank of Ethiopia, Working Environment, Employees Commitment

CHAPTER ONE
INTRODUCTION
1.1. Background of the Study

The definition of a work atmosphere encompasses broad principles that characterise a working situation,
including the physical, psychological and social dimensions. The workplace climate has both beneficial
and detrimental impacts on employee psychology and wellbeing. It has also explained how people
function in the environment. It includes a broad variety of physical environments (e.g. noise, machinery,
heat, etc.), general market characteristics (e.g. work load, mission, difficulty, for example) and also
additional business context (e.g. manufacturing set up, interaction with employees) (Jain &Kaur 2014).
(Jain &Kaur 2014). However, all facets of the work atmosphere are similarly important or certainly
sufficient if workplace satisfaction is taken into consideration and influences employee well-being (Jain
&Kaur 2014).
As societal fact and social expectation, a huge part of human life is expended on jobs that appears to be
verified by guy. Even men have never been happy with the just economic motivation. It is still more
important to know why men work and how happy with the job at which stage (Khalid &Irshad, 2010).
The workplace atmosphere of a company plays an important part. The workplace climate has a positive
and negative effect on employee trust, productivity and dedication. Much of the time job issues contribute
specifically or implicitly to workplaces. The efficiency degree can be improved by creating an optimal
organizational working atmosphere (Sharma & Lakshmi 2016).
Environment is all the factors that influence individuals in their environment over their lifetimes and
regarded as environment. The working climate implies the environment in which individuals function
together to accomplish the aim of the organization. They involve procedures, programmes, procedures,
resources and all that communicates with workers and affects employee efficiency in positive and
unconstructive ways. It also specified the position to complete a mission (Sharma & Lakshmi 2016).
Employment in financial firms is becoming highly difficult. A banking career is now a demanding job. A
behavioral workout bundle is involved when operating in a bank.
For the attraction and retention of valuable consumers and for the consistency of representation of
consumer services, reliability and core competences are created. These reasons are explicitly and
indirectly linked to work satisfaction and it is crucial for workers to aspire to produce the highest
potential outcomes in the company. According to Sharma and Lakshmi (2016), a productive work
atmosphere plays a key role in keeping workers cool and contending that the aim is created in order for
employees to improve their workplace architecture in the most efficient way possible.
The determination of workers to accomplish corporate achievements is focused (Mechanic

(2014). Individuals with poor dedication can do enough to interact with them or to do as they
intend. They don't put their core on the organization's job and purpose. They tend to rely
more on private achievements than on the success of the entire company. People with no
commitment are more prone to view themselves as strangers rather than as long-term
participants of the company. A striking work opportunity elsewhere would potentially
contribute to their exit. In the other hand, workers who are strongly dedicated to an
organisation consider themselves as an integral part of the organization. Anything that affects
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the company is indeed an immediate risk. These workers are creatively interested with the
ideals and vision of the organization and continually thought about ways of developing their
work. The Institute has dedicated human capital as though the company belonged to them.
1.2 Statement of the problem
The impact of the working climate is linked in positive and negative ways to the morality, efficiency and
loyalty of employees. Amount of businesses run in an insecure and hazardous workplace environment.
This comprises of improperly constructed workstations, incompatible appliances, lack of ventilation,
insufficient lights, too much noise, ineffective fire protection precautions and lack of personal protective
equipment. Employees in this setting are impacted by work-related issues which represent the success of
the employee. As a consequence, productivity is decreased due to workplace difficulties (Chandrasekar,
2011). The excellence of the working climate of the employee has an effect on their morale and
efficiency. The way the organization is linked, in particular with its immediate environment, affects their
errors, the stage of creativity and group effort with other workers, their absence and, finally, their
duration of work. Developing a healthy working climate is crucial to improve enterprise, company or
small business income. The interaction between job, its climate and office resources becomes an integral
part of the work. The supervision of the degree to which workforce efficiency is used appropriately core
to two essential areas of focus: personal motivation and work climate infrastructure (Chandrasekar,
2011).
As described in Bushiri(2014)in Noble(2009) more focus should be given to understanding and managing
the work atmosphere since they often have persistent stress because workers have negative views of the
environment. Opperman(2002) and Bushiri(2014) claimed that the working atmosphere is related to all
procedures, frameworks, mechanisms, resources and places of work which favorably or unfavorably
affect the output of individuals. The workplace requires rules, laws, history, money,
Working ties, place of employment, internal and external influences that all affect the way workers do
their jobs.
The research were undertaken to analyses the effects of the working climate on the employees' engagement in other countries
and Pakistan by numerous public and private organizations. There are however, few research carried out separately at sector
level to define and quantify the impact of the work climate on the engagement of employees. Such a research offers a sense of
adequately developed and organized alternatives in the working atmosphere to increase the degree of environmental
friendliness of the company towards maximum participation of its workers and bring about sustainable growth. Therefore, the
purpose of this research was to study the effects of the working climate on the determination of managers in the textile
industry.
The basic goal of examining this interaction of results is to forward results to the company to analyse how
its management, to maintain the highest degree of commitment, establish a healthy work climate for
workers and minimize the influence of the operating environment to meet the strategic goals of the
organization. In addition, this analysis would have an insight for the textile sector, others, the next
scientists in the same field and will largely fill the gap in science in the rest of the UAE manufacturing
industry, which has similar problems.
1.3 Research Questions

The study has following research questions:
1. What is the employees perception the workplace environment?
2. What is the employees level of commitment with organization?
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3. What is the effect of workplace physical effect on commitment level of employees?
4. What the impact of work life balance on the employee’s organizational commitment?
12
1.4 Research Objectives
The study has the following research objectives:
The general objective of the study was to investigate the effect of working environment on
employee’s commitment.
1.4.1. Specific Objectives
The specific objectives of the study were:
1. To assess the perception of employees on working environment
2. To identify the level of employee commitment on the workplace
3. To assess the effect of physical workplace on the commitment of employees.
4. To examine the psychosocial workplace effect on employees’ Commitment.
5. To analyse the influence of work life balance on employees’ performance.
1.5 Research Hypothesis
This study has tested the following research hypothesis:
Hypothesis 1: Working environment of the organization have statistically significant effect

on employees’ commitment in the bank.
Hypothesis 2: There is positive relationship between physical work environment,

psychosocial work environment and work life balance and employees commitment
Hypothesis 3: Physical work environment, psychosocial work environment and work life
balance significantly explain the variance in employee job commitment in the bank.
1.6 Definition of Terms
Work Environment: - is the sum of the interrelationship that exists among the employees
and the employers and the environment in which the employees work (Opperman, 2002).
Employees’ Commitment: -a force that binds an individual to a target (social or non-social)

and to a course of action of relevance to that target (Meyer, Becker, & Van Dick, 2006).
1.7 Scope of the study

This study assess how working environment affect employee commitment in Development
Bank of Ethiopia in Head office. The reason why the study only emphasis on the
Development Bank of Ethiopia Head Office is that, it has the number of employees and
number of branches distributed through the country and it’s difficult to consider all branches
due to time, money and other constraints. In the head office there are six work units which all
are considered in this study. In addition the study focuses on general commitment level of
employees it doesn’t specify the commitment type and study on it because it require detail
consideration by employees about each types and it require time.
1.8 Significance of the Study
It is common that each organization had created and implemented different sets of working
environment that drive to better performance for the organization. The Working
environments that are practiced may lead the organization to positively success among
competitors or negatively loser among compotators.
In this regard, the output of this research helps the management bodies of the organization to
understand the effect of working environment on the employees’ commitment. Furthermore,
the output of this research also helps to show whether working environment has affect
employee commitment and performance or not. It was also serve as reference document for
other scholars as a base for undertaking further research in working environment area.
1.9 Organization of the Study
The research paper organized as follows: Chapter one deals with background of the study,
statement of the problem, objectives of the study, research questions, scope of the study and
significance of the study. Chapter two deals with Review of related Literature; Chapter three
deals with the research methodology contains study area, research design, population of the
study, sampling technique, data source and collection techniques and data analysis and
presentation. Chapter four deals with contain analysis of main findings encountered using
tables with a commentary on the data found and their discussion in detail. Chapter five covers
summary, conclusion, recommendation and Limitations of the Study and Implications to Further
Research.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 Theoretical Literature
2.1.1 Concepts of working environment

The work environment can implicate the social relation at workplace and also maintain the
relationship between colleague, supervisor and the organization. It describes the nearest
conditions in which human resources are working collectively. A contented, pleased and
diligent employee is main asset of any organization. Successful outcome and efficiency for
any organization is link and depend on the level of satisfaction and commitment of
employees and their environment is one of the most key factors which manipulate the
contentment & inspiration level of employees (Jain and Kaur 2014).
Work environment means settings, situations, conditions and circumstances under which
people work. It can also fatherly elaborated as a very broad category that encompasses the
physical setting (e.g. heat, equipments etc.), characteristics of the job itself (e.g. workload,
task complexity), broader organizational features (e.g. culture, history) and even aspects of
the extra organizational setting (e.g. local labour market conditions, industry sector, work-
home relationships). It means that work environment is the sum of the interrelationship that
exists among the employees and the employers and the environment in which the employees
work which includes the technical, the human and the organizational environment (Briner,
2000).
Work environment involves the physical geographical location as well as the immediate
surroundings of the work place. Typically, it involves other factors relating to the place of
employment, such as the quality of communication flows, secure environment, manageable
work load and other additional perks and benefit of employment. Onuka (2012) observed that
aside from the job scope itself, one factor that significantly influences employees’
commitment is the work environment. Accordingly, Ali and Zia (2010) noted that a positive
work environment makes employees’ feel good about coming to work and this provides the
motivation to sustain and increase productivity. Akintayo (2010) Posits that keeping
employee happy and productive requires frequent and open communication.
2.1.2 Components of working environment
Work environments have many properties, components or factors that may affect both
physical and psychological well-being of workers (Briner, 2000). How well employees
engage with factors in their working environments influences to a great extent their error rate,
level of innovation and collaboration with other employees, absenteeism and ultimately, how
long they stay in the job (Chandrasekar, 2011) which is a function of their commitment
towards work. Chandrasekar identified twelve factors in workplace environment which either
lead to engagement or disengagement of workers.
These factors include: goal-setting, performance feedback, role congruity, defined processes,
workplace incentives, supervisor support, mentoring/coaching, opportunity to apply new
skills, job aids, environmental factors, and physical factors. Thorough understanding of these
variables makes it palpable that they are identified along with many other factors, refined and
compressed into six factors by Kyko (2005). He identified six factors that have determinants
effects on whether workplace environment will be conducive or toxic. These factors are
Opaque management, Boss, Company policies, working conditions, Interpersonal
relationships and Pay.
2.2 Characteristics of working environment
According to Jain and Kaur 2014 working environment has four major characteristics these
characteristics concerned on communication, stability of work life, impartiality and
consistency.
• Apparent and Open Communication- it deal with the workforce sense that they are
fitting in the organization. However it is necessary for employees to conscious the
organization’s viewpoint, operation and standards.
• Stability of Work-Life reflect that some sort of equilibrium with the job and private
life. In all-purpose having the logic of balance will advance job satisfaction among
employees.
• Impartiality-Employees need to recognize that they are being fairly content

established on their presentation. Impartiality is the consequences of performance are
definite by the measure and superiority of the performance.
• Consistency- it deals with the predictability. Subordinates desire to be familiar with
how their administrator will act in response in a given situation. According to
management studies uniformity is a solitary most efficient set to found with your own
leadership.
2.3 Empirical Literature Review
2.3.1 Work Environment Factor Affecting Employees’ Commitment
Work environment plays an important role in an organization. As social reality and social
expectation a major part of man’s life is spent in work to which man seem to confirm. The
work place environment impacts employee confidence, efficiency and commitment both
positively and negatively. From number of factors in working environment that affect
employees commitment some are presents below:
2.3.1.1 Physical Factors of the Workplace Environment
The ability of the physical workplace environment to influence behaviours and to create an
image is particularly apparent for service businesses such as banks. The physical environment
includes components of the tangible workplace environment that comprise spatial layout and
functionality of the surroundings (Kohun, 2002). Spatial layout refers to the ways in which
machinery, equipment, and furnishings are arranged, the size and shape of those items, and
the spatial relationships among them. The spatial layout of furniture was found to influence
the amount and nature of conversation between individuals (Becker, 2002). Functionality
refers to the ability of the same items to facilitate performance and the accomplishment of
goals. How performance is achieved will be affected by how well people fit with their
physical workspace and physical work environment (Srivastava, 2008).
In a broader perspective, the physical workplace environment; include but not limited to the
comfort level, ventilation, heating, natural lighting and artificial lighting. According to
Temessek, (2009) the above features assist on the functional and aesthetic side, the décor, and
design of the workplace environment that ultimately helps improve the employees experience
and necessitate better performance. He emphasizes that banking services “must insist on the
utility and the role of environmental information, facilitating employees‟ engagement with
better space management, and the automation of certain tasks”. Similarly, if the tasks to be
performed are very complex, efficiency of layout and functionality will be more important
than when the tasks are mundane or simple.
Office layout and design impressions suggest that certain dimension serves a symbolic
function by connoting meanings and images about organizations and further how their
employees are to be engaged (Challenger, 2000). Based on these affordances, it is suggested
that employees will tend to identify more with these features which enhance performance.
Informal seating arrangements, such as chairs placed at a right angle facilitate social
interaction, whereas formal seating arrangements, such as chairs placed back-to-back
discourage social interaction (Doman, 2008). This also helps explain how style of furnishings
and other physical symbols may come to serve a symbolic function.
There are many different physical aspects that are important to the employees’ wellbeing
support their work and provide privacy and flexibility for different tasks. These physical
aspects should be taking into consider when offering that environment that is best for the
users (Rantanen 2013).
2.3.1.1.1 Ergonomics
Ergonomics are the biggest part of physical working environment and it has an affect no
matter what you do and where you are. Ergonomics can be categorized as functional comfort
that can be measured and established if it is working or failing. By having functionally
uncomfortable workspaces, energy will be taken out of the workers productivity and
consequently out of the work at hand. In the workspace the ergonomic support should be for
all office tasks and it should be adaptable and supportive to the users (Vischer, 2007).
Ergonomics are linked to the well-being and to the workers’ health. All aspects of the
physical working environment can effect on stress and job performance. Furniture together
with equipment should be ergonomic to prevent and to preserve workers from long-term
muscular or nerve injury due to a low muscle use (Vischer, 2007).
2.3.1.1.2 Noise
In open-space and in multi-seat offices noise is one of primary reasons for discomfort and
reduced productivity (Vischer, 2007). When people work in a same space and have constant
collaboration and communication between each other, it can create extensive noise that may
bring annoyance between the employees’ (Lehto, &Salo 2014). Having more than two people
in one space, it is important to pay closer attention to the acoustics of the space. Different
kinds of offices may contain different sources of noise such as clatter from walking, typing
on the computer, telephone ringing, printing and people talking. To lower these types of noise
it may require a carefully made interior design plan that could keep noise levels down
(Rantanen 2013).
2.3.1.1.3 Lighting
As a factor, lighting can be seen as a basic need to the overall comfort of employees’ in a
work environment, making comfort as the basis for efficiency. (Lehto,&Salo 2014).
Especially, day lighting was linked to increased comfort and productivity and also with a
view out and having control over blinds (Vischer, 2007). Boosting workers’ productivity
through a workstation with natural light or artwork on the wall is a known thing and it has a
great impact on a workers well-being. Also, having pleasant scenery outside the window can
make people feel better in their working environment and can give positive impact on well-
being (Balch, The Guardian 2016.)
Lighting could be a problem in open-plan offices where all employees’ needs and
requirements cannot be satisfied. If people get a choice they prefer natural daylight rather
than electric lighting, also, individual lighting control is a good way to have more satisfied
employees (Wand, 2009).
The adjustability of lighting was the third most important attribute in the ( Luoma, Niemi,
Rothe&Lindholm, 2010) preference study. It clearly means that workers really want to have
an effect on the physical working environment.
2.3.1.1.4 Air conditioning and temperature
Air-conditioning systems have been used in many parts of the world. The purpose of most
systems is to provide thermal comfort and an acceptable indoor air quality (IAQ) for
occupants. With the improvement of standard of living, occupants require more and more
comfortable and healthful indoor environment. People spend 80-90% of their time in-doors and
indoor environment has important effects on human health and work efficiency. The factors
affecting indoor environment mainly include temperature, humidity, air exchange rate, air
movement, ventilation, particle pollutants, biological pollutants, and gaseous pollutants
(Graudenz, Oliveira, Tribess, Mendes, Latorre and Kalil, 2005).
2.3.1.1.5 Sustainability
A workplace is a part of a natural environment and environmental issues have a significant

part in corporate social responsibility. The importance of environmental responsibility has
been very high, yet economical and social responsibility should get that needed attention too
(Vartiainen, Gersberg, Hyrkkänen, Kauttu, Nenonen, Palonen, Ruohomäki, Rasila, Sivunen and
Tuomela, 2006).
Sustainability in the companies can become a strategic issue by taking actions to improve the
performance of the current work facilities as a strategy for enhancing their environmental
actions. Financial consequences will be important part of the chosen feasible environmental
strategy. In Junnila and Nousiainen (2005) study was showing the relevance of sustainable
facility management in the environmental strategy inside the organization.
2.3.1.2 Psychosocial Factors Affecting Employees’ Performance
The psychosocial factor of work environment is generally considered to be one of the most
important issues in contemporary and future societies. They refer to the interactions between
the environment and working conditions, organizational conditions, functions and content of
the work, effort, workers‟ individual characteristics and those of members of their families
(Vischer, 2008). Therefore, the nature of the psychosocial factors is complex, covering issues
relating to the workers, general environment and work. Noe (2008) define employee
workplace welfare in terms of six key areas: a manageable workload; some personal control
over the job; support from colleagues and supervisors; positive relationships at work; a
reasonably clear role; and a sense of control or involvement in changes at the workplace.
Individual relationship with the working environment is important as they impact upon the
ability of the individual to take control of their work and the level of stress they experience
within the workplace (Warr, 2002). The behavioural factors that may affect the performance
of bank employees at work place are the exclusive nature and function of job satisfaction
change, or systematic development or weakening in job satisfaction over spell (Warr,
2002).There are lots of other aspects that may enhance or lower the employees‟ performance
some of which include role congruity, supervisor support and leadership styles in banks rank
among the factors that may individually and collectively effect on the performance of
employees.
2.3.1.3 Work Life Balance
Work-life balance is a combination of interactions among different areas of one’s employed

life, the pro and cons associated with the balance or imbalance can affect various levels of
employees required roles. Work-life balance is defined as “people spending sufficient time at
their jobs while also spending adequate time on other pursuits, such as family, friends, and
hobbies” (Smith, 2010). It is a reflection of the needs for all employees to balance their work
lives with their lives off the job, regardless of whether or not they have day-to-day family
responsibilities (Galinsky, Bond & Friedman, 1996).
Work-life balance has been defined by one researcher as satisfaction and good functioning at
work and at home with a minimum of role conflict (Clark, 2001), and by another as the
degree to which an individual is able to simultaneously balance the temporal, emotional, and
behavioural demands of both paid and family responsibilities (Hill, Hawkins, Ferris, &
Weitzman, 2001). The two measurable aspects of balance between work and family roles in
this study are work life conflict and extracurricular conflicts.
The inability of employees to achieve balance between the work and home domains can have
negative consequences for both the individual and the organization (Allan, Loudoun, &Peetz,
2007). Tausig and Fenwick (2001) measured perceived work-life balance using two items:
the extent to which workers feel successful in balancing work and personal life, and the
amount of conflict they face in balancing work and personal life. In response to this concern,
an increasing number of banks now offer extensive work-life benefit programs for their
employees. Work-life programs most commonly include factors such as flexible hours and
part-time work.
2.4 Employees Commitment
According to Akintayo (2010) employee commitment is the degree to which the employee
feels dedicated to their organization. Ongori (2007) furthermore defined as it is an effective
reaction to the whole organization and the extent of attachment or trustworthiness employees’
sense towards the organization. Zheng, (2010) define employee commitment as basically
employees’ outlook to organization. Its wide in its scope and the attitude encompasses
various components.
2.4.1 Affective Organizational commitment of employees
According to Meyer and Allen (1997), Affective organizational commitment refers to an

employee’s affection to, recognition with, and participation in the organization. An employee
who has a strong affective organizational commitment to an organization stays with the
organization because he or she needs to continue working in the organization. Committed
employees to an affective level stay with the organization because they view their personal
employment relationship as congruent to the goals and values of the organization (Beck and
Wilson, 2000).
Meyer and Allen (1997) found that the best forecaster of affective organizational
commitment was work experience. Employees whose work knowledge is steady with their
expectations and whose basic needs within the organization are satisfied have a stronger level
of affective commitment to the organization. Employees with strong affective commitment
stay with the organization because they have no wish to leave. Meyer (2001) reported that
affective commitment has been found to associate with a wide range of proceeds,
absenteeism, job performance, and organizational nationality behavior. The cost of affective
organizational commitment are lower earnings and turnover intentions, better on- the- job
behavior, and better employee health and wellbeing(Angel and Lawson,1994). Meyer and
Allen (1997) supplementary point toward that affective commitment is subjective by factors
such as job confront, position clearness, and objective clearness, and objective complexity,
receptivity by management, peer unity, fairness, private significance, criticism, contribution,
and reliability.
2.4.2 Continuance Organizational Commitment of employees
Continuance organizational commitment refers to the awareness of cost linked with the
departure from the organizations (Meyer and Allen, 1997). Employees with a strong
continuance organizational commitment know that leaving the organization may be harmful
to them fiscally due to the lack of employment option and a loss of savings. Kanter (1968)
also maintain this definition and states that it is the turnover linked with continued
involvement and a cost associated with parting the organization. Meyer and Allen (1991)
further state that workforce whose main relation to the organization is based on persistence
commitment stay behind because they require doing so.
Meyer et al. (1990) also maintain that accrued investments and poor employment alternatives
tend to force individual to maintain their line of action and are responsible for these individuals
being committed because they need to. Individuals stay in the organization because of the
investments they accumulate due to time spent in the organization, not because they want to.
2.4.3 Normative Organizational commitment of employees
Normative organizational commitment reflects an emotion of obligation to carry on

employment (Meyer and Allen, 1997). An employee with a strong normative organizational
commitment feels he or she has a moral obligation to stay in the organization (Meyer &Allen,
1990). The normative component is viewed as the commitment workforce believe morally
correct to continue in the company, in spite of how much position improvement or fulfilment
the firm gives him or her over the years (Marsh and Mannari, 1977).
According to Schneider (2003), normative organizational commitment is the ethical

obligation the employee develops after the organization has spent on him or her. He argued
that when an employee starts to sense that the organization has spent either too much time or
money developing and training him or her, such an employee might feel a compulsion to stay
with the organization. Normative organizational commitment is most likely when individuals
find it difficult to give return the organization’s investment in them. Moreover, Meyer and
Allen (1997) use the tri-dimensional model to conceptualize organizational commitment in
three dimensions namely, affective, continuance, and normative commitments. Allen and
Meyer (1996) urged researchers to investigate the dimensionality of organizational
commitment across cultures to discern if multidimensional conceptualizations developed in
the US are applicable to other cultures or not. According to Meyer and Allen (1997), the
models of commitment have been developed and tested in western countries.
2.5 Work environment and employees’ commitment
Commitment to the organization, profession and role has received wide attention in recent
organizational behaviour literature (Buchanan, 1974). Becker (1960) argues that commitment
involves consistent lines of activity in behaviours that are produced by exchange
considerations. Commitment is a more active and positive orientation towards the
organization. It is an attitude or an orientation toward organizational goal or objectives.
Number of organizations has considered that the performance of their human resources plays
a vital role in determining the achievement of the organization. As such it is significant for
owners and leaders alike to understand how to obtain the greatest of their employees.
According to Awonusi (2004) one of the predecessor determinants of workers performance is
believed to be employees’ commitment. Akintayo (2010) shows that one of the stand
justifications why commitment has concerned research interest is that organizations worry on
committed employees to construct and keep competitive gain and achieve greater
performance.
Committed employees who are highly motivated in terms of suitable and appropriate work
environment put in their time and energy to the tracking down of organizational goals and are
progressively more recognized to be the most important asset offered to an organization
(Heinja, 2010). They offer the academic resources that for many organizations have become
their most serious asset. Additionally, employees who share a commitment to the
organization and their collective safekeeping are more fitting to generate the public capitals
that smooth the progress of organization learning.
According to Ribelin (2003) it is essential to know employees’ commitment in the

organization and recognize the aspects that take part in vital role or have big impact in
boosting the commitment of their employees. Ale (2011) found that there is positive
relationship between corporate social responsibility and employees’ commitment and
organizational performance. Organization can get better their presentation through
employees’ commitment by appealing in community activities since such activities also
include the interests of workforce and their families.
2.6 Conceptual Framework of the Study
The study undertake conceptual framework which is a tabulated the relationship between
independent variables and dependent variable. The study aimed to examine the effect
relationship between independent variables (Working Environment) and dependent variable
(employees’ Commitment).
Independent variables Dependent variable
Perception of employees on
-Physical workplace
Employees’ commitment
-Psychosocial workplace
-Work life balance
-Overall on working environment
Figure1.1 Conceptual Framework Model: Researcher own construction

CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.1 Study area
The study was conducted on Development Bank of Ethiopia in Head office located in Addis
Ababa Kirkos Sub city. In the Head office there are six work units of Development Bank of
Ethiopia which all are considered in this study.
3.2 Research Design
The research design facilitates the smooth sailing of the different research operations, so
making research as efficiently as possible springy maximum information with minimum
spending of effort, time and money (Khotari, 2004).The researcher could follow is
descriptive and explanatory research design. As the name implies, the major purpose of
descriptive research is to describe the characteristics of objects, people, groups,
organizations, or environments. In other words, descriptive research tries to “print a picture”
of a given situation by addressing who, what, when, where, and how questions (Zikumund,
Babin, Carr, Adhikari& Griffin, 2013). According to Zikmund, (2012), ``Explanatory
research design is prepared to identify the extent and nature of cause and effect relationships.
Causal designs enable to analyze a situation or a specific problem to explain the patterns of
relationships between variables. ``Accordingly, this research design was used in this study to
showed that the mean of all independent variable with respect to dependent variable.
Both quantitative and qualitative data was utilized to conduct this study. The quantitative
approach was applied to identify the factors of working environment on employees’
commitment at Development Bank of Ethiopia. Some qualitative information was also
gathering from the organization by using interview check lists.
3.3 Population and sampling techniques
According to Rubin and Babbie, (2001), as cited by (Kenneth, 2012), the study population is
the aggregation of element from which the sample is actually selected. It is the aggregation or
the totality of all members or units from which information could be obtained. The total
population from all work units of Development Bank of Ethiopia in Head office is 886
employees working in six different Work units as December 31, 2017.since this is too large
to consider in the form of census, sampling was used. The sampling technique is selecting a
suitable sample from the total population of the study for the purpose of formative
characteristics of the entire population. To carry out a study, one might bear in mind what
size the sample should be, and whether the size is statistically justified and lastly what
method of sampling is to be used (Adams, Khan, Raeside, & White, 2007).
This study was used stratified random sampling technique. Because according to Dattalo
(2008), this type of sampling uses groups to achieve representativeness, or to ensure that a
certain number of elements from each group are selected. In a stratified sample, the sampling
frame is divided into non overlapping groups or strata. In this study the researcher divide the
employees based on their work unit, then a random sample is taken from each stratum.
Purposive sampling method was used for interview with management of the organization.
Purposive sampling involves the use of the researcher’s knowledge of the population in terms
of research goals. That is, elements are selected based on the researcher’s judgment that they
will provide access to the desired information (Dattalo, 2008).
3.4 Sample size Determination
The target population of this study is 896 employees which are permanent employees of the
bank. From this the random sample of 277 employees was taken to collect data for this study.
The total population and the sample of the study are indicated in table 3.1.
Table3.1: Population and Sampling Techniques
SN Work units Target Population Sample Size

Size
1 President 120 37
2 Credit Management 122 38
3 Lease Financing 57 18
4 Corporate Services 215 66
5 Finance and Banking 175 54
6 Project Financing 207 64
Total 896 277
Source: DBE HRMD Data Base December 31, 2017
The individual work unit has its own sample size. The total sample size is determined by
scientific or statistical formula derived by Yamane. As cited by (Singh and Masuku, 2014)
Yamane, (1967) provides a simplified formula to calculate sample size. So, from those
several methods of determining sample size Yamane formula was used in this study. The
reason why the researcher uses this formula is that the number of samples found can describe
the total population than other formulas and this large number of samples is advisable for
small number of population or in a narrow scope. By using this formula the researcher can
found a representative samples from the population.
The formula is;

n= N
2
1+N (e)
Where: N= the total number of employees in all work units
n= designates the sample size the researcher uses
e= the maximum variable or margin of errors (5%or 0.05)

Therefore, the number of samples is;
n= 896
2
1+896(0.05)
n = 277
The sample size is 277 employees (respondents) and this number is a representative of the total
population. Then the sample size of each Work unit is as follows;
President 120*277/896 = 37
Credit Management 122*277/896 = 38
Lease Financing 57*277/896 = 18
Corporate Services 215*277/896 = 66
Finance and Banking 175*277/896 = 54
Project Financing 207*277/896 = 64
Total sample size is 277 respondents.
Therefore this study was used stratified sampling because the study area has six separate
work unit and previous literatures are recommended stratified if the populations are scattered
and information can be collected from every work unit of the population. The individual
respondents in each work unit are selected by simple random sampling technique.
3.5 Data source and collection technique

3.5.1 Source of Data Collection
Data provides the basis for information and ultimately problem solving and decision making.
It can be gathered from a wide variety of sources. This study was used primary sources of
information in order to get an in depth data. Primary data; refers to those data generated by a
researcher for the specific problem at hand. Primary sources of information include
questionnaires (data collected from targeted groups of people about their opinions, behaviour
or knowledge) and interview, which was obtained from the management of DBE at Head
Office about working environment relation with employees’ commitment. Primary data
sources are collected by using self-administered questionnaire and interview with
management of the organization.
3.5.2 Procedures of Data Collection
The following procedure was strictly followed by the researcher to collect the data required
for the study. Data collection tools that questionnaires and interview check list was prepare
and develop for current employees of the Bank at head office. The questionnaires delivered
by hand to the respondents at their duty stations during working hours; after questionnaires
stayed for one week the respondents are filled data then collected by researcher, respondents
and her friends. The researcher after collected and amended the questionnaire made
Correction from the total distributed questionnaires based on the feedback obtained from the
respondents of the Bank. Interview session was also conducted with the management staff
and the information obtains was compiled accordingly. Finally, researcher use Statistical
Package for the Social Sciences (SPSS) software for processing data.
3.6 Methods of Data Analysis and Presentation

The researcher used both descriptive and inferential data analysis techniques to analyze the
collected data. The relevant data collected for the study was processed, analyzed and
interpreted through SPSS (statistical package for social science) software that includes
Cronbach’s alpha reliability test and descriptive analysis. The respondents demographic
characteristics were analyzed by descriptive method as well as the responses regarding the
factors of working environment were analyzed by using tables, frequencies, mean and
standard deviation. On the other hand, the relationship between the dependent variable
(employees’ commitment) and independent variables (physical workplace, psychosocial
workplace, work life balance and overall perception on working environment) was analyzed
by using inferential data analysis technique such as Correlation Analysis (Pearson product-
moment correlation coefficient) and multiple regression techniques.
3.7 Reliability and Validity of Instruments
Data qualities were explored through reliability and validity of the information collected through
the field.
3.7.1 Reliability
According to (Kothari, 2004) a measuring instrument is reliable if it provides consistent
results. The reliability analysis was used Cronbach’s alpha to evaluate internal consistency of
the questionnaire. If the quality of reliability is satisfied by an instrument, then while using it
we can be confident that the transient and situational factors are not interfering. As cited by
(Chepkech, 2014), the Cronbach’s alpha formula reduces the time required to compute a
reliability coefficient in other methods. Its coefficient is also a conservative estimate of
reliability hence avoids overestimation (Kerlinger, 1993). So, because of this the researcher
was applying Cronbach’s alpha test to check the reliability of data. The reliability of the
instrument was checked by using SPSS.
Table 3.2: Reliability test on Cronbach’s alpha
No. of Cronbach's
Dimensions Items Alpha
Perception of employees about Physical Workplace 9 0.798
Perception of employees about Psychosocial Workplace 13 0.779
Perception of employees about Work Life Balance 9 0.853
Overall Perception of Employees on the Working
Environment 8 0.802
Employees’ self-rating of their Commitment Level at
workplace 9 0.753
3.7.2 Validity of Instruments

Before the data collection made, researcher developed the questionnaire based on the
literature review by addressing the basic research question and tested the data collection tools
via pre-test and also properly incorporate experts and the research Advisor comments,
suggestions and all required information to valid the study. Validity indicates the soundness
or extent to which an instrument measures the construct was aiming to measure Goodwin
(1995). According to Trochim, (2005) cited by Mary CalistIrema, (2015) data validity refers
to empirical measurement which adequately reflects the real meaning of the concept under
study. Churchill, (2007) defined validity as the extent to which the instrument accurately
measures what was intended and supposed to measure.
3.7.3 Ethical Considerations
This study would fully consider the ethical matters of the Development Bank of Ethiopia. The
study would observe the non-negotiable value of honesty and fairness. The researcher also
enables the respondents to make a voluntary consent to participate in the study and without
disclose the name of employee to the third parties. In addition, the researcher distributed the
questioner without any discrimination and provide free of personal opinion. Similarly, the
researcher gave proper acknowledge or cited the source that used during the study and the
respondents became more open to provide better information needed to be gathered for the study.
There are also several reasons why it was important to adhere to ethical norms in research. Such
as norms promote the research, a great deal of cooperation and coordination among many
different Bank employee’s in different disciplines and managements, help to ensure that
researcher can be held accountable to the organization, the research also help to build Bank
support for research.
CHAPTER FOUR
DATA ANALYSIS AND INTERPRETATION
This chapter presents analysis and interpretation of the study result. The questionnaire was
distributed to the 277 respondents of which 238 responses were collected. It implies that the
response rate was 85.9%. For the data analysis the statistical software version 20.0 was used
to input the collected data and to find out the output information. The collected data were
analyzed by means of descriptive statistics that included frequencies, percentages, means, and
standard deviations.
4.1. Demographic Characteristics of Respondents
In this study a total of 238 respondents were participated. The six demographic questions
focused on gender, age, level of education, year of service, position and salary. Several
studies in which demographic factors have been employed to investigate work environment,
work itself, opportunities and career development, leadership and compensation package
have shown that they are strong predictors of dissatisfaction and retention (Furnham,
Eracleous and Chamorro-Premuzic 2009; Kavanaugh, Duffy and Lilly, 2006; and Sorensen
2008; Schroder 2008).The basic characteristics of the sample population were present in table
below.
Table 4.1: Demographic characteristics of respondents
Demographics Variable Frequency Percentage

Female 107 45%
Gender Male 131 55%
Total 238 100%
Under 25 Year 54 22.7%
25-35 Year 88 37%
35-45 Year 46 19.3%
Age
45-55 Year 48 20.2%
55 and above Year 2 0.8%
Total 238 100%
0-5 Years 140 58.8%
5-10 Years 59 24.7%
10-20 Years 22 9.2%
Work
20-30 Years 15 6.3%
30 Years and more 2 0.8%
Total 238 100%
High School
Graduate 2 0.8%
Diploma 2 0.8%
Education Level First Degree 196 82.3%
Second Degree 38 15.9%
Total 238 100%
Junior 114 48%
Officer 70 29%
Work Position Senior Officer 50 21%
Team Manager 4 2%
Total 238 100%
2,935-8,184 Birr 120 50%
8,184-10,759 Birr 62 26%
Salary range 10,759-14,115 Birr 52 22%
14,115-26,110 Birr 4 2%
Total 238 100%
Source: Survey, 2018
Table 4.1 reveals that the breakdown of the sample respondents selected from the DBE in
terms of sex composition, range of age, educational qualification, position, salary range and
length of services. A total of 238 respondents participated in this study.
Gender
As can be observed from table 4.1 the gender distribution of the selected sample relives that
male respondents were 131(55%) whereas, female respondents were 107 (45%) of the
sample. This implies that there are more male respondents than female. This is an indication
of DBE is staffed with more male employees than female.
Age
Table 4.1 Reveals that 88 (37%) of respondents were between age of 25 and 35 years and the
next large age group was 54 (22.7%) respondents were under 25 years then 48(20.2%) fell
between 45-55 and 46(19.3%) fell between 35-45 while only 2(0.8%) fall above 55 years.
From this data majority of the employees are young and active. This is an implication that
DBE is staffed with younger people. Thus the majority employees were within the productive
age.
Year of Service
As indicated in table 4.1 a majority of the respondent 140 (58.8 %) within range of 0-5.
Following to that 59(24.7%) take a range of 5-10 then 22 (9.2%) between range of 10-20.
The remaining respondent’s respondents 15(6.3%) and 2(0.8) fall under range between 20-30
and more than 30 years. This shows that number of respondents has experience on the bank
and this indicates that employees can confidently express the working environment mostly
practiced.
Educational levels
As can be seen from table 4.1 Majority of the respondents have BA degree which is 196
(82.3%) then next to this 38(15.9%) have a master’s degree and Diploma and high school
graduates were taken similarly a share of 2(0.8)from the total respondents. This indicates that
the majority of the Bank employees have BA degree holders. From this it is possible to
suppose that the composition of the respondents include well qualified to explain about the
subject matter of the study.
Position of respondents
As indicated in table 4.1 also the position of respondents ranges from junior officer to
Director and above. From the total number of respondents 114 (48%) are junior officer, 70
(29.4%) are officer, 50 (21%) senior officer and 4 (2%).This shows that majority of
employees/respondents was at junior level and officer level. This is an indication of DBE is
staffed with more number of junior and officer staffs.
Salary of respondent
As indicated in table 4.1 a majority of the respondent 120 (50 %) earned a salary range
between birr 2,935-8,184. Following to that 62(26%) take a range 8,184- 10,759 then 52
(22%) between range of 10,795-14,115. The remaining respondent’s salaries range between
14,115 and 26,110 takes a share of 4(2%). This implies that majority of the staffs earns
between 2,935-8,184 birr per month.
4.2. Analysis of Collected Data
4.2.1. Descriptive Analysis
The study basic questionnaires comprise of the perception of employees about the
convenience of physical workplace, psychosocial workplace, work life balance, overall
perception of employees on the working environment and employees’ self-rating of their
commitment level at workplace.
4.2.1.1 Physical workplace
Table 4.2 Perception of employees about the convenience of Physical Workplace
(SD=strongly disagree, D=Disagree, N=Neutral, A=Agree, SA=strongly Agree)
n=238
Statements
SD D N A SA Total Mean Stan.Dev
.
I feel comfortable with my

F(n) 50 54 64 54 16 238 2.71 1.22
physical workplace environment
% 21 22.7 26.9 22.7 6.7 100
There is sufficiently comfortable

F(n) 44 66 76 42 10 238 2.61 1.10
workspace at the Bank
% 18.5 27.7 31.9 17.7 4.2 100
My working office layout
designed in superior and modern F(n) 62 62 70 38 6 238 2.43 1.11
appearance. % 26.1 26.1 29.3 16 2.5 100
There is enough natural light in F(n) 59 75 42 38 24 238
2.55 1.29
my working area % 24.8 31.5 17.6 16 10 100
The temperature is adequate in
F(n) 44 68 56 54 16 238
my working area 2.71 1.20
% 18.5 28.6 23.5 22.7 6.7 100
My computer functions at an F(n) 13 54 68 76 27 238
3.21 1.09
adequate speed % 5.5 22.7 28.6 31.9 11 100
There is latest and upgraded IT F(n) 52 74 68 28 16 238
2.50 1.15
system in the organization % 21.8 31.1 28.6 11.8 6.7 100
F(n) 8 32 128 60 10 238
The restrooms/toilets are clean 3.13 0.82
% 3.4 13.4 53.8 25.2 4.2 100
The bank provides sufficient
F(n) 12 100 76 40 10 238
required tools and resources I 2.73 0.94
need to do my job % 5 42 32 16.8 4.2 100
Average number of respondents 38.2 65 72 47.8 15 238
2.73 1.10
Average 16.1 27.3 30.2 32 6.3 100

Table 4.2 illustrates that 104 (43.7%) of the respondents tented strongly disagree and disagree
whether the physical workplace in the Bank is convenient, whereas 64(26.9%) of the
respondents remain neutral. however the rest 70 (29.4%) of the respondents believed that
there is convenience of physical workplace in the Bank. The obtained mean score for this
item was 2.71, which was slightly below 3.Therfore it’s possible to infer that there is low
level of convenience in physical workplace in the Bank.
Item 2 of Table 4.2 addresses respondents’ perception about whether there is sufficiently
comfortable workspace. To this end, 110 (46.2%) of them tended to disagree and only 22% of
them agreed as they feel comfortable with it. The mean score also is 2.61. Therefore, the fact
that only 22% of the respondents were comfortable with the sufficiency of the work place
implies that the Bank fails to meet the expectation of the largest portion of the employees. As
depicted in the table, similar findings were obtained about item number 3 on office layout
design 124(52.2%) of them tended to disagree and only 44 (18.5%) of respondent believed
that there is superior and modern office layout in the bank with the mean value of 2.43. Even
in this case, the mean values were below 2.5. For instance it is possible to infer that there is in
low level of modern office lay out.
Item 4 Table 4.2 addresses that 134 (56.3%) of the respondents tented strongly disagree and
disagree whether enough natural light in working area, whereas 42(17.6%) of the respondents
remain neutral. however the rest 62 (36%) of the respondents believed that there is enough
natural light in working area in the Bank. The obtained mean score for this item was 2.55,
which was slightly below 3.Therfore it’s possible to infer that there is not enough natural
light working area of the Bank. Item number 5 on adequacy of temperature in working
area112 (47%) of the respondents tented strongly disagree and disagree and only 70(29.4%)
of respondent believe that there is adequate temperature.
Table 4.2 on item 6 and 8 result shows that good response by mean value of above 3 on
adequate speed and function of their computer 103 (42.9%) tended to agree and only 67(28.2)
disagree with the mean value of 3.21 and on the cleanse of rest rooms/toilets 70 (29.4%)
tended to agree and only 40(16%) disagree with the mean value of 3.13 Therefore it’s
possible to infer that respondents believed that adequate speed on their computer and clean
rest rooms in the bank. These infer that in some cases there is convenience physical
workplace.
4.2.1.2 Psychosocial work place
Table 4.3 Perception of employees about the convenience of psychosocial Workplace

n=238
Statements
SD D N A SA Total Mean Stan.Dev.
My job provides me with the
F(n) 95 67 26 36 14 238
right amount of challenge and 2.19 1.27
manageable workload % 39.9 28.2 10.9 15.1 5.9 100
My ideas are respected by others F(n) 52 50 70 56 10 238
2.67 1.18
in my work unit % 21.8 21 29.5 23.5 4.2 100
I have positive working
relationships with my co- F(n) 20 66 60 64 28 238
3.06 1.16
workers and there is support
from colleagues and supervisors % 8.4 27.7 25.2 26.9 12 100
Employees are held accountable F(n) 66 78 26 50 18 238
2.48 1.30
in my work unit. % 27.7 32.8 10.9 21 7.6 100
I have confidence in the senior

F(n) 32 104 48 38 16 238 2.59 1.11
leadership of my organization.
% 13.4 43.7 20.2 16 6.7 100
I know how my work contributes
F(n) 8 18 125 59 28 238
to the achievement of my 3.34 0.90
organization’s goals % 3.4 7.6 52.5 24.7 12 100
I’m satisfied with the human
resource job design(job F(n) 100 74 44 16 4 238
1.95 1.01
enlargement, job enrichment, job
rotation) % 42 31.1 18.5 6.7 1.7 100
I’m satisfied with the human F(n) 96 80 38 20 4 238
resource job analysis(job 1.97 1.03
descriptions and specifications) % 40.3 33.6 16 8.4 1.7 100
Conflict of interest is very low in F(n) 58 83 67 24 6 238
2.32 1.03
the Bank. % 24.4 34.9 28.2 10 2.5 100
My organization has healthy
atmosphere (e.g., trust, mutual F(n) 34 103 55 44 2 238 2.48 0.98
respect) exists in work units % 14.3 43.3 23.1 18.5 0.8 100
My organization history and
culture creates confidence in my F(n) 89 64 49 32 4 238 2.15 1.12
work % 37.4 26.9 20.6 13.4 1.7 100
F(n)
I’m confidently telling to others 84 68 36 48 2 238
2.23 1.16
about my organization % 35.3 28.6 15.1 20.2 0.8 100
I would recommend the bank as F(n) 84 62 50 38 4 238
2.23 1.14
a career to my friends. % 35.3 26 21 16 1.7 100
Average number of respondents 62.9 70.5 53.4 40.4 11 238
2.44 1.11
Average 26.4 29.6 22.4 17 4.5 100
whether there job have right amount of challenge and manageable task, whereas 26(10.9%)
of the respondents remain neutral. however the rest 50 (21%) of the respondents believed that
there job have right amount of challenge and manageable task. The obtained mean score for
this item was 2.19, which was below 2.5.Therfore it’s possible to infer that it’s not meet
majority of respondents expectation and it can say that there is low level of appropriate job
challenge and manageable task workplace in the Bank.
Item 2 of Table 4.3 addresses respondents’ perception about whether there idea respected in
their work unit or not. To this end, 102 (42.8%) of them tended to disagree and only
66(27.7%) of them agreed as they feel comfortable with it. The mean score also is 2.67.
Therefore, the fact that only 27.7% of the respondents were comfortable with the sufficiency
of the work place implies that the Bank fails to meet the expectation of the largest portion of
the employees.
disagree on accountability in working units, whereas 26(10.9%) of the respondents remain
neutral. however the rest 68 (28.6%) of the respondents believed that there is sufficient
accountability in working units. The obtained mean score for this item was 2.48, which was
below 2.5.Therfore it’s possible to infer that there is inadequate accountability in work units.
Item number 5 on confidence in senior leadership 136 (57.1%) of the respondents tented
strongly disagree and disagree and only 54(22.7%) of respondent fells confident on senior
leadership. The mean score for this 2.59 this infer that employees have low level of
confidence in the senior leadership of my organization.
Item 7 addresses on human resource job design 174(73.17%) of the respondent tended
strongly disagree and disagree on job enlargement, job enrichment and job rotation, whereas
44(18.57%) remain neutral however the rest 20(8.4%) agree and its mean value of 1.5 and
item 8 on human resource job analysis 176(73.9%) strongly disagree and disagree on job
description and job specification, whereas 38(16%) remain neutral however the rest
24(10.1%).The obtained mean value 1.97.This infer that the bank human resource
management falls to match employees expectation even its mean value below 2.
In item 9 on existing of low level of conflict of interest 141(59.3%) of the respondent tended
strongly disagree and disagree, whereas 67(28.2%) remain neutral however the rest
30(12.5%) agree and its mean value 2.32.Regarding on healthy atmosphere of the bank on
item 10 134(57.6%) strongly disagree and disagree, whereas 55(23.1%) remain neutral
however the rest 46(19.3%) agree on its the existence of positive healthy atmosphere on the
bank.
Item 11 of Table 4.3 addresses confidentiality on the bank history and culture 153 (64.3%) of
them tended to disagree and only 36(15.1%) of them agreed on confidentiality of the bank
history and culture. The mean score also is 2.67. Therefore, the fact that only 27.7% of the
respondents were comfortable with the sufficiency of the work place implies that the Bank
fails to meet the expectation of the largest portion of the employees.
In item 12 telling confidently about the organization for others 152(63.9%) strongly disagree
and disagree, whereas 36(15.1%) remain neutral however 50(21%) agree on it. To this end on
item 13 recommending the bank as career to others 146(61.3%) strongly disagree and
disagree, 50(21%) neutral and 42(17.7%) agree to recommend the bank as career t others.
Table 4.2 on item 3 and 6 result shows that good response by mean value of above 3 on
positive working relationships with my co-workers with the mean value of 3.06 and on their
work contributes to the achievement of the organization’s goals with the mean value of 3.34
Therefore it’s possible to infer that respondents believed that positive working relationships
and their work contributes to the achievement of the organization’s goals. These infer that in
some cases there is convenience.
The result show that there is low level of convinces on the psychosocial work place. As the
labour market continues to tighten, employers are increasingly concerned about maintaining a
stable and committed workforce. They need committed, competent, dedicated, and effective
workers to serve their customers to fulfil their missions. Without a sufficient qualified and
productive workforce, employers are vulnerable to competitive forces as well as the impact of
negative relationships with their customers. Convinces in psychosocial in work place of the
Bank's workforce has a number of advantages for the Bank's health, for workers, for
customers, for suppliers, for investors, for the industry, and for the economy at large. The
above result shows that more disagree about the existence convince of employee’s on
psychosocial work place. By taking a proactive approach to developing committed and an
effective employee focus and make a form to this working environment.
4.2.1.3Perception of employees about work balance life
Table 4.4: Perception of employees about work life balance

n=238
Statements Tota Stan.Dev
SD D N A SA l Mean .
I have support at work to
F(n) 68 62 36 54 18 238
balance my work and 2.55 1.32
personal life. % 28.6 26.1 15 22.7 7.6 100
My work gives me time F(n) 82 90 12 52 2 238
2.17 1.15
to attend to my family % 34.5 37.8 5 21.9 0.8 100
My pay is competitive
with similar jobs in the F(n) 84 72 40 34 8 238 2.20 1.17
region. % 35.3 30.3 16.7 14.3 3.4 100
I am fairly paid for the F(n) 68 81 45 38 6 238
2.30 1.12
work I do. % 28.6 34 18.9 16 2.5 100
My benefits meet my
F(n) 52 74 86 18 8 238
(and my family's) needs 2.40 1.02
well. % 21.8 31.1 36.1 7.6 3.4 100
My organization operates
in socially responsible F(n) 14 146 24 48 6 238 2.52 0.96
manner % 5.9 61.3 10.1 20.2 2.5 100
My organization fiscal F(n) 71 89 32 40 6 238
2.25 1.13
well-being is stable % 29.8 37.4 13.4 16.8 2.5 100
I fell that work life
balance policy in the
organization should be F(n) 78 88 34 32 6 238 2.16 1.10
customized to individual
needs % 32.8 37 14.3 13.4 2.5 100
At present, I would
prefer to remain with my
organization even if a F(n) 84 94 20 34 6 238
2.09 1.11
comparable job was
available in another
organization. % 35.3 39.5 8.4 14.3 2.5 100
Average number of
respondents 66.8 88.4 36.6 38.9 7.3 238 2.29 1.12
Average 28.1 37.2 15.3 16.4 3.1 100
on getting support at work to balance work and personal life, whereas 36(15%) of the
respondents remain neutral. however the rest 72 (30.3%) of the respondents believed that
there is support at work to balance work and personal life. The obtained mean score for this
item was 2.55, which was slightly below 3.Therfore it’s possible to infer that there is low
level of convenience in physical workplace in the Bank.
Item 2 of Table 4.4 addresses respondents’ perception about working give time to attend to
family. To this end, 172 (72.3%) of them tended to disagree and only 54(22.7%) of them
agreed as they feel they have time to attend with family. The mean score also is 2.17. In item
number 3 and 4 on competitive payment in relation with other similar jobs 156(65.6%) of
them tended to disagree and only 42 (17.7%) of respondent believed that there comparative
payment with the mean value of 2.2. regarding to fair payment on work doing 149(62.6%),
whereas 45(18.9%) of the respondent remain neutral. However the rest 44(18.5%) agree on
fair payment for their work.
disagree whether their benefit meet their family need well, whereas 86(36.1%) of the
respondents remain neutral. however the rest 26 (11%) of the respondents believed that there
is enough benefit to meet their family need well. The obtained mean score for this item was
2.4.In item 6 of table 4.4 organization operates in socially responsible manner 160(67.2%)
strongly disagree and disagree, 24 (10.1%) remain natural and other 54(22.7%) agree and
strongly agree on it. Therefore it’s possible to infer that there is no adequately work in
socially responsible manner. In the remaining items also the same result respondents fell that
there is no work life policy in the organization customized (Mean=2.16), stability of
organization fiscal wellbeing (Mean=2.25) this resulted on the respondent prefer remain with
the organization disagree on mean value of 2.09.
This shows that the bank has no work life policy customized to employees need. To be more
advantageous by their employees companies consider the work life of employees and plan
and implement on it. Nyoka (2006: 2) also include strategies that will enable employees to
balance their work life demand with their family life by establishing family friendly policies
and enabling flexible work arrangements to accommodate essential personal commitments.
4.2.1.4 Perception of employees on overall working environment
Table 4.5: Overall Perception of employees on the working environment

n=238
Statements
SD D N A SA Total Mean Stan.Dev.
I enjoy my working F(n) 45 66 65 48 14 238
2.66 1.17
place. % 18.9 27.7 27.3 20.2 5.9 100
The bank has safe F(n) 12 73 85 64 4 238
and secure work 2.90 0.91
environment % 5 30.7 35.7 26.9 1.7 100
There is apparent F(n) 66 50 56 52 14 238
and open
2.57 1.26
communication in
my working % 27.7 21 23.5 21.8 5.9 100
environment
My work activities F(n) 29 60 73 52 24 238
are personally 2.92 1.17
meaningful to me. % 12.2 25.2 30.7 21.9 10 100
Individual
differences are F(n) 6 16 142 46 28 238
respected here (e.g.,
3.31 0.86
gender, race
educational
background, etc.) % 2.5 6.7 59.7 19.3 12 100
There is positive and F(n) 10 28 140 50 10 238
consistent way of 3.09 0.81
work environment % 4.2 11.8 58.8 21 4.2 100
The working
environment create F(n) 64 84 54 22 14 238
2.32 1.14
stress and decrease
in performance % 26.9 35.3 22.7 9.2 5.9 100
I understand how my F(n) 8 14 136 58 22 238
work environment
impacts the 3.30 0.85
organization
business goal % 3.4 5.9 57.1 24.4 9.2 100
Average number of
2.88 1.02
respondents 30 48.9 93.9 49 16 238
Average 12.6 20.5 39.4 20.6 6.8 100

whether they enjoy on their working place, whereas 65(27%) of the respondents remain
neutral. however the rest 62 (26.1%) of the respondents believed that there enjoyment on
their working place. The obtained mean score for this item was 2.66.Therfore it’s possible to
infer that there is low level of enjoyment on their working place
Item 2 of Table 4.5 addresses respondents’ perception about whether bank has safe and
secure work environment. To this end, 85 (35.7%) of them tended to disagree and only 28.6%
of them agreed as they feel comfortable with it. The mean score also is 2.9. Therefore, the
fact that only 22% of the respondents were comfortable safe and secure work environment
implies that the Bank fails to meet the expectation of the largest portion of the employees. As
depicted in the table, similar findings were obtained about item number 3 on apparent and
open communication in working environment 116(48.7%) of them tended to disagree and
only 66 (27.7%) of respondent believed that there apparent and open communication in
working environment in the bank with the mean value of 2.43. Even in this case, the mean
values were below 2.5. For instance it is possible to infer that there is in low safe and secure
environment and apparent and open communication.
Item 3 Table 4.5 illustrates that 89 (37.4%) of the respondents tented strongly disagree and
disagree on doing meaningful work, whereas 73(31%) of the respondents remain neutral.
however the rest 76 (31.8%) of the respondents believed doing meaningful work. The
obtained mean score for this item was 2.92.On item number 7 on working environment create
stress and decrease in performance 148(62.2%) strongly disagree and disagree, whereas
54(23%) remain neutral, however 36(15.1%) agree on the work create stress and decrease in
performance.
Table 4.5 on item 5,6 and 8 result shows that good response by mean value of above 3 on
Individual differences are respected 74 (31.3%) tended to agree and only 22(9.2) disagree
with the mean value of 3.31 , on positive and consistent way of work environment 60
(25.2%) tended to agree and only 38(16%) disagree with the mean value of 3.09 and the
respondent understand how their work environment affect the organization business
goal80(33.6%) agree and 22(9.3%) disagree. Therefore it’s possible to infer that respondents
believed that individual difference respect, consistent way of work environment and they
understand the work environment on employees organization business goal.
4.2.1.5Employees self-rating their commitment level
Table 4.6: Employees self-rating their commitment level
n=238
Statements
SD D N A SA Total Mean Stan.Dev
I am proud of the work I F(n) 51 69 34 60 24 238
2.74 1.32
do % 21.4 29 14.3 25.2 10 100
Currently, I’m using my
time as effectively as F(n) 30 38 67 60 43 238
3.20 1.27
possible and to be highly
productive % 12.5 16 28.2 25.2 18 100
My personal employment
relationship matches to
the goals and values of F(n) 63 75 18 58 24 238 2.60 1.37
the organization; hence I
feel I’m committed % 26.5 31.5 7.6 24.4 10 100
I Stay with the
organization by F(n) 10 59 111 36 22 238
3.00 0.97
considering cost linked
with the leaving % 4.2 24.8 46.6 15.1 9.3 100
My commitment is F(n) 27 41 90 50 30 238
normative / morally
3.06 1.16
obligated to my job and
to the organization % 11.3 17.2 37.8 21 13 100
When needed, members
of my team positively F(n) 2 10 144 50 32 238 3.42 0.81
help me get the job done. % 0.8 4.2 60.5 21 14 100
I regularly participate in
activities that are not F(n) 47 96 47 28 20 238
necessarily expected of 2.49 1.18
me, to help my
organization succeed. % 19.7 40.3 19.7 11.8 8.5 100
I receive meaningful
recognition for work well F(n) 12 148 32 36 10 238 2.51 0.95
done. % 5 62.2 13.4 15.1 4.3 100
I am committed and F(n) 76 96 16 38 12 238
satisfied with the culture 2.22 1.20
of my work place % 31.9 40.4 6.7 16 5 100
Average number of respondents 35.3 70.2 62.1 46.2 24 238
3.16 1.28
Average 14.8 29.5 26.1 19.4 10 100

As can be observed from Table 4.6 item number 1 felling proud for their work doing
120(50.4%) of the respondents are confirmed by strongly disagree and disagree other
hand34(14.3%) of the respondent remain neutral. Moreover, 84(35.2%) of respondents
confirm that they fell proud on work they doing. Item number 2 illustrates that 68 (28.5%) of
the respondents tented strongly disagree and disagree whether they use their time effectively,
whereas 67(28.2%) of the respondents remain neutral. however the rest 103 (43.2%) of the
respondents believed that effectively use their time in the Bank. The obtained mean score for
this item was 3.2.
Item 3 of Table 4.6 addresses respondents’ perception about whether their personal
employment relationship math with the organization goal and felling committed. To this end,
138 (58%) of them tended to disagree and only 22% of them agreed as they feel comfortable
with it. The mean score also is 2.61. Therefore, the fact that only 82(34.4%) of the
respondents felling committed. As depicted in the table, similar findings were obtained about
item number 4 on stay in the organization by fearing cost related with 69(29%) of them
tended to disagree and only 58 (24.4%) of respondent agree on it with the mean value of
3.Similarly item number 4 address that 68(28.5%) disagree on doing work by morally
obligated to do and 80(34%) agree on it. Its mean value score 3.06.For instance it is possible
to infer that there is cost related fearing to leave and morally obligated to be committed on
employees.
Table 4.6 on item6 result shows that good response by mean value of above 3 on helping
positively to do works within a team working with the mean value of 3.42 and on
participating in work more than expected value mean value of 2.49.relating to getting
recognition on work doing and satisfied the organization work culture it score the mean value
of 2.51 and 2.2 respectively. Therefore it’s possible to infer that respondents believed that
positively work help each other to do works, low level of recognition and satisfaction on the
work culture of the company.
4.3 Inferential Statistics
4.3.1 Correlation analysis
Pearson correlation test was conducted to check the magnitude of correlation between the
dependent variable, employees’ commitment and independent variables such as physical
workplace, psychosocial workplace, work life balance and overall perception on working
environment. The following measure of association developed by MacEachron (1982) was
used as a reference to check the magnitude of correlation.
Table 4.7 The measure of association and descriptive adjectives Measure of Association
Measure of Association Descriptive Adjectives

>0.00 to 0.20; <-0.00 to -0.20 Very weak or very low
>0.20 to 0.40; <-0.20 to -0.40 Weak or low
>0.40 to 0.60; <-0.40 to -0.60 Moderate
>0.60 to 0.80; <-0.60 to -0.80 Strong or High
>0.80 to 1.0; <-0.80 to -1.0 Very high or Very Strong
Source: MacEachron A.E. (1982). Basic Statistics in human services: an applied approach.
Table 4.8 Correlation matrix between Employees Commitment and working environment factors
Correlations
Physical Psychosocia Work Overall
commitment workplac l life Perception
e workplace balanc
e
Pearson Correlation 1
Commitment Sig. (2-tailed)
N 238
Pearson Correlation .663** 1
Physica
Sig. (2-tailed) .000
l work N 238 238
Pearson Correlation .833** .706** 1
Psychosocia Sig. (2-tailed) .000 .000
l workplace N 238 238 238
Pearson Correlation .753** .545** .791** 1
Work
Sig. (2-tailed) .000 .000 .000
life N 238 238 238 238
balance
Pearson Correlation .778** .495** .714** .684** 1
Overall Sig. (2-tailed) .000 .000 .000 .000
Perceptio
N 238 238 238 238 238
n
**. Correlation is significant at the 0.01 level (2-tailed).
Table 4.8 shows the correlation between dependent variable employees’ commitment and
independent variables, physical workplace, psychosocial workplace, work life balance and
overall perception on working environment. As clearly indicated, all independent variables
have positive correlate with the dependent variable, employees’ commitment with significant
level of 0.01. The magnitude of correlation between independent variables and the dependent
variable for Physical work(R=.663**) this shows the variable strongly or highly relate with
the dependent variable. The remaining independent variables Psychosocial
workplace(R=.833**), Work life balance (R=.753**) and overall perception of employees
(R=.778**) correlate very highly or very strongly.
4.3.2 Multiple Regression Analysis
4.3.2.1. Assumptions of Multiple Regression analysis
Multiple regressions are one of the fussier of the statistical techniques. It makes a number of
assumptions about the data, and it is not all that forgiving if they are violated.
The Assumption of Normality
This assumption refers to the distribution of scores and the nature of the underlying
relationship between the variables. This can be checked from the residuals scatter plots which
are generated as part of the multiple regression procedure. Residuals are the differences
between the obtained and the predicted dependent variable (DV) scores. The residuals should
be normally distributed about the predicted DV scores and in normal probability plot it is
expected that points will lie in a reasonably straight diagonal line from bottom left to top
right. This would suggest no major deviation from normality. Accordingly, as indicated in
Appendix-C1, the Normality assumption is not violated.
The Assumption of Homoscedasticity
The assumption of Homoscedasticity states that the variance of the residuals about predicted
dependent variable scores should be the same for all predicted scores. The variability in
scores for variable X should be similar at all values of variable Y. One of the ways that this
assumption can be checked is by inspecting the residuals scatterplot of the regression
standardised residuals that were requested as part of the analysis in SPSS. In the Scatterplot
of the standardised residuals, it is expected that the residuals will be roughly rectangularly
distributed, with most of the scores concentrated in the centre (along the 0 point). What is not
needed is a clear or systematic pattern to residuals (e.g. curvilinear, or higher on one side than
the other). Deviations from a centralised rectangle suggest some violation of the
Homoscedasticity assumption. Tabachnick&Fidell(2001). As indicated in the Appendix-C2,
this assumption is not violated.
The Assumption of Multicollinearity
This assumes that there should not be high level of relationship between independent
variables and if high correlation value found it is said to be Multicollinearity exist. Tolerance
of 1 indicates no multicollinearity and tolerance values approaching 0 indicate a severe
multicollinearity problem. Commonly used cut-off points for determining the presence of
multicollinearity is tolerance value of less than 0.10, or a VIF value of above 10 (Pallant,
2005). As presented in table 4.8 below, the assumption of Multicollinearity problem did not
exist.
Coefficientsa
Collinearity Statistics
Model Tolerance VIF

(Constant)
Physical workplace .502 1.994
1 Psychosocial Workplace .236 4.234
Work Life Balance .345 2.901
Overall Perception .453 2.209
a. Dependent Variable: commitment
Table 4.9 The Assumption of Multicollinearity

4.3.2.2 Regression Analysis Results
In this section the researcher used multiple regression analysis to absorb the relationship
between the dependent variable and independent variables. Further, regression analysis helps
the researcher to understand how typical value of the dependent variable changes when any
one of the independent variable is varied, while other independent variables are held fixed.
Model Summaryb
Model R R Square Adjusted R Square Std. Error of the Estimate

a
1 .885 .783 .779 3.76421
a. Predictors: (Constant), Overall Perception, Physicalwork, Work life, psychosocial
b. Dependent Variable: commitment
Table 4.10 Model Summaryb

The regression model considers employees commitment as dependent variable and physical
work environment, psychosocial work environment, work life balance and overall perception
of employees on working environment as independent variables. The linear combination of
those factors is significantly related to job satisfaction (R²=0.783). This means that,
78.3percent of the variance in the dependent variable; employees’ commitment can be
explained by the independent variables, physical work environment, psychosocial work
environment, work life balance and their overall perception on working environment.
Although, the remaining 21.7percent of the change is explained by other factors which are
not included in this study model, both the R-squared and the Adjusted R-squared values in
this study are found to be sufficient enough to infer that the fitted regression line is very close
to all of the data points taken together (has more explanatory power). R-Squared greater than
20% is still large enough for reliable conclusions for such data. (Cameron Trivedi, 2009;
Hsiao, 2007, cited in Nyamsogoro, 2010).
ANOVAa
Sum of Mean
Model Squares Df Square F Sig.
1 Regression 11879.521 4 2969.880 209.600 .000b
Residual 3301.441 233 14.169
Total 15180.962 237
b. Predictors: (Constant), Perception, Physical work, Work life balance, Psychosocial
Table 4.11 ANOVAa

The ANOVA (Analysis of Variance) table provides the result of test of significance for R and
R². Accordingly, it shows the F value of 209.600 is significant at 0.01, (P value that a
correspondent to F statistic is significant). Thus, which states the independent variables,
physical workplace, psychosocial workplace, work life balance and overall perception of
employees on working environment significantly explain the variance in employee
commitment in the bank.
Coefficientsa
Unstandardized Standardized Collinearity
Model Coefficients Coefficients Statistics
Std.
B Error Beta T Sig. Tolerance VIF
(Constant) -3.907 1.174 -3.328 .001
Physical .179 .049 .158 3.672 .000 .502 1.99
work 4
Psychosocia .287 .050 .361 5.742 .000 .236 4.23
1 l 4
Work life .170 .059 .149 2.863 .005 .345 2.90
balance 1
Perception .512 .068 .340 7.489 .000 .453 2.20
9
Table 4.12 Coefficientsa
Under Beta coefficient table, standardized Beta coefficient and unstandardized beta
coefficient values are used to predict the relative importance of each independent variable
and to formulate the linear regression equation respectively.
Based on the standardized beta coefficient values, it can be shown that the effect of working
environment all factors in the bank (physical workplace, psychosocial work place, work life
balance and overall perception of employees on working environment) found to be significant
predictors of employees commitment.
The linear multiple regression formula for the dependent variable, employees commitment
and independent variables physical workplace, psychosocial work place, work life balance
and overall perception of employees, took the form of:
Y´= a + b1X1 + b2X2 + b3X3 + b4X4 + e
Where, Y´= the dependent Variable, Employees commitment
a = y axis intercept (the constant beta value)
b1, b2, b3, b4 = beta weight for each independent variables
X1, X2, X3, X4 = representing physical workplace, psychosocial work place, work life
balance and the overall perception of employees respectively.
e = the error term (0.05)
By taking the unstandardized beta value from table 4.11, the regression equation of this
particular study to the nearest decimal could be written as:
Y´= -3.90+ 0.18X1 + 0.29X2 + 0.18X3 + 0.51X4 + 0.05
The implication of the above formula can be stated as, setting all other predictor variables to
zero,
 For every unit increase in the value of physical work place in the bank, the value of
employees’ commitment will increase by 18%.
 For every unit increase in the value of the psychosocial work place in the bank, the
value of employees’ commitment will increase by 29%.
 For every unit increase in the value of work life balance in the bank, the value of
employees’ commitment will increase by 18%.
 For every unit increase in the value of overall perception of employees in the bank,
the value of Job satisfaction will increase by 51%.
The hypotheses were conducted and the summary of the findings are presented below
Hypothesis 1: The hypothesis for working environment
Null: Working environment of the organization will not vary statistically significant effect on
employees’ commitment in the bank.
Alternative: Working environment of the organization will statistically significant effect on

employees’ commitment in the bank.
 The Null hypothesis will be rejected and the alternate hypothesis will be
accepted according to the ANOVA analysis result.
Hypothesis 2: The hypothesis for physical work environment, psychosocial work
environment and work life balance
Null: There is negative relationship between physical work environment, psychosocial work
environment and work life balance and employees commitment
Alternative: There is positive relationship between physical work environment, psychosocial

work environment and work life balance and employees commitment
Hypothesis 3: The hypothesis for explaining working environment
Null: Physical work environment, psychosocial work environment and work life balance will
not significantly explain the variance in employee job commitment in the bank.
Alternative: Physical work environment, psychosocial work environment and work life
balance significantly explain the variance in employee job commitment in the bank.
4.4Analysis of Data Collected Through Interview
The interview result shows that the respondents think about DBE have it own Working
environment and it is consider overall component of the work including employees’
relationship, organization culture, office layouts, materials used to work and work by its own.
The respondents believe that there is ordinary physical workplace and it’s difficult to say it’s
convenient and comfortable regarding to insufficient work space and office layout in office,
problem with lift system and problem in upgrade information systems.
The psychosocial work environment concern on job demands and social structures and
interactions in the organization influence the psychological wellbeing of employees. The
respondents feel that relatively positive relationship between co-workers. Relating to work
life balance there is dissatisfaction on benefits and payment by the bank. The respondents
also reflect on work life balance time to attend personal life there is improper work load
between teams so it’s difficult to generalize and set in one it can say neutral on this section.
The respondent’s reflection on workforce commitment it depends on the personality but on
the current situation generally it’s normal or blew it.
All the respondents believe that directly or indirectly employees commitment affected by the
working environment. Respondents believe that work life is major factor of working
environment that affect employees commitment. The management aware about the
employees level of commitment and it set on strategic plan of 2015/16-2019/20 and regarding
to working environment it’s difficult to say the management fully aware about it but there is
some start up to improve it by renovate the office designs.
CHAPTER FIVE
FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
5.1. Summary of Major Findings
The survey as presented on this work assessed the effect of working environment on
employees’ commitment in Development Bank of Ethiopia. This chapter deals with summary
of major findings, conclusions, recommendation of the study, Implications to further research .
These discussions are made based on the review of related literature, results of statistical
analysis and discussions of findings from chapter four.
 Most of the current employee respondents (55%) are males and the majority of
respondents below the age of 35, have BA, those who have the position of the
employees are junior and officer, the majority respondents salary range between birr
2,935 – 8,184 and has been in the Bank below 5 years.
 Respondents’ opinion indicated that 43% of responses strongly disagree and disagree
on convenience of physical workplace in the Bank. Its mean value score 2.73 this
implies that there is low level conveniences on physical workplace in the bank.
 The finding of study reveals that most of the respondents disagree about the existence
of convenience of psychosocial workplace in this regard the obtained average mean
value was2.44.Unconducive work environment create more of stressful work,
inefficient performance and it create difficult to achieve the objective of the Bank.
 When we come to work life balance the study result reveals that the Bank does not
successfully match employees’ want and it creates high disagreement with average
mean value of 2.29because of Bank cannot measure farness of its payment or benefits
and comparativeness of the same industry.
 With regards to the response rate of overall perceptions of working environment in
the Bank reveals that the majority of the respondent are believed that there is no
conveniently sufficient working environment: safe and secure work environment,
meaningful works, positive and consistent way of work environment.
In general the regression model analysis indicates that all independent variables, workplace
environment, psychosocial workplace, work life balance and overall perception of working
environment positively affect the dependent variable of employees’ commitment. The
correlation matrix between employees’ commitment and physical workplace, psychosocial
workplace, work life balance and overall perception of employees on working environment
indicates that all have positive relationship with the dependent variable with significant level
and strong correlation. The regression model considers employees commitment as dependent
variable and 4 other factors of job satisfaction as independent variables. The linear combination
of those factors is significantly related to employees commitment ( (R²=0.783). F=209.6). This
means that, 78.3 percent of the variance in the dependent variable, employees’ commitment can
be explained by the independent variables, physical work place, psychosocial workplace, work
life balance and overall perception of employees on working environment.
5.2. Conclusions
The study aims to investigate the effect of working environment on employees’ commitment
in Development Bank of Ethiopia. To address the proposed objectives, 238 employees from
6working unit of the bank were included in the study. This study has employed both
quantitative and qualitative data in order to conduct the study. Responses were collected by
adopting questionnaire and designed to measure employees’ commitment towards
independent factors. The quantitative and qualitative data have been analyzed by descriptive
statistics and multiple liner regression analysis method was used. Main working environment
and employees commitment factors are investigated in the literature. After an extensive
literature review, the survey was conducted and SPSS software (20.0 versions) program was
utilized for analysis of data. The result of the study finding is based on the survey and the
interviews. Accordingly, the researcher comes to a conclusion based on the interpreted results
and discussions of findings.
The researcher concluded that, the overall perception of employees on working environment
doesn’t match expectation with the existing situation and the working environment of the
bank in low level of convenience on its physical workplace, psychosocial workplace and
work life balance this reflect on low level of employees commitment. The result of multiple
liner regression analysis revealed that the work environment has a significant and positive
effect on employees’ commitment.
5.3. Recommendations
Based on the major summary findings and conclusions of the study, the researcher has forwarded
the following recommendations for the Development Bank of Ethiopia in order to encourage the
employees’ commitment in the organization.
 Facilitate opportunity for understanding employees’ perception about the overall

working environment via need assessment. provide fair rewarding system and
competitive benefit package as financial sector to create committed employees.
 The Bank should proactively enact strategies and programs through participating
employees, to create positive employee perception and committed workforce by
establishing convenient work environment and the work itself.
 To successful implementation strategies on working environment of the bank should
have a culture of providing on boarding and orientation, convenient psychical
workplace, positive psychosocial workplace, enough work-life balance, employee
compensation, recognition and rewards systems, communication and feedback,
dealing with change, fostering teamwork and team celebration.
 To create committed employees, the organizations consider and review their working
environment and reorganize those according to the current technology, office designs
and layout by considering employees want so that it create and increase employees
commitment serve more and would beneficial in the long run in addition, for
organizations create advantage continues working with their current committed
employees than by hiring and tanning the working environment to new employees
 Organization should divide the work equally for workload or else appoint more
employees to consider their work life balance. As workload stimulus stress, so
company has to take some action.
 Attitude towards the subordinate & colleagues should smooth and positive for
effective results. Management should encourage employee to creativity, innovation,
and continuous improvement.
 The Bank HRM should redesign its job design and job analysis by job rotation,
enlargement and enrichment with job description and job specification according to
employee performance and the job needs the profession.
5.4. Implications to Further Research
Since professional employee commitment and productiveness is a sensitive issue, it is feel

that some respondents may be unwilling to participate in the survey or may be suspicious
about intentions of the management. They may feel reluctant to disclose their true opinions
on commitment, satisfaction and motivation, fearing negative effect on their jobs or on their
relationships with their managers.
Only existing employees were selected as respondents, key informant interview were
conducted and it did not include employee who have left the bank that may affect working
environment. It is also suspect that some employees may exaggerate the situation than it
exists in reality based on their negative experience with the bank. In addition the study
focuses on general commitment level of employees it doesn’t specify the commitment type
and study on it.
Finally, there is no sufficient research works on the current appropriate working environment
of organizations on employee commitment level in the country. Therefore, it needs serious
consideration and further study at wider ranges. This implies that there is a limitation of
awareness and focus in the bank on working environment from top to down and vice versa.
The researcher recommended that other the researchers have to do more studies on the effect
of working environment in order to see how these situations look like in other similar
organization.
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APPENDICS
Appendix-A: Questionnaire Distributed to Respondents (Employees)
St. Mary’s University

School of Graduate Studies
MBA Program
Questionnaire to be filled by Employees of Development Bank of Ethiopia
This questionnaire is designed to collect data about the effect of working environment
on employees’ commitment in the case of Development Bank of Ethiopia (DBE).
The outcome of the study will be used in order to suggest possible solutions for
problems in line with the title suggested here. The information that you offer me with
this questionnaire will be used as a primary data in my case research, which I am
conducting as a partial requirement for MBA Degree at St. Mary’s University. I want to
assure you that this research is only for academic purpose and authorized by the St.
Mary’s University. No other person will have to access this data. Therefore, your
genuine, frank and timely responses are quite vital to determine the success of this
study. So, I kindly request your response in filling the questionnaire honestly and
responsibly.
NB.
• There is no need of writing your name.
• In all cases where answer options are available please tick (√) in the
appropriate box.
Thank you in advance for your kind co-operation in this regard

Part one: Demographic Information
• Sex:
Female Male
• Which of the following age categories describes you?
Under 25 25-35 35-45 45-55 and above 55
• Number of years you have worked in the Bank (in years):
0-5 5-10 10-20 20-30 30 years or more
• Your Educational Qualification:
High school graduate Diploma First Degree
Second Degree PhD Other (please state)
• Your Current Position:
Junior Officer Senior Officer
Team Manager Director and above
• Your current salary range between
Less than Birr 2,935 between Birr 2,935-8,184
Between Birr 8,184-10,759 between Birr 10,759-14,115
Between Birr14, 115-26,110 Above 26,110

Part two: Effect of working environment on employees’ commitment in DBE
Directions: - Dear respondents, indicate your answers for the corresponding questions with
points given, by using “√”signs in the corresponding boxes on a scale of 1 to 5.
Where; 1.Strongly Disagree 2. Disagree 3-Neutral 4- Agree 5- Strongly agree
1.Perception of employees about the convenience of Physical 5 4 3 2 1

Workplace
I feel comfortable with my physical workplace environment
There is sufficiently comfortable workspace at the Bank
My working office layout designed in superior and modern

appearance.
There is enough natural light in my working area
The temperature is adequate in my working area
My computer functions at an adequate speed
There is latest and upgraded IT system in the organization
The restrooms/toilets are clean
The bank provides sufficient required tools and resources i need

to do my job
2.Perception of employees about convenience of Psychosocial 5 4 3 2 1

Workplace
My job provides me with the right amount of challenge and

manageable workload
My ideas are respected by others in my work unit.
I have positive working relationships with my co-workers and

there is support from colleagues and supervisors
Employees are held accountable in my work unit.
I have confidence in the senior leadership of my organization.
I know how my work contributes to the achievement of my

organization’s goals
I’m satisfied with the human resource job design(job enlargement,

job enrichment, job rotation)
I’m satisfied with the human resource job analysis(job

descriptions and specifications)
Conflict of interest is very low in the Bank.
My organization has healthy atmosphere (e.g., trust, mutual

respect) exists in work units
My organization history and culture creates confidence in my

work
I’m confidently telling to others about my organization
I would recommend the bank as a career to my friends.
3.Perception of employees about Work Life Balance 5 4 3 2 1
I have support at work to balance my work and personal life.

My work gives me time to attend to my family
My pay is competitive with similar jobs in the region.
I am fairly paid for the work I do.
My benefits meet my (and my family's) needs well.
My organization operates in socially responsible manner

My organization fiscal well-being is stable
I fell that work life balance policy in the organization should be

customized to individual needs
At present, I would prefer to remain with my organization even if

a comparable job was available in another organization.
4.Overall Perception of Employees on the Working 5 4 3 2 1

Environment
I enjoy my working place.
The bank has safe and secure work environment
There is apparent and open communication in my working

environment
My work activities are personally meaningful to me.
Individual differences are respected here (e.g., gender, race

educational background, etc.)
There is positive and consistent way of work environment
The working environment create stress and decrease in

performance
I understand how my work environment impacts the organization

business goal
5. Employees’ self-rating of their Commitment Level at 5 4 3 2 1

workplace
I am proud of the work i do.
Currently, I’m using my time as effectively as possible and to be

highly productive
My personal employment relationship matches to the goals and
values of the organization; hence I feel I’m committed
I Stay with the organization by considering cost linked with the

leaving
My commitment is normative / morally obligated to my job and

to the organization
When needed, members of my team positively help me get the job

done.
I regularly participate in activities that are not necessarily

expected of me, to help my organization succeed.
I receive meaningful recognition for work well done.
I am committed and satisfied with the culture of my work place

Appendix-B: Interview Check List
1. What do you think about working environment by relating with the DBE experience?
2. Do you feel that the bank provide convenient physical workplace?
3. Do you feel that the bank provide convenient psychosocial workplace?
4. Do you feel that there is work life balance in the bank?
5. How do you evaluate the workforce commitment in the Bank?
6. Do you feel that DBE employees commitment affected by the working environment?
7. What are the main factors of working environment that influence employees’ commitment
in the Bank?
8. Is the management of the Bank aware about the factors influencing working environment?
Appendix-C: Statistical results
Appendix C1 Test of Normality Assumption
Appendix C2 Test of Homoscedasticity Assumption

DECLARATION
I, Aynalem Dagne, declared that this thesis is my original work, prepared under the guidance
of Terefe Feyera (PHD) unless the words have been placed in inverted commas (“„‟) and
referenced with the original source. All sources of material used for the thesis have been duly
acknowledged. I further confirm that the thesis has not been submitted either in part or in full
to any other higher learning institution for the purpose of earning any degree.
Aynalem Dagne
Name Signature and date

ENDORSEMENT
This Thesis has been submitted to St. Mary’s University College School of graduate studies
for examination with my approval as a University advisor.
Advisor Signature and date
St. Mary’s University, Addis Ababa

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ST.

STUDIES MBA PROGRAM

THE EFFECT OF WORKING ENVIRONMENT ON

ADDIS ABABA, ETHIOPIA

A THESIS SUBMITTED TO ST.MARY’S UNIVERSITY, SCHOOL OF

GRADUATE STUDIES IN PARTIAL FULFILLMENT OF THE

REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS

ADDIS ABABA, ETHIOPIA

THE EFFECT OF WORKING ENVIRONMENT ON EMPLOYEES’

APPROVED BY BOAORD OF EXAMINERS

Dean, Graduate studies Signature & date

Advisor Signature & date

Internal Examiner Signature &date

External Examiner Signature &date

DBE: Development Bank of Ethiopia

SPSS: Statistical Package for Social Science

Table 3.1:Population and Sampling Techniques....................................................................211

Figure1.1 Conceptual Framework Model: Researcher........................................................ 18

Figure 4.1 Test of Normality Assumption..............................................................................66

Figure 4.2 Test of Homoscedasticity Assumption..................................................................66

Key words: Development Bank of Ethiopia, Working Environment, Employees Commitment

1.1. Background of the Study

The determination of workers to accomplish corporate achievements is focused (Mechanic

1.2 Statement of the problem

1.3 Research Questions

The study has the following research objectives:

1.4.1. Specific Objectives

The specific objectives of the study were:

1. To assess the perception of employees on working environment

2. To identify the level of employee commitment on the workplace

3. To assess the effect of physical workplace on the commitment of employees.

4. To examine the psychosocial workplace effect on employees’ Commitment.

5. To analyse the influence of work life balance on employees’ performance.

1.5 Research Hypothesis

This study has tested the following research hypothesis:

Hypothesis 1: Working environment of the organization have statistically significant effect

Hypothesis 2: There is positive relationship between physical work environment,

Employees’ Commitment: -a force that binds an individual to a target (social or non-social)

1.7 Scope of the study

1.8 Significance of the Study

REVIEW OF RELATED LITERATURE

2.1 Theoretical Literature

2.1.1 Concepts of working environment

2.2 Characteristics of working environment

• Impartiality-Employees need to recognize that they are being fairly content

2.3 Empirical Literature Review

2.3.1 Work Environment Factor Affecting Employees’ Commitment

2.3.1.1 Physical Factors of the Workplace Environment

2.3.1.1.4 Air conditioning and temperature

A workplace is a part of a natural environment and environmental issues have a significant

2.3.1.2 Psychosocial Factors Affecting Employees’ Performance

Work-life balance is a combination of interactions among different areas of one’s employed

2.4 Employees Commitment

According to Meyer and Allen (1997), Affective organizational commitment refers to an

2.4.2 Continuance Organizational Commitment of employees

2.4.3 Normative Organizational commitment of employees

Normative organizational commitment reflects an emotion of obligation to carry on

According to Schneider (2003), normative organizational commitment is the ethical

2.5 Work environment and employees’ commitment