The Effects of Organizational culture on employee Productivity in case of textile manufacturing industries In Dire-Dawa, Ethiopia

Organizational culture greatly affects how an organization operates and how the workforce interacts to carry out daily activities. Various scholars have linked strong organizational culture to high workforce productivity as a whole; the effect on specific constructs of productivity is yet to be outset. The main aim of this thesis will be to analyses the link between organizational culture and employee’s productivity. The researcher used descriptive and explanatory research design with quantitative approach in order to meet the objective of the study. The target population for this study was 1385 permanent employees of new wave industries plc and Redwa Textile factory plc. using a survey questionnaire between August 2023 and April 2023. Out of 1385 permanent employees, 308 respondents were selected using stratified random sampling technique. Denison’s model of organizational culture (Involvement, Adaptability, Mission and Consistency) was adapted to measure organizational culture while employee productivity was measured by target achievement, available resources and hours of work in a week. Structured questionnaire with five point Likert scale were used to collect the data. A total of 272 questionnaires were used for this study and the data were analyzed using descriptive and inferential statistics. The data collected were summarized, classified and tabulated and analyzed using SPSS version 26. The result of Spearman correlation test shows that there exists a positive relationship between the four organizational dimension variables (i.e. mission, adaptability, involvement and consistency) and employee productivity.. The result of ordinal logistic regression shows that 81.6% of the variance of employee productivity can be predicted by the independent variable In addition, the result of ordinal logistic regression shows that mission and involvement have a positive significant effect on employee productivity while adaptability and consistency have insignificant effect on employee productivity. Organizations should give a strong concern for the practice of organizational culture especially for involvement and mission dimensions of organizational culture.