INFULENCE OF ORGANIZATIONAL CULTURE ON ORGANIZATIONAL EFFECTIVENESS:MEDIATING ROLE OF EMPLOYEE ENGAGEMENT; SPECIAL REFERENCE TO THE BANKS IN RATNAPURA DISTRICT

Abstract

In the twenty first century, every organization are operating in a very competitive environment and banking sector's environment is also very competitive. In today's highly competitive environment, the organizational culture is an essential factor in enhancing organizational effectiveness and employee engagement. This study is investigated the influence of Organizational Culture (OCL) on Organizational Effectiveness (OEF) with the mediating role of Employee Engagement (EE). Therefore the main aim of this study was to analyze the influence of Organizational Culture on Organizational Effectiveness, analyze the level of Organizational Culture, Employee Engagement and Organizational Effectiveness. And the mediation effect of Employee Engagement on Organizational Effectiveness in selected commercial banks is analyzed. Structured questionnaire was used as the method of data collection and selected 220 licensed commercial banks' employees (Bank of Ceylon, people's Bank, Commercial Bank and Hatton National Bank) in Ratnapura as the sample of this study. In this study, the statistical tools that used to analyse the levels of variables are mean and SD values, while relationships were measured by Pearson Coefficients and linear regressions for further mediation analyses and independent sample t-test used to analyze the differences among banks regarding variables. The result indicates that Organizational Culture, Employee Engagement and Organizational Effectiveness are in high level in selected banks and there is a strong positive relationship among all variables. There is a high positive influence of Organizational Culture on Organizational Effectiveness in selected banks. And also results indicated that there is a partial mediation effect of Employee Engagement towards Organizational Effectiveness in selected banks. This study supported that the suitable usage of OCL will increases the number of Employee engagement or make long term healthy relations with the current or potential employees through managing information or improve the performance of banking activities that assist Organizational Effectiveness.