Exploring Organizational Culture and Organizational Commitment in Selected Branches of a Microfinance-Oriented Rurla Bank in Quezon Province

Date

5-2024

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Gemma U. Reyes

Committee Member

Jose Maria B. Morales, Rolando G. Allam, Jr., Melodee Marciana E. De Castro

Restrictions

Restricted: Not available to the general public and to those bound by the confidentiality agreement. Access is available only after consultation with author/thesis adviser.

Abstract

Rural banks are essential for supporting the agriculture sector in the Philippines, but they face significant challenges including limited access to loans for farmers, service inefficiencies, lack of competition, monopolistic money lenders, insufficiencies, lack of competition, monopolistic money lenders, insufficient government support, inadequate risk management, operational cost issues, compliance difficulties, and slow digital transformation. Given these challenges, it became evident that internal factors within rural banks, such as organizational culture (OCu) and organizational commitment (OCo), played a critical role in addressing systemic issues.

This study analyzed the interrelationship between OCu and OCo among employees at CARD Bank branches in Quezon Province, examining employee demographics, the bank's culture, commitment levels, the relationship between demographics and OCo, and the dimensions of OCu and OCo, ultimately recommending ways to better align culture with employee commitment.

Data were collected from employees at the Atimonan, Gumaca, Infanta, and Lucban branches through convenience sampling using an online survey facilitated through Google Forms. The Denison Organizational Culture Model (DOCM) (Denison, 1990) was used to assess the culture, while the Three-Component Model of Organizational Commitment (Allen & Meyes, 1991) was incorporated to assess commitment levels. Statistical tools employed included Descriptive Statistics, Point-Biserial Correlation, and Spearman's Correlation Coefficient.

The study revealed distinct demographic patterns among employees. At the Atimonan branch, account officers predominated among respondents. Overall, account officers made up 64% of surveyed employees, with cashier/tellers representing the smallest proportion (7%). Additionally, female employees are more prominently represented across all age groups. Concerning education, most employees held bachelor's degrees (50%) or had attended college (48%). The majority (40%) had 4 to 6 years of experience in their current position, primarily among account officers, while the smallest group had 10 to 12 years of experience/

Employee ratings indicated a generally positive perception of OCu, with Adaptability standing out as a notable strength, reflecting the organization's ability to respond to changing environments, market conditions, and customer needs. In terms of OCo, employees exhibited moderate levels of Affective, Continuance, and Normative commitment, with Normative commitment being the most prevalent. This suggests that employees stay with the organization due to a sense of obligation or moral responsibility, although they remain open to better-aligned opportunities. The overall commitment level was high, indicating a positive sentiment towards the workplace.

The study also found that demographic factors such as sex, age, highest educational attainment, and years of experience did not significantly affect OCo. This suggests that these traits do not align with changes in commitment levels, although the absence of significant correlation does not rule out any relationship entirely.

Furthermore, the study found a favorable correlation between OCu and OCo. The Involvement, Adaptability, and Mission dimensions of culture showed a weak positive relationship with Affective, Continuance, and Normative commitment. The Consistency dimension of culture demonstrated a moderate positive relationship with Continuance and Normative commitment and a weak positive relationship with Affective commitment. Overall, there was a weak positive correlation between OCu and OCo. Although the correlations were weakly positive, this suggests that improvements in OCu could enhance OCo. Enhanced employee engagement typically leads to overall improvements in the organization's culture and environment.

The study recommended leveraging the positive perception of Adaptability culture to enhance user satisfaction with the konek2CARD mobile banking app, particularly for agricultural loan clients. Regular monitoring and evaluation mechanisms should also be implemented to assess the impact of initiatives, with CARD Bank already conducting member follow-ups and surveys. Further improvements can be made by increasing survey depth and frequency, tailoring feedback mechanisms for agricultural clients, and using insights to innovate loan products and services. Additionally, implementing employee feedback systems, such as quarterly surveys and suggestion boxes, is essential to gather input on the culture and commitment levels.

Language

English

LC Subject

Microfinance—Philippines, Banks and banking

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2024 M17 F57

Document Type

Thesis

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