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.
