Effect of Organizational Climate on Employee Commitment in Deposit Money Banks in Rivers State

Abstract

This study examined the effect of organizational climate on employee commitment proxy by teamwork and decision making in deposit money banks in Rivers State. The study employed a survey research design, utilizing a structured five-point Likert scale questionnaire to collect data from staff at five Domestic Systemically Important Banks (DSIBs) in Rivers State, encompassing a total workforce of 303 employees as obtained from the banks’ human resource departments. Adopting a census survey approach, the study included the entire population as the sample. Data were coded and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to assess both the measurement and structural models. The findings revealed a statistically significant positive effect of both teamwork and decision-making on employee commitment and performance. Based on these results, the study recommends that banks enhance teamwork through team-building activities and foster a collaborative environment. Additionally, banks should encourage participative decision-making practices to involve employees in decision processes, thereby increasing their commitment and productivity. These measures are expected to create a more positive organizational climate and improve overall performance of the banks.