Organizational Climate and Its Relationship to Organizational Loyalty — A Field Study in the Branches of Public Commercial Banks in the Western Region

Abstract

This study aims to examine the relationship between organizational climate and organizational loyalty in commercial bank branches in the western region, and to study the impact of differences in the personal and functional characteristics of employees on their level of organizational loyalty in these banks.

The researcher adopted a descriptive approach, using a questionnaire prepared as a tool for collecting study data, which was distributed to a sample size of 201 individuals selected by simple random sampling, representing 47.9% of the original population of 420 employees. The number of questionnaires analyzed was 182, representing 90.5% of the distributed questionnaires. The study data were analyzed and its hypotheses tested by applying some of the most appropriate descriptive and inferential statistical analysis tools for the nature of these data, using the Statistical Package for the Social Sciences (SPSS) software.

Among the most important findings of the study are:

1. The results of the descriptive analysis of the questionnaire items showed that the individuals in the study sample felt that there was a negative organizational climate in the bank branches under study, based on various climate dimensions (organizational structure, use of technology, leadership style, salaries and financial incentives, workplace relationships, participation in decision-making, and performance evaluation).

2. The results of the descriptive analysis of the questionnaire items showed that the individuals in the study sample felt a negative level of organizational loyalty among employees at commercial bank branches in the western region.

3. The results of the analysis indicate a positive correlation between the organizational climate and organizational loyalty, with a Pearson correlation coefficient of 0.942, which is statistically significant at the 0.01 level.

4. The results of the statistical analysis showed a strong correlation.