A STUDY ON ORGANIZATIONAL CULTURE DEVELOPMENT AND EMPLOYEE RETENTION AT THE NATIONAL BANK OF RWANDA

Abstract

This study aims to evaluate the impact of organizational culture development on employee retention at the National Bank of Rwanda (BNR). The research is structured around four specific objectives: (i) to assess the influence of communication style on employee retention, (ii) to analyze the effect of leadership effectiveness style on employee retention, (iii) to determine the influence of diversity and inclusion on employee retention, (iv) to test the moderating effect in the relationship between organizational culture development and employee retention. The research design integrates cross-sectional, quantitative, and qualitative approaches. A cross-sectional study was employed to capture data at a single point in time across a sample population. Quantitative methods address hypotheses through statistical analysis, while qualitative methods facilitate an in-depth exploration of participant opinions. The qualitative approach involved a survey with both closed and open-ended questions, distributed to 108 subjects. The quantitative approach utilized descriptive and correlational statistics to analyze relationships between organizational culture factors (structure, leadership, communication, values) and employee retention metrics (average tenure, engagement, performance). The target population includes 148 staff members from various levels and departments within bnr. A sample size of 108 was determined using yamane's formula, considering a margin of error of ±5%. Stratified sampling was used to ensure representation from different departments, and within each stratum, simple random sampling selected respondents to generalize findings to the broader population. Primary data were collected through structured questionnaires and interviews. The questionnaire included both closed and open-ended items, with responses measured on a 5-point likert scale to ensure consistency and ease of analysis. Interviews were conducted with key management staff to gather qualitative insights. Secondary data were drawn from organizational reports and scholarly sources from 2018-2023. Data analysis involved sorting, coding, and entering responses into spss. Descriptive statistics provided a profile of respondents, while inferential statistics, including pearson correlation and regression analyses, examined relationships between variables. The study concludes that organizational culture development plays a substantial role in employee retention at BNR. The regression model's r-squared value of 0.664 and significant f-value underscore the importance of organizational culture in influencing retention. The findings suggest that while employee demographics also impact retention, enhancing organizational culture is a crucial strategy for improving retention outcomes. The findings illustrate several recommendations such as to enhance communication and engagement, strengthen the alignment of values with operations, leverage the existing collaborative culture, and focus on demographic diversity. Promote supportive culture policies, encourage best practices for retention, and support training and development programs. Invest in organizational culture development, address employee satisfaction, emphasize demographic diversity, and maintain effective communication channels.