International Business Research; Vol. 8, No. 3; 2015 ISSN 1913-9004 E-ISSN 1913-9012 Published by Canadian Center of Science and Education 54 The Effects of Organizational Cohesiveness on Organizational Performance: A Study on the Egyptian Commercial Banks Wageeh Nafei 1 1 University of Sadat City, Menoufia, Egypt Correspondence: Wageeh Nafei, University of Sadat City, Menoufia, Egypt. E-mail: dr.wageeh1965@yahoo.com Received: March 3, 2014 Accepted: November 20, 2014 Online Published: February 25, 2015 doi:10.5539/ibr.v8n3p54 URL: http://dx.doi.org/10.5539/ibr.v8n3p54 Abstract Organizational Cohesiveness (OC), and Organizational Performance (OP) have become the organizational behavior and human resources management hot spots. OC refers to two main constructs, namely, task cohesion and social cohesion. The purpose of this study is to investigate the relationships between OC (IATG-T, IATG-S, GI-T and GI-S) and OP at the Egyptian commercial banks. Using Carron, et al. (1985) of OC, the study develops a number of hypotheses and tests them. This research is an applied form in terms of its goals and is descriptive in terms of the method of data collection. Of the 382 questionnaires distributed, 315 usable questionnaires were returned, a response rate of 82%. The results showed that OC significantly is related to the OP. In other words, both task cohesion and social cohesion significantly correlated with OP. The results also showed that the degree of OC among members determines the success of cooperative OP in moving toward its future direction. The study suggests that the Egyptian commercial banks can improve OP by influencing its OC, specifically, by developing IATG-T, IATG-S, GI-T and GI-S. The study provided that it is necessity to pay more attention to the dimensions of OC as a key source for organizations to enhance the competitive advantage which is a prime significance for OP. The study observes that there is a critical shortage of OC and that a greater understanding of the factors that influence the OP, including IATG-T, IATG-S, GI-T and GI-S, is of great importance. Therefore, this study is to examine the relationship between OC and OP among employees at the Egyptian commercial banks. Keywords: organizational cohesiveness, organizational performance 1. Introduction Organizational Cohesiveness (OC), and Organizational Performance (OP) have become the organizational behavior and human resources management hot spots. In the process of the organizational operation, there are cohesiveness and psychological contract which are informal and implied in the heart of employee except for the formal economic contract kept by written. Though they have not strong sanctions as the economic and legal contract, they are also dominant factors in determining the attitude and obligation of employees towards organization. OC can be defined as the tendency for a group to stick together and remain united in the pursuit of their instrumental objectives and/or for the satisfaction of member affective needs, as a multidimensional construct comprised of both task and social aspects, and involving the dual processes of integration into the group and attraction toward other group members. Thus, four dimensions come into sight: Individual Attractions to the Group-Social (IATG-S), Individual Attractions to the Group-Task (IATG-T), Group Integration-Social (GI-S) and Group Integration-Task (GI-T) (Carron et al., 1982; 1985; 1998). The perception of high levels of OC is highly related to the sensation of the group unit, the collective and interdependence with the team members, while the perception of low levels of OC is related to the sensation of individual orientation, the nonexistence of cooperation and independence of the team members (Carron et al., 1998). The OC will decide the successfulness of cooperatives’ activities such as in the economic, social and cultural aspects. OC is indispensable in the study of group dynamics (Sapran, 2010). The purpose of this study is to investigate the relationship between OC (task cohesion and social cohesion) and OP