Browsing by Author "Ruth Mergia"

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    The Effect of Transformational Leadership on Employees’ Retention : The Case of Bank of Abyssinia
    (Addis Ababa University, 2022-07) Ruth Mergia; Zegeye Muluye (PhD)
    The aim of this study is to explore the effect of Transformational Leadership on employees’ retention in Bank of Abyssinia. Elements of Transformational Leadership (Idealized Influence, Inspirational Motivation, intellectual stimulation and Individualized Consideration) were used as independent variables to predict Employee Retention (IV). Primary data was used. The research followed cross-sectional explanatory research design, quantitative approach, survey method and questionnaire was used as data collection instrument. Samples were taken from 14 departments of Bank of Abyssinia Head quarter. Proportional stratified sampling was used. Data were collected from the sample of 200 from the organization through standard questionnaire. Descriptive statistics, correlation and regression analysis was used to analyse the data with the aid of SPSS version 26. The study finds that Idealized Influence, intellectual simulation and individual consideration has a positive and significant effect on Employee Retention. However Inspirational Motivation was not significant in this study. The research concluded that the effect of Transformational Leadership is significant in retaining employees. Therefore, since Transformational Leadership is shown to make employees loyal to the bank and reduces turnover, the bank should adopt it at all levels including the branches. In order to develop a good result training should be given to the bank's leaders so that to develop Transformational Leadership characteristics. The recruiting process also needs to recruit potential managers as a successor, who has transformational leader character Key words: Transformational Leadership, Employee Retention