The Effect of Leadership Style on Employee Turnover Intention: The case of Ahadu Bank, Addis Ababa Branch
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Date
2024-10
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Addis Ababa University
Abstract
Employee turnover remains a significant financial and operational burden for organizations, impacting knowledge retention and competitiveness. This study investigates the effect of shared leadership, authentic leadership, and culturally intelligent leadership on turnover intentions within Ahadu Bank. Data was collected through a self administered survey distributed to a sample of 172 Ahadu Bank employees. The survey instrument included established measures to assess employee perceptions of shared leadership, authentic leadership, and culturally intelligent leadership styles practiced by their managers. Additionally, employee turnover intentions were measured using a validated scale. Multiple regression analysis was then employed to test the hypothesized relationships between these leadership styles and turnover intentions. The results reveal that both shared and authentic leadership styles emerged as significant negative predictors of turnover intention, suggesting employees with these leadership experiences are less likely to consider leaving. Interestingly, culturally intelligent leadership did not exhibit a statistically significant association with turnover intention in this model. These findings imply that fostering shared and authentic leadership practices among managers at Ahadu Bank could be a strategic approach to mitigating employee turnover. The study highlights the value of investing in leadership development programs that cultivate these crucial leadership competencies, while also underscoring the need for further research into potential moderating or mediating factors that might influence the relationship between leadership styles and employee turnover intentions.
Keywords: leadership, leadership style, Turnover, employee Turnover