The Role of Leadership Style on Employee Engagement: the Case of Dashen Bank S.C.
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Date
2023-06
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Addis Ababa University
Abstract
Leadership style and practices are critical in this age since the business environment is constantly changing and firm rivalry is severe. The primary goal of this research was to determine the impact of leadership style on employee engagement in the case of Dashen Bank S.C. Transformational, Transactional, and Authoritarian leadership styles were explored as Independent variables in order to assess and formulate the Dependent variable, employee engagement in Dashen Bank. A sample size of 80 workers was chosen to collect the primary data needed to perform the inquiry from a 491 person target group. The respondents' perceptions of their immediate supervisor's leadership styles were investigated using a self-administered Multifactor- Leadership Questionnaire (MLQ), and their personal engagement level was assessed using the Utrecht-Work-Engagement-Rater. The raw data collected from respondents was examined using SPSS version 23.0, which included frequencies, descriptive, percentages, and other inferential statistical methods such as correlation and regression analysis to investigate the study's results. The study's findings revealed that Dashen Bank's employee engagement level is higher than average, and the most commonly exhibited leadership style in Dashen Bank, based on employee feedback is transformational leadership style, despite the fact that the three leadership styles are used in varying degrees of frequency. According to the analysis results, transformational leadership style has a favorable and significant impact on employee engagement at Dashen Bank. Transactional leadership style has also a positive impact however its influence is insignificant on Employee engagement and autocratic leadership style negatively and significantly affects employee engagement in Dashen Bank. According to the study's findings, Dashen Bank should work on more transformational leadership styles and its supervisors should employ transformational leadership techniques and practices. In the contrary, discourage autocratic leadership styles employment and practices in order to raise its workers' existing moderate engagement level and attain the overall objective of the firm.