Effect of Leadership Styles on Employee Engagement: In the Case of Dashen Bank Share Company, Addis Ababa
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Date
2024-06-05
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A.A.U
Abstract
Leadership styles such as transformative, servant, democratic, laissez-faire and
transactional, are effective in promoting employee engagement and productivity. Thus,
the primary objective of this study was to ascertain how various leadership philosophies
affect employee engagement at Dashen Bank S.C. Given this, a person-based cross-
sectional survey with an 85% repose rate was conducted in Addis Ababa, Ethiopia,
involving 188 employees of Dashen Bank. The research participants were selected by a
combination of proportional, random, and stratified by branching sampling approaches.
A semi-structured questionnaire and interview checklist were developed in addition to
the use of an in-person data collection method. To enter the data for the statistical
analysis, SPSS version 27 was utilized. In this study, inferential analysis (correlational
and multiple regression) as well as descriptive statistics were employed. To find the
independent determinants of leadership styles on employee engagement, multivariable
regression was fitted. The results show that servant, democratic, transactional,
transformational, and laissez-faire leadership are positively influencing employee
engagement. These leadership styles are also found to have a substantial beneficial
impact on employee engagement but the dominate effect was observed by
transformational leadership style. This study came to the conclusion that both of these
leadership philosophies are supported by the majority of employee engagement. As a
result, this study advises banks to place a greater emphasis on leadership behaviours
that might enhance employee engagement in banking sector.