The Effect of Leadership Style on Employee Work Engagement in the Case on Sheger Mass Transport Enterprise

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Addis Ababa University


This project aimed to identify if different leadership styles influence a company’s employee engagement. It set out to evaluate if transformational and transactional leadership styles affect Sheger Mass Transport Enterprise employee’s work engagement. Based on previous studies and research, the instrument to measure transformational and transactional leadership is Multifactor Leadership Questionnaire (MLQ) while employee engagement is measure via Utrecht Work Engagement Scale (UWES). 161 questionnaire samples were taken from the questionnaires distributed. The questionnaire was analyzed via quantitative methodology and from which, the results have shown that both transformational and transactional leadership have a correlation with employee engagement. With the stronger correlation being between the transformational leadership style and employee engagement in the Sheger Mass transport enterprise. This is especially found to be true for the employee absorption in their work. The result from the assessment predicted the ability of Transformational leadership over employee’s absorption revealing that transformational leadership positively and significantly affect employee’s absorption. There are strong emerging research findings that suggest transformational leadership has a greater impact on employee engagement. As a result, it is more advantageous to undertake study on this phenomenon



Leadership style, Transformational Leadership, Transactional Leadership