The Effect of Leadership Styles on Employee Organizational Commitment: The Case of Zemen Bank
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Date
2024-10
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Addis Ababa University
Abstract
The purpose of this study was to examine the effects of leadership styles on employee’s organizational commitment the case of Zemen bank. The study employed both primary and secondary sources. In order to maximize accuracy and minimize error in estimating from the target population, participants for the study's questionnaire were chosen using a straightforward random selection procedure. Out of the 259 questionnaires provided, 243 were correctly completed by the participants. To collect qualitative data semi, structured interviews were employed through the purposive sampling technique employed to select in a managerial position. On the top of this, to support the quantitative data analysis in this study, descriptive statistics like frequencies, percentages, means, and standard deviations were used in conjunction with SPSS and EPI data. Two separate instruments, namely Multifactor Leadership Questionnaire (MLQ) and the Organizational Commitment Questionnaire (OCQ) were used to measure leadership styles and employees‟ organizational commitment respectively. The findings verified that the effects of leadership styles on employee’s organizational commitment revealed that transformational leadership style has a positive, and statistically significant relationship with affective commitment. The finding also shows that laissez-faire leadership positively impacts affective, normative and continuance commitment. However, transactional leadership does not have a statistically significant positive impact on these types of commitment. From the findings, it was concluded that it is crucial for the bank to prioritize employee well-being by promoting work-life balance and providing mental health support services. A healthy and supportive work environment will contribute to higher levels of employee engagement and commitment. Finally, it was recommended that organizations should consider the context and specific work environment before applying laissez-faire leadership. This leadership style might be particularly effective in settings where employees are highly skilled, self-motivated, and capable of working independently.
Keywords: Leadership styles, Employee Organizational Commitment,