The Role of Leadership Style on Organizational Culture: In the Case of Zemen Bank S.co
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Date
2022-09
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Addis Ababa University
Abstract
Today's corporate leaders must have the ability to change organizational culture in response to issues if they are to succeed. On the other hand, leaders actively contribute to establishing, preserving, and enhancing organizational culture through their policies and leadership style. Therefore, leaders are required to act in a manner that is compatible with the goals of the organizations that they lead. This study aims to investigate the relationship and the role of leadership style on the organizational culture of Zemen Bank S.co. Data from both primary and secondary sources were gathered in order to meet the research objectives. The available scholarly studies' material was reviewed, and a conceptual framework was developed as a result. Checklists for document evaluation and survey questionnaires were employed to gather data. The objective of the study was accomplished using a descriptive and explanatory survey design. A straightforward random sample and purposeful sampling method was used to select the study's participants. 156 employees who are working in the city of Addis Ababa were requested to complete the questionnaire, and 151 did so. Through the use of descriptive, multiple regression, and correlation analysis techniques, the study's participant data were examined. Accordingly, the study's findings showed that, at the group level, leadership style had a positive and significant influence on the bank's organizational culture. Additionally, it was shown that the leadership style most frequently used in the bank was transactional leadership. The study finds that, apart from the aforementioned leadership style, transformational leadership style has strong influence on the culture of the bank. Whereas, the widely leadership style in the bank perceived by the employees of the bank was transactional leadership style. Hence most of the bank leadership style over reliance on rewards and punishment to exert influence and mainly focus on economic and instrumental transactions in treating employees. Although transactional leadership can be functional or even vital, it is less likely than transformational leadership to create and influence the organizational culture. Thus zemen bank has recommended adopting leadership style that is more aligned to ensure its innovative organizational culture to enhance competitive advantages in this dynamic world. Furthermore, the bank has to deploy intensive and continues management development to enhance participation, purposeful interaction between leader and employees in order to avoid the laissez-fairy leadership perceived by the employees of the bank.
Key words- Leadership style, Organizational culture, Transformational, Transactional, and Laissez-faire
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Business Leadership