Relationship between Leadership Style and Employee Commitment in Bank of Abyssinia
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Date
2019-06
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Addis Ababa University
Abstract
The main objective of this study is to investigate the relationship between leadership styles and
employee commitment in Bank of Abyssinia, Addis Ababa selected Branch offices. The study
employed descriptive research design with emphasis on the relationship of leadership styles on
the employee commitment in Bank of Abyssinia. The target population of interest in this study
was made up of non-management employees of 12 grade three branch staffs of the bank, who
were 322 in total which is obtained from the HR department. The sample size consists of a list of
50 randomly selected staffs from each of the 12 branch offices. Data was collected using
questionnaire (two separate instruments namely Multifactor leadership questionnaire, MLQ&
Organizational Commitment questionnaire, OCQ) and analyzed using the Statistical Package for
Social Science (SPSS). The findings were presented using tables and charts. Correlation analysis
was also being employed to test the relationship between the independent and dependent
variables. The findings of the study revealed that transformational leadership style has
significant and positive correlation with affective, continuance and normative employee
commitments while transactional leadership style has not significant and positive correlation
with all the three types of commitment. A laissez-faire leadership style is found to be not
significantly correlated with affective & normative commitment but significantly and positively
correlated with continuance commitment. Finally depending on the research work the researcher
recommended that the bank could work on strengthening and intensively using Transformative
leadership style by equipping managers on the skills needed for transformational leadership
since this leadership style has proved to be significantly correlated with employee commitment
Description
Keywords
Leadership styles, Employee commitment