Relationship between Leadership Style and Employee Commitment in Bank of Abyssinia

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Addis Ababa University


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



Leadership styles, Employee commitment