The Mediating Role of Employee Satisfaction in the Relationship between Leadership Qualities and Employee Organizational Commitment in the Selected Commercial Banks Located in Addis Ababa
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Date
2021-03
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A.A.U
Abstract
This study scrutinizes the mediate role of Employee Satisfaction in the relationship between Leadership Qualities and Employee organizational Commitment in the selected Commercial Banks located in Addis Ababa. Data was gathered by closed ended questionnaires distributed to the selected four commercial banks (Awash Bank, Commercial bank of Ethiopia, Debub Global Bank and Addis International Bank) using simple random sampling technique. The scales used were the Multifactor Leadership Questionnaire (MLQ), Minnesota Satisfaction Questionnaire (MSQ), and the Organizational Commitment Questionnaire (OCQ). The samples were taken from the selected four commercial banks. The study population consists of the selected four commercial banks, which have 1,974 branches, and 47,980 employees in the target location and 397 employees were randomly selected from each stratum using sample generator. After the data was cleaned EFA (Explanatory Factor Analysis) was done to obtain the rotated component matrix, which was used as an input for CFA (Confirmatory Factor Analysis) and only 380 respondents were used as the main resources analyzed by using Structural Equation Model (SEM) on (SPSS plus AMOS-24) software. Some of the results were according to the expectation after theory examination, but others were surprisingly contradictive. The results showed Employee job satisfaction partially mediates the relationship between leadership quality and employee affective commitment. There is again a competitive mediation between leadership qualities and employee continuance commitment via employee job satisfaction. Further, there is no indirect effect of leadership qualities and employee normative commitment. This study also confirms that Leadership qualities have a positive and significant impact on employee job satisfaction and employee organizational commitment. The finding of the study is expected to provide a source of information for policy makers, researchers and human resources professionals to understand the role of intervening variable (employee job satisfaction) on the link between independent variable(leadership qualities) and dependent variable(employee organizational commitment) from Ethiopian banking sector context.
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Leadership Qualities, Employee organizational Commitment