The Effect of Leadership Style on Employee Engagement: In the Case of Zamzam Bank Head Office

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Date

2024-10

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Addis Ababa University

Abstract

study aims to investigate what is the role of leadership style (transactional leadership, transformational leadership style and last of all Laissez-faire leadership styles) on employee engagement in the case of Zamzam bank head office. The study was conducted in Zamzam Bank Head Quarter, the first Islamic interest free bank in Ethiopia. A quantitative research design was employed in which 118 valid structured questionnaires were obtained after distributing 119 questionnaires to employees obtained by conducting a systematic random sampling method. The research utilized both an explanatory and descriptive approach research design. The study used quantitative method using Likert scale adapted and modified version of MQL and Gallup Organization questionnaire and the collected data was statistically analyzed using SPSS version 20. The findings from the study show us that there is a significant and positive association of employee engagement with the two dimensions of leadership style namely transactional and transformational, and a non-significant and negative association with the laisse’s faire leadership. Transactional leadership style had the most significant and influential impact on the outcome variable compared to other leadership style. Based on the findings of in this study, it can be determined that for Zamzam Bank to increase employee engagement, managers ought to exhibit behaviors and styles that related to transactional and also adding transformational leadership style may additionally motivate people to be more engaged in their work. Key Words: Leadership Style, Employee Engagement, Transactional leadership styles, Transformational leadership styles, Laissez-faire leadership styles

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