The Role of Leadership Style on Implementing Organizational Change: The Case of CBE
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Date
2021-09
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Addis Ababa University
Abstract
The research paper was aimed to determine the role of leadership style on implementing organizational change in the commercial bank of Ethiopia 20 SAAD branches, consisting 100 samples of management and subordinates, which were selected using random sampling technique Questionnaires were distributed to 100 branch management and subordinates representing an average of 5 from each branch. Of the 100 respondents 81 respondents appropriately responded to the questionnaires. The data collected was analyzed based on the 81 responses using SPSS 20 software package. Descriptive statistics and explanatory approach was applied. All outputs of the study were presented using frequency, mean, correlation and linear regression analysis. The results showed that transactional leadership style was widely observed practice. The effectiveness of the organizational change implementation appeared to be at medium level. The relationship of the leadership styles and organizational change implementation has been found negative according the test made. The study recommended that the bank should use Kurt Lewin’s three stage model (unfreezing, changing and refreezing) for effective change implementation process. Unfreezing is expected to solve employee readiness at initial stage. Refreezing is recommended to guarantee sustained change by accommodating transactional and transformational leadership styles for the change to be institutionalized and go beyond the short term. Additionally, participative and multidirectional communication, and creating awareness about the need for the change, reaching at common understanding at the very beginning is also recommended for successful change implementation process
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Keywords
Leadership, leadership style, change