Leadership Behavior in CBE and its Effect on Employee Performance: The Mediating Role of Organizational Commitment
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Date
2016-05
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Addis Ababa University
Abstract
The increasingly competitive global economy has pushed companies to exploit their available
resources as a means of achieving competitive advantage. In this regard leadership is critically
important because it has a great impact on the condition of the organization. The purpose of this
quantitative study is to investigate the relationship between Leadership behavior and employees’
Performance and employee commitment as mediating factor. The research is cross-sectional one.
The research approach applied for this study was quantitative type of research where both
descriptive and explanatory analyses have been deployed. The target population of this study was
employees of commercial bank of Ethiopia working in Addis Ababa area at branch level, which
includes 4 districts. From 5,500 total populations of CBE branches, which are found in Addis Ababa
city, 420 employees were selected as the sample of the study. Sample random sampling technique
was used to select the branches and individual respondents. The standardized questionnaires of
leadership behavior organizational commitment and employees’ performance were adapted from
previous standard questionnaire. ANOVA Analysis was used to compare the demographic
characteristics of the respondents. Correlation and linear regression were used to analyze the
relationship and its effect between leadership behavior and employees' performance through
organization commitment as mediator. The regression results showed that the leadership behaviors
have significant contribution for organizational commitment and employees’ performance.
Moreover, all organizational commitment dimensions have significant effect with organizational
performance. At last, the result conformed that organizational commitment has a mediating effect
between leadership behavior and employees performance. Generally, managers need to improve
their behavior to the highest level to improve the organizational commitment and employees’
performance.
Key words: leadership behavior, employees’ performance and Organizational commitment
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Keywords
leadership behavior, employees, performance and, Organizational commitment