The Effect of Leadership Style on Employee Work Engagement: The Case of Berhan Bank Share Company
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Date
2024-10
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Addis Ababa University
Abstract
The primary goal of this study was to investigate the impact of leadership style on employee engagement in the case of Berhan Bank S.c. in Addis Abeba. Explanatory research design and quantitative research approach was employed to assess the relationship between employee engagement, transformational-leadership-style and transactional-leadership style of the research study. Sample size of 289 employees was selected using purposive sampling from 1053 target population. Primary data was collected from the clerical employees of Berhan Bank working at the head office and branches in Addis Ababa. The raw data was analyzed with descriptive and inferential statistical tools using SPSS. The finding of the study revealed that both types of leadership-styles Transformational and Transactional considered in this study are practiced in Berhan Bank in mixed way but at different level. The descriptive analysis indicated that transformational leadership style slightly more experienced than transactional leadership style as perceived by the employees. The results of correlation and regression analysis have shown that transformational leadership style and transactional leadership style positively affect employee engagement in Berhan Bank with slightly different degree of significance. The overall engagement level of employees at Berhan Bank is a little bit more than the average. So based on the research finding Berhan Bank was recommended to promote the application of transformational leadership style for its Leaders, Managers and Supervisors to enhance the current engagement level of its employees.
KeyWords: Leadership Style, Transformational Leadership Style, Transactional Leadership Style, Berhan Bank and Employee Engagement.