The Effect of Leadership Style on Organizational Culture: The Case Study of Bank of Abyssinia West Addis District
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Date
2024-09
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Addis Ababa University
Abstract
This study aims to assess the impact of various leadership styles (Transactional, Transformational, and Laissez-faire) on the organizational culture at the Bank of Abyssinia
(BOA) West Addis District. Employing a descriptive and explanatory research design, data was collected using the Multifactor Leadership Questionnaire (MLQ) and analyzed using SPSS
version 25. The study highlighted a balanced gender representation among respondents, with a slight malemajority, and a workforce that is relatively young and well-educated. Most employees have extensive experience, having served the bank for over four years. The results of correlation studyshowed that although there is a positive correlation between organizational culture and bothtransformational and transactional leadership styles, laissez-faire leadership had the strongestassociation. This high correlation suggests that Laissez-faire leadership significantly influencesorganizational culture, despite minimal leader intervention.The predominant leadership style identified was Laissez-faire, characterized by minimal
involvement and a hands-off approach by leaders. Despite this, employees generally perceivedthe organizational culture positively across dimensions such as involvement, consistency,
adaptability, and mission.The reliability of the study's findings is supported by a robust Cronbach's alpha score. Theseinsights emphasize the nuanced relationship between leadership styles and organizationalculture. The findings suggest a need for tailored leadership development programs that alignwith the unique cultural and operational dynamics of BOA West Addis District.
Keywords: Transformational Leadership style, transactional leadership style, laissez-faire
leadership style, organizational culture.