The Effects of Leadership Style on Employees Engagement: The case of Zamzam Bank
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Date
2022-06
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Addis Ababa University
Abstract
This study examines the effect of leadership styles on employees’ engagement in ZamZam bank. Explanatory mixed design was employed to achieve the objectives of the study. Purposive sampling was employed to select the management teams for key informant interview; whereas, census technique was used to consider the entire population in all districts of the bank. To collect data, Multifactor Leadership Questionnaire (MLQ) a standard instrument & KIIs were utilized. Both quantitative and qualitative data analysis was employed. The finding of this study revealed that transformational leadership style was prevailing leadership style with the mean value of 3.40 & laissez-fair leadership style with 2.04 mean values respectively. Added to this, Pearson correlation analysis result shows that there is moderate positive correlation between transformational leadership style & employee engagement was indicated with r = .4311**, p = .008 < 0.01). Likewise, there is weak negative correlation between laissez-faire leadership style & employee engagement with r = -.246*, p = .015 < 0.05). The regression analysis shows that transformational leadership style have been shown a positive and significant effect on the employee engagement (β = 0.635, p=0.000). The qualitative result shows that employees’ should be part of the decision making process, employee should be supervised, new employees should be guided, the leader should clarify procedures. Factors such as working expectation, lack of giving recognition, poor working condition, low benefit packages, unhealthy relationship between leadership have affected employees’ engagement. As a result, they indicated loss of passion for doing job and think of leaving for better job. Therefore, the bank should make its employees more engaged by improving working conditions, making materials and instruments available, recognizing employees’ best performance by providing necessary answers to the questions of employees such as promotion, raise in salary and training opportunities
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Keywords
Leadership Style, Transformational Leadership Style, Transactional Leadership Style