EFFECT OF LEADERSHIP STYLES ON EMPLOYEES ENGAGEMENT: (THE CASE OF BUNNA INTERNATIONAL BANK S.C. ADDIS ABABA CITY BRANCHES)

Abstract

The purpose of the study is to asses effects of employees‟ engagement in Bunna International Bank s.c Addis Ababa city branches. To achieve this objective mixed research approach and cross-sectional survey research design were used. The study was conducted on 187 sample size and a systematic random sampling technique was employed. The quantitative findings were presented and analysed by table, one way ANOVA independent sample T- test, bivariate correlation and multiple regression model through SPSS software version 20. The finding revealed, employees were moderately agreed on transactional, transformational and laissez fair leadership styles towards (employee’s engagement). There is positive relationship between all independent variables and significant related to (employees engagement) Out of 187 total distributed questionnaires 180 were returned and 7 of the returned were rejected due to missing data while the remaining 180 responses were used for data analysis. Data was analyzed using the Statistical Package for Social Sciences (SPSS). The study employed explanatory research design Correlation and linear regression were used to analyze the relationship and its effect between leadership Style and employees engagement. The regression results showed that both transformational and transactional leadership Styles have significant contribution for employee’s engagement. The study showed that both transactional and transformational leadership styles are the leadership styles usually implemented in the bank. Similarly transformational and transactional leadership style had a positive and strong correlation with employee’s engagement. At last, the result conformed that leadership Style has effect on employee’s engagement. Generally, managers need to improve their behavior to the highest level to improve the employee’s engagement. The researcher recommended that the bank should invest on making the organization a better working environment for all employees.