THE EFFECT OF LEADERSHIP STYLE ON EMPLOYEE COMMITMENT IN A PRIVATE HIGHER EDUCATIONAL INSTITUTION IN ADDIS ABABA CITY, IN CASE OF ADMAS UNIVERSITY

Abstract

A leader is defined as a person with the responsibility to influence one or more followers and directing them to achieve a set objective. While doing so, the leader has to be aware of the strength of each of his or her follower and identify the areas to be improved (Bruce et al., 2006). Leadership is creating and maintaining a sense of vision, culture and interpersonal relationships. Employee’s organization commitment is an important factor for the sustainable and effective growth of the institution. The purpose of this study was to assess the effects of leadership style (transformational, transaction and laissez-faire) on employee organizational commitment (affective, normative and continuous) on private higer educational institution in case of admas university. The literature provided discusses the leadership style and organizational commitment. Information was gathered from sample of 211 respondents (10 high level managment 26 middle level managment and 175 employees) These items are rated using a 3 scale. Leadership style was identified as the independent variable and organizational commitment as the dependent variable. The findings result of the study employees perception about the transformational and transactional leadership style have strong and significant, positive correlation with affective, normative and continuance commitment. But, no statistically significant correlation between laissez-faire leadership style with affective, normative and continuance commitment. The result of the finding indicates as there is a need for better leadership and management to realize employee commitment as well as upgrading of skills (staff career) and gearing towards results orientation and efficiency. overall the institution’s leaders should improve the level of employees’ commitment through actually practicing effective type of leadership style and creating conducive environment to employees.