PRACTICES AND CHALLENGES OF ORGANIZATIONAL LEADERSHIP AT NIB INTERNATIONAL BANK S.C

Abstract

This study was aimed to investigate the Practices and Challenges of Organizational Leadership at NIB International Bank S.C. The findings of the study underline the significance of democratic leadership in terms of its positive correlation with employees’ job performance. Contrary to this, in the study autocratic leadership was found to have negative association with employees’ job performance. The study also points out the major leadership challenges such as workers’ inclination to stick to old habits and their tendency of change resistance. As shown in the study, the bank tried its best to tackle the stated challenges through different mechanisms like rewarding, assessing the degree and effectiveness of the outcomes against the pre-fixed goals and motivating soundly integrated teamwork. However, though these remedies contribute much to the well-being of the bank, they alone couldn’t make it attain the intended target. This is because the bank’s initiation and commitment to involve employees at different level (particularly the subordinates) in its goal setting, authority delegation, team formation, administer coaching and manner of communicating the established vision is weak. Therefore, on the basis of the findings of the study, it was recommended that the concerned bodies should strive for applying democratic leadership style in line with giving ample space for employees to engage in various phases (from planning to practicing) of the bank’s activities. The researcher used descriptive type of research. In order to strengthen the findings of the study, an attempt was made to implement both primary and secondary data. The principal instrument applied in this research was questionnaire; thus, structured questionnaires were distributed for 43 managerial and 264 non-managerial employees of the bank and the response rate was 93% managerial and 91% non- managerial employees. Consequently, the data were analyzed and interpreted quantitatively. Therefore, further study is needed to analyze the relationship of leadership style, leadership performance and employees attitude in private banks in Ethiopia.