The Effect Of Leadership Style On Employees Commitment In Nib International Bank S.co

The research project examines the effect of transformational, transactional and laissez-faire leadership style and the three dimensions of employee’s affective, continuance and normative commitment. The main objective of this study was the effect of leadership style on employee’s commitment in Nib International Bank S.co. Both primary and secondary data were used to overcome the research objective. Multifactor Leadership Questionnaire (MLQ) and Organizational Commitment Questionnaire (OCQ) were used to collect the primary data to measure leadership style and employee’s commitment. The secondary data used for review literature and used as reference to manage the overall research. 141sample selected from the target population with stratified sampling technique based on the bank employed categorically classified the already in four district to manage the branch performance and the sample comprise only Branch manager, Customer service manager and Branch accountant of the Nib International bank S.co in Addis Ababa area. Qualitative survey research approach was conducted in the study to analysis and interpretation. Both descriptive and inferential statistics utilized to measure the relation and effect of leadership style on employment commitment. The result of descriptive statistics revealed that transformational and transactional leadership styles were more practiced in Nib International Bank S.co. On the other hand inferential statistic result of regression analysis showed that transformational and laissez-faire leadership styles were direct and significantly affects the employee’s commitment, where as transactional leadership style results relate negatively and insignificant to employee’s commitment in Nib International Bank S.co. On both statistical tools transformational leadership style was strong relationship with employee’s commitment. The findings recommend that Nib international bank s.co should minimized the effects of laissez-faire leadership style because theoretically and other studies revealed that it does not bring employee’s organizational commitment

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