Effect of Leadership Style Practices on Employee Motivation in Case of Commercial Bank of Ethiopia Nekemte District

Abstract

The purpose of the study was to investigate the effect of leadership style on employee motivation in Commercial Bank of Ethiopia Nekemte District. This study has employed explanatory research design in order to estimate the employee motivation from the three leadership style. It was designed to evaluate the extent of the three leadership style (autocratic, democratic, laissez-faire leadership) prediction about the employee motivation. The five point Likert scale questionnaires was used as the main data gathering tool. In order to meet the objective, the researcher was used simple random sampling techniques and data were collected from 197 participants. The collected data were analysed using mean, standard deviation; correlation and multiple linear regression analysis. The correlation coefficient finding has shown that the three explanatory variables (autocratic, democratic, laissez-faire leadership) have strong and positive relation with employee motivation in Commercial Bank. The R square result of the model has shown that, all the explanatory variables have significant effect on employee motivation and from these explanatory variables the democratic was find to be the main predictor of employee motivation in the Commercial Bank. Hereafter, it is beneficial, if the leaders and other stakeholder in the Commercial Bank are strongly recommended to exercise more democratic, leadership in this institution followed by laissez-faire and autocratic leadership in Commercial Bank.

Keywords: Autocratic, Democratic, Laissez-faire and employee motivation

DOI: 10.7176/IEL/11-3-01

Publication date:October 31^st 2021