ABSTRACT
This study investigated the relationship between transformational leadership and employee’s commitment of deposit money banks in Port Harcourt Nigeria. Idealized influence, intellectual stimulation and individualized consideration were conceptualized as the dimensions of transformational leadership. While continuance commitment and normative commitment were used as the measures of employee commitment. Based on the conceptual framework, the researcher answered seven (7) research questions and seven (7) hypotheses in order to ascertain the degree of positive relationship between transformational leadership and employee’s commitment. Upper echelon was the baseline theory adopted as the theoretical foundation for the study. The researcher employed cross-sectional survey research design. A total of two hundred and ninety-three (293) were drawn from a population of one thousand, one hundred (1,100) across the eighteen (18) deposit money banks in Port Harcourt. Nigeria. The questionnaire went through face validity, and content validity test while cronbach alpha was used to test for reliability of the research instrument. The data collected was analyzed at different levels for primary level data, descriptive analytical tools mainly frequency tables supported with chats was used for demographics and descriptive statistics was employed for univariate analysis of data, while the secondary data analysis, inferential statistical tool Person Product Moment Correlation Coefficient with the assistance of Statistical Package for Social Science was adopted for Bivariate data analysis. Partial Correlation was adopted to test the moderating influence of corporate culture on the association between transformational leadership and employee’s commitment. Seven hypotheses were stated in null form and tested. The result of the findings revealed that idealized influence, intellectual stimulation and individualized consideration relates with continuance and normative commitment respectively. Based on the findings, the researcher therefore concluded that transformational leadership leads to employee’s commitment of deposit money banks in Port Harcourt. Hence, we recommends that organizations should provide an enabling and conductive environment that will help managers exhibit transformational leadership style that will enhance employee commitment in deposit money banks in Port Harcourt, Nigeria.INTRODUCTION
The world economic and political orders are changing rapidly. Evolutionary changes are taking place at revolutionary speed, largely pushed by strong external forces, arising out of a desire to increasing competitiveness and efficiency (Geringer et al, 2002). The recent liberalization and bold economic reforms pronounced by government have thrown up many challenges and opportunities to the industry with the explosion in the information technology, increased global competition, rapidly changing market deregulation (Shahnawaz and Rakesh, 2006). Expectedly, therefore, the increasingly higher commitment needed by organizations from its workforce will help managers to achieve organizational goals in order to remain competitive in the business. Organizations, especially those established for profit motives are constantly faced with serious competition for resource and market, with the resources mostly in the area of human capital needed to drive the organizational goals.To understand the critical important of people in the organization is to recognize that the human element and the organization are synonymous and well managed organization usually sees an average worker as the root source of quality and productivity gains (Adeyinka et al, 2007). Such organizations do not look at capital investment, but to employees as the fundamental source of improvement (Adeyinka et al, 2007).
An organization is effective to the degree to which it achieves its goals. An effective organization will make sure that there is a spirit of cooperation and sense of commitment and satisfaction within the sphere of its influence. (Adeyinka et al, 2007).
Adeyinka et al, 2007 equally argues that to make employees satisfied and committed to their jobs and by extension to the organization will require the need for strong and effective motivation at the various levels, departments and sections of the organization. To this end, managers and management researchers have long believed that organizational goals are unattainable without the enduring commitment of members of the organizations (Adeyinka et al, 2007).
A wide variety of definitions and measure of employee commitment exist. Beckeri, Randal and Riegel (1995) defined the term in three stages firstly, a desire to remain a member of a particular organization, secondly, a willingness to exert high levels of efforts on behalf of the organization and thirdly belief in and acceptability of the values and goals of the organization. These measures of commitment were presented by Allen and Meyer (1991) as affective, continuance and normative commitments.
To Northcraft & Neale (1996), commitment is an attitude reflecting an employee’s loyalty to the organization, and an ongoing process through which organization members express their concern for the organization and its continued success and well being.
Mowdays, Porter & Steer (1982) see commitment as attachment and loyalty. These authors described three components of commitment to include, identification with the goals and values of the organization; a desire to belong to the organization; and willingness to display effort on behalf of the organization.
A similar definition of commitment emphasizes the importance of behaviour in creating it. Salancik (1977) conceives commitment as a state of being in which an individual becomes bound by his action and it is these actions that sustain his activities and involvement. From this definition, it can be interred that three features of behaviour are important in binding individuals to act; namely, visibility of acts, the extent to which the outcomes are irrevocable; and the degree to which the person undertakes the action voluntarily. To Salancik, commitment can be increased and harnessed to obtain support for the organizational ends and interests through such things as participation in decision making.
Adeyinka Ayeni & Popoola (2007) strongly argues that there exist a positive relationship between work motivation, job satisfaction and employee commitment.
Luthan (1998) asserts that motivation is the process that arouses, energizes, directs, and sustain behaviour and performance. That is, it is the process of stimulating people to action and to achieve a desired tasks. One way of stimulating people is to employ effective motivation which makes workers more satisfied with and committed to their jobs. Money is not the only motivator. There are other incentives which can also serve as motivators. Specific employee attitudes relating to job satisfaction and employee commitment are of major interest to the field of organizational behaviour and the practice of human resources management. Attitude has direct impact on job satisfaction. Employee commitment on the hand, focuses on their attitude towards the entire organization.
Although a strong relationship between satisfaction and commitment has been found, more recent research gives more support to the idea that commitment causes satisfaction. However, most studies treat satisfaction and commitment differently, especially in the light of things like downsizing that are part of modern organization (Adeyinka et al 2007). Based on the multidimensional nature of employee commitment, there is growing support for a three – component model proposed by Meyer and Allen (1991). All the three components have implications for the continuing participation of the individual in the organization. The three components are; Affective commitment which has to do with psychological attachment to the organization, continuance commitment which has to do with the consideration for the cost associated with leaving the organization and Normative commitment which has to do with perceived obligation to remain with the organization. Organizational commitment is largely influenced by organizational policies/practices and organization’s seriousness towards its employees (Shahnawaz & Rakesh, 2006).
TABLE OF CONTENT
CHAPTER 1: INTRODUCTION1.1 Background of the Study 1
1.2 Statement of the Problem 6
1.3 Purpose of the Study 7
1.4 Objectives of the Study 7
1.5 Conceptual Framework 7
1.6 Research Questions 8
1.7 Research Hypotheses 9
1.8 Scope of the Study 9
1.9 Limitation of the Study 10
1.10 Significance of the Study 10
1.11 Definition of Terms 10
CHAPTER 2: REVIEW OF RELATED LITERATURE
2.1 Theoretical Foundation 12
2.2 Concept of Employee Commitment 13
2.3 Measures of Employee Commitment 17
2.3.1 Continuance Commitment 17
2.3.2 Normative Commitment 18
2.4 Concept of Transformational Leadership 19
2.5 Dimensions of Transformational Leadership 27
2.5.1 Idealized Influence 27
2.5.2 Intellectual Stimulation 27
2.5.3 Individualized Consideration 28
2.6 Relationship between Transformational Leadership and Employee
Commitment 28
2.6.1 Criticisms of Transformational Leadership 31
2.6.2 The Future of Transformational Leadership 33
2.6.3 Successful Transformational Leadership 34
2.7 Reviewing Corporate Culture as a Moderating Variable between
Transformational Leadership and Employee Commitment 35
2.8 Operational Framework 37
CHAPTER 3: RESEARCH METHODOLOGY
3.1 Research Design 38
3.2 Population of the Study 38
3.3 Sample Technique and Sample Size Determination 39
3.4 Data Collection Methods and Instruments 41
3.5 Validity Test 41
3.6 Reliability Test 41
3.7 Method of Data Analyses 42
CHAPTER 4: DATA PRESENTATION, ANALYSIS AND DISCUSSION
OF FINDINGS
4.1 Data Presentation 44
4.2 Response Rate Analysis 44
4.3 Analysis of Demographic Characteristics of Respondents 45
4.4 Univariate Data Analyses 52
4.5 Ascertaining the Existence of a Positive Relationship between
Transformational Leadership and Employee’s Commitment using the
Scatter Diagram. 58
4.6 Bivariate Data Analyses 59
4.6.1 Test of Research Hypothesis One 60
4.6.2 Test of Research Hypothesis Two 61
4.6.3 Test of Research Hypothesis Three 62
4.6.4 Test of Research Hypothesis Four 62
4.6.5 Test of Research Hypothesis Five 63
4.6.6 Test of Research Hypothesis Six 64
4.7 Multivariate Analysis 65
4.8 Discussion of Findings 67
CHAPTER 5: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary 71
5.2 Conclusion 72
5.3 Recommendations 73
5.4 Contribution to Knowledge 54
References 75
Appendix A
Appendix B
Reference code: MG019
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Reference code: MG019
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