Transformational Leadership and Employee Commitment in Commercial Banks in Port Harcourt, Nigeria

Reference code: MG022

ABSTRACT

This study investigated the relationship between transformational leadership and employee commitment in Nigerian banks.  The research is a survey/cross-sectional, hence questionnaire were developed and sample size were determined.  The research instruments were tested for validity and reliability.  Two hundred and ninety-three (293) copies of questionnaire were distributed among the respondents and two hundred and eighty-five (285) of the copies questionnaire were returned.  Structured questions were presented in the questionnaire. Pearson’s product moment correlation coefficient (PPMCC) with the statistical package for social science (SPSS) was adopted for analysis of data.  Six hypotheses were stated in null form and tested.  Findings revealed that there is positive and significant relationship between idealized influence, between intellectual stimulation, between individualized consideration with continuance and normative commitment.  It therefore concluded that transformational leadership dimensions have significant influence on employees commitment measures.  Hence, we recommended that organizations should provide an enabling and conducive environment that will help managers exhibit transformational leadership style that will promote employee commitment. 

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.  ..........

TABLE OF CONTENT

Chapter 1: Introduction
1.1 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 of Findings 71
5.2 Conclusion 72
5.3 Recommendations 73
5.4 Contribution to Knowledge 54
References 75
Appendix A
Appendix B
Appendix C
Appendix D


Reference code: MG022
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Reference code: MG022

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