RELATIONSHIP BETWEEN LEADERSHIP STYLE AND EMPLOYEE COMMITMENT IN GOVERNMENTAL HEALTH INSTITUTION; IN CASE OF UNIVERSITY OF GONDAR HOSPITAL

Abstract

Leadership is creating and maintaining a sense of vision, culture and interpersonal relationships. Employee’s organization commitment is an important factor for the sustainable and effective growth of the institution. The purpose of this study was to assess the relationship between leadership style (transformational, transaction and laissez-faire) and employee organizational commitment (affective, normative and continuous) of governmental health institution on UGH. The literature provided discusses the leadership style and organizational commitment. Information was gathered from sample of 283 respondents (9 leaders and 274 employees) health profession and administrative staffs of the institutions. The Multifactor Leadership Questionnaire (MLQ), which was formulated from Bass and Avolio’s (1997) Full Range Leadership Development Theory, which is 36 items and Organizational Commitment Questionnaire (OCQ), which was formulated from Meyer and Allen (1997), which is 12 items. These items are rated using a 5-point Likert scale. Leadership style was identified as the independent variable and organizational commitment as the dependent variable. The findings result of the study employees perception about the transformational and transactional leadership style have strong and significant, positive correlation with affective, normative and continuance commitment. But, no statistically significant correlation between laissez-faire leadership style with affective, normative and continuance commitment. The result of the finding indicates as there is a need for better leadership and management to realize employee commitment as well as upgrading of skills (staff career) and gearing towards results orientation and efficiency. The overall the institution’s leaders should improve the level of employees’ commitment through actually practicing effective type of leadership style and creating conducive environment to employees.