Leadership style and organizational commitment in National Union of Bank Employees (NUBE)

Abstract

Effective leadership always plays a vital role in enhancing the commitment of the employees in organization. The purpose of this study is to examine the relationship between transformational and transactional leadership styles and organizational commitment. Besides that, the study also intended to identify the most appropriate leadership style that contributes to organizational commitment. The research was conducted at National Union of Bank Employees (NUBE). About 327 union members participated in this research. Two research instruments were used to obtain the data. The multifactor leadership questionnaire (MLQ) developed by Bass is used to measure leadership style practiced by the leaders in National Union of Bank Employees (NUBE). In addition, Porter have proposed organizational commitment questionnaire (OCQ) to measure the commitment of members in the organization. The data collected were analyzed using the descriptive statistics which are the mean, Pearson correlation coefficient and the multiple regressions. The results show that both transformational and transactional leadership styles have positive and significant relationship on organizational commitment, which means the more the leaders practice transformational and transactional leadership styles, the more committed they will be in the organization. The results further explain that the leaders, in fact practice more of transformational leadership style compared to the transactional leadership style. Besides that, the study has proved that the transformational leadership style contributes more to organizational commitment in the union. Based on the results obtained, the researcher has made a few recommendations to the union and also for future researchers who might be interested to further their study in transformational and transactional leadership styles.