Leadership style, employee motivation and commitment: Empirical evidence from a consolidated retail bank operating in a depressed economy

The study investigated the relationship between different leadership styles and employee motivation and commitment after a merger in a retail bank operating in an economically volatile environment. Data were collected from 121 employees (17 managers and 104 non-managerial) using three closed-ended questionnaires. The Multifactor Leadership Questionnaire Form 5X was used to measure leadership styles and the Organisational Commitment Questionnaire was used to measure employeesʹ commitment. Employee Motivation Questionnaire developed from Herzbergʹs Two-Factor Theory and from the Job Design measured employeesʹ motivation. Using measures of central tendency and correlation analyses, results indicated weak but significantly positive relationship between different leadership styles and employee motivation and commitment. The advantage of this study is that it can provide a practical framework for designing management systems that can be used by other financial institutions in depressed economies in the future.