The nature of the relationship between Leadership Style and its impact on Engagement in the South African Banking Sector

Pillay, Allen Perumal
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The aim of the study was to determine the nature of the relationship between leadership style and engagement and to understand what the drivers of engagement may be. This was envisaged to assist in interventions that may be instituted in order for engagement levels to be increased. The Multifactor Leadership Questionnaire (MLQ) was used to determine the perceived leadership style of the respondent’s manager. The Utrecht Work Engagement Survey (UWES) measured personal levels of engagement, while the Gallup Q12© questionnaire assisted in establishing the contextual drivers of engagement. Leadership style was then used as a variable that moderated the relationship between work resources and employee engagement. Although the research revealed that the transformational leadership style was slightly more dominant than the transactional leadership style, it was found that neither leadership style impacted in any significant way on the relationship between work resources and engagement. Regression, with and without using leadership style as the moderating variable, revealed that work resources predict employee behaviour. Supervisor support emerged as a significant driver of engagement. The research’s value lies in the fact that the results may guide management in understanding the state of its organisation’s environment, and establishing frameworks within which to function so that employees are engaged and ultimately productive. The recommendations proposed in this research revolve around the introduction of effective leadership development programmes and recruitment practices.
MBA thesis - WBS
Leadership styles, Banks and banking