Abstract

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 was 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 employees’ commitment. Employee Motivation Questionnaire developed from Herzberg’s Two-Factor Theory and from the Job Design measured employees’ 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.

Key words: Banking consolidation, merger, financial institution.