The Effect of Leadership Style on Organizational Commitment: Employee Job Satisfaction as a Mediating Effect in Jimma University

Abstract

The study was about the effect of leadership styles on organizational commitment; employee job satisfaction as a mediator variable. It was aimed to investigate the effect of leadership style son organizational commitment: employee job satisfaction as a mediating effect in Jimma University. Both descriptive and explanatory research design were applied. Stratified random sampling technique was used. A quantitative research approach was adopted. The study used primary and secondary data sources. Primary data were gathered through questionnaires whereas secondary data were collected from different documents, employees profile and internet sources. Using the exclusion criteria 6305 population of target were identified from which 376 sample size was taken with 80 % response rate. The data was analyzed using SPSS version 25 and SEM version 23 of AMOS. Both descriptive and inferential analysis were conducted. Transformational leadership has moderate correlation with job satisfaction, affective and normative but, low correlation with continuance commitment. Similarly, transactional leadership has moderate correlation with job satisfaction but, low correlation with all organizational commitment factors. Laissez-faire leadership is insignificant to job satisfaction and affective commitment, but it has low correlation with normative and continuance commitments. Job satisfaction is moderately correlated to affective commitment but, there is low correlation between job satisfaction, normative and continuance commitments. Based on the findings a researcher concludes that transformational leadership being proven as more predictive of employee job satisfaction and organizational commitment. It is recommended that the HR managers of JU should focus their talent management strategy on attracting, developing and retaining transformational leaders which as result in the long-term, could impact the work in a more positive regard as employees become and remain satisfied and committed.