THE EFFECT OF LEADERSHIP ON EMPLOYEE COMMITMENT IN AWASH WINE SHARE COMPANY AT ADDIS ABABA

Abstract

Leadership and the different associated styles have an immense impact on how employees commitment, and leads positive organisational outcomes. The purpose of this study would be to investigate the impact of leadership style on employee’s commitment and to forward the possible solution to the concerned bodies. This study was used a descriptive research method. To achieve the overall objectives of the study consisted of a qualitative and quantitative method to analyse the effect of leadership on employee commitment in Awash Wine Share Company. A Researcher had selected 64 samples from AWSC. Questionnaire and interview were the main data collection instruments. Awash Wine Share Company was implemented and practiced mostly transformational leadership style and transactional leadership style. These leadership styles were best for respondents in Awash Wine Share Company. Employees absenteeism from work place was the major problem faced AWSC and the main reason for their absences was uncomfortable work environment and take its first rank. The other reasons were low salary payment and inappropriate treatment of employees by leaders. The other problem faced AWSC was high rate of staff turnover. Only few staffs were retained in their organization AWSC. AWSC exercise laissez-faire leadership style, transformational leadership style, transactional leadership style and democratic leadership style. But it does not exercise autocratic leadership style. Therefore, AWSC used contingency approach of leadership style. The most types of employees commitment to AWSC was affective commitment and continuance commitment but was not normative commitment. AWSC should create conducive work environment to reduce employee’s absenteeism and to increase employee’s commitment. The other solution for employee’s absenteeism should be revision of employee’s salary scale and appropriate treatment of employees by their leader. The major problem faced AWSC was high rate of staff turnover. Therefore, the company should investigate the problem deliberately and take corrective actions based on the investigation made by professionals. Therefore, most types of employee’s commitment in AWSC were affective commitment and continuance commitment. The most employees’ commitment in AWSC was not normative commitment. So, the AWSC should plan how to produce normative committed employees.