Perceived Leadership Styles and Employee Involvement in Private Sector Commercial Banks of Nepal

Abstract

The objective of this research was to determine if significant relationship exist betweenleadership styles and employee involvement among employees from private sectorcommercial banks of Nepal. This study sampled 124 employees working at 5 commercialbanks of Nepal. Primary data were collected through questionnaire survey. Thuscollected data wereanalyzed using excel and SPSS. The result of this research studyindicated that transformational r (124) =0.708 and charismatic r(124)=0.640 leadershipstyles were effective in positively influencing the levels of employee involvement. Thesub-factors idealized influence, attributed and behavioral; inspirational motivation;individualized consideration; and intellectual stimulation were characteristics thatpromoted intrinsic motivation and increased levels of employee involvement in serviceorganization. Which suggest for enhancing inspirational motivation along with other fivesub-components to increase employee involvement. The test of relationship betweenemployee involvement and transactional leadership produced moderate positivecorrelation of r (124)=0.640. Finally, laissez-faire leadership style is considered as thatleadership style which does not exist in private sector banks of Nepal. Today's leaders arefacing challenge to make the employee engaged. The problems for leaders aredetermining the conditions in which some employees are fully engaged while others arenot. From literature reviews some studies shows that leadership style itself is one of themajor determinants of employee involvement.