the effect of transformational leadership style on employees' commitment in the case of commercial bank of Ethiopia, Addis Ababa around the kazanches branch

The main objective of the study was to examine the effect of transformational leadership style on employee’s organizational commitment at the Commercial Bank of Ethiopia. To achieve the purpose, the study employs both descriptive and explanatory research design, and mixed research approaches by focusing on Commercial Bank of Ethiopia’s employees with a sample of 158. Quantitative and qualitative data were gathered through interviews and questionnaires and then analyzed using inferential and descriptive statistics using the IBM SPSS 24 version. Multiple linear regression models and hypothesis tests were used to show the effects of transformational leadership style on the employee’s organizational commitment. The major findings of the research revealed that the majority of transformational leaders made necessary participation of employees in decision-making, built trust by avoiding overly specific instructions and close supervision, were willing to take risks, and accepted responsibility for any problems that arose in the bank, and give freedom to bank’s employees to solve problems that arose in the bank, visionaries, and hard workers to create followers, guide their employee without pressure and work together with employees as well as lead the bank. Therefore, the management of the commercial banks of Ethiopia should maximize transformational leadership style to identify the critical factors that influence the success of its members and any potential corrective actions (such as goal-oriented training, motivation, and performance evaluation) that may be implemented. Corporate managers should employ a range of transformational leadership styles while keeping in mind the particular circumstances and complexity of the work duties they have assigned to their employees and replacing ineffective leaders with competent ones, is crucial for enhancing employees’ organizational commitment.