The Influence of Leadership on Employee Retention in Tanzania Commercial Banks

Kelvin M Mwita, Eliza Mwakasangula, Oscar Tefurukwa

Abstract


Leadership is one of important aspects in any form of activity that involves people. Leadership may make employees either stay or leave the organisation hence it becomes one of factors that influence employee retention. Organisations spend and invest a lot in their employees and this starts from recruitment and selection, training and development, compensation and other Human Resource Management functions. This entails that letting an employee leave your organisation is a costly decision one can ever make. Various studies done in Tanzania have been investigating employee retention by associating it with other factors such as salaries, working hours, training and development, working environment and promotion among others. This study examined the link between leadership and employee retention. The study used Akiba Commercial Bank (Buguruni Branch) and Tanzania Postal Bank (Morogoro Branch) as the study cases and data were collected using questionnaires. Linear regression analysis was employed to examine the relationship between the variables. It was found that there is significant linear relationship between leadership and employee retention in Tanzania commercial banks. The study recommends provision of training to bank managers and supervisors on leadership skills since managing and leading go hand in hand. It further reminds managers and supervisors to seek for feedback from their subordinates on how they perceive leadership styles used in respective banks and make improvements before the employees decide to leave.


Full Text:

PDF

References


Abbas, W., & Asghar, I. (2010). The Role of Leadership In Organisational Change: Relating the Successful Organisational change to Visionary and Innovative Leadership. Master Thesis: University of Gavle.

Ahmad, K., & Azumah, K. K. (2012). Employee Retention Strategies: The Case of a Patent Firm in Australia. Master Thesis: Blekinge Institute of Technology.

Das, B. L., & Baruah, M. (2013). Employee Retention: A Review of Literature. IOSR Journal of Business and Management, 14(2), 08-16. https://doi.org/10.9790/487X-1420816

Delice, A. (2010). The Sampling Issues in Quantitative Research. Marmara University Faculty of Atatürk Education.

Enu, K. F., Koomson, F., Segbenya, M., Annan, P. E.C. (2014).Determinants of Employee Retention in Ghana Commercial Bank, Kumasi. European Journal of Contemporary Economics and Management, 1(1), 81-91.

Khalid, N., Pahi, M. H., & Ahmed, U. (2016). Losing Your Best Talent: Can Leadership Retain Employees? The Dilemma of the Banking Sector of Hyderabad Sindh, Pakistan: A Mediation Investigation. International Review of Management and Marketing, 6(3), 608-616.

Kweka, N., & Sedoyeka, E. (2014). Labor Turnover in Tanzania – Telecom vs Banking Sectors. International Journal of Computing and ICT Research, 8(2), 65-82.

Long, C. S., Thean, L. Y., Ismail, W. K., & Jusoh, A. (2012). Leadership Styles and Employees’ Turnover Intention: Exploratory Study of Academic Staff in a Malaysian College. World Applied Sciences Journal, 19(4), 575-581.

Mbwana, E. G. (2013). Factors Influencing Employees’ Turnover in The Banking Industry: The Case of The National Microfinance Bank (NMB). Master Dissertation: The Open University of Tanzania.

Middleton, J., Harvey, S., & Esaki, N. (2015). Transformational Leadership and Organisational Change: How Do Leaders Approach Trauma-Informed Organisational Change…Twice? The Journal of Contemporary Social Services, 96(3), 155–163.

Mugenda, A., & Mugenda, O. (2003). Research Methods Quantitative and Qualitative Approaches. (3rd Ed.). Nairobi: Acts Press Publishers.

Mwinyimvua, A. M (2013). Factors Promoting Labour Turnover at the Commercial Banks: NBC Bank And Stanbic Bank In Dar Es Salaam City. Master dissertation: Mzumbe University

Mwita, G. T. (2013). Labour Turnover in the Banking Sector in Tanzania: A Case Study of National Bank of Commerce (NBC) Head Office. Master’s Thesis: The Open University of Tanzania.

Ng’ete, J. M., Namusonge, G. S., & Iravo, M. A. (2012). Influence of Leadership Style on Academic Staff Retention in Public Universities in Kenya. International Journal of Business and Social Science, 3(21), 297-302.

Nwokocha, I., & Iheriohanma, E. B. J. (2015). Nexus between Leadership Styles, Employee Retention and Performance in Organisations in Nigeria. European Scientific Journal, 11(13), 185-209.

Odumeru, J. A., & Ogbonna, I. G. (2013). Transformational vs. Transactional Leadership Theories: Evidence in Literature. International Review of Management and Business Research, 2(2), 355-361.

Sandhya, K., & Kumar, D. P. (2011). Employee retention by motivation. Indian Journal of Science and Technology, 4(12), 1778-1782.

Sekaran, U. (2003). Research Methods for Business: A Skill-Building Approach. New York: John Wiley & Sons Inc.

Sharma, M. K., & Jain, S. (2013). Leadership Management: Principles, Models and Theories. Global Journal of Management and Business Studies, 3(3), 309-318.

Silva, A. (2016). What is Leadership? Journal of Business Studies Quarterly, 8(1), 1-5.

Strengths and Weaknesses. International Journal of Social Science & Interdisciplinary Research, 2(3), 155-160.

Sureshi, A., & Rajini, J. (2013). Transformational Leadership Approach in Organisations – Its Strengths and Weaknesses. International Journal of Social Science & Interdisciplinary Research, 2(3), 155-160

Winston, B. E. & Patterson, K. (2006). An Integrative Definition of Leadership. International Journal of Leadership Studies, 1(2), 6-66.

Zaccaro, S. J., & Klimoski, R. J. (2001). The Nature of Organisational Leadership: An Introduction: San Fransisco: Jossey-Bass.




DOI: https://doi.org/10.5296/ijhrs.v8i2.12922

To make sure that you can receive messages from us, please add the 'macrothink.org' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.

Copyright © Macrothink Institute   ISSN 2162-3058

'Macrothink Institute' is a trademark of Macrothink Institute, Inc.