The effect of leadership on employee commitment in FPT distribution company : A full range leadership approach

Abstract

This research investigates the relationship between leadership styles and different types of employee commitment in FPT Distribution Company. The literature provided discusses the leadership and employee commitment.

Information was gathered, using two instruments, from a sample of 210 raters. The Multifactor Leadership Questionnaire, which was formulated from Bass and Avolio‟s (1997) Full Range Leadership Development Theory, was used to determine leadership style within the organisation. Employee commitment was captured using Meyer and Allen‟s (1997) Organisational Commitment including Three-Component Model of employee commitment. Leadership was identified as the independent variable and organisational commitment as the dependent variable. Data obtained from each of the research instruments was then statistically processed in data analysis in order to refine and operationalize the conceptual model and to investigate the relative effects of the various factors. Result of data processing indicated that there are three factors affect employees‟ continuance and affective commitment such as personal motivation, idealized influence and contingent reward. In which personal motivation and contingent reward is the key factor and idealized influence is an important factor have an impact on employee commitment.

The analysis emphasizes the importance of increasing level of employee commitment to the organization by increasing rewards, often reviewing salaries or building mutual trust between leaders and subordinates.

Keywords: employee commitment, leadership