Leadership` Style: A boon or bane in Banking Sector

Abstract

Purpose: The objective is to analyse the factors influencing the leadership style that helps in retaining staff in banking sectors.

Design/Methodology: A structured questionnaire was administered to collect the information from the employees working across private sector banks operating in urban Bangalore through cluster sampling method to arrive at a sample size of 150. Staff retention and leadership variables were considered to validate the hypothesis using SPSS V.21 through Exploratory Factor Analysis.

Findings: The three important influencing factors that have positive effect on staff retention based on the leadership styles are HRM Policy, Organizational environment and Employee engagement. Problem solving leadership style is the type considered to examine the important factors influencing the retention strategies adopted by the banking sector in context to the leadership style as most of the managers among the banks fall under this category based on the employee responses collected.

Original Value: Leadership is a practical skill encompassing the ability of an individual who can influence or guide a group of subordinates in an organization. It is an art of motivating a group of employees to act towards achieving a specific goal in the business arena. It includes the process of directing workers and colleagues with a strategy to meet the requirements of the business through human assistants.