The effect of leadership styles on employee competencies development: evidence from a leading state-owned bank operating in Central Province, Sri Lanka

Abstract

In the modern era dominated by modernization, commercialization and diverse socio-economic changes the financial institutions especially Banks have a vital role to play to meet the demands and the challenges of people. Thus, this study concerns on the effect of the leadership style of Bank Branch Manager on competencies of subordinates and competencies development in banking organizations. Leadership as it is and the Transformational Leadership in particular, has been found to be a key variable affecting performance in organizations by several contemporary researchers.

There is a scarcity of applied research on transformational leadership and employee competencies development variables in the banking business environment in Sri Lankan context. This study addresses this gap and is focused to identify and study the level of specific six competencies among junior managers and middle managers who are working under the supervision of branch manager and the effect of branch head on such competencies development in the banking business environment