The study investigated the relationship between different leadership styles and employee motivation and commitment after a merger in a retail bank operating in an economically volatile environment. Data were collected from 121 employees (17 managers and 104 non-managerial) using three closed-ended questionnaires. Using measures of central tendency and correlation analyses, results indicated weak but significantly positive relationship between different leadership styles and employee motivation and commitment. The advantage of this study is that it can provide a practical framework for designing management systems that can be used by other financial institutions in depressed economies in the future. Key words: Banking consolidation, merger, financial institution.
INTRODUCTION: During the period between the years 2000 and 2008, the Zimbabwean economy was on the decline. Political instability, bad corporate governance and corruption are cited as reasons for the dwindling economy during that period (The Zimbabwean Herald, 2005). The result was a volatile economic environment characterised by high inflation of about 6.500% which culminated in mergers, acquisitions, retrenchments and a high level of brain drain in almost every sector of the economy. Most notably was the financial sector which suffered from under-capitalisation, instability and bad corporate governance for most of the year 2004 (Zimbabwe Business Watch, 2008). To cushion the banks from the economic meltdown, the government tasked the central bank to revive the declining financial sector. To this effect, in September 2004, a deadline for all financial institutions to declare their capital reserves and show that they had enough liquidity to continue operating was set. Some of the banks were found wanting in this regard. Seven troubled banks were placed under curatorship while four others were liquidated. Such a strategic decision by the... [continues]
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