Exploring the Effects of Transformational Leadership on Organizational Culture within the Landscape of Private Higher Education in Ethiopia

Zelalem Tesfaye; Arvinder Singh Chawla

Abstract

This research examines the association between the leadership style known as “transformational” and the development of organizational culture within private higher education institutions in Ethiopia. An explanatory study with a quantitative approach surveyed 301 employees (systematically chosen) to analyze the effect of leadership behaviors on organizational culture. Analyzing the data (via SPSS) using multiple linear regression revealed that idealized influence, inspirational motivation, intellectual stimulation, and individual consideration all contribute to shaping the private higher education environment, with idealized influence playing the most significant role. Leaders in private higher educational institutions faced limitations in attending informal events, taking responsibility for employees, and fostering team cohesion, resulting in a low organizational culture. Likewise, leaders exhibited an insufficient commitment to encouraging alternative problem-solving and swift task accomplishment. The lack of employee participation in decision-making, unclear delegation of tasks, and failure to provide opportunities for new tasks contributed to low organizational culture. Therefore, the researcher recommends leaders encourage alternative solutions, enhance teamwork, involve employees in decision-making, address personal rights, appreciate hardworking employees, and provide opportunities for new tasks to improve organizational culture. The study also revealed that leaders demonstrated a limited commitment to fostering innovative problem-solving techniques and ensuring efficient completion of tasks. A lack of substantial employee involvement in decision-making, inadequate acknowledgment of individual contributions, and insufficient motivation for employees to embrace new responsibilities emerged as significant obstacles undermining the institutional culture. In light of these insights