Examining The Effects Of Leadership Styles On Turnover Intention And Perceived Organizational Justice: Evidence From Public Hospitals In Hawassa Town, Ethiopia

Abstract

The proposed work addresses the problem of high rate at which the number of employees being replaced by the organization in a certain period. This affects quality of care of patients and smooth functioning of an organization. This work focuses primarily on how various leadership styles affect employees that lead them to leave their jobs from public hospital in Hawassa Town, Ethiopia. A survey was conducted on 384 healthcare workers to look at different leadership styles such as transformational leaders, transactional leaders and laissezfaire leaders on the rate of employees being replaced. The survey also evaluated how fairness in terms of PayScale, rules and regulations and behaviour at workplace plays a mediator between the style of leader and rate of employees being replaced. The study carried out using structural equation modelling, depicts that the transformational leadership styles strongly reduce the employees desire to leave the organization with β = -0.42, p < 0.001 and makes them feel that their workplace is fair with β = 0.58, p < 0.001. In contrast to the transformational leadership style, laissezfaire leadership style depicted high desire of employees leaving organization with β = 0.36, p < 0.001 and more insecurity in  organization with β = -0.51, p < 0.001. Thus, it shows that justice and fairness in an organization moderately bridges this gap of 34% variation in leadership style and number of employees getting replaced in the organization. The results indicate that training the higher management officials with transformational leadership style for Ethiopian hospitals, will aid in less rate of employees leaving the organization, and subsequently smooth running of the organization.