Abstract:
This paper aims to investigate the role of leadership behaviours on employee commitment in star-rated
hotels in the Bahir Dar City Administration, mediating with organizational culture. The research is
cross-sectional, and the survey method was used. The research employed quantitative and deductive
approaches, and two-tailed Pearson correlation analyses, multiple-regression analysis, SPSS version 26
integrated with Process Macro Version 4.1, and the Sobel test were used to examine the hypothesis. A
sample of 257 responses was collected from fourteen star-rated hotels in Bahir Dar City Administration.
The analysis shows that transformational leadership and participative leadership both have a positive
and significant effect on employee commitment. The findings also indicated that transformational
leadership positively and significantly affects organizational culture. Furthermore, the research found
that organizational culture partially mediates the relationship between leadership behaviours
(transformational leadership and participative leadership) and employee commitment. In the
competitive business environment, retaining skilled and talented employees is a major challenge for the
organization. Numerous studies have looked into the idea that committed workers will stay with the
company for an extended period. Thus, the study adds to the body of literature on predictors of
employee commitment. It is noted that motivating and inspiring the employees to work efficiently and
effectively and establishing a suitable organizational culture creates an effective working environment
for the employees and achieves organizational goals. Hence, there is a need for star-rated hotels to
design and implement strategies to motivate employees to remain in the organization. Because this study
focused on leaders and employees of star-rated hotel firms in Bahir Dar, Ethiopia, the findings cannot
be generalized to all leaders and employees of star-rated hotel firms.