Abstract
The purpose of the study was to study and explain the impact of transformation, transactional and laissez-faire leadership styles on employee motivation and commitment in the banking industry of Nepal. This study would determine different leadership styles used in an organisation and navigate right leadership styles for better employee motivation and commitment for enhancing employee engagement and connection with organisation. This study does not only aim to understanding of leadership in an organisation but also to direct the organisation towards the right direction. The study was conducted with bank employees in Nepal to understand the impact of different leadership styles on employee motivation and commitment. Employees who worked for at least six months in an organisation were considered for study. Employees who have spent significant time in an organisation have been exposed to some basic processes influencing employee commitment and motivation. This study targeted employees who are between the age of 20 to 55. There were 246 participants in the study. However, only 183 respondents were processed for further examination and data analysis since 183 respondents answered all 50 questions. Multifactor Leadership Questionnaire (MLQ), ERG model and organisational commitment questionnaire (OCQ) were used for measuring leadership behaviours, employee motivation and commitment. The quantitative method has been used for interpreting the data. The correlation analysis indicated a significant positive relationship between transformational, transactional, and laissez-faire leadership styles and employee commitment and motivation. The study also demonstrated the influence of age and length of work in an organisation on employee motivation and commitment. This study aims to provide a practical framework for the organisation's management that other financial institutions can use to enhance the smooth and effective operation.