Identification of Effective Leadership Indicators in Ghanaian Retail Banks Using AMOS Based Confirmatory Factor Analysis

Abstract

In the light of the importance of banks to the economic growth process in Ghana, this study sought to identify the determinants of effective leadership style that is appreciated by employees in retail banking firms in Ghana, towards providing practitioners with crucial information that could enable them make informed decisions towards improving the workplace. Using data collected from employees in eleven firms which were analyzed using the AMOS programme, minimum was achieved for the leadership measurement model and the goodness of fit statistics showed that the overall model fit quite well to the data. Based on the findings from both factor analysis and Confirmatory factor analysis, the study established that managers of retail banks in Ghana could be perceived by their employees as good leaders if they give employees full credit for the work that they do. Handling employee issues very well and taking care of their complaints as well as putting in place systems for enhancing employees’ career advancement into specialist departments or management positions are also perceived as good determinant of leadership. It is therefore hypothesized that managers of retail banks in Ghana could be perceived as good leaders by employees if they are seen as giving employees full credit for the work that they employees do at the workplace, handling employee issues very well and taking care of complaints brought up by employees, as well as putting in place systems for enhancing employees’ career advancement into specialist departments or management positions are also perceived as good leaders.