Assignement introduction Employee Morale and Mitigating Turnover.pdf

Section 1: Foundation of the Study

Section one of this study comprises foundational information exploring effective

leadership strategies that bank leaders implement in the United States. Leadership styles

and effective leadership approaches by bank leaders have a significant impact on the

banks’ financial performance and employee retention practices (Wegerer, 2018). I

delineate the background of the problem, problem statement, purpose statements, the

nature of the study, the conceptual framework, and the significance of the study in

Section 1. Following the significance of the study, I provide a synthesized, in-depth

review of the professional and academic literature from scholars in the field of banking

leadership. The literature offered crucial information and met the objective of this study,

which was to explore the effective leadership strategies of bank leaders in the United

States.

Background of the Problem

The banking industry is profitable and generates billions of dollars in revenue

yearly (Bureau of Labor Statistics, 2015). The estimated failure rate of leadership in

meeting profitability targets in the banking industry is as high as 60% (Vugt & Ronay,

2014). Improvement in banking industry leadership is crucial in sustaining banks by

effectively leading employees to meet profitability margins. Information on effective

leadership practices can help banking leaders apply such practices and improve

organizational climate. The purpose of this study was to explore strategies bank industry

leaders implement to improve employee morale and mitigate employee turnover. The

banking industry has witnessed many corporate scandals, which may have stemmed from

leadership failures, requiring realignment to regain and retain the trust of customers and

stakeholders (Park, 2016). This study might bring attention to how improved employee

morale and durable retention strategies are conducive to a positive working environment.

Services may expand, productivity may increase, and sustainability may strengthen with

lower turnover costs. When skilled professionals are retained and maintain a stable level

of employee morale, costs may decrease and organizational efficiency increase

(Pampurini & Quaranta, 2018). The goal of this research was to explore leadership and

retention strategies that affect the banking industry. A lack of strategic leadership skills in

the banking industry may jeopardize organizational profitability, performance, and

sustainability (Nisar, Peng, Wang, & Ahmed, 2017). A second goal of this research was

to provide awareness of the lack or deterioration of strategies in the banking industry.

Problem Statement

Poor leadership in the banking industry can lead to low employee morale and high

employee turnover (Carasco-Saul, Kim, & Kim, 2015). In January 2015, employment in

the commercial banking industry decreased by 2.0% (Bureau of Labor Statistics, 2015).

The general business problem is leaders in the banking industry who do not apply

effective leadership skills may experience deteriorating organizational culture and low

employee retention. The specific business problem is that some business leaders in the

banking industry lack effective leadership strategies to improve employee morale and

mitigate employee turnover.

Purpose Statement

The purpose of this qualitative single case study was to explore strategies bank

industry leaders implement to improve employee morale and mitigate employee turnover.

The population for this study included four bank leaders in the United States who have

successfully applied effective leadership to improve morale and mitigate employee

turnover for over five years. The results of this qualitative study may improve bank

functionality and performance, thus fostering a stable workforce that may catalyze local

economies. As a result, bank customers may receive elevated customer service and the

bank organization may achieve lower job turnover, resulting in positive social change in

communities (Lu & Gursoy, 2016).

Nature of the Study

Three types of research methods used by researchers are qualitative, quantitative,

and mixed methods. Researchers use the qualitative method to gain a deeper

understanding of a phenomenon by asking interview questions and exploring additional

evidence related to what a participant may perceive or know about a phenomenon. The

qualitative approach was appropriate for this study, as the intent was to interview

participants and review pertinent and available documentation rather than develop and

examine numerical statistics to explain a phenomenon. Conversely, a quantitative method

is based on the interpretivism philosophy, and a quantitative researcher’s focus is on the

collection and measurement of data as well as on statistical and graphical analysis to

examine variables’ relationships or differences (Saunders, Lewis, & Thornhill, 2015).

The quantitative approach was not appropriate for this doctoral study because I was not

seeking to determine if there is a relationship through testing hypotheses about the

significance of two or more variables relationships or differences. In using mixed

methods, researchers combine qualitative and quantitative methods to gain an in-depth

understanding of a phenomenon (Saunders et al., 2015). This research did not include

quantitative data, however, because I focused on what and how turnover is reduced, not

how much turnover has been reduced. A mixed method approach was therefore

inappropriate for this study.

Three principal designs for a qualitative research study are ethnography,

phenomenology, and single case study. An ethnographic design is a systematic study of a

culture or social group (Saunders et al., 2015). Ethnography was not suitable for this

research because ethnography involves studying cultural behavioral differences and there

were no anticipated cultural indicators that may have impacted banking processes in the

study. Phenomenological researchers explore the meanings of individuals’ past

experiences with the phenomenon (Errasti-Ibarrondo, Jordán, Díez-Del-Corral, &

Arantzamendi, 2018). The phenomenological design was not appropriate for this doctoral

study, because the focus was not on the meanings of lived experiences of individuals.

Using a single case study research design entails exploring issues in an organization

within a confined system, by answering what, why, and how questions about the

phenomenon (Yin, 2018). The single case study researcher has an exceptional level of

flexibility compared to with other qualitative research designs. The qualitative single case

study design was appropriate for this doctoral study as I created new, richer

understandings and interpretations of social contexts by exploring bank leaders’ effective

leadership practices to improve employee morale and mitigate employee turnover.

Research Question

RQ: What effective leadership strategies do business leaders in the banking

industry use to improve employee morale and mitigate employee turnover?

Interview Questions

1. What communication strategies might encourage employee retention?

2. How do you monitor employee job satisfaction?

3. What were the most common issues you discovered among employees for

improving morale to mitigate employee turnover?

4. How has your approach to building employee morale evolved over time?

5. Based upon your experiences, what are some of the benefits of implementing

a turnover reduction strategy?

6. What types of recognition programs, if any, have you implemented to improve

employee morale?

7. What additional information can you provide to help me understand your bank

strategies to improve employee morale and mitigate employee turnover?

Conceptual Framework

The transformational leadership theory was first introduced by J. M. Burns

(1978), who argued that transformational leaders are enthusiastic and passionate

individuals who could inspire positivity into their followers. The concept was later

extended by Bass (1985). Burns illustrated that transformational leaders strive to help

others succeed by aligning followers’ personal perceptions and expectations with those of

the organization (Sahu, Pathardikar, & Kumar, 2018). Bass (1985) augmented the

original idea of transformational leadership by identifying four constructs of

transformational leadership: (a) idealized influence, (b) inspirational motivation, (c)

intellectual stimulation, and (d) individualized consideration (Carleton, Barling, &

Trivisonno, 2018). Idealized influence describes leaders who perform as role models and

mentors to followers. Inspirational motivation enhances team spirit and motivation and

stimulates followers to become committed to and a part of the shared vision in the

organization (Dyer, Godfrey, Jensen, & Bryce, 2016). Intellectual stimulation results

from leadership that encourages followers to be creative and inventive, which positively

affects employee morale. Thoughts and ideas are challenged on all areas on the

leadership spectrum when intellectual stimulation is involved (Dyer et al., 2016). When

followers are intellectually stimulated, they use critical thinking and problem-solving

skills and have higher satisfaction (Sahin, Çubuk & Uslu, 2014). Individual consideration

involves a leader performing as coach and adviser to encourage followers to maximize

their potential (Sahu, Pathardikar, & Kumar, 2018). The transformational leadership

theory assisted my understanding of specific successful strategies for motivations,

inspirations, ideas, and individual considerations that were successful for strengthening

employee commitment.

Operational Definitions

I offer the following operational definitions to provide the reader with knowledge

of some specialized terms used throughout this study.

Banking profitability: Banking profitability is the profit that banks receive in

excess of the cost of running the banking business (Nisar et al., 2017).

Commercial banking industry: The commercial banking industry consists of

banks regulated by the Office of the Comptroller of the Currency, the Federal Reserve

Board, and the Federal Deposit Insurance Corporation (FDIC). Commercial banks

generate revenue by lending to clients deposits received from other clients and businesses

at a given interest rate (Park, 2016).

Effective leadership: Effective leadership involves possessing resourceful

leadership traits. Efficient and effective leadership traits combined with smart business

practices as well as intelligent crafting of infrastructure contributes to a positive working

environment (Fought & Misawa, 2016).

Employee morale: Employee morale is defined as the motions, attitude,

satisfaction, and overall outlook of employees during their time in a workplace

environment (Mistry, Levack, & Johnson, 2015).

Employee turnover: Employee turnover indicates how many workers withdraw

employment from an organization. Employee turnover provides a trajectory to determine

if an organization loses more workers than forecasted (Satoh, Watanabe, & Asakura,

2017).

Strategic leadership: Strategic leadership is a planned type of leadership that

involves managing, motivating, and coaxing staff toward a shared vision it is vital to

implementing change in the banking industry (Parr, Lanza, and Bernthal, 2016).

The global financial crisis: The global financial crisis was initiated with a

universal credit crisis, resulting in the minimization of confidence by United States

investors in the value of subprime mortgages, resulting in a liquidity disaster (deHaan,

2017).

Assumptions, Limitations, and Delimitations

When conducting a study, the assumptions, limitations, and delimitations of the

research must be clear, to convince the reader that the results of the study are impartial

and without exaggeration (Cudziło, Voronina, Dujak, & Koliński, 2018).

Assumptions

Assumptions are nonvalidated components that cannot be supported with tangible

evidence (Lundgren, 2018). The following assumptions affected the study. First, I

assumed the participants have adequate knowledge of the organization’s retention

practices and would respond to the interview questions truthfully, objectively, and to the

best of their ability. To alleviate the risk of deception, each participant signed a consent

form explaining their rights to withdraw or not answer questions at any point during the

research process. Second, I assumed the data collected during the research process would

represent an impartial view of the experiences with the phenomenon of the role of

effective leadership strategies applied by leaders in the banking industry. The third

assumption was the collection of views of the interview participants were a good

representation of the views of leaders in the banking industry.

Limitations

Limitations are weaknesses that serve as a threat to the internal validity of a study

and are not within the control of the researcher (Fussy, 2018). The first limitation of this

study was the inability to generalize the study findings, because of the geographic

location of the study. I interviewed bank leaders in the United States, which may

represent a limitation of the findings. My findings may not be applicable to banking

strategies employed in other countries. Second, there may be biases in the interview

participants’ answers. Bias occurs when the researcher's mental and other discomfort

could pose a threat to the truth value of data obtained and information obtained from data

analyses (Klamer, Bakker, & Gruis, 2017). If the researcher is inadequately prepared to

conduct the field research, and the interview is conducted inappropriately, bias can occur

(Klamer et al., 2017). The degree of empathy researchers have with the population under

study can also introduce a question of bias in the study.

Delimitations

Delimitations are the boundaries of a study that limit the scope (Nagasaka, 2016).

Delimitations for this study involved the number of participants in the study, the

geographic location of the study, and the sector of the industry. First, the number of bank

leaders who participated in the study were required to have a minimum of five years of

leadership experience. I excluded bank leaders with less experience. Second, banks

outside of the United States were beyond of the boundaries for this study. The primary

focus of this study was on the banking industry; other industries were excluded from this

study. Third, I only included one large commercial bank. Large size businesses employ

more than 500 employees. Medium or small banks were not a part of the study.

Significance of the Study

The significance of the study was that bank leaders may identify ways to motivate

employees to perform well and remain with the company. Motivating and retaining

employees may lead to a stable and productive work environment, satisfied customers,

and improved consistency in the exchange of goods and services leading to greater

confidence in banking practices (Sahu et al., 2018).

Contribution to Business Practice

The findings from my study may make a significant contribution to business

practice for business bank leaders, as the leaders may establish strategies to retain and

motivate employees. The findings may lead business bank leaders and managers to

reevaluate their organizations’ talent retention strategies and leadership activities to

inspire employees through transformational leadership (Carleton et al., 2018). The

findings from this study may inspire bank leaders to develop and adapt methods and

strategies for talent retention, which may increase organizational performance for banks

in the United States.

Implications for Social Change

The results of the study may contribute to positive social change because society

may benefit from an improved banking intermediation system that might support the

employment retention and improvement of citizens’ livelihoods for supporting

communities. Leaders might be able to leverage my study results for a greater

understanding of effective leadership strategies for retaining employees who would be

able to contribute to social change. The findings from this study may contribute to social

change by stabilizing and strengthening the local economy, thereby contributing

positively to the surrounding communities and society.

A Review of the Professional and Academic Literature

The purpose of this single case study was to explore strategies bank leaders

implement to improve employee morale and mitigate employee turnover. The loss of

talented banking employees can jeopardize the future of commercial banks because of the

uncertainty and volatility in the banking industry (Rezaee & Jafari, 2017). When

employee turnover intention is elevated and employers must work to rehire new

employees, it results in organizational talent loss and reduced profits, affecting the overall

performance of an organization (Shanafelt & Noseworthy, 2017).

The purpose of this literature review was to provide the reader with knowledge

about the overall topic of effective leadership skills that bank leaders use to improve

employee morale and mitigate employee turnover. This literature review consists of three

sections including leadership theory, the effect of strategic leadership on employees, and

transition to banking business. The leadership theory section contains an overview of

leadership theory and information on (a) transformational leadership, (b) transactional

leadership, (c) servant leadership, and (d) laissez-faire leadership. The section on the

effect of strategic leadership on employees contains information about (a) effective

leadership, (b) strategic leadership, (c) employee morale, and (d) employee turnover. The

transition to banking business section contains information on (a) nourishing growth in

banks, (b) enabling effective leadership in banks, (c) the global financial crisis and

leadership, and (d) the commercial banking industry.

Most of the literature review information is from academic peer-reviewed articles.

I used search terms such as banking profitability, commercial banking industry, effective

leadership, employee morale, employee turnover, strategic leadership, the global

financial crisis, and the transformational leadership theory. I searched for these terms

using various business databases such as Business Source Complete, Emerald

Management, ABI/INFORM Complete, and SAGE Premier. I also used search engines

such as ScienceDirect, ProQuest Central, Expanded Academic ASAP, and Academic

Search Complete to find information. Other materials gathered during the research

included government publications and books. Of the 193 references, 163 (85%) were

published within five years (2015-2019) of the expected CAO approval of my completed

study. Ninety-six percent of the total references were peer-reviewed. I ensured that the

percentages complied with DBA doctoral study requirements.

Leadership Theory

Carasco-Saul et al. (2015) announced that the leadership theory is one of the most

complex groups of theories to understand. Nevertheless, the leadership theory is one of

the most important and desired topics to research. The leadership theory provides

numerous organizations who are seeking soft skills the ability to build relationships with

followers, harness effective communication skills, and take initiative (Beenen, 2016).

Empirical research has grouped leadership theories into multiple categories including trait

theories, behavioral theories, contingency theories, and modern contemporary theories

(Carasco-Saul et al., 2015). The literature surrounding leadership theories continue to

evolve. In the 20th century, trait theories, also known as “great man” theories, were

developed to focus on the innate qualities of leaders (Carasco-Saul et al., 2015). The

earlier theories are being replaced by contemporary theories, which are elaborated on in

this section.

Many organizations have attempted to define what leadership traits are necessary

to be an effective leader. Leadership is considered one of the most controversial research

topics and issuing a single definition of the concept might cause confusion, as the concept

is not a “one size fits all” approach. Bass (1985) proclaimed that the search for one

central definition of leadership would serve no purpose. In the subsequent sections of the

literature review, I focused on four specific leadership styles: transformational,

transactional, servant, and laissez-faire leadership. These theories were chosen over other

theories to research because they related better to the effectiveness of leadership practices

in the banking industry.

Transformational leadership. The transformational leadership theory was first

introduced by J. M. Burns (1978) who argued that transformational leaders are

enthusiastic and passionate individuals who could inspire positivity into their followers.

The concept was later extended by Bass (1985), Karakitapoglu-Aygun and Gumusluoglu

(2013) and Sahin et al. (2014). Burns illustrated that transformational leaders strive to

help others succeed by aligning followers’ personal perceptions and expectations with

those of the organization. Li, Mitchell, and Boyle (2016) aligned with Burns’ and Bass’

argument of the transformational leadership approach, which distinguished that

transformational leadership results in transforming the insights, values, and ambitions of

followers. Added value is the result of implementing transformational leadership

practices. Oppong, Chan, and Dansoh (2017) proclaimed that transformational leadership

is the fulcrum of being able to effectively articulate and motivate followers to achieve

their vision and energize their goals.

Transformational leaders appeal to followers and can motivate them by

effectively changing their beliefs and behavioral tendencies (Lanaj, Johnson & Lee,

2016). Mekpor and Dartey-Baah (2017) posited that transformational leaders stimulate

employees in such a way that employees are happier at work and exude qualities that

induce a mutually stimulating partnership. Reinforcing Mekpor and Dartey-Baah’s views

of transformational leadership, Oppong et al (2017) demonstrated that leaders who

display transformational tendencies stimulate followers to be innovative while

considering new organizational perspectives. Leaders who are transformational have

strong behavioral engagement skills and increased cognitive and emotional engagement

with followers (Arnold, 2017).

Exploring another dimension of transformational leadership, Zhang et al. (2017)

argued that transformational leadership should combine with culture. When culture is

intertwined with transformational leadership, leaders can boost employees’ behavior,

cultural responsibility, and optimism (De Silveira, de Lima, da Costa, & Deschamps,

2017). Carasco-Saul et al. (2015) argued that a boost in employee morale is mediated by

employee engagement and knowledge creation. Transformational leaders influence

followers by creating a shared vision and demonstrating how to rise above self-interest.

In creating a shared vision, displaying inherent skills and flair will come naturally to

transformational leaders (Sahu et al., 2018). Flair signifies captivation and is the

reinforcement for transformational leadership (El Toufaili, 2018).

Bass (1985) augmented the original idea of transformational leadership by

identifying four constructs of transformational leadership: (a) idealized influence, (b)

inspirational motivation, (c) intellectual stimulation, and (d) individualized consideration.

Idealized influence describes leaders who perform as role models and mentors to

followers. The role of the leader is to perform in ways that encourage positive follower

emulation (Dyer et al., 2016). Trust and respect are gained by acting with high ethical

behavior. Inspirational motivation enhances team spirit and motivation and stimulates

followers to become committed to and a part of the shared vision in the organization

(Carleton, Barling & Trivisonno, 2018). Inspirational motivation involves the followers’

willingness to invest added effort in their work, while simultaneously gaining

encouragement about the future (Montano, Reeske, Franke, & Hüffmeier, 2016).

Intellectual stimulation comprises leadership that encourages followers to be creative and

inventive. Thoughts and ideas are challenged on all areas on the leadership spectrum

when intellectual stimulation is involved (Dyer et al., 2016). When followers are

intellectually stimulated, they use critical thinking and problem-solving skills

(Hildenbrand, Sacramento, and Binnewies, 2018). The intellectually stimulated leader

takes risks and solicits followers’ ideas by nurturing and developing followers to think

proactively and independently (Diebig, Bormann, & Rowold, 2017). Individual

consideration involves performing as advisers while coaching followers to maximize

their potential (Bhaskar & Junni, 2016). The individual consideration construct of

leadership involves the follower becoming fully actualized (Sahu et al., 2018). The leader

who incorporates individual consideration provides the follower with empathy and

support, ensuring that communication lines are open (Bhaskar & Junni, 2016). The

followers of transformational leadership have a will and aspire to develop themselves. In

the individualized consideration element of the transformational leadership model,

achieving intrinsic motivation is paramount (Diebig et al., 2017). Delegation skills are

used by transformational leaders to help followers grow through personal challenges.

There is evidence that transformational leadership relates positively to employees’

affective states and well-being (Montano et al., 2016). In addition, transformational

leadership fosters thriving for the following three reasons: fostering a sense of ownership,

supporting employee engagement, and building organizational trust (Jena, Pradhan, &

Panigrahy, 2018). Transformational leadership might foster the encouragement of others

by providing meaning for followers' work, which fosters a positive self-concept (Kim &

Kim, 2017). In the same vein, Nohe and Hertel (2017) contended that the

transformational leader creates a positive self-concept by developing a challenging and

attractive vision, together with followers. Transformational leaders realize the vision

through short planned steps and celebrate small successes as the vision is implemented.

Realizing the vision is concerned with initial development, then translating the vision to

realistic actions. Transformational leadership transcends short-term interests and

contributes to elevated levels of job satisfaction by providing followers with attention on

a one-on-one basis, when necessary (Nohe & Hertel, 2017). Transformational leaders

provide resources and support needed to get the job done, rather than subtract resources

that followers need (Hawkes, Biggs, & Hegerty, 2017).

Exploring another dimension of transformational leadership, Moonjoo (2017)

argued that transformational leadership involves transmitting to employees a strong

vision of the growth opportunities, encouraging them to think critically about the change,

enhancing their confidence and emphasizing the importance of performance for the

team’s sake. Transforming leadership not only motivates followers, but transforming

leadership is a reciprocal relationship between leader and follower (Humphreys &

Einstein, 2004). Transformational leadership is a leadership style that provides a clear

vision and inspires workers to reach their goals, by, establishing connections with others,

understanding what is needed, and contributing to the positive outcomes for a company

(Arnold, 2017). Breevaart and Bakker (2018) examined that the need for a

transformational approach to leadership and management, and the importance of honest,

direct communication is the key to successfully managing conflict.

Transformational leaders have elevated morals and standards and strive to

conduct themselves ethically. Another study on transformational leadership identifies five

primary components: idealized influence attributed to the leader by employees, idealized

influence based on leader’s behavior, intellectual stimulation, inspirational motivation,

and individualized consideration (Sahin et al., 2014). According to Hildenbrand et al.

(2018), when the components are enacted, employees and followers are more likely to

experience satisfaction, which increases employee morale. The concepts of strategic

leadership through idealized influence, inspirational motivation, intellectual stimulation,

and individualized consideration may yield new insights from the in-depth perspectives

of bank leaders (Hildenbrand et al., 2018). The new findings may bring insight on how

leaders develop new knowledge and how they motivate employees.

Some empirical studies have identified the notion that transformational leadership

may positively affect organizational climate, while other studies reveal adverse findings

about the transformational leadership theory (Carasco-Saul et al., 2015). Alatawi (2017)

contended that the transformational leadership theory is biased toward favoring some

stakeholders at the expense of employees and does not genuinely increase task motivation

and performance. Diebig et al. (2017) proposed that transformational leadership can

create a sense of burnout as a result of the prolonged stress of being emotionally active

during the change process. Transformational leaders can harm followers by generating a

high level of emotional involvement when that level of emotional involvement is not

essential (Diebig et al., 2017).

Bank leaders with transformational leadership attributes might be more likely to

lead their banks effectively, thereby mitigating bank failures and sustaining bank growth.

Bank leaders should stimulate employees toward developing high morale by engaging

them to tackle strategic activities in their organization to improve satisfaction and

contribute to the banking sector (Ghosh, 2016). The politics employed by the bank should

be impartial and should consider negligent behavior (De Clercq & Belausteguigoitia,

2017). Adopting the transformational leadership style in banks may positively affect

employee morale and meet the needs of stakeholders and followers. Being adept at

facilitating, coaching, collaborating, and communicating are prominent factors in

exceeding the expectations of followers (Diebig et al., 2017). Bank employees expect

their leaders to be passionate, caring, and trustworthy, and supportive, which is why the

transformational leadership style fits the conceptual framework for this study (Petrović,

2016).

Alternative Theories

Although this doctoral study on strategies that bank leaders may implement for

increasing employee morale and mitigating employee turnover was guided by the

transformational leadership theory, I discussed some alternative theories that might not be

successful in driving employee retention, employee morale, and employee performance.

Transactional leadership. The transactional and transformational leadership

models were developed by Burns in 1978. Bass (1985) proclaimed that transactional

leadership is based on conventional exchange relationship, in which followers’

productivity and effort is exchanged for expected rewards or recognition. According to

Afsar, Badir, Saeed, and Hafeez (2017), transactional leadership involves clarifying the

goals that are achievable and making it clear that the successful achievement of goals will

result in a reward. Conversely, noncompliance will result in punishment (Ma & Jiang,

2018). Transactional leaders motivate their followers by establishing mutual agreements

that can result in elevated trust in the leader.

Afshari and Gibson (2016) asserted that transactional leaders are influential

because they make it in the best interest of followers to do what the leader wants. Prasad

and Junni (2016) posited that such transactional leaders reduce workplace anxiety by

focusing on clear business objectives, increase in production levels, and achievement of

organizational objectives. A study completed by Zareen, Razzaq, and Mujtaba (2015)

demonstrated a positive relationship between transactional leadership and organizational

outcomes. Prasad and Junni (2016) illustrated that the established relationship between a

transactional leader and follower is transitory. Bellé and Cantarelli (2018) have criticized

transactional leadership models, asserting that transactional leadership represents a one-

size-fits-all approach to leadership and ignores personal development. In the same realm,

Prasad and Junni (2016) stated that transactional leadership does not offer much

inspiration to motivate followers to go beyond the basics.

Aga (2016) examined the transactional leadership approach across two

dimensions: contingent reward and management-by-exception. Contingent rewards

involve establishing goals and agreeing on what followers will do to achieve stated

objectives. Accomplishments are recognized in this dimension. Management-by-

exception involves monitoring deviations from rules and mistakes and offering corrective

action (Northouse, 2016). The transactional approach is designed for technical and

routine challenges by focusing on systems, process, and structure with improvement as

the desired result (Aga, 2016). Saravo, Netzel, and Kiesewetter (2017) conjectured that

transactional leaders can inspire self-confidence in followers without engaging in the

organizational vision.

According to Afshari and Gibson (2016), scholars have affirmed that transactional

leadership involves clarifying tasks by initiating a structure that is tolerant, fair-minded,

and management-focused. The transactional leader promotes mostly incremental or

evolutionary change through regular economic and social exchanges (Ma & Jiang, 2018).

The change efforts are short term in nature of transactions, and the temporary exchange

of gratification may create an atmosphere of antipathy between leaders and subordinates

(Aga, 2016).

The transactional approach to leadership could be effective for bank leaders who

focus solely on employee performance (Muhammad & Kuchinke, 2016). Consideration

of employee retention and morale are not typical characteristics of transactional leaders

and may only be effective under particular contexts (Muhammad & Kuchinke, 2016).

Leadership style affects employee motivation, which affects employee performance,

resulting in meeting organizational performance outcomes (Aga, 2016). In the American

banking industry, the transactional leadership approach might not be successful in driving

employee retention and employee morale.

Servant leadership. According to Lapointe and Vandenberghe (2018), the

servant leader focuses on the development of strong, long-term relationships between

leaders and subordinates. Lapointe et al. posited that the servant leader values people in

an authentic manner. Servant leaders place the good of followers over their own self-

interests and emphasize follower development (Newman, Schwarz, Cooper, & Sendjaya,

2017). Servant leadership emphasizes that leaders be attentive to the concerns of their

followers, empathize with them, and nurture them. Servant leaders place followers first,

with a special focus on providing empowerment and held to mature their full individual

capabilities. Servant leaders are ethical and lead in manners that serve the greater good of

the organization, community, and society at large. Servant leadership was introduced by

Greenleaf in 1970, with an interest in a leader’s responsibility to employees and

stakeholders. More recently, many researchers have begun to examine the conceptual

underpinnings of servant leadership (Barbuto &Wheeler, 2006; Liden et al., 2008;

Spears, 1996; Russel & Stone, 2002; Yahaya & Ebrahim, 2016).

One of the most compelling frameworks investigated seven dimensions of servant

leadership (Liden et al., 2008). The first dimension focuses on emotional healing or being

sensitive to the personal concerns of followers. The second dimension is creating value

for the community or demonstrating a conscious, genuine concern for helping the

community. The third dimension delves into conceptual skills or showing knowledge

about the organization and the tasks that are prerequisites for providing help to followers.

The fourth dimension of servant leadership is empowering followers or encouraging and

helping followers to identify and solve problems, as well as to determine when and how

to complete work tasks. The fifth dimension focuses on helping followers grow and

succeed or demonstrating a genuine concern for followers’ career growth and

development. The sixth dimension of servant leadership presented by Liden et al. (2018)

involves putting subordinates first or using actions and words to make it clear to

followers that satisfying their work needs is a priority. Finally, the last dimension of

servant leadership focuses on behaving ethically or interacting openly, fairly, and

honestly with others (Liden et al., 2008). Liden et al. (2018) argued that being a servant

leader grants the ability to motivate the behaviors of subordinates and increase the overall

wellbeing of the organization. Newman et al. (2017) extends Liden et al.’s dimension of

leadership by stating that servant leaders promote integrity, concentrate on helping

others, and bringing out the full potential of followers.

In another study on servant leadership, Spears (1996) identified 10 characteristics

that are central to the development of servant leadership, to include: listening, empathy,

healing, awareness, persuasion, conceptualization, foresight, stewardship, commitment to

the growth of people, and building community. These characteristics of servant

leadership, under Greenleaf’s seminal work, provide a creative lens from which to view

the dimensions of a servant leader. In the same realm, Okechukwu (2018) proclaimed

that servant leadership focuses on sharing leadership and valuing people. Russell and

Stone (2002) developed a model of servant leadership using an assembly of variables

focused on distinctive behaviors in the workplace. Chen, Ma, and Shi (2017) proclaimed

that serving and developing others, consulting and involving others, and modeling

integrity and authenticity, are distinct behaviors that servant leaders display in the

workplace. Yahaya and Ebrahim (2016) established a servant leadership scale for

exploring servant leadership perceptions to include exploratory and confirmatory factors.

Lapointe et al. (2018) found evidence showing that when servant leadership was matched

with followers who desired it, this type of leadership had a positive impact on morale and

organizational turnover. In addition to the positive features of servant leadership, this

approach has several limitations. First, because the concept has been conceptualized

numerous amounts of times, the core dimensions of the servant leader process differs.

Second, servant leadership cannot be narrowed down to a consensus on the common

definition (Yahaya & Ebrahim, 2016). The lack of clarity in defining servant leadership

limits the robustness of the theoretical formulations surrounding the theory.

Servant leadership is relevant to this study for various reasons. Foremost, the

servant leadership approach could motivate bank leaders to concentrate on the personal

interest in subordinates, exceeding the banks objectives. Servant leadership has positive

effects on banking employees and stakeholders, such as the community and board

members, in that the overall organizational functioning will improve and make work

climates more attractive (Lapoint & Vandenberghe, 2018). Turnover may diminish, as

employees develop rapport with leaders and become attached to servant leadership

processes (Liden et al., 2008). Second, the servant leadership theory will help banks

focus and advance the fundamental principles of the organization. Practicing servant

leadership will enhance bank employees’ engagement skills and learning culture, which

could mitigate employee disengagement or turnover (Newman et al., 2017). Finally, bank

leaders who are servants distinguish themselves from other leaders by focusing on the

needs and interest of others in a sincere manner, which could stimulate other bank leaders

to evoke change in the organization.

Laissez-faire leadership. While the discussions of the laissez-faire leadership

theory are considered scarce by some researchers, the theory associates with negative

outcomes, such as stress and demotivation. According to Wong and Giessner (2018), the

dominant view of laissez-faire leadership is regarded as zero leadership. This leader

abdicates responsibility, delays decisions, gives no feedback, and makes little effort to

help followers satisfy their needs. There is no exchange with followers or attempt to help

them grow, including reward omission and punishment omission (Wong & Giessner,

2018). Zareen et al. (2015) extended the viewpoint of laissez-faire leadership by stating

that, usually, with no targets or direction, there is a state of confusion. As the result of it,

productivity is usually low. Defined by Bass (1985), the laissez-faire theory of leadership

is nonstrategic and implies negative consequences.

Glambek, Skogstad, and Einarsen (2018) postulated that leaders who lead under

the laissez-faire theory do not participate in the mobilization of work responsibilities, as

employee motivation levels are already elevated. Glambek et al. (2018) identified two

dimensions to laissez-faire leadership; leaders who use such approach assure themselves

that the job is fully acknowledged by the subordinates; and second, such leaders scarcely

obstruct what followers do. Laissez-faire leaders intervene when situations are

problematic or when production is unsatisfactory, but they typically do not engage with

subordinates otherwise. Zareen et al. (2015) suggested that laissez-faire leadership

becomes more effective when there are many decisions to make, when the decision-

making process is easy, and followers perform routine tasks with fewer complexities.

Conversely, some researchers argued that there are positive outcomes of the

laissez-faire type of leadership, to include increased innovation propensity (Zareen et al.,

2015). First, laissez-faire leadership allows followers to maximize their capabilities to

conceptualize ongoing problems by facilitating them with the necessary guidance and

then granting the freedom to make necessary decisions. Laissez-faire leadership could be

perceived as elevated respect for the leader and not a result of ignorance or negligence.

Lastly, Makhathini and Van Dyk (2018) asserted that laissez-faire leadership could

support the motivation for employees to work independently and persistently.

The implication of laissez-faire leadership effectiveness is that bank leaders

should not employ the use of laissez-faire leadership and adopt more of transformational

and transactional behaviors (Wong & Giessner, 2018). If a work team is highly

developed and self-motivated, laissez-faire leadership may be effective. Provided that

these team members are subject matter experts with bountiful knowledge of their job,

such teams may be able to accomplish their goals with no direction from the leadership

team (Makhathini &Van Dyk, 2018).

Effect of Strategic Leadership on Employees

Effective leadership. Organizations face numerous challenges associated with

the evolution of work in the 21

century. Parr et al. (2016) proclaimed that the concept of

effective leadership is important to effectively expand boundaries internationally,

improve technology, and harness professional development among followers. Effective

leadership delves into strategically reorganizing organizations to achieve competitive

advantage, product differentiation and a dynamic work environment (Fought & Misawa,

2016). Talented leaders who practice effective leadership can overcome challenges and

mitigate change to achieve the desired objectives. Effective leadership is vital to

organizations in that the interaction between stakeholders, employees, and competition

will stimulate successful behavior (Donnelly, 2017). The foundation of leadership

effectiveness was initially guided by the trait approach, which is a theory that discovers

characteristics that talented leaders display (Carleton, Barling, & Trivisonno, 2018).

Gotsis and Grimani (2016) affirmed that leadership effectiveness is related to various

factors that are specific to the leaders’ personality. The traits identified by Gotsis and

Grimani (2016) differentiate individuals based on their tendencies to think, feel, and

behave and can help to elucidate why a leader may be successful.

Effective leadership delves into how efficient the leader involves subordinates in

the decision making and change management processes (Aktas, Gelfand, & Hanges,

2016). The effective leader works diligently with others to fulfill their personal needs and

to self-actualize (Gotsis & Grimani, 2016). Fought and Misawa (2016) proclaimed that

effective leadership is significant towards influencing staff to willingly employ their

skills and talents collaboratively. There are several leadership theories that attempt to

explain and define leadership effectiveness. Trait-based theories, leader behavior

theories, and situational-based theories, such as the path-goal theory of leadership, are

some of the various theories that comprise the effective leadership concept. Le’s (2015)

discoveries on important leadership skills for effective leadership included visualization,

honesty, management skills, collaboration skills, and communication skills.

Effective leadership requires setting a transparent direction for subordinates to

pursue, reach, and often exceed goals. Building a vision is often a group effort, which

requires an understanding of innovative change and trends, good communication, and a

futuristic attitude (Fought & Misawa, 2016). To ensure that leadership efforts are

effective, leaders should rely on feedback and maintain an open-door policy to measure

their effectiveness. Effective leadership means understanding and being aware of the

needs of all contributors. Effective leaders can create a vision and plan to satisfy needs,

communicate this vision to followers in such a way to secure their buy in, and then secure

the resources, funding, and support to followers to meet these needs (Donnelly, 2017).

Coaching and mentorship skills are vital to sustain leadership effectiveness (Diochon,

2018). These mentorship skills guarantee personalized feedback that directly encourages

sense of self, self-awareness, efficacy, and identity (Muriithi, Louw, & Radloff, 2018).

Garret and Camper (2015) presented five key tenets of effective leadership:

insight awareness of self and empathy with others, integrity ethical leadership principles

and practices, synergy collaboration and problem solving, purpose sharing the

commitment to action, and impact ethical engagement and citizenship. In addition to the

tenets, self-motivation of an individual and self-regulation enhance the leadership

capacity of an effective leader (Elkington, Pearse, Moss, Van der Steege, & Martin,

2017). Organizational culture is promoted and enthused, and processes that positively

reinforce leadership are enhanced (Nahavandi, 2015).

Strategic leadership. There are no unambiguous definitions of strategic

leadership (Kaufman, 2017). Many of the empirical and theoretical research on strategic

leadership over the past decades is related to the competencies that strategic leaders must

adapt to; ranging from the abilities of information retrieval, developing shared visions,

teamwork, strategic planning, and the drive to excel and improve, which are necessary for

an effective leader (Chan, 2018). The strategic leadership process is regarded as the

establishment of resolutions and actions that result in the construction, application, and

origination of plans intended to achieve an organization's vision, mission, strategy, and

strategic objectives within an organization’s operating environment. Strategic leadership

is defined as the leader's ability to anticipate, visualize, and preserve organizational

elasticity (Kaufman, 2017). The empowerment of subordinates to enact strategic change

is crucial of a strategic leader (Prasertcharoensuk & Tang, 2017). Strategic leadership is

multi-dimensional; involving managing through various teams with the end goal of

helping followers work together to exponentially increase their skill sets (Schoemaker,

Heaton, & Teece, 2018).

A primary competency of a strategic leader is to identify the most efficient and

effective way to challenge problems when they occur during the strategy implementation

process (Strydom & Fourie, 2017). The strategic leader implements interpersonal skills

that are equally necessary across the organization resulting in a stimulating and rewarding

work environment. The strategic leader must first be able to cope with changes before

guiding subordinates through the change process. According to Prasertcharoensuk and

Tang (2017), several divergent yet cohesive actions characterize strategic leadership:

determining strategic vision, establishing balanced organizational controls, effectively

managing the organization's resource portfolio, sustaining an effective organizational

culture, and emphasizing ethical practices. The critical book review by Volpp and

Banxato (2016) indicated that strategic leadership capabilities are the new skill sets that

establish a competitive landscape for the 21st century. Prasertcharoensuk and Tang

(2017) provided evidence that strategic leadership needs to be transformational in nature,

to better increase organizational culture.

Detjen and Webber (2017) asserted that there are five key strategic shifts that

build strategic leadership. First, shifting personal perspective of self involves expanding

how leaders perceive their ability to influence. Second, shifting personal perspective of

others involves understanding others’ viewpoints beyond the leaders’ immediate and

comfortable network. The third key strategic shift step is to shift responsibility, which

involves expanding how to get things done. The fourth strategic step involves shifting

leverage involves relinquishing control and widening responsibilities of subordinates.

The last strategic shift step is to shift the organization. Shifting the organization involves

identifying internal and external strategic opportunities for continued change. Throughout

the change process, it is important to dissolve gaps in the strategic leadership structure to

gain effective results (Parr et al., 2016).

Chan (2018) considered that strategic leadership is correlated with the wisdom

and acumen of a leader in making organizational decisions, actions and strategies in

equivocal environments. Kazmi, Naarananoja, and Wartsila (2016) asserted that the vital

components of a strategic leader are the ability to recognize collaboration characteristics,

integrate vision, bridge together diverse networks, time management, and the ability to

holistically focus on people and knowledge processes. Studies on strategic leadership

show that strategic leaders must gain an understanding of how different groups

conceptualize the organization and to meet the challenges of the diverging and sometimes

conflicting expectations of stakeholders by grasping opportunities in time, carefully

taking account of external factors and planning the pace and scale of change wherever

necessary within an organization (Schoemaker et al., 2018). Researchers show that

strategic leaders should seek to gain understanding of different organizations; how they

conceptualize matters (Kazmi et al., 2016).

To effectively overcome challenges and conflict, strategic leaders must be able to

emphasize and relate to an organization at an operational level and respond to the

external environment, including recent and present dealings within the evolving economy

(Norzailan, Othman, & Ishizaki, 2016). Hall (2015) suggested that reflection and

reframing cognitive processes are key skills required to be a strategic leader, who is the

driving force of an organization. The strategic leader is considered the driving force for

organizational change efforts and is recommended to lead with a plan that integrates

short-term and long-term results comprehensively (Kazmi et al., 2016). Reflection is the

debugging of assumptions and values that reinforce social practices and reframing

investigates the same scenario from different perceptions (Hall, 2015). The strategic

leader then garnishes the ability to cascade goals throughout the organization (Norzailan

et al., 2016). Reflective dialogue of strategic leaders will unveil masked assumptions and

induce unique thinking abilities (Hall, 2015).

Understanding the dynamics of strategic leadership encompasses spotlighting

what effective leaders do daily in relation to the organization. The ability to focus on

critical needs to ensure that resources are not overly strained is paramount and will better

ensure future success of followers. This view is sustained by Suphattanakul (2017), who

recommended that strategic leadership entails gaining proper access to key resources and

partnering organizations social and human capital, as necessary. The literature review on

strategic leadership reinforced that effective strategic leadership capabilities are essential

in managing social and human capital. One of the most vital strategies for a strategic

leader is to be able to manage the organizations’ pool of resources by developing a

strategy to gain and achieve a competitive advantage.

Sarfraz (2017) asserted that strategic leadership is classified as a subjective and

logistic experience, in which leaders should develop their resources to continually sustain

organizational success. Bloom’s taxonomy provides a guide for leaders to bridge the gap

between personal and organizational processes and presented six critical thinking skills

that are necessary for effective strategic leadership: (a) remember and recall facts and

ideas (knowledge/remember); (b) understand the facts, ideas and their link

(comprehension/understand); (c) apply the facts, knowledge and methods in various ways

in new or old situations (application/apply); (d) analyze, examine and collate ideas and

information into sections through the identification of causes, inferences and evidence

that supports simplifications (analysis/analyze); (e) evaluate and combine the facts and

information in various ways through propositioning substitute resolutions or merging the

elements in a new arrangement (synthesis/evaluate); and (f) create a set of criteria that

certifies the work quality, ideas or judgments on data (Adams, 2015).

Strategic leadership actively addresses common organizational issues by

developing competencies that are distinct in nature. The proper supervisory and

development skills are necessary to be a strategic leader in leading operations (Norzailan

et al., 2016). The skills are important but are recommended to be used in conjunction

with creativity and imagination (Fowler, 2018). Any challenges and threats discovered

organization wide are addressed at the strategic level and requires bountiful wisdom and

originality to effectively rationalize ideas (Ryan, Bergin, & Wells, 2017). The ultimate

strategic leader can view opportunities from a far to enrich subordinates and shift

perspectives (Detjen & Webber, 2017). To foresee opportunities, strategic leaders must

explore the unfamiliar aspects outside of the standard comfort zone. In addition, strategic

leaders must have high ambiguity, high exploration skills, organizational focus, and high

external orientation at all levels of leadership (Kazmi et al., 2016). Another dimension of

strategic leadership is considering and challenging competitors’ actions, customer

preferences, actively scan the horizon for technological changes and innovative trends,

and defining purpose for stakeholders (Kaufman, 2017). Being able to accurately

interpret and respond to cues from outside resources and the external environment are

necessary of a strategic leader to stay competitive and realign internal capabilities (Zheng

et al., 2017).

Employing strategic leadership skills is vital in envisioning the prospective

position of an organization. Strategic leadership skills enable the creation of

organizational values and culture, which are two essential components of an organization.

Research provided by Cameron, Bertenshaw, and Sheeran (2018) proclaimed that

strategic leaders set the course for goal attainment and the expanding role of strategic

leadership stimulates stakeholder’s desire to analyze the influence of management

performance on work teams. Farrell (2017) asserted that management and the leadership

team are responsible for creating organizational practices that increase the notion of work

motivation amongst employees. Employing strategic leadership skills creates

effectiveness and includes characteristics that can inspire leadership behavior and have a

foremost outcome on the organizational performance (Tharnpas & Sakun, 2016). Some

top leaders of banks embark on the work of strategic leadership without sufficient

training and experience in strategic leadership. Inadequate strategic leadership experience

may cause a decline in productivity and is not cost-effective (Schoemaker et al., 2018). A

lack of orientation to the work of strategic leadership may jeopardize organizational

effectiveness, performance, and sustainability (Ehrlich, 2017).

Employee morale. Several note-worthy theories of leadership facet the employee

morale of employees in an organization. Some theorists connect employee morale and

motivation with Hezberg’s theory to evaluate motivational and hygiene factors (Mottaz

(1985). Other theorist like Locke (1978) criticized this theory for failing to connect goal

setting with employee motivation. Locke also contended that Herzberg’s theory fails to

identify that there are multiple sources of job satisfaction and dissatisfaction, and that

motivational and hygiene factors are unidirectional. Mottaz (1985) provided evidence

that support Herzberg’s motivational theory, that intrinsic and extrinsic rewards on the

job increase hygiene factors.

Job morale is considered a complex concept with a broad range of definitions.

Minor et al. (2014) perceived job morale as how subordinates identify their work

conditions regarding a sense of belonging and stimulation to achieve organizational

goals. Good morale represents positive energy and motivation flows to attain

organizational goals (Jiang et al., 2018). Good employee morale is a healthy reflection for

an organization; and as a result, organizations often undertake efforts to avoid damaging

morale (Lee & Idris, 2017). Elevated morale is associated with reduced turnover intention

and better working conditions, which increase worker productivity. Employee enthusiasm

and organizational efforts are better aligned to pursue subordinate goals (Jena et al.,

2018). High employee morale can be represented as a function of organizational

environments, with the leader garnering control over subordinates (Radstaak & Hennes,

2017). Research by Zareen et al. (2015) compares both positive and negative experiences

in the workplace. The findings display the positive experiences as high. The conclusion

of the research on positive and negative experiences in the workplace denotes that

cultivating morale could be a practicable element that results in enhanced organizational

functioning. A primary takeaway from the research surrounding morale is that gaining

knowledge about the factors will promote employee satisfaction and mitigate turnover.

Effective bank leaders improve the culture of an organization, by improving

morale, which increases customer trust, inspires industrial growth and advances financial

performance (Khan, Ghafoor, Qureshi, & Rehman, 2018). Effective bank leaders focus

on maximizing strategic leadership which has a significant effect on an organization’s

competitiveness and skill set. Kok et al., (2018) presented evidence that employee morale

and commitment to jobs are a result of the leaders’ role and performance. Workers need

to be more motivated to complete the process refinement and avoid conflict. Motivation

at work does lead to higher morale, and when organizations have higher employee

morale, they as a result have greater job satisfaction, commitment to their jobs, and

remarkable performance (Klopotan et al., 2018). Any hindrance in cognitive development

and poor management lowers employee morale and may indicate that the effort is not

being made by management to help the employee (Kingori & Gerrets, 2016). Low

employee morale will not help boost productivity or improve performance.

Mahoney (1956) acknowledged six aspects of morale in workplace settings:

feelings of status, attitudes toward leadership, appraisal of past work successes and

failures, future outlook, feelings of belongingness to the workplace, and feelings of

sacrifice in work situations. Radstaak and Hennes (2017) described employee morale as

the way subordinates view leaders and the amount of respect towards them, in

conjunction with intrinsic and extrinsic job satisfaction. A high level of morale is a strong

indicator of positive working relationships with co-workers. Conversely, few researchers

believe that employee morale and job satisfaction are miscorrelated, although both

elements refer to a subordinates’ sentimental state (De Beer, Tims, & Bakker, 2016). A

follower can harness satisfaction from aspects that are not sentimental, which has no

effect on the general morale of the subordinate (Minor et al., 2014). Similarly, job

dissatisfaction can occur towards only certain features of a job, but there can still be

association with high employee morale (Soratto et al. 2018). Compared with job

satisfaction, Kok et al. (2018) theorized morale as the drive to keep striving for the end

goal, while satisfaction is what is derives personally from their quests.

Other important factors that increase employee morale is a sense of teamwork and

actively relationship building, with consistent processes and procedures being prominent

to achieve desired goals (Mistry et al., 2015). Intense attention and understanding of job

responsibilities is regarded as an element of well-organized services to greatly increase

relationships or therapeutic activities in an organization. Developing high employee

morale involves being valued as a subordinate, and the development of interpersonal

relationships with leaders (Jena et al., 2018). Previous research relates value and

satisfaction as key indicators of high employee morale and contribution towards life.

Organizations with tight-knit and transparent relationships have positive influences on

employee morale. A central theme that emerges from the research on employee morale is

the enabling of people, not merely completing tasks. A rounded relationship between

staff job satisfaction and healthy relationships is the result of enabling people to perform

at a high level that would automatically increase morale (Chung-An, Don-Yun, &

Chengwei, 2018). A working environment where subordinates can interact with

leadership on a personal and professional level will support an increase in morale. If there

are noticeable threats in an organization’s relationship with employees because of

negative organizational interactions (low staffing levels, unfairness), morale will decrease

(Mistry et al., 2015).

Other factors that mitigate employee morale and induce staff burnout are poor

support systems, the lack of professional autonomy, the lack of communication, bullying

in the workplace, and violence or discriminatory treatment. Kingori and Gerrett (2016)

proclaimed that faltering morale results from poor management and inadequate

institutional support. Workplace stress and disarray is linked to low morale, and/or

mental health problems. To combat workplace stress and increase morale, various leaders

implement performance- based rewards to commend subordinates (Radstaak & Hennes,

2017). Some leaders view performance- based rewards as a challenge that could

deteriorate organizational culture, if employees focus solely on the reward (Kingori &

Gerrets, 2016). For example, some employees may view performance-based rewards as a

control mechanism, rather than positive reinforcement. The way individuals are rewarded

at work is classified as one of the most salient features of the work environment and can

serve as a source of satisfaction, challenge, engagement, and fulfillment, or a source of

uncertainty, mistrust, and perceived inequity (Radstaak & Hennes, 2017).

Maden, Ozcelik, Karacay (2016) asserted that a primary way to increase

employee morale is for leaders to develop and maintain a sense of empathy for effective

employee motivation purposes. Empathy is classified as a meta-competency, in which

leaders should seek understanding of subordinates’ emotional experiences related to

work, cognitive understandings, and rational thinking skills (Rožman, Treven, & Čančer,

2017). Researchers suggest that empathy is a gateway competency that directly relates to

motivating subordinates, in that subordinates desire to feel respected, cared about, and

understood by their organizational leaders (Klopotan, Mjeda, & Kurečić, 2018). Effective

problem solving is a result, too.

Research suggested that increased morale is the result of an organization’s

climate, which influences the ethical decisions that employees make (Maden, Ozcelik,

Karacay, 2016). Morale is reflected as an ethical disposition that affects work-related

cognitive thinking abilities. An employees’ perception of the company’s desirable work

environment is linked to job satisfaction and increased morale. In this sense, job

satisfaction is the pleasurable emotional state resulting from the appraisal of one’s job

and job experience (Chung-An et al., 2018). Citizenship behaviors that are altruistic in

nature predicts organizational climate and induces positive job performance (Maden et

al., 2016). Research shows that employees with high and good morale are motivated to

expend effort and psychological capital while performing acts that might not be

specifically outlined in their work duties and responsibilities (Çelik, 2018).

The value received from working environments has an immense impact on

morale. Aladwan, Bhanugopan, and Fish (2016) proclaimed that work values are referred

to as the values that subordinates bring to work, linked to the social environment, to

evaluate professional conduct and the performance of a worker. Jena et al. (2018) argued

that for a company to be successful, the organizational values and the values of the

workers must be aligned. A mismatch between management expectations and the

workers’ expectations can arise from a lack of awareness of values, potentially resulting

in an inappropriate fit between the organizational culture and decreased morale. Aladwan

et al. (2016) highlighted five perspectives in terms of how people align their values with

their behavior: how we think and piece things together; the direction of our behavior and

the emotional intensity of our behavior; justifications of and for our behavior, the

standards we employ to judge our behavior and the various socialization experiences we

encounter; and the sources of our learning, personal, organizational, or societal. Le

Pennec and Raufflet (2018) recommended that managers use value creation, critical

engagement, and job collaboration, to improve employee morale. Çelik (2018) concluded

that highly motivated and engaged employees are critical to the success of service

organizations and enterprises.

Employee turnover. The research on employee turnover examined the

performance of an organization, in terms of exhausting experienced employees. Kundu

and Kusum (2017) proclaimed that employees can be retained by: reward, recognition,

and respect. Factors that can advance the quality of work presented include improved

efficiency and reduce absenteeism. A gratifying work environment in conjunction with

progressive earnings is the outcome (Carnahan, Kbrearyscynski, & Olson, 2017).

Researchers suggested incorporating job enrichment, monetary rewards and enhanced

employee benefits, training and development opportunities, work environment, and work-

life balance (Zhang et al., 2017). Some scholars consider the strategy of reducing

employee turnover as a professional development goal (Riley, 2017) and learning

attitudes (Shanafelt, & Noseworthy, 2017). Literature has identified seven primary

factors to mitigate employee turnover: challenging work, opportunities to learn, positive

relationships with colleagues, compensation and appreciation of the work performed,

recognition of capabilities, work-life balance, and good communication (Kang, 2018).

Encouraging an environment that is conducive to providing organizational

support is identified as a fundamental strategy to retain employees; a supportive work

environment is expected to cultivate retention (Kundu & Kusum, 2017). Leaders must

recognize the importance of continued learning, honing, and the organizational climate to

ignite the talent of employees in the working environment (Zhang et al., 2017). Riley

(2017) asserted that a supportive working environment is vital for organizations to grow

and perform at a sustainable level. Organizational support established by leadership is

regarded as a vital constituent of employee performance (Ou et al., 2017). Employee

output depends on the input established in a supportive working environment and has

positive outcomes such as increased organizational commitment and job satisfaction

(Kundu & Kundu, 2017). Leaders must effectively engage employees, which can cause

an influx in organizational competition. Employee engagement, first promulgated by

Kahn in 1990, is a vital facet of reducing employee turnover and intention. Employee

engagement is postulated as the degree of connecting subordinates to their work

obligations; where workers are motivated to express themselves, physically, cognitively,

and emotionally at work (Kahn, 1990). Kang and Busser (2018) related employee

turnover reduction to organizational engagement in that engaged employees are identified

as strategic assets who greatly enhance the organizational climate in a firm when their

organizational needs are identified and incorporated.

To reduce the amount of employee turnover in organizations, initially recruiting

and retaining employees will reduce gaps in the demand and supply in the workforce.

Retaining valuable talent advocates that a worker’s intention to stay can be stabilized if

incentives and rewards are awarded by the organization and conflict is low; in return, the

employee is expected to contribute to the organization (Ou, Jungmin, Dongwon & Hom,

2017). One of the paramount measurements to evaluate the resilience and strength of an

organization lies in the retention and job satisfaction initiatives (Satoh et al., 2017). Kang

and Busser (2018) proclaimed that employees are more likely to work at an organization

if they are actively engaged, as engaged employees generally possess more passion

towards professional development. Turnover intentions have been identified as important

aspects of emotional and cognitive commitment to the organization. Employee turnover

is generally shifted downward when the proper identification of organizational goals and

employee needs are nourished. Added value to the engagement efforts in the organization

is the result.

The degree of organizational engagement can mitigate employee turnover, if the

efforts are durable and involves employee’s feedback (Shanafelt, & Noseworthy, 2017).

Highly engaged employees are more likely to repay the organization with their time and

knowledge elevation and are more likely to be empowered in an organizational process if

they are involved. Career growth, occupational compensation, and outreach opportunities

are human resource practices that are crucial in increasing employee organizational

engagement, which decreases employee turnover (Carnahan et al., 2017). Generating an

environment where followers and leaders support each other cross-developmentally, can

stimulate immense outcomes that increase job satisfaction (Martinelli & Erzikova, 2017).

Employee reinforcement is positively correlated with HR practices, which induces

employee behaviors that align with the organization (Ou et al., 2017).

Yahaya and Ebrahim (2016) inferred that leaders should explore strategies that

focus on the implementations of a supportive work climate. Exploring strategies that

focus on implementations generously contributes to a supportive work climate plays in

supervisory and peer group relationships. Leaders must learn about the changing

environments surrounding an organization and work diligently towards the strategic

development of employees, to better retain subordinates. Research affirmed that the

combination of satisfactory supervisory support, good peer relationship, and

organizational support has a lasting effect that will lead to positive engagement within the

organization at all levels (Hawkes et al., 2017). Promoting and instilling organizational

values within an organizational environment can increase a sense of belonging and

permeate the environment with talented employees who are willing to be retained with

the organization (Kundu & Kusum, 2017). Similarly, Ou et al. (2017) also suggested that

recruiting and retaining the motivated and efficient employees is essential to positive and

profitable work environments.

Over the last 20 years, employee turnover has been a growing concern for

organizations, because of the lack of sustainable human resources (Dechawatanapaisal,

2018). Retaining employees is important, but expensive, in that enormous amounts of

money is invested in the training and development of employees. Employee retention is

necessary to maximize the time and contributions of organizational leaders and to

enhance the success of the organization (Ou et al., 2017). Companies that lose thorough

employees not only affect monetary resources, but also productivity and work quality

from an economic perspective. Direct costs (training, time) and indirect costs (morale,

job satisfaction, and organizational knowledge) are affected when employees are not

successfully retained (Younge & Marx, 2016). When employee turnover is low, the

outcome is that experienced, and sometimes tenured workers will stay employed, while

simultaneously increasing organizational quality, morale, and performance

(Dechawatanapaisal, 2018). Low employee turnover is the result of work goals being met

and involves the sharing of work values, beliefs, and opinions. Dedicated employees who

are successfully retained play a critical role in nourishing loyalty and reaching

organizational goals.

Sahu et al. (2018) have identified a potential turnover reduction approach that

includes internal branding. The concept of internal branding is defined as a name, term,

sign, symbol, or design that identifies the goods and services of a group or organization

to differentiate them from competition (Dechawatanapaisal, 2018). The brand concept is

revolutionized and represents the relationship between an organization and employees

(Hayford, 2016). The branding of employees involves the alignment of strategy, culture,

and to what extend employees embrace these banding factors (Wegerer, 2018).

Organizations should enthusiastically influence employees to develop brand loyalty to

respond to market changes in a timely manner and to lead to organizational success (Sahu

et al., 2018).

Intention to stay is identified as one of the most resilient predictors of employee

retention (Blazeby et al., 2018). Employers should enthusiastically contemplate the

hazards of losing their well-trained employees to jobs that are a better fit for employees.

Sulander et al. (2016) decreed that turnover is a detrimental occurrence that disrupts

business processes and organizational teams, elevates replacement costs, lowers morale

of remaining team members, and shrinks productivity. Deasy, Asanati, and Mansouri

(2016) asserted that the negative effect of employee turnover is reflected in the loss of

revenue and losses from investments made by the organization in the form of

professional development and training. Customer relationships, which are a prized

component in any organization, could deteriorate when employee turnover is increased.

This leads to unprofitable purchase behavior from a short-term and long-term perspective

(Deasy et al., 2016). When employee turnover levels are high, the replacement efforts are

higher. Organizations must sometimes realign departments and goals, incur the costs of

recruitment and new hire training, and hire new employees, which require building

rapport, trust, and generating acceptable revenue streams (Sunder et al., 2017). To

combat the issues of mistrust and friction, organizations may need to adopt preventative

and proactive strategies to retain proficient employees.

Buers, Karpinska, and Schippers (2018) presented research that stated that leaders

in organizations are expected to make decisions encompassing retention factors to predict

and manage future staffing goals; and consider an organization’s staffing situation and

employee development needs. When considering an organization’s staffing situation,

leaders should evaluate how to support follower’s retention activities and contribute to

being motivated at work (Blazeby, 2018). Another key dimension to mitigate employee

turnover is to implement incentives, both monetary and non-monetary. Evidence

suggested that monetary incentives increase postal and electronic questionnaire response

possibly because they lead to more effort and higher performance from the recipient

(Blazeby, 2018).

Employee turnover, both historical and current, continues to be a topic of interest

and has an immense impact on organizations and workers. Rothausen, Henderson,

Arnold, and Malshe (2017) defined voluntary turnover as costly and negatively affects

the performance of remaining staff, especially when quality assurance measures are not

correctly captured. Voluntary turnover is costly to organizations when good performers

leave and turnover negatively affected (Younge & Marx, 2016). Voluntary turnover

affects personal lives as well as professional lives and leaders must adequately

understand resource processes to better retain employees. Employees who are dissatisfied

with their organization and resign have a deleterious effect on production and increases

costs for the organization because of the decrease in deficiency (Rothausen et al., 2017).

Turnover can impact remaining staff by resulting in increased workloads, resulting in

departures and early retirements of tenured staff (Satoh et al., 2017). A method of

reducing employee turnover involves staffing enough workers to complete the job

without causing strain (Sulander et al., 2016). Characteristics of the work environment,

such as leadership actions, have been shown to influence employee turnover (Reina et al.,

2018). Turnover intention has been associated with the concepts of organizational justice

and affective commitment (Perreira, Berta, & Herbert, 2018). Alshathry, Clarke, and

Goodman (2017) asserted that effective management and delivery of benefits would lead

to a high preference for the organization and decrease employee turnover.

Transition to Banking Business

Nourishing bank growth. The banking sector is one of the most important

threads in the fabric of society in global contexts. According to Abedifar, Hasan, and

Tarazi (2016), the banking system is the fulcrum around which any economic market

revolves. Sound banking practices are essential in maintaining a country's economic

health and stability, especially when recovering from an economic collapse or to mitigate

economic difficulties. Governing committees are often established to regulate banking

activities and stimulate bank growth (Shanthi, Nangia, & Sircar, 2017). Consequently,

banks operate under similar conditions and require adept strategies to remain profitable

and ensure that employees are stimulated.

Commercial banks and other financial institutions have re-strategized their goals

for revenue growth as a result of the 21

century economic crisis (Ramakrishna, Ramulu,

& Kumar, 2016). The responsibility of commercial banks to remain abreast and ahead of

traditional sources of revenue from products such as credit cards, mortgages, and loans is

necessary to be effective in nourishing bank growth (Shanthi et al., 2015). Developing

new products and services and improving the standards of customer service are potential

strategies that commercial banks should employ to remain sustainable and competitive

(Perrott, 2015).

The level of corporate governance plays an important role in determining

economic growth by affecting capital markets and resource allocation (Diallo, 2017).

Corporate governance also has the potential to encourage innovation which inspires

growth. Emerging and developing economies in this era of globalization should enforce a

solid corporate governance system to stimulate banking growth (Ghosh, 2016). A

primary strategy for banks to stimulate bank growth is to utilize the data provided by

their customers effectively. Conducting insightful analysis will help identify new revenue

opportunities and gain a deeper knowledge of customers’ needs (Shanthi et al., 2015). As

a result, there is exponential impact on the customization of products and services to meet

the needs of the majority and grow revenue exponentially. Considering information by

customers represents a robust platform for outgrowing generic product marketing

campaigns. Fufa and Kim (2018) asserted that commercial banks should maximize the

use of database technologies to enhance customer profiles and consequently increase

revenue, strengthen relationships, and keep an accurate account of customer patterns and

interests.

Because customers are cautious about taking financial risks, banks must work

diligently to protect customer investments and maximize their spending potential. To

deliver that service and maximize revenue potential, banks are acquiring investment

companies or expanding their own investment activities (Perrott, 2015). Banks aim to

grow revenue by expanding their customer base. Accordingly, banks are developing

technology-based services that are aligned to the lifestyles of their targeted consumers

(Fufa, & Kim, 2018). Technology expansions such as mobile banking and deposits, text

message alerts on account status, and instant loan approvals via the web are some

initiatives that banks employ to ignite growth.

Training and motivating employees to sell products and services to customers is

an important factor in growing revenue. Front-line banking employees have developed

existing relationship with customers, but with the rise of technology, that relationship can

be threatened by the increase of self-service options. By providing banking employees

with new and existing product information, active profiles that identify customers’

product desires, and incentive programs to encourage relationship building, bank leaders

can induce bank growth (Perrott, 2015). To sustain growth in banks, leaders should

implement strategies that develop organizations to learn faster and better, while being

flexible than competitors (Okorie & Agu, 2015).

Effective leadership in banks. Although the concept of leadership has been

identified as a complex process by which knowledgeable leaders influence followers to

accomplish their programmed goals, there are three unmistakable characteristics that

specifically define effective leadership in banks and enhance organizational climate

(Valero, 2015). The first characteristic of effective leadership in banks is that leaders

have a comprehensive understanding of their internal and external environment and

remain aware of their personal strengths and weaknesses in relation to their

organizational responsibilities. Building knowledge as a leader requires being erudite in

the organizational structure and barriers that may exist to halt effective leadership

practices. The second characteristic of effective leadership in banks is being aware of the

different leadership styles but being able to harness one style to suit a specific

occurrence. Leaders understand that one style of leadership may be more effective than

others in a financial institution setting (Mekpor, & Dartey-Baah, 2017). The third

attribute of effective leadership in banks is setting realistic and attainable goals for the

organization and stakeholders, and proactively accomplishing these goals (Valero, 2015).

To influence employees, leaders should establish goals that provide a sense of direction

and added value to the work for employees.

Effective leadership, which is multidimensional, results in performance increase

for an organization and consists of two dimensions: complexity and red tape (Pasha,

Poister, Wright, & Thomas, 2017). Complexity was measured as the followers’ perceived

levels of authority and whether upward communication was satisfactory (Kaufman,

2017). Red tape was measured as the ability to promote and reprimand employees (Pasha

et al., 2017). Effective leadership involves balancing both complexity and red tape for

leaders and followers to engage in the change management process. Otherwise, the leader

may not obtain the proper support from followers and stakeholders to initiate change.

Effective leadership in banks involves delivering high quality of service to followers,

supports learning and innovation, and promotes an open culture (Gray, Sparrow, & Field,

2016). Investing in effective leadership is vital in banks and requires scanning the horizon

for external and internal threats, identify hindered practices early, championing

innovation, maneuvering improvement, and delivering long-term support (Beenen, 2016).

Muriithi et al. (2018) asserted that effective leadership in banks comprises sharing

personal visions to help subordinates find direction and purpose. Effective leaders

emphasize the vision laterally which results in added malleability and compliance with

those undergoing change in an organization. Effective leadership delves into enhancing

the leadership capacity of an individual by enhancing the self-awareness, self-regulation,

and self-motivation of an individual (Elkington et al., 2017). Leadership that is effective

also promotes a culture that fosters growth and enhancements, which can emerge from

different organizational circumstances. Elkington et al. (2017) proclaimed that effective

leadership in banks would assist workers with developing cognitive skills that include

effective problem solving, perspective taking, systems thinking, and global leadership

awareness. The outcome of effective leadership is heightened team development,

strengthened contextual analysis, and continuous stakeholder engagement.

Donnelly (2017) postulated that to help bank leaders effectively lead financial

management teams, eight aspirational characteristics are prominent: (a) be a good

listener; (b) effectively communicate around an accountability cycle; (c) stress simplicity:

prioritization and pace; (d) expend energy to optimize people development; (e) lead with

optimism; (f) create a culture of wellness and sustainability; (g) have a progressive

attitude toward failure; and (h) project humility over arrogance. Maklan, Knox, and

Antonetti (2014) stated that effective leadership involves building a process on working

teams across the following areas: (a) the role of leadership and the values communicated

by the leaders; (b) the focus on people rather than strategy; (c) the importance of being

consistent and adopting a simple strategy; (d) the dynamic role of culture in ensuring the

evolution of the bank; (e) the ability to confront effectively the changing external

environment; and (f) the ability to exploit technology to accelerate business growth.

During the process of building effective leadership, the leaders set the tone, because

followers thrust the responsibility to leaders to enact change. Strategies need to

continually transform, although people are more constant.

The global financial crisis and leadership. The 2007-2009 financial crisis is

distinguished as the largest economic disturbance since the Great Depression (deHaan,

2017). The crisis had a distressing effect on the U.S. economy and thrusted the country

into a lingering and innate recession. As a result of the crisis, numerous financial

institutions failed, the bailout of banks by governments occurred, mortgages were lost,

and severe downturns occurred in stock markets around the world (Shanthi, Nangia, &

Sircar, 2017). The economic activity of individuals, which includes employment, gross

domestic product (GDP), and employment decreased drastically and was extremely

intense. An intense incline in unemployment began in early 2008 and lasted until the end

of 2009, rising to 7.8% for 46 consecutive months (Carvalho, Ferreira, & Matos, 2015).

Around 8.8 million jobs were terminated during a period when the economy should have

added about 3.1 million jobs to the labor force (Carvalho et al., 2015). This crisis is

ranked uncomfortably close to the Great Depression.

Schoen (2016) identified a few key weaknesses that were delineated by Alan S.

Blinder (2013), that contributed significantly to the 2007-2009 financial crisis and

provides a useful framework to identify the major ethical questions presented by the

financial crisis: (a) banking and inflated asset prices, especially of houses (the housing

bubble) but also of certain securities (the bond bubble); (b) excessive leverage (heavy

borrowing) throughout the banking system and the economy; (c) disgraceful banking

practices in subprime and other mortgage lending; (d) the perverse compensation systems

in many financial institutions that created powerful incentives to go for broke. Some

scholars believe that the proper leadership is the remedy to a global financial crisis.

Leadership during a crisis is denoted as the actions taken by a leader during a

hostile situation, to bring immediate change in the behavior, beliefs, and outcomes of

individuals (deHaan, 2017). Crisis leadership is often practiced in response to an

organizational crisis defined as a low-probability, high-impact event that causes a

significant disruption or threat to the organization. Crisis leaders have many challenging

decisions to make, as numerous factors exacerbate arduous situations, such as media

pressure, organizational chaos, and inaccurate information (Pampurini & Quaranta,

2018). A leader must continuously scan the horizon in search of external and internal

potential crises (Schoen, 2017). Given the critical role of leaders during an organizational

crisis, and in this instance a global economic collapse, organizations should analyze

leadership’s response to major crises to further the understanding of leadership through

crisis in the banking industry (deHann, 2017).

Though a crisis can be an equivocal event that changes the culture of an

organization, several actions represent the need for rapid decision making. The

recognition that procrastination could cause calamitous results, threatening the priorities

of the organization and aggregating improbability (Schoen, 2017). Bank leaders need to

be decisive, self-confident, and accountable of the followers’ responses. Bank leaders

need to enhance their communication skills during a crisis. A discussion on crisis

leadership follows. An effective leader would need to act critically, engage in

sensemaking, train and prepare for a crisis, and create loyalty during a crisis (Carvalho et

al., 2015). Ramakrishna et al. (2016) added communication with the team is essential for

response, which includes communication between leaders and followers, peers, and

stakeholders. In addition to the characteristics of a leader in a time of crisis, the public

has several expectations of leaders (Hearit, 2018), which include being prepared, warning

others of the crisis, providing direction, honesty, and striving to learn and implement

lessons to avoid crises in the future. These characteristics can serve a leader well and help

to create a post-crisis prosperous event. In addition, during a crisis, the leader must

recognize the existence of the crisis.

Ramakrishna et al. (2016) detailed that during the time of the financial crisis,

bank leaders were irresponsible, greedy, and exercised bad faith in the risk-taking

process, and were solely driven by performance-based compensation. Osemeke and

Adegbite (2016) attributed the global financial crisis to dysfunctional bank leaders who

compromised their integrity and organizational interest in pursuit of self-interests. To

remedy the crisis, leadership is viewed as the antidote for organizational change, to help

dissipate the climate of fear and uncertainty resulting from the crisis. Shanthi et al. (2015)

proclaimed that globalization and trade deregulation enabled immense capital flows of

banking amongst banks. The proper leadership is necessary to retain clients. In this sense,

banks are socially responsible to build relationships with clients, employees, and

stakeholders to obtain loyalty. The final result enhances the development of banking

institutions and benefits society unanimously (Hoorn, 2015).

Kiran (2018) maintained that regulators must recognize that applying a

framework is vital to effectively respond to evolving markets and environments. In doing

so, the market may become more stabilized and convince customers that the financial

market is safe. Ultimately, the responsibility falls on bank leaders to distinguish the

hazards of being overconfident, unfair, deceitful, and unethical (Hearit, 2018). The bank

leader should work diligently to design more efficient processes to limit overextension of

credit and risk taking. Excessive risk taking was a demise of numerous banks during the

crisis and fueled by inappropriate compensation brought about the default of many banks

during the crisis and the loss of mortgages (Hoorn, 2015).

Commercial banking industry. Commercial banks are vital in the economy

globally. The prominence of commercial banks continues to increase and serve as a

trusted and safe place where people can manage their funds. Internationally, commercial

banks serve as a foundation for transferring money from one country to another,

eliminating the need to travel with large sums of money. Economic growth is fostered

through the lending and receiving of money to innumerable businesses and individuals

(Wang, Lee, Augenbroe, & Paredis, 2017). Commercial banks are important because they

develop the economy by assisting various consumers with purchasing large items that

they otherwise would not be able to purchase without bank financing assistance (Kumar,

2017). Commercial banks entrust customers to repay their debts in a timely basis. The

advantage lies in the ease for the borrowers to repay the money with interest charges. The

key aim of a commercial bank is to make a profit for its shareholders. The main way

profit is generated is by giving loans. Another aim which can conflict with the key aim is

what is known as liquidity. Banks must ensure that they can meet their customers’

requests to withdraw money from their accounts (Wang et al., 2017).

The commercial banking industry can enhance their competitive advantage and

increase employee morale if the industry efficiently and carefully employs their

resources. The derived results of enhancing competitive advantage and increasing

employee morale will yield maximum outputs and increase performance indicators.

Commercial banks should practice becoming more efficient and leadership should use

efficiency analysis as a regulated benchmark to identify areas of concern for commercial

banks. Bhatia and Mahendru (2018) presented two foremost methods of measuring

efficiency in the banking industry: the production approach and the intermediation

approach. The production approach considers banking activities as the production of

services to depositors and borrowers, so that the outputs are different types of

transactions or accounts (both deposits and loans), while the inputs are physical resources

(such as human capital capital). Conversely, the intermediation approach perceives banks

primarily as intermediaries of funds between savers and investors, so that the inputs are

essentially different types of financial and the outputs are the different types of loans and

investments (Bhatia and Mahendru, 2018). Several studies have addressed the question of

leadership efficiency and the effects on the commercial banking industry (Sarmiento,

Mutis, Cepeda, & Pérez, 2018). Researchers frequently use the Data Envelopment

Analysis (DEA) model, which evaluates banks leadership skills in relation to efficiency

and effectiveness (Bhatia and Mahendru, 2018). The general evaluation method of the

DEA model is to examine leadership operations, operating expenses and interest

expenses as inputs, and bank interest income, fee-based income, and bank investment

income as outputs. The results indicated that leadership does have an impact on the inputs

and outputs, which can significantly impact capital adequacy of commercial banks.

Researchers believe the global financial crisis and other regulatory bank

examinations can influence the power of banking and banks, and that banks can learn

vicariously from the experiences of others in an organization. Vicarious learning in the

commercial banking industry is recognized as a definite way to acquire knowledge

(Myers, 2018). Vicarious learning from other banks delves into the leadership practices,

routines, strategies, and designs of apparently successful organizations (Kumar, 2017).

Normative theories and leadership managers emphasized learning from others as a best

practice to be successful and formalized benchmarking procedures to evaluate growth

(Collins & Porras, 1994; Peters & Waterman, 1982). Bank failures and near-failures can

propagate vicarious learning by other banks. Vicarious learning can involve different

steps and processes. Industry-level failure or near-failure experience can trigger a bank to

engender new activities (Myers, 2018).

Starting from the early 1980s, several factors injected greater unpredictability into

the once inert commercial banking industry. During this time, banks experienced various

deregulations, which allowed other types of firms to expand and erode the traditional

customer base of banks (Sarmiento et al., 2018). To remedy this situation, many

commercial banks began exploring risky commercial real estate development

opportunities and resulted in a downward spiral of turmoil. Throughout the late 1900s

and early 2000s, numerous banks failed, which resulted in heightened leadership

techniques and activities amongst the surviving banks to remain competitive. Banks can

increase employee morale and decrease turnover by observing and learning and can

improve their chances of survival by avoiding strategies and actions taken by

unsuccessful banks (Myers, 2018). Observing failures of others can also prompt firms to

evaluate the contexts of these failures and to determine whether they might be subject to

a similar fate. Firms can then take steps to increase leadership capabilities or develop new

strategies.

The commercial banking industry should continuously expand to create

competitive advantages and increase revenues through new product offerings or new

markets or both (Rezaee & Jafari, 2017). Some researchers believe that commercial

banks should consider exploitative expansion as a key strategy to expand the target

market throughout its existing business settings, mainly by enriching its existing product

lines in an attempt to satisfy a broader scope of customer segments (Rezaee & Jafari,

2017). Prior studies addressed the impacts of business expansion in the commercial

banking industry on sales growth, finance ability, short- and long-term revenues,

leadership contributions, and marketability (Park, 2016). Marketability is the extent to

which financial performance translates into market capitalization and stock prices, which

results in value creation and firm efficiency. Commercial banks are important because

they acquire other banks which expand their geographic and product markets by

converting acquired banks into local affiliates or branches (Rezaee & Jafari, 2017).

Transition

The intent of this qualitative case study was to explore effective leadership

practices of bank leaders to improve employee morale and mitigate employee turnover.

The results from the interviews conducted might assist banks with entrenching effective

leadership practices in their organizational climate. Section one of this study focused on

the introduction of the research topic, background to the research problem, the problem

statement, the purpose statement, nature of study, the central research question, as well as

the interview questions asked to participants. The discussions were continued and

focused on the conceptual framework for the study, the significance of the study, the

review of the professional and academic literature, and assumptions, limitations, and

delimitations. In section 2, I discussed information about the role of the researcher,

participants, research methodology and design, and population sampling. I discussed the

data collection instruments, techniques, and analysis from the semistructured interviews

and direct observations. Finally, I discussed the reliability and validity of the research to

ensure requirement standards were met.

Section 2: The Project

In Section 2, I focus on strategies bank leaders implement to improve employee

morale and mitigate employee turnover. Maden et al. (2016) argued that increased morale

is the result of an organization’s climate, which influences the ethical decisions that

employees make. I describe in detail the steps I took to explore the strategies that bank

leaders use to improve employee morale and mitigate employee turnover. The major

topics I discuss in Section two include the role of the researcher, the research method, the

research design, the participants, and ethical considerations in research. In Section 3, I

present my findings and discuss the themes identified. I also discuss the application to

professional practice, implications for social change, recommendations for action and

further research, personal reflections, and my conclusion.

Purpose Statement

The purpose of this qualitative single case study was to explore strategies bank

industry leaders implement to improve employee morale and mitigate employee turnover.

The population included four bank leaders in the United States who have successfully

applied effective leadership to improve morale and mitigate employee turnover. The

results of this qualitative study may improve bank functionality and performance, thus

fostering a stable workforce that may catalyze local economies. As a result, bank

customers may receive elevated customer service, and the bank organization may achieve

lower job turnover resulting in positive social change in communities (Lu & Gursoy,

2016).

Role of the Researcher

My role as a researcher was to ensure the integrity of the research process. The

role of the researcher encompasses locating interview participants, collecting and

analyzing information, and ensuring all interview responses are kept confidential (Heale

& Twycross, 2015). Prior to each interview, I composed an e-mail to all finalized

participants. During the interviews, I recorded the dialogue between the interviewee and

me for further transcription and elucidation.

My research involved the banking industry setting, and I have five years’ of

banking industry experience, so I ensured the degree of affinity that I had with the

population was without prejudice. I proactively managed any potential conflicts of

interest by not participating or involving in the study any participants with whom I have

personal or business relationships. Throughout the interview and data collection process,

I remained strictly a student researcher. I employed an interview protocol to consistently

focus on the interview responses only and to separate my personal perspective from

objective data provided by participants (see Marshall & Rossman, 2016). Implementing

an interview protocol ensured that my previous experience in the banking industry would

not influence data interpretation. My interview protocol consisted of the interview

questions and step-by-step guidance that can be used for conducting each interview. To

eliminate research bias in this aspect, I administered the questions in the same way for

each participant and asked for the participants to identify ambiguities and difficult

questions. A bias I eliminated was inadequately preparing for the field research. To

mitigate potential bias in the research, I adopted several measures presented by Yin

(2018) including engaging in interviews with participants with an outside third person,

writing memos during data collection, and maintaining a reflective journal. I interviewed

four bank leaders of successful banks that have over five years of bank leadership

experience. To ensure alignment of the research question and interview questions with

the problem statement, I employed the member checking mechanism. The member

checking process allowed participants to provide feedback to improve the consistency,

validity, and reliability of the study (see Naidu & Prose, 2018).

I recorded the time taken to complete each interview, decided whether the

interview was reasonable, and better recorded participants’ time commitments in the

Institutional Review Board (IRB) protocol. The IRB provided oversight and ensured the

research complied with ethical standards and the three foundational ethical principles

outlined in the Belmont Report: respect-for-persons, beneficence and nonmaleficence,

and justice (Miracle, 2016). Respect-for-persons focuses on acknowledging and

protecting autonomy and participants being free from coercion (Adashi, Walters, &

Menikoff, 2018). Beneficence and nonmaleficence constitutes an ethical obligation to

protect the well-being of persons by applying a risk-benefit ratio and assuring that the

research is adequately designed (Miracle, 2016). Justice requires that fair procedures are

present during the research process and mandates the researcher be free of all biases

(Adashi et al., 2018).

The Belmont Report is crucial in outlining ethical considerations in research. The

integrity, reliability and validity of the research findings rely heavily on adherence to

ethical principles (Saunders et al., 2015). In qualitative research, ethical standards prevent

such evenutalities as the fabrication or falsifying of data and promote the pursuit of

knowledge and truth, which is the primary goal of research (Maden et al., 2018). During

the semistructured interviews, I maintained a reflective journal to minimize personal

biases and to record and capture key information presented by the interviewees. A chief

strategy to gain informed consent involves alerting participants to the nature of the case

study and formally soliciting their volunteerism in participating in the study. I conformed

to the informed consent guideline by explaining to participants that they can withdraw at

any point during the interview process and required each participant to complete an

informed consent form. My responsibility was to protect those who participated in my

study from any harm, including avoiding the use of any deception in my study. The

informed consent is the only place where the participant’s name was present on any of

the research information.

Participants

The primary focus of this study was on the banking sector in the United States,

where more than 100 commercial banks are positioned. The population of the study

consisted of one bank and four bank leaders who have successfully applied effective

leadership to improve morale and mitigate employee turnover for over five years. To

effectively evaluate the amount of effective leadership practices, I purposefully sampled

four banking participants via LinkedIn who were employed at the bank I used for the

study. I selected the bank that met the following criteria to participate: in operation for

more than 20 years, consistently profitable, and a minimum of 50 branches. The

solicitation of willing participants began after securing approval from the IRB.

Levels of access vary depending on the depth needed to achieve a goal. The levels

of access are: physical, continuing, and cognitive (Saunders et al., 2015). I needed all

three levels of access to complete this study successfully. First, I needed to gain physical

access to the participants by contacting them on LinkedIn or another social media profile

and then e-mailing the informed consent form to potential participants. I also needed to

attain cognitive access because my research involved human participants, by asking

demographic, probing, and strategic interview questions. The participants steered the

direction of the research to secure value (Yin, 2018).

Research Method and Design

Selecting an appropriate research method and research design is pertinent to a

study (Alderfer & Sood, 2016). The selection of a research method depends on the central

research question and appropriate data collection method. The central research question

of my study was: What effective leadership strategies do business leaders in the banking

industry use to improve employee morale and mitigate employee turnover? I sought to

explore the different leadership skills that can either augment or undermine

organizational climate.

Research Method

The three methods available for researching a topic are qualitative, quantitative,

and mixed methods. The quantitative approach was not appropriate for this doctoral study

because I was not seeking to determine if there was a significant relationship between

two or more variables through testing hypotheses. In using mixed methods, researchers

combine qualitative and quantitative methods to gain an in-depth understanding of a

phenomenon (Makrakis & Kostoulas-Makrakis, 2016). My intent was not to collect

numerical data, because I focused on what and how turnover is reduced, not how much

turnover has been reduced; a mixed method approach was inappropriate for this study. In

a quantitative study, a researcher tests a theory or theories using predetermined variables

but cannot explore experiences of the participants (Yin, 2018).

The qualitative method was more appropriate for my study in applying theory to

human experience. The qualitative method entails the evaluation of issues and subjects in

depth and full detail (Saunders et al., 2015). The chosen research method for my doctoral

study and my research philosophy are equivalent. Interpretivism emphasizes that humans

are different from physical phenomena because they create meanings (Marshall &

Rossman, 2016). A qualitative research method was more appropriate for my doctoral

study because qualitative research includes experiences of participants through

interviews, personal observations, focus groups, and case studies (Saunders et al., 2015).

Qualitative measures assess mostly self-regulated learning as an event, the data being

collected during learning (Yin, 2018). Observations in a qualitative study measure what

leaders are doing in the moment rather than what they remember or think that they do.

Qualitative observations also relate behaviors to task environments, especially

those where feedback is available within the boundaries of a task (Alderfer & Sood,

2016). Conducting qualitative research provides a clearer understanding of the how and

what of the targeted market. On the contrary, positivistic (quantitative) methods are

focused on the philosophical stance of the natural scientist and entail working with an

observable social reality to produce law-like generalizations (Saunders et al., 2015).

Qualitative researchers focus on the assumptions of the phenomenological paradigm,

which proposes multiple realities (Firestone, 1987). While rhetorically different, the

results of both quantitative and qualitative research can be complementary (Firestone,

1987).

Qualitative researchers call for flexibility. Instead of developing a structured

survey with fixed questions and response categories, they allow the questions to emerge

and change as the researchers become more familiar with the subject area (Phipps, 2017).

This could alter the results of a future study. Using a quantitative approach would require

the implementation of numerical data mining and the testing of study hypotheses

(Saunders et al., 2015). Using a qualitative research method provides a real-time analysis

of the leadership skills, strategies, or the lack thereof in the banking industry. The choice

of using a qualitative research design is to create new, richer understandings and

interpretations of social contexts (Marshall & Rossman, 2017).

Research Design

Colorafi and Evans (2016) postulated that the five most common designs for the

qualitative inquiry are narrative, ethnography, phenomenology, grounded theory, and

case study. Narrative research design study was not appropriate for the study since my

primary focus was on multiple bank leaders rather than just one. Ethnography involves

studying cultural behavioral differences, which was not suitable for this research (Jansson

& Nikolaidou, 2013; Raab, 2013). A phenomenological researcher explores individuals’

pass experiences from the point of view of those living the phenomenon (Errasti-

Ibarrondo et al., 2018). A phenomenon is something that is finite and definable rather

than nebulous or unclear (Marshall & Rossman, 2016). Phenomenology is generally

embedded in the phenomenological research design of another research method, such as a

case study or ethnography (Obizoba, 2018). The phenomenological researcher describes

only one aspect of human experience not bounded by time or location and was not

appropriate for this study. My intention was to explore strategies successful bank leaders

employ to increase employee morale and mitigate employee turnover, rendering a

phenomenological approach to be inappropriate for this study. The grounded theory is a

design that researchers exercise to develop theories to explain a particular phenomenon

(Marshall & Rossman, 2016).

A qualitative case study was the most appropriate design for this study. Case

studies are an esteemed research approach for numerous years. A qualitative case study

depicts a comprehensive investigation into a specific topic within a real-life setting

(Saunders et al., 2015). The specific case can represent a manager, work team,

organization, association, and event. There are five critical components of a case study

research design: interview questions, its propositions, units of analysis, logical linking the

data to the propositions, and the criteria for interpreting the findings (Yin, 2018). The

first three components, defining your study’s questions, propositions, and unit of

analysis, will lead the research design and identify all pertinent data. The last two

components, defining the logic linking the data to the propositions and the criteria for

interpreting the findings, will lead the design into anticipating the case study analysis,

suggesting the next steps after collecting the data (Yin, 2018). Also, applying the case

study approach depends on clear boundaries of place and time, and can be a single or

multiple case? study.

Using multiple sources of evidence will result in the emergence of new learning,

as the researcher becomes more familiar with the research area (Colorafi & Evans, 2016).

I selected at four bank leaders of a successful bank who have over five years of bank

leadership experience, which increases evidence and validity. Case study research is

often used when the boundaries between the phenomenon being studied and the context

within which it is being studied are not always apparent (Marshall & Rossman, 2016).

Typically, a case study has a defined space and committed timeframe to be completed

(Ridder, 2017). Case studies are based on interviews conducted over a short period of

time. Phenomenological studies do not adhere to a short, defined timeframe. The

information collected should be consistent and recent in this allotted timeframe. The cost

of a case study can vary. Surveys, which are mailed and can be costly, are a prominent

type of research method, but interviews and observations should not be as expensive. The

deeper a researcher delves into data discovery, the greater the potential related costs

(Colorafi & Evans, 2016). The case study must involve multiple sources of data about the

entity under investigation to gain a broad, robust understanding (Marshall & Rossman,

2016), and can become costly.

The underlying purpose of the case study is to determine the dynamics of the

topic being researched (Saunders et al., 2015). Case studies are beneficial in leading to

rich, empirical descriptions and the development of theory (Yin, 2018). Another benefit

of using a case study is to deeply and fully understand the context of the research at hand.

Positivists and interpretivist researchers use deductive and inductive reasoning for

descriptive, exploratory, and explanatory case research (Saunders et al., 2015). A primary

benefit of the case study process is the prevention of scope creep and the focusing within

the confines of space and time on a specific case (Marshall & Rossman, 2016). Selecting

the case study process provides an opportunity to collect different kinds of data about the

specific case. The change to receive an in-depth visual at the case is beneficial (Marshall

& Rossman, 2016). A primary benefit of the case study outcome is the provision of a

comprehensive understanding of the case. A further result is the examination and ability

to learn from the case and consequently to apply the principles and lessons learned in

situations. Case study designs lead to transferability, which is equivalent to external

validity, and refers to the transfer of the original findings to another context (Morse,

2015). A case study researcher typically delves into several phases, including describing,

interpreting, drawing conclusions, and determining significance, because the researcher

can provide a thorough description of the case (Marshall & Rossman, 2016).

Population and Sampling

The population for this qualitative single case study comprises four bank leaders

who have five years’ experience in successfully applying effective leadership to improve

morale and mitigate employee turnover in the United States. The determination of an

appropriate sample size during research is vital as a part of qualitative design that

depends on theoretical and practical examinations (Rosenthal, 2016). I selected one bank

that meets the following criteria to participate: in operation for more than 20 years,

consistently profitable, and a minimum of fifty branches. The commercial banks I used in

this study are large banks with over 500 employees. The United States economy is

continuing to flourish and is heavily dependent on financial resources to thrive and grow.

I implemented purposeful sampling method, because this method provided logic

through information rich cases for study in depth (Benoot, Hannes, and Bilsen, 2016).

Information rich case studies are studies which can generate knowledge about issues of

central importance to the purpose of the inquiry. Studying information rich cases, which

are purposely sampled, yields insights and in-depth understanding rather than empirical

generalizations (Aly et al., 2018). Purposeful sampling is a traditional sampling method

that ensures sufficient information is gathered in relation to the study (Tran et al., 2016). I

implemented purposeful sampling in this study because this type of sampling delves into

examining the complexity of different conceptualizations. Benoot et al. (2016) posited

that purposeful sampling provides an opportunity to include emerging perspectives of

participants to the study, such that the outcome supports the research purpose. Although

purposeful sampling is a time-consuming activity that requires a lot of resources and

flexibility from the researchers, purposeful sampling creates potential to arrive at a rich

conceptual model that can be useful for clinical practice (Benoot et al., 2016). I used

purposeful sampling when selecting the participants in this study.

Data saturation is the point in data collection and analysis when new information

produces little or no change to the codebook (Tran et al., 2016). Data saturation, an

elastic notion, depends on the topic, purpose of the research, participants, methods of data

collection, and analysis (Morgan, 2016). I ensured data saturation by interviewing the

same participant until no new data is available, or until no new themes emerged. A

researcher attains data saturation when the data becomes so rich that no further coding is

necessary (Zhang et al., 2017). Researchers see in their data redundant instances, which

make them empirically confident that their categories are saturated, the descriptions of

these categories are thick and a theory can emerge (Rosenthal, 2016). I obtained data

saturation by confirming the reliability and validity of the research.

The participating organization was comprised of one large commercial banking

institutions in the United States. Large banks are classified as having 500 or more

employees (Biswas, Gómez, & Zhai, 2017). I ensured the interview participants are

knowledgeable and have the capability of employing the recommendations in this study

to develop the reliability of banks. The goal was for the interview participants to use this

study to improve banking profitability and prevent strategic leadership failure. I selected

interview participants that are capable of providing rich context and dialogue to the

research questions, and who can apply and explain the successful experience and

knowledge acquired in the banking industry. The research participants only consisted of

bank leaders who are successful in improving employee morale and mitigating employee

turnover.

I interviewed each bank leader face-to-face, in a quiet location in the United

States, where minimal distractions and disruptions for the participants and the interview

recording existed. Interviews occurred at the participants’ convenience. I established an

interview protocol that consist of interview questions and follow-up questions, which are

used to explore participants’ perspectives. Each interview lasted 30 minutes and did not

begin until Walden University IRB approval is granted. After submitting the approval

request to the IRB and before conducting interviews, I solidified the participants work

experience and qualifications to ensure participant eligibility in advance of conducting

interviews.

Ethical Research

Ethical deliberations in research are critical. Ethics are classified as the norms or

standards for conduct that distinguish between what is right and what is wrong (Morgan,

2016). The integrity, reliability and validity of the research findings rely heavily on

adherence to ethical principles, and in qualitative research, ethical standards prevent

against such things as the fabrication or falsifying of data and promote the pursuit of

knowledge and truth which is the primary goal of research (Saunders et al., 2015).

Applying ethical standards protect research participants and do no harm guiding

implementation, if human subjects are utilized in the study (Torous, & Nebeker, 2017).

To address these ethical deliberations, Walden University has developed an IRB. An IRB

is a panel of professionals who ensure the safety of human participants in research and

who assist in making sure that human values are not dishonored. The IRB is responsible

for granting proposals to assure ethical practices. The use of an IRB also helps to protect

the institution and the researchers against potential legal implications from unethical

occurrences. I gained approval through Walden’s IRB before proceeding with the study

and contacting the participants. Walden University’s approval number for this study was

04-24-19-0739447, and it will expire on April 23

, 2020.

The ethical treatment of the target population is crucial. Written approval from the

partnering banks is pertinent before conducting interviews and the IRB committee

examined the approval (Torous, & Nebeker, 2017). I ensured that the study was in

accordance to high ethical standards. The participants in the study signed an informed

consent agreement, which served as an acknowledgement of full participation in the

study. An informed consent agreement provided permission for the recording of the

interviews. I had human interaction and ensured the ethical protection of all participants.

Pseudonyms were used to replace actual personal identifiers to protect the interest of the

target population (P1, P2, etc.); confidential labeling of electronic data will occur

(Greenwood, 2016). The information gathered in this study will not be accessible by

anyone other than me, and the privacy of all participants is vastly considered at all stages

during the research process. I will destroy the data that is acquired five years after the

research has been completed. An additional ethical consideration for the banking industry

consists of face-to-face interviews. I approached the appropriate local employers to

receive bank leader contact recommendation.

Greenwood (2016) argued that participant contributions in research should be

coded and labeled. Another ethical consideration consists of putting aside views of the

phenomenon to eliminate self-bias and acquire a deeper level of understanding the

strategies utilized in the banking industry. Building trust with participants involves being

transparent and begins by explaining the process and expectations (Saunders et al., 2015).

This target population of this study was four bank leaders and its ethical considerations

impact the process and the overall value of my doctoral study, because the considerations

provided a solid research foundation to drive the direction of research. I made the

participants aware that the research is completely voluntary and that their confidential

responses have an immense impact on the research process. I made the researchers aware

that they can withdraw at any time without penalty. The ethical considerations in this

research implied positive social change, in that the considerations investigate strategies

that managers employ to reduce turnover and improve employee working climates. The

results might determine what strategies are successful in fostering a positive work

environment. To protect the interest of the target population, I used pseudonyms (P1-

P06+). The participants received no compensation for their involvement in the study.

After my study is approved by Walden University, I will provide all participants with a

summary of results and an electronic copy of the research study. I will share the results

with bank leaders at the bank I used to gather the information from.

Data Collection

The objective of this component of the study was to discuss the data collection

instruments and data collection techniques used to assemble the data. In qualitative

studies, a researcher collects data from multiple sources to ensure methodological

triangulation (Yin, 2018). The purpose is to use two or more independent sources of data

and methods of collection within one study to ensure that the data is complete and

accurate (Saunders et al., 2015). My plan was to ensure methodological triangulation by

collecting data from semistructured interviews and direct observations. When conducting

a single case study, determining the ideal sample size is essential to achieve data

saturation (Marshall & Rossman, 2016). I interview four bank leaders and continued until

I reached saturation.

Data Collection Instruments

In this study, I was the primary data collection instrument to interview and educe

information from the participants. I employed four semistructured interviews to ask open-

ended questions and gather in-depth information about the perspectives and experiences

of bank leaders in mitigating employee turnover and improve employee morale. I asked

probing questions to elicit more data. Strong and effective interviews engage and

encourage the participant to provide transparent and concise information. Effective

interview strategies for addressing participants include clear explanation and information

on how the interview will proceed, using open-ended questions and probe, balancing

rapport and neutrality, appropriate body language (Yin, 2018). I implemented research

journals to record and capture key information presented by the interviewees during

semistructured interviews and recording devices to capture the information. I enhanced

the reliability and validity of the data collection process by employing member checking

and increase trustworthiness.

A logical sequence of extracting information from participants involves

employing the same interview questions to all the participants in the same manner (Birt et

al., 2016). This enhances the consistency of the interviews and captures the diversity of

views from participants. The effective use of the interview protocol improves the

instrument credibility and is critical to ensure data is accurate and of high quality.

Applying strategies such as using open-ended questions and balancing rapport and

neutrality will enhance the interview (Yin, 2014). I used an interview protocol to improve

data consistency and data credibility.

When conducting my research, I kept field notes so that I could provide the logic

behind every decision from a theoretical perspective. Heale and Twycross (2015)

postulated that researchers can effectively triangulate data based on observations. I used

direct observations to gather data of participants. Appendix A contains the interview

questions. Appendix B contains the interview protocol. After the completed transcription

of each interview, I provided transcripts to the participants validate. This ensured the

opportunity to review and validate gathered feedback.

Data Collection Technique

An interview is classified as a topic-focalized conversation. A semistructured

qualitative interview is a method in which the interviewer directs the interviewee to

answer specific research questions in an orderly manner. Since the 1990s, research

interviews have been considered one of the main methods for gathering qualitative data

because they give researchers the opportunity to extend their knowledge of how people

make sense of the world (Fernandez, 2018). Usually, qualitative, semistructured

interviews result in a large amount of detailed and contextually loaded data. Establishing

the position of the researcher and making sense of the research is a significant concern in

a semistructured interview (Fernandez, 2018). Most of the data collected from interviews

is in the form of texts, either oral or written, and can be face-to-face or video recorded.

Conducting face-to-face interviews contributes to the direct observations of the

researcher and grants the ability to hear, see, and feel the participants’ experiences. Other

data can be useful when the interview is video recorded or is mediated by another

communication channel, such as a video call interview; the verification of transcripts by

participants remains one of the focal elements of interview analysis. The verifying of

interview transcripts ensured data accuracy (Patel, Berg, Begley, & Schaufelberger,

2018). The interview protocol employed (see Appendix B) contains interview questions

and a step-by-step guidance directing the researcher through the interview process.

A primary advantage of conducting face-to-face interviews is the researcher can

clearly identify body language and facial expressions are better understood through direct

observation. Another advantage of face-to-face interviews is the interviewer is able to

probe for explanation of responses without intimidating the participants (Marsall &

Rossman, 2016). In face-to-face interviews, the researcher can build rapport and trust

while simultaneously gaining a deeper insight of the participants’ perspective (David,

Hitchcock, Ragan, Brooks, & Starkey, 2016). A primary disadvantage of face-to-face

interviews is the inclination for research bias because of the presence of the researcher

and intimidation to participants. An elevated level of research bias will generate

inaccurate conclusions (David et al., 2016). In a face-to-face interview, the participant

may disregard their true opinion and not provide accurate feedback to please the

researcher. I remained cognizant to avoid personal bias that can skew interview results.

Mitigating personal biases ensured the data collected is credible. Yin (2018) proclaimed

that case study researchers need to guarantee construct validity through the triangulation

of multiple sources of evidence, transcript reviews, or member checking.

Member checking is fundamental in establishing credibility in qualitative studies

(Naidu & Prose, 2018). Internal validity is achievable using pattern matching, and

external validity through analytic generalization (Heale & Twycross, 2015). Member

checking is a technique that allows the researcher to share the interview data with the

participants to ensure the transcription is accurately recorded and credible and to prevent

bias when presenting information amongst new investigators (Birt, Scott, Cavers,

Campbell, & Walter, 2016). Member checking was a fundamental step in the process to

first ensure I interpreted the information correctly. The primary strategies of credibility

are persistent observation, triangulation, negative case analysis, peer review, and member

checks. I employed a member checking technique to mitigate bias and increase credibility

of the research (Naidu & Prose, 2018). To employ member checking, I paraphrased the

participant’s responses for each question into my own words. I asked the participant to

ensure that the research accurately interpreted the intended message for each question.

I comprised the data collection technique to include semistructured interviews and

direct observations. Persistent observation is necessary for producing thick, rich data.

Since the purpose of this study was to identify what strategies bank leaders employ to

mitigate employee turnover and increase employee morale, the semistructured interview

was appropriate for this study. Semistructured interviews allow for focused,

conversational, and two-way communication to give and receive information (Marshall &

Rossman, 2016). Semistructured interviews can provide reliable, transferrable qualitative

data. Through semistructured interviews, open ended questions greatly capture the data

that enriches the study results.

Sequel to each interview, I observed the daily routines of the study participants.

Participant observation is a research method which involves the researcher joining a

group and looking at the participants’ activities or daily lives. While observing the

participants, I recorded accurate and concise field notes in a journal. The field note

journal housed the gathered data focusing directly on the leadership practices devoted by

the bank leaders. I used an interview protocol (see Appendix A) to validate the

semistructured interview responses. Some primary advantages of direct participant

observation include (a) validity that produces rich qualitative data which shows how

people really live in real time, (b) insight to gain empathy through personal experience

which contributes to authentic data, and (c) flexibility of natural research (Brutona,

Mellalieub, & Shearerc, 2016). The disadvantages include (a) the participant risk of

getting involves which could lead to giving biased data, (b) participants may not behave

like them normal selves during the observation process, and (c) data collection occurs

from the viewpoint of the observer (Yin, 2018).

Data Organization Technique

To maintain the research progress, I kept a research log of the gathered data. I

protected all of the research data, such as the semistructured interviews and direct

personal observations field notes. Research journals require researchers to keep track of

their research process and produce an artifact or results describing and reflecting on that

process (Snow, 2018). The use of a journal will help capture pertinent research

information such as the dates of interviews, interview questions, and general

observations. The reflective journal that comprises the field notes from observations and

will assist the researcher with interpreting the field data. I used a transcription application

on an iPhone smartphone to record and transcribe the interviews into text. Upon

transcribing the interviews into text, I backed up the data onto to a flash drive and

external Google cloud drive. I ensured the stored data is password protected for

confidentiality. The data will be stored for five years in a locked cabinet in my home. I

will destroy all physical data five years post study.

Data Analysis

The purpose of this qualitative single case study was to explore strategies bank

industry leaders use to improve employee morale and mitigate employee turnover.

Triangulation is comprised of methods and the collection of sources, including

interviews, observation and field notes, and documents. Triangulation contributes to the

creation of inventive methods and consists of new ways of evaluating a problem with

balance. There are four methods of triangulation including: (a) data triangulation, (b)

investigator triangulation, (c) theoretical triangulation, and (d) methodological

triangulation. The appropriate data analysis process for this case study was the use of

methodological triangulation. This method allows tractability and inspires the researcher

to evolve and improve the process continuously (Saunders et al., 2015). Methodological

triangulation involves the use of multiple methods that assist researchers with discovering

various dimensions in a phenomenon (Márcio, Leonel, Carlos, & Rafael, 2018). I ensured

methodological triangulation by collecting data from interviews and observation. The

purpose of methodological triangulation is to use two or more independent sources of

data and methods of collection within one study to ensure that the data is what the

researcher thinks it should be (Saunders et al., 2015). I also used the method of data

triangulation by collecting data from sources such as internal letters, company websites,

and social media to further confirm the validation process and data interpretation.

Triangulation refers to the use of two or more sets of data or methods to answer one

question (Morse, 2015). Congruently, validity refers to being objective and implementing

triangulation and the audit trail (Morse, 2015).

I made follow-up telephone calls to the participants to illuminate my

interpretation of their responses to ensure reliability and validity. Interview data,

triangulation sources, evidence from the literature review, and the conceptual framework

are the foundations of data analysis (Marshall & Rossman, 2016). The responses garnered

by the participants from the interview questions (see Appendix B) in conjunction with

direct, personal observations assisted in answering the research question: What effective

leadership strategies do business leaders in the banking industry implement to improve

employee morale and mitigate employee turnover? I articulated between interview and

observation in leadership studies, in which the efficiency of a leader is studied by means

of both interviews with leaders and, concomitantly, the study of their behavior.

Qualitative researchers use a filing system to facilitate data management (Morse,

2015). I used an alphabetical and numerical coding system to maintain the privacy and

confidentiality of the participating commercial banks and participants. Implementing a

coding method is necessary to ensure the privacy of the participating banks and the

participants, and to isolate common perspectives that may form from the interviews

(Naidu & Prose, 2018). This enhanced the validity and reliability of my data analysis. I

stored the data composed during the interview on a password protected computer facility

and in a fireproof cabinet for a minimum of five years and will dispose the information

thereafter.

I used a sequential thematic coding process to complete the data analysis, which

will consist of: (a) compiling the data, (b) reviewing the data, (c) interpreting the meaning

of the data, and (d) concluding the data. The coding process requires data reduction and

data interpretation (Marshall & Rossman, 2016). For step A, I compiled the data to

establish groups by defining the predetermined issues or problems. For step B, I reviewed

that data and implement member checking. Step C involved data coding, analyzing

patterns within the interview transcripts, field observations, and archival documents. To

effectively transcribe the data, I used an application of the iPhone before pasting into a

Microsoft word document. I focused on the major themes that consistently emerged from

the interviews. Theme identification is one of the most fundamental tasks in qualitative

research. Themes emerge from word reposition and key indigenous terms. To analyze the

common themes of the transcribed data, I used the NVivo10® software for content

analysis. The NVivo10 software is instrumental in examining the relationships between

the congregated data (Lensges, Hollensbe, & Masterson, 2016). To reinforce recorded

interview information, I used NVivo to manage and organize data according to common

words, phrases, and emerging themes. NVivo is a powerful workspace for qualitative

analysis that will enhance the consistency of data coding (Samad & Steven, 2018). I

coded the analyzed data using NVivo10® and sorted the coded words into categories for

theme identification. Implementing a coding method is necessary to ensure the privacy of

the participating banks and the participants, and to isolate common perspectives that may

form from the interviews (Naidu & Prose, 2018). This enhanced the validity and

reliability of my data analysis. NVivo10® software came in handy as a way to store and

organize my accumulated data. The NVivo10® software is a useful facility in examining

the relationships in the data by isolating common patterns and themes (Lensges et al.,

2016). Upon extrapolating the major themes, I related the themes together with the

conceptual framework of the transformational leadership theory. I generalized the major

themes and perspectives in the interview and thereafter address the research question to

achieve the main purpose of the study (Yin, 2018). My themes were comprised of an

accumulation of (a) interview data, (b) triangulation evidence, (c) evidence from the

literature review, and (d) alignment with the tenets of the conceptual framework. After

successfully coding the words, I categorized and organized them to delineate emerging

themes. Step D entailed summarizing the extracted data and establishing common themes

regarding effective leadership practices in banks in the United States. I accurately

reported the results of this study and provide citations of the participants’ views that

support common themes. I presented the findings that may lead to a better understanding

effective leadership practices might increase employee morale and lower employee

turnover in the banking industry.

Reliability and Validity

The quality of research and its findings are the underpinnings of research design

(Saunders et al., 2015). Research quality involves providing research that is valid and

reliable, which are both pivotal components for evaluating qualitative research. There are

specific measures required to validate research. The concept of research quality involves

standing back from research design and taking a critical, objective view of the reliability

and validity of a component (Morse, 2015). The strategy of methodological triangulation

is an institutionalization method targeting to abbreviate the discrepancies and ambiguities

of research. Methodological triangulation supplements validity and reliability, by

providing a more trustworthy picture of the phenomenon, through the merging of ideas

(Naidu & Prose, 2018).

Reliability

Reliability evaluates the quality in quantitative research (Heale & Twycross,

2015). Reliability refers to consistency and the use of replication to obtain consistent

findings (Saunders et al., 2015). In qualitative studies, a researcher demonstrates

reliability by (a) documenting the process of data collection, analysis, and interpretation;

(b) explaining the strategy used for the study; (c) explaining the selection of participants;

and (d) articulating the roles of the researcher. I ensured reliability by ensuring I

accurately gave a detailed account of the data collection and data interpretation. I

explained the procedure for choosing the population and the research strategies used

throughout the research process. Finally, I used member checking to assure the study’s

dependability.

Validity

Validity describes how accurate research is measured in a qualitative study (Heale

& Twycross, 2015). Validity refers to appropriateness of the measures used to evaluate

the accuracy of the research (Saunders et al., 2015). Guba and Lincoln coined the primary

concepts of validity as: credibility, transferability, and confirmability (Morse, 2015).

Credibility, which is considered as a central concept for methodologies, is regarded as

internal validity by positivist researchers. Credibility in qualitative research becomes

evident whenever the researcher develops works that can be: (a) in the process of

problematizing of the matter, through coherency with the theoretical foundations of the

case; (b) in the process of data collection, where credibility materializes in the careful

data review, in respect to what is being evidenced by participants; and (c) in terms of

interpretation, where credibility refers to the ways in which questions are displayed in the

text, and to the sense of given interpretations (Márcio, Leonel, Carlos, & Rafael, 2018).

Some of the principal strategies of credibility include persistent observation,

methodological triangulation, negative case analysis, peer review, and member checks.

Persistent observation is necessary for producing thick, rich data. Member checks serve

as a critical way to prevent bias and to work with the participants to review the summary

of interpretations and offer feedback (Naidu & Prose, 2018). I used persistent

observation, methodological triangulation and member checking to assure my study’s

validity.

Transferability is equivalent to external validity and refers to the transfer of the

original findings to another context (Morse, 2015). In line with presenting transferable

data, I communicated the limitations of this study to avoid undue generalizations from the

results. Validity is attained through transferability, and integrates triangulation, stepwise

replication, and the use of an inquiry audit (Kihn & Ihantola, 2015). Triangulation refers

to the use of two or more sets of data or methods to answer one question (Morse, 2015). I

provided rich contexts and rich descriptions to enhance transferability of the study. From

the beginning of this research I adhered to guidelines provided by Márcio et al. (2018)

and organized data to include: (a) the numbers of organizations that will participate in the

study; (b) the numbers of participants involved in the study; (c) the methods of data

collection that is used; (d) the number and length of sessions for data collection; and (e)

the details on the procedures and methodological paths taken in the process of analysis.

Confirmability refers to being objective and implementing triangulation and the

audit trail throughout the research process (Kihn & Ihantola, 2015). The findings and data

collected from the study were easily understood to achieve confirmability. I used NVivo,

a useful management tool, to provide a detailed audit trail of all decisions during the

research process (Lensges et al., 2016). A chief benchmark for confirmability is the

researcher’s account on his/ her own beliefs (Márcio et al., 2018). I documented the

choosing of methods and any beliefs that base the making of decisions in research

reports. I promoted the confirmability of the research, to diminish the personal

convictions of the researcher.

Data saturation occurs by asking multiple participants the same questions in the

same manner (Morgan, 2016). I ensured data saturation by interviewing the same

participant until no new data became available, or until no new themes emerged. A

researcher attains data saturation when the data becomes so rich that no further coding is

necessary (Yin, 2018). I sought to affirm the confirmability, credibility, and

transferability of the research findings by attaining data saturation.

Transition and Summary

Section two contains information about the role of the researcher, participants,

research methodology and design, and population sampling. A chief requirement to

complete this study involves the assurance of privacy for participants. Section two

contains information on ethical research in accordance with Walden University’s IRB

protocol. Subsequently, the data collection instruments, techniques, and analysis were

discussed. To complete section two of this study, I discussed the reliability and validity of

the research to ensure requirement standards were met.

Finally, in Section 3, the presentation of findings and application to business and social

change are suggested. I discussed the recommendations for change, which might prove

significant in cultivating leadership practices, increasing employee morale, and reducing

the amount of the failures in the banking industry.

Section 3: Application to Professional Practice and Implications for Change

Introduction

The purpose of this qualitative single case study was to explore strategies bank

industry leaders implement to improve employee morale and mitigate employee turnover.

The specific population included four bank leaders in the United States who have

successfully applied effective leadership to improve morale and mitigate employee

turnover for over five years. My analysis of the research findings indicated that

transformational leadership strategies are pivotal in improving employee morale and

reducing employee turnover.

My findings included three themes for the successful implementation of

improving employee morale and reducing employee turnover by bank leaders: (a) adopt

motivational leadership techniques, (b) apply open and transparent communication skills,

and (c) apply rewards or recognition. Each bank leader participant mentioned

transformational leadership or motivating employees through leadership as crucial when

attempting to improve employee morale and mitigate employee turnover. Participants

validated that having open communication lines increase employee morale and reduce

turnover in the banking industry, while simultaneously building empathy and trust with

employees. For participants, building trust, implementing efficacious reward systems,

and maintaining open lines of communication garners employees who are emotionally

engaged.

In this section, I present my findings and discuss the themes identified. I also

discuss applications to professional practice and implications for social change, deliver

recommendations for action and further research, offer personal reflections, and provide a

conclusion.

Presentation of the Findings

The central research question for this study was: What effective leadership

strategies do business leaders in the banking industry use to improve employee morale

and mitigate employee turnover? I used seven semistructured interviews and open-ended

interview questions (see Appendix B) as the primary collection method for the study,

which after triangulation, produced three themes. The conceptual framework consisted of

the transformational leadership theory (Burns, 1978). The generated themes are relevant

to the transformational leadership conceptual framework.

In this section, I describe how the results confirm, disconfirm, and relates to the

findings of the conceptual framework used for this study. I also review information from

the company’s internal website, which is accessible to the public. PA1 is 46 years old,

with six years working at the organization, and 21 total years of experience as a leader.

PA2 is 37 years old, with seven years working at the organization, and nine total years of

experience as a leader. PA3 is 40 years old, with eight years working at the organization,

and 12 total years of experience as a leader. PA4 is 50 years old, with five years working

at the organization, and six total years of experience as a leader. The four participants had

a total of 48 years of experience as leaders in the banking industry.

As previously noted in the introduction, there were three emerging themes: (a)

adopt motivational leadership techniques, (b) apply open and transparent communication

skills, and (c) apply rewards or recognition. The themes resulted from each participant

consistently providing information to answer the research question in combination with

the conceptual framework, literature review findings, and data triangulation.

Theme 1: Adopting Motivational Leadership Techniques

The inspirational motivation theme incorporates all discussion by each of the four

participants. All participants identified transformational leadership as a key strategy to

improve employee morale. Inspiration motivation, a construct of transformational

leadership, delves into how leaders motivate employees to achieve or exceed a goal.

Transformational leadership in the banking industry involves motivating employees to

the point where a high level of morale is reached and employees are inspired to put forth

their best effort to make the bank successful (Ghosh, 2016). The company’s website

proclaimed that increasing employee retention through motivation and inspiring

employees helps them maximize their staff’s productivity. Transformational leadership

motivates followers to perform exceptionally and to consider the goals of the

organization. According to Diebig et al. (2017), transformational leadership is necessary

to inspire employees beyond a level of mediocrity. Each participant agreed that their

daily activities involved motivating or encouraging an employee and making sure their

daily activities aligned with their life goals.

Inspirational motivation negates inadequate leadership, including a lack of leader

involvement, preparation, and capability (Jena et al., 2018). The inspirational motivation

construct of transformational leadership delves into effectively communicating

expectations and significant undertakings and motivating people to fulfill those

expectations (Ghosh, 2016). According to participants, a transformational leader is

someone who can positively change organizational culture. Participants also described a

transformational leader as someone being able to think outside of the box to motivate

followers to succeed. When transformational leadership is the guiding leadership style for

bank leaders, employees gain a sense of security and motivation to apply their best effort

(Glambek et al., 2018). Team spirit is usually enhanced by implementing inspirational

motivation techniques (Schoen, 2017).

The inspirational motivation theme confirmed the research question, by which I

sought to identify what effective leadership strategies business leaders in the banking

industry should use to improve employee morale and mitigate employee turnover. The

theme also resonates with the findings of Burns, who illustrated that transformational

leaders strive to help others succeed by aligning followers’ personal perceptions and

expectations with those of the organization (Zhang et al., 2017). The constructs of the

transformational leadership theory consist of: (a) idealized influence, (b) inspirational

motivation, (c) intellectual stimulation, and (d) individualized consideration (Bass, 1985).

Each participant incorporated at least one of the constructs in their responses to the

interview questions. Inspirational motivation was the most often acknowledged theme in

the interviews. This theme aligns with the transformational leadership theory, which was

the conceptual framework for this study.

The table in Appendix C provides excerpts from the interviews with the four bank

leaders on transformational leadership or motivating employees through leadership. After

completing all four interviews, I coded the data to ensure the data was fully triangulated

and could answer the research question fully. PA4 proclaimed, “So, leaders who work to

inspire and motivate others, show empathy and relations, are in a better position to

improve employee morale and mitigate employee turnover.” The concept of empathy

incorporates any discussion by the bank leaders focusing on showing compassion and

being relatable. The company website states, “Our team members are our most valuable

resource. We want to be the employer of choice, a place where people feel included,

valued, and supported; everyone is respected; and we work as a team.” PA1 indicated that

“strategic leadership includes employee observation, seeing how employees work with

others and how they engage in different projects and having open discussions with my

employees.” All four participants discussed how strong leaders show empathy to

employees to improve employee morale and mitigate employee turnover in the banking

industry by adopting motivational leadership techniques. The company’s website

proclaimed that motivating employees can sometimes be as simple as offering on the job

training or identifying opportunities for individual employees to improve, then providing

development opportunities.

The individual motivation construct of transformational leadership constitutes a

followers’ level of charisma. Transformational leaders must possess charismatic

characteristics in order to genuinely motivate followers (Carleton et al., 2018). Because

an inspirational motivator conveys a vision that leads followers to perform beyond

normal expectations, followers are helped to exhibit higher standards. Inspirational

motivation spurs followers to exceed their personal and professional goals and to realize

the importance of their responsibilities. Motivational leaders possess a strong sense of

purpose. Purpose and determination ignite the energy that advances followers. PA4 stated

that “motivation and leadership from a leader involves effectively communicating a

transparent vision. The vision must be easy to articulate, simple, engaging, and precise.”

Leaders who practice motivational leadership invest in their followers by encouraging

them and remaining optimistic about the future and their aptitudes (Dyer et al., 2016). In

return, their followers better realize their purpose and better contribute to the

organizational goals. When followers understand their purpose, they become

optimistically invested in their own efforts and abilities.

Theme 2: Open and Transparent Communication Skills

All four bank leaders agreed that open communication lines are pertinent in

increasing employee morale and reducing employee turnover in the banking industry.

Employees who can openly communicate with their leaders are more efficient and

effective in the workplace. Having open communication lines is a transformational

leadership strategy that initiates the transfer of knowledge between the leader and the

employee. The platform for achieving career aspirations by effectively communicating is

crucial in the banking industry. Maintaining open communication lines are the result of

applying transformational leadership skills (Beenen, 2016). PA1 explained, “I would say

communication and feedback and the opportunity to know what employees’ areas of

improvement are, what they have done well and how we can move forward, is

important.” PA3 added that “a lack of communication from leadership is among the most

common issues discovered for improving morale to mitigate employee turnover.” Thus,

bank leaders need to enhance their communication skills, especially during a crisis

(Schoen, 2017). The company’s website indicated that open communication can improve

employee retention, and it is important to invest in opportunities to improve employee

morale. The following factors are ways the company strives to stand out from the rest and

improve employee morale: (a) welcome new hires, (b) offer new challenges, (c) invest in

training, (d) keep the lines of communication open, and (e) fulfill management needs.

Arnold (2017) stated that applying open and transparent communication skills in

the bank industry can help leaders become more effective and know how to better

collaborate with other leaders and subordinates. Directive leadership is defined as

managers monitoring employees and telling them what must be done and how to do it.

Facilitative managers are transparent and open to the feedback of others (Diebig et al.,

2017). If communication is poor, any change the bank may face may be bound by

resistance from subordinates. Collaborating with employees will motivate them to exceed

their goals. In my examination of the banks’ website, I identified the following

statements: “We strive to attract, develop, motivate, retain the best team members, and

collaborate across businesses and functions to serve customers.” All of the participants

emphasized how vital two-way communication is and recognizes this as a way to develop

and motivate their team members. After all participants identified open communication as

a primary leadership strategy, I acquired data triangulation. PA2 proclaimed, “I invest in

my employees by openly communicating. I tend to get out more than I put in.” PA3

stated,

Just to be precise, usually I conduct one-on-ones. When talking one-on-one with

an employee, I try my best to motivate them, actively discuss what projects and

assignments they are working on. It is important to decide what great choice of

words to use and look at the employee interactions and engagement in projects

and activities. How do employees interact with other teammates and cross-

functionally? Telltale signs will tell if employees are satisfied with their job.

Lastly, pay attention to engagement in project and team activities.

To apply open and transparent communication skills, leaders should solicit

regular feedback and maintain an open-door policy to measure their effectiveness

(Donnelly, 2017). Not having open lines of communication can result in

misunderstandings and leaders being unaware of the needs of employees. The company’s

website stated that it is vital to create connections with employees from the start so that

employees are made to feel more comfortable asking questions if they run into obstacles

or need help. Breevaart and Bakker (2018) examined that the need for a transformational

approach to leadership and management and the importance of honest, direct

communication can increase employee morale and help employees grow. Communication

is a vital sign of being a good leader and is fundamental to lasting and long relationships

(Jena et al., 2018). An open-door policy will improve communication amongst employees

(Oppong et al., 2017). The theme of applying open and transparent communication skills

is correlated to the transformational leadership theory because leaders must communicate

with others so that they can effectively create an aligned vision and satisfy the needs of

employees. Communication is the primary link that bonds employees and managers and

is fundamental in positive and enduring relationships (Suphattanaku, 2017). The

company’s website highlighted the need to keep communication lines open, because good

communication yields quality relationships and teamwork, which makes the office a more

pleasant place to work. PA4 stated that “solid communication skills guarantee either buy-

in or disagreements. In either case, I will know how to work with employees and negate

any disagreements.” The table in Appendix D includes excerpts from each participant

related to effectively communicating as a leader.

Theme 3: Apply Recognition or Rewards

The theme of applying recognition and rewards incorporates any discussion by

the bank leaders focusing on providing recognition and rewards, including monetary

compensation. All four participants actively discussed how to recognize employees and

provide rewards that will entice employees to stay and perform. I reached data saturation

when the transcribed interview identified that each leader believed that applying rewards

are a mechanism to improve employee morale and mitigate employee turnover. PA1 and

PA3 described their reward mechanism as fair and flexible. After asking PA1 to elaborate

on this response, I learned that the employees’ attitude and beliefs generally guide the

type of reward. “Some employees enjoy earned time off, while others enjoy being

publicly recognized.” The theme of applying recognition and rewards confirmed the

findings of Aga (2016), stating that contingent rewards involve establishing goals and

agrees on what followers will do to achieve stated objectives. Some employees view

company support as being compensated and rewarded well.

Implementing effective reward mechanisms and creating bountiful growth

opportunities can improve employee morale and mitigate employee turnover. The

company believes it is critical to define the reward criteria clearly and make everyone

eligible. Intrinsic and extrinsic rewards on the job increase hygiene factors. The

transformational leadership theory correlates to the theme of applying rewards or

recognition, because this strategy can influence followers by collaborating on a shared

vision and being vocal about situations that occur while trying to achieve a vision or

company goal (Zhang et al., 2017).

PA4 proclaimed that, “being able to retain your good employees is important in

organizational growth. Making sure that your employees are motivated and want to be

able to do a good job for you is in turn rewarding for the leader.” PA2 stated: “well, I

have been doing things on a quarterly basis, giving out gift cards to employees who have

over performed or do a good job. We have a companywide acknowledgement system so I

can recognize employees in that way as well. I provide flex time, earned time off, and

definitely compensation during the yearly review.” PA3 further explained that

“organizations that actively reward employees are healthy for the entire banking industry,

as the market value of jobs will increase.”

PA1 provides a detailed explanation on rewarding employees. “Over time, I

conduct individual contribution celebrations and give weekly shout-outs, all while

providing empathy to employees. I realize that as good as individual contributions are,

they should also be combined with the team. Some people may be in positions where

their job contributions never land them a shout-out, so try to balance out rewards over

time to ensure they do get proper recognition. A team sometimes contributes to an

individual’s performance, so it is important to set objective standards and incorporate

team celebrations and recognition to build employee morale. The company’s website

proclaimed that it is vital to set objective standards and implements effective processes,

such as employee of the month. The company introduced programs for employees who

excel. I give gift cards, congratulations, tickets to local activities. Also, increases in salary

or bonus are types of recognition programs that I have implemented. Also, be competitive

in salary and give yearly salary raises to keep up with inflation.” Provided in the table in

Appendix E are statements made by the bank leaders regarding recognition and rewards

within the banking industry. The way employees are rewarded in the workplace can be

considered a versatile concept, and can serve as a source of challenge, engagement,

fulfillment, and elevation (Radstaak & Hennes, 2017).

Providing incentives and rewards will allow workers to feel value for their

wisdom (Mottaz, 1985). The company’s website proclaimed that money is not the only

incentive that keeps employees motivated at work. Open employee acknowledgement is a

key goal of this company. When employees are recognized for stellar performance and

productivity, they have increased morale, job satisfaction and involvement in

organizational functions (Afsar et al., 2017). Employers may then experience greater

efficiency and an increase in producing the meat and productivity. Through workplace

rewards and incentives, individual and group, employers and employees both enjoy a

positive and productive work environment (Kingori & Gerrets, 2016). Including intrinsic

and extrinsic rewards can be a model for improving employee morale, provided it’s done

correctly. Radstaak & Hennes (2017) confirmed that having a thorough sense of

appreciation for employees is a motivator. It is imperative for rewards set in place by

management to not undermine interest. The company’s website states that they view

people as a competitive advantage. From this stance, companies should compensate

employees in a way that is competitive in the market.

Applications to Professional Practice

The results of this study could be valuable to current and future bank leaders for

implementing strategies to improve employee morale and mitigate employee turnover in

the banking industry. Bank leaders can augment their banking performance by applying

the findings from this study. The participants of this study demonstrated important

strategies that are necessary to improve the banking culture. The study presented three

critical themes (a) adopt motivational leadership techniques, (b) apply open and

transparent communication skills, and, (c) apply recognition/rewards. All three themes

contribute to the transformational leadership theory. The findings and conclusions can

assist large banks in mitigating the loss of employees and the cost of onboarding new

employees.

In the transformational leadership theory, the organizational environment must

foster positivity, growth, and positively effect organizational performance (Rožman,

2017). Losing talented employees in the banking industry can threaten the future of

commercial banks because of unpredictability in the banking industry (Rezaee & Jafari,

2017). To remedy high turnover rates, bank leaders should adopt and implement effective

leadership strategies to improve employee morale and mitigate employee turnover. The

Bureau of Labor Statistics (2015) provided details that employment in the commercial

banking industry decreased by 2.0% since the year 2015.

In summary, the findings of this study showed how much bank leaders should

work to maintain the organizational climate of the bank, by implementing the three major

themes that were developed: (a) adopt motivational leadership techniques, (b) apply open

and transparent communication skills, and (c) apply recognition/rewards. My literature

review identified why this is such a pivotal topic: to improve employee morale, as well as

mitigate employee turnover in the banking industry. Combined, this study works to

enrich an employees’ enhanced perception of the company’s desirable work environment.

In this sense, job satisfaction is the pleasurable emotional state resulting from the

appraisal of one’s job and job experience (Chung-An et al., 2018). Bank leaders with

transformational leadership attribute might be more likely to lead their banks effectively

thereby mitigating bank failures and sustaining bank growth (Carasco-Saul et al., 2015).

Implications for Social Change

The results of this study could help bank leaders employ strategies to improve

employee morale and mitigate employee turnover. Abedifar et al. (2016) stated that the

banking system is the fulcrum around which any economic market revolves. The overall

profitability of commercial banks is vital to the individuals and communities in the

United States. The lack of knowledge of the most effective leadership strategies can

cause an influx in employee turnover and a decrease in employee morale. The results of

this study can help fill the gap of knowledge required to effectively improve employee

morale and mitigate employee turnover. Large commercial banks in the United States can

better understand and harness the new strategies that emerged from the underlying

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themes of this study. The results may catalyze beneficial social changes for employees,

shareholders, and surrounding communities.

The results of this study can assist banks will analyzing leadership’s response to

major crises and implement leadership strategies during a crisis in the banking industry

(deHann, 2017). The theme of transformational leadership can contribute to social change

by assisting bank leaders motivate and transform employees, which leads to an improved

workforce. Motivating employees can reduce the feelings of job insecurity. The second

theme, communication, can also reduce the feelings of job insecurity and help employees

live well-balanced lives. The third and final theme, recognition and rewards, can

encourage employees to perform exceptionally, and provide earned income so that

employees can provide for their families. Bank shareholders and local communities will

thrive when people have stable income. Employees who receive transformational

leadership from leaders are more stable and happier employees; stable and happy

employees can positively contribute to local communities (Shanafelt & Noseworthy,

2017). Leaders might be able to leverage my study results for a greater understanding of

effective leadership strategies for motivating and retaining employees who would be able

to contribute to social change.

Recommendations for Action

The purpose of this qualitative single case study was to explore strategies bank

industry leaders implemented to improve employee morale and mitigate employee

turnover. The findings of this study indicate actions that bank leaders can take to expand

their strategies to improve employee morale and mitigate employee turnover. Bank

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leaders need to understand three critical issues that can increase their influence among

employees: (a) adopting motivational leadership techniques, (b) apply open and

transparent communication skills, and (c) apply recognition/rewards.

First, bank leaders should adopt the transformational leadership characteristics to

motivate, inspire, and retain talented employees. Transformational leadership grants a

transparent view of the company vision integrated with one’s personal goals.

Transformational leadership encourages a sense of empathy for bank leaders and

provides a sense of security for skilled employees. Transformational leadership skills can

help leaders effectively articulate and motivate followers to achieve their vision and

energize their goals, which is a recommended action for leaders (Oppong et al., 2017).

Second, two-way communication will increase the likelihood of retaining employees, as

employees and leaders will both communicate about what each party is doing well or

should improve on. The leadership team should implement training and development that

will improve personal development, tools to retain and motivate employees, and possess

a motivating demeanor and attitude. Open lines of communication can generate trust

between leaders and employees. When employees trust their leaders, employee morale

and engagement advances. Investing in technological advances and innovation is

recommended to retain employees and remain profitable in the banking industry. Third,

bank leaders should implement competitive salaries and both tangible and intangible

rewards. Because of the growth and competition of other banks, long term reward

systems should be established to retain employees and constantly evolve as the needs and

desires of employees evolve. Leaders should display organizational support by allowing

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employees to be flexible with their work schedules and relatable when unknown events

occur. I intend to publish this study and share the findings will banks and bank leaders in

hopes of improving employee morale and mitigate employee turnover in the industry.

Recommendations for Further Research

In section 1, I listed two limitations: the inability to generalize the study findings

and bias. The study focuses only on bank leaders in the United States region. This

limitation exists in my study is because of the geographic location selected. In other

countries, rules and regulations could differ, and interviews with participants could yield

different results. The population for the study consisted of four cases in the United States.

To generalize the findings, future researchers can research a different country and

interview qualified participants in that country. Researchers could also interview more

participants, which would produce a larger data set for analysis.

Second, there may be biases in the interview participants’ answers. Bias occurs

when the researcher's mental and other discomfort could pose a threat to the truth value

of data obtained and information obtained from data analyses (Klamer, Bakker, & Gruis,

2017). Throughout each interview and each stage of the data collection process, I

remained fair and equitable. All opinions that were formed are based on facts gathered in

the interview and confirmed in member checking sessions. I gathered my interpretation

from the data analysis and themes developed during the research process. I do not believe

bias became a limitation in this study. Third, future researchers can use quantitative

and/or mixed research methods to conduct research on strategies bank leaders employ to

mitigate employee turnover and increase employee morale. Quantitative analysis requires

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the development of a hypothesis to test correlations between business leaders and the

banks’ organizational climate.

Other researchers may benefit from converting the limitations of generalizability

and biases into advantages for more research. The study examined strategies that bank

leaders should employ to improve employee morale and mitigate employee turnover. The

results of the study showed the importance of transformational leadership,

communication, and recognition and rewards in the banking industry.

Reflections

In this study, I explored the strategies that bank leaders implement to improve

employee morale and mitigate employee turnover. I received the opportunity to conduct

extensive research to solve the business problem and answer the research question.

During the research process, I gained meaningful skills and competences from

cooperating with senior bank leaders. These skills range from openly communicating,

possessing empathy for employees, and rewarding excellent work ethics.

I am grateful for the positive interactions with business leaders. It was difficult to

recruit willing participants in a prompt manner because of various issues. Some of these

issues varied from complex work schedules to unforeseen conflicts. A valuable lesson I

learned during the recruiting process was to ensure I had more than enough participants

willing to participate, in case a canceled interview occurred. I had one participant cancel,

but for the four participants who consented to participate, I developed professional

relationships with each. Developing good relationships was essential, because I knew I

would need to interact with each participant during the interview process and member

104

checking sessions. I ensured each participant multiple times of their rights and the

confidentiality of their identities. Ensuring that I reiterated their right to privacy by

implementing an interview protocol made each participant worry free. I did not expect

transcribing the interviews to be so monotonous and tedious. Transcribing each interview

took a long time to complete, but I learned a great deal throughout the process.

This doctoral study enthused me from the commencement to the end. Completing

the research and interacting with participants inspired me and further reinforced my

determination to be an effective leader. The knowledge that I have acquired from the

emerging themes will contribute to the foundation of being an inspirational and

exhilarating bank leader.

Conclusion

Mitigating employee turnover and improving employee morale requires effective

leadership strategies to yield beneficial results. When banks fail to retain qualified

employees, they can experience loss of profits and a decrease in organizational climate.

Bank leaders must actively implement and refine strategies to retain employees and

ensure employee morale continues to intensify. Particularly, bank leaders should embrace

or maintain transformational leadership characteristics. Transformational leaders should

possess the main objectives of coaching, motivating, and providing a vivacious working

environment for employees (Perrott, 2015). Open communication and fostering climates

where good performance is rewarded will improve employee morale and mitigate

employee turnover.

Assignement introduction Employee Morale and Mitigating Turnover.pdf

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