Abstract:
The purpose of this study is to examine the impact of leadership style on employee loyalty with mediating effect of employee engagement. In addition to that, this study intends to contribute to filling the literature gap by looking into the relation between leadership style, employee loyalty and mediating role of employee engagement. Although the associations between leadership style and employee loyalty are well established in western literature, very few studies have examined the mediating role of employee engagement with above two variables. When it comes to Sri Lankan setting, there were not many research findings. Hence this was quantitative and crosssectional research study. Primary data were collected through a standard questionnaire distributed via Google form. The collected data were analyzed with the support of the SPSS employing correlation analysis, regression, and descriptive statistics. Simple regression analysis and correlation was used to test the study hypotheses. Analyzed results showed a positive impact of leadership style on employee loyalty and mediating role of employee engagement. The independent variable is leadership style, dependent variable is employee loyalty and mediating variable is employee engagement. Further, primary data was collected from nursing cadre of selected private hospitals from Colombo district. The study results clearly underlined or raise the need for private hospitals to look at their nursing cadre’s loyalty as well as engagement and leadership style with a more serious and holistic approach.