The Effects of Organizational Culture, Emotional Intelligence, Organizational Trust and Leadership Effectiveness on the Satisfaction of Employees and Customers

Abstract

A random sample of 170 workers taken from various Regional and Zonal Offices in
Amhara Region panicipaled in this study. Data were collected using different scales 10
assess the predictive powers of organizational cullure. organizationallrust, leadership
effectiveness, emotional intelligence. employee salisjaclion and quality service to
customer satisfaction. Correlational and regression analyses revealed that all lhe
relationships were significant and in the expected direclions. The regression analysis
evidenced that the only significant predicator variable 10 customer satisfaction was
quality of service rendered by lhe organizations 10 meel lhe demands of the customers,
which in tum was influenced by employee satisfactiofL Path analysis revealed thai
employee satisfaction and quality of service together explained 44% of the variance in
custo~r satisfaction. It was found thal leadership effectiveness. emotional intelligence.
organizational cul(ure. and organizational trust accounted for 64% of Ihe variance in
employee salis faction. Leadership effectiveness per se was influenced by both emotional
intelligence and organizational culture (75% of the variance). In general organizational
culture and emotional intelligence were found to be the most significant predictor factors
that contributed indirectly to the satisfaction of customers. This implies rhal
organizations thal have conducive working culture and leaders who have high level of
emotional intelligence, and where workers rend to trust their heads and colleagues work
towards meeting lhe needs of their customers. As developmemal efforts are by and large
contingent on the quality of governance, endeavors should be pur forth to train leaders
who are emotionally intelligent, if not more, as well as cognitively competent.