The Effect of leadership styles on employee performance: the case of Commercial Bank of Ethiopia
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Date
2024-10
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Addis Ababa University
Abstract
This study investigated the impact of leadership styles on employee performance in the case of the Commercial Bank of Ethiopia, Addis Ababa. The study employed a quantitative approach with explanatory and descriptive research designs, the study focused on transformational, transactional, and laissez-faire leadership styles. Data was collected from 297 employees from 55 branches of the CBE in the Merkato district using structured surveys, analyzed using SPSS 26 for correlation and regression analyses. Findings highlight transformational and transactional leadership as significant predictors of enhanced employee performance, this as if transformational leadership has a dominant effect compared to that of transactional leadership style. Whereas, laissez-faire leadership showed no significant effect. Recommendations include prioritizing transformational and transactional leadership development and integrating these competencies into leadership selection and evaluation processes. This research emphasized the importance of effective leadership styles in fostering employee productivity and organizational success.
Keywords: Leadership styles, employee performance, transformational leadership, Transactional leadership, Laissez-faire leadership, Performance and Leadership.