The Effect of Leadership Style on Employee Performance In the Case of Awash Bank East Addis Ababa Region
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Date
2023-06
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Addis Ababa University
Abstract
The purpose of the study was to determine how Awash Bank S.C.'s leadership styles affected staff performance. The major goals were to examine leadership methods (transformational, transactional, laissez-faire, authoritative, and democratic) and their impact on worker performance. The method of choosing research subjects was simply random sampling. 126 useful responses to the 135 distributed structured questions were gathered. The practices of effective leadership and their relationship to worker performance were assessed using a multifactor leadership questionnaire (MLQ form 5X). Using SPSS.23, descriptive statistics and scale analysis were utilized to analyze the data. The association between leadership styles and employee performance was predicted using regression, correlation analysis and the five leadership styles have 26.4% of influencing employee performance. The research demonstrates that transformational leadership is the most frequently used type of leadership, followed by democratic, laissez-faire, and transactional leadership, in that order. Employee performance was found to be positively connected with transformational, transactional, democratic, and laissez-faire leadership styles, but adversely correlated with authoritative leadership styles. The findings suggest that Awash Bank leaders should adopt transformational and transactional leadership styles, but not authoritative onesThe purpose of the study was to determine how Awash Bank S.C.'s leadership styles affected staff performance. The major goals were to examine leadership methods (transformational, transactional, laissez-faire, authoritative, and democratic) and their impact on worker performance. The method of choosing research subjects was simply random sampling. 126 useful responses to the 135 distributed structured questions were gathered. The practices of effective leadership and their relationship to worker performance were assessed using a multifactor leadership questionnaire (MLQ form 5X). Using SPSS.23, descriptive statistics and scale analysis were utilized to analyze the data. The association between leadership styles and employee performance was predicted using regression, correlation analysis and the five leadership styles have 26.4% of influencing employee performance. The research demonstrates that transformational leadership is the most frequently used type of leadership, followed by democratic, laissez-faire, and transactional leadership, in that order. Employee performance was found to be positively connected with transformational, transactional, democratic, and laissez-faire leadership styles, but adversely correlated with authoritative leadership styles. The findings suggest that Awash Bank leaders should adopt transformational and transactional leadership styles, but not authoritative ones