The Effects of Leadership Style on Organizational Performance in Case of Commercial Bank of Ethiopia
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Date
2021-06
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Addis Ababa University
Abstract
A process in which one or more individuals influence a group of individual to move in a definite direction is called Leadership. Certain types of leadership become important in any organization working towards a stated goal, to achieve organizational objective which measure in terms of performance. This study was designed to explain the commercial bank of Ethiopia leadership style, which practised by management team, effects on performance of organization. The descriptive and explanatory research design with quantitative approach was used. Two category of respondent were participated; operational officers and management team. 302 operational staff and 42 management team member were filled the five scale likert questionnaire in stratified with sample random sampling technique. This is 89.12% of planned sample in the study, the data primarily collected from respondents through adapting standard questionnaire which is previously used and analyzed in SPSS version 24. The result displays that democratic leadership is the most practiced leadership style than autocrat and laissez-faire leadership style in commercial bank of Ethiopia. The regression analysis showed that leadership style has a higher relationship with organizational performance, which shows 65.1% organizational performance is predicted and explained by the three type of leadership style. The researcher recommended that if the leadership style takes important influence on organizational performance, CBE head and district supervisor have to deliver leadership training to the CBE management team to enhance a higher level of performance in the organizational
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Keywords
Autocratic Leadership, Democratic Leadership, Laissez-faire leadership