Effects of leadership styles on employees’ performance: the case of Berhan Bank S.C.
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Date
2025-09
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Addis Ababa University
Abstract
This study examines the effects of leadership styles on employee performance in Berhan Bank S.C Addis Ababa two city branches and Head office departments. The study followed explanatory type of research design and descriptive survey method of quantitative research approach used. Simple random sampling technique was used in order to select the samples from the total population, 50 samples were selected and questionnaires were distributed. Both descriptive and inferential analysis was conducted. The regression analysis shows a strong relationship between leadership styles and employee performance, explaining about 63.3% of the variance (R² = 0.633). Transactional leadership is the most influential (Beta = 0.512, p < 0.001), significantly improving employee performance. Transformational leadership also positively affects performance (Beta = 0.263, p < 0.028). In contrast, laissez-faire leadership insignificant negative impacts on performance (Beta = -0.152, p = 0.165). The bank should prioritize the implementation of transformational leadership practices to enhance employee performance and motivation
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Keywords
Leadership Styles, Transformational Leadership, Transactional Leadership, Laissez-Faire Leadership, Employee Performance, Berihan Bank