The Effect of Leadership Style on Employees’ Performance The Case of Elfora Agro-Industry PLC Addis Ababa
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Date
2022-06
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Addis Ababa University
Abstract
One of the most important parts of any organization's success is its effective leadership. Good leadership style can empower employees to achieve excellence. The goal of this research was to look at the impact of leadership style on employee performance in the context of Elfora Agro plc. The study has used explanatory research design. The study also used quantitative approaches in order to organize the data needed to the research. Primary data collection was applied and questioner is used as a means of gathering the data from a sample of 118 employees selected randomly from 1108 employees at Elfora Agro-Industry PLC. Both descriptive and inferential statistics have been used to describe existing situation and test hypotheses respectively. The result of the study indicated that transformational transactional, and democratic leadership styles have significant and positive effect on employee performance. The effect of autocratic leadership is found to be significant and negative. Therefore, all the hypotheses are accepted. The descriptive result also showed more than average values in all the variables. To improve the performance of employee’s it is recommended that managers at the company need to understand the connection between leadership styles and employee’s performance, so that they choose appropriate leadership style that improver performance. It is also recommended that companies need to reduce autocratic leadership style since the result showed a negative association between this type of leadership style and employee’s performance
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leadership, leadership style, employee performance