The Effect of Leadership Style on Employee Performance in the Case of Dashen Bank

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Addis Ababa University


The purpose of this study was to explore the effect of leadership styles on employee performance in the case of Dashen Bank. The aim of this study is to investigate the relationship between leadership style and employee performance in the organization. The study was conducted at Dashen Bank, one of the largest private banks in Ethiopia. The study adopts an explanatory research design. Mixed research approach was used. Out of a total of 1200 target population, a sample size of 125 was taken using the J.Carvalho sample size determination model and random sampling technique was used for collecting information from the organization. The effect of leadership style on employee performance is analyzed quantitatively with a structured questionnaire that was directed to the Dashen Bank Head Office. Data collection instruments were closed ended. The data was analyzed in both descriptive statistics and inferential statistics were figured using Statistical Package for social sciences (SPSS) version 25. The result of the study confirmed that there was statistically significant positive relationship between transformational, autocratic, democratic leadership style and employee performance However, there is no statistically significant relationship between laissez-faire and transactional leadership styles with employee performance. A further research was also recommended on other banks collectively and to find other factors rather than leadership styles that determined employee performance not included in this study