The Effect of Leadership Styles on Employees Performance in the Case of Awash Bank
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Date
2024-05-18
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A.A.U
Abstract
This study examined the effect of leadership styles (transactional, laissez-faire, and autocratic) on employee performance at Awash Bank in Ethiopia. A conclusive research design, incorporating both descriptive and explanatory approaches, was employed. The researchers targeted 17,000 employees from 15 branches, with a sample of 171 employees selected through stratified random sampling. Primary data was collected via a questionnaire and analyzed using quantitative techniques. Demographic profile: Balanced gender, young age, majority single, highly educated, and experienced employees. Reliability and descriptive: High internal consistency (Cronbach's α > 0.9); leadership styles and performance had relatively high mean scores. Correlation: Leadership styles had very strong positive correlations with employee performance (r = 0.953 to 0.970, p < 0.01). Regression: The model explained 95% of the variance; leadership styles had positive and significant effects. Hypothesis testing: All hypotheses (H1, H2, and H3) were supported, confirming positive relationships. The findings highlight the critical role of leadership in shaping employee performance in the banking sector. The study provides robust evidence that transactional, laissez-faire, and autocratic leadership styles significantly influence employee outcomes at Awash Bank. Future research could explore longitudinal effects, comparative analyses, qualitative insights, and the impact of moderating factors.