The Effect of Leadership on Employee Performance; In the case of Addis pharmaceutical Factory (APF)

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Addis Ababa University


The effect of leadership on employee performance was examined in this descriptive study. The purpose of this quantitative study is to investigate the effect of Leadership style on employee performance. The research approach applied for this study was quantitative type of research where descriptive analyses have been deployed. The target populations of this study were employees of APF working in areas of Addis Ababa at branch level, which includes 3 branches. From 150 total populations 3 branches of APF from that 108 employees were selected as the sample of the study. Simple random sampling technique was used to select the branches and individual respondents. The standardized questionnaires of measuring leadership styles were adopted the multifactor leadership questionnaire (MLQ) and employee performance were adapted from previous standard questionnaire. ANOVA Analysis was used to compare the leadership styles. Correlation and regression were used to analyze the relationship and its impact between transformational and transactional leadership on employees’ performance. The regression results showed that the transactional and transformational leadership have significant effect on employees’ performance. Transactional leadership style was found to be positively correlated with both measures of employee performance and it was found to be the dominant style of leadership in the organization



transformational leadership, transactional leadership, employee performance