The Effect Of Leadership Style On Employee Performance The Case Of United Insurance Share Company

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Addis Ababa University


The purpose of the study was to investigate effects of leadership styles practiced in insurance industry in Ethiopia, specifically the united insurance share company on employee performance. The study adopted a descriptive and explanatory research design with sample size of 150 respondents in which 128 useable data were collected from the distributed 150 questionnaires to respondents and analyzed to arrive at findings, conclusions, and recommendations. Primary data collection, convenience and random sampling methods were used, data collection instruments were closed ended/structured questionnaires and lastly the data collected were analyzed quantitatively and presented in the form of tables, frequencies, means and standard deviations using Statistical Package for Social Science software (SPSS). Data were presented in tables and analyzed using mean scores, standard deviation, frequencies and percentages. In the study, even though all the leadership styles were hypothetically accepted and positively related to employee performance from the analysis of data, democratic style was the most dominant and followed by transformational and transactional styles respectively in being exercised in this company. Thus, the United Insurance Share Company was recommended to use democratic, transformational, and transactional leadership styles to enhance employee performance so as to enable quality service delivery. A further research was also recommended on other insurance companies collectively and to find other factors rather than styles that determined employee performance not included in this study.



Leadership styles, Democratic leadership style, Transformational leadership style