The Effect of Leadership Style on Employees Performance: The Cases of Commercial Bank of Ethiopia, Awash International Bank and Cooperative Bank of Oromiya at Legetafo Town
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Date
2021-06
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A.A.U
Abstract
This research has been done on the effect of leadership style on employee performance in three banks namely, Commercial Bank of Ethiopia (Legetafo, Harbuguba and Daledumbel branches) Awash International Bank (Legetafo and Daledumbel branches) and Cooperative Bank of Oromiya (Legetafo and Daledumbel branches). The researcher used questioners as a method of data collection. From these banks a total of 126 respondents were planed and out of the total 120(95%) respondents were responded. The research questions were to know the effect of transformational, transactional and laissez-faire leadership style on employee performance, to identify how does transformational leadership affect employee performance, to indicated how does transactional leadership style affect employee performance in mentioned banks and to indicate what extent the impact of a laissez-faire leadership style have on study area. In answering the above questions, the objective of the study identified the effect of transformational, transactional and laissez-faire leadership style on employee performance, described how transactional leadership affects employee performance, mentioned how transformational leadership style affect employee performance and determined the impact of a laissez-faire management style on employee performance. Based upon the collected data, both qualitative and quantitative methods were use in analyzing processes Accordingly, the following the result of the study revealed (discovered) that transformational leadership style and transactional leadership style have positive relationship with employee performance in all the studied banks In the case of laissez-faire leadership style both Commercial bank of Ethiopia and Awash bank of the study area has negative leadership style on employees performance while has no relation on employee performance in Cooperative Bank of Oromia. From the result of the study the conclusion is driven that both transformational and transactional leadership style were encouraged for good employees’ performance while laissez-faire leadership style discouraged in the study area. According to the result of the study and driven conclusion this research recommended that both transformational and transactional leadership style should be scaled up by giving on-job and off-job training in order to improve the leadership style. but laissez-faire leadership style must be avoided from all banks by discouraging its activities.
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Transformational leadership style, transactional leadership style, laissez-faire leadership style