The Role of Leadership on Employee Performance: In the Case of Wegagen Bank
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Date
2022-06
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Addis Ababa University
Abstract
Leadership is one of the key elements associated with the success and failure of any organization Leadership style is the manner in which people are directed, motivated by a leader to achieve organizational goals. This study examines the impact of leadership styles on the job performance. The focus was on three major leadership styles -transformational, transactional, and Laissez Fair. This study has provided insights about the leadership styles; transformational, transactional, and Laissez Fair have a positive impact on the job performance, however, the Laissez Fair leaderships have negative impact on the organizational performance, as it does not provide opportunities and freedom to employees. In this study, both primary and secondary research has been conducted. The primary research has been done using the quantitative approach with the help of survey instrument, based on a survey questionnaire. The secondary research has been done through the review of previously established literature for achieving the research objectives. The findings suggested that Laissez Fair leadership style have negative relationship with organizational performance. On the other hand, transformational, transactional leadership styles had a positive relationship with the organizational performance. It has been recommended that organizations use the leadership style that enhances the capabilities and abilities of the people.
Key Words: Job performance, ; transformational, transactional, Laissez Fair