EFFECT OF LEADERSHIP STYLE ON EMPLOYEE PERFORMANCE IN INCASE OF ADDIS INTERNATIONAL BANK

Abstract

The study aimed at assessing the effect of leadership styles on employees’ performance at Bank of Addis international, Ethiopia. The main objective of this study was to investigate the effect of different leadership styles (transformational, transactional, and laissez-faire leadership styles) on employees’ performance of employees. A cross section descriptive survey research strategy was adopted in which 80 usable structured questionnaires were collected. The standardized questionnaires of effect of leadership style on employees ‘performance were adapted from previous standard questionnaire Content analysis was used to analyses qualitative data while the quantitative data was analyzed using descriptive statistics using SPSS.20 software Regression and Correlation analysis was used to show the relationships among the variables. The data was presented through, means, and standard deviation Descriptive and inferential statistics along with Pearson correlation and linear regression were used to analyze their relation and its effect between leadership style and employees' performance as predictor. The findings show that the leadership style in place by leaders of Addis international bank tends to be a mix of both the three major leadership styles the leadership style has significant contribution for employees’ performance. In Addis international Bank tend to be more of transformational leadership styles though there is a sentiment of a laissez-faire and transactional at times. Moreover, the study has also revealed that there is a mix of other leadership styles observed. From the results, transformational leadership could have greater effects on employee productivity and quality of performance. It is recommended therefore that Transformational leadership is the most effective leadership styles.