THE EFFECT OF LEADERSHIP STYLE ON EMPLOYEE PERFORMANCE IN THE CASE OF ABAY BANK S.C SOUTH WEST DISTRICT SELLECTED BRANCHES, ETHIOPIA

Abstract

Leadership is the process of influencing others to understand and agree about what needs to be done and how to do it, and the process of facilitating individual and collective efforts to accomplish shared objectives. This study was aimed to analyzed effect of leadership style on employee performance in Abay bank south west selected branches. Both qualitative and quantities research approach were used, In order to meet the aim of the paper, explanatory and descriptive research design was used. Questionnaire is prepared as closed-ended questions and five-point Likert-type scal, sampling technique was both purposive and randomly selected. A data was analyzed by using SPSS. Version25 the result indicates that there is a positive and significant impact of leadership style on employee performance in Abay bank south west selected branches presents a summary of the model in which the item of interest is the adjusted R2 statistics, which is .555. This suggests leadership styles accounts for 55.5% of the variation in employees’ performance. In the model summary R2 amounted to 0.569; this indicates that variation order can be accounted for 56.9% of the determinates (employment performance) and the R square (coefficient of determination) where the rest 43.1% of variation may be explained unknown variable. by either by determinates Democratic leadership style (DMLS) significantly predict employees’ performance standardized B = .180, t=3.239 (p < 0.05), The coefficients results show that transformational leadership positively and more dominant predictors to employee performance, the study conclude that there is positively significant effect leadership style such as bureaucratic leadership style transformational leadership Transactional Leadership, Autocratic leadership style ,Democratic leadership style on employee performance.