EFFECTS OF LEADERSHIP STYLES ON EMPLOYEE’S JOB PERFORMANCE IN AWASH BANK IN ADDIS ABABA

Abstract

The general objective of the study was to investigate the effects of to determine the effect of leadership styles on the employee’s job performance the case of Awash Bank in Addis Ababa. The study was considered the three leadership styles namely transactional leadership, transformational leadership and laissez-faire leadership as the independent variables and employee job performance as the dependent variable. The study used quantitative research approach and explanatory research design. The representative 293 respondent employees from the selected branches were selected by using non probability sampling approach specifically convenient sampling technique. Quantitative data gathered via questionnaire was edited, coded and entered into statistical software SPSS and analyzed by both descriptive and inferential statistics. The finding of the study showed that, all the selected three leadership styles namely transactional leadership, transformational leadership and laissez-faire leadership have a significant and positive impact on employee performance which implies leadership styles has indirect impact on employee job performance. Compared to other relationships considered in this study, transformational leadership is ranked third in its magnitude of correlation, transactional leadership is ranked first and laissez-fair leadership is ranked second in its magnitude of correlation. Finally, the study forwards the recommendations for the management regarding using certain leadership styles in order to increase employee performance and meeting the leadership abilities, behaviors and knowledge necessary to satisfy organizational needs and forward suggestion for other researchers.