THE EFFECT OF LEADERSHIP STYLE ON EMPLOYEE PERFORMANCE IN THE CASE OF AWASH BANK S.C HEADQUARTERS

Abstract

Effective leadership is crucial for enhancing employee performance in organizations. This study investigates the impact of various leadership styles on employee performance at Awash Bank S.C The primary objective of the study was to analyze how different leadership approachesspecifically Participative, transformational, transactional, and laissez-faire, servant, and process leadership affect employee productivity and engagement. To achieve this, this researcher employed a quantitative research design using a convenience sampling from the 622 of study population distributing a total of243 questionnaires to employees of different departments in Awash Bank headquarters located in Addis Ababa Mexico. Out of these, 235 completed questionnaires were returned, yielding a high response rate of 96.7%.The analysis utilize both descriptive and infernal statistical to evaluate the relationship between leadership style and employee performance. The findings reveal that transformational leadership had the most significant positive impact on employee performance, followed closely by participative and transactional leadership style. This study underscores the importance of adopting leadership practices to enhance organizational effectiveness and employee satisfaction. Also explores the organizational culture of the company and how important leadership is included. By identifying the leadership style that most positively affect performance, this research provides valuable insights for management at Awash Bank S.C and contributed to the boarder literature on leadership in the banking sector.