Abstract:
The study is designed to Evaluate “Effects of Leadership Styles on Employees Performance;
Comparative Study on Two Banks In Case of Ambo Town”. The objectives of the study are to
identify types of leadership styles are there in Commercial Bank of Ethiopia and Awash
Banks in Ambo town, To examine the effects of leadership styles on employees’ performance,
and To examine extent of Leadership style influence on Employees Performance in
Commercial Bank of Ethiopia and Awash Bank in Ambo town. The researcher used
descriptive and explanatory research design. Descriptive research design is used to describe
effects of Leadership Style on Employees Performance of CBE and Awash Banks by using
tables, pie-charts and graphs. The researcher also used Explanatory research design to
examine effects of Leadership Style on Employees Performance of CBE and Awash Banks by
using Multiple Linear Regression model. The target population of the study was permanent
employees of CBE and Awash Banks in Ambo town with the sample size of 162 employees.
The method of data gathering that researcher used was primary sources (questionnaire for
employees, interview for managers) and secondary sources such as written materials which
were published and unpublished as well as the reports of the two Banks. The finding of the
research shows that there is positive relationship among most of those Leadership styles
practicing in those Banks and employees performance except P-value is insignificant for
Transformational Leadership style which shows that there is no direct relationship between
Transformational Leadership styles and Employees’ performance in case of Awash Banks in
Ambo town and also there is no direct relationship between Autocratic Leadership style &
Transformational Leadership styles and Employees’ performance in case of CBE in Ambo
town. The model result like the values of, R-square and Adjusted R-square show that there is
positive relationship between Leadership Styles and employees Performance. The other
model result values such as ANOVA table and coefficient table shows significant relationship
that the model fits well.
