Effects Of Leadership Styles On Employees Performance; Comparative Study On Two Banks In Case Of Ambo Town

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for employees, interview for managers) and secondary sources such as written materials which were published and unpublished as well as the reports of the two Banks.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.