Abstract:
The purpose of this study was to explore the effect of leadership style on employees’ performance
in the case of Commercial Bank of Ethiopia. The population for the study was 235 employees of
Head Office of Commercial Bank of Ethiopia. This study employed explanatory and descriptive
research design. The researcher used census which is the procedure of selecting all employees
hence no sampling method is used on this research. The primary data for this study was
collected through questionnaires and interview methods. Data analysis was done by using
statistical package for social sciences (SPSS version 20). The study used descriptive and
inferential statistics to analyze the data. The study conducted by modeling the relationship
between employee performance and the following independent factors: autocratic leadership
style, democratic leadership style, and laissez faire leadership style. The study found out that
autocratic leadership style, democratic leadership style and laissez -faire leadership styles are
statistically significant with employee performance. The organization has practiced autocratic
leadership style, democratic leadership style and laissez -faire leadership style in different
degree. Therefore, there was mismatch between the styles of leadership applying by the
managers on all the employees in the organization The study came out with the following
recommendation for rescuing the problem, in order to enhance the performance of the
organization employees, the management of Commercial Bank of Ethiopia at different level
should execute more of democratic leadership style in its daily operation and avoid using or
reduce practicing autocratic leadership style and laissez fair leadership style.
