Effect of Leadership Style on Employee Performance: The Case of Commercial Bank of Ethiopia

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.