Abstract:
The main objective of this study was to investigate the effect of leadership styles on employees’
performance of Gibe Didesa Farmers’ Cooperative Union. The Democratic, Autocratic, Laissez faire,
Transformational, and Transactional leadership styles were the dimensions of leadership styles practices
that were investigated in this study. Work efficiency served as the performance metric for the Union
employees. The study employed a quantitative research approach to examine the effects of leadership
styles practices and employees’ performance of GDFCU. Descriptive and explanatory research design
employed for the study. Probability sampling technique particularly cluster and census sampling method
were used to enables the researcher to use his discretion in selected samples all the target population.
Using 34 questionnaires items, the primary source of data was collected from 66 employees. A
questionnaire with a 5-point Likert scale was used together the data, and SPSS Version 25 was used to
analyze the results. The analysis's findings led to the conclusion that there were transformational
leadership styles, transactional leadership styles, democratic leadership styles play strong, positive, and
significant correlation between the leadership styles practices and the general employee’s performance of
Gibe Didesa Farmers' Cooperative Union. Whereas, leadership styles that are autocratic and laissez faire leadership style has significant and negative effect on overall employee’s performance of Gibe
Didesa Farmers’ Cooperative Union. Hence, 82.2% the variability of employee’s performance in this
study explained by leadership styles practices. Based on the findings, different leadership styles had
different effect on employee’s performance. Since, the researcher has recommend to give serious
attention on each democratic leadership style items, your manager seeks differing perspectives when
solving problems and Gibe Didesa Farmers’ Cooperative Union to give critical attention on each
transformational leadership style items, My manager is always tries to enhance my capability to
accomplish the best. As well as the researcher has recommend Gibe Didesa Farmers’ Cooperative Union
to avoid laissez-faire leadership styles and autocratic leadership style so as to improve employee’s
performance.
