“Effects of leadership style on employee‟s performance in the case of Commercial Bank of Ethiopia Jimma, Disrict

Abstract

This study was intended to explain the effect of leadership style on employee’s performance in commercial bank of Ethiopia Jimma district. More specifically, the study was delimited to collect data from the selected branches of the bank. The hypotheses were developed to test the relationship between the dependent variables of leadership style and employees performance. The researcher used explanatory and descriptive research design. The researcher collected primary data from 216 samples respondents/employees of selected CBE branches through structured questionnaire. The researcher used multi stage sampling method to collect a data from available and willing predetermined sample respondents. After that Descriptive, correlation and regression analysis were used to analyze the collected data. Descriptive tools such as frequency, percentages, mean and standard deviation were employed to present results. Statistical analysis tool such as correlation coefficients was worked out and used to explore the relationships between variables. Inferential analysis; simple and multiple linear regressions were performed to explain individual and joint effects of independent variables on dependent variable; employees performance. The research findings indicate that there is a significant positive relationship between transformational, democratic charismatic laissez faire and transactional leadership style; and employee’s performance but there is insignificant negative relation between authoritative leadership and employee’s performance. The regressions results indicated that leadership styles such as transformational, democratic, transactional and charismatic leadership styles, jointly and independently can predict the employee’s performance level. However, the study found that, those dependent variables were not equally significant on a dependent variable. At the end, the study concluded that there is different type of leadership styles are exhibited in commercial bank of Ethiopia Jimma district, among that transformational and democratic leadership styles are recommended leadership styles for better employee’s performance. Thus the study recommends the bank to give more emphasis on those transformational and democratic leadership styles.