Effect of leadership style on employee performance: In the case of Pharmaceutical fund and supply agency south western Jimma cluster Ethiopia

Abstract

The main purpose of this study is to examine the effect of Leadership styles on employee performance. The study design for this study was both descriptive and explanatory. Depending on the nature of the research problem and the research perspective, researcher guided by mixed research design that is qualitative and quantitative approaches. By using proportional allocation, the sample sizes for different strata are 43, 38 and 29 respectively which is in proportion to the sizes of the strata viz., Jimma 59 : Neqemte 53 : Gambella 39. The study data were collected from both primary and secondary data sources. To collect the primary data the study used questionnaire as instrument of data collection. The data obtained through questionnaire first edited for their completeness, categorized, registered. Based on this the data were analyzed using descriptive and inferential statistical analysis techniques. The study used SPSS software package in the entire analysis part. The results from the regression model summary and analysis of variance above indicate that autocrat, laissez-faire, transformational, transactional and democratic leadership could slightly contribute towards the R2 value, which is a statistical measure of how close the data are to the fitted regression line Based on the R2 value of 0.795, these five variables could explain 79.5 % variation in the employee performance. The slop of autocrat, laissez-faire, transformational, transactional and democratic leadership which are -0.058, -0.051, .267, .367 and .335 means that employee performance changes (increases or decreases) by-0.058, -0.051, .267, .367 and .335 when autocrat, laissez-faire, transformational, transactional and democratic leadership respectively increases or decreases by 1. The findings showed that transformational, transactional and democratic leadership had a significant positive effects on the staff performance and performance was lead to increased and between these three, transactional leadership style is associated with higher relevant. Thus, this could suggest as transactional leadership commonly practiced style and relationship exists between employee performance and leadership styles (democratic, transactional and transformational) on the study area. The researcher recommended that the Cluster would advocate for the better employee performance that uses different leadership styles depends on the situation of organizational goals and followers.