Effect of leadership style on deposit target performance of private banks in jimma town, Ethiopia

Abstract

Leadership is an important element of the directing function of management. Wherever there is an organized group of people working towards a common goal, some types of leadership become essential. The aim of the study was find out the Effect of Leadership style on Deposit target performance of private banks in Jimma town, Ethiopia. The research was described leader ship style in terms of deposit target performance of the private banks in service sector because of the needs of good leadership qualities. Transactional, transformational, and laissez fair leadership was discussed in the literature parts of the research. The research approach applied for this study was quantitative type of research where explanatory research design have been deployed. The target population of this study was private banks of Ethiopia working in Jimma. From 289 total observations of the available private bank respondents which are found in Jimma town, only 241 participants are filled and returned. The researcher purposely selected the private banks which are found in Ethiopia and multistage mixed sampling technique was used to select the sample size. The standardized questionnaires of leadership behavior and deposit target performance were adapted from previous standard questionnaire. Regression Analysis was conducted to test the effect of leadership style on the deposit target performance. The result derived in the study area was the tendencies of both transformational and transactional leadership style are practiced. Likewise, leadership style has both positive and negative correlation as well as effect of deposit target performance of private banks. Therefore, private banks should choose appropriate leadership style so as to achieve their objective and improve the business performance in the competitive business industry