Effects of Leadership Style on Employee Performance: The case of Dashen Bank

Abstract

This study examined the relationship between leadership style and employee performance at Dashen Bank in Addis Ababa, Ethiopia. The target population was 130 employees across dif­ferent branch locations, selected using a purposive sampling approach to gather the most rele­vant information. The researchers used standardized questionnaires to assess leadership styles and employee performance. Demographic characteristics were analyzed, and correlation and linear regression were used to examine the relationship between leadership style and perfor­mance. The findings showed that the laissez-faire leadership style had the most significant pos­itive effect on employee performance at Dashen Bank However, the researchers concluded that this style should be minimized, as prior studies have suggested that transactional and transfor­mational leadership styles are more effective for driving desired individual and organizational outcomes. The study highlights the critical role that leadership style plays in influencing em­ployee performance. An effective leader who commands respect and trust from followers is es­sential for maximizing productivity and achieving organizational goals. The researchers recom­mend further investigation into how different leadership approaches impact employee engage­ment and performance within the banking sector