Assessments of Leadership Styles and Its Effect On organizational Performance: The case of Top Ten Ethiopian Commercial Banks

Abstract

This paper involved a study of leadership styles in the realism of commercial banks in Ethiopia using literature that had been written on the subject and examinations of an accurate determination of leadership styles, transformational, autocratic and democratic leadership that contribute to success was able to be achieved. It was concluded that transformational leadership styles are explicitly profitable when dealing with bank employees. For this study a mixed descriptive and explanatory research approaches were employed. To achieve the objective of this study, primary data was collected from Employees from top 10 Commercial bank Head Quarters in the commercial banks Industry of Ethiopia. Structured questionnaires were distributed to the samples of 399 Bank Employees and managers all 90% of respondents are completed and responses were returned. Interviews were also conducted with management bodies of the banks. For this study systematic and purposive sampling techniques has been pursued to collect data. And the descriptive analysis result indicates that there is high level of correlation of transformational leadership from all independent variable and findings also confirm that the result of transformational Variables majority of the respondents responded agree on the statements of transformational dimension anddemocratic leadership style Variable including they received advice from the leader on what to do and how, that the leader encourages group conversations, that the leader encourages creativity and people are frequently largely engaged in systems and decisions. Keywords: Leadership style, transformational leadership, organizational Performance, Autocratic leadership, and Democratic leadership