GT COLLEGE

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

ASSESMENT OF THE ROLE OF LEADERSHIP ON EMPLOYEE PERFORMANCE

(IN THE CASE OF COMMERCIAL BANK OF ETHIOPIA MINTWAB BRANCH)

A Research Submitted To the Department Of Management in Partial Fulfillment of the

Requirements of Bachelor of Arts (BA) Degree in Management

PREPARED BY:

Name ID
1. Workalem meseret lakew BM/D/AR/-3680/12-D

JUNE 2015E.C
GONDAR ETHIOPIAN
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ABSTRACT
The main objective of the study was to examine the role of Leadership on employee performance
in case of commercial bank of Ethiopia mintwab branch. Due to resource and time constraints,
the study was limited to commercial bank of Ethiopia mintwab branch. This study used a
descriptive research design to describe the existing situation. The relevant data for this Study was
obtained from both primary and secondary data source. The primary data source was gathering
from respondents through questionnaire and the secondary data was collected from different
published and unpublished documents that someone was prepared for their own purpose and
internets if it will necessary. Since the total number of employees of the bank are 100 small in
size, The study focused on Commercial Bank of Ethiopia in Mintwab Branch staff and the total
population that means the number of Commercial Bank of Ethiopia in Mintwab Branch
Employee are 100 from these 2 manager, 4 Supervisors, 94 other employees. This data is
obtained from Commercial Bank of Ethiopia in Mintwab Branch staff Employees no need of
taking sample rather the research used 50(fifity), all employees of the bank as a sample. Finally,
after the relevant data was collected, the data analysis was made through both qualitative and
quantitative analysis methods to examine the role of leadership on employee performance in
commercial bank of Ethiopia in mitwab branch. The researchers will use stratified sampling
technique and simple random sampling techniques. After analyzing the information gathered
through structured questionnaires, the following major findings are presented; About 39(78%) of
the respondents were less than 5 years’ service. This indicates that percent of the employee
contains working in the same position for 6 -10 years. We concluded that study had an
objective to clearly describe and explore the effects of leadership styles (transformational,
transactional, autocratic, and laissez-faire leadership styles) on employees’ performance of in
commercial bank of Ethiopian in Mintwab branch sample. Descriptive survey research strategy
was adopted in which a census employees sampled conveniently from a study population of
commercial bank of Ethiopia in mintwab branch different employee including the management
and employee representative were surveyed. A structured questionnaire and Interview was used
to collect primary data from the workers of the bank and Secondary data from different files.

Key words: leadership style, employee performance, CBE

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Contents page
ABSTRACT.................................................................................................................................................i
CHAPTER- ONE........................................................................................................................................1
1. Introduction.............................................................................................................................................1
1.1 Background of the study....................................................................................................................1
1.2. Statement of the problem..................................................................................................................2
1.3. Objective of the study.......................................................................................................................3
1.3.1 General objectives of the study...................................................................................................3
1.3.2 Specific objectives of the study..................................................................................................3
1.4 Research questions............................................................................................................................3
1.5 Significance of the study...................................................................................................................3
1.6. Scope of the study.............................................................................................................................4
1.7 Organization of the paper..................................................................................................................4
CHAPTER-TWO....................................................................................................................................5
REVIEW RELATED LITERATURE.....................................................................................................5
2.1 Introduction.......................................................................................................................................5
2.2. Conceptual Definition.......................................................................................................................6
2.3 leadership style..................................................................................................................................6
2.4 Employ performance.........................................................................................................................7
2.4.1 Indicator of employ performance................................................................................................7
2.5 Theoretical Literature Review...........................................................................................................8
2.5.1 Great Man and Trait Theories.....................................................................................................9
2.5.2. Behavioral Theories...................................................................................................................9
2.5.3 The Contingency or Situational School....................................................................................10
2.6. Democratic Leadership Style..........................................................................................................15
2.7. Autocratic Leadership Style............................................................................................................16
2.8. Laissez Faire Leadership Style.......................................................................................................16
2.9 Transformational and Transactional Theory....................................................................................16
2.9.1 Transactional Leadership and Employee Performance.............................................................17
2.9.2 Transformational Leadership and Employee Performance.......................................................18
3. Research Methodology..........................................................................................................................19
3.1 Research Design..............................................................................................................................19

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 3.2 Source of data..................................................................................................................................19
3.2.1 Primary source..........................................................................................................................19
3.2.2 Secondary source......................................................................................................................19
3.3 Method of data collection................................................................................................................19
3.3.1 Primary source..........................................................................................................................19
3.3.2 Secondary source......................................................................................................................20
3.3. Sampling techniques.......................................................................................................................20
3.4 Target population of the study.........................................................................................................20
3.5 Sample size......................................................................................................................................20
3.6 Method of data analysis...................................................................................................................21
CHAPTER FOUR..........................................................................................................................................24
4. DATA ANALYSIS, PRESENTATION AND INTERPRETATI ON.....................................................................24
4.1. Introduction....................................................................................................................................24
4.2. Demographic characteristic of respondents....................................................................................24
4.3. Analysis’ of leader ship style related issues................................................................................26
CHAPTER FIVE............................................................................................................................................28
5. MAJIOR FINDING, CONCLUSION AND RECOMMENDATION..................................................28
5.1. Major finding..................................................................................................................................28
5.2 CONCLUSION...............................................................................................................................28
5.3 Recommendations...........................................................................................................................30
5.4 Implications for Further Research....................................................................................................31
6.Reference................................................................................................................................................32
Appendix 1.................................................................................................................................................34
APPENDIX 2...............................................................................................................................................35
APPENDIX 3...............................................................................................................................................40

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 CHAPTER- ONE
1. Introduction
1.1 Background of the study
This study will be on leadership stands among the most prolific areas within the field of
management and human resource management. The success of organizations in general and
public sector organizations in particular depends on high level of employees’ engagement and
willingness to offer their best to improve performance. This willingness depends to a large extent
on the behavior of their leaders. Leader behavior (LB) therefore contributes in diverse ways
toward organizational as well as individual performance and outcomes. The leadership behavior
and employee task performance nexus is multilayered; yet, majority of the existing literature on
leader behavior have considered the effect of leader behavior on employee performance
(Kalsoom et al. 2018; Ohemeng et al. 2018) with minimal evidence available as to the possible
mediators in the relationship.

Several factors affect employee performance, including job satisfaction, motivation, training and
development, work environment, and communication. Job satisfaction refers to an employee's
level of contentment with their job role and organization. Motivation refers to the internal drive
that influences an employee's behavior towards achieving their goals. Training and development
provide employees with the necessary skills and knowledge to perform their job roles effectively.
The work environment also affects employee performance as it can impact an employee's
motivation and job satisfaction. Effective communication is also vital for employee performance
as it ensures that employees understand their roles and responsibilities (Gao et al., 2021).

A motivated workforce is crucial for the success of an organization. Increasing employee

performance is a key ingredient to a successful organization. Effective leaders should therefore
be able to motivate their subordinates. How can leaders use vision, empowerment, culture, and
ethics to increase employee performance main subject of this thesis.

Leadership is essential for organizations as it impacts employee performance. Employee

performance refers to the extent to which employees meet or exceed the expectations of their job
role. It is influenced by various factors such as job satisfaction, motivation, training, and
development. Effective leadership can positively impact employee performance by providing
clear direction, motivation, and support (Gao et al., 2021).
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1.2. Statement of the problem
The problem addressed in this study is the lack of understanding of the role of leadership on
employee performance at the Mintwab branch of CBE. There is a need to assess the leadership
style, communication, motivation, and empowerment of the leaders at the branch and how it
affects the performance of the employees. The study aims to identify the challenges faced by
leaders and employees in the branch and suggest possible solutions to improve leadership and
employee performance. The problem is significant as effective leadership is crucial for
enhancing employee performance, job satisfaction, and organizational productivity.

As Namutebi (2012) and Kmugisha (2012) indicated that there has continuous downward trends
the performance of employees registered in public institutions in Ethiopia. These may be
happening as a result of numerous factors such as inadequate funding, lack of motivation, work
climate, leadership and leadership’s styles among others. They have explore intensively other
factors except leadership style as a factor that influence impacts of job performance of staff. As
the preliminary interview showed employees of Commercial bank of Ethiopia Mintwab branch is
not happy with the management of the organization despite its huge plans to expand. Thus,
identifying these gaps helped the researcher to assess employee performance and the leadership
style of the organization and give an insight for the management about employee performance
with regard to leadership styles impact. There is no previous study conducted on the title of
assessment of the role of leadership on employees’ performance in case of CBE. Therefore, as a
result of the above mention problems in CBE, we are interested to conduct a study to assess the
role of leadership on employee’s performance in case of CBE, mintwab branch. Therefore, this
study will try to further investigate the impacts of leadership style that affect employee
performance of CBE in mintwab branch. Therefore, the main objective of this study is to assess
the role of leadership on employee’s performance in commercial Bank of Ethiopia, Mintwab
branch.

“Vision represents a leader's idealized goal that is shared with followers” (Johnson 2009). Strong
visions are inspiring, and associated with higher organizational performance. Transformational
leadership articulate an appealing vision of the future, challenge followers with high standards,
and provide encouragement and meaning for their work (Johnson 2009).

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1.3 Research questions
Generally, this study would try to answer the following questions.

What types of leadership style is exercised in CBE, IN Mintwab branch?

What are the impacts of leadership style on employee performance on CBE?
What is the effectiveness of employee performance in the bank?
To what extent leadership styles and practices has an effect on employee performance in
the CBE mintwab branch?

1.4. Objective of the study

1.4.1 General objectives of the study

The general objective of this study is to assess the role of leadership on employee performance in
case of commercial bank of Ethiopia, mintwab branch.

1.4.2 Specific objectives of the study

The specific objectives of the study are:

To assess the types of leadership style exercised in CBE, Mintwab branch

To examine the effectiveness of employee performance in the bank.

To identify the role leadership style on employee performance of the Bank

To analyze the effect of leadership style on employee performance of the Bank.

1.5 Significance of the study

This study will be important for the researcher for getting BA degree for the organization to
know and solve its problem, for systematically documenting the assessment of the role of
leadership on employee performance at the Mintwab branch of CBE. For another researcher was
used as a reference to conduct researcher for future investigation something in this study area.
For the society helps to motivate the society and employees, to achieve the pre-stated goal of
the organization. This study would have contributed for the organization manager to take
corrective action.

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1.6. Scope of the study
This research focuses on geographically commercial bank of Ethiopia in Mintwab branch. In
conceptually to assess the role of leadership on employee performance in the case of Commercial
Bank of Ethiopia, methodologically the researcher has used planned samples methods of
sampling technique to get accurate information from the case area and we have been collected
relevant data from all employees and managers.

1.7 Organization of the paper

The organization of the paper follows a standard structure for research papers, which includes an
introduction, literature review, methodology, results and discussion, and conclusion and
recommendations. The introduction provides background information on the study, the purpose
of the research, and the research questions. The literature review discusses the definition of
leadership, theories of leadership, importance of leadership in organizations, definition of
employee performance, factors affecting employee performance, and the relationship between
leadership and employee performance. The methodology section describes the research design,
data collection methods, sample size and selection, and data analysis techniques. The results and
discussion section presents the analysis of data collected, the relationship between leadership and
employee performance in Commercial Bank of Ethiopia Mintwab Branch, factors affecting
leadership and employee performance, and strategies to improve leadership and employee
performance. The conclusion and recommendations section summarizes the findings, discusses
the implications of the study, identifies limitations, and provides recommendations for future
research. The paper concludes with a list of references used in the study.

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CHAPTER-TWO
REVIEW RELATED LITERATURE

2.1 Introduction
Leadership is a crucial factor in organizational success, and it plays a vital role in employee
performance. According to Northouse (2019), leadership is the process of influencing others to
achieve a common goal. Leadership can be defined in various ways, but it is generally accepted
that it involves a person's ability to inspire, motivate, and guide others towards a common
objective.

There are various theories of leadership, including trait theory, behavioral theory, situational
theory, and transformational theory. Trait theory suggests that leaders possess certain inherent
characteristics that make them effective leaders. Behavioral theory emphasizes the actions and
behaviors of leaders, while situational theory proposes that leadership effectiveness is dependent
on the situation. Transformational theory emphasizes the leader's ability to inspire and motivate
followers to achieve their full potential (Northouse, 2019).

Leadership is essential for organizations as it impacts employee performance. Employee

performance refers to the extent to which employees meet or exceed the expectations of their job
role. It is influenced by various factors such as job satisfaction, motivation, training, and
development. Effective leadership can positively impact employee performance by providing
clear direction, motivation, and support (Gao et al., 2021).

Several factors affect employee performance, including job satisfaction, motivation, training and
development, work environment, and communication. Job satisfaction refers to an employee's
level of contentment with their job role and organization. Motivation refers to the internal drive
that influences an employee's behavior towards achieving their goals. Training and development
provide employees with the necessary skills and knowledge to perform their job roles effectively.
The work environment also affects employee performance as it can impact an employee's
motivation and job satisfaction. Effective communication is also vital for employee performance
as it ensures that employees understand their roles and responsibilities (Gao et al., 2021).

The relationship between leadership and employee performance has been widely studied.
Research has shown that effective leadership positively influences employee performance.

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According to Gao et al. (2021), transformational leadership positively impacts employee
performance by inspiring and motivating employees to achieve their full potential. Additionally,
effective communication, clear direction, and support from leaders are essential for employee
performance. In conclusion, leadership plays a crucial role in employee performance. Effective
leadership positively influences employee performance by providing clear direction, motivation,
and support. Factors such as job satisfaction, motivation, training and development, work
environment, and communication also affect employee performance. The literature review
provides a foundation for understanding the role of leadership in employee performance in the
case of Commercial Bank of Ethiopia Mintwab Branch.

2.2. Conceptual Definition

The role of leadership refers to the impact that leaders have on the behavior, attitudes, and
performance of their subordinates. Leadership can be characterized by different styles, such as
transformational or transactional, that influence the way leaders communicate with their
employees and motivate them to achieve organizational goals. Employee performance refers to
the extent to which employees meet or exceed the expectations of their job responsibilities and
contribute to the overall success of the organization. In the case of commercial bank of Ethiopia,
Mintwab branch, the study aims to investigate how leadership style influences employee
performance in this specific context.

2.3 leadership style

Fundamentally, every leader characterizes a different manner in leading his subordinates is
called leadership style. Cuadrado et al (2007), defined leadership style as dependable collection
of manners /behaviors, suggesting two dimensions in leaders manner, make up initiation which
integrate in duty leaning leaders and taking into account
Relation oriented leaders. Memon (2014) defines leadership style as a leader’s sort of providing
direction, motivating people and implementing plans. Leadership styles are seen as approaches
that leaders use when leading organizations, departments, or groups (Mehmood&Arif, 2011)
Leaders who search for the most effective leadership style may find that a mixture of designs is
effective because nobody leadership style is best (Darling &Leffel, 2010). As per the above
empirical review, this study approves the definition of leadership by Hill (2008). A well-directed
employee may be a focused employee in terms of expectations and organizational goals, such as
individual tend to know product knowledge, procedures and processes, any time develop
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employee influence and the skill to produce and give best to the organization for productivity.
Leadership style application is determined by leaders themselves. If leadership style applied is
sweet and may provide a good direction to subordinates, then it create confidence and work
motivation to employees, thus increasing employee morale which also effects on better employee
performance. Leaders must work beside followers to achieve better performance.

2.4 Employ performance

As the performance of an organization is dependent on the quality of the workforce at all levels
of the organization (Temple, 2010). Amos, etalic, (2004) states that the effective management of
individual performance is critical to the execution of strategy and the organization achieving its
strategic objectives. Performance cannot be left in anticipation that it will develop naturally,
despite the employee’s natural desire to perform and be rewarded for it. This desire needs to be
accommodated, facilitated and cultivated (Amos, etalic, 2004). Prasetya and Kato (2011) define
performance because the attained outcomes of actions with skills of employees who perform in
some situation. According to Pattanayak (2005), the performance of an employee is his/her
resultant behavior on a task which may be observed and valuated. To Pattanayak, employee
performance is that the contribution made by an individual in the accomplishment of
organizational goals. Here employee performance is just the results of patterns of action
administered to satisfy an objective according to some standards.

2.4.1 Indicator of employ performance

Employee Performance Indicators
To facilitate the assessment of employee performance, Sedarmayanti. (2019: 51). Suggests the
following indicators:
a. Work quality ;It is the quality of work that is achieved based on requirements of high
suitability and readiness which in turn will give rise to appreciation and progress and
organizational development by systematically increasing skill knowledge in accordance with the
increasingly rapidly developing demands of science and technology.
b. Punctuality; is related to whether or not the completion time of work is appropriate with the
planned target time. Attempted to finish every job according to plan so as not to interfere with
other work.

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c. Initiative; is to have the awareness of you to do something in carrying out duties and
responsibilities. Subordinates or employees can carry out tasks without having to depend
continuously on the boss.
d. Ability; It is among the several factors that influence a person's performance that it can be
treated through education and training.
e. Communication; It is an interaction between superiors and subordinates to express their
suggestions and opinions in solving the problem at hand. Communication leads to better
cooperation and an increasingly harmonious relationship between employees and superiors who
can also lead to feelings of similarity and acceptance.

The Influence of Leadership on Employee Performance

Several research results show that leadership set by a manager (leadership) in an organization
can create harmonious integration and encourage employee morale to achieve maximum
motivation. The drive and leadership spirit possessed by a leader can influence and move his
subordinates in the desired direction. Irham Fahmi (2014: 18). According to Handoko (2011), to
achieve maximum performance, companies must be able to create conditions that can encourage
and enable employees to develop and improve their abilities and skills optimally. One of the
factors that influence employee performance is leadership. The relationship between leadership
and employee performance based on the path-goal theory.

2.5 Theoretical Literature Review

Globally, leadership has become the foremost widely studied aspect of organizational behavior
and variety of theories have emerged that specialize in the strategies, traits, styles and the
situational approach to leadership. Various leadership paradigms have been used to be describing
leadership and leadership effectiveness. Leadership paradigm has changed over the last decades;
it has transited from the traditional leadership to the new perspectives. Schermerhorn et al (2010)
and hoy &miskel (2011). Categorize trait, behavioral and situational or contingency theories
under traditional leadership perspectives, and charismatic and transformational leadership
theories under the new leadership perspectives. The focus of all theories on leadership is to
determine organizational effectiveness. In addition, there are so many theories of leaderships for
highlight purpose for this research the following are listing one:

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2.5.1 Great Man and Trait Theories
The great man theory is based on the idea that leaders are born with innate, unexplainable
leadership skills, which cause other people to see them as heroes. It is based on the opinion that
Leaders are right and leadership is rooted in the authority of their righteousness. Leaders are
elevated by their followers on the ground of their unique qualities that others do not have. As a
result, followers do not doubt their leader’s judgments. Trait theories are based on great man
theories. Trait approach to the understanding of leadership perceives leadership as the core of
organization effectiveness and performance. Like the great man theories, trait perspective
assumes that great leaders are born with distinguished traits characteristics that make them
different from other people According to (sashkin&sashkin (2003). Oher researchers concluded
that possession of some traits might contribute to leadership effectiveness. This is different from
the original trait assumption that leaders are born and not made.

2.5.2. Behavioral Theories

The results of the trait studies were inconclusive. Traits, among other things, were hard to
measure. For example, do we measure traits such as honesty, integrity, loyalty, or diligence?
Another approach in the study of leadership had to be found. attention shifted to behavioral
theories. McGregor was a teacher, researcher, and consultant whose work was considered to be
on the cutting edge of managing people. He influenced all the behavioral theories, which
emphasize focusing on human relationships, along with output and performance. Behavioral
leadership perspective assumes, like trait leadership perspectives, that leadership is central to
organizational performance. However, the focus is on leader’s behavior rather than leader’s
personal traits/characteristics.

2.5.2.1 McGregor’s Theory X and Theory Y Managers

McGregor (2010) proposed that leadership strategies are influenced by a leader's assumptions
about human nature. Because of his experience as a consultant, McGregor summarized two
constructing sets of assumptions made by managers in industry. He developed two attitude
profiles, or assumptions, about the basic nature of people. These attitudes are termed Theory X
and Theory Y. McGregor maintained that many leaders in essence subscribe to either Theory X
or Theory Y and behave accordingly.

Theory X managers believe that:

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 The average human being has an inherent dislike of work and will avoid it if possible.
Because of this human characteristic, most people must be coerced, controlled, directed, or
threatened with punishment to get them to put forth adequate effort to achieve organizational
objectives.
People will exercise self-direction and self- control to achieve objectives to which they are
committed.
The capacity to exercise a relatively high level of imagination, ingenuity, and creativity in
the solution of organizational problems is widely, It can therefore be seen that a leader
holding Theory X assumptions would prefer an autocratic style, whereas one holding Theory
Y assumptions would prefer a more participative style.

2.5.2.2 Blake and Mouton's Managerial Grid

The managerial grid developed by Robert Blake and Jane Mouton focuses on task
(production) and employee (people) orientations of managers, as well as combinations of
concerns between the two extremes. The grid, with concern for production on the horizontal
axis and a concern for people on the vertical axis, plots five basic leadership styles. The first
number refers to a leader’s production or task orientation and the second, to people or
employee orientation. Blake and Mouton propose that Team Management- a high concern
for both employees and production is most effective type of leadership behaviors.

2.5.3 The Contingency or Situational School

Contingency theory is an approach to leadership during which leadership effectiveness is
determined by the interaction between the leader’s personal characteristics and aspects of the
situation. The contingency theory places its assumption basing on the relationship between
leadership style and organizational outputs can be temperate by situational issues connected with
the environment, and thus the outputs cannot be forecasted by leadership style, unless the
situational variables are known (Cheng and Chan, 2012). Effective leadership requires adapting
one’s sort of leadership to situational factors, and control is contingent three factors namely the
connection between the leader and followers, the degree of the task structure and therefore the
leaders’ authority, position or power.

2.5.3.1 Fiedler’s Contingency Theory

Contingency theory is an approach to leadership during which leadership effectiveness is
determined by the interaction between the leader’s personal characteristics and aspects of the
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situation. The contingency theory places its assumption basing on the relationship between
leadership style and organizational outputs can be temperate by situational issues connected with
the environment, and thus the outputs cannot be forecasted by leadership style, unless the
situational variables are known (Cheng and Chan, 2010). The solution to a managerial situation
is contingent on the factors that impinge on the situations. For example, in a highly routine
(mechanistic) environment where repetitive tasks are the norm, a relatively directive leadership
style may result in the best performance. However, in a dynamic environment a more flexible,
participative style may be required. Fielder looked at three situations that could define the
condition of a managerial task:

Leader member relations: How well do the manager and the employees get along.

Task structure: Is the job highly structured, unstructured, or somewhere in between.

Position power: How much authority does the manager possess?

2.5.3.2 The Hersey-Blanchard Model of Leadership

The Hersey-Blanchard Leadership Model also takes a situational perspective of leadership.
(Hershey & Blanchard (2008) work was based on Ohio studies on leadership. This model posits
that the developmental levels of a leader's subordinates play the greatest role in determining
which leadership styles leader behaviors are most appropriate. Task behavior: is the extent to
which the leader engages in spelling out the duties and responsibilities to an individual or group.
This behavior includes telling people what to do, how to do it, when to do it, where to do it, and
who has to do it. In task behavior, the leader engages in one-way communication.

Relationship behavior: is the extent to which the leader engages in two-way or multi-way
communications. This includes listening, facilitating, and supportive behaviors. In
Relationship behavior, the leader engages in two-way communication by providing socio-
emotional support.
Maturity: is the willingness and ability of a person to take responsibility for directing his or
her own behavior. People tend to have varying degrees of maturity, depending on the
specific Task, function, or objective that a leader is attempting to accomplish through their
effort.

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2.5.3.3 Tannenbaum and Schmidt’s Leadership Continuum
One criticism of early work on leadership styles is that they looked at styles too much in black
and white terms. The autocratic and democratic styles or task-oriented and relationship-oriented
Style's, which they described are extremes, whereas in practice the behavior of many, perhaps
most leaders in business will be somewhere between the two. Contingency theorists
Tannenbaum and Schmidt suggested the idea that leadership behavior varies along a continuum
and that as one moves away from the autocratic extreme the amount of subordinate participation
and involvement in decision taking increases Hur, M. H. (2008. They also suggested that the
kind of leadership Represented by the democratic extreme of the continuum would be rarely
encountered in formal Organizations. Four main leadership styles can be located at points along
such a continuum:

Autocratic: The leader takes the decisions and announces those expecting subordinates to
carry them out without question the telling style.

Persuasive: At this point on the scale, the leader also takes all the decisions for the group
without discussion or consultation but believes that people will be better motivated if they are
persuaded that the decisions are good ones. He or she does a lot of explaining and 'selling' in
order to overcome any possible resistance to what he or she wants to do. The leader also puts
a lot of energy into creating enthusiasm for the goals he or she has set for the group (the
Selling style).

Consultative: In this style the leader confers with the group members before taking decision
and, in fact, considers their advice and their feelings when framing decisions.

He or she may, of course, not always accept the subordinates' advice but they are likely to
Feel that they can have some influence. Under this leadership style the decision and the Full
responsibility for it remain with the leader but the degree of involvement by Subordinate's in
decision taking is very much greater than telling or selling styles (the Consulting style).

Democratic: Using a style the leader would characteristically lay the problem before his or
her subordinates and invite discussion. The leader's role is that of conference Leader, or
chair, rather than that of decision taker. He or she will allow the decision to emerge out of the
process of group discussion, instead of imposing it on the group as its Boss the Joining style.

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 What distinguishes this approach from previous discussions of leadership style is that there
will be some situations in which each of the above styles is likely to be more appropriate than
the others.

Telling: In an emergency, a telling style may be most appropriate and would normally be
considered justified by the group (as long as the general climate of that group is Supportive
and mature) Bolden et al. (2003).

Selling: The selling style would tend to fit situations in which the group leader, and he or She
alone2.5.3.4. The Path-Goal Leadership Model

Path-goal model is rooted in motivation theories of goal setting and expectancy. The authors,
House and Mitchell (as reported by (Oluwatoyin, 2006) use this leadership model to explain how
a leader’s behavior influences the performance and satisfaction of the subordinates. The leader’s
major task is to increase Subordinate's motivation for the achievement of personal and
organizational goals. Motivation is Said to increase by clarifying the subordinates‟ path to the
rewards that are available or Increasing the rewards that the subordinates value and desire, that
is, the leader assists the Subordinates to identify and learn behavior that will lead to successful
task accomplishment and Organizational rewards(Achua, 2001)Pertinent to this model is the
ability of the leader to match his/her leadership style to the Prevailing situation and the step the
leader can take to influence performance and satisfaction (Durbin 1998). House and Mitchell (as
reported by Durbin, (1998) suggest that based on the Situational factors, the leader should choose
one of four leadership styles that will enhance goal Achievement through performance and
satisfaction. Situational factors, according to this model, consist of the type of subordinates and
the nature of work to be performed. The type of Subordinate is determined by how much
control they think they have over the environment in Terms of their perception of and attitudes
toward authority, goal achievement, ability to perform the assigned task and relationship among
subordinates in the area of job satisfaction. For Instance, subordinates who attribute outcome to
their own behavior are likely to be satisfied with participative leader’s approach while
subordinates who attribute outcome to external factors are likely to be efficient under a directive
leader. Similar to this is how subordinates perceive Their abilities, those who feel their ability is
high will not need a directive leader and those who Think their ability is low will prefer a

13
directive leader. House and Mitchell in Griffin (2001) Suggest that a leader can behave in
different ways in different situations. The following are the four kinds of leader’s behavior:

(a) Directive leadership style

Directive leadership style is similar to the task-oriented style. The leader who uses this type of
Leadership style provides teachers with specific guidelines, rules and regulations with regard to
Planning, organizing and performing activities. This style is deemed appropriate when
Subordinate's ability is low and or the task to be performed is complex or ambiguous. Job
satisfaction is increased when the leader gives more directives Hoy &Miskel (2011).

(b) Supportive leadership style

Supportive leadership style is more of a relationship-oriented style. It requires the leader to be

Approachable and friendly. He/she displays concern for the well-being and personal needs of the
Subordinate's. He/she creates an emotionally supportive climate. This style is effective when
Subordinate's lack self-confidence, work on dissatisfying or stressful tasks and work does not
Provide job satisfaction Hoy and Miskel (2011).

(c) Participative leadership style

The leader who employs this style consults with subordinates for ideas and takes their ideas
seriously when making decisions. This style is effective when subordinates are well motivated
and competent (Lussier&Achua (2011).

(d) Achievement-oriented style

In this style, the leader sets challenging but achievable goals for the subordinates. He/she pushes
Work improvement, sets high expectations for subordinates, and rewards them when the
Expectations are met. That is, the leader provides both high directive (structure) and high
Supportive (consideration) behavior. This style works well with achievement oriented
Subordinates Lussier&Achua (2011). Path-goal leadership model proposes that:

a) Subordinates see the leader’s behavior as acceptable and satisfying when it is Instrumental to
obtaining future satisfaction.

14
b) The leader’s behavior will be motivating so much so that his/her behavior influences
expectations and performance to the extent that it complements subordinates‟ work Environment
by providing needed guidance, clarity of direction and rewards for Performance (Ubbenetalic
2001). In conclusion, the success of this model is based on the ability of the leader to thoroughly
motivate the subordinates because the subordinates are satisfied and work hard if there is an
Indication that their efforts will lead to things that they highly valued, such as awards,
promotion. All the same, this model is said to be complex as the leader may find it difficult to
know which Style to use and when, considering those situational factors Lussier&Achua (2001).

2.6. Democratic Leadership Style

Democratic leadership style is exhibited where the focus of power is more towards the group as a
Whole, and where there is greater interaction within the group (Mullins, (2002), the manager
Share's the leadership functions with members of the group where he or she takes part as a team
member. The manager would characteristically lay the problem before the subordinates and
Invite discussion. In this respect the manager’s role is to be a conference leader rather than that
of decision taker. The manager allows the decision to emerge out of the process of the group
discussion, instead of imposing it on the group as a boss. This leadership style is appropriate only
in instances where the nature of the responsibility associated with the decision is such that group
Members are willing to share with their manager, or alternatively the manager is willing to
accept Responsibility for decisions, which he or she has not made personally. The point of focus
is sharing: the manager shares decision-making with the subordinates. Even Though he or she
invites contributions from the subordinates before making a decision, he or she Retained the final
authority to make decisions consultative. The manager may also seek Discussion and agreement
with teachers over an issue before a decision is taken consensus. He or she may allow the
subordinates to take a vote on an issue before a decision is taken Democratic. By implication, it
is not appropriate for use in times of crisis when the situation demands on-the-spot decision.
Seeking Advice from an uninformed or incompetent group of subordinates may lead to disaster.
However, Golemanetalic, 2002). posit that a democratic leader keeps staff morale high and
therefore Positive climate prevails in the organization. There are significant similarities between
this style and Likert’s systems III and IV leadership styles.

15
2.7. Autocratic Leadership Style
In autocratic leadership, the manager retains most authority for himself and makes decision with
the mind that subordinates will implement it. He is not bothered about attitudes of the
Subordinate's toward a decision; he is rather concerned about getting the task done. He tells the
Staff what to do and how to do it asserts himself and serves as an example for the subordinates.
This style is viewed as task-oriented (Durbin, 1998). This style is similar to Likert’s II
Leadership styles and I. With the authoritarian style, the focus of power is more with the
manager, and all interactions within the group move towards the manager. Accordingly, to
Mullins (2002), the manager solely exercises decision-making and authority for determining
policy, procedures for achieving Goals, work tasks and relationships, and control of rewards or
punishments. However, this style would be most appropriate in emergencies, and would
normally be considered justified by the group, that is, where the general climate of the group is
supportive and mature.

2.8. Laissez Faire Leadership Style

Mullins, (2006) describes laissez-faire style as genuine and it is where the managers observe
Subordinate is working well on their own. The manager consciously makes a decision to
delegate the focus of power to subordinates, and allow them freedom of action to do as they
think best and not to interfere; but is readily available if help is needed. Accordingly, to Mullins,
there is often Confusion over this style of leadership behavior. The word genuine described by
Mullins, (2006) is emphasized because it is to be contrasted with the manager who could not
care, or who Deliberately keeps away from the trouble spots and does not want to get involved.
Furthermore, the manager allows subordinates to get on with their work at hand, and again they
are left to face Decision's, which rightly belong with the manager. The manager gives almost all
authority and Control to subordinates. There is no person of authority in the organization. The
manager leads the organization indirectly, he or she does not make decisions; rather he or She
abides by popular decisions. There is no setting of goals and objectives by the manager.

2.9 Transformational and Transactional Theory

Over the past twenty five years, an outsized body of research has emerged around
transformational – transactional leadership theory. Transactional theories focus on the role of
supervision, organization and group performance and those they benchmarked leadership on a

16
method of appreciations and penalties for achieving particular goals. The type of transaction
whether a gift or discipline, depends on employee performance. Chna (2005) cited Bass (1985)
study hypothesized the transactional leader’s plea to the followers self-interests. Transactional
leaders attempt to meet the current needs of their subordinates through bargaining and
exchanging. Both leaders and followers specialize in achieving the negotiated performance level.
The transformational theory emphasizes the bondage created among leaders and subordinates.
The capability to motivate subordinates to go up high their own personal objectives for the
highest good of the organization is called Transformational leadership (Bass, 1985, 1996 as cited
by Murphy & Drodge, 2004). Bass (1985) theorized the transformational style of leadership
comes from deeply held personal values which can't be negotiated and appeals to the
subordinates’ sense of moral obligation and values. Bass declared there have been four sorts of
transformational leadership behavior, namely idealized influence (charisma), inspirational
motivation, individualized consideration, and intellectual.

2.9.1 Transactional Leadership and Employee Performance

Transactional leadership: may be a leadership style that emphasizes to transactions between
leaders and subordinates. The agreement between subordinates responsibility and the rewards
gained when the planned goals are achieved a leadership practice called Contingent reward.
While exception management is leader monitor deviations from established standards and take
corrective action to realize organizational goals. Yulk (2007) affirms that transactional leadership
style is a kind of leadership style that gives more emphasis on the transaction between the leader
and its subordinate. Transactional leadership stimulates and pressurizing followers by bartering
appreciation with an exacting achievement Negash, B. W. (2021). In a transaction the
subordinate promised to tend rewards when subordinate is able to complete their duties in
accordance with agreements. In other words, he encourages subordinates to figure. As other
leadership styles, transactional leadership styles can also impacted the job performance either
positively or negatively. It depends on employee assessment. The positive impact can happened
when employees review transactional leadership positively and a negative impact will occur if
employee takes into account that transactional leadership styles cannot be believed because they
are not keeping their promises, not-honest or not transparent.

17
2.9.2 Transformational Leadership and Employee Performance
This looks for to renovate of visionary. It becomes combined vision where followers work to
achieve the vision into actuality. In other words, transformational process can be seen through
different transformational leadership manners as: ascribed charisma, idealized influence,
inspirational motivation, intellectual stimulation, and individualized consideration Bass and
Avolio, (2003). Yukl(2007) states that appliance of transformational leadership style can get
better productivity due to transformational leadership style desires to extend comprehension and
human resources budding. Leader with transformational leadership provides opportunity and
confidence to his subordinates to hold out duties in accordance together with his mindset to
achieve organizational goals. Butler (1999) states that a transformational leader encourages
subordinates to possess vision, mission and organization goals, encouraging and motivating to
point out maximum performance, stimulates subordinates to act critically and to unravel
problems in new ways and treat employees individually. Suharto (2005) suggests that more
frequent transformational leadership behaviors implemented will bring significant positive effect
to enhance psychological empowerment quality of subordinates. Transformational leader that
gives attention to individual are going to be capable to direct vision and mission of organization,
providing motivational support, and creating new ways to figure effective

18
CHAPTER THREE

3. Research Methodology
3.1 Research Design
The type of study will use for the purpose of study is descriptive study. It will be uses because it
is a fact-finding study with adequate and accurate interpretation of the finding. It describes what
the reality is. Since the present study is concerned with assessing employee assessing the role of
leadership on employee performance at the Commercial Bank of Ethiopia Mintwab Branch the
researchers will assume that the descriptive type of research will the most appropriate method to
be use.

3.2 Source of data

Building needs different materials for successful construction so, the only possible way of
achieving the objective of the study is through gathering relevant data to do this the researchers
will use both primary and secondary source of data.

3.2.1 Primary source

Primary source of data are original materials that have not been altered or distorted in any way
and are the raw material of original document and objects which were created at the time.
Primary data are original observation will collect by the researchers.

3.2.2 Secondary source

A document or recording that relates or discusses information presented. Are document written
after an event are happened occurred provided second hand accounts of event in at the
Commercial Bank of Ethiopia Mintwab Branch.

3.3 Method of data collection

3.3.1 Primary source

Source of primary data will collect through questionnaire propose tools for the primary data
collection method that is close ended and open-ended type questions prepared to employee of at
the Commercial Bank of Ethiopia Mintwab Branch to express their feeling and provided
alternative to choose.

19
3.3.2 Secondary source
Source of secondary data will gather from different published documents are source of date such
as books, reports and internet websites and also previously done researches on different aspects
of documents at the Commercial Bank of Ethiopia Mintwab Branch are source of secondary
data

3.3. Sampling techniques

Samples are made up of some of the members of Employer of Commercial Bank of Ethiopia in

Mintwab Branch staff. Selecting a sample is a fundamental element for the study. Sampling
design is the basic concept which is used to structure of data that benefits to the researchers
either used without complexity. The researchers will use proportionate stratified sampling and
simple random sampling techniques.

3.4 Target population of the study

The study focused on Commercial Bank of Ethiopia in Mintwab Branch staff and the total
population that means the number of Commercial Bank of Ethiopia in Mintwab Branch
Employee are 100 from these 2 manager, 4 Supervisors, 94 other employees. This data is

obtained from Commercial Bank of Ethiopia in Mintwab Branch staff Employees.

3.5 Sample size

The researchers will take 50 Commercial Bank of Ethiopia in Mintwab Branch Employees as a
sample to select the sample size. The researchers will indicate the sample selection process in the
following table based on TayroYamane (1967) sample size determination.

N
n= Where, n=sample size
1+ N ¿ ¿

N=total population

e=error

100
n=
1+ 100¿ ¿

n=50

20
Table 3.1 Sample size determination method

Strata Number of Proportional Sample from each

staff Employees allocation formula staff Employees

Manager 2 2 1
50( )
100
Supervisors 4 4 2
50( )
100
other employees 94 94 47
50( )
100
Total 100 100 50
50( )
100

So, the total sample size of the study is 50 individuals. The researchers will use simple random
sampling techniques in order to distribute questionnaire for each stratum and collect the data.
Because it gives for equal chance for each respondent of stratum being select.

3.6 Method of data analysis

After the data collected the analysis of the data began in the study descriptive method of data
analysis is finding to be important for transforming of the raw data in to a form that makes easy
to understand and interpret. Primary descriptive techniques are use with simple statically analysis
such as percentage and some other relevant tools are will use. In addition, categorical method
such as tabular presentation will use to the study briefly.

21
 APPENDIX
GT COLLEGE

College of business and economics

Department of management

Part 2: Questions related to leadership and employees performance.

1. Which leadership style is exercised in your organization?

A, Democratic leadership style □C, Autocratic leadership style □

B, Laiz fair leadership style □D, Situational leadership style □
If any other Specify: ----------------------------------------------------------------------

2. Does the leader accomplish or perform their duty and responsibilities properly?

A, Yes □B, no □
3 If your answer is yes for question number '2 please describe the manifestation:
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------

4 If your answer for question number 2 is no please describe your manifestation:

---------------------------------------------------------------------------------------------------------------------
----------------------------------------------------

5, what are the techniques which are exercised leader tries to improve employees’ performance

A. providing proper work direction □ C, punishment □

B, providing training □ D, giving additional incentive. □

22
If any other please
specify------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------

6, to what extent do your leader understand employees need and problem?

A, very well □ C, moderate □

B, Low □ D, very low □
7, if your answer for question numb r” 6 ” is poor or very poor, on
what ?-------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
--------------

--------------------------------------------.

8, how do you see the effectiveness of employees in your organization?

A, very good □ C, good □

B, Poor □ D, very poor □
9, If you answer for question number “8” is poor or very poor, what is your manifestation:
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------

10, are all employee participate in decision making process of the organization?

A, Yes □ B, No □
23
CHAPTER FOUR

4. DATA ANALYSIS, PRESENTATION AND INTERPRETATI ON

4.1. Introduction
This chapter deals with analysis and interpretation of data gathered through questionnaires so
that all information that researcher obtained from respondents were presented by using tables,
and percentage. 24 questions were developed and distributed 50 respondents and all
questionnaires were answered by respondents.

4.2. Demographic characteristic of respondents

Table 1; respondent's’ response by sex

Item Descripation No of respondents Percentage%

Sex Male 30 60
Female 20 40
Total 50 100

Source: Questionnaire survey, 2023

Table 2 Respondent's response by age.

Item No of respondents Percentage%

Age range 18-23 0 -
24-29 18 36
30-35 16 32

24
 36-40 12 24
Above 4 8
Total 50 100

Source: Questionnaire survey, 2023

As shown in the above table.2 18(36%) of the respondent were between 24-29 age range
16(32%)of the respondents were between 30-35 age range 12(24%) respondent were between
36-40 age range and age range 4 (8%) above 50 this implies that most of the employees age
range is between 24-40 years.

Table 3 Respondent's’ response by Educational level.

Item No of respondents Percentage%

Under grade 12 0 -
Diploma 2 4
Education level Degree 40 80
Master 8 16
Above master 0 -
Total 50 100
As indicated in the above table .3 out of the total respondents 2(4%) of employees were diploma
holder 40(80%) of employees were first degree holder 8(16%) of employees were master degree
holders. This shows that the majority of respondents in Commercial Bank of Ethiopia Mintwab
Branch were first degree holders.

Source: Questionnaire survey, 2023

Table 4; respondent’s response on work experience .

Item Descripation No of respondents Percentage%
Below 5 year 39 78
6-10 year 11 22
Work Experience 11-15 year 0 -
Above 15 year 0 -
Total 50 100

Source: Questionnaire survey, 2023

25
From the above.4 regarding work experience of employees in Commercial Bank of Ethiopia
Mintwab Branch 39(78%) of the respondents were less than 5 years’ service and 11(22%) of the
respondent were 6-10 years’ service .This shows that no employees have more than 10 years of
experience in the bank.

4.3. Analysis’ of leader ship style related issues

Table 5 Respondent’s response on leader ship style

No Descripation No of respondents Percentage%

1 Democratic leader ship style 27 54
2 Autocratic leader ship style 0 -
3 Laizfair leader ship style 0 -
4 Situational leader ship style 23 46
5 Total 50 100
Source: Questionnaire survey, 2023

As it is shown in the above table .5, out of the total respondents, 27(54%)of the respondent were
said that democratic leader ship style is adopted in the bank, 23(46%) of the respondents were
said that situational leadership style is adopted in the bank. This implies that more than half of
the total respondents were said that democratic leadership style is adopted in this bank.

Table 6; respondent’s response on the leader accomplishes or performs their duties and
responsibilities property

No Descripation No of respondents Percentage%

1 Yes 23 54
2 No 27 46
5 Total 50 100
Source: Questionnaire survey, 2023

From the above table 23(46%) of the respondent were said that the leader of the bank accomplish
or perform their duties and responsibilities properly because the leader of this bank were
responsible for motivating employees towards goal achievement, provide an important work

26
direction guidelines ,design training program to improves employees performance, Conduct
regular and timely performance evaluation and the leader of this bank were interested to share
their knowledge and experience with employees of the bank. But 23(54%) of the respondents
were said that the leader of this bank does not accomplish or perform their duties and
responsibilities the reason for this were the leader does not provide timely feedback for the
existing problems and employees question, performance evaluation of the bank were not fair,
sometimes the leaders were not open to receive employees idea and comment, lack of interest to
answer the staff questions, decision making process were not fast, lack of experience and
knowledge to guide employees in a polite way, punctuality problem of the leader, unable to
create attractive work environments for employees and unable to give fair training to employees.

This implies that manager of the bank were not properly accomplishing their duties and
responsibilities.
Table 7; respondent’s response on techniques of the leader to improve the performance of
employees.

No Descripation No of respondents Percentage%

1 By providing proper work direction 21 42
2 By giving additional incentives 0 -
3 By providing training 24 48
4 Punishment 5 10
5 Total 50 100
Source: Questionnaire survey, 2023

As it is shown on the above table 7 only 21(42%) of the respondent said that the leader improve
employees performance by providing proper work direction, 24(48%) of the respondents were
said that the leader improve employees performance by training and the remaining 5(10%) of the
respondents were said that the leader improve employees performance by punishment. This
implies that managers apply various ways of improving employee’s performance.

27
 CHAPTER FIVE

5. MAJIOR FINDING, CONCLUSION AND RECOMMENDATION

5.1. Major finding
After analyzing the information gathered through structured questionnaires, the following
major findings are presented;

About 39(78%) of the respondents were less than 5 years’ service. This indicates that percent
of the employee contains working in the same position for 6 -10 years.

As revealed in the analysis autocratic leadership style is negatively affected the commercial
bank of Ethiopia employs performance.

Regarding the effect of organizational strategy on employee performance, participants in this

study said that most strategies tried to implement by the organization are failed before
achieving the expected goal. The failure in these strategies has lots of negative effect on
employee performance.

The gap analysis of the four leadership styles was rated as good. But improvement or change
of all leadership styles is needed, especially on autocratic and laissez fairleader ship styles

5.2 CONCLUSION
This study had an objective to clearly describe and explore the effects of leadership styles
(transformational, transactional, autocratic, and laissez-faire leadership styles) on employees’
performance of in commercial bank of Ethiopian in Mintwab branch sample. Descriptive survey
research strategy was adopted in which a census employees sampled conveniently from a study
population of commercial bank of Ethiopia in mintwab branch different employee including the
management and employee representative were surveyed. A structured questionnaire and

28
Interview was used to collect primary data from the workers of the bank and Secondary data
from different files.

Based on the results, democratic leadership style has a significant positive impact on
employee performance. This indicates that when democratic leadership style is applied,
performance of employees would increase. Therefore, the bank manager is encouraged to
adopt democratic leadership style and involve team members in the decision making process
since it is confirmed that performance of employees is the best under this style of leadership.
Autocratic leadership style, however, shows a significant negative impact on employee
performance. This indicates that performance of employees would not increase when
autocratic approach is applied. Laissez-faire leadership style has positive impact on employee
performance, which indicates that employee performance would increase when laissez-faire
leadership style is applied. Laissez-faire leadership style is considered as moderate
leadership style. This technique is being suited when employees understands their
responsibilities well and possess strong analytical skills. This approach can be used when
leaders are very much confident on team members and in any condition should not blame
each other for mistakes

As revealed in the analysis autocratic leadership style is negatively affected the commercial
bank Ethiopia of in mintwab branch employee performance.

The gap analysis of the four leadership styles was rated as good. But improvement or change
of all leadership styles is needed, especially on autocratic and laissez fair leadership styles.

As shown in the analysis section the employees of the bank were not happy by the most acts
of their leader ,because the leader of this bank were not accomplish or perform their duties
and responsibilities well, lack of knowledge and skill on how to lead employees in a good
manner, unable to give timely feedback for employees need and problems, unfair
performance evaluation, the relation among leader and their subordinates were not good, the
leader was not invite all employees in decision making process of the bank and less care of
leader for employees.

Due to these problems of leadership the majority of employee’s performance in this bank was
poor and the organization working structure is relatively not good for the overall

29
 performance of the employees generally the finding shows that the role of leadership on
employee’s performance is low in this bank.

5.3 Recommendations
This study provides important base ideas for leadership styles impact on employee performance
for commercial bank of Ethiopia in mintwab branch. Based on the findings of the research the
following recommendations were forwarded: Organizations need to have highly capable leaders
to lead their employees in daily operation and accomplish the organizational goals. Based on the
findings of this research, democratic leadership style has greater impact than laissez-faire
leadership and autocratic styles in terms of employee performance in the bank. As presented
in the findings part, the management system has been changed repeatedly. This makes the
organization employee not to have sustainable leadership-employee connection and unable to
know what kind of leadership style is practiced in their organization. Therefore, the corporation
should build stable leadership and leaders to achieve its objectives. As the study reveals, some
management members are leading their subordinate with their common sense. Even they
couldn’t basic ideas of leadership. Hence, the researcher recommends the organization to provide
short term leadership trainings or interventions to improve leadership styles. Some managerial
leadership is filled by delegations. These make them not to take their action and guide their
followers confidently. So, it is recommendable for the organization to give full power for each
work unit leaders and assign permanently on posts to decide on critical issues and to make them
accountable on failure of responsibilities. And should fill the vacant management posts either
through delegation or appointment. It is found that due to unable to properly implement the
already undergoing tools effectively, the corporation couldn’t improve employee performance.
Therefore, the organization should fully implement the organization strategy with those tools to
improve employee performance. The organization should engage its employee in decision
making process to make them active in doing their defined duties and be part and parcel of the
organizational success. Employee's should be responsible and punctual for their work and
improve their performance if there is good work environment, rule and regulation of work. In
order to make employees happy and punctual the organization should build and change the belief
and attitudes of employees. Lastly the researchers want to forward their suggestion that nib
international bank should invite further researcher who are interested to make research.

30
5.4 Implications for Further Research
One limitation of this study is that the survey was conducted with some employee of the of
commercial bank of Ethiopia in Mintwab branch. Moreover, time period to collected data were
mostly in two months June and July, 2022 with limited valid responses of some respondent in the
bank. Most employee and management members were not concentrated to give response because
of the outbreak being busy working on this global and national response. Thus, some conclusions
may be improved in other more extensive studies.

Despite these limitations, the study contributes to enrich the literature of effects of leadership
styles on employee performance from the employee perspective. It enhances understanding of
leadership styles and its impacts on employee performance in the bank. The findings and
implications will benefit bank service sector.

In further research, this empirical evidence may be improved and better represent for
Commercial bank of Ethiopia or even in other countries with larger sample and during-year data
collection. Besides, further research may deeply examine whether items used in this study are
suitable to measure employee performance in other sectors with respect to leadership style
effects. Additionally, different demographic variables may be taken under the consideration as
controlling variables to discuss the different leadership styles effect on employee performance
among different sample groups.

And also, the future researchers may focus on other countries to get the full picture of
employee’s response on the railway industry leadership styles effects on employee performance.
The future researches may also examine other determinants that affect employee performance of
the railway sector and also can do a comparative analysis with respect to other railway industry
enterprises

31
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N’Guessan, R., Corbel, V., Akogbéto, M., & Rowland, M. (2007). Reduced efficacy of
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33
 Appendix 1

Questionnaire
Dear Respondents,

We are management students from Gt college, we undertaking a research on the title “The role of
Leadership Styles on Employee Performance: the Case of CBE mintwab branch” in partial fulfillment of
our study. We kindly request you to take some minutes of your time in filling this questionnaire. The
information you provide will be used only for this study purpose and kept confidential. Please kindly give
genuine response that the outcome of the study also to be genuine. Thank you in advance for your kind
support in filling the questionnaire.) So, for the closed ended questionnaires;

Part 1:- Back ground information

Guide: Please put a check mark (√) on the appropriate box.

1. Sex: male □female □

2. Age: 18-23 □ 24-29 □30-35 □36-40 □above 40 □

3. Education status: under grade 12 □diploma □degree □Master degree □above

master degree

4. Work experience: below 5 years □6-10 year□11-15 □above15 year’s □

34
 APPENDIX
GT COLLEGE

College of business and economics

Department of management

Part 2: Questions related to leadership and employees performance.

2. Which leadership style is exercised in your organization?

A, Democratic leadership style □C, Autocratic leadership style □

B, Laiz fair leadership style □D, Situational leadership style □
If any other Specify: ----------------------------------------------------------------------

2. Does the leader accomplish or perform their duty and responsibilities properly?

A, Yes □B, no □
3 If your answer is yes for question number '2 please describe the manifestation:
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------

4 If your answer for question number 2 is no please describe your manifestation:

---------------------------------------------------------------------------------------------------------------------
----------------------------------------------------

5, what are the techniques which are exercised leader tries to improve employees’ performance

B. providing proper work direction □ C, punishment □

35
 B, providing training □ D, giving additional incentive. □
If any other please
specify------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------

6, to what extent do your leader understand employees need and problem?

A, very well □ C, moderate □

B, Low □ D, very low □
7, if your answer for question numb r” 6 ” is poor or very poor, on
what ?-------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
--------------

--------------------------------------------.

8, how do you see the effectiveness of employees in your organization?

A, very good □ C, good □

B, Poor □ D, very poor □
9, If you answer for question number “8” is poor or very poor, what is your manifestation:
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------

36
10, are all employee participate in decision making process of the organization?

A, Yes □ B, No □
11, if your answer for question number” 10” is yes what are the
reason---------------------------------

---------------------------------------------------------------------------------------------------------------------
---------------------------.

12, if your answer for question number “10” is no on what ---------------------------------

---------------------------------------------------------------------------------------------------------------------
-----------------------------.

13, how do you see the organizational structure of the bank?

A, Very good □ B, good □ C, Poor □ D, very poor □

14, if your answer for question number” 13” is poor or very poor what are the impacts?
Specify-----------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------

15.What are the Impact of leadership style on employees performance in the

organization?----------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
-------------------------------

16. Which type of leadership style more applicable in the Organization?

A, Participative leadership. □ C, laissez fairs leadership □

B, Transformational leadership □ D, Transnational leadership □

37
17. Do you think, is there a problem related to leadership style in your organization?

A, Yes. □ B, No. □
18. If your answer is’’ yes ‘’ for question number ‘’17’’ what is the main problem?

A, absence of good leadership style □

C. lack of qualified man power □

D. lack of high skilled □
19. Do you think, is there a problem related to employee’s performance?

A, Yes □ B, No □
20. For question number 19 if your answer is yes, what are the main causes of problem?

A, Low coworker’s relation □ C, lack of safety working condition □

B, less reward and incentive for employee’s □

21. Do you think the organization has mechanisms to Perform employees?

38
A, Yes □ B, No □ .

22. If you answer is ‘’yes’ for question number 21 by what:

A, giving reward. □B, salary and increment □ c, giving award□

23. Measure of employee’s performance: A, high □ B medium □ □ C low

24. Which type of leader ship style has good employee’s performance?

A, Participative leadership style □ Transformational leadership style □ Autocratic

leadership style □ D transnational leadership style □

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APPENDIX 3
GT COLLEGE
College of business and economics
Department of management
Part III
Semi-structured interview questions for CBE mintwab Members:
1. How do you expect the job performance of CBE mintwab branch Employees?
--------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------
2. How does the leadership style affect the CBE employee’s job performance?
--------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------
3. How does the leadership practice affect the CBE employee job performance?
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
--------------
4. What factors mostly influence employees while they work for the
CBE? _________________________________________________________
___________________________________________________________________
_________
5. Do you have any comments for future improvement from both sides (management?
And employee)?
______________________________________________________________________
_____________________________________________________________

Thank you for your willingness and precious time.

40