ASSESMENT OF THE LEADERSHIP STYLE AND EMPLOYEE PERFORMANCE: THE CASE OF MINAYE PACKAGING PLC

Abstract

The purpose of this study is to explore the relation of leadership style with employee performance. A sample size of 73 was used from one private organization in Ethiopia, Minaye Packing plc. The study used descriptive and explanatory research approach, and multifactor leadership questionnaire developed byBass and Avolio (1995)was adopted. The first objective of the study was to show the relation of leadership style and employee performance and the second objective was to show dominant leadership practiced in the company. A five-point Likert scale questionnaire was used to determine the relation of leadership style with employee performance. Descriptive tools were used to analyze the collected data. Descriptive statistics show that the relatively significant value associated with employee performance is transactional leadership style followed by transformational leadership style. Correlation result shows that transactional and transformational leadership styles positively correlated to employee performance, whereas laissez faire leadership style inversely correlated to employee performance. To enhance perceived leadership influence on employee performance, shared visions and values, participating employees in decision making and problem solving and providing employees learning opportunity to enhance their knowledge’s and skillsare among the recommendations forwarded.