THE EFFECT OF LEADERSHIP STYLES ON THE EMPLOYEE PERFORMANCE: IN CASE OF ARMY FOUNDAION

Abstract

The main purpose of this study was to assess the effects of different leadership styles on employee performance in ARMY foundation located in Addis Ababa. Specific objectives of the study were stated to examine the effects of four leadership styles namely autocratic, democratic, transformational, and transactional leadership styles on employees’ perceived job performance. A descriptive survey research design was employed in addressing the study objectives. The data were collected from a randomly selected 62 respondents currently working in Army Foundation. The collected quantitative data were analyzed using descriptive statistics (mean and standard deviation) and inferential statistics (Pearson’s correlation and multiple linear regression). Results of data analyses indicated that respondents perceived their leaders as practicing more of autocratic leadership style and the leaders appear to be perceived by respondents as they were practicing less of democratic, transformational, and transactional aspects of leadership approaches. Despite rated below average by respondents, transformational and transactional leadership styles were found to be positively and significantly correlated to improving employee’s task accomplishment in their respective work department. Especially, the result of multiple regression analysis indicated that transactional leadership approach was found to be the only significant predictor of employee performance as compared to the other three approaches to leadership involved in this study. On the other hand, despite respondents’ rating of autocratic leadership style as more common in their organization, analysis of correlation coefficients did not support significant relationship with improving employee performance. It was also observed from the results of data analysis result that democratic leadership aspects were not significantly related to employee performance. Thus, it appeared that leaders who tend to apply transactional and transformational leadership aspects appear most likely be more effective in enhancing organizational goal accomplishment in that respondents tend to perceive such leadership style as supporting improved work performance. Finally, based on the findings, workable recommendations and implications for further studies were forwarded.