EFFECT OF LEADERSHIP STYLE ON EMPLOYEE PERFORMANCE: THE CASE OF BLU WATER

Abstract

Leadership is the ability of individual or a group of individuals to influence and guide followers or other members of an organization. Leadership involves making sound and sometimes difficult decisions creating and articulating a clear vision, establishing achievable goals and providing followers with the knowledge and tools necessary to achieve those goals. Effective leaders not only control, appraise and analyze, they also encourage, improve and inspire. A leadership style is a leader’s method of providing direction, implementing plans, and motivating people. The major objective of this study is to investigate the effect of leadership style on employee performance in Blu water company Ethiopia. The study was used a descriptive research design in which selection of respondents was done using a census technique. The analysis was made using descriptive statistics and significant relationship of the independent variables with the dependent variables was made using inferential statistics (correlation and regression analysis). The descriptive analysis result shows, the majority of the respondents were female (55.7). Most (51.4) of the respondents during data collection were under 18 to 28 years old. 55.0 % of them have bachelor’s degrees. The correlation analysis result shows that Leadership styles i.e. (Transformational, transactional and laissez-faire) have a positive and significant relationship with Employee performance. Finally, according to the regression analysis result, only one hypothesis (Ha2) which is transactional leadership style has a positive and significant influence on employee performance is accepted. To improve perceived leadership influence on employee performance, leaders should avoid abusing power, address disagreements, and set clear goals for each member of their team, according to the findings.