THE EFFECTS OF LEADERSHIP STYLE ON EMPLOYEE PERFORMANCE: IN THE CASE OF BAHIR DAR TEXTILE

Abstract

Leadership style pursued by managers/supervisors is among underlying factor determining the productivity of employee in public and private manufacturing organizations in Ethiopia. The target population of this study was those who are permanent full time employees of Bahir Dar textile Share Company. The researcher used Survey instrument type of design. Data was generated using standard Multifactor Leadership Questionnaire (MLQ) and the performance of employee measured based on self-rating questionnaire. Probable (simple random sampling) and non-probability sampling technique was used based on the population size N=1290, the final required sample size obtained was 305 and the returned questionnaire is 268, which is more than 10% of the total population. Descriptive analysis shows democratic style as the most frequently exhibited leadership style (Mean=3.62; SD=1.280) followed by autocratic style (Mean=3.408,SD=0.830 and laissez-faire(Mean=3.37; SD=1.202)and employee performance (mean=3.40;SD1.102) from the descriptive analysis democratic and autocratic leadership style has moderate mean score whereas laissez fair leadership style low mean score and the employee performance is moderate mean score ,The result from multiple linear regressions showed democratic have positive significant effect while autocratic leadership style have negatives significant effect and laissez fair leadership style has positive insignificant effect in Bahir Dar textile share company employee performance. In order to enhance the productivity of their employees more significantly, the study finally recommend the company to execute democratic leadership style and others as per the situation.