Insight : International Journal of social research
Vol. 4 No. 3 (2026): Insight : International Journal of Social Research

Effect of Leadership Style on Employee performance: A case of Dashen bank, Addis Ababa, Ethiopia

Waganeh Wassie Ayele (University of Tourism excellence and Business Administration, Lusaka, Zambia)
Sankaran Venkataramani (GrasdXs Institution, India)



Article Info

Publish Date
25 May 2026

Abstract

Leadership style is widely regarded as a decisive factor shaping employee performance in the banking sector, yet comparative empirical evidence on multiple leadership styles within a single Ethiopian bank remains limited. This study aimed to examine the effect of four leadership styles Autocratic, Democratic, Laissez-faire, and Transformational on employee performance at Dashen Bank, Addis Ababa. Both descriptive and explanatory designs were employed, utilizing a combination of quantitative and qualitative methods. From the total population of 1,851 employees, 329 respondents were selected through a combination of stratified and simple random sampling. Data came from structured questionnaires and were supported by a review of relevant literature. Multiple regression analysis produced a strong overall model (R = 0.989, R\u00b2 = 0.978), indicating that the four leadership styles jointly explained 97.8% of the variance in employee performance. The results showed that the democratic, transformational, and laissez-faire leadership styles are positively and significantly correlated with employee performance, but there was no significant effect for the autocratic leadership style. This implies that participative and inspirational leadership styles are more effective in increasing employee motivation, productivity, and engagement, while strict autocratic approaches do not have a significant impact on performance. Based on these findings, it is recommended that Dashen Bank's management strengthen leadership development programs for branch leaders in Addis Ababa, with emphasis on democratic and transformational leadership competencies, so as to sustain measurable improvements in employee performance across all branches.

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Journal Info

Abbrev

pi

Publisher

Subject

Humanities Computer Science & IT Earth & Planetary Sciences Economics, Econometrics & Finance Environmental Science

Description

Insight : International Journal of Social Research is a scientific journal in the form of research and can be accessed openly. This journal is published once a month by PT. Worldwide Research Publishing Insight : International Journal of Social Research provides a means for ongoing discussion of ...