Abstract:
The study was aim at assessing the effect of leadership styles on employee performance on Gondar
Town water supply sewerage service. The main objective of this study was to evaluate the effect of
leadership style (Transformational, Transactional, and Laissez-faire leadership styles) on
employees’ performance on Gondar Town water supply sewerage service. The study was used both
primary and secondary source of data. Primary source of data was gathered through questionnaires
and Secondary sources of data are from different published books, internet websites, journals,
previous research papers and official reports of the GTWSSS documents were reviewed. This study
was used to Stratified random sampling technique to select the individual respondents. The target
populations of this study are out of 386 select by strata 196 employees as the sample of the study.
The research approach was quantitative type of research where descriptive and explanatory
research design was used. The research was presented used to descriptive data analyses and
inferential data analysis and interprets the data by using SPSS version 27. The findings show that
transformational leadership style is the most practiced style in GTWSSS followed by the
transactional and laissez-faire leadership styles respectively. Overall, scores in transformational and
transactional leadership styles were found to be strongly correlated with employee performance.
However, laissez-faire had a moderate correlation with employee performance. The correlation
between overall leadership styles and employee performance was r=0.725 which is categorized in
the strong relationship. Employee Performance can be predicted by transformational and
transactional leadership styles has a positive and significant effect on the employee performance.
However, laissez-faire leadership was found to be insignificant effect on the employee performance.
Thus, it has been recommended that, advisable for leaders to encourage transformational leadership
by motivating creativity and innovative, paying special attention to each individual follower, to
formulate and implement effective reward and recognition systems who accomplish their
performance as expected or more than expectation to make them role model for others and to
increase employee performance and to avoid laissez-faire leadership style.
