EFFECTS OF LEADERSHIP STYLES ON EMPLOYEE PERFORMANCE A Case Study on Gondar Town Water Supply & Sewerage Service

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.