EFFECTS OF LEADERSHIP STYLES ON ETHIOPIAN BANKING INDUSTRY PERFORMANCE | Journal of Economics and..

The study's goal was to look at the impact of leadership styles on organisational performance, with a focus on commercial banks in Jimma Town. The study causal kind of research and panel design were used to assess the amount of influence that leadership style may exert on the bank's performance in order to attain the objectives. The major data sources were leaders at various levels and their subordinate staff, while secondary data sources included yearly reports from individual banks and the National Bank of Ethiopia's audit financial report. The Multifactor Leadership Questionnaire was modified to collect questions about leadership styles. The acquired data was analysed using descriptive and inferential methods. Following that, the researcher used the Random Effect Model to analyse the situation. The strength of the link between independent and dependent variables. According to the findings, both transformational and transactional leadership have a significant beneficial impact on ROA. Thus, transformational leadership, which inspires and motivates employees to change the working environment by inspiring and motivating them to create, innovate, and go beyond what they think they can do; and transactional leadership, which rewards and recognises employees in exchange for the work they do while providing close direction and guidance, have a positive and significant impact on the bank's performance. According to the findings of the survey, bank executives should focus on becoming role models by taking the first step in doing what they talk about and remaining consistent in their actions.

Please see the link :- https://www.ikprress.org/index.php/JET/article/view/5126