Relationship Between Leadership Styles And Employee Performance : Case Study Selected Public And Private Commercial Banks

Abstract

The study aimed to investigate the effect of leadership styles on employee performance. Specifically, the study identified the leadership styles exhibited by managers in selected commercial banks in enhancing employee performance and specific behaviors that affected the performance of the employees. The study was conducted considering the effect of four major leadership style, namely, Autocratic leadership style, democratic leadership style, laissez-faire leadership style and paternalism leadership style on employee’s performance. The data for this study was obtained by administering questionnaire to employees in those commercial banks. The data received from the respondents was analyzed with the help of statistical software program SPSS_20. To test for the hypothesis, explanatory research design and Pearson Coefficient correlation analysis was conducted to examine whether the hypothesis was accepted or rejected. It was observed that positive correlation existed between a democratic leadership style exhibited by leaders in commercial banks and employee performance. autocratic leadership was practiced especially in offices large number of employee and work process, also the laissez-faire leadership was highly existent especially in offices with low number of workers and with low number of customer and paternalism was also practiced in those commercial banks even though it was to its lowest level and also in Conclusion chapter it was concluded that there were positive relation between democratic, laissez-faire and paternalistic leadership styles and employee performance while negative relation between autocratic leadership style and employee performance. Finally it was recommended that democratic leadership style enables to extract performance of employee so it was recommended to practice such a leadership style. Whereas, autocratic was not recommended because employee did not like this approach; and then both laissez-faire and paternalistic were recommended to be used lightly when highly in need. Key words: leadership styles, employee performance