International Journal on Leadership

Dakito Alemu Kesto ¹, Gebrehiwet Aregawi ²

Affiliations
1 Head, Accounting & Finance Program Unit, School of Commerce, CoBE, Addis Ababa University, ET
2 Addis Ababa University, ET

Abstract

The study assessed the impact of leadership styles on employee performance at the Commercial Bank of Ethiopia. Studying the different leadership style practices (transformational, transactional, laissez-faire, and authoritative) and their effect on employee performance were the main objectives. Random sampling technique was used to select research participants. Around 149 structured questionnaires were distributed and 140 useable responses were collected. Multifactor leadership questionnaire (MLQ form 5X) was used to measure leadership style practices and customer satisfaction; team work and achieving organisational goal were used to measure employee performance. Descriptive statistics and scale analysis were used to analyse data using SPSS .23 and Microsoft Excel 2016. Pearson correlation analysis and regression analysis were used to predict the relationship between leadership styles and employee performance. The findings show that transactional leadership is the most practiced leadership style, followed by authoritative, transformational, and laissez-faire leadership styles, respectively. Transactional, transformational, and laissez-faire were found to be positively correlated with employee performance; on the other hand, authoritative leadership was found to be negatively correlated. The results recommend that leaders in CBE need to use a part of transactional, transformational, and laissez-faire leadership behaviours and not authoritative leadership behaviour.

Keywords

Transformational Leadership, Transactional Leadership, Authoritative Leadership, Laissez-Faire Leadership, Employee Performance

Full Text

     

Dakito Alemu Kesto ¹, Abdulkadir Wolela ²

Affiliations
1 Head, Accounting & Finance Program Unit, School of Commerce, CoBE, Addis Ababa University, NG
2 Addis Ababa University, NG

Abstract

As part of IFBs fast global growth, leaders in Ethiopia are responsible for remaining competent to run shariah-compliant products. In this regard, the research aimed at the assessment of leadership gaps and challenges in the implementation of IFB in Ethiopia. An exploratory research design was applied, with a mixed research approach. Sample units of 75 managers were conveniently drawn, and the content of the responses and documents was thoroughly analysed quantitatively and qualitatively. The findings show perception, knowledge, legal, and project management gaps and challenges: attention given by leaders to IFB was found to be minimal; leaders and employees lack IFB personality and appearance, which happens in some cases due to fear of the unknown tailored to the IFB. Sustainable training and development programmes were not planned properly. There is a lack of adoption of appropriate technology. The legal framework of IFB is viewed through the lens of a typical conventional banking context. Leadership, along with the hierarchy, should cultivate personalities that favour the success of IFB. Perception should be surveyed to rectify and leaders should be involved in IFB decision making to create an IFB-friendly atmosphere that reflects its values. It requires crafting rigorous and diverse training programmes and public awareness. A clear IFB institutional structure with appropriate technology adoption should be established. NBE should look for ways to adopt internationally accepted IFB standards, reinforce, and revisit the current NBE directives and legal framework.

Keywords

Interest-Free Banking, Financing, Leadership, Shariah, Perception, Knowledge Gap, Legal Framework, Project Management

Full Text