The Role of Effective Leadership On Employee Performance (In Case of Dashen Bank in Jimma Branch)
The Role of Effective Leadership On Employee Performance (In Case of Dashen Bank in Jimma Branch)
The Role of Effective Leadership On Employee Performance (In Case of Dashen Bank in Jimma Branch)
JIMMA UNIVERSITY
DEPARTMENT OF MANAGEMENT
APRIL, 2014
JIMMA, ETHIOPIA
2
Acknowledgement
Glory to God the almighty and his mother the blessed Mary that I am through this researcher
paper and three years stay in this university. I extend my deepest gratitude to my advisor Mr.
Hayelom Nega (MBA) who has closely followed up the progress of this research paper with his
valuable corrections, comments and suggestions. Next I would like to thank my secretary Fitsum
Asrat for writing of this research paper and finally thanks for my family support financially.
Abstract
The main objective of this study was assessed the role of effective leadership on employee
performance in Jimma branch in Dashen bank. The research was descriptive type. To achieve
the objective of this study data would collect from both primary and secondary source through
different appropriate data collection techniques. The primary data was all employee of the
organization by using questioner and secondary data was relevant document and websites. The
target population was all employees of the organization they use in censes method. To analyze
and interpret the collect data the researcher was used table, pie-chart bar-graph percentage.
Table of content
Contents
Acknowledgement........................................................................................................................................I
Abstract.......................................................................................................................................................II
Table of content..........................................................................................................................................III
CHAPTER ONE..........................................................................................................................................1
INTRODUCTION...........................................................................................................................................1
CHAPTER TWO.........................................................................................................................................5
CHAPTER THREE...................................................................................................................................13
METHODOLOGY....................................................................................................................................13
CHAPTER FOUR.....................................................................................................................................14
CHAPTER FIVE.......................................................................................................................................22
5.1. Conclusion......................................................................................................................................22
5.2. Recommendation............................................................................................................................23
Reference...................................................................................................................................................24
CHAPTER ONE
INTRODUCTION
Leadership is centered in the communication between leaders and followers rather than one the
unique qualities of leader. Through of us relationship, leadership becomes a process of
collaborations that occurs between leaders and followers. Leaders affect and affected by
followers and both leader and followers are affected in turn by situation that surrounds them
(Peter G. Northous 2009).
Taking of leadership as a relationship suggest that leaders must include followers and their
interests in the process of leadership. A leaders need to be fully aware of the followers, interests,
ideas, position attitudes and motivations (Peter G. Northouse 2009).
An effective leader connect with people and understand the task to be done those skill required to
perform them and the environment in which people work. A leader to effective with people
requires a host of abilities such as helping employees to work as a term, motivating them to do
their best, promoting satisfying relationship among employee and responding to their request
(Peter G. Northouse 2009).
1.2. Statement of the problem
Successful leaders anticipate change vigorously exploit opportunities; motivate their followers to
higher level of productivity correct poor performance and lead the organization towards it is
objectives. Confronting inadequate performance by group members is challenging and
emotionally courage process that requires much of leaders. If is not easy, but it is necessary par
of leadership. Effective leaders are proactive and confronts problem when they occurs. In
problem situation leaders has to communicate with low performance group member and explain
their behavior hinder the group form meeting its goals (Lafasto and Latson, 2001).
Sometimes the obstacle facing people it is the task itself. When a task was unstructured,
ambiguous to complete task and performance appraisal system. Another factor affects employee
performance. Example, leadership style and leaders ability to lead employees and decision
making process affect employees performance in a given organizations. (peter G.Northouse
2009).
4. What are the problems related to leadership that affect performance of employees?
5. What are the problems related to leadership that affect performance of employee?
1.3. Objectives of the study
To explore the problem that affect performance of employees that was related to
leadership.
To forward the concerned bodies to look for the solution for the problems that arises in
the organizing during performance appraisal system.
It would serve as a base for other researchers who were interested to conduct research on
this area in depth.
Also it would enhance the researchers’ ability and to skill conduct further research and
researcher would again more experience.
Leadership is a skill: skilled leader are competent people who know the means and methods for
carrying out their responsibilities.
Leadership is behavior: leadership is also behavior, it is what leader do when there are in a
leadership role. The behavioral dimension is concerned with how leader act toward others in
various situation.
Leadership is a relationship: another and somewhat unusual, way to think about leadership is a
relationship from this perspective; leadership is centred in the communication between leaders
and followers rather than on the unique qualities of the leader.
3. Group members are encouraged to share ideas and opinions even though the leaders
retaining the final say over decisions.
2.3.2. Laissez-faire leadership style
Laissez-faire leadership style involves giving group member the freedom to make their own
decisions. Laissez-faire leadership, also known as delegate leadership style.
II. Less motivation of employees such as, not enough of monitory growth, little or no
appreciation, less work or too over loaded.
V. Luck of confidence
3. Providing guidance- leaders has not only supervised but also play guiding role for the
subordinates. Guidance here means instructing the subordinates the way they have to perform
these work effectively and efficiently.
4. Creating confidence- confidence is the important factor which can be achieved through
expressing the work effect to the subordinates explaining them clearly the role and giving the
guidelines to achieve the goals effectively.
5. Building morale- moral denotes willing cooperation of the employee towards their work and
getting them in to confidence and winning their trust. Leaders can be a morale booster by
achieving full cooperation, so that perform with best of their abilities as they work to achieve
goals.
6. Builds good work environment: helps in sound and stable growth therefore, human relation
should kept in to mind by a leader he should have personal contracts with employees and
should listen to their problem and solve them. He should treat employees on humanitarian
terms.
1. Energize your team:- instead of being the types of leaders who sucks the energy away from
threes; resolves to be the kind of leaders who strive to bring passion positive energy to the
work place very day.
2. There is more to life than work-great leader have deep reserves of the physical spiritual and
emotional energy and that energy is usually fuelled by a strong and supportive relationship
with the people they love, regulate exercise and a healthy life style and setting aside time for
reflection.
3. Put your people first- no organization is better than the people who run it. The fact that you
are in the people business. The business of herring. Training and managing people to deliver
the product or service you provide. If the leader you need to attend to you people with a
laser-life focus.
4. Act with integrity- in a time when news reports are filled with the stories of private and
public leaders who have acted in appropriately and have gone against the best interest of their
employee or constituents, showing you or employee that you value integrity can help
motivate them and create a sense of pride for you organization.
5. Be a great communicator- leadership is influencing other and this cannot be achieved without
effective communication.
6. Be a great listener- the most effective leaders are the one who take the time to listen not just
to their team members. Words but to the priceless hidden meaning beneath then, remember
that during that times and band, sometimes your employees just need someone to take to
communicate to them that you are always weighting with open ear.
7. Be problem solver:- post a sign above your office door that reads “Do not bring me the
problem. Bring me solution”. Then set above the task of guiding each person on your team
toward the goal of becoming a top notch problem solver during this crucial period.
8. Lead through experience and competence, not through title or position. Monitor your
employees, incur rage team, make partners out them and your organization is sure to benefit.
If you want to service the tough economy. That is exactly the kind of leadership you need for
your organization.
1. Authoritative:- in authoritative type of decision making the leader is the sole decision maker
which subordinates follow. The leader has all the information and expertise required to make
a quick decision. If it is important that the leader is a good decision maker as it is he was has
to own up to the consequence of this decision. Though effective, in case the leader is an
experienced individuals, it can harm the organization if the leader insists on an authorities
decision making even when there is expertise available within the team.
2. Facilitative:- in facilitate type of decision making, both the leader and his subordinates work
together to arrive at a decision. The subordinates should have the expertise as well as access
to the information required to make decision.
3. Consultation: as the name suggests, consultative decisions are made in consolation with the
subordinates. However, the fact remains that unlike in the facilitative decision making style,
in consultative decision making it is the leader who hold the decision making power. A wise
leader tends to consult his subordinates when he thinks that they have valuable expertise on
the situation at hand.
4. Declarative:- as per the trait that characterize effective leadership. Determined leaders are
aviary focused and attentive to task. They know where there are going and how they intend
to get there.
B. Confidence
Bienne confidence is another important trait of an effective leader confident people feel self
assured and believe they can accomplish their goals Ruther than feeling uncertain they feel
strong and secure about their position. They do not second guess themselves, but rather move
forward on project with a clear vision (Conger and Riggio 2007).
C. Charisma
Of all the trait related to effective leadership, charisma gets the most attention charisma reapers
to a leader special manage tic charm and appeal and can have a huge effect on the leadership
process charisma is a special personality characteristic that gives a leader the capacity to do
extraordinary thing (conger and riggio 2007)
D. Determination
Determination is another trait that characterize effective leadership. Determined leaders are
aviary focused and attentive to task. They know where there are going and how they intend to get
there.
Determination is the decision to get the job done it includes characteristics such as imitative
persistence and drive people with determination re willing to assert themselves, they are practice
and they have they capacity to persevere in the face of obstacles. Beine determined includes
showing dominance at times especially in situation where other need direction.
E. Sociability
Another important that for leaders is sociability it refers to a leaders capacity to establish
pleasant social relationship people want to sociable leaders with whom they can get along leaders
who sociability are friendly, outgoing courteous, fitful and diplomatic.
F. Integrity
Another most important, effective leaders have integrity characterizes leaders who possess. The
qualities of honesty and trustworthiness. People who adhere to a strong set of principle and take
responsibility for their action are exhibiting integrity leader with integrity inspire confidence in
other because they can be trusted to do what they say they are going to do. They are going to do.
They are Loral dependable and transparent (peter G. Northouse. 2009)
CHAPTER THREE
METHODOLOGY
This chapter focused on the presentation nasalization, and interptation of data collected through
questionnaires.
As it is identified in the first chapter the major objectives of the study is to the toile of effective
leadership on employees performance to achieve these objective information has been collected
from the employees of the barmy the researcher 38 questionnaire distributed to the employees.
From this 11 questionnaires become uncollect table.
Sourcquestionnarie2014
In the above pie chart ammonites total respondents 22(76 %) of respondents were mules and
7(24 %) of respondents were females this indicates that mules employees were dominated in the
organization
Based on the above graph 5 (17 %) of respondents are were between 40-50 and 6 (21 %) of
respondent Ares were between18-25 ace and 8 (27 %) of respondent ace were between 25-30
aces 10 (35 %)of respondent ace were between 30-40 but there is no employees employees
above the are of 50 general most employees are between 4
Based on the above Graphs the total respondents 15 (52 %) of respondent work etprionce is
above 4 hearses 9 (31 %)of respondent work etprionce is 2-4 rerun etprionce 5(17 %) of
respondents of work etprionce is 0-2 years genracur most of employees were above 4 rears.
No Item Respondents
Prefund Percentage
2 College Diploma 6 20 %
3 First degree 20 20 %
4 Second degree 3 10 %
Based on table 4.1 6 (20 %) of respondents were collage diploma and 20 (70 %) of respondents
were pints degree and 3 (10 %) of respondents were were second degree generally in the
organization third is no high school (erti$icute and most employees were first degree and
dominated in the organization
No Item Respondents
Required parentage
1 Married 22 76 %
2 Since 7 24 %
3 Divorced
According to table 4.2 22 (76 %) of respondents wince mutated and 7(24 %) of respondent were
single but their 15 no Divorced respondents.
Table 4.3
No Item Respondent
Total 24
According to table 4-3 19 (68 %) of respondents were say that leader control employees
performance by going encouruiment and 4 (14 %) of respondents were by reduces salary and 5
(15 %) of respondents were by decreasing luring opportune generally in the organization
controlemploorees performs by toward stratum rather than punishment.
Table 4.4
Yes 5 17 %
No 24 83 %
Total 29 100 %
Based on the above table Table 5 (17 %) of respondents were say that employees participated
equally but 24(83 %) of respondents were say that all employees not permute equally in decision
making process.
Table 4.5
No Item Respondents
A. motivating 21 72 %
B. creating confidence 5 17 %
C. creuting guidance 3 11 %
Total 24 100 %
Based on table 4.5 21 (72 %) of respondents were said that the importance of leadership in the
organization was meriting and 5 (17 %) of respondents were for creating confidence and 3 (11
%) of respondents said that for providing guidance. Generally leadership was in for tans of
employees of the organization for motivating employees.
Table 4.6
No Item Respondents
Total 24 100 %
Based on table 4.6 from the total respondents 8(28%) of respondents said that organization
follow participative leadership style and 3(10%) of respondents said that organization follow
laisfure leadership style. Finally 18(62%) of respondents said that organization follow altercative
leadership style generally organization follow altercative leadership style rather than
participative and leisure leadership style and laisfure leadership style was not follow the
organization.
Table 4.7
No Item Respondents
Yes 10 35 %
No 19 65 %
Total 29 100 %
Based on table 4.7 from the total respondents 10(35%) of respondents were said that there is
effective leader in your organization and 10965%) of respondents were said that there is no
effective leader in your organization. To sum up we cannot concluded the organization have
effective leader.
Table 4.8
No Item Respondents
Yes 25 86 %
No 4 14 %
Total 29 100 %
Based on table 4.8 from the total respondents 25(86%) of respondents were said that there have
positive relationship between effective leadership and employees performance but 4(14%) of
respondents were said that if have effective leader in one organization may or not may he good
employees performance.
Table 4.9
No Item Respondents
Yes 18 62 %
No 11 38 %
Total 29 100 %
As shown the above table from the total respondents 18(62%) of respondents were said that
leader motivate employees and 11(38%) of respondents were said tight leader not motivate
employees.
5.1. Conclusion
The major emphasis of this study was to investigate the role of effective leadership in empyees
performance Dashen Bank in Jimma branch. Effective leadership has great role of employees
moral and satisfaction and achieve organizational objectives.
Majority of respondent were within age group was 30-40 years and educational level was BA
degree and males employees were dominated in the organization.
Majority of respondents were work experience was fond above 4 years and from the to talk
respondents majority of respondents were married.
In leader control employees performance by giving encouragement.
In the decision making process aspects all employees of the organization were not equally
participation.
The study indicates that effective leadership has importance for employees and
organizational objectives.
From the study concluded that cannot say have full effective leadership in the organization
because many good leader quality has difficult for proactive in the organization.
The study indicatives that effective leadership and employees performance were have
positive relation in many different aspects.
Generally leader of the organization was motivate employees other than punishment.
To conduced the study that affect other different factors like self – understanding,
communication, leader experience and confidence those are the main factor of employees
performance.
5.2. Recommendation
The following recommendations were giving based on the problems of the bank finding and
beloved to solve the problems of the bank.
Employees of the bank should be participating in decision making process because any
employees idea is essential for organization growth.
Leader of the bank is should be follow participative leadership styles.
Leader of tough bank should be control performance of employees by motivation, not by
punishment some respondents were said that leader control employees performance by
reducing salary and decrease learning opportunity. But this kinds of employees performance
method is not good was.
Finally leader should be encourage research and development program because of minimize
organization problems research must be necessary. But most of employees of organization
not voluntary to fill the quaternaries.
Reference
1. Peter G. Northouse (2009) introduction to leadership concept,
3. Keith porter (2006) leadership and management for HR professionals, 3rd edition.