EFFECT OF LEADERSHIP STYLE ON EMPLOYESS PERFORMANCE AT HIJRA

BANK S.C

BY: EZEDIN MUHAMMMED

THESIS IS SUBMITTED TO SCHOOL OF GRADUATE STUDIES OF SELECT

UNIVERSITY FOR PARTIAL FULFILMENT OF THE REQUIREMENTS OF THE
DEGREE OF MASTER IN BUSINESS ADMINISTRATION (MBA)

June 2023
Addis Ababa, Ethiopia
DECLARATION

The undersigned, declare that this study entitled THE EFFECT OF LEADERSHIP
STYLE ON EMPLOYEES PERFORMANCE AT HIJRA BANL S.C
This research project is my original work and has not been presented for a degree in
any other university and that all sources of materials used for the study have been
properly acknowledge

Declared by:

Name: Ezadin Mohammed Haji

Signature
Date

Confirmed by:

Name:
Signature
Date
 DEDICATION

This study is dedicated to my family especially my mother for their Constant encouragement and
patience throughout continuous financial support academic struggle and my thus realizing my long

Cherished dream.
Acknowledgements

The completion of this study would have been impossible without the material and

Moral support from various people. It is my obligation therefore to extend my gratitude to them.

First, I thank the Almighty God for giving me good health, and guiding me through the entire

course. I am greatly indebted to ………………..who was my adviser for his effective supervision,

dedication, availability and professional advice. I extend my gratitude to my lecturers who taught

me in the MBA programmer, therefore enriching my research with knowledge. The University of

Select University who were my respondents,

Deserve my appreciation for their support and willingness for providing the required

Information during my study. My appreciation finally goes to my classmates, with whom I

weathered through the storms, giving each other encouragement and for their Positive criticism
 Abstract:

The aim of this study was to investigate the impact of leadership style on employee performance at Hijra Bank S.C.
The study was prompted by the recognition that effective leadership is an important determinant of organizational
success, and that the choice of leadership style can have a significant impact on employee performance. The study
used a mixed-method research approach, combining both qualitative and quantitative data collection and analysis
methods.
The study found that the leadership style practiced at Hijra Bank S.C. is a combination of transformational,
transactional, and laissez-faire styles. While employees generally perceive leadership to be effective, there were
some concerns about communication, empowerment, and the implementation of performance improvement systems.
The study identified a positive relationship between leadership style and employee performance, with
transformational leadership style having the highest impact on employee performance.
The study recommends that Hijra Bank S.C. should adopt a more transformational leadership style to improve
employee performance. The bank should also improve communication, employee empowerment, and performance
improvement systems.
 Acknowledgements................................................................................................I

Abstract........................................................................................................................II
CHAPTER ONE INTRODUCTION................................................................................................................1
1.1 Background of the Study........................................................................................................... 1
1.2 Relationship between Leadership style and Employee Performance........................................2
1.3 Statement of the Problem.......................................................................................................... 3
1.4 Research Question..................................................................................................................... 5
1.5 Research Objective.................................................................................................................... 5
1.5.1 General objective.................................................................................................................5
1.5.2 Specific objective.................................................................................................................5
1.6 Significance of the study........................................................................................................... 5
1.7 Scope of the study......................................................................................................................5
1.8 Organization of the study.......................................................................................................... 6
CHAPTER TWO LITERATURE REVIEW......................................................................................................7

2.1 Leadership..................................................................................................................................7
2. 2. Type Leadership style..............................................................................................................8
2.2.1 Laissez-faire Style................................................................................................................8
2.2.2 Transactional Style...............................................................................................................8
2.2.3 Transformational Leadership................................................................................................9
2.3 Leadership Theories.................................................................................................................11
2.3.1 Great-Man Theory..............................................................................................................11
2.3.2 Trait Theory.......................................................................................................................11

2.2.3 Contingency Theories (Situational)...................................................................................12

2.3.4 Style and Behaviour Theory..............................................................................................13
2.3.5 Transactional Theory.........................................................................................................13
2.3.6. Transformational Theory..................................................................................................14

2.3.7 Effect of leadership style on employee’s performance in banking industry................................16

2.4 Empirical Literature.................................................................................................................17

CHAPTER THREE RESEARCH METHODOLOGY....................................................................................23

3.1 RESEARCH APPROCH AND DESIGN................................................................................23

3.1.1 Research Design.................................................................................................................23
3.1.2 Study Area..........................................................................................................................23
3.2Data Sources and Data Collection Method...............................................................................23
3.2.1 Data Sources......................................................................................................................23
3.2.3 Instrument Design Measurement.....................................................................................23
3.3 Sample Size and Sampling Technique.....................................................................................24
3.3.1 Study Population................................................................................................................24
3.3.2 Sample Size........................................................................................................................24
3.4 Sampling Technique................................................................................................................ 24
CHAPTER FOUR DATA PRSENTATION AND ANLYSES…….……………………………..…25

4.1 Demographic Background of the Respondents 25

4.2 Leadership Approach: Laissez Faire Style.................................................................................28

4.3 Leadership Approach: Transformational Leadership…..............................................................30

4.4 Leadership Style: Transactional leadership Style......................................................................32

4.5 Employee Job Performance in view of Customer satisfaction................................................ 34
4.6 Leadership Approach employed in achieve organization goal................................................35
4.7 Leadership style and Team work.............................................................................................36
4.8 Summary of Mean and Standard Deviation of Leadership Style and Work Performance …….37
4.9 Correlation Analysis................................................................................................................ 38

4.10 Regression Analysis...............................................................................................................40

CHAPTER FIVE SUMMRY, CONCLUSIONS, RECOMMENDATION.....................................................45

5.1 SUMMERY0F FINDINGS.........................................................................................................45

5.2 Conclusion............................................................................................................................... 46
5.3 RECOMMENDATION...............................................................................................................47
REFERNCES..................................................................................................................................................48
CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Effective leadership is an essential factor for organizational success. Leadership style is a critical aspect of
leadership that can significantly influence employee performance in the banking sector. Hijra Bank S.C is one of the
leading banks in Ethiopia, and it is important to investigate the impact of leadership style on employee performance
at the bank. This study aims to identify the existing leadership style at Hijra Bank S.C, examine employees'
perception regarding leadership effectiveness, evaluate the relationship between leadership style and employee
performance, and assess the effect of leadership style on employee performance. The study is motivated by the need
to provide insights into how leadership style can be used to enhance employee performance at the bank.
‘Leadership is important for an organization to function efficiently and effectively. Leadership and job satisfaction
play an important role in creating and maintaining the effectiveness of an organization stated that the negative
effects Associated with a lack of employee commitment include Absenteeism and turnover’ (Bennett and Durkin,
2000)

The concept of leadership is defined, according to (Hersey and Blanchard 1979), “as the process of influencing the
activities of an individual or a group in efforts toward goal accomplishment” For (Senge1990), leadership is
associated with stimulants and incentives that motivate people to reach common objectives.

According to (Yukl2005), numerous studies on the theory of leadership can be summarized into five broad theories,
namely, trait, behavioural, contingency or situational approach, contemporary integrative approach, and power and
influence approach. Early studies on leadership (frequently categorized as „trait‟ studies on leadership)
concentrated on identifying the personality traits which characterized successful leaders (Mahoney et al., 1960).

Leadership style is the combination of attitude and behaviour of a leader, which leads to certain patterns in dealing
with the followers (Dubrin 2004). It is the result of the philosophy, personality and experience of the leader. There
are several leadership styles such as: autocratic, bureaucratic, charismatic, democratic, participative, situational,
transformational, and transactional and laissez faire leadership (Mosadeghrad, 2003a). Leadership style has been
the deciding factor of more than one facet of employee behaviour in organizations. The most common styles are the
Laissez-Faire, Authoritarian, and Democratic (Bass, 1990).

It is the responsibility of the individual supervisor to find the most appropriate style or combination of styles that
works best for them. Even though one may find comfort in a specific style, as a supervisor they must demonstrate
the ability to change their approach based on the situation as well as display openness to utilizing various other
techniques Laissez-faire leadership style places no emphasis on any of the bases of power and is often referred to as
the “hands-off” style. This approach is one in which the supervisor rejects control and allows the employees to
have authority over decision making and group processes with minimal direction (Bass, 1990).
1.2. Relationship between Leadership style and Employee Performance

Leadership style is an important determinant of employee performance. The reactions of employees to their leaders
was usually depend on the characteristics of the employees as well as on the characteristics of the leaders
(Wexley&Yukl 1984). Performance effectiveness derives from human aspirations and human values that are
invisible roots of organizational values, they determine the rational for which organizations exist. The task of a
leader in the organization in this case was too nurture the roots of organizational values, which consists of nothing
but a basic human aspiration, that is the way to give Maurik (2001). The essence here is that corporate leadership is
the methodology to be used in according responsibility however the challenge that lies in this aspect is that, only
giving power to the subordinates may not be wise enough since delegation, empowerment and specialization are
calculated risks. Therefore, in the perspective of this study such elements as what types of situations require the use
of corporate approach were not satisfactorily explored hence the necessitation of this study.
Leadership is important for all organizations to achieve goals since leadership is a key factor for improving the
performance of the organization, the success or failure of an organization depends on the effectiveness of
leadership at all levels. Researchers have stated that leadership is an ability to influence attitudes, beliefs, and
abilities of employees to achieve organizational goals. However, over the years, leadership has been had a major
topic between the researchers but dramatic social changes that have occurred over the past two decades makes the
issue of leadership and its relationship with other organizational factors more remarkable (Duckett & Macfarlane,
2003). Transformational leadership style in new ideas is known as one of the effectiveness leadership style. The
style has been composed of four dimensions of ideals influence, inspirational motivation, intellectual stimulation
and individualized consideration (Storey, 2004). In fact, all of transformational leadership behaviour
(individualized consideration, inspiration, intellectual stimulation and charisma) that provide high-performance and
active leadership has positive and high impact on employee satisfaction and improvement of organization situation
(Hoy & Miskel, 2008).
 Hijra Bank was established on January 16, 2022 in the wake of the long-awaited government’s approval of full-
fledged interest-free banking in Ethiopia. A large part of the Muslim community in Ethiopia was financially
excluded for decades due to the absence of Sharia-compliant banks in the country. Hijra Bank was founded to
respond to this age-old appeal of this community. Inclusive since its very inception, Hijra bank has demonstrated
its strict adherence to its core values of inclusion, fairness, and diversity in all its operations. Unlike most financial
institutions in Ethiopia, which started with a small group of elites from a specific geographical area, Hijra has set
off with a solid foundation of 9,000+ small farmers, pastoralists, unbanked communities, peasants, and small
traders from all parts of the country. The bank's inclusiveness and diversity philosophy is also reflected in branch
expansion, resource allocation, and staff recruitment.

Within a year of operation, Hijra Bank has built a strong reputation for its unwavering subservience to Sharia
principles. All the bank’s financial products and services are regulated by Islamic Banking principles. They are
periodically reviewed and approved by the Sharia Advisory Committee, consisting 7 members of Sheiks, imams,
and respected religious scholars. Furthermore, the bank’s Core Banking System is acquired from the first and only
AAOIFI-certified Sharia-compliant software solutions: iMAL. With its vision to be ‘the premier partner in Ethical
banking’, Hijra Bank is expanding into more and more territories through its 45 branches, making it one of the
fastest-growing banks in the country. The bank has also leveraged digital technologies with Mobile and Internet
banking to enhance financial inclusion to more than 185,000 customers across the nation. In addition to its regular
banking operations, Hijra Bank is taking the leading role in the promotion of Islamic banking in the country
through media campaigns and community engagements.

1.3. Statement of the Problem

Many literatures emphasise that leadership behaviours can simplify the improvement of both leadership capability
and performance of employees. This eventually contributes to enhancing organizational performance.
Employee performance includes executing defined duties, meeting deadlines, employee competency, and
effectiveness and efficiency in doing work. Various organizations need strong leadership styles that stimulate the
employee performance. Some organizations such as manufacture factory face the problems: poor innovation, low
productivity, inability to meet performance targets. This problem happened due to lack of strategic interventions of
specific leadership styles to the particular Situations were predicted as the problem at hand. This problem was
continuously affecting employee performance. That is why study investigates the best one leadership style that
stimulates performance of employees. It is believed that an effective organization rooted from the propellers or on
the business leaders. The idea of effective leadership is also adopted in the world of technology. The employees
 also perceived that there is a need of a leader who should not only have to lead people but also be effective. So,
they need an effective leader who can lead the people toward the changes and performance improvement.
Leadership behaviour in an organization is one of the factors that play significant role in enhancing the interest and
commitment of the individuals in the organization (Obiruwu et al., 2011).Leadership style is especially important to
motivate employees’ commitment to fulfil organizational objectives and increase job performance, (Riaz, Akram,
&Ijaz, 2011; Chi, Lan, &Dorjgotov, 2012). Moreover, according to research study conducted by (HueryrenYeh
2012), leadership style is positively related to organizational commitment and job performance.
All branches of Hijra bank operate in a similar manner with respect to policies and practices; their performance
varies from branch to branch. When the performance evaluation is observed, some branches of the bank achieved
their goals at the end of the year while the remaining did not. As per the information obtained from strategic
planning office of the bank in 2014/15 budget year, from branches which are found in Addis Ababa city, only 100
(nearly 50%) branches achieved their goal and the remaining 100 (39%) branches did not meet their annual plan
goals. This result clearly shows there is a great difference in performance among branches of the Bank and no
previous study has been conducted on the effect of leadership style on employee’s performance, even if there are
many factors, which have an impact to employee performance such as motivation, employee satisfaction,
engagement, organizational culture etc. And the employee performance accumulation was lead to branches
performance.
What pursues an answer to the question; which leadership style really influences Hijra bank employee’s
performance? Moreover, this study was fills the contentious gaps of different research studies that have been
conducted on leadership behaviours with respect to employee performance. Consequently, it contributes
meaningfully to the body of growing literature and knowledge in this area of study in bank.

1.4. Research Question

 What kind of leadership style is currently practiced at Hijra bank S.C?
 How do employees perceive the effectiveness of leadership at Hijra bank?
 What employees’ performance improvement system is in please at Hijra bank?
 What are the effects of leadership styles on employee performance?

1.5. Research Objective

1.5.1. General objective
The general objective of this s study is to investigate the main effects of leadership styles on performance of banks
in case of Hijra bank S.C.

1.5.2. Specific objective

Specifically, the aim of this study to:
 To identify the existing leadership style in Hijra bank of Ethiopia.
 To examine the employee’s perception towards the existing leadership style of Hijra bank.
 To examine the relationship between the leadership style and employee performance.
 To assess the effect of leadership style on employees’ performance.
1.6. Significance of the study

The study can be significant at least for the following two reasons. First, as it has been discussed in the statement of
problem part, empirical research few in number, the effect of leadership style on employee performance in Ethiopia
banking industry. Therefore, the findings of this study can have a great contribution to the body of knowledge by
identifying how leadership style affects the employee’ performance of banks in the case of Hijra bank S.C. Second,
it can serve as a base for other researchers who want to do a further research on this topic.

1.7. Scope of the study

To address the problem under consideration, this research was delimited to the effect of leadership style on
employee performance at Hijra bank S.C. the study focuses on the internal function of the organization which is
leadership, and its effect on employees’ performance. To measure the effect of leadership style the researcher was
implement a regression model, and in order to identify the relationship the researcher was implement correlation
using primary data. The geographic area in which the study was focus on is the banking industry, specifically Hijra
bank S.C. and the respondents are all in Addis Ababa Ethiopia. The research was conducted on the Headquarter of
the bank where the managerial and operational staff is combined.

1.8. Organization of the study

This paper consists of five chapters of which the first chapter is devoted to introduction to the
subject with the relevance and backgrounds of study the research questions, problem statement,
objectives, scope and the limitations. Next, the literature review where the researcher analyzes the
existing literature about the subject and develops a conceptual framework for the study. The third
chapter comprises the research methodology the methods used to achieve the research objectives.
The fourth chapter will deal with data analysis and interpretation based on the data gathered and
finally the firth chapter that brings conclusion and recommendations of the study.
CHAPTER TWO
LITERATURE REVIEW

2.1. Leadership

Leadership is the ability to inspire, influence, and guide followers towards achieving organizational goals. There are
three primary leadership styles, including transformational, transactional, and laissez-faire. Transformational
leadership involves empowering followers to achieve their potential and creating a vision for the future.
Transactional leadership focuses on reward-based systems and punishment for non-performance. Laissez-faire
leadership allows followers to take control of their responsibilities. Different leadership theories, including the
contingency theory, situational theory, and path-goal theory, have been proposed to explain how leadership style
influences employee performance. Empirical literature indicates that effective leadership leads to increased
employee motivation, commitment, job satisfaction, and performance.

The concept of leadership is defined, according to (Hersey and Blanchard 1979), “as the process of influencing the
activities of an individual or a group in efforts toward goal accomplishment”. For (Senge1990), leadership is
associated with stimulants and incentives that motivate people to reach common objectives. (Hersey et al. (2001),
states that the essence of leadership involves achieving objectives with and through people, (Weihrich and Koontz
1994) define leadership as the process of influencing people so that they make an effort by their own was and
enthusiasm towards obtaining the group’s goals. According to (Kotter1990), without leadership, the probability of
mistakes occurring increases and the opportunities for success become more and more reduced. For these same
authors, and in this context, leadership allows cooperation, diminishes conflicts, contributes to creativity and has an
integrating role, as it keeps people united even when not physically so.

According to (Yukl 2005), numerous studies on the theory of leadership can be summarized into five broad
theories, namely, trait, behavioural, contingency or situational approach, contemporary integrative approach, and
power and influence approach. The trait approach refers to inherent personal characteristics of the leaders where
original trait conception of leadership was founded on the major assumption that leaders possessed universal
characteristics that made them leaders; those traits were seen to be relatively fixed, inborn, and applicable in
various situations.

In this way, leadership, together with stimulants and incentives, promotes peoples motivation towards achieving
common goals, having a relevant role in the processes of forming, transmitting and changing organizational culture
(Senge, 1990). It has been a topic of interest among academicians and practitioner working in the area of leadership
(Cannella& Rowe, 1995; Giambatista, 2004; Rowe et al., 2005). Perhaps the most prominent reason for this interest
is the widespread belief that leadership can affect the performance of organizations (Rowe et al., 2005 p,
197; Ulgen&Mırze 2006).

Critical organizational outcomes, such as satisfaction, organizational performance, group performance, and
commitment, have been associated with these leadership styles (Kirkpatrick&Locke, 1996). Leadership has
probably been written about, formally researched and informally discussed more than any other single topic in the
management and organization literature (Daft, 1998; Luthans, 1995). Review of leadership research shows that,
there are almost as many different definitions of leadership as there are people who have tried to define it. (Koçel,
2005; Northouse, 2004; Stogdill, 1974). Despite all this attention given to leadership, there is still considerable
controversy. Some organizational behaviour theorists do not even recognize leadership. (Luthans, 1995) and in the
past 50 years, there have been as many as 65 different classification systems developed to define the dimensions of
leadership (Fleishman et al, 1991).

2. 2. Type Leadership style

2.2.1 Laissez-faire Style
The laissez-faire leader gives no continuous feedback or supervision because the employees are highly experienced
and need little supervision to obtain the expected outcome. This type of style is also associated with leaders that do
not lead at all, failing in supervising team members, resulting in lack of control and higher costs, bad service or
failure to meet deadlines. In government, this is what the type of leadership, which may drive to anarchy (Lewin,
Lippitt, & White, 1939). Laissez Faire Leaders give group members the freedom to make their own decision in any
process as leaders play no leadership role to subordinates (Griffin, 1993). Laissez- Faire Leaders need the less of
management authority, leave responsibility to subordinates to decide goals, plans, and programs by their own
within the source of possibility. In other words, laissez faire leaders do not take the responsibility and give
subordinates the authority to use (Eren, 2010). Laissez-Faire Leaders do not form any control mechanism on group
members, and they are completely free to take any decision (Vogt et. al., 2004). An avoidant leader may either not
intervene in the work affairs of subordinates or may completely avoid responsibilities as a superior and is unlikely
to put in effort to build a relationship with them. Laissez-faire style is associated with dissatisfaction,
unproductiveness and ineffectiveness (Deluga, 1992).
2.2.2 Transactional Style
Transactional leaders focus mainly on the physical and the security needs of subordinates. The relationship that
evolves between the leader and the follower is based on bargaining exchange or reward systems (Bass, 1985; Bass
and Avolio, 1993). Transactional leadership “Using a carrot or a stick, transactional leadership is usually
characterized as instrumental in followers‟ goal attainment” (Bass, 1997). There are three components in
transactional leadership – Contingent reward, whereby subordinates‟ performance is associated with contingent
rewards or exchange relationship Active Management by exception, whereby leaders monitor followers‟
performance and take corrective action if deviations occur to ensure outcomes achieved; Passive Management by
exception, whereby leaders fail to intervene until problems become serious (Bass, 1997).

The transactional leader is given power to perform certain tasks and reward or punish for a team’s performance. It
gives the opportunity to the manager to lead the group and the group agrees to follow his lead to accomplish a
predetermined goal in exchange for something else. Power is given to the leader to evaluate, correct and train
subordinates when productivity is not up to the desired level and reward effectiveness when expected outcome is
reached (Burns, 1978). According to (Bass 1985), transactional leaders lead to employees by rewarding. The
desired performance is based on when a leader explains what are aims, goals, results, and rewards to employees
who achieved in their work.

Transactional Leadership is consisted of contingent reward, active management by exception, and passive
management by exception. Contingent reward leadership may put forth a result of developmental plan, may explain
why they desire to success, when they get the results, they wasreward them for good performance ( Sosik and
Godshalk, 2000). Employ fulfil these requirements are explained explicitly (Pillai et.al, 1999). Transactional
leaders choose the way of leading effective ongoing process. Leaders, who adopt this approach, especially reward
employees with money, status and promotion while they pay less attention to creative and innovative acts (Eren,
2010).

2.2.3 Transformational Leadership

Transformational leadership was developed by (Bass in 1985 )on account of stating behaviour and characteristic to
provide organizational change and stability while transformational leadership is comprised of idealized influence,
individual consideration, intellectual stimulation, and inspirational motivation (Bass, 1990). Transformational
leaders try to persuade followers that they are powerful enough to coping with individual needs and personal
developments, which turn out to establish close relationship with employees. Leaders pay feel more special,
motivated and encouraged. By this way, there is an enhancing effect on the success of the employees (Greenberg &
Baron, 2000). Transformational leadership is also explained for displaying higher to come to terms with team
mission and goals and also the continuity of this process. Leaders encourage employees to see beyond what they
already have (Bass, 1990).

The transformation leader motivates its team to be effective and efficient. Communication is the base for goal
achievement focusing the group in the final desired outcome or goal attainment. This leader is highly visible and
uses chain of command to get the job done. Transformational leaders focus on the big picture, needing to be
surrounded by people who take care of the details. The leader is always looking for ideas that move the
organization to reach the company’s vision (Burns, 1978). This type of leader sets the criteria for their workers
according to previously defined requirements. Performance reviews are the most common way to judge employee
performance. Transactional, or managerial, leaders work best with employees who know their jobs and are
motivated by the reward-penalty system. The status quo of an organization is maintained through transactional
leadership. (James Mac Gregor Burns 1978) first introduced the concept of transforming leadership in his
descriptive research on political leaders, but this term is now used in organizational psychology as well. According
to Burns, transforming leadership is a process in which "leaders and followers help each other to advance to a
higher level of morale and motivation". Burns related to the difficulty in differentiation between management and
leadership and claimed that the differences are in characteristics and behaviours. He established two concepts:
"transforming leadership" and "transactional leadership". According to Burns, the transforming approach creates
significant change in the life of people and organizations. It redesigns perceptions and values, and changes
expectations and aspirations of employees. Unlike in the transactional approach, it is not based on a "give and take"
relationship, but on the leader's personality, traits and ability to make a change through example, articulation of an
energizing vision and challenging goals. Transforming leaders are idealized in the sense that they are a moral
exemplar of working towards the benefit of the team, organization and/or community. Burns theorized that
transforming and transactional leadership was mutually exclusive styles. Transactional leaders usually do not strive
for cultural change in the organization but they work in the existing culture while transformational leaders can try
to change organizational culture.
2.3. Leadership Theories
2.3.1 Great-Man Theory
The effort toward explorations for common traits of leadership is protracted over centuries as most cultures need
heroes to define their successes and to justify their failures. In (1847,
 Thomas Carlyle) stated in the best interests of the heroes “universal history, the history of what man has
accomplished in this world, is at the bottom of the history of the great men who have worked here”.
Carlyle claimed in his “great man theory” that leaders are born and that only those men who are endowed with
heroic potentials could ever become the leaders. He opined great men were born, not made. An American
philosopher, Sidney Hook, further expanded Carlyle perspective highlighting the impact which could be made by
the eventful man vs. the event-making man (Dobbins &Platz, 1986).
He proposed that the eventful man remained complex in a historic situation, but did not really determine its course.
On the other hand, he maintained that the actions of the event-making man influenced the Course of events, which
could have been much different, had he not been involved in the process. The event making man’s role based on
“the consequences of outstanding capacities of intelligence was and character rather than the actions of distinction”.
However, subsequent events unfolded that this concept of leadership was morally flawed, as was the case with
Hitler, Napoleon, and the like, thereby challenging the credibility of the Great Man theory. These great men
became irrelevant and consequently growth of the organizations, stifled (MacGregor, 2003). “The passing years
have given the coup de grace to another force the great man who with Brilliance and farsightedness could preside
with dictatorial powers as the head of a growing organization but in the process retarded democratization”.
Leadership theory then progressed from dogma that leaders are born or are destined by nature to be in their role at a
particular time to a reflection of certain traits that envisage a potential for leadership.

2.3.2 Trait Theory

The early theorists opined that born leaders were endowed with certain physical traits and personality
characteristics, which distinguished them from non-leaders. Trait theories ignored the assumptions about whether
leadership traits were genetic or acquired. Jenkins identified two traits; emergent traits (those which are heavily
dependent upon heredity) as height, intelligence, attractiveness, and self-confidence and effectiveness traits (based
on experience or learning), including charisma, as fundamental component of leadership (Ekvall&Arvonen, 1991).

Max Weber termed charisma as “the greatest revolutionary force, capable of producing a completely new
orientation through followers and complete personal devotion to leaders they perceived as endowed with almost
magical supernatural, superhuman qualities and powers “This initial focus on intellectual, physical and personality
traits that distinguished non-leaders from leaders portended a research that maintained that only Min or variances
exist between followers and leaders (Burns, 2003). The failure in detecting the traits, which every single effective
leader had in common, resulted in development of trait theory, as an inaccessible component, falling into disfavour.
In the late 1940s, scholars studied the traits of military and non-military leaders respectively and exposed the
significance of certain traits developing at certain times.

2.2.3 Contingency Theories (Situational)

The theories of contingency recommend that no leadership style is precise as a stand-alone as the leadership style
used is reliant upon the factors such as the quality, situation of the followers or a number of other variables.
“According to this theory, there is no single right way to lead because the internal and external dimensions of the
environment require the leader to adapt to that particular situation”. In most cases, leaders do not change only the
dynamics and environment, employees within the organization change. In a common sense, the theories of
contingency are a category of behavioural theory that challenges that there is no one finest way of
Leading/organizing and that the style of leadership that is operative in some circumstances may not be effective in
others (Greenleaf, 1977).

Contingency theorists assumed that the leader was the focus of leader-subordinate relationship; situational theorists
opined that the subordinates played a pivotal role in defining the relationship. However, the situational leadership
stays to emphasis mostly upon the leader; it creates the significance of the focus into group dynamic. These studies
of the relationships between groups and their leaders have led to some of our modern theories of group dynamics
and leadership”. The theory of situational leadership proposes that style of leadership should be accorded with the
maturity of the subordinates (Bass, 1997). “The situational leadership model, first introduced in 1969, theorized
that there was no unsurpassed way to lead and those leaders, to be effective, must be able to adapt to the situation
and transform their leadership style between task-oriented and relationship oriented
2.3.4 Style and Behaviour Theory
The style theory acknowledges the significance of certain necessary leadership skills that serve as enabler for a
leader who performs an act while drawing its parallel with previous capacity of the leader, prior to that particular
act while suggesting that each individual has a distinct style of leadership with which he/she feels most contented.
Like one that does not fit all heads, similarly one style cannot be effective in all situations (Yukl1989) introduced
three different leadership styles, The employees serving with democratic leaders displayed high degree of
satisfaction, creativity, and motivation; working with great enthusiasm and energy irrespective of the presence or
absence of the leader; maintaining better connections with the leader, in terms of productivity Whereas, autocratic
leaders mainly focused on greater quantity of output. Laissez faire leadership was only considered relevant while
leading a team of highly skilled and motivated people who excellent track-record, in the past. (Feidler& House
1994) identified two additional leadership styles focusing effectiveness of the leadership. These researchers opined
that consideration (concern for people and relationship behaviours) and commencing structure (concern for
production and task behaviours) were very vital variables.

The consideration is referred to the amount of confidence and rapport, a leader engenders in his subordinates.
Whereas, initiating structure, on the other hand, reflects the extent, to which the leader structures, directs and
defines his/her own and the subordinates‟ roles as they have the participatory role toward organizational
performance, profit and accomplishment of the mission. Different researchers proposed that three types of leaders,
they were; autocratic, democratic and laissez-faire. Without involving subordinates, the autocratic leader makes
decisions, laissez-faire leader lets subordinates make the decision and hence takes no real leadership role other than
assuming the position and the democratic leader accesses his subordinates then takes his decision. “He further
assumed that all leaders could fit into one of these three categories”.

2.3.5 Transactional Theory

The leadership theories, by the late 1970s and early 1980s, activated to diverge from the specific perspectives of the
leader, leadership context and the follower and toward practices that concentrated further on the exchanges between
the followers and leaders. The transactional leadership was described as that in which leader-follower associations
were grounded upon a series of agreements between followers and leaders (House & Shamir, 1993).
The transactional theory was “based on reciprocity where leaders not only influence followers but are under their
influence as well”. Some studies revealed that transactional leadership show a discrepancy with regard to the level
of leaders‟ action and the nature of the relations with the followers.
Bass and (Avolio1994) observed transactional leadership “as a type of contingent-reward leadership that had active
and positive exchange between leaders and followers whereby followers were rewarded or recognized for
accomplishing agreed upon objectives “From the leader, these rewards might implicate gratitude for merit
increases, bonuses and work achievement. For good work, positive support could be exchanged, merit pay for
promotions, increased performance and cooperation for collegiality. The leaders could instead focus on errors,
avoid responses and delay decisions. This attitude is stated as the “management-by-exception” and could be
categorized as passive or active transactions. The difference between these two types of transactions is predicated
on the timing of the leaders‟ involvement. In the active form, the leader continuously monitors performance and
attempts to intervene proactively (Avolio& Bass, 1997).

2.3.6. Transformational Theory

Transformational leadership distinguishes itself from the rest of the previous and contemporary theories, based on
its position to a greater good as it entails involvement of the followers in processes or activities related to personal
factor towards the organization and a course that was yield certain superior social dividend. The transformational
leaders raise the motivation and morality of both the follower and the leader (House & Shamir, 1993). It is
considered that the transformational leaders “engage in interactions with followers based on common values,
beliefs and goals”. This affects the performance leading to the attainment of goal. As per Bass, transformational
leader, “attempts to induce followers to reorder their needs by transcending self-interests and strive for higher order
needs". This theory conforms the (Maslow 1954) higher order needs theory transformational leadership is a course
that changes and approach targets on beliefs, values and attitudes that enlighten leaders‟ practices and the capacity
to lead change.

The literature suggests that followers and leaders set aside personal interests for the benefit of the group the leader
is then asked to focus on followers’ needs and input in order to transform everyone into a leader by empowering
and motivating them (House &Aditya, 1997). Emphasis from the previously defined leadership theories, the ethical
extents of leadership further differentiates the transformational leadership. The transformational leaders are
considered by their capability to identify the need for change, gain the agreement and commitment of others, create
a vision that guides change and embed the change (MacGregor Bums, 2003). These types of leaders treat
subordinates individually and pursue to develop their consciousness, morals and skills by providing significance to
their work and challenge. These leaders produce an appearance of convincing and encouraged vision of the future.
They are “visionary leaders who seek to appeal to their followers‟ better nature and move them toward higher and
more universal needs this approach views leadership Effectiveness as dependent upon a match between leadership
style and the situation. It also focuses on the degree to which the situation gives control and influence to the
leaders. The primary thrust was that the qualities of leaders differentiate in various situations and so were those
qualities were perhaps appropriate to a particular task and interpersonal context.

Early on, leadership definitions had the tendency to view the leader as the centre or the focus of a group activity.
The leader restructures the problems, offers solutions to the problems, establishes priorities and initiates
developmental operations (Bass B, 1990). Leadership was associated with strength of personality (Bass 1990;
Bowden, 1926). A leader was seen as a person with many popular traits of personality and character (Bass, 1990;
Bingham, 1927). The current descriptions of leadership no longer regard only individual characteristics or
differences (Avolio 2007; Yukl 2006).
In (Bass’s 1998) current definition, leadership is an interaction between one or more members of a group. In
another more recent definition, leadership is a relationship between leaders and followers where they influence
each other and they intend real changes and outcomes that reflect their shared purposes (Daft, 2005).
According to (Northouse2007) leadership as a process means that, as mentioned earlier, it is not a characteristic
someone is born with, it is an interaction between leaders and their 9 followers. The leaders influence and are
influenced by their followers Leadership is available to everyone; it is not limited to the person in power
(Northouse, 2007).
“Leadership is a process whereby an individual influences a group of individuals to achieve common goals
(Northouse, 2007). Leadership style is the combination of attitude and behaviour of a leader, which leads to certain
patterns in dealing with the followers (Dubrin 2004). It is the result of the philosophy, personality and experience
of the leader. There are several leadership styles such as: autocratic, bureaucratic, charismatic, democratic,
participative, situational, transformational, and transactional and laissez faire leadership (Mosadeghrad, 2003a).
Leadership style has been the deciding factor of more than one facet of employee behaviour in organizations.
One of the most prominent formats for classifying and studying leadership includes three styles – transformational,
transactional and laissez-faire leadership. The present study uses charismatic leadership approach to identify the
leadership style of public managers. In this approach, leadership is conceptualized by the behavioural areas from
laissez-faire style (non-leadership), through transactional leadership (which hinges on reward system and
punishments), to transformational leadership (which is based on inspiration and behavioural charisma) (Bass and
Avolio, 1993).
2.3.7 Effect of leadership style on employee’s performance on banking industry
The banking sector is a fundamental component of economy in almost any given society (Belias & Kustelios 2014).
Leadership teams at financial institutions seem to not have the courage and/or capacity to embrace change - and it
is up to strong leaders to both allow and push their employees to be creative and innovative. Customer behaviour,
technology and competition are rapidly evolving, on-going and simultaneously; therefore, bank leaders must be
ready for challenges as well. Banks, similarly to any other industries, should start viewing change as a norm rather
than an exception. (Pilcher
2015) Chris Skinner (2015), one of the most influential people in financial industry the present moment, agrees
that banks ignore the need for innovation and change, and focus too strongly on status and shareholder value.
Skinner appeals to leaders in the bank industry to “give people the culture to create innovation”.
Brand Finance, business valuation and strategy consultancy that annually holds a Banking Forum event, focused
one of their events mainly on leadership in banking (2013). Forum discussed how leadership can valued and
measured, the need that exists for strong leadership in banking, and why it is so critical. Don Wood-land (2012)
discusses five leadership qualities required for being a successful leader in the banking industry in the modern
world; 1) vision, 2) authentic leader-ship and values, 3) ability to adopt to change, 4) networking and
communicating, 5) preparation and risk management.
Evidently, the need for change and innovative mind-set is recognized widely within the bank industry. Some
researchers (Belias & Koustelios 2014) argue that transformational leadership is the appropriate and most effective
model, due to having positive influence
on employee performance and job commitment Belias & Koustelios (2014) do not only review the need for
change, but also recognize that banks and credit institutions are already adapting innovative mind-set by
transitioning from strict traditional and hierarchical structure to a more flexible and communicative one.

2.4. Empirical Literature

Many researchers have studied leadership style from different prospective and in different Social political and
economic environment. The following ones are very match related and useful for this study: In (Bass’s 1998)
current definition, leadership is an interaction between one or more members of a group. In another more recent
definition, leadership is a relationship between leaders and followers where they influence each other and they
intend real changes and outcomes that reflect their shared purposes (Daft, 2005). It means that situations, contexts,
culture, working environment, new laws and regulations, information overload, organizational complexities and
psycho-socio developments remarkably impact the leadership concept thereby, making it commensurate to the
changing organizational dynamics (Amabile, Schatzel, Moneta & Kramer, 2004)The effect of leadership style on
corporate profitability has been studied considerably by different researchers(Nicholls, 1988; Simms, 1997).
Assuming “the essence of leadership is influence”, leadership could broadly be defined as “the art of mobilizing
others to want to struggle for shared aspirations” (Kouzes& Posner, 1995).Transformational leaders encourage
subordinates to put in extra effort and to go beyond what they (subordinates) expected before (Burns, 1978).

As the performance of an organization is dependent on the quality of the workforce at all levels of the organization
(Temple, 2002), it is essential to discuss the concept of individual performance. (Millcorvich and Bondream1997)
define employee performance as the degree to which employees accomplish work requirements. To them employee
performance in effect reflects the efficiency of the organization. People are an organization's greatest assets:
individuals and organizations have learned about the importance of the role of people in an organization, and how
the success of an organization depends on its people (Bartlett and Ghoshal, 1995). The role of human resources is
critical in raising performance in an organization (Armstrong and Baron, 1998). Ultimately it is the performance of
many individuals, which culminates in the performance of an organization, or the achievement of goals in an
organizational context (Armstrong and Baron, 1998). (Amos, et al. 2004) states, “The effective management of
individual performance is critical to the execution of strategy and the organization achieving its strategic
objectives”. Performance cannot be left in anticipation that it was develop naturally, despite the employee's natural
desire to perform and be rewarded for it. This desire needs to be accommodated, facilitated and cultivated (Amos,
et al. 2004). In return for this performance, organizations extend themselves in various forms of acknowledgement
(Foot and Hook, 1999).
Individual performance has become a topical issue in today's business environment, so much so that organizations
go to great lengths to appraise and manage it (Armstrong and Baron, 1998). (Whetten and Cameron (1998), state
that individual performance is the product of ability multiplied by motivation. (Furthermore, Cummings and
Schwab 1973) concur with the belief that performance is ultimately an individual phenomenon with environmental
factors influencing performance, primarily through their effect on the factors are those factors over which the
organization has little or no control, such as demands for job grading systems (Hellriegel, et al., 1999).

As the performance of an organization is dependent on the quality of the workforce at all levels of the organization
(Temple, 2002), it is essential to discuss the concept of individual performance. (Millcorvich and Bondream1997)
define employee performance as the degree to which employees accomplish work requirements. To them employee
performance in effect reflects the efficiency of the organization. People are an organization's greatest assets:
individuals and organizations have learned about the importance of the role of people in an organization, and how
the success of an organization depends on its people (Bartlett and Ghoshal, 1995). The role of human resources is
critical in raising performance in an organization (Armstrong and Baron, 1998).Ultimately it is the performance of
many individuals, which culminates in the performance of an organization, or the achievement of goals in an
organizational context (Armstrong and Baron, 1998). (Amos, et al.
2004) states, “The effective management of individual performance is critical to the execution of strategy and the
organization achieving its strategic objectives”. Performance cannot be left in anticipation that it was develop
naturally, despite the employee's natural desire to perform and be rewarded for it.

This desire needs to be accommodated, facilitated and cultivated (Amos, ET al.2004). In return for this
performance, organizations extend themselves in various forms of acknowledgement (Foot and Hook, 1999).
Individual performance has become a topical issue in today's business environment, so much so that organizations
go to great lengths to appraise and manage it (Armstrong and Baron, 1998). (Whetten and Cameron 1998), state
that individual performance is the product of ability multiplied by motivation. Furthermore, (Cummings and
Schwab 1973) concur with the belief that performance is ultimately an individual phenomenon with environmental
factors influencing performance, primarily through their effect on the factors are those factors over which the
organization has little or no control, such as demands for job grading systems (Hellriegel, et al., 1999). The leader's
ability to lead is contingent upon various situational factors, including the leader's preferred style. Contingency
theories to leadership support a great deal of empirical freedom to leadership, (laissez-faire style) (North house
2001).

The success of an organization is reliant on the leader's ability to optimize human resources a good leader
understands the importance of employees in achieving the goals of the organization, and that motivating these
employees is of paramount importance in achieving these goals. To have an effective organization the people
within the organization need to be inspired to invest himself or herself in the organization's mission- the employees
need to be stimulated so that they can be effective; hence, effective organizations require effective leadership
(Wall, Solum and Sobol, et al, 1996). (Fiedler and House, 1988) indicate that organizational performance was
suffer in direct proportion to the neglect of this. Ultimately, it is the individual employee who either performs, or
fails to perform, a task.

In order for an organization to perform, an individual must set aside his personal goals, at least in part, to strive for
the collective goals of the organization (Cummings and Schwab, 1973). In an Organizational context, the very
nature of performance is defined by the
Organization itself Cummings and Schwab, 1973). Employees are of paramount importance to the achievement of
any organization. Thus, effective leadership enables greater participation of the entire workforce, and can influence
both individual and organizational performance (Bass, 1997; Mullins, 1999).

According to (Bass 1997), in the modern business environment, much research has proved that leaders make a
difference in their subordinate’s performance, and make a difference as to whether their organizations succeed or
fail. (Kotter1988) argues for the ever-increasing importance of leadership in organizations, because of significant
shifts in the business environments, such as the change in competitive intensity and the need for more participation
of the total workforce. Leadership is perhaps the most thoroughly investigated organizational variable that has a
potential impact on employee performance (Cummings and Schwab, 1973). Winning leaders understand what
motivates employees and how the employee's strengths and weaknesses influence their decisions, actions, and
relationships. (Cummings and Schwab 1973) mention the connection between leadership traits or leadership
behaviours and employee performance.

However, they stress that the literature was not based on empirical evidence and therefore has become discredited
over time (Cummings and Schwab, 1973; Fiedler and House, 1988). There is agreement in the literature (Maritz,
1995; Bass, 1997) that leadership is a critical factor in the success or failure of an organization; excellent
organizations begin with excellent leadership, and successful organizations therefore reflect their leadership.
Leaders are effective when the influence they exert over their subordinates works towards achieving organizational
performance (Jones and George, 2000) Furthermore, leadership is often regarded as the single most critical success
factor in the success or failure of an institution (Bass, 1990).
Performance (Bass and Avolio, 1994; Ristow, 1998). However, through research by (Pruijn and Boucher 1994) it
was shown that transformational leadership is an extension of transactional leadership (Bass, 1997).The difference
between these two models is that followers of transformational leadership exhibit performance which is beyond
expectations, while transactional leadership, at best, leads to expected performance (Bass and Avolio, 1994).
Ristow1998) states that transactional leaders were effective in markets, which were continually growing, and where
there was little or no competition, but this is not the case in the markets of today, where competition is fierce and
resources are scarce. Research data (Brand, et al., 2000) has clearly shown that transformational leaders are more
effective than transactional leaders, regardless of how
“Effectiveness” has been defined.

2.5. Conceptual Framework

The study have independent variable and dependent variables. The leadership behaviour plays an independent role
and leader’s commitment and organizational performance as dependent variables.

Independent variable Dependent variable

Leadership styles Employee’s performance

 Laissez-faire Style  Customer satisfaction
 Achieve organization
 Transformational style goal
 Transactional Leadership  Team work
CHAPTER THREE
RESEARCH METHODOLOGY
3.1. RESEARCH APPROCH AND DESIGN
3.1.1 Research Design
This study was employ descriptive research design. This kind of design aims at generating information after the
incident has occurred. The research design was look at the reasons why the situation behaves the way it does and
also what the weakness and strengths are. The design was also exploit mixed approach. Qualitative approach
includes the use of interview, while the quantitative approaches planned to use of descriptive statistics. The study
used a mixed-method research approach, involving both qualitative and quantitative methods of data collection and
analysis. The population for the study was all employees of Hijra Bank S.C. Simple random sampling was used to
select the sample size of 150 employees. Primary data was collected through a questionnaire and face-to-face
interviews. The data collected was analysed using descriptive and inferential statistics. The study used SPSS
software to analyse the data.
3.1.2 Study Area
The area of the study is the Hijra banks S.C. The company has about branches but the research paper was focus on
head office human resources department. The data was gathered from the internal environment of the company, no
external environment was assessed for data gathering.

3.2. Data Sources and Data Collection Method

3.2.1 Data Sources
Primary sources of data are main sources of data to use in this study. The study uses questionnaire and interview
guide. Primary data obtained through questionnaires and interview. The studying group was used primary data
sources that help to have more detailed information on the topic. The interview session was held on the human
resources department director and three division heads of the departments’ sections, and some internal employees
and the group discussion was conducted with the authorized staffs who are engaged in managing the status of
leadership style of the bank.
3.3 Instrument Design and Measurement
This research was analyse the effect of the independent variable, leadership style on dependent variable, which is
employee performance, using regression analysis. And it was calculate the correlation of these factors for
identifying their relationship. Using descriptive type of analysis.

3.4 Sample Size and Sampling Technique

3.4.1 Study Population
For this study the information was obtained from the employees of Hijra bank S.C. The study population was
include respondents from Human Resource, Finance and management and also branch operation section of the
head quarter. The total population for the targeted organization is about 250, and it’s a combination of different
demographic groups.

3.4.2 Sample Size

To determine the sample size and representative of the target population, the study was use statistical instrument
formula. As of Yemane (1967), a research with high population size needs to use the formula

n= N
1+N (e) 2
Where: n= Sample size
N= Population size
e= Precession rate
n = 250
1+250 (0.05)2
n= 153
Then, 153 sample populations was taken from 250 of the total population with 95% confidence level.

3.5 Sampling Technique

The local area of the survey is to assess the relationship of leadership employees’ Performance in Hijra bank whilst
describing each variable and dimension regarding to leadership style, employee’s performance. To get valid
representative of the targeted population, the survey was utilize stratified random sampling technique.
 CHAPTER FOUR
DATA PRESENTATION AND ANALYSES

The study found that the leadership style practiced at Hijra Bank S.C. was a combination of transformational,
transactional, and laissez-faire styles. The study revealed that employees generally perceived leadership to be
effective, but there were concerns about communication, empowerment, and performance improvement systems.
The study found a positive relationship between leadership style and employee performance. The transformational
leadership style was found to have the highest impact on employee performance, followed by the transactional and
laissez-faire styles. In this chapter, the study attempted to examine the Relationship between leadership behaviour
and employees' performance: mediating organizational commitment. Therefore, the findings of the study were
presented and analysed in this chapter. The questionnaire were developed in five scales ranging from five to one;
where 5 represents Strongly agree, 4 agree, 3 Neutral, 2 disagree, and 1 strongly disagree. . The study used
Regression Analysis was also used to test the effect of independent variable on dependent variable. For the study,
232 questionnaires were distributed to employees and 230 (99%) questionnaire were obtained valid and used for
analysis. The collected data were presented and analysed using SPSS 20 software version.

4.1 Demographic Background of the Respondents

The demographic profile of the respondents was presented in this section. The personal profile of
the respondents were analyzed as per their gender, age, levels of educational achievements, and
years of service in the organization and service year. Descriptive statistics were performed on the
demographic variables as a means of describing the respondents. In addition, statistical test was
conducted to investigate the difference of effect of leadership style and employees performance.
Table 1General Characteristics of the Respondents

Sex of the Respondents Frequency Percent

Male 127 54.7
Valid
Female 105 45.3
Age of the Respondents
20-39 222 95.7
Valid 40-59 7 3.0
 60-79 3 1.3
Level of Education
Diploma 14 6.0
Valid First Degree 206 88.8
Master’s Degree 12 5.2
Marital Status
Single 130 56.0
Valid
Married 102 44.0
Work Experience in Hijra Bank
1-10 Years 207 89.2
Valid 11-20 Years 22 9.5
21-30 Years 3 1.3

As can be observed in the table above the respondents have been asked to questions related to their
demographic characteristics and 127 (54.7%) of the respondents are male while the rest 105(45.3%)
are female. Age wise 222 (95.7%) of the respondents are found between the age category of 20-39
years of age, 7(3%) of them are found between 40-45 years of age while the remaining 3(1.3%) of
the respondents are found between 60-79 years of age. Respondents level of education is also taken
in to consideration while collecting this data and 14 (6%) of the respondents are diploma holders,
with quite large percentage of them, 206 (88.8%) of the respondents have first degree and the rest
12 (5.2%) of the respondents are graduates of master’s degree. Marital status of the respondents is
also taken in to account in this study and 130 (56%) of the respondents are single while the
remaining 102 (44%) of the respondents are married. Finally, the respondents’ work experience in
their current company has been asked and 207 (89.2%) of the respondents have worked 1-10 years,
22 (9.5%) of the respondents have worked 11-20 years and the rest 3 (1.3%) of the respondents
have served 21-30 years with in Hijra Bank. It can be inferred from the above data that most of the
respondents are male, yet quite larger number and representative number of female participants
have participated in the study. Hence, it can be said that a proportional sample of both sexes have
participated in the study. Most of the respondents of this study are said to be young and ones
working at an adult level who have plenty more years ahead of them. They are believed to be
evaluative of the leadership practice exercised in their respective work unit and their bank in
general. The respondents’ general characteristic also shows that quite most of the respondents are
first degree holders who can clearly define evaluate and analyses the leadership practice of the
bank. What is more, the result of the study has also proved that relatively proportional sizes of the
respondents are married and slightly some most of the respondents are single. It shows that there
are a number of respondents who can take leadership position. Finally, most of the respondents
have worked above 1 year and the respondents are adequately representative samples who can
clearly explain the bank at its best.

4.2 Leadership Approach: Laissez Faire Style

Table 2 the practice of Laissez faire leadership style

SD D N A SA Mean

Questions SD Div.
F % F % F % F % F %
When performance
requirements designed
my supervisor relies 26 11.2 67 28.9 72 31.0 61 26.3 6 2.6 2.8 1.03

only on his/her own

judgment
My supervisor does not
6 2.6 65 28.0 68 29.3 85 36.6 8 3.4 3.1 .94
impose policies on me
There is leadership
freedom in my 11 4.7 58 25.0 74 31.9 80 34.5 9 3.9 3.08 .96

department
My department performs
without any leadership 6 2.6 116 50.0 61 26.3 39 16.8 10 4.3 2.7 .9

barriers or obstacle
I encourage others to do
16 6.9 63 27.2 85 36.6 61 26.3 7 3.0 2.9 .96
things on my way
The manger attends to 11
3 1.3 24 10.3 85 36.6 50.4 3 1.3 3.4 .7
my problems 7
 As can be observed in the table above the respondents have been asked to rate their level of
agreement to the statement when performance requirements designed if the respective supervisor
relies only on his/her own judgment. It follows that 26 (11.2%) of the respondents have strongly
disagreed 67(28.2%) of the respondents disagreed, 72 (31%) of the respondents have remained
neutral, 61 (26.3%) of the respondents have agreed and 6 (2.6%) of the respondents have strongly
agreed to the statement and the mean and standard deviation are 2.8 and 1.03 respectively. To the
statement that asked the respondents’ level of agreement regarding the respective supervisor does not
impose policies on the subordinates 65 (28%) of the respondents have disagreed, 6 (2.6%) of the respondents
have strongly disagreed, 68 (29.3%) remained neutral 85(36.6%) of the respondents have agreed and the rest
8 (3.4%) of the respondents have strongly agreed to the statement and the mean and standard deviation
values as computed are 3.1 and 0.938 respectively. The respondents have also been asked to rate their level
of agreement regarding the statement that said there is leadership freedom in my department and 11 (4.7%)
of the respondents have strongly disagreed, 58 (25%) of the respondents have disagreed, 74 (31.9%) of the
respondents have remained neutral, 80 (34.5%) of the respondents have agreed and the remaining 9(3.9%) of
the respondents have strongly agreed to the statement.

The respondents have been asked a statement that said their respective department performs without any
leadership barriers or obstacle; accordingly 6(2.6%) of the respondents have strongly disagreed 116
(50%) of the respondents have disagreed to the statement 61 (26.3%) of the respondents remained
neutral, 39 (16.8%) of the respondents have agreed and the rest 10 (4.3%) of the respondents have
strongly agreed to the statement. a statement requiring respondents’ level of agreement regarding
the extent to which the respondent encourage others to do things on their way and 16 (6.9%) of the
respondents have strongly disagreed, 63(27.2%) of the respondents have disagreed, 85 (36.6%) of the
respondents have remained to be neutral, 61 (26.3%) of the respondents have agreed and the remaining 7
(3%) of the respondents have strongly agreed. Respondents have also been asked to express their level of
agreement on the statement the respective manger attends to the subordinates’ problems and 3 (1.3%) of the
respondents have strongly disagreed 24 (10.3%) of the respondents have disagreed, 85 (36.6%) of the
respondents have remained neutral, 117 (50.4%) of the respondents hav2.3.6e agreed and the rest 3 (1.3%) of
the respondents have strongly agreed to the statement.

Finally, on the same table above the respondents have also been asked to express their level of agreement to the
statement that said the respondents’ supervisor allows me to express my point of view openly 34(14.7%) of the
respondents have strongly disagreed, 40 (17.2%) of the respondents have disagreed, 1(0.4%) of the
 Respondents remained neutral 138 (59.5%) of the respondents have agreed and 19(8.2%) of the respondents
have strongly agreed to the statement.

As can be inferred from the data above that leadership approach tends to be more of laissez faire at
some point. Hence, the leadership as exercised by most of the work units lacks supervision and the
employees act their own way with little if any supervision and control. 4.3 Leadership Approach-
Transformational Leadership
4.3 Leadership Approach: Transformational

Leadership Table 3: The practice of Transformational

Leadership

SD D N A SA Mean

Questions SD

F % F % F % F % F % Div

.
The employer has care and
concern for individuals work 12 5.2 34 14.7 84 36.2 99 42.7 3 1.3 3.2 .89

as well as his personal issues

My supervisor is quite open

3 1.3 54 23.3 71 30.6 91 39.2 13 5.6 3.2 .91
and receptive to new ideas

My supervisor treats all

subordinate employees like 6 2.6 63 27.2 63 27.2 86 37.1 14 6.0 3.2 .98

brother/sister

My supervisor used the world

17 7.3 36 15.5 96 41.4 75 32.3 8 3.4 3.0 .95
WE instead of I

My supervisor builds team

12 5.2 32 13.8 98 42.2 84 36.2 6 2.6 3.2 .88
sprites
My supervisor gets people
involvement in decisions 14 6.0 55 23.7 73 31.5 87 37.5 3 1.3 3 .95

making
As shown in the table above the study participants have been asked to rate their level of agreement
to the statement the employer has care and concern for individuals work as well as his personal
issues. It follows that 12 (5.2%) of the respondents have strongly disagreed 34(14.7%) of the
respondents disagreed, 84 (36.2%) of the respondents have remained neutral, 99(42.7%) of the
respondents have agreed and 3(1.3%) of the respondents have strongly agreed to the statement. A
statement requiring respondents’ level of agreement regarding the extent to which the respondent
the respective supervise is quite open and receptive to new ideas and 3(1.3%) of the respondents
have strongly disagreed, 54(23.3%) of the respondents have disagreed, 71(30.6%) of the
respondents have remained to be neutral, 91 (39.2%) of the respondents have agreed and the
remaining 13(5.6%) of the respondents have strongly agreed. As shown in the same table above
the study participants have been asked to rate their level of agreement to the statement the
respective supervisor treats all subordinate employees like brother/sister. It follows that 6 (2.6%)
of the respondents have strongly disagreed 63(27.2%) of the respondents disagreed, 63 (27.2%) of
the respondents have remained neutral, 86(37.1%) of the respondents have agreed and 14(6%) of
the respondents have strongly agreed to the statement. What is more, the participants of the study
have also been asked to rate their level of agreement to the statement to the statement that said the
respective supervisor used the world WE instead of I and 17 (7.3%) of the respondents have
strongly disagreed 36(15.5%) of the respondents disagreed, 96(41.4%) of the respondents have
remained neutral, 75(32.3%) of the respondents have agreed and 8(3.4%) of the respondents have
strongly agreed to the statement.

Respondents have also been asked to express their level of agreement regarding the statement that
said the respective supervisor builds team sprites 12 (5.2%) of the respondents have strongly
disagreed 32(13.8%) of the respondents disagreed, 98 (42.2%) of the respondents have remained
neutral, 84(36.2%) of the respondents have agreed and 6(2.6%) of the respondents have strongly
agreed to the statement. Finally, regarding the transformational leadership style the respondents
were asked to rate their level of agreement a statement that said the respective supervisor gets
people involvement in decisions making and 14 (6%) of the respondents have strongly disagreed
55(23.7%) of the respondents disagreed, 73(31.5%) of the respondents have remained neutral,
87(37.5%) of the respondents have agreed and 3(1.3%) of the respondents have strongly agreed to
the statement. It can therefore be said that by far transformational leadership style is also
experienced by quite most of the leaders in the respective work units.
 4.4 Leadership Style: Transactional leadership Style
Table 4 Transactional Leadership

SD D N A SA Mean

Questions SD

F % F % F % F % F % Div

.
My supervisor
clearly clarify the
7 3.0 43 18.5 57 24.6 110 47.4 15 6.5 3.4 .96
responsibility for
achieving targets

I provide
recognition rewards
9 3.9 41 17.7 89 38.4 86 37.1 7 3.0 3.2 .89
when others reach
their goals

I also provide
punishments or
demotion to
17 7.3 31 13.4 117 50.4 61 26.3 6 2.6 3.0 .89
subordinate
workers when they
are doing

My supervisor
content to tell other
7 3.0 56 24.1 87 37.5 76 32.8 6 2.6 3.1 .89
continue working in
same way as always
As can be seen in the table above the respondents were asked four different questions under the
umbrella phrase transactional leadership style. Accordingly respective respondents of the study
participants have been asked their level of agreement to the statement the respective supervisor
supervise clearly clarify the responsibility for achieving targets and 7(3%) of the respondents have
strongly disagreed 43(18.5%) of the respondents disagreed, 57 (24.6%) of the respondents have
remained neutral, 110(47.4%) of the respondents have agreed and 15(6.5%) of the respondents have
strongly agreed to the statement. To the statement categorized under the same category and required
the level of the respondents on the respondents themselves provide recognition rewards when others
reach their goals and 9 (3.9%) of the respondents have strongly disagreed 41(17.7%) of the
respondents disagreed, 89 (38.4%) of the respondents have remained neutral, 86(37.1%) of the
respondents have agreed and 7(3%) of the respondents have strongly agreed to the statement.
Similarly the respondents have also been asked that the respective supervisor is also provides
punishments or demotion to subordinate workers when they are doing and 17(7.3%) of the
respondents have strongly disagreed 31(13.4%) of the respondents disagreed, 117 (50.4%) of the
respondents have remained neutral, 61(26.3) of the respondents have agreed and 6(2.6%) of the
respondents have strongly agreed to the statement. Finally the respondents have also been asked to
rate their level of agreement to the statement under this sub title that said the respective supervisor
is content to tell others continue working in same way as always and 7 (3%) of the respondents
have strongly disagreed 56(24.1%) of the respondents disagreed, 87 (37.5%) of the respondents
have remained neutral, 76(32.8%) of the respondents have agreed and 6(2.6%) of the respondents
have strongly agreed to the statement.

It follows that transactional style of leadership is also partly exercised by some leaders of the bank.
 4.5 Employee Job Performance in view of Customer satisfaction
Table 5 Customer Satisfaction

SD D N A SA Mean
Questions SD
F % F % F % F % F %
Div
.
Customers have a positive
feedback after they 5 2.2 23 9.9 76 32.8 97 41.8 31 13.4 3.5 .9

receive the service

The service deliver

34 14.7 76 32.8 103 44.4 19 8.2 3.3 1.1
processes takes short time

The respondents have been asked two questions each of which was gauged based on the level of
agreement the respondents had. To begin with it said customers have a positive feedback after they
receive the service 5 (2.2%) of the respondents have strongly disagreed 23(9.9%) of the respondents
disagreed, 76 (32.8%) of the respondents have remained neutral, 97(41.8%) of the respondents have
agreed and 31(13.4%) of the respondents have strongly agreed to the statement. Moreover,
respondents were also asked to rate their level of agreement to the statement that said the service
delivery processes takes short time and 34 (14.7%) of the respondents have strongly disagreed, 76
(32.8%) of the respondents have remained neutral, 103(44.4%) of the respondents have agreed and
19(8.2%) of the respondents have strongly agreed to the statement.

4.6 Leadership Approach employed in achieve organization goal

Table 6 Organizational Goal

SD D N A SA Mean SD
Questions
F % F % F % F % F % Div
 .

I worked keeping
my skills up to 6 2.6 7 3.0 55 23.7 138 59.5 26 11.2 3.7 .82

date
I actively
participated in
11 4.7 16 6.9 84 36.2 103 44.4 18 7.8 3.4 .91
work meetings
and training

I were able to
perform my work
18 7.8 28 12.1 160 69.0 26 11.2 3.8 .94
well with minimal
time and effort

As can be observed in the table above, the respondents were asked three questions associated with
the leadership style in promoting the successful achievement of or realization of organizational goal
and three statements have been presented to gauge study participants level of agreement in this
regard. It follows that to the statement that said respective respondents have worked keeping their
skills up to date 6 (2.6%) of the study participants have strongly disagreed, 7 (3%) of the
respondents have disagreed 55 (23.7%) have remained neutral, 138 (59.5) have agreed and the 26
(11.2%) of the respondents have strongly agreed with the mean and standard deviation values of 3.7
and .82 respectively. Moreover the respondents were asked to express their level of agreement with
a statement the respective respondents have actively participated in work meetings and training and
11 (4.7%) of the participants have strongly disagreed, 16 (6.9%) of the respondents have disagreed,
84 (36.2%) of the study participants have remained neutral, 103 (44.4%) of the respondents have
agreed and the remaining 18 (7.8%) of the respondents have strongly agreed to the statement with
mean and standard deviation of 3.4 and 0.94 respectively.

Finally, on the same table above the respondents have been asked to rate their level of agreement
regarding the statement that required them that they were able to perform my work well with
minimal time and effort 18 (7.8%) of the respondents have strongly disagreed, none of them
disagreed, 28 (12.1%) of the respondents remained neutral, 160 (69%) of the respondent have
 agreed and the rest 26 (11.2%) with a mean and standard deviation of 3.8 and .94 respectively.

4.7 Leadership style and Team work

Table 7 Teamwork

SD D N A SA Mean
Questions SD
F % F % F % F % F % Div
.
There is team work in
7 3.0 16 6.9 55 23.7 124 53.4 30 12.9 3.7 .9
my department
My supervisor is a
7 3.0 34 14.7 83 35.8 80 34.5 28 12.1 3.4 .98
team player

I am given the needed

support by my
6 2.6 28 12.1 95 40.9 88 37.9 15 6.5 3.3 .7
supervisor to builds
team spirits
As shown in the table the respondents have been asked to rate their level of agreement the team
work practice in view of the leadership style in Hijra Bank and three questions pertaining team
work have been presented to them as shown in the above table. To begin with each of the
statements, to the statement that said there is team work in their respective department 7 (3%) of the
respondents have strongly disagreed, 16 (6.9%) disagreed 55 (23.7%) of the study participants have
remained neutral, 124 (53.4%) of the respondents have agreed while the rest 30 (12.9%) of the
respondents have strongly agreed with cumulative mean value of 3.7 and standard deviation of
0.9.Similarly for the statement that required the study participants’ extent of agreement to the
statement that said respective supervisor is a team player 7 (3%) of the respondents have strongly
disagreed, 34 (14.7%) of the respondents have disagreed, 83 (35.8%) of the respondents have
remained neutral, 80 (34.5%) of the respondents have agreed 28 (12.1%) of the respondents have
strongly agreed to the statement with mean value of 3.4 and standard deviation of 0.98.Finally,
respondents have been asked to rate their level of agreement regarding a statement that said if they
are given the needed support by their supervisor to build team spirit they will continue to bloom and
6 (2.6%) of the respondents have strongly disagreed, 28 (12.1%) of the respondents have disagreed,
95 (40.9%) of the respondents have remained neutral, 88 (37.9%) of the respondents have agreed
and 15 (6.5%) of the respondents have strongly agreed to the statement with cumulative mean of
3.3 And standard deviation value of 0.7.

It can, therefore, be said that teamwork is exercised and considered fundamental to leaders of
respective units.

4.8 Summary of Mean and Standard Deviation of Leadership Style and Work Performance
Transformatio Transactio Customer Organizational
laissez faire n n; Satisfaction Goal Team work

Valid 232 232 232 232 232 232

Mean 3.04 3.13 3.175 3.4 3.63 3.47

Std. Deviation 0.97 0.93 0.9075 1 0.89 0.86

The above descriptive statistics clearly indicates the corresponding arithmetic mean and standard
deviation of every construct totals (total of every individual categorical construct). Thus laissez faire
categorical total has a mean of 3.04 and a standard deviation of 0.97, transformational leadership
total has a mean of 3.13 and a standard deviation of 0.93, transactional leadership total mean of
3.175 And standard deviation 0.9075, customer satisfaction categorical total has a mean 3.4and
standard deviation of 1, organizational goal categorical total has a mean of 3.63 and a standard
deviation of 0.89, team work categorical total has a mean 3.47 and standard deviation .86.

4.9 Correlation Analysis

Correlation is the degree of correspondence between variables. This implies the relationship is
mutual or reciprocating, but the correlation does notmakeany proposition that one thing is the cause
and the other the effect.
Table 4.9 Pearson Correlation between Factors of Leadership Style and Customer
Satisfaction

Leadership Style Customer Satisfaction

Pearson Correlation .230**
Laissez faire Sig. (2-tailed) .000
N 232
Pearson Correlation .638**
Transformational Sig. (2-tailed) .000
N 232
Pearson Correlation .690**
Transactional Sig. (2-tailed) .000
N 232
**. Correlation is significant at the 0.01 level (2-tailed).

Correlation result as shown in table 4.9 above there is significant positive relation between Laissez faire
and customer service (r= .230, sig= .000).There is significantly positive relation between
transformational leadership and customer satisfaction (r= .638, sig= .000). There is significant positive
relation between transactional leadership and customer satisfaction (r= .690, sig= .000).
Table 4.10 Pearson Correlation between Leadership Style and Factors of Organizational
Goal Achievement
Leadership Style Organizational Goal
Laissez faire Pearson Correlation .529**
Sig. (2-tailed) .000
N 232
Pearson Correlation .375**
Transformational
Sig. (2-tailed) .000
N 232
Pearson Correlation .297**
Transactional Sig. (2-tailed) .000
N 232
Pearson Correlation 1
Sig. (2-tailed)
N 232
**. Correlation is significant at the 0.01 level (2-tailed).

There is significant positive relation between laissez faire leadership style and organizational goal
achievement r= .529, sig= .000). There is significant positive relation between transformational
leadership style and organizational goal achievement (r= .375, sig= .000). There is significant
positive relation between transactional leadership and organizational goal achievement r= .297,
sig= .000). Table intended to determine the correlation between factors of effective leadership style
as implemented by all the three styles of leadership variables with organizational goal achievement.
The findings have suggested that there was a strong correlation between the performance leadership
style and organizational goal achievement.
 Table 4.11 Pearson Correlation Leadership Style and Factors of Work Performance

Leadership Style Work performance

Laissez faire Pearson Correlation 0.3795**
Sig. (2-tailed) .000
N 232
Pearson Correlation 0.5065**
Transformational Sig. (2-tailed) .000
N 232
Pearson Correlation 0.4935**
Transactional Sig. (2-tailed) .000
N 232
Pearson Correlation 1
Sig. (2-tailed)
N 232
**. Correlation is significant at the 0.01 level (2-tailed).

As shown in table 4.11 above the correlation between the three leadership styles and the factors of
work performance has been computed. As shown, there is significant positive relation between
transformational leadership style and work performance (r= .3795, sig= .000). There is significant
positive relation between transformational leadership style and work performance (r= .5065, sig=
.000). What is more, there is significant positive relation between transformational leadership style
and work performance (r= 0.4935, sig= .000).

4.10 Regression Analysis

In this study multiple regressions were conducted in order to examine the relationship between laissez
faire, transformational and transactional leadership styles, with another constructs of the conceptual
framework; work performance indicators: team work, customer service organizational goal achievement.
Here, the regression between the components of performance appraisal quality and employee performance in
the form of stepwise is analyzed. R-Square (coefficient of determination) is a commonly used statistic to
evaluate model fit. R-square is 1 minus the ratio of residual variability.
Table 4.12Results of Multiple Regressions between the Effect of the three Leadership Styles
Variables and Work Performance Indicators
b
Model Summary

R R Square Adjusted R Square Std. Error of the Estimate

Model
1 .749a .561 .554 .72355

2 .683a .641 .622 .73312

3 .721a .531 .489 .71245

a. Predictors: (Constant), transformational, laissez fair, transactional,

b. Dependent Variable: team work, customer satisfaction and organizational
objectives R Represents the relationship between dependent and the independent
variables.

R² Represent how much of the dependent variable can be explained by the independent variable.

From the equation, it was realized that the two dependent variables, they had a moderate
relationship with the leadership styles. The correlation value are 0.749 and .721 which are both;
MHconsidered a moderate relationship because the values fall greater than 0.70 (Pallant, 2011).
The values are also positive indicating that, when the independent variables increase dependent
variable also increases and vice versa. The R² indicate that 56.1 % (0.561), 64.1% (.641) and 53.1%
(.531) of employee work performance could be explain using the independent variables (Required
level of work performance).

Table 4.13 Results of Multiple Regressions between the Combined Effect of the three
Leadership Styles Variables and Work Performance Indicator
R R Square Adjusted R Std. Error of the Estimate
Model Square
0.573 a
1 0.426 0.409 0.559

From the equation, it was realized that the dependent variables, have a moderate relationship with
the leadership styles. The correlation value 0.573 is having a stronger relationship because the value
 falls less than 0.70 (Pallant, 2011). The values are also positive indicating that, when the
independent variable increases dependent variable also increases and vice versa. The R² indicate
that 42.26 % (0.426), of employee work performance could be explaining using the dependent
variables.

Table 4.14 Regression Coefficients of the Relationship between Team Work and the
Leadership Styles (Predictive Variables)

Coefficients

Unstandardized Coefficients
U,H Sig.
B Std. Error
Teamwork (Constant) .651 .340 .056
Laissez faire .017 .060 .005
Transformational .319 .063 .043
Transactional .234 .062 .000

From the analysis, the co-efficient value for laissez faire leadership style was 0.170. This means that all
things being equal, when the other independent variables (transformational and transactional leadership) are
held constant, work performance increases by 1.7 % if there is 100% improvement in the supervisor’s
laissez-faire leadership style. This was statistically significant (0.00<0.05) i.e. the variable (laissez faire) is
not making any significant unique contribution to the prediction of the dependent variable (teamwork).

From the analysis, the co-efficient value for transformational leadership was 0.329. This means that all
things being equal, when the other independent variables (transactional and laissez-faire) are held constant,
team work and the associated cohesion as a team would increase by 32.9% if there is 100% improvement in
transformation. This was statistically significant (0.04<0.05) i.e. the variable (transformational leadership) is
making a significant unique contribution to the prediction of the dependent variable (teamwork).

The co-efficient value for transactional leadership was 0.329. This means that all things being equal, when
the other independent variables (transformational and laissez-faire) are held constant,
Working as a team and cohesion among teammates both vertically and horizontally would increase by
32.9% if there is 100% improvement in transactional leadership. This was statistically significant
(0.04<0.05) i.e. the variable (transactional leadership) is making a significant unique contribution to the
prediction of the dependent variable (teamwork).

Table 4.15 Regression Coefficients of the Relationship between Organizational Goal and the
Leadership Styles (Predictive Variables)

Unstandardized
Coefficients
B Std. Error Sig.
Organizational goal achievement (Constant) .712 .321 .046
Transactional .607 .085 .000
Laissez faire .015 .093 .871
Transformational .581 .073 .000

From the analysis, the co-efficient value for transactional it is indicated that 0.607. This means that
all things being equal, when the other independent variables are held constant, organizational goal
achievement would increase by 60.7 % if there is 100% improvement in laissez-faire. This was
statistically significant (0.00<0.05) i.e. the variable (laissez faire) is making a significant unique
contribution to the prediction of the dependent variable (organizational goal achievement).

From the analysis the co-efficient value for transformational leadership was 0.581. This means that
all things being equal, when the other independent variables are held constant, organizational goal
achievement would increase by 58.1 % if there is 100% improvement in quality of the leadership in
being transformational. This was statistically significant (0.00<0.05) i.e. the variable
(transformational leadership) is making a significant unique contribution to the prediction of the
dependent variable (organizational goal achievement).

From the analysis, the co-efficient value for transactional leadership was 0.015. This means that all
things being equal, when the other independent variables (transformational and laissez faire) are
held constant, performance would increase by 1.5 % if there is 100% improvement in
organizational goal achievement. This was statistically insignificant because it has value more than
 0.871>0.05 i.e. the variable (laissez fair leadership) is not making any unique contribution to the
prediction of (organizational goal achievement).

Table 4.16 Regression Coefficients of the Relationship between Leadership Styles and the
work performance (Predictive Variables)

Unstandardized Standardized Coefficients

Std.
B B Std. Error Sig.
Error
Work performance (constant) .6815 0.3305 .072 0.321 0.031
Laissez faire .012 0.0725 .012 0.0725 0.055
Transformational .457 0.078 .457 0.078 0. 0
Transactional .4075 0.0675 .4075 0.0675 .0420

From the analysis, the co-efficient value for Laissez faire leadership was 0.312. This means that all things being
equal, when the other independent variables (transformational and transactional) are held constant, work
performance would increase by 1.2 % if there is 100% improvement in organizational goal achievement. This was
statistically insignificant because it has value 0.051>0.05 i.e. the variable (laissez fair leadership) is not making any
unique contribution to the prediction of (organizational performance). Moreover, transformational leadership
coefficient is shown as 0.457, which means work performance will increase, by 45.7% while other independent variables are
set aside and this is statistically insignificant since 0.0025 is <0.05 Finally as shown in the above table the independent
variable, transactional leadership has shown a coefficient of .4075 which also shows other two leadership styles remaining
constant transactional leadership will enhance work performance by 40.75% and the value is significant at .00 as it is less
than .05. As shown in the standardized coefficients the values are all under certain similarity as at each ends the correlation
and significances.
 CHAPTER FIVE

SUMMRY, CONCLUSIONS AND RECOMMENDATION

5.1 Summary of Major Findings

 The study has revealed that most of the study participants are first-degree graduates.
 The composition of marital status between married and single ones in the study revealed
that there is somehow balanced , yet most of the study participants are singles, not married
 Most of the respondents of the study have served in the bank for less than a decade now and
given the age of the bank, it is possible to infer that the participants can better describe the
current leadership style.
 As can be observed in the study at some points weighed the leadership approach tends to be
more of laissez faire at some point
 Regardless of some of the measures describing laissez-faire shown that there is tendency
that the leadership practice experienced by the bank, the transformational parameters and
the features describing transformational leadership have proved that the bank experiences
transformational leadership.
 As the study, result has shown certain parameters of transactional leadership have been
presented and the leadership style exercised by the bank is partly the transactional
leadership style.
 Various questions have been presented in the study with regard to the job performance and
customer satisfaction, customer satisfaction has weighed largely, and there is stronger view
that customers have a positive feedback after they receive the service and the service deliver
processes takes short time.
 The respondents firmly believe that the employee work towards the realization of the
organizational goal is worth it.
 The respondents believe that team work is crucial in realizing job performance
 The regression and correlation results have shown that each of the leadership styles are at
different level significantly correlated with job performance.
 The study has identified that the leadership style exercised by the bank is more contextual
leadership.
5.2 Conclusion
 Managers using the transactional leadership style receive certain tasks to perform and
provide rewards or punishments to team members based on performance results. While
others implant high levels of communication from management to meet goals. Leaders
motivate employees and enhance productivity and efficiency through communication and
high visibility. The leadership style employed by Hijra Bank tends to be more of
transformational though there is a sentiment of a laissez-faire and transactional at times.
 Employees often describe their respective managers and the leadership styles employed by
them in a different ways. As it stands the employees perceive their leaders tending towards
transactional and transformational leadership approaches
 The style of leadership has a greater positive effect on employee performance in which
situation employee feel power and confidence in doing their job and in making different
decisions. The transformational leadership and the performance deliverable variables have
been gauged and there has been a positive a strong and a significant relationship between
transformational leadership and employee work performance. Similarly there is a strong,
positive and significant relationship between transactional leadership style and employee
work performance
 Overall, the leadership style in place by the bank has a significant effect on work
performance of the employees. As attested the reactions of the employees have proved that
the employees have partly lacked the required level of competence as they lacked the
required level of leadership dexterity they have been provided. They also believe that the
leadership in place didn’t help them to realize the required level of performance.
5.2 Recommendation

 The leadership style in place by leaders of Hijra bank tends to be a mix of both the three
major leadership styles dealt in this paper. However, most importantly the transformational
leadership should be promoted and the other two transactional and laissez faire leadership
styles should not be encouraged to be exercised. Considering the susceptible nature of the
financial sector, the turbulent financial environment the country is facing and the market in
itself as the youngest to the country, it becomes key moment to reconsider the leadership
styles in view of looking into the leadership styles that can take the bank further than it
currently is being managed.
 The perceptions of the employees are observed as a mix of the three leadership styles being
in action within the bank’s setting. Yet leaders influence and are expected to walk their
talks. Hence, their actions are attributed idealized influence, characteristics of leaders are
considered important. The actions of the leader are taken into consideration in behavioral
influence. In inspirational motivation, leaders have an optimistic view and set high standards
for followers.
 The current study has proved that there is a significant and positive relationship between the
two dominant leadership styles: transactional and transformational leadership as correlated
with employee job performance. By identifying the values and the benefits to be reaped,
however, the bank needs to implant the transformational leadership style more engrained to
the bank’s culture.
 Employee performance is an outcome of the leadership practice employed by the
institutions. Leaders often take the blame and the reward for certain failure or success.
Hence, if leader fails to deliver the required level of performance his leadership qualities are
often considered at stake. Leadership style as identified in this particular study is positively
related to the employee performance and the employee has considered that the style of
leadership is linked directly to the success factors. Yet the bank, Hijra Bank, should be
considerate of the performance of the bank basing its existing foundation on the style of
leadership it intends to realize.
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