For every organization
attain its desired objectives and goals there must be high interaction between
the management/ leaders and the staff members. Moreover, such objectives could
be realized only when employee performance is high which mainly depends on leadership
style. Hence, leadership has suit the heart of issues in the business world
today. A crucial factor in the leadership process is the relationship that the
leader has with individual followers.
The challenges of coping with today’s doubtful trade
environment have put various organizations on their toes to fight for survival
in the heat of competition. The heart of such strategic move towards surviving
the competition is the leadership deliver by managers who are anticipated to
inspire others in attaining organizational objectives and although improve
employee’s performance. Shelfie et al.,(2013).
It is describe the vital of leadership in organizations and particularly on
human being who are apparently the prime asset of the company, the main points
of organization are typically employees, and they provide life to the
organization and achieving goals of the company (Shelfie et. (2013). it is very important to provide staffs with direction
and psychological satisfaction to obtain the best from them, so this direction
can only come from leaders.
To improve the
performance of employees, workers will depend on a large event of leadership
style that is operational within an organizational setting. On the other side
there is no leader used any of the style exclusively, so a leader may use
charismatic style when required to serve a particular purpose and the
democratic style in vice- verse. Leadership is defined as an interpersonal
process through which a leader directs the actions of individuals or groups
towards the deliberate pursuance of a given objectives within a particular
organization framework that means a common understanding. Rauch & Behling
(as cited in Yukl, 2010), declared that leadership is a way of inspiring the
activities of an organized group towards common attainment. According to this
idea the demand for great leaders is rising in modern times as society and
technology becoming improved advanced.
Leadership style is
considering different definitions of leadership. There are several leadership
styles described by different scholars. Northouse (2013) mention that
leadership styles consist of the behavior pattern of a person who attempts to
inspire others. Other research efforts to identify leadership characteristics
focused on the fit between personality characteristics, leaders’ behaviors, and
situational variables. Ogutu (2014) observed that leadership style is a
significant explanatory variable of the viability and performance of organizational
number of current studies observed the effect of leadership styles on
employee’s performance according to the Rasool, et al. (2015), Pradeep and
et al. (2015), Ipas (2012), Kahinde and Bajo (2014), Tsigu ad Rao (2015), Gimuguni,
et al (2014), Raja and Palanichamy (2015) etc. Rasool et al (2015) observed the
health part of Pakistan and report that both transformational and transactional
leadership styles impact employees performance but the impact of transformational
leadership is higher than transactional leadership Raja and Palanichamy (2015)
shows there is positive relationship between transformational and transactional
leadership on the other side negative relationship between laissez-fair
leadership style and performance from the a sample of employees in public and
private sector enterprise in India.
conducted by in Africa are Tsigu and Rao (2012) and Gimuguni et al. (2014) in Ethiopian banking
industry and Ugandan local government authorities correspondingly. According to
the Tsigu and Rao their results show that the transformational leadership and
enlightened the distinction is employees performance better than transactional
leadership style, Gumuguni et al.
describe there is a significantly positively relationship between autocratic, laissez-faire
and democratic and performance.
while the literature on leadership and employee performance is spread across
countries and across industry, the evidence of the effect of leadership style
on employee performance is also diverse.
According to Awamleh (2005)
inquires the transformational leadership style and other styles are direct
affect on employee’s performance in UAE banking. So the Darasalam Bank has been
selected in this study because of its important in the economy and the
company’s outstanding contribution in Somaliland gross domestic product (GDP).
More over all organization performance is major determining issue for the
organization success and failures which is the cooperative effect on individual
performance. It is influenced by different factors related to the individual
Working environment and
leadership styles used by leaders within organization. Although, leaders’
leadership style is one of the factors that influence employees’ performance
and organization success, the poor performance of organization raises questions
as to the type of leadership style required to achieve the levels of employee
performance necessary for the overall performance of organization.
well as from the previous literatures it manifest that the research evidence on
the effect of leadership style on employee performance that the leadership
style can declare significant figure of performance outcomes at individual and
organization rank, according to the Tsigu
and Rao (2015) from Ethiopian banking industry.