A research on determining the effect of leadership style on employee performance

The aim of this study is to examine the effect of leadership styles on employee performance in some selected private banks in Mogadishu-Somalia. Therefore, the study has the following specific objectives; to determine the effect of democratic, autocratic, transformational, and transactional leadership styles on employee performance in the study‟s selected private banks in Mogadishu-Somalia, namely, Premier, Dahabshiil, and Amana banks. The study adopted quantitative research approach to examine the effect of leadership styles on employee performance. The target population of the study comprised of 500 respondents with a sample size of 222 employees from the study's selected private banks. To evaluate the internal consistency of the study, reliability test was conducted via SPSS. Moreover, the data of the study was analyzed using model summary, analysis of variance (ANOVA), coefficient of determination (R2), and regression coefficients. The study discovered that democratic, transformational, and transactional leadership styles have a positive and significant effect on employee performance while autocratic leadership style has a negative effect on employee performance. The research concluded that private banks in Mogadishu should adopt democratic, transformational, and transactional leadership styles since they have significant and positive effect on the performance of employees. Further studies suggestion is also included at the end of the study.