Effect of Leadership Styles on Organizational Performance

The purpose of this study is to examine the effect of leadership styles on organizational performance in Amhara water work21`s construction enterprise. The study encompasses all employees working in the four offices of the enterprise and 283 respondents were drawn from all offices by using stratified sampling technique. From leadership types, three independent variables were considered to affect organizational performance. Namely; laissez-faire leadership styles, transactional leadership style and transformational leadership style. In order to test whether these variables determine the performance of the organization, multiple regressions was employed which is feasible model when there is more than one independent variable. Lastly, it was found that all factors are most prevalent in the prediction of organizational performance of Amhara Water Works construction enterprise. In general, the study revealed organizational performance of Amhara water works construction enterprise is good and leaders are using transactional and transformational leadership but leaders are not using laissezfaire leadership style.