Leadership Styles and Employee Performance: Mediating Role of Job Satisfaction in Addis Ababa Commission
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This study investigates the effects of leadership styles on employee performance with the mediating role of job satisfaction at the Addis Ababa Planning and Development Commission (AAPDC). Although the Full Range Leadership Theory has been widely applied to examine transformational, transactional, and laissez-faire leadership, prior empirical findings remain inconclusive regarding how job satisfaction mediates the leadership–performance relationship, particularly in public-sector institutions within developing countries. Furthermore, limited evidence exists from the Ethiopian administrative context, creating a contextual and empirical gap in the literature. This study addresses that gap by simultaneously examining direct and indirect relationships among leadership styles, job satisfaction, and employee performance. A quantitative explanatory research design was employed using stratified random sampling. From a population of 403 permanent employees, 200 were selected, and 184 valid responses were analyzed, resulting in a 92% response rate. Data were collected through structured questionnaires adapted from the Multifactor Leadership Questionnaire (MLQ), Job Satisfaction Survey (JSS), and validated employee performance scales. Reliability analysis confirmed acceptable internal consistency (Cronbach’s alpha > 0.70). Descriptive findings reveal that laissez-faire leadership is the most frequently practiced style, followed by transactional and transformational leadership. Employee performance was reported at a moderate-to-high level, while job satisfaction varied across dimensions, particularly in compensation and recognition. Multiple regression analysis indicates that leadership styles significantly influence employee performance, and job satisfaction partially mediates this relationship. The findings contribute context-specific evidence from Ethiopia’s public sector and emphasize the importance of leadership alignment with employee motivational mechanisms to enhance organizational effectiveness.
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