Abstract:
The purpose of this study was to examine the Effect of Ethical leadership practices on
Performance of Awash Bank. The study employed descriptive and explanatory research design.
To collect the relevant data questionnaires and document analysis were used. Data were collected
from 180(54.5%) sample size to represent 330 Awash Bank Managerial employees.
Questionnaires were collected from three levels of Managerial employee. In order to analyze the
data, frequency, percentage, and descriptive statistics and inferential statistics were used.
The findings of the study revealed that the six independent variables: ―Honesty, Fairness,
Integrity, Ethical guidance, Power Sharing and Employee Orientation‖ have strong correlation
with the dependent variable ―performance‖ with 95% confidence interval at 0.01 p-value 2-tailed.
The regression analysis result also revealed that all independent variables except Fairness and
Integrity were statistically significant at p- value <.05, whereas fairness and integrity are not
significant. Furthermore, econometric analysis showed that all predictors have positive effects on
organizational performance. It was concluded that Power Sharing is the strongest predictor or has
the most significant effect on the performance of Awash Bank. This is because the Bank is used
the strategy of power decentralization and authority delegations among Managerial employees to
increase employee satisfaction and to increase organizational decision-making.
Similarly, employee orientation, honesty and ethical guidance are also influential next to power
sharing. This was achieved as a result of the Bank‘s better alignment between what the
employees do and what the Organization needs them to do. The Bank oriented new employees to
be familiar with the organizational culture, norms, code of conduct, environment, people and
work. The Bank created an environment of trust both within the organization and with those that
do business with the Organization.
The Bank should implement strategies such as training, seminars and standard operating
procedures that can promote fairness and integrity to have significant effect on Awash Bank
performance.
