An Empirical Study on Leadership and Employee Performance in the Banking Sector of Nepal

This study investigates the role of leadership in influencing employee performance within the banking sector. The research objectives are: (1) to examine the relationship between different leadership styles and employee performance, (2) to identify the most effective leadership approach in the banking industry, and (3) to analyze the implications of leadership practices on organizational outcomes. The study employs a quantitative methodology, utilizing survey questionnaires distributed to 150 employees across five commercial banks. Statistical tools such as correlation and regression analysis were applied to test hypotheses. Findings reveal that transformational leadership positively correlates with employee performance, while transactional leadership shows mixed results, and laissez-faire leadership negatively impacts performance. The study concludes that ethical and transformational leadership are key drivers of productivity, motivation, and employee commitment in the banking sector.