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Transformational leadership was developed by Bass in 1985 (Ling et al 2017). Transformational leaders motivate their followers to perform beyond expectations by activating employees’ higher order needs, fostering a climate of trust, and inducing employees to transcend self-interest for the target of the organization (Pillai, et al.1999). The purpose of this research was to show the effect of transformational leadership style on employee performance in the case of Selected Bureau of Benshangul Gumuz Regional State. The study was employed descriptive research design, quantitative and qualitative research methods. Primary and secondary sources of data were used in the study. In addition the study was employed a simple random sampling method to collect data from professional employees of Selected Bureau in Assosa. Accordingly, this study was having 267 sample sizes and these number questionnaires were distributed and Taro Yemani’s (1967) statistical formula was used. The collected data were analyzed by using SPSS version 25.0. Descriptive, correlation and multiple regression analysis were employed. Demographic analysis, reliability test (Cronbach’s Alpha), Tolerance and VIF test, Co linearity, homoscedasticity and normality test were also conducted. The Descriptive overall means value of the transactional leadership factor was 3.55. This is above neutral center of the scale. The better contribute among the transformational leadership item was inspirational motivation which has the mean 3.68. The correlation result revealed that there were positive relationships between the four Transformational leadership behaviors which are Idealized Influence, Inspirational Motivation, Intellectual Stimulation and Individualized Consideration with Employee performance. The multiple regression analysis results revealed that the three types (elements) of transformational leadership style that is Idealized Influence, Inspirational Motivation and Individualized Consideration significantly affect Employee performance. But Intellectual stimulation has insignificant relation with employee performance.
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