RIFT VALLEY UNIVERSITY SEBETA CAMPUS

ASSESSMENT OF CHALLENGES AND EFFECTIVENESS OF LEADERSHIP

PRACTICE

[IN THE CASE OF BY META ABO BREWERY]

Department Of Business Management

FACULTY OF BUSINESS AND SOCIAL SCIENCE

RESEARCH PROPOSAL TO THE DEPARTEMENT OF BUSINESS MANAGEMENT RIFT

VALLEY UNIVERSITY IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE
DEGREE OF BACHELOR OF ARTS (BA) IN BUSINESS MANAGEMENT

NAME ID.NO

1. FIKADU ABERA…………………………………………..……0118/19

2. CHALI NEGASSA…………………………………………...….0061/19

3. WANDEMAGEGN LEGESE…………………………….……...0117/19

4. FENAN KENATE………………………………………………..0013/19

5. MELAT BELAY……………………………………….…………0072/19

6. MULUGETA CHIMDESA……………………………..………...0127/19

Advisor: Mr.Abdi Balcha (MA)

NOV.2021

SEBETA, OROMIA, ETHIOPIA

Table of Contents

CHAPTER ONE........................................................................................................................................1
INTRODUCTION.....................................................................................................................................1
1.1. Background of the Study................................................................................................................1
1.2 Statement of the problem................................................................................................................3
1.3 Research questions..........................................................................................................................3
1.4 Objective of the study......................................................................................................................4
1.4.1 General objective......................................................................................................................4
1.4.2 Specific objectives.....................................................................................................................4
1.5 Significance of the study..................................................................................................................4
1.6 The scope of the study.....................................................................................................................4
1.7 Limitations of the study...................................................................................................................5
1.8 Definition of terms...........................................................................................................................5
1.9 Organization of the study................................................................................................................5
CHAPTER TWO.......................................................................................................................................6
LITERATURE REVIEW.........................................................................................................................6
2.1 Leadership effectiveness..................................................................................................................6
2.2 Overview of Leadership..................................................................................................................7
2.3 Conceptual Definition of Leadership.............................................................................................7
2.4 Functions of leadership...................................................................................................................8
2.5 Theories of leadership.....................................................................................................................8
2.5.1. Behavioral Approach theory:..................................................................................................8
2.5.2. Situational contingency approach theory:.............................................................................9
2.5.3. Trait Approach........................................................................................................................9
2.6 Leadership Styles.............................................................................................................................9
2.6.1. The Authoritarian (or Autocratic) style.................................................................................9
2.6.2 Directive style..........................................................................................................................10
2.6.3 Participative/democratic style................................................................................................10
2.6.4. A Genuine laissez-faire style.................................................................................................10
2.7 Leadership Model..........................................................................................................................10
2.7.1 Charismatic Leadership Models............................................................................................10

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 2.7.2 Transactional Leadership Models.........................................................................................11
2.7.3 Transformational Leadership..................................................................................................11
2.7.4 Servant Leadership.................................................................................................................11
2.8 The Role of Leader follower Relationship...................................................................................12
2.9 Leadership Qualities......................................................................................................................12
2.9.1 Good Communication Skill....................................................................................................12
2.9.2 Honesty....................................................................................................................................13
2.9.3 Visionary Outlook...................................................................................................................13
2.9.4 Action speaks louder than words...........................................................................................13
2.9.5 Selecting a Good Team...........................................................................................................13
2.9.6 Ability to Motivate People Around........................................................................................14
2.9.7 Consistency..............................................................................................................................14
2.9.8 Ability to Stand against Critics..............................................................................................14
2.10 Conceptual frame work...............................................................................................................14
CHAPTER THREE.................................................................................................................................16
RESEARCH METHODOLOGY AND METHOD OF DATA ANALYSIS.......................................16
3.1 Variables of the study....................................................................................................................16
3.1.1 Dependent variable.................................................................................................................16
3.1.2 Independent variables............................................................................................................16
3.2 Research design.............................................................................................................................16
3.3 Sources of data...............................................................................................................................16
3.4 Study population.........................................................................................................................16
3.5 Methods of sampling......................................................................................................................17
3.5.1 Sample size and sampling technique.....................................................................................17
3.6 Methods of data collection.........................................................................................................18
3.7 Method of Data Analysis...............................................................................................................18
3.8 Ethical consideration.....................................................................................................................18
3.9 Reliability and Validity of the Study............................................................................................19
3.10 Budget and Action time.....................................................................................................................19
3.10.1 Action time.....................................................................................................................................19
3.10.2 Budget Breakdown........................................................................................................................20
REFERENCE.......................................................................................................................................21

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Abrevations
CEO= Chief Excutive Officer

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 CHAPTER ONE
INTRODUCTION

1.1. Background of the Study

Leadership is the lifting of man’s visions to higher sights, the raising of man’s performance to a
higher standard, the building of man’s personality beyond its normal limitations. (Robert, 2003)
and we regard someone’s leadership as effective when this leader benefits to the organization as
well as the followers.

A leader is defined as a person with the responsibility to influence one or more followers and
direct them to achieve set objectives. While doing so, the leader has to be aware of the strength
of each of his follower and identify the areas to be improved as it is the process and behavior that
help in effective leadership (Bruce E. & Kathleen P,2006 ) .A leader should be able to change his
or her leadership style based on the situation in order to be more effective, focus on supporting
the followers and build their trust and respect (Aric H, 2007). Literature have stated that the key
elements for a successful organization are leadership style and competency (Rodney J & Ralf M,
2005)

Leaders are central to organizational achievement (Araujo-Cabrera, Suarez-Acosta & Aguiar-

Quintana 2016); consequently, it is vital that they be effective. However, a lack of certainty
prevails as to what is necessary for one to be an effective leader (Rosete & Ciarrochi 2005). This
situation is exacerbated in that there is ‘neither a universally accepted approach to nor definition
of’ leadership effectiveness (Mesterova et al. 2015:109). Accordingly, leadership effectiveness is
manifested as a relative judgment predicated upon both description and evaluated characteristics
(Oyinlade 2006).

It is difficult to find a common definition for all leaders and for all situations. Hence, researchers
identified what effective leaders do? For many years traits have not been given importance for an
effective leadership, however study on leadership have proven that the aspect of personality:
such as dominance, extraversion, sociability, self-confidence, high levels of energy and
resilience, are also important for effective leadership. Wisdom and self-awareness of a leader
help to a great extent in influencing the followers (Jeannette W,2002)A particular challenge in
the domain of leadership effectiveness has been the assessment thereof. Specifically, there exists
little agreement as to how to measure such effectiveness (Harris & Kuhnert 2008; Shalhoop &
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Sanger 2012). Harris and Kuhnert suggest two types of measures: (1) subordinate perceptions
and (2) organizational measures. Whilst some authors (e.g. Hansbrough, Lord & Schyns 2015)
highlight concerns, such as common method bias, in using follower ratings, others (including
Hogan & Hogan 2001; Kang & Jin 2015) argue that employee assessments are the best manner
through which a leader can be evaluated. This research addresses subordinate perceptions of
leadership effectiveness. Leadership effectiveness has been linked with leader intelligence
(Mesterova et al. 2015) and is associated with leader self-awareness (Butler, Kwantes &
Boglarsky 2014). It may be predicted by leader proto typicality (especially where subordinates
are subject to role ambiguity) (Cicero et al. 2010). It is also influenced by the quality of the
exchange relationships between leaders and each of their subordinates (Alabi 2012) and is
positively related to organizational cultures that endorse employee satisfaction (Kwantes &
Boglarsky 2007). In terms of leadership styles, perceptions of leadership effectiveness correlate
with transformational and transactional (Deluga 1991) as well as empowering and ethical
leadership (Hassan et al. 2013).

Meta Abo Brewery S.C, a public endeavor, was set up in June 1967 with an underlying capital of
2 million Birr and creation limit of 50,000hl/annum. It is situated about 30km South West of
Addis Ababa, close by Sebeta town. It produces packaged lager and draft brew for nearby and
unfamiliar utilization. The organization has presently given business occasion to more than 850
individuals. The all out resource of the Brewery is assessed to be $223 million. The absolute
zone of the S. Co is 36.96 hectares. It is presently situated at the top in assembling and
appropriation of value lager all through the nation.

The chief point of Meta Abo Brewery is meeting the clients' prerequisites for quality lager and to
offer clients more decision in the market without influencing the climate. Accordingly, the
Brewery is profoundly dedicated to squander decrease, squander the executives and fulfilling
clients' needs and desires. Meta Abo Brewery uses best in class innovation and has an
exceptionally qualified proficient work power that empowers it to finish on the fare market with
the main worldwide lager creating and advertising organizations. The Brewery has been a
pioneer in consumer loyalty, which is affirmed by being granted two globally, perceived
accreditations, ISO: 9001 and ISO: 14001.

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1.2 Statement of the problem
Leadership style is the way in which the function of leadership is carried out, and the manager
typically behaves towards members of the group. There are many dimensions to leadership and
possible way of describing leadership style, such as dictatorial, unity, bureaucratic, benevolent
charismatic, consultative, participative and abdicator. The Authoritarian (or Autocratic) style is
where the focus on power is with the manager, alone exercises decision, and authority for
determining policy procedures for achieving goals, work tasks and relationship, control of
rewards of punishment. (Mullins, 2006).Leadership effectiveness represents the ability of a
leader ‘to mobilize and influence followers’ (Cicero, Pierro & Van Knippenberg 2010:411) and
is crucial in that it drives the proclivity of the workforce towards the attainment of shared goals.
Effectiveness is concerned with capacity to use strength, health and aspirations in individuals to
achieve high performance. (De Cremer & Van Knippenberg 2004 A number of scholars
(including, Cheong et al. 2016; Wong & Giessner 2016; Yun, Cox & Sims 2006 have established
that where subordinate expectations of empowerment are not aligned with leader empowering
behaviors, empowerment can have adverse consequences.(Lee et al. (2016) found that a
curvilinear relationship (an inverted U shape) exists between empowering leadership and
employee task performance.

This suggests that a point is reached where additional empowerment actually begins to detract
from an employee’s performance despite him or her being inclined to such a leadership style. As
the preliminary discussion held by the team researchers showed that in Meta Abo Brewery S. Co.
the leader can’t develop strong, healthy and good relationship between employees and the
managers this is the case of negative influence of the leader. The result of such influence is
reducing employee’s productivity, decrease motivation, commitment being unloyal, disrespect
between leaders and employees, this also have impact on the organization productivity.

According to the past research and literature review, no method has been found to be very
effective in all situations. Based on the current investigations; all leadership styles are significant
in promoting the organization

1.3 Research questions

1. What are the major leadership styles that are being practiced in Meta Abo Brewery S. Co. in
Sebeta Plant?

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2. What does the existing challenges in leaders-followers relationships look like in Meta Abo
Brewery S. Co. in Sebeta Plant?
3. How much the employees are satisfied with the existing leadership style in Meta Abo Brewery
S. Co. in Sebeta Plant?

1.4 Objective of the study

1.4.1 General objective

The research paper will be seeks to achieve its general objective assessment of challenges and
effectiveness of leadership practice in the case of by Meta abo brewery s. co.

1.4.2 Specific objectives

1. Identify major leadership styles that are practiced in Meta Abo Brewery S. Co. in Sebeta Plant.
2. Investigate leadership effectiveness and challenges in Meta Abo Brewery S. Co. in Sebeta
Plant.
3. Is there relationship between leadership style and leadership effectiveness in Meta Abo
Brewery S. Co. in Sebeta Plant.

1.5 Significance of the study

The expected contribution from the study allows the students researchers to gain practical
experience about research methods. The outcome of the study expected to inform the
management of the Company about the current problem of the leadership style and will help to
find out solution to the existing problem that is related with leaders. Moreover, the researcher
may initiate other researchers to use as sources of literature for others.

1.6 The scope of the study

The main focus of this study will be assessment of effectiveness of leadership practice. The study
is restricting to one organization in Oromia region. The sample will be taken from those who are
working in Sebeta plant only. The study aims to investigate the overall leadership system. The
scope of the study is limited to Meta Abo Brewery S. Co.

1.7 Limitations of the study

This study covers about effectiveness of leadership practice with a view of highlighting its
consequences. The COVID-19 pandemic affects the plan we prepared. The extend time that has

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taken by the respondents to fill to the questionnaires and conducting interview, Carrying out the
research with routine office work, and the distance between the research area and the researchers
living place.

1.8 Definition of terms

Leadership: Getting people to do things they have never thought of doing, do not believe are
possible or that they do not want to do.

Employer: An employer can be defined as a person or institution that hires people.

Employee: This refers to the person being hired (supplier of labor).

Management: The act of controlling a directing people so as to coordinate and harmonize the
group thereby accomplishing goal(s) within and beyond the capacity of people being directed.

Organizational Performance: This is the performance of the product of all interactions taking
place in the organization.

Pioneer: a person or other entity who is first or among the leaders in any field of inquiry

1.9 Organization of the study

This research will be organized into five chapters. Chapter one focused on the background of the
study, statement of problems, objective of the study, significance of the study, scope and
limitation of the study organization and definition of terms. Chapter two contains literature
review and theoretical frame work. On the other hand chapter three focused on the research
methodology and method of data analysis. Chapter four includes the presentation and analysis of
data and discussion of results. Chapter five focus on the summary, recommendation and
conclusion.

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 CHAPTER TWO
LITERATURE REVIEW

2.1 Leadership effectiveness

Leadership effectiveness represents the ability of a leader ‘to mobilize and influence followers’
(Cicero, Pierro & Van Knippenberg 2010) and is crucial in that it drives the proclivity of the
workforce towards the attainment of shared goals (De Cremer & Van Knippenberg 2004). In this
respect, (Manamela, et.al 2016) observe that effective leaders are adept at recognizing and
positively utilizing both the competencies and limitations of their subordinates in the
achievement of organizational objectives. (Weaver, 2015) likewise affirms the constructive
impact that effective leaders have on the results of their subordinates.

Dorfman et al. (2012) comment that leaders who act in accordance with expectations are the most
effective, whilst Bjurstedt (2007) insists that effective leaders are those who favor personal over
positional power and are also able to adjust their style as required. (Manning, 2003) notes that leaders
effective in cross-cultural leadership possess ‘relationship competence’: that is, they are able to
emotionally connect with diverse individuals and establish mutually attractive relationships. It appears
then that effective leaders are those who exemplify interpersonal aptitudes that allow them to
form solid connections with an array of individuals through which they add value to the latter in
accordance with expectations which, in turn, leads to goal accomplishment.

Leadership effectiveness may be evaluated in a variety of ways and at different levels (Kang &
Jin 2015). (Kaiser, Hogan and Craig, 2008), through an examination of 10 meta-analyses,
identified two primary measurement types for leadership: (1) individual perceptions and (2)
group performance (these two measurement groupings are similar to those noted by Lowe et al.
1996, and mentioned earlier in this article). Individual perceptions may be split between (1)
leadership emergence (being perceived as a leader by, for example, colleagues) and (2) perceived
effectiveness (as a leader) (Kaiser et al. 2008). Group performance comprises (1) group process
(results achieved in terms of team member motivation, behavior levels and team dynamics) and
(2) group achievements such as productivity and financial outcomes (Kaiser et al. 2008). The
effectiveness of leaders exhibits a greater alignment with subordinates’ perspectives of leader
actions, as opposed to leaders’ self-reported views (Kim & Yukl 1995). Likewise, Conway

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(2000) notes that subordinates’ ratings may offer an enhanced reflection of the aptness of leader
behaviors.

2.2 Overview of Leadership

A starting point in becoming an effective leader is to understand what leadership and being a
leader are all about. About 35,000 research articles, magazine and books have been written about
leadership (Mullins, 2006). Challenges confronting organizations in contemporary times have
diversified and become more complex requiring extraordinary managerial skills to survive and
become successful and sustainable.
It is a truism that, for a leader to be successful there is the need to have command of basic facts
about the organization, be sensitive to environmental events, have relevant professional
understanding, be emotionally stable, have human relation skills, be a listener, be creative, be
mentally alert, have a learning habit, be proactive, be analytical, have problem solving and
judgment making skills, and have self-knowledge.
There is also the need to understand that nothing can be achieved without the people in the
organization. It is, therefore, not surprising that in the view of (Mintzberg,1980) every
achievement of the organization is an achievement of management and every achievement of
management is the achievement of the people in the organization. It is therefore imperative from
the foregoing that the way people are led using effective communications and the way the human
resources are combined to derive the necessary synergies will go long way to determine how
competent the managers or the organizations are and hence the level of performance attainable.

2.3 Conceptual Definition of Leadership

The art of leadership can be defined in many ways. Most definitions focus on the leader’s role of
inspiring others to achieve outstanding results. And many scholars defined it in many ways but
for the purpose of this study the selected definitions are presented as follows: According to
Fraling and Winston (2003), a leader is one or more people who selects, equips, trains, and
influences one or more followers who have diverse gifts, abilities, and skills and focuses the
followers to the organization’s mission and objectives. This enables the followers to willingly
and enthusiastically expend spiritual, emotional, and physical energy in a concerted coordinated
effort to achieve the organizational mission and objectives. The great man theory presents the
case that leaders are individuals endowed with great characteristics and heroic abilities. In
addition, trait theory describes individual leaders as people who have specific characteristics that

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help or enable the person to be a good leader. Leadership may be provided by a collection of
persons that top management teams represent a group of people who complete all the tasks and
processes of leadership but do so as a collective rather than an individual.

2.4 Functions of leadership

A function is what you do, as opposed to a quality which is what you are. And the following are
the functions of leadership planning, initiating, controlling, supporting, informing and evaluating
(Adair, 2005). According to (Yukl 2006), the ten most important leadership functions are listed
and recommended for enhancing collective work in teams and organization, the conditions that
create a need for these leadership acts are played out at every level of management and in every
subunit. The functions can be performed by any member of the organization, but they are
especially relevant for designed leaders.
These are: help to interpret the meaning of events, create alignment on objective and strategies,
build task commitment and optimism, build mutual trust and cooperation, strengthen collective
identity, organize and coordinate activities, encourage and facilitate collective learning, obtain
necessary resources and support, develop and empower people and promote social justice and
morality. This indicates leaders are involving in the activities of manager to facilitate their day to
day activities in addition to their vision based activities.

2.5 Theories of leadership

As it stands the world is characterized by changing economic & Political conditions global
competition new technology, increasingly complex world markets, scarcity of natural resources
and dynamic and volatile business environment. How well organizations adept to new conditions
will determine who will survive and who will thrive. Environmental dynamism and the changing
nature of work have led to the quest for effective leadership. Different perspectives on leadership
emerged through the years accordingly a brief review of the major leadership theories is
presented in the following sections.

2.5.1. Behavioral Approach theory:

Believed that people need more than certain personality traits to be effective leaders, effective
leaders demonstrate one or two major styles of dimensions: consideration and initiating structure.
Considerations describe the extent to which leaders have relationships with subordinates that are
based on mutual trust, respect and consideration of subordinates ideas and feelings. While

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Initiating structures, explain the extent to which leaders establish goals and structure their
subordinates towards the attainment of those goals.
2.5.2. Situational contingency approach theory:
In this type of approach there is no single type best style of leadership for every situation;
effective managers are those who can change their leadership styles to meet the needs of their
followers and the given situation. There are several models of this situational approach to
leadership: Fiedler contingency model; path-goal model and the situational leadership model.
Fiedler contingency theory is that the performance of a group is dependent on the interaction
between leadership style and situational variables; Path-goal model; determine the most
appropriate leadership style for different situations, it focuses on how a leader influences
followers‟ perceptions about work goals, self-development goals and path-goal accomplishment.
2.5.3. Trait Approach
The study of leadership has entertained different theories. Some of these common styles have
been briefly reviewed here under. The first organized approach to studying leadership analyzed
the personal, psychological, and physical traits of strong leaders. The trait approach assumed that
some basic trait or set of traits existed that differentiated leaders from non-leaders. If those traits
could be defined, potential leaders could be identified. Researchers thought that leadership traits
might include intelligence, assertiveness, above-average height, good vocabulary, attractiveness,
self-confidence, and similar attributes (Dubrin, 2004)..

2.6 Leadership Styles

Leadership style is the way in which the function of leadership is carried out, the way in which
the manager typically behaves towards members of the group. There are many dimensions to
leadership and possible way of describing leadership style, such as for example dictatorial, unity,
bureaucratic, benevolent charismatic, consultative, participative and abdicator.

2.6.1. The Authoritarian (or Autocratic) style

Here the leader informs the employees that what they should do and how should they accomplish
the task, Here the leader does not take the advice of the employees while giving orders. You can
use this strategy when you know exactly how to solve the problem. You can also use this
strategy when you have less time to complete the tasks and the employees are motivated. Some
leaders think that shouting at employees, using abusive and threatening language is authoritarian

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style. This is totally wrong. Yelling at the employee is an unprofessional and abusive style and is
often referred to as bossing people around. This kind of style has no place in a friendly working
environment. Authoritarian style should not be used frequently. It should be used on exceptional
or uncommon occasions. (Mullins, 2006)

2.6.2 Directive style

A directive style exhibited when a leader lets subordinates know what they are expected to do,
gives directions and guidance, asks subordinates to follow rules and procedures, and schedules
and coordinates work activities. A directive style often has negative connotations, which are
generally identified with terms like authoritarian. Telling becomes commanding or become
bossy, informing becomes dictating, clarifying becomes threaten and planning becomes micro
management (Wart, 2008).
2.6.3 Participative/democratic style
Leaders using a participative style consult with subordinates and take their options in to account,
provide suggestions and advice rather than direction, and establish a friendly and creative work
environment for the team as a whole. Behaviors including consulting, coordinating personnel,
developing staff, motivating, building and managing teams, managing conflicts, and managing
personal change by including followers in decision making (Wart, 2008).

2.6.4. A Genuine laissez-faire style

Is where the managers observe that members of the group are working well on their own? The
manager consciously makes a decision to pass the focus of power to members, to all of them
freedom of action and not to this style of leadership behavior and does not want to get involved.
The manager just lets members of the group get on with the work in hand. Members are left to
face decisions which rightly belong with the managers this is more a non-style leadership or it
could perhaps be labeled as abdication (Mullins, 2006).

2.7 Leadership Model

2.7.1 Charismatic Leadership Models
While there are differences among the different leadership theories all share the view that out
standing leaders has the ability to make a substantial emotional impact on their subordinates
(Yukl, 2001). Charismatic leaders go beyond a simple performance reward transaction by
elevating their subordinate’s self-image and self-confidence by a rousing subordinates emotional

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attachment to the leader. Charismatic leaders are also credible because they convince
subordinates of their own strong motivation, enthusiasm and commitment. Their actions and
decisions are consistent with a support the advocated vision (House et al. 1992). Charismatic
leaders model how to show the appropriate behaviors’ that are important to accomplish the
vision and they engage in behaviors’. That are innovative, and often UN conventional (Bass,
2008). They also are risk taker, sacrificing them serves to achieve their vision (Conger and
Kanungo,1998:).
2.7.2 Transactional Leadership Models
Transactional leadership is based on bureaucratic authority, focuses on task completion, and
relies on rewards and punishments (Tracey and Hinkin, 1998). Transactional leadership is
hypothesized to occur when there is a simple exchange of one thing for another. According to
Burns , Transactional leadership occurs when one person takes the imitative in making contact
with others for the purpose of an exchange of valued things. In this relationship leader and the
led exchange needs and services in order to accomplish in dependent objectives
Transactional leaders are considered to be those who focus of the motivation of followers
through rewards of discipline, clarifying for their followers various behaviors. They actively
monitor deviance from standards, mistakes and errors, or they may passively wait for followers
to do something wrong (Bass and Avolio, 2008).
2.7.3 Transformational Leadership
While transactional leadership attempts to attain a certain level of performance through
contingent reward, transformational leadership attempts performance beyond the forget through
mutual stimulation and elevation.
Transformational leadership was first introduced by (Burns 2001) who described it as the process
through which leaders effect a radical change in the behavior of followers.
Transformational leaders increase the confidence of individuals of groups, arouse awareness and
interest in the group or organization, and attempt to move the concerns of subordinates to
achievement and growth rather than existence (Bass, 2008)..
2.7.4 Servant Leadership
Russell, and Stone, (2002) established a practical model for servant leadership and identified
functional and accompanying attributes of servants. The attributes identified by Russell and
Stone provide a reasonable basis for comparing servant leadership with transformational leader
ship. Transformational and servant leadership models have similarities. Both leader ship farm
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works in corporate influence, vision trust respect credibility risk-sharing or delegation, and
integrity, both models emphasize the importance of appreciating and valuing people, listening
mentoring or teaching and empowering followers. In fact the theories are probably most similar
in their emphasis up on individualizes consideration and appreciation of followers.
2.8 The Role of Leader follower Relationship
When we think about leadership, we tend to focus almost entirely on the leader. Yet without
followers, there is no leader. Leadership is participatory: leaders and followers exist in a
mutually beneficial relationship where each adds to the effectiveness of the other. Also,
leadership and followership has a “circular effect”, which continually feed off each other. Better
the followership, better the leadership and vice versa. We are all leaders and all followers
(always reporting to someone higher: Boss, Board of Directors or following someone). For
example, a department head in a university is the leader of staff the department and he/she is also
a follower of the organization dean/director/president of the university. Followership is just as
important as Leadership.
2.9 Leadership Qualities
Leadership in nothing but the quality which makes a person stands out different from other
ordinary employees. It is associated with such a person who has aggressiveness in speech and
action, love for the employees, and who can handle pressure under different circumstance and a
person who is always ready to fight for the rights of employee. A leader is useless without
followers. It is the followers who make a person as a leader and if required overthrow him.
Leaders play a critical role during change implementation, the period from the announcement of
change through the installation of the change. During this middle period the organization is the
most unstable, characterized by confusion, fear, loss of direction, reduced productivity, and lack
of clarity about direction and mandate. It can be period of emotionalism, with employees
grieving for what is lost, and initially unable to look to the future.
2.9.1 Good Communication Skill
Communication is the key to be a great leader. The reason for this is simple: If he possesses the
other nine leadership qualities but if he fails to communicate well, he will never be great leader.
What he can do is communicate with others in the organization about what it can do to move the
company forward, In other words good business relationships. If he cannot establish a good
business working relationship, he is not going to be that leader, that team player. He will not be
able to communicate how it can add long-term value to the company. The modern leaders must
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therefore be equipped with good communication skill and use new ways to do effective
communication. (Christopher Day and Pamela Sammons, 2016).

2.9.2 Honesty
The most valuable asset of a leader is honesty. He must be hones t with both his employees and
the management committee. Another part of his future is integrity. Once a leader compromises
his or her integrity. It is lost. That is perhaps the reason integrity is considered the most
admirable trait. The leaders therefore must keep it above all else. (Christopher Day and Pamela
Sammons, 2016).

2.9.3 Visionary Outlook

Leadership qualities are different for different position. He has to be able to look beyond where
we are today, know where to business is going, and be able to use that vision to move the
company forward; being able to do this is a rare skill indeed. (Christopher Day and Pamela
Sammons, 2016).

2.9.4 Action speaks louder than words

Managers must be able to put aside their concerns to listen to ( and appear to listen) those around
them. As a result, they come know what is going on, and know what is both said, and said
between the lines. They have the knack of appearing to know what people need even if those
needs are not expressed directly. However, knowing what is going on, and identifying the needs
of those around them is not sufficient. The responsive manager also acts upon that knowledge,
attempting to help fulfill the needs of employees, superiors, etc. Responsive managers wield
influence to solve problems for those around them, often before even being asked. (Christopher
Day and Pamela Sammons, 2016).

2.9.5 Selecting a Good Team

Leaders should have a skill of choosing best people for a team. So that, the selected members of
the team will be efficient and productive and also here will be an atmosphere of mutual trust and
respect. (Christopher Day and Pamela Sammons, 2016).

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2.9.6 Ability to Motivate People Around
A good leader must always keep motivating his team mates for good work and should maintain
healthy environment. He must give first priority to safety of workers and sec that they are not
exploited by superiors. (Christopher Day and Pamela Sammons, 2016).

2.9.7 Consistency
Leadership effectiveness is impossible without consistency; every leader has an approach that is
unique to them. Dews not change your personal style radically after all, got you in a leadership
position modify the rough but lake care not to confound your staff by displaying inconsistency.
Your expectations, though subject to modification based on ever-changing business needs,
should remain as constant as possible. The business world is confusing enough without you
adding unwelcome surprises into the mix. Keep things simple and consistent. (Christopher Day
and Pamela Sammons, 2016).

2.9.8 Ability to Stand against Critics

As the success rate increases your critics multiply and become louder. Come to peace with the
fact that you will always have a camp of people who critique every decision you make. They are
generally the ones who are excellent problem identifiers than problem-solvers. Develop our
skills of repelling such critics that they do not diminish your confidence or enthusiasm. It takes
focus and confidence not to be adversely affected by criticism. Strong leaders learn the art of
listening to critics, but ultimately making decisions for the good of the department, no to simply
please the critics. The following quote sums it up nicely: Some of the most talented people are
terrible leaders because they have a crippling need to be loved by everyone as rightly stated by
James Schorr. (Christopher Day and Pamela Sammons, 2016).

2.10 Conceptual frame work

The conceptual framework for the study is depicted by figure 1 below. Conceptualization
attempts to visualize the causality of the research problem prior to understand this research in
detail. In this research it is planned to explain the relationship between leadership style and
leadership effectiveness.

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 Dependent
Independent variable variable

Autocratic leadership

Democratic leadership Effectiveness of

leadership

Laissez faire
leadership

Transactional
leadership

Transformational
leadership
Challenges of
leadership

Figure 1 Conceptual Framework

Source: Adopted from:  Haseeb Ur Rahman (2016) Leadership Styles, Organizational Culture
(sixth edition) Private Banks of Khyber-Pakhtunkhwa, Pakistan

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 CHAPTER THREE

RESEARCH METHODOLOGY AND METHOD OF DATA

ANALYSIS

3.1 Variables of the study

3.1.1 Dependent variable

The dependent variable for this research is Leadership effectiveness

3.1.2 Independent variables

The independent variable for this research is challenges of leadership and Leadership styles
(autocratic, democratic, laissez-Faire, strategic, transformational, transactional, Bureaucratic,
coach style leadership)

3.2 Research design

The team researchers will be use descriptive research type with an assumption that it helps to
generate adequate information about the major challenges in leadership practice. Descriptive
research design is preferred to describe the practice of leadership in Meta Abo Brewery S.Co.
Moreover, the researchers will be use survey method using both qualitative and quantitative data.

3.3 Sources of data

Both primary and secondary source will be used in this study. The primary data is gather from
employees and managers of the company. The secondary data is obtain from books, internet,
related literatures, related research papers and unpublished documents. Primary data sources can
offer first-hand information or data that enhances the credibility of this research. Besides,
additional/supplementary information/ data can be obtained from secondary data sources that can
support or supplement primary data will be gathering.

3.4 Study population

The study participants are all permanent workers and FTE and the target population for this
study was focused on Meta Abo Brewery S. Co. specifically; the respondents were taken from
560 permanent employees, and heads of Meta Abo Brewery S.Co.

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3.5 Methods of sampling
We will be use descriptive cross sectional study design to assess effectiveness of leadership
practice in the case of Meta Abo Brewery Company Sebeta plant, Oromia, Ethiopia. Convenient
sampling procedure will be followed to select representative leaders and employees. The data is
collect by using self-administered questionnaires and stratified sampling technique.

3.5.1 Sample size and sampling technique

For the purpose of this study, the researcher will be probability sampling particularly stratified
sampling technique The research team took 30% of the total population, which are 168; the
research team will be taken the above mentioned percentage due to their working shift. Working
shift in Meta Abo Brewery classified into three. Morning, afternoon and night from those we
took all morning shift workers. That means they are 30% (168). To take night and afternoon shift
workers are impossible because of COVID 19 protocol of the company during data collection
and questionnaire distribution time. The sampling procedure is stratified sampling strategy
because the workers are classified into six heterogeneous layers dependent on their work task.

Table 1: heterogeneous layers of study participants in Meta Abo brewery, 2021

Department No. of Employees No. of Respondents

Human Resource 50 15
Finance 23 6.9 ~ 7
Procurement 57 17.1 ~17
Sales and Marketing 170 51
Production 237 71
Quality Control 23 6.9 ~ 7
Total 560 168

As portrayed in the above table, the quantity of respondents differs because of allocation of
workers by the company and it was influenced by COVID 19. The research team distributed the
entire questionnaire for all morning shift workers.

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3.6 Methods of data collection
Data will be collect through self-administered questionnaires which are adopt from other
sources to collect the desired information and it has two types of question open and closed
ended. The open ended questions helped to find more information which cannot be obtained
from the close ended questions and enabled the respondent to express their views freely. The
interview questions were structured questions and a face-to-face interview was conducted with 6
managers of the company.

The data collection instrument will be prepare by the research team, by advising peoples who
had done the same study knowledgeable persons about the subject matter. The questionnaire is
open and close ended type of questions prepared in English and translated to Amharic to avoid
communication barriers of the respondents.

3.7 Method of Data Analysis

Data analysis will be conducted through Excel. So as to dissect and decipher the crude realities
got from respondents through survey and interview, the researchers utilized quantitative and
qualitative strategy for information investigation. Qualitative strategy is utilized to portray,
subjective information in legitimate way, while quantitative technique is utilized to decipher as
tables, diagrams, frequencies and rate. The collected data will be entered in to Microsoft Excel to
process the statistical information and the result was summarized and presented in table and
charts.

3.8 Ethical consideration

Ethics in business research refers to the set of behavioral principles and norms beginning with
the research from the first phase of the study (Sekaran 2003). The ethical code of conduct should
reflect the behavior of every one participating in the research project, researcher, participants or
moderators

(Sekeran 2003). In this study in order to keep the confidentiality of the data will be given by
respondents are not required to write their name and assured that their response will be treated in
confidentiality. The purpose of the study will be disclose in the introductory part of the
questionnaire and the questionnaires are distribute only to voluntary participants of the
management, marketing, human resource, quality control, production, finance and sales
department staffs of Meta Abo Brewery.
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3.9 Reliability and Validity of the Study
To be sure of the validity, senior colleagues are inviting to provide their comment. The
participants of the study will be also being first informed about the objectives and how to fill,
evaluate and give feedback on the relevance of the contents, item length, clarity of items, and
layout of the questionnaire. Based on the participant’s reflections, the Data collection
instruments are improved and some common technical errors like, unclear and lengthy items,
irrelevant items and duplicated concepts, were corrected before they were administered to the
main and the target respondents of the study. Regarding to verify the content validity of the
instrument, all questionnaires was made with addressing the objectives of the study and
sufficient number of copies, (Totally 168 copies) of questionnaire was disseminated to
employees in Meta Abo Brewery. Among the 168 polls disseminated to representatives of the
Company 143, (which is 85%) were gotten back to the researchers. 19 of the poll were not
returned and from the complete surveys gathered 4 were disposed of by the understudy
researchers they were not filled appropriately.

3.10 Budget and Action time

3.10.1 Action time

S.No Activities Time

OCT. NOV. DEC.

1 Cleaning the introductory and Days

literature with due consideration of
examiners
2 Developing data collection Days
instrument
3 Pilot test Days

4 Revisiting & duplicating the data Days

collection instruments

5 Field data collection Days

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6 Data entry & cleaning Days

7 Data analysis & writing up Days

8 Submitting first draft to advisers Days

9 Considering the comment, write the Days

final paper
10 Final paper submission Days

3.10.2 Budget Breakdown

S.No Description Measurement Amount Unit cost Total cost Remark
A Equipments 1000
Flash disk 32 GB Number 1 300 300 San disk
Backup Hard disk (1 TB) Number 1 2000 1000
B Stationeries 500
A4 size paper Des’ta 3 125 375
Printing expense Questionnaire 100 4 400
Photocopy expense Page 200 1.0 200
C Miscellaneous expenses 1000
Internet service charge Hour 60 18 1080
Prepaid Mobile Card Number 10 25 250
D Subtotal (A+B+C) 2500
Grand total (E+20) 2500

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