WOLKITE UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

IMPACT OF LEADERSHIP STYLE ON EMPLOYEE PERFORMANCE (IN CASE OF

WOLKITE TOWN ADMINISTRATION)

A RESEARCH PROPOSAL SUBMITTED IN PARTIAL FULFILLMENT OF THE

REQUIRMENT FOR BACHELOR OF ART DEGREE IN MANAGEMENT.
 BY: ABINET WOLDEMESKEL

ID NO: BER/029/08ADVISOR: TILAHUN KIDANE (MBA)

JUNE, 2018

WOLKITE, ETHIOPIA

Declaration

Undersign declare that this research paper is my original work and has not been presented for a
degree in other university and that all the material used for this study have been fully
acknowledge.

Name of student .

Signature .......

Date .

This student research paper has been submitted or examination with my approval as a university
advisor.

Name of advisor ________________________________

Signature _____________________________________

Date _________________________________________

Name of examiner __________________________________

 Signature _________________________________________
Date __________________________________________________

ACKNOWLEDGEMENT
First and foremost I would like to give thanks to the almighty God. Then I would like to express
my deepest gratitude to my advisor; Mr. Tilahun Kidane (MBA) for his through follow up and
guidance. Also I want to take the chance to deeply thank my family for their unforgettable and
immeasurable financial and support throughout my academy. Thirdly i would like to thank
wolkite town administration employees who helped me during data collection and contribute
idea towards the successful completion of this paper.
Table of Contents

Declaration...................................................................................................................................................

ACKNOWLEDGEMENT............................................................................................................................I

LIST OF TABLES.....................................................................................................................................VI

ABSTRACT..............................................................................................................................................VII

CHAPTER ONE..........................................................................................................................................1

1 INTRODUCTION....................................................................................................................................1

1.1 Back ground of the study...................................................................................................................1

1.2 Statement of the Problem...................................................................................................................2

1.3 Research questions............................................................................................................................3

1.4 Objective of the Study.......................................................................................................................3

1.4.1 General Objective.......................................................................................................................3

1.4.2 Specific Objective.......................................................................................................................4

1.5 Significance of the Study...................................................................................................................4

1.6 Scope of the study..............................................................................................................................4

1.7 Limitation of the Study......................................................................................................................4

 1.7 Organization of the paper..................................................................................................................5

CHAPTERTWO..........................................................................................................................................6

2 REVIEW OF RELATED LITERATURE................................................................................................6

2.1 Nature of Leadership.........................................................................................................................6

2.2 Theories of Leadership......................................................................................................................6

2.2.1 Trait Theory................................................................................................................................6

2.2.2 Situation Theory.........................................................................................................................7

2.2.3 System Theory............................................................................................................................7

2.3 Leadership in Organization................................................................................................................7

2.4 Importance of Leadership..................................................................................................................8

2.5 Leadership Style................................................................................................................................8

2.5.1 Directive Leadership Style..........................................................................................................8

2.5.2 Supportive Leadership Style.......................................................................................................8

2.5.3 Participative Leadership Style....................................................................................................8

2.6 New Leadership Approaches.............................................................................................................9

2.6.1 Transactional Leadership............................................................................................................9

2.6.2 Transformational Leadership......................................................................................................9

2.7 Employee performance....................................................................................................................10

2.8 Performance Management...............................................................................................................11

2.9 Individual Performance...................................................................................................................11

2.10 Performance and Leadership..........................................................................................................12

2.11 Determinant of Performance..........................................................................................................12

2.12 Empirical Analysis........................................................................................................................14

2.12.1 Empirical review.....................................................................................................................14

CHAPTER THREE...................................................................................................................................16

3 RESEARCH DESIGN AND METHODOLOGY...................................................................................16

3.1 RESEARCH DESIGN.....................................................................................................................16

3.1 Area of the study.............................................................................................................................16

3.2 Sampling techniques........................................................................................................................16

3.2.2 Sample Size determent..............................................................................................................16

3.3 Sampling method.............................................................................................................................17

3.4. Instrument of data collection..........................................................................................................17

3.5 Methods Data analysis...................................................................................................................17

CHAPTER FOUR.....................................................................................................................................18

4. DATA ANALYSIS AND PRESENTATION........................................................................................18

4.1. INTRODUCTION..........................................................................................................................18

4.1 Demographic characteristics of the respondent Table......................................................................19

4.2 leadership style................................................................................................................................20

4.3 What attitude towards on this leadership style.................................................................................21

4.4 What types of decision making style the leader/manager use?........................................................22

4.5 How your leaders make decisions?..................................................................................................22

4.6 How much effective your leader at making decision.......................................................................23

4.7 Special incentive and reward...........................................................................................................24

4.8 How to motivate the employees in the organization?.......................................................................24

4.9 The reason of employees motivation...............................................................................................25

4.10 leadership factors...........................................................................................................................26

4.11 Interactions....................................................................................................................................26

4.12 upgrade the performance of employee and the support of the organization...................................27
 4.13 Support of leader to performance of employees.............................................................................28

4.12 Suggestions....................................................................................................................................29

4.14 Major factors to lead employee to good performance....................................................................29

4.15 The role of leadership on employees performance.........................................................................30

CHAPTER FIVE.......................................................................................................................................31

5. SUMMARY CONCLUSION AND RECOMMENDATION................................................................31

5.1 SUMMARY....................................................................................................................................31

5.2 CONCLUSION...............................................................................................................................31

5.3 RECOMMENDATION...................................................................................................................32

REFERENCE.............................................................................................................................................IX

APPENDIX................................................................................................................................................XI
 LIST OF TABLES
Table 4.1.1 characteristic of the respondents...........................................................................................

Table 4.5.1 show leadership style..................................................... Error: Reference source not found

Table 4.3.1 about special incentive and reward of employees..........Error: Reference source not found

Table 4.7.1 show about the reason of employee motivation.............Error: Reference source not found

Table 4.8.1 shows factors affecting leadership.................................Error: Reference source not found

Table 4.10.1 interaction..................................................................... Error: Reference source not found

Table 3.4.1 on upgrade the performance of employee......................Error: Reference source not found

Table 4.11.1 about support of leader to performance of employee...Error: Reference source not found
ABSTRACT

The basic aim of conducting this research would be to assess the impact of leadership style on
employee’s performance in case of wolkite town administration. Leadership is an important and
necessarily for achieving individual, group and organizational performance. The study would be
carried on wolkite town. The research used both primarily and secondary sources of data. the
primary data collected though interview and questionnaire, the secondary data were collected
from external sources such as data from books, other materials and written documents of wolkite
town administration. In this study the researcher employed random sampling techniques to
identify 45 respondents from the total population of 100 employees.

The collected data were analyzed through using both quantitative and qualitative data analysis.
The outcome of this particular study show that wolkite town administration has some problems
like leaders lacks rational decision problems, lack of special incentives and insufficient reward
system and there are some environmental factors such as, working area weather conditions etc
are investigated. Based on these, the finding forwarded the way to resolve the problem.
Therefore the managers are recommended to make rational decision making to solve the
problem, to give special incentives and rewards in their good performance, prepare good
working conditions.
 CHAPTER ONE

1 INTRODUCTION

1.1 Back ground of the study

Leadership is ability, meaning a leader has a capacity to do something through talent and skill.
Talent is natural ability and skill is proficiency will gain trough training and experience. talent
certainly helps, but it isn’t require there will be many people whose natural leadership ability will
zero but trough training, experience, and most at all , persistence become great leaders(Steven M
Smith2010).

In competitive business environment, organizations rely up on their leaders to facilitate changes

and innovation will require maintaining competitive advantage. Leadership alter over time, with
the change in employee requirement resulting in demand for change in the relationship between
leader and his follower in many ways including coordinating, communicating, training,
motivating and rewarding (Yukl, 1989).

Behling and McMillian(1996) confirm the link between high performance and leadership in
united states (us) will develop a model of charismatic/transformational leadership style will the
leaders behavior is will says to give rise to inspiration , wonder and fear and empowerment in his
subordinates ,resulting in exceptionally high effort, high commitment and willingness to take
risk.

Leadership is every bit as crucial in Ethiopia organizations as it is through the world. Ethiopians
organizations are not different from other worldwide in terms of will strive for performance in
order to globally competitive .as organizations and their environment will be transform quickly
over the past year, a new style of leadership, one that is less bureaucratic and more democratic, is
required in order to ensure the organizations survival and performance (Johnson 1995).

Previous researchers have shown that successful interaction between leaders and their followers
are a central to the overall functions of a company. High quality leader follower relations have
been found to have impact on employee performance, organization commitment, delegation
empowerment and satisfaction (Noomala and syed, 2009).One rational for this study that good
leader follower relationship is vital to ensure the effective function of any company. An effective
leadership program can be of immense assistance to help identify and build leadership qualities
among individuals within the organization. The relationship between leadership and performance
was indirect as well as direct which proves the important of developing
leadermenleadershi2007).

The effective leadership style has concern both the job and employee this leader strives for
maximum performance and employee satisfaction. Performance is the degree of accomplishment
of the task that makes up an employee job. It reflects how well an employee is fulfilling the
requirement of the job often will be confuse with efforts which refer to energy expended.
Performance is measure by in terms of result. The effective leadership style is the life blood of
the performance of employee to all activities by activating the following task such as developing
corporation, directing, discipline controlling and encouraging communication process. In
addition the leader must be able to plan analyze problem, decide, coordinate, communicate,
control, select train, develop, motivate and review. The leader perform the above activities
effectively this is leads to the performance of employee decrease and employee have not perform
the job and increase absenteeism and also turnover is increase (McShane, 2005)

1.2 Statement of the Problem

Leadership is the process by which person exerts influence over other people and inspire. any
organization to achieve its objective if employee exert their maximum effort by using collective
performance in return employees need reward and training with the training and development
programs and also it requires employees performance through activities of effective leadership.
The slow attitude of management in failing appreciates its leadership influence on employee ’s
performance so that appropriate management techniques will be developing result in a great
waste of human resources. The dissatisfaction of employees in the leadership and leadership
style in an organization are more often than not reflect in high labor turn over, frequent
complaint, strike and deterioration in job performance. In order to avoid employee ’s
dissatisfaction management should appraise its leadership style and apply appropriate leader
employees relations in order to create a healthy working environment which will subsequently
improve employees’ performance and that of the organization at large. The dissatisfaction of
employees in the leadership and leadership style/ turn over, complaints, employee absenteeism,
employee separation, specifically involuntary separation; occur when leader (manager) decide to
terminate or lay off employee and such related cases motivate to conduct the study(Jones
Geogrfe,2009)

Because not all leaders wishes to be participative understanding and overcoming such reluctance
to involve followers become important not least as source of resistance is the problem of shared
responsibility and who will be accountable it is on this back ground this research will aim to
assess the extent to which leadership impacts on employee performance(Ajetunmobakinyemi
201th.the leadership has great contribution to improve the performance the organization and the
effectiveness the employees ,but much of the problem of the organization is like absence of close
relationship between leaders and follower's performance carelessness of employees are largely
brought from the impacts of leadership towards the organization (Karampal,2011:230).some of
the organization follows the traditional leadership style, as the result, the study deals the
following problems, such as leaders make discrimination among employees, not accepting
employees complaints, not initiating employees, not giving chance to involve decision making,
and etc. are major problems.

1.3 Research questions.

 What was the attitude of employees towards the leadership style?

 What type of motivational practice use the leader?

 What method the leader follows in decision making?

 What is the relationship between leadership style and employee performance?

1.4 Objective of the Study

1.4.1 General Objective

The general objective of the study was examined to the impact of leadership style on employees
performance in Wolkite town Administration.

1.4.2 Specific Objective

 To assess the employees attitude towards the current leadership style.

 To assess motivational practice of the organization.

 To identity the decision making style of the Administrator.

 To identify the relationship between leadership style and employee performance.

1.5 Significance of the Study

I have confidence that this project research help the organization to look leadership and its
impact on employee’s performance. This might make the organization come up with better
amendment of the existing leadership. The result of this study would be expected to:-

 Make the organization to be aware of the impacts using the appropriate kind of leadership
on organization.

 It helps to knowing the influence of leaders in organization.

 To maintain good and smooth relationship among the employees and manager.

 Finally, it help's others to conduct further study on the subject matter.

1.6 Scope of the study

It was very wide and difficult to study leadership style on each organization because it take long
time and needs Large amount of money for every national or regional level. Since this study
would focus on wolkite town administration.
1.7 Limitation of the Study
The major limitation of the study affect the works of this paper are:-

 Lack of experience in conducting research work before this research paper.

 Absence of enough money and other source like internet, computer etc.

 Lack of adequate information, reference material.

 Lacks of accessibility of relevant data.

Definitions of Key Terminologies and Concepts

Employee Performance; is an important building block of an organization and factor which lay
the foundation for high performance must be analyzed by the organization.
Leadership; is the ability to influence a group toward the achievement of goals. Leadership is
that leader uses his power to secure the support of his subordinates not merely the power but also
understanding of the feeling and problem of the subordinate.
Leadership style; is the result of leader’s philosophy, personality, and experience.
Performance; is a key multi character factor intended to attain out comes which has major
connection with planned objectives of the organization.

1.7 Organization of the paper

The paper was organized under five chapters. The first chapter is the introduction part, deals with
the general aspect of the study, which includes background of study, statement of the problem,
research objectives, significance of the study, scope and limitations of the study, and
organization of the research report. The second chapter is exclusively devoted to the review of
related literature on the needs to identity relationship between leadership style and employees
performance. The third part deals with the methodology part of the paper and it encompasses the
study design, data type and collection method, target population and sample
 CHAPTERTWO

2 REVIEW OF RELATED LITERATURE

2.1 Nature of Leadership

Leadership is the human factor which binds the group together and motivates it to words some
pools and it is the process of stimulating members of the group to words the achievements of
predetermined goals (K.K ahuja 2005).
2.2 Theories of Leadership
According to K.K AHUJA 2005 there are three prominent theories of leadership.

1. Trait theory

2. Situation theory

3. System theory

2.2.1 Trait Theory

It seeks to determine the personal characteristic of an effective leader .the successful leader is
supposed to have the following trait; good personality, tirelessness, reliability, imagination,
capacity to read other mind, make quick decision, intelligence person who are leader are
presumed by psychologically better adjusted to display better judgment and the theory also fails
to mention the trait which one necessary to maintain it. The measurement of trait usually occurs
after person become leader and it is difficult to suggest the trait is prerequisite of successful
leader. Recognizing this limitation the following are few traits which appear to be related to
success full leader.

 Intelligence

 Vision and foresight

 Social maturity

 Acceptance of responsibility

 Adaptability

 Human relation attitude

2.2.2 Situation Theory

It advocated that leadership is strongly affected by situation from which leader emerges and in
which he works it is based on the assumption that this exists on interaction between group and its
leader and the people (employee) tend to follows the leader who is capable of fulfilling their
aspirations. The leader achieving the goals of the group by recognizes the need of the situation
and act accordingly. The drawback of it that is does consider the role of trait of individual it is
only very limited and incomplete view of leadership.

2.2.3 System Theory

Leadership is known by persons act more than by his trait. trait influence act and followers goals
and situation in which coordinates the efforts of the people stimulates them towards the
achievement of their goals in particular situation is called system approach because it considers
all the variables .normally leader follows goals and environment which influence each other to
determine role behavior.

2.3 Leadership in Organization

Political, academic, military, athletic, scientific and business leaders throughout history have the
standard and style of living, the greatness, and destinies of countries and continent .there have
been good and bad leader, reach and poor leaders, young and old leaders. there are many leaders
in our world today, and regardless of the vocational area they survey, they have several common
characteristics .all are highly followers and set high standard of performance for themselves they
are curious, energetic and challenged by the unsolved problems surrounding them and they
eagerly assemble all their energies and resource to overcome any barriers that block the
achievement of their goals(Hossain, Et Al 2006).the most successful leaders any organization
perform task and action away that provides followers with satisfaction fulfillment in performing
the work required and reaching the objective leaders trigger a persons will to do and show the
way and guide group members toward group accomplishment(EranVigoda Gadot2007)

2.4 Importance of Leadership

Leadership is an attempt of influencing the following activities though the communication
process toward the attainment of goals(Jit S Chandan 1999).important elements in this definition
are ;-

Influence; - leadership involves the use of influence and that all relationship can involves
leadership.

Communication; - the clarity and accuracy of communications affect the behavior and
performance of followers.
Goals;-leaders effectiveness is measured in terms of accomplishment of individual, group and
organization.

2.5 Leadership Style

Path goal theory suggests that leaders motivate and satisfy employees in particular situation by
adapting one or more of the three leadership styles described below.

2.5.1 Directive Leadership Style

These are clarifying behaviors that provide a psychological structure for subordinates. The leader
clarifies performance, goals, the means to reach those goals and the standard against which
performance will be judged it also include judicious use of reward and disciplinary
actions .directive leadership is the same as task oriented leadership.

2.5.2 Supportive Leadership Style

This behavior provide psychological support for subordinates the leader is friendly and
approachable, makes the work more pleasant, treats employees with equal respect, and shows
concern for the status, needs, and wellbeing of employees .supportive leadership is the same as
people oriented leadership.

2.5.3 Participative Leadership Style

These behaviors encourage and facilitate subordinate involvement in decision beyond their
normal work activities. The leader consults with employees asks for this suggestions and takes
this idea in to serious considerations before making a decision. Participative leadership relates to
the employee involvement concepts.

2.6 New Leadership Approaches

Organizational internal and external environments have changed shiftily over the last two
decades after the revaluation of information technology and this change demands new leadership
style which is should be more participative and supportive and less directive and
authoritative .the new theories of leadership involved in recent years are called transactional and
transformational leadership (Bass and Avolio, 1990).
2.6.1 Transactional Leadership
Transactional leadership style was described and explained by (Bass 1997).this style is based on
conventional bureaucratic powers and authority. Transformational leaders believed on exchange
of reward and benefit after the successful completion task and assignment .these types of leaders
tries to develop a structure based on work and reward relationship .transactional leaders the
defining and implementation of goals, regulation and standard .transactional leaders spend their
energies on work execution and rely on reward and benefit to improve the workers
performance(Bass and Avolio,200).transactional leadership is work reward exchange based
leadership. This leadership style is more suitable for the traditional organizations having more
rigid structure working in stable environment the followers under the transactional leader do not
perform beyond the expected reward(Meyer and Btha.2000).however in this ever changing
competitive business environment transactional leaders cannot work effectively and a new
leadership style is required which could guarantee the organizational survival and can perform
effectively according to the demands and needs of 21 st century work environment(Brand Heyl
and Maritz, 2000).

2.6.2 Transformational Leadership

Transformational leadership is most extensively researched leadership style and these results
show a positive reaction exists between the transformational leadership style and organizational
effectiveness (Brand ET AL,2000).transformational leaders to transforms the skill ,capabilities,
values and beliefs of their followers. They try to motivate then internally by influencing their
attitudes and assumptions. Transformational leaders articulate and communicate compelling
vision to their follower that inspire and motivate them to achieve extraordinary goals
transformational leaders are truthful and show integrity .thy set clear goals to their followers and
shared vision with them. It is argued that transformational leaders develops and flourish in the
environment in which leaders and their followers are engage positively for the betterment of the
organization (Bass 2009). Transformational leaders not only enhance the skill and capabilities of
their followers but also align followers goals with the goal of the organization .it was found in
several research studies that follower organizational commitment and job performance is
positively correlated to the transformational leadership style of the leaders (Bass 1997).There are
huge members of studies which examined and explored the effect of transformational and
transactional leadership on job performance outcomes indifferent sectors(Judge and Picolo,
2004).This behaviors encourage employees to reach their peak performance. The leader set
challenging goals, expects employees to perform at their highest level, continuously seeks
improvement in employee performance, and shows high degree of confidence that employees
will assume responsibility and accomplish challenging goals. Achievement oriented leadership
applies goal setting theory (Mcshen, Steven L.2005).

2.7 Employee performance

Employee performance is an important building block of an organization and factors which lay
the foundation for high performance must be analyzed by the organization. Employee
performance is the vital element of any organization and the most important factor for the
success of the organization and its performance. It is true that most of the organizations are
dependent on its employee’s destiny. The organization performance is shared and combined
endeavor of all of its employees. Since every organization cannot progress by one or two
individual’s effort, it is collective effort of all the members of the organization. Performance is a
major multidimensional construct aimed to achieve result and has strong link to strategic goals of
an organization (Mwita, 2000).

An effective leadership program can be of on immense assistance to help identify and build
leadership qualities among individuals with in organization. The relationship between leadership
and employee performance was indirect as well as direct, which proves the importance of
developing leaders through leadership development programs (Gadot, 2007).

Performance is the key multi character factor intended to attain outcomes which has a major
connection with planned objective of the organization’’ (Mwita, 2000).

In this modern age, leadership is broadly familiarized and proved through research to be an
important factor for the success of the organization. Now, leadership is being used to influence
and stimulate the people for better performance (Popper, 2005).

2.8 Performance Management

Performance is important us as people and organization. In fact most of us believe that we can
and will improve at what we do and we expect others to improve time as well as (Tirmizi, 2002)
people are an organizations greatest asset individuals and organization have learned about the
importance of the role of people in an organization and how the success of an organization
depends on its people (Bartlet and Ghashal, 1995).

There are two main purposes driving performance management. Firstly, there are the operational
reasons, which lead and control the system. Secondly, on the cultural side, the system can feature
as part of the overall drive to build a more open relationship with employees (Temple, 2002).

The performance management system set out to communicate the link between an organization ’s
mission, strategic direction and the required employee performance a well-executed performance
management system is a medium for managers and employees to develop an un understanding of
what work the mission of the organization requires, the manner in which this work should be
accomplish, and to what extent it has been achieved. Employees should be empowered and
receive support from their manager without removing any of the employees responsibility
(Armestrong and Baron, 1998).

2.9 Individual Performance

Amos, et al. (2004), states that “the effective management of individual performance is critical to
the execution of strategy and the organization achieving its strategic objectives.’’

Performance cannot be left in anticipation that it will develop naturally, despite the employee ’s
natural desire to perform and rewarded and for it the desire needs to be accommodated,
facilitated and cultivated. Individual performance has become a topical issue in today ’s business
environment, so much so that organizations go to great lengths to appraise and manage it
(Armestrong and Baron, 1998).

2.10 Performance and Leadership

Ultimately it is the individual employee who either performs, or fails to perform. In order for an
organization to perform an individual must set aside his personal goals, at least in part, to strive
for the collective goals of the organization. In an organization context the very nature of
performance is defined by the organization itself. Employees are of paramount importance to the
achievement of any organization. Thus, effective leadership enables greater participation of the
entire work force, and can also influence both individual and organizational performance (Bass,
1997).

There is agreement in the literature that leadership is critical factor in the success or failure of an
organization; excellent organization begins with excellent leadership and successful organization
therefore reflects their leadership. Leaders are effective when the influence they exert over their
subordinates works towards achieving organizational performance. It is generally accepted that
the effectiveness of any set of people is largely dependent on the quality of its leadership.
Effective leader behavior facilitates the attainment of the follower ’s desires, which then results in
effective performance (House and Maritz, 1998).

Furthermore, leadership is often regarded as the single most critical success factor in the success
or failure of an institution. Leadership is undoubtedly the critical determinant of the success of an
organization, and these determine organizational performance in the competitive global market.

2.11 Determinant of Performance

Motivation plays a central role in shaping behavior and specifically in influencing work
performance in organizations. Managers are judged not by what they do rather by what they
cause other to do. However, motivation is not the only factor that determines performance. There
are various determinants of performance. Job performance may be viewed as a function of the
capacity to perform or ability, the opportunity to perform and the willingness to perform. The
capacity to perform relates to the degree to which an individual possesses task related skills,
abilities, knowledge and experience. Unless an employee’s knows what is supposed to be done
and how to do it, high level of job performance is not possible. The opportunity to perform refers
to the availability of needed resource at the employed disposal. Willingness to perform relates to
the degree to which an individual both desires and is willing to exert effort toward attaining job
performance. Willingness to perform (motivation) is what this section is all about and no
combination of capacity and opportunity were result in high level of performance in the absence
of motivation (terrfranklin, 2002).

IMPORTANCE OF LEADERSHIP
Leadership plays a vital role in management .good leadership is an integral part of effective
direction it provides the vital to moral of human beings. Morale has roots in good human
relations, which in turn, can boosters and toned up by leadership. Further the importance of
leadership may be studied under the following;-

1. Leadership is indispensable:-Leadership is indispensable in managing the affairs of an

organization successfully and effectively. An effective leader alone can pull out the organization
from darkness to light and push it to the path of development by resolving the various genie
difficulties.

2. It helps in the accomplishment of organizational goals; organization without an effective

leadership is nothing but a muddle a men, machines and materials.

3. Efficient leadership in motivates the subordinates in the works; leadership in fences the
performance of the worker's, higher the motivation better would be the performance.

4. Leadership help's in directing group activities: the main works of leaders is to get the work
done by engaging the group fruitfully. For this purpose, he promotes sincerity of action among
the works. But unorganized group cannot attain the goal, however efficient its members may be
good leadership directs the effort of the group towards the goal.

5. To raise and building of morale:-building of morale is a state of mind and emotions

affecting willingness to work .High morale to high productivity and organizational stability,
employees morale can be raised through better leadership.

6. Efficient leader develop the talents of the individuals; - good leader motivates the worker's
to works he promotes self confidence in them.
• He provides an opportunity to demonstrate their ability.
• Seeks cooperation of the work force and thus created environment of good industrial
relations.

7. Effective leadership mobilizes the work force to higher performance;- leadership

coordinates, all possible efforts, makes plans, policies and programs to develop it to utilize the
available man power effectively, so as to get highest output with minimum human cost.
8. A good leadership strives for fulfilling its social responsibility towards various social
groups. efficient leadership is concerned with the need satisfaction of all the groups, such as
more wages to worker's to improve their standard of living higher productivity and production to
the organization, lower price to consumers, higher national product and increased raven veto the
nation and a fair return to the investors (Dr Manmohan p,. 2009:620).

2.12 Empirical Analysis

This empirical analysis attempts to discuss various studies of impact of leadership style on
employee’s performance. This study will be categorized as analysis of the world in Lows
University.

2.12.1 Empirical review

Leadership style the University of Research of lows research leadership style is the combination
of traits, skills, and behaviors leaders use as they interact with followers. Although a leadership
style is based on traits and skill important components of the employee ’s performance in the
1930, Kurt lewin and associates conducted b studies at the University of Lowa that concentrated
on the leadership style of the manager. Their studies identified two basic leadership styles.

_Autocratic leadership style; _The autocratic leader makes the decision, tells employees what to
do, and closely supervises workers.

_Democratic leadership style: _The Democratic leader encourage participation in decision,

worker's with employees to determine what to do, and does not closely supervises employees.
The autocratic and Democratic leadership style is often placed at opposite ends of the two styles.
 CHAPTER THREE

3 RESEARCH DESIGN AND METHODOLOGY

3.1 RESEARCH DESIGN

In order to accomplish the study the research were used descriptive type of research design.
Because this type of research design enables the researcher to describe the leader ships styles and
its impact on employee performance.

3.1 Area of the study

The study of were conducted on impact of leadership style in employees performance in wolkite
town administration office which is located in wolkite town behind of Ethiopian
telecommunications centers of wolkite branch and which also far from 158 in capital city which
is Addis Ababa and 9km far from our university.
3.2 Sampling techniques
Sampling techniques was the method that used from the total population of the organization to
selecting sample size determination and sampling methods. There is 100 target population are
available in wolkite town administration from the total population of 50 samples were selected.

3.2.2 Sample Size determent

In order generalization and validity of the study taking adequate sample size and appropriate
sampling technique was give better attention and emphasize during the study. By using sample
determinations formula which was developed by YAMANE, (1967).
n=N/1+N (0.1)2 and level of significance 90% and error 10%. In wolkite town administration
there was 100 employees from the total population the study were used 50 samples by the above
formula. n=N
1+N (0.1)2

n= 100
1+100(0.01)
n=100/2 n=50
Where: - N= total population

n= the required sample size

e= margin of error

Source: - Yamane, (1967)

3.3 Sampling method

A population sample was made up of some of the members of the organization. Selecting a
sample is a fundamental element of the study. Simple random sampling method was used for
taking the sample. On the grounds that every single observation of the sample has non-zero
chance is actually include in the sample, and so that bias was eliminate at the outset. And the
selection of any unit does not affect the selection of any other. Therefore the questionnaires we're
distributed to some employees of the company who was selected by the researcher randomly and
Interview was presented to the manager of the administration.
3.4. Instrument of data collection
Primary data were collected through self-administered structured questionnaire and interview.
Structured questionnaire was deployed to collect data from employees of wolkite town
administration. Face to face interview was conducted to gather information from wolkite town
administrators. The secondary data was being collected through deep review written material, in
administration. The reason behind using such documents is helps to get more information on the
research title selected and what should in the research project.

3.5 Methods Data analysis

After data collections were completed presentation of data and its analysis are followed. Data
was only qualitative. Such data was also analyzed and interpreted. Presentation of data was in
tabulated form by frequency and percentage. After the data were processed and analyzed
effectively, the next step will be interpretation of the outcome. at this phase, great care has taken
to make inferences, drawn conclusion and to arrive at feasible finding that are pertinent
leadership style implications, and meaning of research investigation.
 CHAPTER FOUR

4. DATA ANALYSIS AND PRESENTATION

4.1. INTRODUCTION
The study focused on the impact of leadership style on employee ’s performance in case of
Wolkite town administration. This chapter presents the analysis and presentation of data gathered
through questionnaire and interview so this chapter concerns mainly with the characteristics of
the sample population and presentation along with the analysis of gathered data through
questionnaire.

The first part discuss about demographic characteristic of the respondents and second part deals
with questionnaire related to subject that distributed to each respondents in order to collect
relevant data on the subject matter, 50 questionnaires (general profile, close ended and open
ended question) were distributed to 50 employees of the organization and 45 were returned and
interviews made for administration manager.

4.1 Demographic characteristics of the respondent Table

Table 4.1.1 characteristic of the respondents
Source: primary data 2018

According to the information item one of table 4.1.1, when their sex is considered the majority of
the respondents which account about 30(67%) are males and 15(33%) are females. This means
the organization has more number of male employees than females. As we can see from the
above table item 2 the age of respondents about 15(34%) of respondents were between the age
range of 18-25 years and 20(44.4%) of respondents were between 26-35 years and 10 (20%) of
respondents were between the range of 36-45 years and 7(15.5%) of respondents were between
the range of 46-55 years and none of respondents were 56 years old and above. From this we can
conclude that the age interval of 26-35 (44.4%) is high employment situation and the age interval
of 56 years old and above 0% is low employment situation.
Item 3 of table 1 shows that none of the respondents have completed primary school and 1(2.2%)
of respondents have completed secondary school and 4(8.8%) of respondents have completed
technical and vocational training and 10(22.2%)of respondents were college diploma graduates
and 30(66.8%) of respondents were first degree and above that generally the majority of the
respondent were degree and above and the minority of the respondents have completed
secondary school.

4.2 leadership style

Table4.5.1 show leadership style

NO Description

1 Which leadership style important In number In percent

for performance of employee?

Autocratic leader ship 5 11%

Democratic leader ship 30 67%

Lisle fair leader ship 10 22%

Total 45 100%

Source, primary data, 2018

Table 3.5.1 indicates that 30 in number and (67%) of respondents which is most employee of
wolkite town administration responded that the leader ship style which is important for better
performance is democratic leadership style. And 5 in number (11%)of respondents were
responded that leadership style which is autocratic also the remaining (22%) occupied by for
employee’s performance is lassie fair leadership style. So leadership style of wolkite town
administration must follow democratic leadership for better performance.

Interpretation;-Democratic leaders encourage participation in decision making workers with

employees to determine with to do.

4.3 What attitude towards on this leadership style

Description Frequency Percentage

Positive 30 67%

Negative 15 33%

Total 45 100%

Source, primary data, 2018

Based on the above data in the table 4.3 majority of respondents answered the employees are
30(67%) of respondents are answered positive attitude towards leadership style of the
organization and 15(33%) of respondents are replied negative attitude towards the leadership
style of the organization. So majority of respondents are accepted the leadership style of the
organization. Therefore in wolkite town administration there is a positive attitude towards
employees. This help to better effectiveness of organization performance.

4.4 What types of decision making style the leader/manager use?

Description Frequency Percentage

Rational decision making style 13 29%

Bounded rationality 7 15.5%

Intuitive decision making 25 55.6%

Total 45 100%

Source, primary data, 2018

Depending on the above data majority of the respondents replied that, 25 in number and(55.6%)
of the respondents answered intuitive decision making style were used and 7 in number (25.4%)
of the respondents are answer bounded rationality and the other were 13 in number and(29%) of
respondents are replied rational decision making style. Therefore the analysis is most of the
employees are replied intuitive decision making style better.

4.5 How your leaders make decisions?

Description of decision making Frequency Percentage

Make decision by him/herself 5 11%

Participate employees in decision making process 30 67%

Encourage individuals or group independently 10 22%

Others -- --

Total 45 100%

Source, primary data, 2018

Depending up on the data above, majority of the respondents replied that, 30 employees in
number and (67%) of respondents are answered the leader participate employees in decision-
making process. The others are decision making by him/her and encourage individuals or group
independently was minority group. Which shows that, the decision making process of wolkite
town administration was decentralized. It is the extended to which power and authority of leader
is systematically distributed /dispersed through the employees.

Interpretation;- Effective leadership enables greater participation the entire work force and can
also influence both individual and organization performance (Bass,1997).

Participative leadership style encourages and facilitates subordinate involvement in decision

beyond their normal work activities.
4.6 How much effective your leader at making decision

Description Frequency Percentage

High 10 22%

Average 25 56%

Less 10 22%

Total 45 100%

Source, primary data, 2018

As indicated in the above table, 25 in number and (56%) of respondents replied, on average the
leader is effective at decision making. This implies that, the leader defines the goals and
objectives of the organization, sets short and long terms plan and generates alternative means of
solving organizational problems. This also clarifies the effectiveness of decision making
performance better.

4.7 Special incentive and reward

Table 4.3.1 about special incentive and reward of employees

Description Yes No

Frequency Present Frequency present

Does the 15 40% 30 60%

organization
provide special
incentive and
benefit for
employees’.

Source: primary data, 2018

The above table shows that 40%of the sampled respondents answered yes, that the organization
does not provides special incentive and reward for them. The remaining 60%of them responded
no. From the above table, it can see that the organization didn't provide special incentive and
reward for employees in their good performance. If there are not incentives and rewards in
organization the performance of employees cannot be effective. Therefore there is need of to
give necessary incentives and reward system

4.8 How to motivate the employees in the organization?

Description Frequency Percentage

Based on their good performance 10 22%

In their good behavior 5 11%

Persistence of efforts toward attain 23 51%

organizational goal

In their absenteeism of work place 2 4%

By cutting their salary 5 11%

Total 45 100%

Source, primary data, 2018

Regarding to the above table, motivational practice of the employees described on 23 in number
and (51%) of respondents are replied persistence of efforts toward attain organizational goal and
10 in number (22%) of employees filed based on their good performance there, also the other is 5
in number (11%I)of the respondents were answered in their good behavior. Therefore most of
the respondents answered motivational practice was persistence of efforts to attain organizational
goal. In addition to in organization there is motivational practice.

Interpretation:-Motivation is the interest state that causes on individuals behave in the way that
ensures the accomplishments of some goal. People are motivated to perform behaviour that
satisfies their personal need.

4.9 The reason of employees motivation

Table 4.7.1 show about the reason of employee motivation

No Description Respondent
 1 What do you think the reason In number In percentage
that employee motivation?

To increase effectiveness of 5 11%

employees

To make the organization 5 11%

effective

To encourage employees 20 44.4%

To increase responsibility of 10 22%

employees

To initiate worker 5 11%

Total 45 100%

Source: primary data 2018

Based on the above data in the table, indicated the reason that employees motivation 20in
number (44%) of the respondents are replied were to encourage employees and to make the
organization effective, to increase responsibility of the organization, and initiate worker was the
other parts. Therefore the majority of respondents are replied the reason for employees
motivation are to encourage employees.

4.10 leadership factors

Table 4.8.1 shows factors affecting leadership

Leadership factor Frequency Percentage (%)

 Personal quality and ability 20 44.4%

Subordinates and their 10 22%

quality and ability

The position power 7 25%

Environmental factor 8 18%

Total 45 100%

Source: primary data, 2018

From the above table 44% of the respondents answered factor affecting leadership style were
personal qualities and abilities, and followed by the position power 15% are the main leadership
affecting factors in the organization, 22% of the respondents equally responded that subordinates
and their quality and ability also the other is 18%of environment factor are affecting the
organization. The data from the table implies that a leader ship factor in wolkite town
administration has personal quality and ability and the position power are the highest.

4.11 Interactions
The way employees and employees and leader and employees communication among themselves
and work with each other in the organization are forwarded as a question for employees by the
researcher, and their response to the question is shown in the table below.

Table 4.10.1 interaction

Interaction Excellent Good Moderate Poor

No % No % No % No %
 Leader and employees, employees and 5 11% 15 33.3 20 44.4 5 1
employees % % 1
%

Source, primary data, 2018

From the table, the respondents answered the interaction between employees and leaders, 44%
moderate, 33% good, 11% excellent and 11% poor.

According to the data, it can be observed that leaders and employees get along together and there
is a smooth relationship between them, so the smooth relationship between them is effective to
leadership.

Interpretation:-The relationship between two people is sees nationally deseed in management. In

public and politics, leadership does not require relationship. It is merely interaction between two
parties. Without interactions no one it is a leader or follower. The leader or follower's interaction
particular subject and followers follow the leader’s advice for attaining the objectives.

4.12 upgrade the performance of employee and the support of the organization
Table 3.4.1 on upgrade the performance of employee

No Question Response Respondents in total

No %

1 Does the organization upgrade the Yes 18 40%

performance employee?
No 27 60%

total 45 100%

Source; primary data, 2018

If your answer question no “1” is yes what kind of support did you give to the employee?

The way that what to organize and give right work

Promotion through training and development

Financial and non-financial support

Job upgrade and educational training

Giving deferent promotion and benefit

Upgrade the level of education

According to the above table 3.4.1 of item 1 and 2 about the respondents 18(40%) responded
wolkite town administration upgrade performance of employee were and they supported by
leadership and giving the above response .the rest 27 (60%) of the respondents responded that
wolkite town administration not upgrade the performance of employee and they are not
supported by the leadership. Therefore the majority of the respondents are answered there is no
upgrade the position of the employees, it not necessary for the organization and the employees.
From this we can conclude that the organization greater than half of employees of the
organization has not support given the employees to upgrade their level of performance in the
respective to their job.
4.13 Support of leader to performance of employees
Table 4.11.1 about support of leader to performance of employee

No Respondent
Description

1 How do you understand about Low Medium High Total

the support of leadership to
overall performance of the No 7 27 10 45
employees?
Percentage 16% 60% 24% 100%

Source; primary data, 2018

Table 3.11.1 indicates that 60% of respondents were responding that the support of leader to
overall performance of employee is medium were as 24% of the respondents were respond to
high and the rest 16% were respond that low. We understand from the table that the employee of
wolkite town administration understand that the support of leadership on the performance of
employee were medium. In case it sufficient and appropriate.
4.12 Suggestions
At last the researcher asked for their suggestion on the leaders of the organization. It is
summarized in the following way:
• Leadership is very important if has personal quality and ability.
• Improve the relationship between managers and employees through democratic way.
• The leaders must be motivating their staff.
• The leadership should be motivating their employees to create a good job position.
• Structural improvement is needed.
• Most of leaders are too old and must be build new generation.
• The organization leadership is medium to solve the problem of the organization.
1. What are the major factors that contribute to lead the employee for good performance?
4.14 Major factors to lead employee to good performance
In interview question the researcher try to assess there are major factors that contribute to lead
for good performance the major factors are:
• Giving training and development opportunities to the employees.
• The leadership believe on discussion and accepting or listening the voice of employee
when raise important ideas.
• Participation of employees on developing plan and making decision.
• Giving technical assistance and training.
• Giving different promotion and benefit.

2. What are the roles of leadership on employee performance?

4.15 The role of leadership on employees performance

From interview session regarding the role of leadership on employee ’s performance, the human

resource said that there are some roles:

 • Team building and support the employees towards initiation for good performance.

• Effective communication among the leader and employee.

• Effective partnership/collaboration/networking dialoguing/negotiating.

• Visionary and strategist toward employee’s performance.

CHAPTER FIVE

5. SUMMARY CONCLUSION AND RECOMMENDATION

The researcher perspective on the various facts of the study about the impact of leadership style
on employee’s performance in Wolkite town administration in this chapter the researcher propose
to present barely and summary of the study and explore the implication of major findings.
5.1 SUMMARY
The purpose of this study was to assess the impact of leadership style on employee’s performance
many question were asked to get the required information. Questionnaire consists of 19 items for
employees and interview for administration management of the organization.

In this finding and analysis part of the researcher has used research method in this section
assessed the background of the organization performance of leadership, leader ’s decision making
style, employee’s attitude towards that leadership style, performance of the employee ’s
relationship between employees and leader interaction.

5.2 CONCLUSION
Based on data presentation, analysis and interpretation of the previous chapter the following
conclusions are drawn.

• It can be observed that Wolkite town administration there is not provides special
incentive and reward for the employees of the organization.

• The organization has not knowledgeable, effective and good leader to upgrade and
increase the performance of employees.

• The employees understand that the leadership style which is important for good
performance of employee as well as organization is democratic leadership style.

• From the finding the main leadership affecting factor in the organization are personal
qualities and abilities. This shows that leaders of their organization have supervisory
ability, Inelegancy, initiative which is beneficiary to them as well as the organization.
The other factor is the position power.

• Leaders use their authority in the right way, which implies that leaders in the organization
use their authority in clear and consideration manner to obtain good follower.

• The interaction between employee and leaders is moderate.

• The employees understand that the support of leader to overall performance of employee
and organization is medium.
 • From the finding, the roles of leadership on employee performance are team building and
support the employees to ward initiation for good performance, effective communication
among the leader and employees are the major roles.

• Giving training and development opportunities to the employees, giving different

promotion and benefit, participation of employees on developing plan and making
decision are major factors lead employees to good performance.

5.3 RECOMMENDATION
By considering the respondents suggestion the researcher would like to recommend the
following for the organization.

• Less Promotion and motivation are the major cause for employee dissatisfaction in the
organization; Wolkite town administration should increase employee satisfaction by
increasing promotion and motivation.
• The organization should provide special incentive and benefit for employees to motivate
them.
• The leaders of the organization should improve its performance.
• The organization should increase employee satisfaction by increasing promotion and
motivation.
• The management of the organization should prepare training and development program
to increase employee performance.
• The leaders should build a team spirit in the organization for collaborating and
negotiating with their employees.
• Improve the relationship between leaders and employees through democratic way.
• The leadership should be motivating their employees to create a good job position.
• Some of leaders are too old and must be build new generation.
• The organization leadership is medium to solve the problem of the organization
• The leaders of the organization must improve or avoid the following problem.
• Increase wage, promotion and motivation
• Make good or smooth relationship with each employee
• Training and development
REFERENCE
 Armstrong and Baron.A 1998 a characteristic of personnel and development London
united kingdom.

 Bass.B.M and Apollo (1997)’’ concept of leadership’’ IVECHIO, R.P. (Ed), leadership;
understanding the dynamic of power and influence in organizations. Notre Dame;
University of Notre Dame

 Brand, C. Heyl, G and Maritz, D. (200) ‘’leadership ’’ in MEYER, M. And BOTHA, E.

(Eds), organization development and transformation in South Africa, Durban;
Butterworth

 Brettlet Anthony Heyward (2005) relationship between employee performance,

leadership and emotional intelligence in South Africa.
 David, A. Whetter KIM .S Cuneray developing management skill 8 th edition university of
Michigan.

 D.R Kelly Sabol (1992) appraising relational qualities of leadership and followership
paper presented 2th centaury international congress of psychology, Brussels, Belgium
(July 24)

 Eran, Vigoda, Gadot (2007) leadership style, organizational politic and employee
performance.

 Feidler and North House (2007) leadership; theory and practice, 4 th edition, California,
London, New Delhi, stage publications

 J.Temple (2002) school and economics and finance..

 James Mc Carrager BURNS (2003) school of global leadership and entrepreneurship

Regent University Virginia us published mcb up ltd.

 Jit. S. Chandan (1999). Management theory and practice, vikas publishing house pvt ltd

 Noormala A.I and Syed the effect of leader member exchange on organizational justice
and organizational citizen ship behaviour; empirical study European journal of social
science.

 Mwita J.I (200) performance management model; a system based approach to system
quality. The international of journal of public sector management

 Terr Franklin (200) ‘’principle of management’’8th edition.

 Tirmizi, S.A (2002) a model for leadership research and development.

 APPENDIX
WOLKITE UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

Dearrespondent
This questionnaire is designed by a third year management student at Wolkite University to
collect data for research which is on partial fulfilment of BA degree in management. The focus
of research is to identify the impact of leadership style on employee performance in wolkite town
administration your genuine response for the following questions is extremely important for the
purpose indicated and you are kindly requested to corporate and feel free in responding to
questions.

Thank you for your support!!

General instruction;-

No need of writing your name

Encircle the letter you select

Part one; General Profile

Sex a) male b) female

Age a) 18-25 b) 26-35 c) 36-45 d) 46-55 e) 56 and above

Educational classification a) primary school completed b) secondary school completed

c) Technical and vocational training d) College diploma

e) Degree and above

Job position a) manager b) supervisor c) employees

Years of experience a) 1-5 b) 6-10 c) 11-15 d) 16-20 e) 21 and above

Part two question related to the subject

What type of leadership style the organizations follow?

a) Autocratic b) Democratic. C) Laissez fair

7) What attitude towards this leadership style?

A) Positive B) Negative

8) What types of decision making style the leader/manager use?

A) Rational decision making style B) Bounded rationality C) Intuitive decision making

9) Does the organization provide special incentive and benefit for employees?

A) Yes. B) no
10) If your answer for question 9is yes what kind of support did you give for employees? The
question related to managers . ........

11) How your leaders make decisions? a) Makes decisions by him/herself

b) Participate employees in decision making process. C) Encourage individuals or group

independently. D) Others specify..............

12) How to motivate the employees in the organization?

A) Based on their good performance B) In their good behaviour C) persistence of effort

towards attain organizational goal. D) In their Absenteeism of work place.

E). by cutting their salary

13) What are the factors that affect leadership in the organizational performance?

Personal qualities and abilities

Subordinates and their quality and ability

The position power

Environmental factor

14) How much effective your leader at making decision?

A) High B) Average C less

15) How is the level of interacting and communicating between the employee and the leader? a)
Excellent b) good c) moderate d) poor

16) How do you understand about the support of leadership to overall performance of the
employees? a) Low b) medium c) high

17) What is your suggestion about the organization leadership ?

INTERVIEW FOR MANAGER

1 what are the major factors that contribute to lead the employee for good performance?
2 what are the role of leadership on employee performance?