Rift Valley University, Gullale Campus

Department of Business Management

THE ROLE OF LEADERSHIP STYLE ON EMPLOYEES PERFORMANCE (IN CASE OF

ADA’A BERGA WOREDA PUBLIC ADMINISTRATIVE OFFICE)

A RESEARCH PAPER SUBMITTED TO DEPARTEMENT OF BUSINESS

MANAGEMENT IN PARTIAL FULFILMENT OF THE REQUIREMENT OF
BACHLLER OF ART DEGREE IN BUSINESS MANAGMENT

PERPARED BY:

Name ID No
1. Birhanu Bayisa 0011/20
2. Irana Hailu 0026/20
3. Sena Yoseph 0044/20
4. Roman Asefa 0070/20
5. Lensa Kan’a 0037/20

Advisor: Mr. Fanta T.

December 2023

Addis Ababa, Ethiopia

i
Abstract
This study was tried to assess the role of leadership style on employee performance in
Ada’a Berga woreda public administrative office and also listed the back ground,
statement of the problem, research question, specific objective, general objective,
significance, limitation, scope, organization of the paper, review literature concerning
research design, descriptive research used by the researcher in order to present back
ground information in collecting the data. Both primary and secondary data are collected
and investigated in detail. The researchers used sample of 136 employees out of total
1067 population. The data gathered from the respondents are carefully arranged and
categorized in to suitable from and merging in to similar group and it converted in to
percentage and show by tables in detailed. Finally, conclusions and recommendations had
been given in each problems identified.

i
ACKNOWLADGEMENTS
First and for most I would like to thank the almighty (God) for his innumerable support in
all aspects of my life. Secondly, I would like to express my sincere appreciation to my
advisor: - Mr. Fanta Ta for his valuable advice and constructive critiques to make this
proposal work successful. Special thanks goes to all Ada’a Berga public administration
office management and employers who have been willingly participative in filling out the
interview and the questionnaires’ am also grateful to my family and all my friends who
have supported me for successful accomplishment of this paper.

ii
Table of Contents
Abstract .......................................................................................................................................................... i
ACKNOWLADGEMENTS ......................................................................................................................... ii
CHAPTER ONE ........................................................................................................................................... 1
1. INTRODUCTION .................................................................................................................................... 1
1.1 Background of the study ..................................................................................................................... 1
1.2 Background of the organization .......................................................................................................... 2
1.3. Statement of the problem ................................................................................................................... 2
1.4 Research question ............................................................................................................................... 3
1.5 Objective of the study ......................................................................................................................... 3
1.5.1 General objective ......................................................................................................................... 3
1.5.2 Specific objective ......................................................................................................................... 3
1.6 Significance of the study. .................................................................................................................... 3
1.7 Limitation of the study ...................................................................................................................... 3
1.8. Scope of the study .............................................................................................................................. 4
1.9 Organization of the Paper ................................................................................................................... 4
CHAPTER TWO .......................................................................................................................................... 5
2. REVIEW OF RELATED LITERATURE ................................................................................................ 5
2.1 Definition of leadership ...................................................................................................................... 5
2.2 Types of leadership ............................................................................................................................. 5
2.2.1 Democratic leadership.................................................................................................................. 5
2.2.2 Autocratic leadership ................................................................................................................... 6
2.2.3. Laissez -fair leadership ............................................................................................................... 6
2.2.4. Situational leadership .................................................................................................................. 6
2.2.5 People oriented leadership ........................................................................................................... 7
2.2.6. Charismatic leadership ................................................................................................................ 7
2.3 The important of leadership ................................................................................................................ 7
2.4. Factors to be considered for having good leadership ......................................................................... 8
2.5. Lists of good leadership quality ......................................................................................................... 8
2.6 Empirical review ................................................................................................................................. 9
2.7 Research Gap ...................................................................................................................................... 9

iii
 2.8 Conceptual Framework ..................................................................................................................... 10
CHAPTER THREE .................................................................................................................................... 11
3 RESEARCH METHODOLOGY ........................................................................................................... 11
3.1 The Study Area ................................................................................................................................. 11
3.2 Research design ................................................................................................................................ 11
3.3 Target population .............................................................................................................................. 11
3.4. Data type and source ........................................................................................................................ 11
3.5 Data collection method ..................................................................................................................... 11
3.6 Sampling method .............................................................................................................................. 12
3.7 Sampling size and techniques ........................................................................................................... 12
3.8 Data processing and analysis ............................................................................................................ 13
3.9. Ethical consideration ........................................................................................................................ 13
CHAPTER FOUR....................................................................................................................................... 14
4 Work Plan and Cost Budget ..................................................................................................................... 14
4.1 Time budget ...................................................................................................................................... 14
4.2 Cost break down ............................................................................................................................... 15
Reference .................................................................................................................................................... 16
Appendix ..................................................................................................................................................... 17

iv
 CHAPTER ONE

1. INTRODUCTION
1.1 Background of the study

Leadership is the process of influencing people and providing safe environment for them in
addition with objective of organization (Bantie,W 2006). Leadership is a winning combination of
person’s trait and ability to leading; welding performance; influencing people and providing safe
environment for their activity (Richard; 1995). Leadership is a process which involves setting
direction for the organization; aligning people with objectives through organization
Communication and motivation of people to act by empowerment and need gratification
(Lasster, 1980).

Leadership in country is the process of influencing other to understand and agree about what
needs to be done in organization levels and how to do it by facilitating of individuals and
collective efforts to accomplish shared objectives (Rost, 1991). Leadership is the ability to
influence the competence or motivation of individuals in a group to bring meaning full change
for organizations good success (James, 1990). Leadership in organization is the process of
guiding and directing the behavior of the people in work environment. Leadership is the process
undertake in government, business companies, organization and the public enterprise regardless
of their size and the nature of any organization (Debora, 1956).

Leadership process includes; practice of planning work allocation, organizing, controlling and
decision making in the progress of our modern business companies (Rosni, 1997). Leadership is
the process undertake in government, business companies, organization and the public
enterprises regardless of their size and the nature of any organization (Debora, 1956). Leadership
process includes; practice of planning, work allocation, organizing, controlling and decision
making in the progress of our modern business companies (Rosni, 1997).

1
1.2 Background of the organization

Ada’a Berga public administration office has 1067 employees. It is located in Oromia region of
West Shawa around Holeta Town which far from 60km Addis Ababa and 30 km From Holeta
respectively.

1.3. Statement of the problem

Leadership is the art of motivating the group of people activity for achieving common goal.
Good leadership is the one who made sustainable impacts on employees for certain development
whereas the bad leaders are those which lacks necessary skill, ability, performance and other
overall quality of leadership competencies (Mullins, 2004).In our observation Ada’a Berga
woreda public administration office leaders threat workers or machine believing also manage
their time effectively job performance from workers, in response of this workers don't handle
their worker properly.

Leadership style and employee performance have negatively co-related in the organization
(Banio 2014).Leadership style theoretically should be adopted to demand situations requirement
of peoples and challenges of organization faces. However in practical the preliminary
investigation result shows there are different problems related with application of leadership for
motivation and performance. The administrative practice mostly is not meeting the demand of
situation fully (Robert 2001). Conduct on natures and impacts of leadership style and he design
to describe the context of leadership activity and the system of reward even if he solved the
above problems. There is UN solved problems with regard to leadership styles with the issue of
competency, reward, performance and conflicts.

Despite the above fact; the situation in Ada’a Berga Woreda with regard to leadership reveals
some problem. This is reflected in high employee turnover, carelessness in job performance,
lack of belongingness and similar related problems.

To investigate the role of leadership style on employee performance in Ada’a Berga Woreda
public administration office not study or assess by other researchers.

2
1.4 Research question

1. What type of leadership does the leaders follows in Ada’a Berga Woreda?

2. In what extent does leader’s competency affect employees’ performance?

3. What types of decision making do the organization leaders follow?

1.5 Objective of the study

1.5.1 General objective

The general objective of the study is to assess the role of leadership styles on employee
performance of Ada’a Berga Woreda public administrative office.

1.5.2 Specific objective

1. To investigate type of leadership style does the leaders of Ada’a Berga Woreda follow.

2. To understand the level of leaders competency with employees performance.

3. To know the kinds of decision making that Ada’a Berga Woreda follow.

1.6 Significance of the study.

Leadership is important function of management for achieve organizational goals. This study
would help full for many purpose among the significance some of that are it would help for the
organization to know their leadership style based on employee need. It shows organizational
strength and weakness that helps to reduce their weakness and increase their strength.

1.7 Limitation of the study

In conducting this study the researcher faced several problems which have negative impact on
this paper. One of the problems that hinder the researcher objective was unavailability of
compiled documents in the office.

 Lack of sufficient time to collect data.

 Absence materials equipment and suppliers that have to be provide by the university.

3
1.8. Scope of the study

This study is focused on the role of leadership style and its effect on employee performance. So,
the study is point out the effect of leadership style on employee performance. This study is
conduct in Ada’a Berga Woreda public administrative office located in Oromia region in West
Shawa Zone around Holeta town. The study would be identified the existing organizational
leadership style and point out its effect on employee performance

1.9 Organization of the Paper

The whole content of the study would present in this paper by dividing the content in different
chapter. The first chapter contains back ground of the study, back ground of the organization,
statement of the problem, objective significance, scope of the study and organization of the
paper. The second chapter is about the review of related literatures. The third chapter of the
paper contains the research design or research methodology. The fourth chapter is all about data
analysis and interpretations and the fifth chapter includes recommendations and conclusion.

4
 CHAPTER TWO

2. REVIEW OF RELATED LITERATURE

2.1 Definition of leadership

Leadership is the ability to influence people towards the attainment of organizational goals.
(Danny,S) Leadership is social relation between two or more peoples in which leaders influences
the social knowledge, goal acceptance and action of followers do (Richard 1995). Leadership is
the ability of managers to influence subordinates to work with confidence and enthusiasm or the
ability to persuade other seek defend objective enthusiastically (Adair). Leadership is influence
or the art or process of influencing people so that they strive willingly and enthusiastically
towards the accomplishment of group goals. Leadership is the process of influencing people and
providing safe environment for them in addition with objective of organization (Bantie, W
2006).

Leadership is formulates long-term objective for reforming the system plans strategy and tactics.
Exhibit leading behavior acts to bring about change in other congruent with long term objective.
Use empowering strategies to make followers internalize values (Robbins 1943). Leadership can
also encourage compliance by measuring key results; put simply what gets measured gets done
progress in burning and recruiting minorities ,women disabled workers and older workers
should be tracked (Kenneth,G 2011).

2.2 Types of leadership

In commercial world leadership is the most important action that has to be considering if you
want to get the work done collectively. It is believed that generally there are four primary form
of leadership namely autocratic, democratic, laissez Fair and situational.

2.2.1 Democratic leadership

Democratic leadership is characterized by participation of the group and utilization of its

opinions. Initiative by those being led is encouraged. The leader suggests possible actions with
his recommendations but awaits approval of the group before putting them in to effect. It
emphasis the groups interest service to satisfy them (Mesert, M 2001)

5
 Features of democratic leadership

 Emphasize a group of effort

 There is general or broad supervision
 Uses tow way communication
 High moral and positive attitude

2.2.2 Autocratic leadership

Autocratic leadership is based on the premise that leadership is aright and is vested in and to the
same degree an individual has authority. Tasks are assigned, facilities, provides and direction
given without consultation with the employee carrying out the work. The authoritarian leaders
believe that because of his position he can decide best what should be done.

Features of autocratic leadership

 Gives definite instruction

 Demand compliance
 Emphasis task performance
 Exercise close supervision
 Uses coercion

2.2.3. Laissez -fair leadership

The laissez -fair leaders depends completely on his subordinates to establish their own goals and
to make their own decision. This type of leadership is associated with not leading at all or falling
of supervising team members; results in lack of control and higher cost; bad services or frailer to
meet deadlines this is unengaged in leadership control and simply lets people do their tasks with
leaders exerting few control (Dost 1991).

2.2.4. Situational leadership

It is now being recognized the effectiveness of one or the other leadership style depends on the
situation. The manager in developing his own style of leadership need to restrict his choice from
among a limited class of style or approach, the style a manager chooses may depend up on the
following situations.

6
  Forces in the manager such as his value system, his confidence in subordinates.
 Force in subordinate.
 Force in the situation example type of organization (Yigremew,A,2006).

2.2.5 People oriented leadership

This leadership style is giving more attention for people for increasing effectiveness, efficiency,
supports and training developing personal job satisfaction and genvine interest to do a good job.
It deals on the campy with the effect influence of employees by ensuring the above characters.

2.2.6. Charismatic leadership

Charismatic leadership in spire their followers to do things or to do things better. Charismatic

leadership by influencing energy and engines in to their team member (Munso 1905)

2.3 The important of leadership

The important of leadership is the key in gradient to success full business. So understanding the
importance is a key in our business success. Leadership has so much influence in our lives. A
leadership is the one who inspire and influence people to accomplish organizational goal. They
motivate others to pursue actions properly. Leadership development is defined as an effort to
enhance learners ability, successful Leadership development requires a lot of ability and
diplomacy for fruit less and dis agreements development can be under taken in method of
organization choose and conditions because, leadership development is absolutely vital in any
companies regarded less of industry due to tearing purpose of team for executives teams for run
business smoothly and operating well in addition with ongoing and future success. The following
points are just the importance of leadership concern.

 Initiate action -leader is a person who starts the work by communicating the policy
and plans to the subordinate from where the actual work done.
 Motivation -a leader process playing an incentive role in the concern work; the
motive the employees with economic or non-economic rewards and getting
sufficient work from subordinate.
 Providing guidance - leader provide guiding role for subordinate by instructing
subordinate the way they have to perform their work effectively.

7
  Build work environment - it helps for stable and safe work facilitates if, leader listen
to their problems and overcame it in addition with wearing human behavior

2.4. Factors to be considered for having good leadership

 Self-understanding a strong leader is honest with time self and understand his limitations
by being able to gauge delegate responsibility of those around him self-understanding is
essential first step in inter personal skill development (Richard። 1995).
 Communication- good leaders understand how and when communicate and excellent
leader can develop skills for leadership. The leader must able to share knowledge and
idea to transmit sense of urgency and other purpose. Respect business leaders need to
give respect from multiple groups’ people means of getting effective followers.
 Experience a leader knows to react in various business situations because it is essential to
the development of good business leader and it is derived from real life situations by
contest and learning methods.

2.5. Lists of good leadership quality

As a leader a person is expected to motivate, inspire and lead by the following.

Good leadership qualities.

 His character is simple -it is skill t.6.he most important qualities of good leadership and it
should have known characters by followers for the facilitation or task.
 He should possess good communication skill -a leader must have good capability of
listening, understanding and interpreting because this is key for every activity.
 He is visionary -the vision of leader helps to make it bigger futures dream, leader
without vision is commander with disable health and it deals and it deals with
foresightedness future aim.
 capacity building officer- to have best decision at the top makes leaders and followers
smoothly related with each other and they becomes effective so, it is important aspect.
 Leaders have positive attitude- one of the most important quality leadership is the ability
to think positively however, it must be fair optimism and over optimism are different
unless, it can crate.

8
2.6 Empirical review

According to the business writer Daniel (2002) categorized different leadership style. The
suggest that leadership style could be explained on a scale ranging from autocratic through
democratic to participative to show the degree of authority and decision maker power of leader
and employer.

According to Aydinetal (2013) leadership influence organization out comes such as job
satisfactions organization commitment and turn over intention and these variables are related to
each other’s, with in the work place employee job satisfaction means a pleasurable positive
emotional state resulting from the appraisal of one job experience.

According to Koudr (1999) leadership is to deal and cope with change, focusing on long term
and the big picture, not always doing to safe himself in fact to take risks, and concentrating on
people and their valves not just the bottom line.

According to Mullins;re (2001) of participative leadership is that the process and behavior
which allows for the development of additional leaders who can serve the organization at a later
date or in future, because, advocate of this leadership who favor this style state that this type of
leader encourage active involvement on the part of employees on the team.

2.7 Research Gap

From the foregoing review of relevant literatures, it is evident that research in the area of role of
leadership styles on employee performance has not been does in a more comprehensive
approach. The study research gap is demonstrated by the scarcity of empirical studies on role of
leadership styles on employee performance. From the survey of relevant literature, it has be find
that there were no specific to Addis Ababa on link of the role of leadership styles on employee
performance of Ada’a Berga Woreda public administrative office.

9
2.8 Conceptual Framework

The studies provide a comprehensive overview of the role of leadership styles on employee
performance. They suggest that the effectiveness of a leadership style can depend on various
factors, including the nature of the task, the personal characteristics of the employees, and the
organizational context. A conceptual review on the impact of leadership style on employee
performance by Viduni Udovita. This paper explores the theoretical aspects of how different
leadership styles, such as transformational, transactional, and laissez-faire, affect the
performance outcomes of employees. It also provides some research directions and priorities for
future studies.

10
 CHAPTER THREE

3 RESEARCH METHODOLOGY

3.1 The Study Area

The study will be conducted in Oromia region. Ada'a Berga district is located in the Western
Shawa of Oromia; The district is rich in various minerals and natural resources, and for this
reason there are three major cement manufacturing companies in the district. With an estimated
area of 955 square kilometers, Ada’a Berga has an estimated population density of 136 people
per square kilometer, which is less than the Zone average of 152.8.

3.2 Research design

This study were used a descriptive types of research design. It was try to explain impacts of
leadership. The reason for researcher used to descriptive type of research is to describe and
interpret for events related with the leadership style.

3.3 Target population

Ada’a Berga Woreda public administration office has 1067 total employees. The researchers
would be used selected 136 employers from the total population (employer) for a sample.

3.4. Data type and source

To conduct this research both qualitative and quantitative type of data were used in addition with
the primary and secondary source of data. From the primary data the researcher used structured
questioners that are both open ended and closed ended questioners to gather from respondents
questions. The secondary data were collect from reference books and Internet.

3.5 Data collection method

To conduct this study the researcher were used primary and secondary data source of
information. The primary data would be collected by means of open and closed ended
questionnaires. The secondary data would be gathered through document review.

11
3.6 Sampling method

The researcher would be selected the employees by using random sampling methods. The
reasons of the researcher would be used a random sampling methods to give equal chance for
employer.

3.7 Sampling size and techniques

The data would be collected from the total number of public sector of population 1067
employees and the researcher would be the random sampling methods, to give equal chance. The
sample size would be 136 from the total employees.

n= N
_____________ Where N=Target Population
1+N (e) ^2 n= Sample size
e= Margins of error
Given N= 1067
e= 0.08/8%
z= 92% required n=?
N
n= ________
1+N (e) ^2 1067
___________ = 136
1+1067(0.08) ^2

12
3.8 Data processing and analysis

After relevant data collected by using questionnaires the next step would be auditing, coding and
classification of data. After all of this step the researcher would be analysis the data through
qualitative and quantitative analysis

3.9. Ethical consideration

In order to keep the organizations loyalty or privilege the researcher have to consider ethical
considerations. Because most of the researcher fail to get information as a result of forgetting
ethical consideration of the organization. In case of my research the name of employees, time,
moral, is keep in consideration for smooth communication with the organizations personnel
during any information use.

13
 CHAPTER FOUR

4 Work Plan and Cost Budget

4.1 Time budget

The researchers will discharge the research work within the following time span

S.no Activities taken Months

Aug Sep Oct Nov Dec
1 Topic selection X

2 Literature searching X

3 Proposal preparation X

4 Identification and conducting survey X

5 Preparing question air and interview X

6 Distributing questionnaire X

7 Collection of questionnaire conduct X

data
8 Editing and coding the collected X
data
9 Data analysis X

10 First draft report X

11 Editing and final research building X
12 Submitting final research X
13 Presentation X

14
4.2 Cost break down

The researcher beliers that the research will require the following budget to make the
research activities effectual

15
 Reference
Bantie work (2006), Introduction management, Addis Ababa university

Mesert melese (2006), Introduction management, Addis Ababa university

Rost, L (1991), Business administration and communication, 9th edition new work

Yigremew adual (2006), Introduction management, Addis Ababa university

Richard. F , (1995) Organization behavior, 6TH edition , western publishing company

Kenneth,(2011), Human resource management 2ND edition

Robert , C (1960), Strategic management network

Weber, D (1996), Personal management ,5TH edition, Lendon

Robbins, (1943), organization behavior 2ND edition, Canada

Richard ,L ,Daft (2008)

Mullins , J (1993), Leaders and employee relationship, 10TH edition, London

Daniel, E (1939), Management of conflict, 11TH edition, London

16
 Appendix

Rift Valley University, Gullale Campus

Department of Business Management

DEAR RESPONDENTS
This study is conducted as partial full filament for completion of bachelor of art degree in
management. The genera objective of the questionnaire is examine the role of leadership style on
employee performance in Mugher Enchini town Ada’a Berga woreda public administrative
office. This quaternary is designed and used only for academic purpose. The information you
will offer will kept confidential and guarantee you that it will never be disclosed to third party.
You genuine response to the questions will have great immeasurable contributions to the
outcome of the final research project.

General instruction

 No need of to your name.

 Please encircle your own choice.
 Write your opinion where writing is necessary.

PART ONE. DEMOGRAPHIC INFORMATION

1, Sex A, male B female

2, Age A below 23 B, 23-30 C, 31-40 D 41-55

E, above 55

3, level of education A, completed grade 12 B, certificate

C, diploma D, degree F, above degree

17
4, Marital status A, single B, married C, divorced D , widowed

5, Monthly income A, below 1000 B, 1000-1500 C. 1500-2000

D, 2000-3000 E, 3000-3500 F, above 4000

6, Work experience A, below 1 year B, 1-3 year

C, 3-6 year D, 6-10 year E, above 10

PART TWO. LEADERSHIP RELATED QUESTIONS

7, How does the management control performance of employee in the woreda?

A, by giving incentive B. by motivating C. by punishment D. never control

8, Based on the above questions if your answer is by punishment in what way?----------------------

---------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
9 Do you get freedom on your work?
A, always B, sometimes C, Never

10, Do leaders allow you to make own judgment in solving your problems?

A, always B, sometime C, never

11. Do you get reward for your performance? A, yes B, no

12, Based on the above question if your answer is yes what type of reward you get ?----------------
----------------------------------------------------------------------------------

13 Do you think that your leader has sufficient leadership competence?

A, yes B, no

14, Based on the above question if you answer YES which leader ship style?

A, democratic B, autocratic C, laissez-fair D, situational

15, Do leaders apply delegation system in the organization? A, yes B, no

16, Based on the above question if your answer .YES how much is help for your performance?

18
 A, high B, very high C, low D, very low

17, What type of decision making style leaders in your organizations use?

A, Centralization B. decentralization

18, Do leaders practice two ways communication?

A, always B, sometime C, never

19, Are you satisfied with the settlement of conflict?

A, always B, sometime C, never

20, Do you get training related with your profession? A, yes B, no

21, In relation with leadership styles what is your leadership character?-------------------------------

---------------------------------------------------------------------------------------------------------------------
--------.

19