Eiskyas Getu Research

THE ROLE OF LEADERSHIP ON ORGANIZATIONAL PERFORMANCE
IN CASE OF ETHIO TELECOM DILLA BRANCH
MBA Thesis
By: Eiskyas Getu
INFOLINK UNVERSITY COLLEGE, HAWASSA CAMPUS
JUNE 2023
HAWASSA, ETHIOPIA
THE ROLE OF LEADERSHIP ON ORGANIZATIONAL PERFORMANCE
IN CASE OF ETHIO TELECOM DILLA BRANCH
By: EISKYAS GETU
A THESIS SUBMITTED TO THE DEPARTMENT OF BUSINESS

MANAGEMENT OF INFO LINK UNIVERSITY COLLAGE FOR THE
PARTIAL FULFILLMENT OF MASTERS OF BUSINESS
ADMINISTRATION
ADVISOR:
Dr. SINTAYEHU ASEFA
JUNE 2023
HAWASSA, ETHIOPIA
DECLARATION
I hereby declare that this MBA thesis entitled “The Role of Leadership on Organizational
Performance In Case Of Ethio Telecom Dilla Branch” is my work and has not been presented
for a degree in any other university. All scholarly matter included in the thesis proposal has been
recognized through citation. I affirm that I have cited and referenced all sources used in this
document. Every serious effort has been made to avoid plagiarism in preparing this thesis proposal.
Name: Eiskyas Getu

Name Signature: ________________________
Date: ____________________________
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ADVISOR’S APPROVAL SHEET
This is to certify that the thesis entitled “The Role of Leadership on Organizational
Performance In Case Of Ethio Telecom Dilla Branch” submitted in partial fulfillment of the
requirements for the degree of Masters in Business Administration at the school of Graduate
studies in Infolink University College Department of business Management has been carried out
by Eiskyas Getu under my supervision. Therefore, I recommend that the student has fulfilled the
requirements and hence here by can submit the proposal to the department.
Name of Advisor: Dr. Sintayehu Asefa

Signature: _________________________
Date: ____________________________
ii
EXAMINERS’ APPROVAL SHEET
We, the undersigned, members of the Board of Examiners of the final open defense by Place for
Your Name have read and evaluated this thesis “The Role of Leadership on Organizational
Performance In Case Of Ethio Telecom Dilla Branch” and examined the candidate. This is,
therefore, to certify that the thesis has been accepted in partial fulfillment of the requirements for
the degree of Masters of Business Administration.
_________________ ________________ _________________
Name of the Chairperson Signature Date

_________________ ________________ _________________
Name of Principal Advisor Signature Date

_________________ _______________ _____________
Name of Internal Examiner Signature Date

_________________ ________________ _________________
Name of External examiner Signature Date

______________________ __________________ _________________
SGS Approval Signature Date
Final approval and acceptance of the proposal is contingent upon the submission of the final copy
of the thesis to the School of Graduate Studies (SGS) through the School Graduate Committee
(DGC/SGC) of the candidate’s department.
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Table of Contents
DECLARATION ............................................................................................................................. i
ADVISOR’S APPROVAL SHEET ................................................................................................ ii
EXAMINERS’ APPROVAL SHEET ........................................................................................... iii
List of table .................................................................................................................................. viii
List of figure .................................................................................................................................. ix
ACKNOWLEDGEMENT .............................................................................................................. x
Abstract .......................................................................................................................................... xi
CHAPTER ONE ............................................................................................................................. 1
1. INTRODUCTION ................................................................................................................... 1
1.1 Background of the study ...................................................................................................... 1
1.2 Statement of the problem ..................................................................................................... 4
1.3 Research Questions .............................................................................................................. 6
1.4 Objectives of the study......................................................................................................... 6
1.4.1 General Objective of the study ......................................................................................... 6
1.4.2 Specific Objectives of the study ....................................................................................... 6
1.5 Hypotheses ........................................................................................................................... 7
1.6 Significance of the Study ..................................................................................................... 7
1.7 Scope of the Study ............................................................................................................... 8
1.8 Limitation of the study ......................................................................................................... 8
1.9 Organization of the paper..................................................................................................... 8
CHAPTER TWO ............................................................................................................................ 9
2. LITERATURE REVIEW ........................................................................................................ 9
2.1 Introduction .......................................................................................................................... 9
2.2 Theoretical Review .............................................................................................................. 9
iv
2.2.1 Definition ......................................................................................................................... 9
2.2.2 Characteristics of Leadership ......................................................................................... 10
2.3 Leadership Theories ........................................................................................................... 11
2.3.1 The Great Man Theory ................................................................................................... 11
2.3.2 Trait Theory.................................................................................................................... 12
2.3.3 Behavioral Theories ....................................................................................................... 12
2.3.4 Contingency Theories .................................................................................................... 12
2.3.5 Transactional Leadership Theories ................................................................................ 12
2.3.6 Transformational Leadership Theories .......................................................................... 13
2.3.7 Authentic leadership ....................................................................................................... 14
2.4 Leadership Styles ............................................................................................................... 15
2.4.1 Bureaucratic leadership .................................................................................................. 15
2.4.2 Autocratic leader ............................................................................................................ 15
2.4.3 Laissez-faire leader ........................................................................................................ 15
2.4.4 Task-oriented leader ....................................................................................................... 16
2.4.5 Environment leader ........................................................................................................ 16
2.4.6 Transaction leader .......................................................................................................... 16
2.4.7 Transformation leader .................................................................................................... 16
2.5 Leadership Practice and Performance. ............................................................................... 17
2.6 Empirical Review............................................................................................................... 19
2.7 Conceptual Frame Work .................................................................................................... 22
CHAPTER THREE ...................................................................................................................... 23
3 RESEARCH METHODOLOGY .......................................................................................... 23
3.1 Introduction ........................................................................................................................ 23
3.2 Research Design................................................................................................................. 23
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3.3 Research approach ............................................................................................................. 24
3.4 Source of Data Collection .................................................................................................. 25
3.5 Data Collection Techniques ............................................................................................... 25
3.6 Target population ............................................................................................................... 25
3.7 Sample size and Sampling technique ................................................................................. 25
3.8 Method of Data analysis .................................................................................................... 26
3.8.1 The Pearson Correlation Coefficient .............................................................................. 26
3.8.2 Linear Regression Analysis ............................................................................................ 27
3.8.2.1 Regression Functions ..................................................................................................... 27
3.9 Reliability Test and Validity .............................................................................................. 28
3.9.1 Reliability Test ............................................................................................................... 28
3.9.2 Validity Test ................................................................................................................... 29
3.10 Ethical consideration .......................................................................................................... 29
CHAPTER FOUR ......................................................................................................................... 30
4 RESULTS AND DISCUSSION ............................................................................................ 30
4.1 Introduction ........................................................................................................................ 30
4.2 Descriptive statistics .......................................................................................................... 30
4.2.1 Demographic profile of the respondents ........................................................................ 30
4.2.1.1 Sex group of respondents ............................................................................................... 31
4.2.1.2 Age group of respondents .............................................................................................. 31
4.2.1.3 Educational Level of respondents .................................................................................. 32
4.2.1.4 Work Experience of respondents ................................................................................... 32
4.3 Descriptive Analysis of the Study Area ............................................................................. 33
4.3.1.1 Leader Ship Skill ............................................................................................................ 34
4.3.1.2 Leadership Experience ................................................................................................... 35
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4.3.1.3 Transactional Leadership Style ...................................................................................... 36
4.3.1.4 Transformation Leadership Style ................................................................................... 37
4.3.1.5 Leizesfaire Leadership Style .......................................................................................... 38
4.3.1.6 Organizational (Ethio Telecom) Performance ............................................................... 39
4.4 Results of Inferential Statistics .......................................................................................... 40
4.4.1 Correlation analysis ........................................................................................................ 40
4.4.2 Regression analysis ........................................................................................................ 42
4.5 Hypothesis test ................................................................................................................... 45
CHAPTER FIVE .......................................................................................................................... 48
5 CONCLUSIONS AND RECOMMENDATIONS ................................................................ 48
5.1 Conclusions ........................................................................................................................ 48
5.2 Recommendations .............................................................................................................. 49
REFERENCES ............................................................................................................................. 50
vii
List of table
Table 3.1 Reliability of the Survey Questionnaire........................................................................ 29

Table 4.1 Genders of the Respondents ......................................................................................... 31
Table 4.2 Work Experience of the Respondents ........................................................................... 32
Table 4.3 Five Scaled Likert’s Criterion..................................................................................... 33
Table 4.4 Perception of respondents on leadership skill............................................................... 34
Table 4.5 Perception of respondents’ on leadership experience ................................................... 35
Table 4.6 Perception of respondents on transactional leadership style ........................................ 36
Table 4.7 Perception of respondents on transformation leadership style ..................................... 37
Table 4.8 perception of respondents on laissez-faire leadership style .......................................... 38
Table 4.9 perception of respondents on project performance ....................................................... 39
Table 4.10 Rule of thumb for about the strength of correlation coefficient ................................. 40
Table 4.11 Pearson’s Correlation Analysis/Correlation Matrix ................................................... 41
Table 4.12 Multicollinarity test result ........................................................................................... 42
Table 4.13 model summary........................................................................................................... 43
Table 4.14 ANOVA ...................................................................................................................... 43
Table 4.15. Coefficient ................................................................................................................................ 44
viii
List of figure
Figure 2.1 Conceptual Frame Work.............................................................................................. 22
Figure 4.1 Age of the Respondents ............................................................................................... 31
Figure 4.2 Educational Level of the Respondents ........................................................................ 32
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ACKNOWLEDGEMENT
First and for most admiration is warranted to GOD that let as stay in life and that gives as a
immeasurable aid and strength to pass all the challenges in each of the proposal hope full to end
up the work on the allocated time.
Second we would like to say thanks so much to our advisor Dr. Sintayehu Asefa for his
preparedness and demonstrative comment, evaluation and advice from the beginning up to the end
of the study.
Third we want to forward our thanks to management and Employee of Ethio Telecom Dilla Branch
to give full information for our thesis. Finally we also highly thanks all our families for their
financial and other kind of support.
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Abstract
The main purpose of this study was to investigate the role of leadership on organizational
performance in case of Ethio telecom Dilla branch. The study adopted descriptive as well as
explanatory research design along with quantitative research approach to address the research
questions. As the population size is limited, the researcher has employed census survey. Self-
administer questionnaire were used to gather data. The collected data were analyzed by using
SPSS-Version 20. Both descriptive and inferential statistics were used for the data analysis. The
descriptive statistics such as frequency, percent, mean and standard deviation were used for
describing the demographic characteristics of respondents and the whole perception of
respondents on relationship of dependent and independent variables. The inferential statistics like
Pearson correlation and simple linear regression were used to show the relationship between
independent and dependent variables and to determine the effect of independent variables on the
dependent variable. The findings of the study indicated that, leadership skill and leizes-faire leader
ship styles positively and significantly affect the performance of Ethio telecom Dilla branch.
Finally, the study recommended that organization leaders should use leadership skill and leizes-
faire leader-ship styles since it involves the employees want to part of the decision making process,
Peoples are always competent and if given a task will do good, employees in decision making with
the leader providing supportive communication as well, workers prefer little input from their
leaders and the leaders should give subordinate complete freedom to solve problems in their work;
these all enhances effective organization completion.
Key words: Leadership, leadership skill, leadership experience, leadership style, organization,
organization performance
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CHAPTER ONE
1. INTRODUCTION
1.1 Background of the study
Leadership is one of the most important components for any organizational performance.
Leadership is simply “the art of influencing people so that they will strive willingly towards the
achievement of goals” Igbaekemen, (2014). Leadership plays a role in creating an enthusiastic
atmosphere and culture in an organization Alghazo and Al-Anazi, (2016). Hurduzue (2015)
proclaimed that effectively leadership style could promote excellence in the development of the
members of the organization. According to Skoogh (2014), it is safe to say that leadership has
played an important role since the dawn of history of mankind. Lack of sustainable leadership
style, especially when it is accompanied by non-merit based appointment of management, is
probably the worst case scenario for any organization.
Performance is the ability of a project to deliver intended outcomes while meeting the constraints
of scope, cost and quality (Srica, 2008). Projects are well completed if they are completed on time,
within budget, and to performance requirements. In order to bring the many components of a large
project into control there is a large toolkit of techniques, methodologies, and tools. These
techniques provide the tools for managing different components involved in a project: planning
and scheduling, developing a product, managing financial and capital resources, and monitoring
progress.
Leadership as a combination of skills and experience while employing the necessary control
measures in the most appropriate style to oversee successful project Performance. An
organizational setting requires the leader to use his experience and skills in directing his team
towards success (Lapp, 2009). Mumford et al., (2010) posited that leaders are likely to succeed in
situations where the skills of the leader are specific to the organization. Individuals tend to be
attracted to organizations or roles consistent with their personalities because given their broader
patterns of dispositional skills they find the perceived goals and rewards attractive (Mumford et.
al., 2010).
Leadership is important in organization because without effective leaders it will be difficult for an
organization to achieve their goals (Prabu, 2012). Leaders use influence to motivate followers and
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arrange the work environment so that they do the job more effectively (Steven, 2005). However
there is no single formal leader even in a formal group. Such a condition may exist in case of
autonomous work groups self-managed teams (Ivancevich 2005). The selection of the leader
depends on the personal characteristics and social and cultural factors (Bolden, 2004). Some
studies found that male and female leaders do not differ in their levels of task oriented or people
oriented leadership, while other studies indicate that women tend to adopt a more demonstrative
leadership style (Steven, 2005).
Organizational performance is the transformation of inputs into outputs for achieving certain
outcomes (Chen, et al. 2006). To meet the needs of the highly competitive markets, organizations
should increase their performance (Arslan & Staub, 2013). A large portion of the everyday
discourse about leadership and leaders takes it for granted that leaders make a big difference in
terms of performance (Knies et al., 2016). Practically, managers all over the world are recognizing
the essential role that effective leadership is important in organizational performance (Prabu,
2012). The role of leadership is critically important for achieving the performance of organizations
(Peterson et al., 2003) and a company’s success is attributable to organizational performance (Bass
& Riggio, 2006; Drucker, 2007).
Over the past 30 years, researchers have tried to establish the link between leadership and
performance (Knies et al., 2016). From previous studies, it has been demonstrated that an
appropriate leadership style can influence the success and the economic growth of both the
organizations and employees (Madanchian, 2016). Some studies have suggested that leaders
motivate and help their employees by using effective leadership styles to be competitive (Luftman
et al., 2004). Particularly, transformational leadership has been shown to have a positive relation,
commitment, self-sacrifice and high performance from others (Lussier, 2005). A number of studies
on leadership styles (Kouzes & Posner, 2007; Yukl, 2009) propose that transformational leadership
have a positive effect on the organizational performance. Apart from transactional leadership, it is
strongly predicted that transformational leaders will have significant contribution to improve
organizational performance (İşcan et al., 2014).
Even though, the above practices were significantly contributed to the performance of the
organizations, Public sector organizations in Ethiopia are being challenged to increase their
performance and efficiency, modify their attitudes regarding management and leadership, and
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provide better service to internal clients and the public (Chanie, 2001). Theoretically, the academic
literature finds it hard to find reliable evidence for a clear association, because both main concepts
(leadership and performance) are broad and difficult to define and because of many confounding
variables that make it difficult to demonstrate clear cause and effect (Knies et al., 2016). Wang et
al. (2005) studied the effect of transformational leadership on individual-level, team-level, and
organizational-level performance. However they didn’t consider the mediating role of the
leadership style and employees commitment. Scholars have used different conceptualizations of
the independent variable, such as transactional, transformational, and laissez-faire leadership,
and/or have included several related concepts such as trust in leadership, leader-member exchange,
and leadership structure (Knies et al., 2016). Still, there is a lack in testing the mediating effect.
The purpose of this study was the role of leadership on organizational performance in Ethio-
telecom. Ethio-telecom may use the results of this study to ascertain the effectiveness of leadership
styles that can motivate its employee and become an input for the ongoing organization
performance. Improving the leadership skills of managers and supervisors may result in better
telecom services where individual citizens get world class services which could facilitate as a
means to positively influence peoples‟ lives, business and other sectors by producing social and
technological transformation.
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1.2 Statement of the problem
Leadership is life blood of any organization and its importance cannot be underestimated. Many
authors have studied this phenomenon, but there is no consensus definition of what leadership is,
no dominant paradigm for studying it, and little agreement regarding the best strategies for
developing and exercising it and give leadership as that kind of direction, which a person can give
to a group of people under him in such a way that these will influence the behavior of another
individual, or group. Peris (2012) perceives leadership to be a reciprocal process of social
influence, in which leaders and subordinates influence each other in order to achieve
organizational goals.
Fenwick and Gayle (2008), in their study of the missing links in understanding the relationship
between leadership and organizational performance conclude that despite a hypothesized
leadership-performance relationship suggested by some researchers, current findings are
inconclusive and difficult to interpret. From the view, it is evident that although some scholars
believe that leadership enhance organizational performance while other contradict this idea,
different concept of leadership have been employed in different studies, making direct
comparisons virtually impossible. Gap and unanswered questions remain in relation to the
leadership practice and organizational performance. Consequently, the limited or inconclusive
character of research findings in the area suggests the need to investigate further the nature of the
relationship between leadership and performance.
The relationship between leadership styles and organizational performance has been discussed
often and many researches done on the same and related topic agree that the leadership style has a
significant relation with the organizational performance, and different leadership styles may have
a positive correlation or negative correlation with the organizational performance, depending on
the variables used by researchers (Fu-Jin Wang, Shieh Chich-Jen and Tang Mei-Ling, 2010);
Mesfin & Deres, 2018). For example, Peris M. Koech & G.S Namusonge, 2012; Ojokuku et al.,
2012; Ann Gachingiri, 2015; Mitra M. et.al, 2016; John K. Asamoah, 2017; Augustine
Ngmentomo Beakana, 2017) urge that there is strong relationship between leadership style and
organizational performance i.e. leadership style has both positive and negative effect on
organizational performance.
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The gap and unanswered questions about these issues called for this study to be undertaken.
According to researchers like Peterson, Smith, Martorana, & Owens (2003) the role of leadership
is critically important for achieving the performance goals of organizations. According to Jones
and George (2008: 6). “Organizational Performance is a measure of how efficiently and effectively
managers use available resources to satisfy customers and achiever organizational goals.” This and
other concepts about the two issues are showing that there is a link between leadership practices
and organizational performance and also on organizational objective fulfillment.
To identify causes for ineffective leadership and recommend solution various academicians
conduct researches treating leadership from various perspectives. Most prior indigenous studies of
leadership have been asking for most important trait or dominant leadership styles and women
participation on leadership (Birkiti 2014, Hirut 2015, Epherem 2016). Particularly the study
conducted by Ephrem (Ephrem, 2016) is closely related with this study, still having major
difference in its selection of variables to be researched. He has conducted the study mainly to
identify the dominant leadership style among transformational, transactional and passive avoidant
and to see the differences between the constructs of extra effort, effectiveness and satisfaction
among ethio telecom managers represented in each of the three leadership styles. The research
conducted by Ephrem involves only the perception of the management members of Ethio telecom.
But he has recommended further researches to be conducted including the perception of followers
(Epherem, 2016)
The need for this research work arises out of the following list of problems in Ethio telecom Dilla
branch Lack of modern and up to date leadership experience and implementation in managerial
skill exposed the organization manager for bankruptcy and lack of competency to the international
trend, Lack of awareness on organizational leadership experience, and Lack of insufficient
research on the effect of leadership style on organizational performance.
On top of the above facts, the following points are the main reasons that made this research
particularly look into the role of leadership on organizational performance in case of Ethio telecom
Dilla branch. This empirical evidence initiates to conduct this study was to investigate the role of
leadership on organizational performance in case of Ethio telecom Dilla branch
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1.3 Research Questions
To achieve the intended objectives as well as the research problem stated above, the following
questions was designed.
 To what extent transactional leadership style skill and experience affect the performance
of Ethio telecom Dilla branch?
 To what extent transformational leadership style skill and experience affect the
performance of Ethio telecom Dilla branch?
 To what extent Laissez-faire leader leadership style skill and experience affect the
performance of Ethio telecom Dilla branch?
 What is the relationship between the leadership style and organizational performance in
Ethio telecom Dilla branch?
1.4 Objectives of the study

1.4.1 General Objective of the study
The general objective of this study was to investigate the role of leadership on organizational
performance in case of Ethio telecom Dilla branch.
1.4.2 Specific Objectives of the study
The specific objectives of the study was:
 To examine the effect of transactional leadership style skill and experience on performance
of Ethio telecom Dilla branch.
 To determine the effect of transformational leadership skill and experience on performance
 To determine effect of Laissez-faire leadership style skill and experience on performance
 To investigate the relationship between leadership style and performance of Ethio telecom
Dilla branch.
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1.5 Hypotheses
A research hypothesis is a predictive statement, capable of being tasted by scientific method that
relates an independent variable to some dependent variable (Kothari, 2004). It is a statement about
the relationship between the dependent and independent variable to be studded. Based on the above
objective the following hypotheses was set for the study under consideration.
 H0: Leadership skills is not significant determinant factor of organizational performance

in case of Ethio telecom Dilla branch.
 H0: Leadership experience is not significant determinant of organizational performance in
case of Ethio telecom Dilla branch.
 H0: Transactional leadership style is not significant determinant factor of organizational
 H0: Transformational leadership style not significant determinant factor of organizational
 H0: Leases faire leadership style is not significant determinant factor of organizational
1.6 Significance of the Study
According to Robertson (2003), most organizations face difficulties to maintain and improve
leader competencies and as such there is a natural progression into the research in the field of
organizational leadership. The study was help management of Ethio Telecom Dilla Branch, to
manage its leaders (point officers) to suit the environment to increase productivity and
performance.
The study was help leaders to know the kind of leadership role that need to be adopted and
developed to enhance organizational performance.
Finally, the study was help give the opportunity to frontline employees to contribute and make
recommendations to management on leadership roles suitable to enhance organizational
performance.
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1.7 Scope of the Study
This study was focused on the effect of Leadership skills, Leadership experience, transactional,
Transformational and Laissez-faire leadership style on the performance of Ethio telecom Dilla
branch. This study was limited about the understanding of the perception of leadership attributes
on its Ethio telecom performance under the Dilla branch.
Furthermore, the study was based on the effect of Leadership skills, Leadership experience,
transactional, Transformational and Laissez-faire leadership style Ethio telecom Dilla branch
performances that have undertaken from other corporation by Ethio telecom Dilla branch.
1.8 Limitation of the study
This academic research achieved its objectives; however, the major limitation of this study was it
covered only Ethio telecom Dilla branch and the findings was cannot be generalize to other
regional branch more updated contribution regarding to the effect of leadership on organizational
performance.
1.9 Organization of the paper
The study was present in five chapters: Chapter one was highlight: background of the study,
statement of the problem, research questions, objectives of the study, significant of the study, scope
of the study, limitation of the study and organization of the paper. Chapter two was presented the
review of related literatures. Chapter three was discussed the research methodology which
contains: research design and approach, population of the study, data types and sources, data
collection tools, data collection procedures, validity and reliability test, data analysis method and
ethical consideration. Chapter four of the thesis was the analyzed of the data, results and
discussions of findings of the study and the last chapter was comprised of three sections: Summary
of the findings, conclusions and the recommendations of the study. Finally questioners and annex
was presented.
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CHAPTER TWO
2. LITERATURE REVIEW
2.1 Introduction
This chapter will be provides an appropriate theory on the concept of leadership, leadership styles
and organizational performance. The definition, theories and different models of leadership will
be explored. Concepts of organizational performance existed too considered at and also an
assessment of earlier results on the relationship among leadership styles and organizational
performance is presented. At the termination of the chapter, the conceptual framework on behalf
of the study will be presented.
2.2 Theoretical Review

2.2.1 Definition
Leadership can have many interpretations; most importantly is the ability and skill to inspire
confidence, support and motivate the people who are needed to achieve the organizational goals.
In fact, not just simply applying rules or concepts constitutes the development of a leader; many
other factors must be analyzed. A leader plays many roles such as a coach, mentor, figurehead,
spokesperson, negotiator, team builder, team player, technical problem solver, entrepreneur and
strategic planner (Dubrin, 2010). In analyzing different academic models, leadership can be best
explained by evaluating its most important variables: leader behavior, leader style, leader
characteristics, group member characteristics, and the internal and the external environment
(Dubrin, 2010).
Leadership are diverse meanings it defines in the eye of be holder. House and Aditya (1997) say:
‘‘The process of Leadership cannot be describe simply in terms of the behavior of an individual,
rather than , leadership involves collaborative relationships that lead to collective action grounded
in the shared values of people who work together to effect positive change”(Roger Gill, 2008).
According to Liu, Fang (2006), leadership concerns the ability to influence the behavior of others
to closely accord with the desires of the leader. It is unchangeable that leadership concerns
interpersonal relationship in the pursuit of organizational and individual goals and therefore
involves power exercising by the leaders.
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Fiedler (1967) says that, "leadership behavior means particular acts in which a leader engages in
the course of directing and coordinating the work of his group members”. And according to Burns
(1978), "leadership is the reciprocal process of mobilizing by persons with certain motives and
values, various economic, political and other resources, in the context of competition and conflict,
in order to realize goals independently or mutually held by both leaders and followers".
2.2.2 Characteristics of Leadership
Maxwell’s Business Week’s best seller for over a year identifies “21 Irrefutable Laws of
Leadership” (1998) defines leadership with the following characteristics:
 Perception. Leadership ability identifies a person’s level of effectiveness.

 Influence instead of control. Leadership is about influencing people to follow, while
management focuses on maintaining systems and processes.
 Improvement. Managers can maintain direction, but they cannot change it.
 Followers motivated to perform. To be a leader, one must not only be out in front, but also
have people intentionally coming behind, following the lead, and acting on the leader’s
vision without coercion.
 Voluntary instead of regulatory involvement. The very essence of leadership is getting the
other person to participate.
 Assumption of ignorance and lack of expertise. As long as a person doesn’t know what he
doesn’t know, he doesn’t grow. To be conscience that you are ignorant of facts is a great
step toward knowledge.
 Listening instead of giving directives. Navigators listen to what others say, examine before
making commitments, and make conclusions based on fact and faith. Leaders don’t speak
lot and don’t do work. Real leaders speak later, need only their own influence to get things
done, and influence everyone.
 Prediction. A leader is one who sees more than others see who sees farther than others see,
and who sees before others do.
 Results oriented. The proof of leadership is in their followers or performers
 Trust. Character (honesty and doing what is best for everyone) makes trust and trust makes
leadership.
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 Efficiency. Leaders maximize every asset and resource for the good of the organization.
Leaders understand requirement, greatest return, and priorities.
 Differential. Leadership levels: those who naturally see it, those who are nurtured to see it,
and those who will never see it.
 Flexibility. Leadership is based on intuition and changes with every situation.
 Environment definition. The environment is the person. Who you are is who you attract.
Who you are dictates what you see.
 Challenge. The tougher the job, the greater the connection.
 Empowerment. Hire the best staff, develop them as much as possible, and hand off
everything to them. The people’s capacity to achieve is determined by their leader's ability
to empower. (Kashiwagi, Egbu, Kovel, Badger).
 Measurement in terms of non-technical characteristics. Leadership is more art than science.
Also the heart comes before the head
 Alignment. A team doesn’t win if the players have different agendas.
 Minimized activity. Leaders understand that activity is not necessarily accomplishment.
 Thinking of others or “win-win.” A leader must give upto go up.
 Timing. Right time, right action.
 Sustainability. Legacy of leadership is succession.
2.3 Leadership Theories
2.3.1 The Great Man Theory
The Great Man theory is assumes that the traits of leadership are intrinsic. It is simply means that
great leaders are born they are not made; this theory sees great leaders as those who are destined
by birth to become a leader. Furthermore, the belief is that great leaders will rise when confronted
with the appropriate situation. The theory was popularized by Thomas Carlyle, a writer and
teacher. Just like him, the Great Man theory, inspired by the study of influential heroes. Bolden
book "On Heroes, Hero-Worship, and the Heroic in History", he compared a wide array of heroes.
Bolden (2004).
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2.3.2 Trait Theory
The trait leadership theory is believed people are either born or are made with certain qualities that
will make them excel in leadership roles. That is, certain qualities such as intelligence, sense of
responsibility, creativity and other values puts anyone in the shoes of a good leader. According to
" Matthews, etal, (2003), the trait theory of leadership focused on analyzing mental, physical and
social characteristic in order to gain more understanding of what is the characteristic or the
combination of characteristics that are common among leaders.
2.3.3 Behavioral Theories
In this behavioral trait leadership theory, offering a new perspective, one that focuses on the
behaviors of the leaders as opposed to their mental, physical or social characteristics. Thus, with
the evolutions in psychometrics, notably the factor analysis, researchers were able to measure the
cause and effects relationship of specific human behavior’s from leaders. On this point forward
anyone with the right conditioning could have access to the once before elite club of naturally
gifted leaders. In other words, leaders are made not born. (Toor&Ofori, 2008).
The behavioral theories leaders are divided into two categories. Those that task concerned and
people concerned. Throughout the literature these are refer to as different names, but the meaning
are identical.
2.3.4 Contingency Theories
The Contingency Leadership theory are argues there is no single way of leading and any leadership
style should be based on certain situations, which signifies that there are certain people who
perform at the maximum level in certain places; but at minimal performance when taken out of
their element, in a certain extent contingency leadership theories are extensions of the trait theory,
in the sense that human traits are related to the situation in which the leaders exercise their
leadership. It is generally accepted within the contingency theories that leader are more likely to
express their leadership when they feel that their followers will be responsive. (Yukl G, 2002).
2.3.5 Transactional Leadership Theories
Transactional theories are exchange theories of leadership; it is characterized by a transaction is

made between the leader and the followers. In fact, the theory values a positive and mutually
12
beneficial relationship. For the transactional theories to be effective and as a result have
motivational value, the leader must find a means to align to adequately reward (or punish) his
follower, for performing leader-assigned task. In other words, transactional leaders are most
efficient when they develop a mutual reinforcing environment, for which the individual and the
organizational goals are in sync (Gill, 1999). Transactional leaders applied leadership by exception
and contingent reward. Waits until problem arise and react to solve it. Gill, (1999) says, “Appear
to be strongly directive and they tend not to use the consultative, participative or delegate styles to
any significant extent” Bass, (1996 ;) and Bass &Avolio, (1990) say “Transactional leadership
includes contingent reward behavior, passive management by exception, and active management
by exception”.
2.3.6 Transformational Leadership Theories
The Transformational Leadership theory states that this process is by which a person interacts with
others and is able to create a solid relationship that results in a high percentage of trust, that will
later result in an increase of motivation, both intrinsic and extrinsic, in both leaders and followers.
The main objective of transformational theories is that leaders transform their followers through
their inspirational nature and charismatic personalities. Rules and regulations are flexible, guided
by group norms. These attributes provide a sense of belonging for the followers as they can easily
identify with the leader and its purpose. (Burns, 1978).
The version of transformational leadership theory that has generated the most research was
formulated by Bass and his colleagues (Bass, 1985, 1996). They define transformational leadership
primarily in terms of the leader’s effect on followers, and the behavior used to achieve this effect.
The followers fill trust, admiration, loyalty and respect towards the leader, and there are motivated
to more than originally expected to do. The difference of the two looks like as follows.
13
Table1.Transformational & Transactional leadership Bass and Avolio's (2004), MLQ
manual.
N Transactional Leadership Transformational Leadership

O
1 Build on man’s need to get a job done and Builds on a man’s needs for meaning
make alive
2 Is preoccupied with power and position, Is preoccupied with purposes and values,
politics and perks. morals, and ethics
3 Is mired in daily affairs. Transcends daily affairs.
4 It is short-term and hard data orientated Is orientated toward long-term goals
without
Compromising human values and
principles.
5 Focuses on tactical issues. Focuses more on missions and strategies
6 Relies on human relations to lubricate human Releases human potential – identifying and
interactions. developing new talent
7 Designs and redesigns jobs to make them
meaningful and challenging
8 Supports structures and systems that Aligns internal structures and systems to
reinforce the bottom line, maximize reinforce overarching values and goals.
efficiency, and guarantee short-term profits.
2.3.7 Authentic leadership
Authentic leaders are influential in enhancing others’ ability to perform better by providing support
and creating conditions that stimulate the individuals to work hard even extraordinarily hard to
perform at one’s very best (Gardner, 2004 cited in Toor&Ofori, 2008). According to Toor and
Ofori (2008a), authentic project leaders are not only good managers of projects, but they are also
leaders of people and visionaries of the future by demonstrating commitment, devotion and
dedication and they become role models. The nurture of their supporters as authentic followers,
Extracted from positive psychology, ethical leadership and positive organizational behavior, the
14
authentic leadership construct stresses character authenticity, self-awareness, self-regulation,
faithfulness to individuality, genuine beliefs, truth of convictions, idea practicality, veracity of
vision, sincere actions and openness to feedback (George and Sims, 2007; Walumbwa et al., 2008).
“Authentic leaders can be transactional, transformational, directive, or participative and still be

defined as authentic. It also goes beyond transformational and charismatic leadership as leaders
and be highly authentic but not charismatic at all”. Luthans F, Avolio (2003). Authentic leaders
are confident, hopeful, optimistic, resilient, transparent, and ethical and future oriented (Garden et
al., 2005 & May et al., 2003 cited in Toor&Ofori, 2008a).
2.4 Leadership Styles
There is different leadership styles exist in any organization. Any leader have exist own unique
style. Effective leaders will have their methods based on the context, the individuals concern and
the desire outcome. Leaders’ ability to adjust to their own style based on these variables is directly
correlated with their leadership effectiveness and ultimate success.
2.4.1 Bureaucratic leadership
This is very structured and follows the procedures as they have established. This type of leadership
has no space to explore new ways to solve problems and is usually slow paced to ensure adherence
to the leader stated by the company. Leaders ensure that all the steps have followed prior to sending
it to the next level of authority. Universities, hospitals, banks and government usually require this
type of leader in their organizations to ensure quality, increase security and decrease corruption.
Leaders that try to speed up the process will experience frustration and anxiety (Weber, 1905).
2.4.2 Autocratic leader
This is given the power to make decisions alone, having total authority. This leadership style is
good for employees that need close supervision to perform certain tasks. Creative employees and
team players resent this type of leadership, since they are unable to enhance processes or decision
making, resulting in job dissatisfaction (Lewin et al., 1939).
2.4.3 Laissez-faire leader
It gives no continuous feedback or supervision because the employees are highly experienced and
need little supervision to obtain the expected outcome. On the other hand, this type of style is also
15
associated with leaders that don’t lead at all, failing in supervising team members, resulting in lack
of control and higher costs, bad service or failure to meet deadlines (Lewin et al., 1939).
2.4.4 Task-oriented leader
This type of leadership style focuses on the job and concentrates on the specific tasks assigned to
each employee to reach goal accomplishment. This leadership style suffers the same motivation
issues as autocratic leadership, showing no involvement in the team’s needs. It requires close
supervision and control to achieve expected results (Fiedler, 1967).
2.4.5 Environment leader
This is the one who nurtures group or organizational environment to affect the emotional and
psychological perception of an individual’s place in that group or organization. An understanding
and application of group psychology and dynamics is essential for this style to be effective. The
leader uses organizational culture to inspire individuals and develop leaders at all levels. This
leadership style relies on creating an education matrix where groups interactively learn the
fundamental psychology of group dynamics and culture from each other. The leader uses this
psychology, and complementary language, to influence direction through the members of the
inspired group to do what is required for the benefit of all (Burns, 1978).
2.4.6 Transaction leader
This type of leader style is given power to perform certain tasks and reward or punish for the
team’s performance. It gives the opportunity to the manager to lead the group and the group agrees
to follow his lead to accomplish a predetermined goal in exchange for something else. Power is
given to the leader to evaluate, correct and train subordinates when productivity is not up to the
desired level and reward effectiveness when expected outcome is reached (Burns, 1978), for
something else, Power is given to the leader to evaluate, correct and train subordinates when
productivity is not up to the desired level and reward effectiveness when expected outcome is
reached (Burns, 1978).
2.4.7 Transformation leader
This leader style motivates leader to be effective and efficient. Communication is the base for goal
achievement focusing the group in the final desired outcome or goal attainment. This leader is
16
highly visible and uses chain of command to get the job done. Transformational leaders focus on
the big picture, needing to be surrounded by people who take care of the details. The leader is
always looking for ideas that move the organization to reach the company’s vision (Burns, 1978).
2.5 Leadership Practice and Performance.
Leadership is one with the most dynamic effects during individual and organizational interaction.
In other words, ability of management to execute “collaborated effort” depends on leadership
capability. Lee and Chuang (2009), explain that the excellent leader not only inspires subordinate’s
potential to enhance efficiency but also meets their requirements in the process of achieving
organizational goals. Stogdill (1957), defined leadership as the individual practice to guide a group
to achieve the common target. Fry (2003) explains leadership as use of leading strategy to offer
inspiring motive and to enhance the staff’s potential for growth and development.
Several reasons indicate that there should be a relationship between leadership practice and
organizational performance. The first is that today’s intensive and dynamic markets feature
innovation-based competition, price/performance rivalry, decreasing returns, and the creative
destruction of existing competencies (Santora et al., 1999; Venkataraman, 1997). Studies have
suggested that effective leadership practices can facilitate the improvement of performance when
organizations face these new challenges (McGrath and MacMillan, 2000).
On the other hand, organizational performance refers to ability of an enterprise to achieve such
objectives as high profit, quality product, large market share, good financial results, and survival
at pre-determined time using relevant strategy for action (Koontz and Donnell, 1993).
Organizational performance can also be used to view how an enterprise is doing in terms of level
of profit, market share and product quality in relation to other enterprises in the same industry.
Consequently, it is a reflection of productivity of members of an enterprise measured in terms of
revenue, profit, growth, development and expansion of the organization.
Understanding the leadership practice and organizational performance is also important because
leadership is viewed by some researchers as one of the key driving forces for improving
organization’s performance. Effective leadership is seen as a potent source of management
development and sustained competitive advantage for organizational performance improvement
(Avolio, 1999; Lado, Boyd and Wright, 1992; Rowe, 2001).
17
For instance, transactional leadership helps organizations achieve their current objectives more
efficiently by linking job performance to valued rewards and by ensuring that employees have the
resources needed to get the job done (Zhu, Chew and Spengler, 2005). Visionary leaders create a
strategic vision of some future state, communicate that vision through framing and use of
metaphor, model the vision by acting consistently, and build commitment towards the vision
(Avolio, 1999; McShane and Von Glinow, 2000).
Some scholars like Zhu et al. (2005), suggest that visionary leadership will result in high levels of
cohesion, commitment, trust, motivation, and hence performance in the new organizational
environments.
Mehra, Smith, Dixon and Robertson (2006) argue that when some organizations seek efficient
ways to enable them to outperform others, a longstanding approach is to focus on the effects of
leadership. Team leaders are believed to play a pivotal role in shaping collective norms, helping
teams cope with their environments, and coordinating collective action. This leader-centered
perspective has provided valuable insights into the relationship between leadership and team
performance (Guzzo and Dickson, 1996).
Some studies have explored the strategic role of leadership to investigate how to employ leadership
paradigms and use leadership practice to improve organizational performance (Keller, 2006;
McGrath and MacMillan, 2000). This is because intangible assets such as leadership styles,
culture, skill and competence, and motivation are seen increasingly as key sources of strength in
those firms that can combine people and processes and organizational performance (Purcell et al.,
2004).
Previous studies led the expectation that leadership paradigms will have direct effects on customer
satisfaction, staff satisfaction, and financial performance. In general, however, the effects of
leadership on organizational performance have not been well studied, according to House and
Aditya’s review (1997), who criticizes leadership studies for focusing excessively on superior-
subordinate relationships to the exclusion of several other functions that leaders perform, and to
the exclusion of organizational and environmental variables that are crucial to mediate the
leadership-performance relationship.
18
Another problem with existing studies on leadership is that the results depend on the level of
analysis. House and Aditya (1997), distinguished between micro-level research that focuses on the
leader in relation to the subordinates and immediate superiors, and macro level research that
focuses on the total organization and its environment. Other scholars have also suggested that
leaders and their leadership style influence both their subordinates and organizational outcomes
(Tarabishy, Solomon, Fernald, and Sashkin, 2005).
Fenwick and Gayle (2008), in their study of the missing links in understanding the relationship
between leadership and organizational performance conclude that despite a hypothesized
leadership-performance relationship suggested by some researchers, current findings are
inconclusive and difficult to interpret.
From this review of related literature, it is evident that although some scholars believe that
leadership enhances organizational performance while others contradict this, different concepts of
leadership have been employed in different studies, making direct comparisons virtually
impossible. Gaps and unanswered questions remain. Consequently, the current study is intended
to re-examine the proposed leadership practice and organizational performance and, thus,
contribute meaningfully to the body of growing literature and knowledge in this area of study.
Therefore to do the research successfully this research will use the following model.
2.6 Empirical Review
The empirical evidence regarding the effect of leadership style on organizational performance in
various businesses is mixed. Michael (2011) confirmed that leadership has a direct cause and effect
relationship with organizations success as leaders are liable to determine values, culture and staff
motivation which affect the performance. Ojokuku et al. (2012); Koech & Namusonge (2012);
Obiwuru et al. (2011) also argued that there is both positive and negative correlation between
leadership style and performance at different correlation values.
It was also found that leadership style dimensions jointly predict organizational performance, on
leadership dimensions; transformational and democratic leadership style in which employees are
allowed to have sense of belonging, carry out higher responsibility with little supervision, and
followers are helped to achieve their visions and needs enhance organizational efficiency (Ojokuku
et al., 2012). John K Asamoah (2017) also asserted that to enhance productivity, leadership of the
19
bank need to review the bank’s vision, introduced more creative and winning products, and
changes the human resources and service delivery systems. The study of Kamau John Muchiri &
Gachunga Hazel (2018) similarly found that there is a positive significant correlation between
transformational leadership, transactional leadership and organizational performance in
commercial banks of Kenya.
There is a significant association between profitability of bank and quality of the relationship
between leaders and followers (Adisa et al., 2017). The study conducted by M. Ahmad Sofi & K.
Devanadhen (2015) and Augustine N Beakana (2017, transformational leadership was found
preferable leadership style in the banking organizations. Transformational and transactional
leadership styles in combination and organizational performance have also positive relationship
which inclined to such styles increase bank performance (O., Abimbola; O. Omowumi & A. O,
Dele, 2015).
In other study, it is revealed that transformational leadership has strong positive correlation with
performance while transactional leadership has average positive correlation with performance
(Peris M. Koech & G.S Namusonge, 2012).
But, the study conducted by Nongo Saasongu (2015) in Nigeria revealed that transactional
leadership style is more appropriate in inducing performance than other leadership styles.
Similarly, Obiwuru et al. (2011) found that transactional leadership style had significant positive
effect on organizational performance.
The autocratic leadership is the least effective as it might not motivate employees and reduce the
productivity and performance of the organization (Akram Abdulraqeb Sultan Al-Khaled, Chung
Jee Fenn, 2020). But, Nwachukwu (1988) declare that autocratic leadership style has positive
effect on banks’ performance although it is insignificant. The findings of some research shows that
leaders those use democratic style in their daily operations found to have significant positive
impact on the organizational performance and as a result, there is strong relationship between
leadership style and organizational performance (Akparep et al., 2019). Chris U. Abeh Ukaidi
(2016), however, asserted that democratic leadership style donated significantly to organizational
performance, than the autocratic and laissez faire style as democratic leadership shares decision
making with the group. On the other hand, the low value for autocratic and laissez faire styles are
20
an indication of little freedom, hostility, aggression, and primitive emotions among
employees/group.
Democratic leadership mostly influences performance and found to be the most commonly used
in the most successful organizations (Ali, Mohamed & Davoud, 2011 and Akparep et al., 2019).
Nwachukwu (1988) believed that democratic leadership is the best style of leadership in Nigerian
banks to increase productivity, morale and improved labor relation. Worall (2004) as cited in
Longe, Olukayode (2014) found that in some organizations where leaders adopted restrictive style,
there was no performance but, where participative leadership style was used, performance was
found to be high.
In Ethiopia, there is little empirical literature conducted on the subject area. However, among the
research conducted in the Ethiopian context, Mesfin Lemma and Deres Eshete in their study
conducted in 2018 on the effects of leadership styles on organizational performance found that
there is significant and positive relationship between leadership style and performance. They found
that autocratic, democratic and charismatic leadership styles have a positive relation with
organizational performances while a laissez-fair leadership style has a negative relation with
performance. Transformational that brings changes in working environment by inspiring
employees for changes, creation, innovation, to go beyond from what they actually think they can
and transactional that reward employees and make recognition in exchange for the work they
perform, giving close directions and guidance have positive and significant effect in promoting the
performance of the bank (Mesfin and Deres, 2018).
Similarly, in the Ethiopian banking sector, transformational leadership which focuses on

renovation of organization and individual, and transactional leadership which involves reward and
recognition in exchange for the work done and close assistant and guidance are more relevant are
positively related to performance (Tariku et al., 2020).
21
2.7 Conceptual Frame Work
Conceptual frame work provides an illustration of relationship between variables the dependent
variable performance of project which is determine by leadership skills, leadership experience and
leadership style.
Figure 2.1 Conceptual Frame Work
Leadership skill
Leadership experience
dcdcdcdd
Transactional leadership Organizational

style Performance
Transformational
leadership style
Leases Faire Leadership
Source: - own source 2023
22
CHAPTER THREE
3 RESEARCH METHODOLOGY
3.1 Introduction
This chapter sets out various stages and phases that was followed in completing the study. It
involves a blueprint for the collection, measurement and analysis of data. This section is an overall
scheme, plan or structure conceived to aid the researcher in answering the raised research question.
This stage is about how research was executed and how respondents was approached, as well as
how the research was completed.
Therefore in this section the research was identifies the procedures and techniques that was used
in the collection, processing and analysis of data. Specifically the following subsections are
included; research design, research approach, source of data, data collection techniques, target
population, sampling techniques and sample size, data analysis and interpretation, reliability and
validity test and finally ethical consideration was included.
3.2 Research Design
Research design provides the basic direction for carrying out a research to obtain answer to
research questions. It is a master plan specifying the method and procedures for collecting and
analyzing the need of information. Research design is needed because it facilitates the smooth
sailing of the various research operations, thereby making research as efficient as possible yielding
maximal information with minimal expenditure of effort, time and money (Kothari, 2004:32). It
helps the study to be relevant to the problem and it uses economical procedures. The same authors
discusses three types of research design, namely inferential (emphasizes discovery of ideas and
insights), descriptive (concerned with determining the frequency with which an event occurs or
relationship between variables) and inferential (concerned with determining the cause and effect
relationships). It specifies which approach was used for gathering and analyzing the data. The
types of research employed under this study was descriptive research and inferential research. The
major purpose of descriptive research is description of the state of affairs as it exists at present.
Then this study was describes the role of leadership on organizational performance in case of Ethio
telecom Dilla branch.
Second, the study was employed descriptive research and inferential research in that the
relationship between independent variables (leadership skills, leadership experience, Autocratic
23
leadership style, Democratic leadership style, leases faire leadership style) is correlated with
dependent variables (organizational performance).
3.3 Research approach
There are two methods that provide in the research method such as Quantitative and Qualitative,
where one of them is not better than the others, all of this depends on how the researcher want to
do a research of study (Ghauri and Kjell, 2005).This study was used quantitative research
approach.
Although quantitative and qualitative approach differ in how they access knowledge and the
research questions they address, they complementary and help provide a more complete analysis
of the research problem. While quantitative approach enables the researcher to look for
relationship between the variables and generalize results to the main population. The qualitative
approach enables the researcher to acquire in depth understanding of respondent experience and
perception. (Mare, 2007)
As indicated in the above discussion both quantitative and qualitative research approaches have
limitations. According to Sale et al. (2002).the advantage of a quantitative research approach may
be limitations for a qualitative approach and vice versa.
Mixed research design, which is supposed to alleviate the limitations of quantitative and qualitative
approaches bases on pragmatic knowledge claims. Pragmatists contend that knowledge claims
arise out of actions, situations, and consequences rather than antecedent conditions. There is a
concern with applications and solutions to problems. Instead of methods being important the
problem is most important and researchers use all (mixed method studies) approaches to
understand the problems. (Creswell, 2003)
The goal for researchers using the mixed methods approach is to draw from the strengths and
minimize the weaknesses of the quantitative and qualitative research approaches (Carrie, 2007).
To sum up, quantitative and qualitative research methods investigate and explore the different
claims to knowledge and both methods are designed to address a specific type of research question.
While the quantitative method provides an objective measure of reality, the qualitative method
allows the researcher to explore and better understand the complexity of a phenomenon.
24
3.4 Source of Data Collection
Data collection is integral part of the research design. Generally there are two types of sources of
data namely primary and secondary data sources. Primary data are those information obtained from
the original source while secondary data are those obtained as second hand data like from books
and any other sources which is not original (Kothari, 2004). In order to collect reliable data, both
primary and secondary sources of data was the major focus of the researcher. To achieve the
objectives of this study, the primary data was collected through questionnaires interviews.
Secondary sources of data was gathered from different sources like references books, internet,
different thesis, dissertation and projects, literatures, articles and other academic papers,
unpublished reports and others related sources.
3.5 Data Collection Techniques
To gather the quantitative and qualitative data, this study was employee both the primary and
secondary data collection techniques.
Primary data was collect by using questionnaires. Both open and close ended questionnaire was
design and distribute to respondents through enumerators to get the needed information. Pre testing
of the questionnaire was carried out and depending on the result; some adjustments was made to
the final version of the questionnaire. The researcher was also guide and worked with the
numerators throughout the data collection process.
The study was use both published and unpublished secondary data Collection Techniques like
references books, internet, different thesis, dissertation and projects, literatures, articles and other
academic papers, unpublished reports and others related sources.
3.6 Target population
Population is defined as a cluster of statistically equivalent individuals or a collection of
individuals who are genetically exchangeable (Lawson, 2012).
Target population of this study was 125 employees’ of Ethio telecom Dilla branch.
3.7 Sample size and Sampling technique
The research was a non-probability sampling design for the census sampling method. Census is
associate with investigation of all the individual parts that form up a population. It’s a biased
methodology that's helpful once some members of a population build higher subjects than others.
The main objective of a census sample is to produce a sample that can be logically assumed to be
25
representative of the population, for this study used the census method because the researcher
selects Managers, supervisor, front line employee, filed worker and sales man of Ethio telecom
Dilla branch. Therefore, the total numbers of the population of the study was 125 employees’ of
Ethio telecom Dilla branch.
3.8 Method of Data analysis

All research questions was test with the help of the SPSS of computer software. In order to analyze
the data the two sets of Statistics: Descriptive as well as inferential statistics was used. Descriptive
statistics include percentage and frequency whereas inferential statistics include correlation and
regression analysis. Pearson correlation was used to measure the relationship between independent
variables (leadership skills, leadership experience, Autocratic leadership style, Democratic
leadership style, leases faire leadership style) has an effect on the dependent variable
(organizational performance) by using correlation. And multiple linear regressions was used to
measure the effect of independent variables (leadership skills, leadership experience, Autocratic
leadership style, Democratic leadership style, leases faire leadership style) on dependent variable
3.8.1 The Pearson Correlation Coefficient
According to Phyllis and his associates (2007:18-55), inferences have a very important in
management research. This is so because conclusions are normally established on the bases of
results. Such generalizations were therefore, be made for the population from the samples. They
speculate that the Pearson Correlation Coefficient is a widely used statistical method for obtaining
an index of the relationships between two variables when the relationships between the variables
is linear and when the two variables correlation are continuous. To ascertain whether a statistically
significant relationship exists between Leadership skill, Leadership experience, Transactional
leadership style, Transformational leadership style, Leases Faire Leadership style with
Organizational performance.
According to Duncan C. and Dennis H. (2004:38-41), correlation coefficient can range from -1 to
+1. The value of -1 represents a perfect negative correlation while a value of +1 represents a perfect
positive correlation. A value of 0 correlations represents no relationship. In this study Pearson’s
Correlation Coefficient was used to determine the following relationships.
26
 Leadership skills is a significant determinant factor of Organizational performance in Ethio
telecom Dilla branch.
 Leadership experience is a significant determinant factor of Organizational performance in
Ethio telecom Dilla branch.
 Transactional leadership style is a significant determinant factor of Organizational
performance in Ethio telecom Dilla branch.
 Transformational leadership style is a significant determinant factor of Organizational
 Leases faire leadership style is a significant determinant factor of Organizational
3.8.2 Linear Regression Analysis
Linear regression is a method of estimating or predicting a value on some dependent variable given
the values of one or more independent variables. Like correlations, statistical regression examines
the association or relationship between variables. Unlike correlations, however, the primary
purpose of regression is prediction (Geoffrey M. et al., 2005:224-225). In these study liner
regressions will be employed. Liner regression analysis takes into account the inter-correlations
among all variables involved. This method also takes into account the correlations among the
predictor scores (John Adams, et al., 2007:198). They added liner regression analysis, which
means one predictor is jointly regressed against the criterion variable. This method is used to
determine if the independent variables will explain the variance in dependent variable.
3.8.2.1 Regression Functions
The equation of regressions on this study is generally built around two sets of variables, namely
dependent variable (Organizational performance) and independent variables (Leadership skills,
Leadership experience, Autocratic Leadership style, Democratic leadership style, Leases faire
leadership style). The basic objective of using regression equation on this study will be to make
the study more effective at describing, understanding and predicting the stated variables.
Regress Performance on Selected Variables
Yi = β0+ β1X1 + β2X2 + β3 X3 + β4X4 + β4X5
Where:
Y is the response or dependent variable- Organizational performance of Ethio telecom Dilla branch
X1= Leadership skills
27
X2= Leadership experience
X3= Transactional leadership style
X4= Transformational leadership style
X5= Leases faire leadership style are the explanatory variables.
β0 is the intercept term- constant which would be equal to the mean if all slope coefficients are 0.
β1, β2, β3 and β4 are the coefficients associated with each independent variable which measures
the change in the mean value of Y, per unit change in their respective independent variables.
Accordingly, this statistical technique was used to explain the following relationships. Regress
Organizational performance of Ethio telecom Dilla branch (as dependent variable) on the selected
linear combination of the independent variables using multiple regressions.
3.9 Reliability Test and Validity
3.9.1 Reliability Test
Reliability is the degree to which the measure of a construct is consistent or dependable. There are
many ways of estimating reliability one of which is internal consistency reliability. It is a measure
of consistency between different items of the same construct. If a multiple-item construct measure
is administered to respondents, the extent to which respondents rate those items in a similar manner
is a reflection of internal consistency. This reliability can be estimated in terms of Cronbache alpha
(Bhattacherjee, 2012). Zikmund (2003) stated that the researcher should conduct the pre-testing to
ensure the questionnaire’s reliability and to make sure that measures are free from error and
therefore yield consistent result. The reliability of the questions for each variables are obtained
when Cronbache coefficient alpha is at least 0.6 and the internal consistency and reliability of the
questions will be considered higher, if the result is near to 1. In general, a reliability of a scale or
item may fall between 0 and 1.
George and Mallery (2003) also stated that a reliability score of greater than 0.9 is excellent, greater
than 0.8 is good, greater than 0.7 is acceptable, greater than 0.6 questionable, greater than 0.5 is
poor and less than 0.5 is unacceptable. In this study Cronbache alpha model was used to measure
the overall reliability of the data obtained from a questionnaire.
28
Table 3.1 Reliability of the Survey Questionnaire
Reliability Statistics
Cronbach's Alpha N of Items
.957 6
Source: SPSS result of Field survey data, 2023
3.9.2 Validity Test
Validity refers to the extent to which a measure adequately represents the underlying construct that
it is supposed to measure (Bhattacherjee, 2012). Content validity was checked through getting the
questionnaire reviewed by experts. An insight that was obtained from the pilot survey of the 10
employee was analyzed and used to make adjustments on the questionnaire items. Reliability of
the questionnaire items was determined using the test-retest method in which the same respondents
was requested to provide information for the second time (Kothari, 2005). The results from the
pilot study was used to calculate the reliability coefficient.
3.10 Ethical consideration
After the title of the study will be approve by Academic Committee of College of Business and
economics of infolnk University College. Any relevant data for the study was collected by issuing
an official letter to the concerned organizations. All the study participants will be inform about the
purpose of the study and finally their consent was obtained before collecting data. The respondent
has the right to refuse or terminate at any point of the data collecting process. Concerning the right
to anonymity and confidentiality, the participants was not required to write their names on the
questionnaire and assured that their responses are not in any way linked to them. The dissemination
of the finding was not referring to specific respondent. In any case, the confidentiality of
information supplied and the anonymity of respondents was respected.
29
CHAPTER FOUR
4 RESULTS AND DISCUSSION
4.1 Introduction
This chapter focuses on the analysis of the results of the study. The chapter has two sections. At
the first section of the chapter, the demographic profile of the respondents is presented. In the
second section, the main part of the study, the analysis and interpretation of data those were
collected through questionnaire in support of the quantitative results are presented. Presentation of
findings in each section is according to the order of the basic research questions of the thesis.
Descriptive and inferential analyses of the study were presented respectively. The data for this
study were collected using a self-administered questionnaire to identified sample respondents. Of
the total of 125 questionnaires distributed, all 125 were collected that accounts 100% response
rate. This response rate was adequate to safely conclude on the effect of leader ship style on Ethio
telecom organizational performance. Accordingly, the analysis of this study was based on 125
respondents only.
4.2 Descriptive statistics

Descriptive statistics were computed in the form of frequency distribution, percentage, mean and
standard deviation for all variables and responses of all respondents. Computed frequency
distribution and percent is used to determine the proportion of respondents choosing the various
responses. Likewise, computed mean is used to measure the central tendency on each dimension
in the questionnaire which implies that the levels of agreeableness and disagreeableness or
perceptions of the respondents on various dimensions in the questionnaires. And the value of
standard deviation indicates that how much variation a value deviates from the mean.
4.2.1 Demographic profile of the respondents

The first part of the questionnaire consists of four items about demographic data of the respondents
such as: sex group of respondents, age group of respondents, academic qualification of
respondents, and work experience of the respondents; this helped the researcher to understand the
characteristics of respondents with in different categories and the following table summarized the
demographic data of the respondents.
30
4.2.1.1 Sex group of respondents
Table 4.1 Genders of the Respondents
Sex
Frequency Percent Valid Percent Cumulative
Percent
Valid Male 75 60.0 60.0 60.0
Female 50 40.0 40.0 100.0
Total 125 100.0 100.0
Source: Own Survey, 2023
As shown in Table 4.1, more than half 75 (60%) of the respondents were male and the remaining
50(40%) of the respondents were female. Even though, the representation of female respondents
was found to be less as compared to male respondents, this gender mix was rational to realize
about the effect of leadership style on project performance at Ethio telecom.
4.2.1.2 Age group of respondents

Figure 4.1 Age of the Respondents

Regarding the age group of respondents, the first group 50% of respondents were within the age
category of 31-40 years of age. The second group had 34% within the age category of 41-50 years.
The third were 22% within the age category of 20-30 and the last were19% within the age category
of 51 and above. In sum, the majority 72% of the respondents were within the age category of 20-
40 years; which implies that the majority of the respondents were young and at the dynamic age
level, need for the organization.
31
4.2.1.3 Educational Level of respondents
Figure 4.2 Educational Level of the Respondents

With regard to academic qualification of the respondents, the majority 70% of the respondents
were first degree holders. The second group 24.8% of the respondents were diploma. And the rest
4.8% of the respondents were holders of 2nd Degree or above.
4.2.1.4 Work Experience of respondents

Table 4.2 Work Experience of the Respondents
Service Year
Frequency Percent Valid Percent Cumulative
Percent
Valid 1-10 35 28.0 28.0 28.0
11-20 52 41.6 41.6 69.6
21-30 30 24.0 24.0 93.6
31 and above 8 6.4 6.4 100.0
Total 125 100.0 100.0

Regarding the work experience of the respondents, the first group of respondents 58(41.6%) had
a working experience of 11 to 20 years. 35(28%) of respondents had served in the organization
between 1-10 years. 30(24%) of respondents had served in the organization between 21-30years.
And 8(6.4%) of respondents had served in the organization 31 and above.
32
4.3 Descriptive Analysis of the Study Area
This part of analysis made based on survey questioners gathered from 126 respondents using 5
point lackert scale ‘.The researcher consider his measure, an inherent assumption, which state that
with the usage of lackert scale that although the scale is truly ordinal by nature, it is assumed to be
an interval scale with which statistical properties such as the mean can be justifiable used. It is an
assumption made quite frequently in empirical studies (Edmindson, 2005). Accordingly the paper
applies mean and standard deviation as the best measure for analysis based on the mean range
developed by Al-sayaad et al. (2006 cited in Bassam, 2013) of the following table
Table 4.3 Five Scaled Likert’s Criterion
No Mean Range Response Option

1 1.00 – 1.80 Strongly disagree
2 1.81 – 2.60 Disagree
3 2.61 – 3.40 Neutral
4 3.41 – 4.20 Agree
5 4.21 – 5.00 Strongly agree
Source: Al-sayaad et al. (2006 cited in Bassam, 2013)
Standard deviation is a widely used measurement of variability or diversity used in statistical and
probability theory. It shows how much variation or “dispersion” there is from the average (mean
or expected value). A low standard deviation indicates that the data point tend to very close to the
mean, whereas high standard deviation indicate that the data are spread out over a large range of
values. The sample mean is to show the majority of the respondent as best predictor of the
population and hence to infer for other.
33
4.3.1.1 Leader Ship Skill
Table 4.4 Perception of respondents on leadership skill
Descriptive Statistics
Statement N Mean Std.
Deviation
A leader is effective based on ability to solve multiple problems 125 3.12 1.209
Interpersonal effectiveness is key in accomplishing corporation 125 3.63 1.028

goal & objective
Effective communication and timely feedback lead to high 125 3.07 1.123
performing team
Both the leader and team member need to take self-development 125 3.13 1.062
course in order to work properly
Different skills are required in different level of management with 125 3.18 1.043
conceptual skill at the top people skill at the middle and technical
skill at the lower level.
Valid N (listwise) 125

Table 4.5 presents the perceptions of respondents on leadership skill. Items were measured in terms
of the calculation of their mean and standard deviation. Based on the results, each item is discussed
in detail as follows.
From the findings, the respondents agreed that leadership skills are important in the performance
of Ethio telecom. Interpersonal effectiveness is key in accomplishing corporation goal & objective
with mean of 3.63 and a corresponding standard deviation of 1.028. This is in line with Lord and
Hall (2015) findings that a leader’s effectiveness depends on his ability to solve multiple problems.
A leader is effective based on ability to solve multiple problems, effectiveness communication and
timely feedback were rated high in affecting performance with means of 3.12 and 3.07 respectively
and standard deviations of 1.209 and 1.123. This enriches the study of Zenger &Folkman, (2012)
contending that multiple competencies were most effective.
34
Respondents approved to the statement that both the leaders and team members need to take self-
development courses in order to work properly with a mean of 3.13 and a corresponding standard
deviation of 1.062 and different skills are required at different levels of management, with
conceptual skills at the top, people skills at the middle and technical skills at the lower levels with
a mean of 3.18 and a corresponding standard deviation of 1.043. This is line up with Yulk (2006)
who found out that different competency mixes are required at different managerial levels, with
conceptual skills at higher levels and technical skills at lower levels.
4.3.1.2 Leadership Experience
Table 4.5 Perception of respondents’ on leadership experience
Deviation
Managers with expansive experience are better paced to 125 2.98 1.085
implement missions within the timely.
Job leader experience is important for planning and supervising 125 2.82 1.040
organization execution.
Leadership experience is more desirable for effective 125 3.16 1.035
performance of Ethio telecom Dilla branch
Leadership past involvement leads to effective performance of 125 3.19 1.196
Ethio telecom Dilla branch
A minimum year of experience of organization leader is required 125 3.04 1.167
for implementing Ethio telecom Dilla branch
Table 4.5 presents the perceptions of respondents on leadership experience. Items were measured
in terms of mean and standard deviation. Based on the results, each item is discussed in detail as
follows.
As shown in Table 4.5, respondents agreed that minimum years of experience of an organizational
leader is required for implementation Ethio telecom Dilla and that Leadership past involvement
leads to effective performance of Ethio telecom Dilla branch with means of 3.04 and 3.19
35
respectively and corresponding standard deviations of 1.167 and 1.196. This is in line with Kaifi,
Bahaudin and Mujtaba, (2010), who concluded that leadership experience, definitely influences
While an organization leader’s experience is important for planning and supervising organization,
managers with expansive experience are better placed to implement organization within budget
and timelines that lead to effective performance of organization scored means of 3.16, 2.82 and
2.98 and standard deviations of 1.035, 1.040 and 1.085. This enriches the study of Rodrigues &
Lopes (1997) who recognized that a manager’s experience is measured in terms of time in years,
past involvement and should reflect in the quality of his work.
Ehrenberg & Smith (2000), in their Human Capital Theory suggest that leaders make investments
of experience in themselves, which provides accumulation of both technical and workforce
knowledge and skills and will enhance their ability to influence teams and eventually
organizational performance. It was also noted that organization that had a leader with professional
and technical knowledge were better performing than those that had leaders with diverse
knowledge.
4.3.1.3 Transactional Leadership Style
Table 4.6 Perception of respondents on transactional leadership style
Deviation
Employees want to part of the decision making process 125 3.80 1.470
Providing guidance without pressure the key to be a good 125 3.34 .991
leader
Most worker want to frequent and supportive 125 3.40 1.301
communication from their leader
Leader need to help subordinate accept responsibility for 125 3.11 1.369
completing their work
Peoples are always competent and if given a task will do 125 3.12 1.490
good
36
Table 4.6 presents the perceptions of respondents on transactional leadership style. Items were
measured in terms of the calculation of their mean and standard deviation. Based on the results,
each item can be discussed in detail as follows.
In regards to transactional leadership style, the respondents agreed to the statements that
employees want to be part of the decision making process; providing guidance without pressure is
the key to being a good leader; most workers want frequent and supportive communication from
their leader with a mean of 3.80, 3.34 and 3.40 respectively and equivalent standard deviation of
1.470, 0.991 and 1.301.
The respondents also acknowledged that leaders need to help subordinates accept responsibility
for completing their work; it is the leaders’ responsibility to help subordinates in finding their
passion and that people are always competent and if given a task will do well with respective
means of 3.11 and 3.12 with standard deviations of 1.369 and 1.490.
4.3.1.4 Transformation Leadership Style
Table 4.7 Perception of respondents on transformation leadership style
Deviation
Employees need to be supervised closely otherwise they are not 125 2.97 1.143
able to do the jobs.
It is fair to say that most employees are lazy 125 3.22 .997
Most employees fell in secured and need direction in their jobs 125 2.92 1.168
The leader is the chief judge to the achievement of the members 125 2.87 1.218
in the group.
Effective leader give order and clarify procedure. 125 2.62 1.268
37
Table 4.7 presents the perceptions of respondents on transformation leadership style. Items were
The findings of transformation leadership style were that employees need to be supervised closely
otherwise they are not able to do their job with a mean of 2.97 and it is fair to say that most
employees are lazy with a mean of 3.22 with corresponding standard deviations being computed
as 1.143 and 0.997.
The respondents neutral to the statements that most employees feel insecure and need direction in
their jobs with a mean of 2.92; the leader is the chief judge to the achievement of the members in
the group with a mean of 2.87 and that effective leaders give orders and clarify procedures with a
mean of 2.62 with corresponding standard deviations of 1.168, 1.218 and 1.268.
4.3.1.5 Leizesfaire Leadership Style
Table 4.8 perception of respondents on laissez-faire leadership style
Deviation
Leadership involves saying out of the way as subordinates do 125 2.60 1.225
their work
Leaders should allow their subordinate to apprise their work 125 3.37 1.004
Leader should let subordinates work problems their own. 125 3.07 1.094
Leaders should give subordinate complete freedom to solve 125 3.06 1.159
problems in their work.
In most situation worker prefer little input from their leader. 125 3.54 1.059
Table 4.8 presents the perceptions of respondents on laissez-faire leadership style. Items were
38
As explained in table 4.8, In leisez-faire leadership style, it was found out that respondents agreed
that In most situation worker prefer little input from their leader with a mean of 3.54; leadership
involves staying out of the way as subordinates do their work with a mean of 2.60; leaders should
allow their subordinates to appraise their work with a mean of 3.37 with standard deviations of
1.094, 1.225 and 1.004. Likewise, leaders should give subordinates complete freedom to solve
problems in their work with a mean of 3.06 and corresponding standard deviations of 1.159.
4.3.1.6 Organizational (Ethio Telecom) Performance
Table 4.9 perception of respondents on project performance
Deviation
Ethio telecom Dilla branch staff are properly selected and 125 3.76 1.019
trained
Ethio telecom Dilla branch are completed within the budget 125 3.75 .964
programmer
Assignments are completed within time 125 3.37 1.118
Stakeholders are constantly involved in corporation activities 125 4.06 .836
Mission objectives are achieved 125 4.05 1.061
Job beneficiaries are satisfied 125 4.02 .954
Table 4.9 presents the perceptions of respondents on organization performance. Items were
Respondents replied that stakeholders are constantly involved in corporation activities and
corporation staff are properly selected and trained with a mean of 4.06 and 3.76 respectively and
corresponding standard deviations of .836 and 1.019. As well, respondents agreed that
organization objectives are achieved so that projects are completed within budget and time with a
mean of 4.05, 3.75 and 3.37 respectively and corresponding standard deviations of 1.061, 0.964
39
and 1.118. At last, the respondents approved that organization beneficiaries are satisfied with a
mean of 4.02 and corresponding standard deviations 0.954.
4.4 Results of Inferential Statistics

4.4.1 Correlation analysis
Correlation was used to find out the relationship between the independent variable and the
dependent variable as conceptualized in the framework. A correlation coefficient expresses
quantitatively the magnitude and direction of the linear relationship between variables, Pearson
correlation coefficient reveal magnitude and direction of (either positive or negative) and the
intensity of the relationship (-1 to +1). The researcher used one of the most commonly used types
of correlation coefficient which is Pearson correlation coefficient methods because of the statistical
accuracy that usually results from this method. The strength of correlation would be interpreted
through suggestion by Evans (1996) as shown in the following pattern.
Table 4.10 Rule of thumb for about the strength of correlation coefficient
Range of coefficient Description of strength

±.81 to ± 1.00 Very strong
± .61 to ±.80 Strong
± .41 to ± .60 Moderate
± .21 to ±.40 Weak
± .oo to ± .20 None
Source: - (Bhattacherjee, 2012)
40
Table 4.11 Pearson’s Correlation Analysis/Correlation Matrix
Correlations
Organizational
Performance
Organizational Performance Pearson Correlation 1
Sig. (2-tailed)
N 125
Leadership Skills Pearson Correlation .805**
Sig. (2-tailed) .000
N 124
Leadership Experience Pearson Correlation .836**
N 124
Transactional leadership style Pearson Correlation .717**
N 125
Transformational leadership style Pearson Correlation .869**
N 125
Leases Faire Leadership Style Pearson Correlation .918**
N 125
**. Correlation is significant at the 0.01 level (2-tailed).
As described in Table 4.11, the results revealed that there was a direct and positive relationship
between the dependent variable and all the independent variables. Leadership skill and
Transactional leadership style was observed to significantly have the strong correlation with
Organizational Performance in ethio telecom (r =0.805, p =0.000 and r=717, p=0.000).
There was also significant very strong positive relationship between, Leases Faire Leadership
Style, transformational leadership style and Leadership experience and Organizational
41
Performance in ethio telecom (r =0.918, p =0.000, r=0.869, p= 0.000 and r =0.836, p= 0.000)
respectively.
4.4.2 Regression analysis
This section found out how the variation of the dependent variable, Organizational Performance,
is explained by a portion variation of the independent variation. In addition, multiple regression
analysis was used to examine the effect of the independent variable on the dependent variable. To
achieve this, we find the coefficient of determination and test its significance, and to determine the
regression line and test its slope. The coefficient of determination R2 shows how much of the
variation of the dependent variable, can be explained by a portion variation of the independent
variable.
Table 4.12 indicates the coefficient of determination R2 for the multiple regression between
independent variable and dependent variable. But the researcher has conducted basic assumption
tests before running the regression model. These are normality of the distribution, linearity of the
relationship between the independent and dependent variables and multicollinearity tests which
have shown below:
Assumption 1: Multicollinearity test
Multicollinearity refers to the situation in which the independent/predictor variables are highly
correlated. In this study multicollinearity was checked with tolerance and Variance Inflation Factor
(VIF) statistics. Andy (2006) suggests that a tolerance value less than 0.1 almost certainly
describes a serious colinearity problem. Burns and Burns (2008) also stated that a VIF value greater
than 10 is also a concern. Similarly, Field (2009), underlines that, values for “tolerance” below 0.1
indicate serious problems, although several statisticians suggest that values for “tolerance” below
0.2 are worthy of concern. In this study, all of the independent variables found to have a tolerance
of more than 0.1 and a VIF value of less than 10.
Table 4.12 Multicollinarity test result
Coefficients
Model Collinearity Statistics
Tolerance VIF
1 (Constant)
Leadership skill .110 9.093
42
Leadership experience .188 5.313
Transactional leadership style .194 5.166
transformational leadership style .132 7.548
Leases Faire Leadership style .169 5.903
a. Dependent Variable: Organizational Performance
Table 4.13 model summary
Model Summary
Mode R R Adjusted R Std. Error of the Estimate
l Square Square
1 .945a .893 .888 .29658
a. Predictors: (Constant), LFLS, TRLS, LEX, TLST, LSK
b. Dependent Variable: Organizational Performance
From the above model summary in Table 4.13, it can be seen that R is .945 shows that there is a
positive relationship between predictor and dependent variable and R square is .893 indicates that
about 89.3% of the variance of organizational performance (dependent variable) can be explained
by predictor variable, the remaining 10.7% of the variance is explained by other variables which
are not included in this study.
Table 4.14 ANOVA
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 86.465 5 17.293 196.596 .000b
Residual 10.379 118 .088

Total 96.844 123
43
b. Predictors: (Constant), LFLS, TRLS, LEX, TLST, LSK
From the ANOVA Table 4.14, the F- test result and the P- Value tests whether the overall
regression model is good predictor and the probability of this result is occurred by chance or not.
In this regard, the F- test result is 196.59 with a significance of less than 0.01. This means, the
probability of those results occurs by chance is < 0.01. This implies, 99 times out of 100, the
estimate will reflect the true population characteristic. And it can be concluded as the overall
regression model is significant, F (5, 118) =196.59, P<0.01, R2= 89.3% (that is the regression
model is a good to fit the data). Therefore, significant amount of organizational performance is
influenced by independent variable. In other words, independent variables significantly predict the
dependent variable.
Table 4.15. Coefficient
Coefficientsa
Model Unstandardized Standardized T Sig.
Coefficients Coefficients
B Std. Beta
Error
1 (Constant) .601 .108 5.563 .000
Leadership skill .191 .093 .187 2.063 .041
Leadership experience .052 .070 .052 .742 .460
Transactional leadership style .088 .065 .093 1.352 .179
transformational leadership style .040 .079 .042 .504 .615
Leases Faire Leadership style .596 .067 .650 8.878 .000
The regression model provides statistical control through which the study established the effect of
each predictor variable. Holding all variables at zero will result in a positive performance of Ethio
telecom Dilla branch equal to 0.601 units. In a similar way, reducing all other independent
44
variables to zero, a unit change in leadership skill will result in 0.191 increments in positive
performance of the organization. The findings indicate 0.052 increments in performance of the
organization when all other independent variables are reduced to zero with only a unit change in
leadership experience, while a unit change in transactional leadership style while holding the rest
of independent variables constant would lead to a 0.88 increments in promising performance of
the organizational performance. Likewise, reducing all other independent variables to zero, a unit
change in transformational leadership will result in 0.040 increments in positive performance of
the organization. Finally, a unit change in Leases Faire leadership style will yield 0.596 increments
in performance of this specific organizational performance when all other predictor variables are
held constant at zero. The results also show that the coefficients for each variable are non-zero.
This means that all the independent variables affect the response variable. However, since the p-
values for, leadership experience, transformational leadership style and transactional leadership
styles are greater than 0.05, these predictors are not very significant. On the other hand, leadership
skills and Leases Faire leadership style are significant predictors of performance of the
organizational performance with p values of less than 0.05/ the significance level is below 5%.
4.5 Hypothesis test
Hypothesis testing is the method of testing whether claims or hypotheses regarding a population
are likely to be true. The goal of hypothesis testing is to determine the likelihood that a population
parameter, such as the mean, is likely to be true. Here there are two hypotheses: null (H0), and
alternative (Ha). The researcher tests whether the value stated in the null hypothesis or in the
alternate hypothesis is likely to be true and accepted. The only reason of testing the null hypothesis
is because the researcher thinks that it is wrong and to know what it is actually the relationship of
variables in the case organizations. The significance (sig.) value expresses a value to accept or
reject the null hypotheses of alternate hypothesis. It is also called the p-value. Therefore, the
smaller the p-value, the better will be. The general rule is: reject H0 and accept Ha if p < .05
otherwise accept H0 and reject Ha if p ≥ .05 (Pallant, 2007 cited in Fantahun 2017).
Hypothesis 1
 H0: Leadership skill is not significant determinant factor of Organizational
Performance in ethio telecom.
 H1: Leadership skill is significant determinant factor of Organizational Performance in

ethio telecom.
45
The regression analysis of the above modal, Leadership skill had positive effect or correlation on
Organizational Performance in ethio telecom (β= .191, P= 0.41). Hence, alternative hypothesis
was supported. It implies that Leadership skill had a positive influence on Organizational
Hypothesis 2
 H0: Leadership experience is not significant determinant factor of Organizational
 H2: Leadership experience is significant determinant factor of Organizational

The regression analysis of the above modal, Leadership experience had positive effect or
correlation on Organizational Performance in ethio telecom (β= .052, P= .460). Therefore, the
study reject alternative hypothesis. It implies that Leadership experience had a negative/
insignificant influence on Organizational Performance in ethio telecom.
Hypothesis 3
 H0: Transactional leadership style is not significant determinant factor of

Organizational Performance in ethio telecom.
 H3: Transactional leadership style is significant determinant factor of Organizational

The regression analysis of the above modal, Transactional leadership style had positive effect or
correlation on Organizational Performance in ethio telecom (β= .088, P= .179). Therefore, the
study reject alternative hypothesis. It implies that Transactional leadership style had a negative/
Hypothesis 4
 H0: Transformational leadership style are not significant determinant factor of
Organizational Performance in ethio telecom
 H4: Transformational leadership style are significant determinant factor of

Organizational Performance in ethio telecom
46
The regression analysis of the above modal, Transformational leadership style had positive effect
or correlation on Organizational Performance in ethio telecom (β= .040, P= .615). Therefore, the
study reject alternative hypothesis. It implies that Transformational leadership style had a negative/
Hypothesis 5
 H0: Leases Faire Leadership is not significant determinant factor of Organizational
Performance in ethio telecom
 H5: Leases Faire Leadership is significant determinant factor of Organizational

Performance in ethio telecom
The regression analysis of the above modal, Leases Faire Leadership had positive effect or
correlation on Organizational Performance in ethio telecom (β= .596, P= .000). Hence, alternative
hypothesis was supported. It implies that Leases Faire Leadership had a positive influence on
Organizational Performance in ethio telecom.
47
CHAPTER FIVE
5 CONCLUSIONS AND RECOMMENDATIONS
5.1 Conclusions
The main objective of this study was to investigate the role of leadership on organizational
performance in case of Ethio telecom Dilla branch. This is because of lack of awareness on Ethio
telecom leadership experience, technical and managerial quality of organization as well,
insufficient research on the effect of leadership style on organizational performance particularly;
on Ethio telecom Dilla branch. The study adopted descriptive as well as explanatory research
design research design along with quantitative research approach to address the research questions.
As the population size is limited, the researcher has employed census survey. Self-administer
questionnaire were used to gather data. The collected data were analyzed by using SPSS-Version
20.Accordingly, based on descriptive (frequency distribution, percent, mean & standard deviation)
and inferential (Pearson’s correlation and regression) statistics results the following conclusions
were drawn.
From the study findings, it can be concluded that leadership skill and Leases Faire leadership styles
positively and significantly affect the performance of Ethio telecom Dilla branch. And Leases
Faire leader ship style is the dominant leader ship style of others on Ethio telecom Dilla branch. It
was established that there is no one superior leadership skill to the other, but different competences
mixes are needed at different managerial levels, with conceptual skills at the top, people skills at
the middle and technical skills at the lower levels, while others like problem solving skills,
interpersonal and communication skills are critical across all levels. Technical and professional
proficiency was found to be very key to the success of the Ethio telecom.
The findings indicated that transformational leadership style and leadership experience as well,
transactional leader ship style had the least effect on the performance of Ethio telecom Dilla
branch.
On the other hand, the research results showed that Leases Faire leadership style had a large effect
on performance of Ethio telecom Dilla branch following leadership skill according to the
regression model. The respondents further approved that a minimum years of experience for one
to participate in organization implementation was very critical in achieving effective of
48
The study concludes that Leases Faire leadership style was found to be the most effective
leadership style so that in most situation workers prefer little input from their leaders and the
leaders should give subordinate complete freedom to solve problems in their work. There was
positive relationship between leadership skill, leadership experience, transactional leadership
style, transformational leadership style, Leases Faire leadership style and organizational
5.2 Recommendations
This study recommends adoption and application of effective organization management leadership
practices in order to complete the organization within a given time and budget. Due to the complex
nature of organization, the study recommends that organization staff acquire a mix of
competencies like conceptual skills, interpersonal skills and technical skills while problem solving,
interpersonal and communication skills cut across all levels of management. Technical and
professional expertise should be incorporated in order to moderate the impact of organization
complexity and familiarity on organizational performance.
The study suggests emphasis be given to the experience of the organization staff to ensure
organization are effectively executed in order to fully meet set objectives. organization leaders’
need a minimum years of experience in order to be better placed to design organization teams that
incorporate a mix of employees who are more capable of effectively executing organization, thus
ensuring performance of this organization.
The study recommended that organization leaders should use transformational and Leases Faire
leader-ship styles since it involves the employees want to part of the decision making process,
Peoples are always competent and if given a task will do good, employees in decision making with
the leader providing supportive communication as well, workers prefer little input from their
leaders and the leaders should give subordinate complete freedom to solve problems in their work;
these all enhances active organization completion.
49
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51
APPENDIXEI ONE
INFO LINK UNIVERSITY COLLAGE HAWASSA CAMPUS
COLLEGE OF BUSINESS MANAGEMENT
MBA IN BUSINESS MANAGEMENT
Dear Respondents
I am a graduation student in Master program in the field of business Administration at Info Link
University Collage currently I am preparing a research in the topic “the role of leadership on
organizational performance in case of Ethio telecom Dilla branch. You are one of the respondents
that have been selected to participate in this research. I would be great full if you kindly take few
Minuit of your time from your busy Schulte to fill out this questioner by reflecting on your personal
experience with regard to the issue raised. Your willingness and cooperation in giving a genuine
information is well appreciate and the information you provide will be used for academic purpose
only and will be kept in strict confidentially. I would like to thank you in advance for your
cooperation and taking the time to consider my request.
GENERAL INFORMATION OF THE RESPONDENTS
1. Sex:- A Male B Female

2. Age:- A 20-30 B 31-40 C 41-50 D 51 and above
3. Educational level:- A Diploma B Degree
C Master’s and above
4. Service Year:- A 1 – 10 B 11– 20 C 21-30 D 31 and above
52
Indicate your level of agreement with the following statement
NB: _ Scale 1=strong disagree 2=disagree 3=neutral 4=Agree 5=strongly Agree
Statement 1 2 3 4 5
LEADERSHIP SKILL
A leader is effective based on ability to solve multiple
problems
Interpersonal effectiveness is key in accomplishing
project goal & objective
Effective communication and timely feedback lead to
high performing team
Both the leader and team member need to take self-
development course in order to work properly
Different skills are required in different level of
management with conceptual skill at the top people skill
at the middle and technical skill at the lower level.
LEADERSHIP EXPERIENCE
Managers with expansive experience are better paced to
implement missions within the timely.
Job leader experience is important for planning and
supervising project execution.
Leadership experience is more desirable for effective
Leadership past involvement leads to effective
A minimum year of experience of project leader is
required for implementing Ethio telecom Dilla branch
TRANSACTIONAL LEADERSHIP STYLE
Employees want to part of the decision making process
53
Providing guidance without pressure the key to be a
good leader
Most worker want to frequent and supportive
communication from their leader
Leader need to help subordinate accept responsibility for
completing their work
Peoples are always competent and if given a task will do
good
TRANSFORMATION LEADERSHIP STYLE
Employees need to be supervised closely otherwise they
are not able to do the jobs.
It is fair to say that most employees are lazy
Most employees fell in secured and need direction in
their jobs
The leader is the chief judge to the achievement of the
members in the group.
Effective leader give order and clarify procedure.
LEISEZ FAIR LEADERSHIP STYLE
Leadership involves saying out of the way as
subordinates do their work
Leaders should allow their subordinate to apprise their
work
Leader should let subordinates work problems their
own.
Leaders should give subordinate complete freedom to
solve problems in their work.
In most situation worker prefer little input from their
leader.
ORGANIZATIONAL (Ethio telecom) PERFORMANCE
54
Ethio telecom Dilla branch staff are properly selected
and trained
Ethio telecom Dilla branch are completed within the
budget programmer
Assignments are completed within time
Stakeholders are constantly involved in project activities
Mission objectives are achieved
Job beneficiaries are satisfied
Thank you
55

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THE ROLE OF LEADERSHIP ON ORGANIZATIONAL PERFORMANCE

IN CASE OF ETHIO TELECOM DILLA BRANCH

By: Eiskyas Getu

INFOLINK UNVERSITY COLLEGE, HAWASSA CAMPUS

By: EISKYAS GETU

A THESIS SUBMITTED TO THE DEPARTMENT OF BUSINESS

Dr. SINTAYEHU ASEFA

Name: Eiskyas Getu

Name of Advisor: Dr. Sintayehu Asefa

Name of the Chairperson Signature Date

Name of Principal Advisor Signature Date

Name of Internal Examiner Signature Date

Name of External examiner Signature Date

SGS Approval Signature Date

ADVISOR’S APPROVAL SHEET ................................................................................................ ii

EXAMINERS’ APPROVAL SHEET ........................................................................................... iii

List of table .................................................................................................................................. viii

List of figure .................................................................................................................................. ix

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

1.1 Background of the study ...................................................................................................... 1

1.2 Statement of the problem ..................................................................................................... 4

1.3 Research Questions .............................................................................................................. 6

1.4 Objectives of the study......................................................................................................... 6

1.4.1 General Objective of the study ......................................................................................... 6

1.4.2 Specific Objectives of the study ....................................................................................... 6

1.5 Hypotheses ........................................................................................................................... 7

1.6 Significance of the Study ..................................................................................................... 7

1.7 Scope of the Study ............................................................................................................... 8

1.8 Limitation of the study ......................................................................................................... 8

1.9 Organization of the paper..................................................................................................... 8

CHAPTER TWO ............................................................................................................................ 9

2. LITERATURE REVIEW ........................................................................................................ 9

2.1 Introduction .......................................................................................................................... 9

2.2 Theoretical Review .............................................................................................................. 9

2.2.2 Characteristics of Leadership ......................................................................................... 10

2.3 Leadership Theories ........................................................................................................... 11

2.3.1 The Great Man Theory ................................................................................................... 11

2.3.2 Trait Theory.................................................................................................................... 12

2.3.3 Behavioral Theories ....................................................................................................... 12

2.3.4 Contingency Theories .................................................................................................... 12

2.3.5 Transactional Leadership Theories ................................................................................ 12

2.3.6 Transformational Leadership Theories .......................................................................... 13

2.3.7 Authentic leadership ....................................................................................................... 14

2.4 Leadership Styles ............................................................................................................... 15

2.4.1 Bureaucratic leadership .................................................................................................. 15

2.4.2 Autocratic leader ............................................................................................................ 15

2.4.3 Laissez-faire leader ........................................................................................................ 15

2.4.4 Task-oriented leader ....................................................................................................... 16

2.4.5 Environment leader ........................................................................................................ 16

2.4.6 Transaction leader .......................................................................................................... 16

2.4.7 Transformation leader .................................................................................................... 16

2.5 Leadership Practice and Performance. ............................................................................... 17

2.6 Empirical Review............................................................................................................... 19

2.7 Conceptual Frame Work .................................................................................................... 22

CHAPTER THREE ...................................................................................................................... 23

3 RESEARCH METHODOLOGY .......................................................................................... 23

3.1 Introduction ........................................................................................................................ 23

3.2 Research Design................................................................................................................. 23

3.4 Source of Data Collection .................................................................................................. 25

3.5 Data Collection Techniques ............................................................................................... 25