WOLLO UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

ASSESSMENT ON EFFECTIVE LEADERSHIP STYLE PRACTICE

(THE CASE OF COMMERCIAL BANK OF ETHIOPIA, MUGAD;
BRANCH;DESSIE,ETHIOPIA)

A RESAERCH PAPER SUBMITTED TO COLLEGE OF BUSINESS

AND ECONOMICS,MANAGEMENT DEPARTMENT,IN PARTIAL
FULFILLMENT OF BA DEGREE IN MANAGEMENT

BY:BETELHEM BELAYNEH ID: (WOUR/0129/11)

ADVISOR: RABIA M.(MBA)
JUNE 2021
DESSIE,ETHIOPIA
ACKNOWLEDGEMENTS

This paper would not have been successful had it not been for the immense contribution of some
people. In this regard, I would particularly like to gratefully acknowledge the following:

› My Advisor Rabia M. (MBA), for her encouragement, support and guidance.

› My hearty families and friends, for their wonderful support, unparallel hospitality, frank
advice and pecuniary assistance.

› The employees of CBE, Mugad Branch; Dessie, Ethiopia, who participated in this study.

› Lastly and most importantly to God Almighty, the author and finisher of my fate for His
abiding faith, provision and the grace to complete my Degree program.

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List of Tables:

Table 4. 1 Frequency Distribution of Demographic Variables; Sex, Age, Marital Status, and Educational Level
(n=32) (Source: Survey) ..................................................................................................................................... 19
Table 4.2 Frequency Distribution of Demographic Variables; i.e., Work Experience (n=32) (Source: Survey)21
Table4. 3 Frequency Distribution of Demographic Variables; i.e., Salary Scale Response Distribution (n=32)
(Source: Survey) ................................................................................................................................................. 23
Table 4.4.1 Democratic Leadership Style Attribute Item One Response Distribution (n=32) (Source: Survey) 23
Table 4.5 Laissez-Faire Leadership Style Attributes Response Distribution (n=32) (Source: Survey) ............. 25
Table 4.6 Autocratic Leadership Style Attributes (Item One, Item Two, & Item Three) Response Distribution
(n=32) (Source: Survey) ..................................................................................................................................... 27
Table 4.7 Believe of Employees with the Presence/Non-Presence of Problems with Leadership Response
Distribution (n=32) (Source: Survey) ................................................................................................................. 29

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 Table of Contents
Contents Page NO

ACKNOWLEDGEMENTS ................................................................................................................................... i
List of Tables: ....................................................................................................................................................... ii
ABSTRACT ........................................................................................................................................................ vi
CHAPTER ONE ................................................................................................................................................... 1
1. INTRODUCTION ............................................................................................................................................ 1
1.1. Study Background ..................................................................................................................................... 1
1.2 Statement of the Problem............................................................................................................................ 2
1.4. Objective of the study ................................................................................................................................ 3
1.3.1. General Objective ................................................................................................................................... 3
1.3.2. Specific Objectives ............................................................................................................................. 4
1.4 Research Questions..................................................................................................................................... 4
1.5 Limitations of the Study ............................................................................................................................. 4
1.6 Scope of the study....................................................................................................................................... 4
1.7 Study Significance ...................................................................................................................................... 5
1.8. Organization of the Paper .......................................................................................................................... 5
CHAPTER TWO .................................................................................................................................................. 7
2. LITERATURE REVIEW ................................................................................................................................. 7
2.1. Nature of leadership................................................................................................................................... 7
2. 2. Concept of Leadership and the role of Leadership ................................................................................... 8
2.3. Leadership Traits ..................................................................................................................................... 10
2.3.1. Participate leader hip style ................................................................................................................ 11
2.3.2. Altercative (authoritarian) leadership style....................................................................................... 11
2.3.3. Laissez fair leadership style .............................................................................................................. 11
2.3.4. Situational leadership style ............................................................................................................... 12
2.4.The Importance of Leadership. ................................................................................................................. 12
2.5.Leadership Styles Review......................................................................................................................... 13
2.6.2. Boundary Spanning .......................................................................................................................... 13

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 2.6.3. Person-Focused Leadership .............................................................................................................. 13
2.6.4. Directive Leadership......................................................................................................................... 13
2.6.5. Supportive Leadership ...................................................................................................................... 13
2.6.6. Participative Leadership ................................................................................................................... 14
2.7. Leadership Types ..................................................................................................................................... 14
2.7.1. Passive Laissez-Faire leadership ...................................................................................................... 14
2.7.2. Transformational Leadership ............................................................................................................ 14
2.7.3. Transactional Leadership .................................................................................................................. 15
2.7.4 Task-Focused: Directive Leadership ................................................................................................. 15
2.7.5. Person-Focused Leadership .............................................................................................................. 15
CHAPTER THREE ............................................................................................................................................ 16
3. RESEARCH METHODOLOGY.................................................................................................................... 16
3.1 Description of the study area ........................................................................... Error! Bookmark not defined.
3.2. Research Design ...................................................................................................................................... 16
3.3. Method of Data Collection ...................................................................................................................... 16
3.4.Population, Sampling Technique, and Sample ......................................................................................... 17
3.5. Method of Data Analysis ......................................................................................................................... 17
CHAPTER FOUR............................................................................................................................................... 19
4. RESULTS AND DISCUSSION ..................................................................................................................... 19
4.1 Data Sample Information .......................................................................................................................... 19
CHAPTER FIVE ................................................................................................................................................ 30
5. CONCLUSION AND RECOMMENDATIONS............................................................................................ 30
5.1 Conclusions and Suggestions ................................................................................................................... 30
6. References .................................................................................................................................................. 33
Appendix 2: Questionnaire ................................................................................................................................ 37

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ABSTRACT
This research study examines the Assessment of effective leadership style practice on commercial
bank of Ethiopia Mugad branch.The objective of the study was to assess leadership style and In
comercial bank of Ethiopia Dessie, Mugad branch.This research uses a descriptive type of
research design.Through an instrument (i.e., questionnaire).All 32 employes taken as a
sample,the researcher were used census.Data collected from respondents through primary data
source.To achieve the desired objective primary data were collected through questionnaire from
thirty two employees.The researcher take both quantitative and qualitative data analysis.The
data that was gathered,presented and analyzed through tabulation and percentage. The research
paper finally,it contains summary of findings, conclusions and recommendations. Based on the
presented and analyzed data, the researchers would recommend to the organization to keep the
current practical leadership style i.e.; More of democratic to make the work environment
conducive enhancing coordination and good relationship with coworkers. Through giving
freedom and chance to them they can participate freely in decision making so we can achieve
the organizational goal effectively.

Key words: Leadership, Democratic, Autocratic ,Situational

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 CHAPTER ONE

1. INTRODUCTION
1.1. Study Background

Leadership is the ability of manager to influence subordinates to work with confidence and
enthusiasm. It is important and necessary for achieving individual, group and organizational
performance. It is the process of influence people, so that they strive willingly and
enthusiastically toward the accomplishment of group goal (Bantie W., 2006).

Leadership is the ability of influence motivates and enables others to the effectiveness and
success of the organization of which they are member (MC Shane, 2000). Leadership style is the
manner and approach of providing direction implementing plans and directing people as seen by
the employees. It includes the total pattern of explicit and implicit action preferred by their leader
by their leader. Leadership style implies the way in which the leader exercises leadership. It is
the way in which a function of leadership is carried out or the way how the leaders are having
toward their subordinates in the accomplishment of the work (Bantie et.al 1983). Leadership is
an attempt at influencing the activities of followers through the countinues process and towards
the attainment of some goals (Donelly).

Leadership is a process of influencing the activities of an organized group toward goal

achievement(Ralch and Bewling).Leadership is interpersonal influence exercised in a situation
and directed through the communication process toward the achievement of goals.An effective
leader influence followers in adesired manner to achieve a desired goal.Different leadership style
may affect organizational effectiveness(Karen Korabik ,2008).According to Bass
(1999)definition of leadership is related to the purpose associated with the attempt to define it
and so present a wide range of possibilities.Leadership effectiveness is believed to be crucial for
the overall success of any organization.Accordingly Kurt lewin asserts that the competitiveness
,effectiveness and flexibility of the whole organization through planning ,organizing and
allowing participation of all members at the appropriate level.Effectiveness perspective is
concerned with whether the things are continuing to be appropriate ,particularly in the context of
rapidly and increasingly.Knowing leadership style e would help to select the right position and

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organization.Understanding the strength and weakness of organization leadership style would
help to communicate better with in the staff of the bank.

1.2 Statement of the Problem

A number of recent studies examined assesment of leadership style on employees practice so for
example Rasool,etal.(2015),Tsigu and Edrao,(2015),Raja and palani chamy,(2015).Rasool Etal
,(2015)examined the public sector in Pakistan and report that both transformational and
transactional leadership style affect the practice but the practice but the assesment of
transformation leadership style is higher than that of transactional research leadership.Tsigu ad
Rao ,(2015) positive relationship between both transformational and transactional leadership
style but negative relationship between laissez faire leadership style and employees performance
by private bank in India.In Africa Ipasc,(2012)looked leadership effectiveness among the
organization and report that transformational leadership style are significantly positive related to
employes performance.Much research has been done on the title of leadership style worldwide
and locally most of the research has been done with the correlation of others title like with job
satisfaction,work engagement,job motivation but the researcher found locally study done by
Ethiopia Ephrem Amare 2016,on leadership style of commercial bank of Ethiopia the main
objective of this research was to access and identify which of the leadership style in the most
dominant style.The distinguished leadrship style emphasis the strength and weakness of the
leaders.Wben challenges arise they can contribute best to the solution by understanding their
leadership style .It may mean there the best to get Leadership involved with the issue or use
another strategy for solving the situation.Leadership style in an organization has a strong effect
on employees’ attitude about their job. The role of leadership in today’s corporate organizations
has changed. The success of any organization is mostly dependent on an organization’s
management team and the leadership style used (Saleem, 2015). Organizational leadership is a
very important and complex issue; and a lot of researchers and scholars have spent a great deal
of effort to recognize and improve it. Although administrative styles are very extensive and
theoretical, many empirical studies have been performed in order to investigate the different
methods of leadership. Transformational, transactional, and relationship-oriented leadership have
been remarkably supported in different studies (Cetin et al, 2012; Saleem, 2015).

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Leadership is one of the most important factors in increasing the organizational efficiency of a
company. The leader or boss of a company is responsible for developing and implementing
decisions on how to achieve the desirable resources from their employees in order to produce the
best products and services with the interest of the shareholders in mind. This awareness and
implementation of leadership styles gives a company an advantage over their competitors (Riaz
& Haider, 2010). The main source of leadership problem which affects employees’ motivation is
lack of good leadership style in the organization. The first major study of leadership style was
performed by Kurt lewin who led as group of researchers to identify different style of leadership
(Kurt lewin,1992).Hersey and Blanchard (1999)realised that encouraging staff to participate in
leadership indicate solve the problem.In some case situational leadership approach may work
best.Leaders should adapt their style to their followers development level of maturity based on
those followers competence and motivation.Hersey and Blanchard believed leaders should put
greater or less focus on the task or the relationship between the leader and follower depending on
the situation

Effective Leadership has been around for many of years, and yet we still are unable to
contain it in a single manner with its quality and effectiveness we all to agree on. Perhaps this is
because leadership is continuously evolving, and more than what it seems to be, depending on
how we look at it. As a result, it is a complex concept, with many applications, and contexts. Its
effectiveness depend highly on the context in which we being observed in different situations.
Thus, this study has been tried to fill the gap from this contextual observation, and tried to look
on its practice and effectiveness in the context of Commercial Bank of Ethiopia of Dessie town,
Mugad branch.

1.4. Objective of the study

1.3.1. General Objective

The broader objective of the study was to assess the practice of effective leadership in case of
Commercial Bank of Ethiopia, Mugad Branch of Dessie town.

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1.3.2. Specific Objectives

Based on the above general objective, the researcher was tried to attained the following specific
objectives;

1. To investigate the leadership styles, practiced in Commercial Bank.

2. To identify the leadership style that favorable for subordinates.

3. Evaluate the mechanism of the organization to make the leadership effective.

1.4 Research Questions

In order to attain the objective, this research has raised the following research questions;

1. What leadership styles are often practiced in the Bank?

2. Which leadership style preferable by employees in the branch bank?

3. Is there a mechanism used by the bank to enhance leadership effectiveness?

1.5 Limitations of the Study

The following are some of the study limitations:

o Only 32 respondents were taken as a sample of study from selected branch. The
inclusion of other similar branches of the bank and similar financial institutions from
different sectors may reveal better result and might help to the larger picture in the study
area.

o The top-level management was not part of this study. The inclusion of the top-level
management might help to look further on the area of leadership style and employees’
leadership preference edges.

1.6 Scope of the study

The scope of this study was limited to the Bank’s Mugad branch of Dessie town. For the purpose
of the bank was served as unit of analysis and the levels (middle and lower area of the structure)

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were represented by respondents. Employees of a bank at different levels from both middle and
lower levels were considered as unit of observation in which the data were collected from.
Furthermore, the total number of respondents that were included under this study .

1.7 Study Significance

Making deference is the relevance of this paper for different bodies in different similar area.
Thus, the research has different significances for financial institutions who have direct or indirect
interest for working on improving their leadership through understanding the need of their
subordinates

The study is intended to find out the employee’s attitude for different of leadership attributes
aligned with the style and effectiveness of the bank’s leadership. Hence this study was designed
to find out the employee's attitude and the extent the bank should do with its leadership style. As
a result, this study reviles significance for similar types of organizations.

✓ The output from the research could help banks and/or other similar financial institutions
and policymakers to take some remedial actions or corrective with the studied subject i.e.,
effective leadership.

✓ It enables the researcher to acquire basic experiences regarding several issues on areas
leadership and related aspects, and

✓ Lastly, the recommendations that were forwarded based on the findings of the study
could help banks to know the way to improve their leadership.

✓ It could also serve as a reference for researchers who have interest to make further
research on the area.

1.8. Organization of the Paper

This research is consisted of five main chapters. Chapter one includes background of the study,
statement of the problem, research question, objective of the study, significance of the study and
scope and limitation of the study. The second chapter has the review of related literature, while
the third chapter deals with methodology of the study. The fourth chapter includes result and
discussion and the last chapter summarizes the finding and put the research recommendation.

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 CHAPTER TWO

2. LITERATURE REVIEW
2.1. Nature of leadership
For the last two decades, the critical importance of the team effectiveness has been considered as
the main aim of the many papers. The process of managing teams and ensuring their
effectiveness requires the presence of the leader who can motivate and provide a vision for their
subordinates.

Leaders are believed to set smart goals for the subordinates and empower them enough to
achieve the organizational goals. The research sphere which is focused on analyzing the
influence of leaders to manage the effectiveness of the teams can be regarded as one of the most
developing areas. The role of leaders is regarded as the critical tools for the team members. The
reason is that leaders play a vital role in formulating collective norms, assisting the team
members to face and resolve the challenges arisen in the team environment. The critical
importance of leaders on team member resulted in the creation new ways based on which leaders
can provide value for the members of the team.

The managing style of the leaders is essential to the success of the teamwork. In many cases,
leaders are not aware of the main needs and wants of their subordinates, or they fail to
understand the difference between the individuals involved in the team. As a result, due to the
various issues that were not identified in time among team members result in the decreasing
productivity of team members.

It is crucial for the leaders to provide compelling direction which can help the members of the
team achieve the team and organizational objectives. Compelling direction can consist of
transformational leadership; also known as person focused leadership behavior, as well as
compelling direction should be good enough to initiate the structure which is task-focused
leadership. In this regard, it is important to look at the difference between the two types of the
leadership behavior. Task leadership behavior or management style focuses on the
accomplishment of the task on time and an accurate manner. Task-focused leaders formulate the
schedules with easy-to-reach objectives which can help team members to work more effectively.
On the other hand, person-focused leadership is mainly concerned with the creating better and
enhanced environment which motivates and empowers employees.

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The recent research conducted by Deloitte identified different types of team styles that should be
followed by the leaders to ensure the efficiency of the teamwork. The first style is known as
pioneers. Pioneers are the type of teams who have strong conceptual skills, and they often try to
see the big picture of the situation. Moreover, they are open to take risks and always strive to
achieve the goals and objectives by going beyond the expected boundaries. Also, pioneers are
always open for innovations, and they try to find creative ways of solving existing problems.
Another style is guardians, which is also popular among teams. Guardians can be described as
the vice versa of pioneers’ style. Unlike pioneers, guardians always value stability, and they are
less prone to change.

The further style is known as drivers, drivers are quite fast and look forward to facing challenges.
They try to solve the emerging problems as soon as possible based on the available data and
resources. The integrators are another style followed alongside three team styles mentioned
above. They value relationships more, and they think that teams can achieve success only by
working together. Thus, it is believed that teams that follow above-mentioned styles enjoy
different advantages, such as innovativeness, increased communication between team members
and quick access to decision making. According to the classification of team styles, the research
aimed to define the influence of various factors which may trigger the motivation of team
members in the workplace.

2. 2. Concept of Leadership and the role of Leadership

Leadership is considered as a widely discussed topic in the literature. Leadership is considered as
a way person uses to lead the other people. Employees play a critical role in ensuring the quality
of service. When employees are clear about their expectations and requirements, they are more
likely to perform better. Although leaders are responsible for the proper task and job allocation,
different leadership styles have several approaches how tasks are being allocated. Leaders are
claimed to have a positive impact on the efficiency of the organization by influencing the team
members. Particularly, leaders considerably influence its followers in the organization.
Therefore, it is important to understand the nature of leadership styles such as transactional and
transformational to assess their impact on resolving different organizational problems. leadership
literature review

At present, numerous organizations stress on formulating the team and workflow to increase the
efficiency of the performance in the organization. To achieve this, the role of the leaders is of
high importance in the organization. Formulation of high performing teams can be accomplished

8
by learning the expectations and references of team members. Furthermore, every member of the
organization should have clear responsibilities, duties and need to understand their role in this
entity. In short, expectations of top-level managers should be identified and communicated
properly to employees and subordinates Van et al. (1981). leadership literature review

Generally, in transactional leadership, the system based on rewards is used to motivate the
followers. Though, the motivation given through such approach does not last long. Turning to
transformational leadership, this style serves to improve the collaboration among organization
members (Keegan et al., 2004; Bass and Avolio J., 1990; Pearce, 1981). Transformational
leaders let their followers feel as the part of the organization. Such leaders have a strong
inspirational vision to encourage the employees of the organization care about the company
goals than their own goals and interests. Such leaders are believed to be enthusiastic and
energetic.

Conversely, the laissez-faire leaders provide a good environment to subordinates as well as

empower them to take decisions themselves. As the subordinates have full authority on making
decisions, laissez-faire leaders do not usually give feedback on the accomplished tasks.

From the behavioral perspective, the number of studies that have analyzed the role of leadership
in team context has increased. According to Fleishman et al. (1991) during the 1946-1986, 65
classifications of leader behaviors were proposed. The study undertaken by Fleishman focused
on the analysis of the various classifications of leaders’ behavior by categorizing them into two
groups. According to Fleishman, there are two common classifications of the team behavior
which includes person-focused and task-focused. Task-focused behavior is mainly concerned
with the definition of task requirements, the process of the task completion and complete
fulfilment of the given task. Unlike task-focused behavior, person-focused behavior focuses on
the development of the cognitive issues in individuals and behavioral patterns in individuals
before they start working as a team.

The literature suggests that there are three main categories of the task-focused leadership that
should be studied including transactional, initiating structure and boundary spanning.
Transactional leaders always praise and reward their subordinates when they meet and exceed
the required job expectations. In other words, the task-focused behavior is focused and
formulated on the basis of goal setting theory, equity theory and reinforcement theory as
accomplishing goals and completing tasks constitute the idea behind these theories. The
literature suggests that transactional leadership based on contingent reward positively contributes

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to the team development and team effectiveness. The research conducted on identifying main
factors which lead to the success of transactional leadership revealed that team members who are
under the influence of transactional leader are more likely to have a strong relationship among
member despite the small team size.

2.3. Leadership Traits

Peter Drucker (1989) mentioned that leadership is not created, taught and learned. Thus, a great
amount of attention was dedicated to understanding the number of characteristics that are found
in leaders. According to the trait theory of leadership, there have been some important studies,
which aimed to provide more valid results to describe the specific traits of leaders that can be
learned and taught. According to the research by Locke (1991) drive, self-confidence, cognitive
ability, honesty, and integrity are considered to be the most commonly observed traits of
successful leaders. Recently, knowledge of context and desire to lead were added to the list of
successful leadership traits.

The research conducted by Bond and Smith (1996) identifies “Big Five” model of personality
which can be used in the other cultural contexts. These traits include extroversion, emotional
stability, and readiness to accept challenges, agreeableness, and openness to experience.

Boyett (2006) mentioned the role of leaders is crucial in gaining the trust of their subordinates
and stimulate their commitment towards the successful fulfillment of the undertaken project.
Boyett (2006) described the influence of leaders in the following manner. Firstly, the leaders
should have idealized influence, in other words, they have to be charismatic. Leaders can execute
the confidence and competence. Secondly, leaders should be able to inspire their followers; this
is mainly attributed to their role of inspirational motivation. It is important for the leaders to be
able to take each separately while dealing with them. Each person is different from the others
regarding their characteristics; needs, wants and attitude towards specific tasks. Therefore,
leaders should have the individual consideration to each team member.

Another important trait of a leader is described as intellectual stimulation. Precisely, it is

important for the leaders to be intellectually stimulating. Leaders have to able to question
everything starting from simple assumptions to status quo. Finding a creative and innovative
solution to specific and complex problems is considered as an evidence of leader’s intellectually
stimulating behavior. Providing rewards to employees is considered as another important
characteristic of transformational leaders. Leaders are expected to set the clear objectives for

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their subordinates. Upon the accomplishment of these objectives, the followers should be
rewarded accordingly.

The study conducted by Keegan et al. (2004) identified the main behaviors that are observed in
the traits of leaders such as goal clarification, team boundaries setting, the guidance of members,
leading followers, engaging members to the team, meeting organization and information flow
control. Aggregate leadership dimensions, in turn, include guiding, involving, role specifying
and organizing teamwork.

2.3.1. Participate leader hip style

Participate democratic leader ship style leader consult with subordinate on proposed action,
diction and encourages participate from there. these types of leader ship style ranges from the
person who does not take action without subordinates with concurrence to the one who makes
decision but consulates with subordinated before doing so (Kootz, 2004).
Participate leader ship style is characterized by participation of the group and utilization of its
opinions. Initiative by those being led is encouraged. The leaders suggest possible action with his
recommendation but await approval of the group before putting them in to effort (Bantie W.,
2006
2.3.2. Altercative (authoritarian) leadership style

Authoritarian leader ship is based on the premise that leader ship is a right and is vested in and to
the same degree an individual has authority. Tasks are assigned, facilitates provided and
direction given without consultation with the employee carrying out the work. The authoritarian
leaders believe that because of his position he can decide best what should be done (Bantie W.,
2006).Autocratic leader commands and expects compliance is dogmatic, positive and leads by
the ability to withhold or give reward and punishment (Koontz, 2004).
2.3.3. Laissez fair leadership style

Laissez fair leader ship style depends on completely subordinates to establish their own goal.
These leaders assume the role of just another member of the group. Under this condition the
group is permitted to act individually and there for, it may easily head on different direction
(Bantie W., 2006). Laissez fair leader ship style is leaderships styles in which leader tend to the I

11
do not care mentality. The leader depend up on his/her subordinates to establish their own goals
and to take their own decision gives a great role or freedom to his/her follower (H.vroom2004).
2.3.4. Situational leadership style

It is now being recognized that effective of one or the other leadership styles depend on the
situation. The manager, in developing his own style of leader ship need not restrict his choice
from a limited class of style or approaches (Bantie W., 2006).

2.4.The Importance of Leadership.

The reviewed literature states that role ambiguity and role conflict are the root causes of most
conflicts in the organization. The study by Smith and Cooper, C. (1994) analyzed the
relationship between leadership and stress. Precisely, the study aimed to identify whether stress
has a significant influence on the performance of the leaders. Particularly, intrinsic factors have
been identifying which influence on employee performance including long working hours,
travel, the requirement for participation in various meetings. Besides that, the majority of
employees reported that introduction and acceptance of the new technology was another cause of
the work stress. According to Smith and Cooper, C. (1994) besides intrinsic factors, role
ambiguity and conflict also play a major role as a source of stress. Failure to have a clear vision
about the specific tasks that should be accomplished by an employee and ongoing conflicts with
other team members is found to lead to lower job satisfaction.

Moreover, managerial stress can arise as a result of our relationship with coworkers, colleagues,
and subordinates. Many studies revealed that majority of problems arise among employee due to
the conflict and arguments which arise between them. This is considered as a leader-follower
approach in which majority of followers to get approval from their leaders on particular issues.

The research conducted by Koustelios et al. (2004) has proposed that increasing cases of role
ambiguity is more likely to increase the cases of conflict at work. Since conflicts are considered
as the main source of diminishing social interactions among employees, the cases of turnover
intentions are more likely to occur.

The study of role ambiguity leads to the acceptance of two conclusions. First of them is role
ambiguity is found to be related to individual stress. Secondly, role ambiguity is reported to
moderate the relationship between leader’s behavior and employees job satisfaction. The studies

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identified the significant and negative relationship between role ambiguity and job satisfaction.
Thus, leadership styles that are positive in a manner are found to lessen the influence of role
ambiguity on employee performance.

2.5.Leadership Styles Review

There are several varieties of leaders. Thus, it is difficult to choose the specific type of leadership
and mention that it will suit all the contexts. In other words, it is impossible to say that the
specific type of leadership is considered as the most desirable and other do not work. The
selection of the right type of leadership depends on the context, situation, and followers.

2.6.2. Boundary Spanning

Boundary spanning function of leaders is more oriented on collecting and bringing more
information for the team members who can assist them in achieving specific objectives. Thus,
boundary spanning function of leaders involves collaborating with external sources outside the
team that can help them to obtain necessary information. Boundary spanning mainly emphasize
the leader of the team as the director rather than a facilitator.

2.6.3. Person-Focused Leadership

The concept behind person-focused leadership can be analyzed based on the four categories of
behavior that is transformational, consideration, empowerment and motivational. Regarding the
contingency approach, House and & Rizzo J. R. (1974) identified several generic types of
leadership:

2.6.4. Directive Leadership

This type of leadership is defined as the type of leadership where leaders provide a direct and
unambiguous approach to their followers. Since the subordinates will be provided with necessary
direction, guidance, and support, they will be required to achieve expected results in exchange.

2.6.5. Supportive Leadership

Supportive leadership requires a strong understanding of the needs and wants of the subordinates
with the aim of providing them with the necessary support. In order to prove this type of
leadership effectiveness, it is important for the leaders to be formulating friendly communication
with their subordinates as well as the good working environment.

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2.6.6. Participative Leadership

Participative leadership is concerned by taking into consideration the inputs and ideas of
subordinates. Later, these contributions will be given specific evaluation before making the final
decision. This type of leadership focuses on setting high and challenging goals for subordinates
in order to ensure their continuous improvement.

Leadership styles that were identified and supported by the GLOBE project were built based on
trust, integrity, and vision. According to the conclusions, charismatic and value-based leadership
were accepted among all over the world.

2.7. Leadership Types

2.7.1. Passive Laissez-Faire leadership

This type of leadership does not exercise strict control over their subordinates directly. Most of
people in the team are supposed to be highly experienced individuals. Thus, most of them do not
need strict control and supervision. Due to the certain disadvantages provided by the leadership,
team members may suffer from lack of communication, feedback for improvement and at the
end, they may fail to meet the deadline for project completion.

2.7.2. Transformational Leadership

Transformational leaders are reported to work based on the balanced approach. This can be
explained by the fact that they help their subordinates to solve some of the challenging issues at
the same time they teach their subordinates about the ways of tackling the problems in the
similar context. Therefore, researchers believe that role of the transformational leaders can be
observed regarding bringing the motivational level of their employees to the stage of self-
actualization. Moreover, most common qualities that are used to describe the personality of
transformational leaders include charisma, intellectual stimulation. Another name for
transformational leadership is a facilitator, in other words, in this case, team members and
leaders motivate each other in order to achieve high levels of performance and motivations.
Thus, it is considered as one of the most commonly adopted types of leadership where team
members encourage each other by different means in order to achieve organizational goals and
long-term plans. Unlike other types of leadership, this type of leadership has a high level of
communication between the team members. Therefore, the case of transformational leadership
was related to the increased levels of motivation, higher job satisfaction, commitment,
productivity, and performance. Thus, transformational leader’s control, vision, and enthusiasm

14
inspiring its followers lead to higher results in the management. In this context, the four essential
components of the transformational leaders need to be reviewed.

First is the individual consideration (Mumford et al 2000). The second one is intellectual
stimulation, which means encouraging the followers to try seeing the issue from the other side
and broaden the outlook on specific matters also the inspirational motivation, where the leader
stresses on the particular importance of an employee in the team which helps the organization to
reach the goal and successful cooperation and accomplishment of the project (Chen et al. 2005).

2.7.3. Transactional Leadership

Transactional leadership is defined as the style where the leader either rewards or punishes the
employee for the task accomplished. Several studies on leadership found that when the
transactional leadership is employed in the organization, the mutual trust between the leader and
the task-holder develops. If there is a mistake in the work of subordinates, employees are going
to be punished. Thus, employees may perform not at their best, and they may be afraid of making
a mistake. As a result, they are less likely to work on new projects and learn new skills and
knowledge. In contrast, employees who perform at their best are given good motivation in terms
of rewards making them more motivated to work harder.

2.7.4 Task-Focused: Directive Leadership

Directive leadership refers to the style where the leader focuses on the task accomplishment and
provides guidance and specifies tasks to avoid ambiguity (Gottfried et al. 2011). Directive
leadership style is best applicable to the hierarchical organizational structures where the there is a
high probability of task ambiguity among employees.

2.7.5. Person-Focused Leadership

Person-focused leaders offer people to take part in making and contributing their ideas while
making significant decisions. It is worth to mention that person-oriented leader is more likely to
energize people for the work they accomplish. Thus, they are more likely to be oriented to the
person rather than to the task. One of the significant benefits of person-oriented leadership is that
it focuses on employee-relationship management by formulating a strong relationship with
customers and they make their employees make the difference in the company.

15
 CHAPTER THREE

3. RESEARCH METHODOLOGY

3.1. Research Design

In this study the researcher used descriptive types of research design to describe the leadership
aspect of the bank. Sharma (2000) describe that a descriptive survey is appropriate for the study
of attitude, opinion, preference and practice of the subject under investigation besides it was
useful in showing the immediate status of observable fact. The researcher is fully convinced that
this method is more appropriate to study the research by assessing the practices of leadership.
3.2. Method of Data Collection

The data were collected through questionnaires. Best and Kahan (1989) stated that a
questionnaire enables a researcher to collect data from group of individuals within a short period
of time. And it leads easy to administer a number of subjects in one place at a time. Thus, a set of
questionnaires were design and used to gather the necessary data from the respondents. The
questionnaires were in a five level Likert-scale.

16
3.3.Population, Sampling Technique, and Sample

The aggregation of elements with in organization is called population (Creswell, 2009). The
target population of the study was 32 from front line and middle line employees of Commercial
Bank of Ethiopia, Dessie,Ethiopia; Mugad Branch.

For the purpose of this study, the population was staffs under the supervision of middle level
managers and front-line employees of the bank. Accordingly, the researcher has managed to take
all of the employees as a sample.Employees from both middle and lower hierarchal levels of the
administration structure using census method.
3.4. Method of Data Analysis

The collected primary data were organized in tabular form that showed the frequencies and
percentage as summery for each item of the questionnaire. Then the summarized data were tried
to interpret throughout qualitative description.

17
18
 CHAPTER FOUR

4. RESULTS AND DISCUSSION

4.1 Data Sample Information

A total of 32 questionnaires were distributed to employees working in the bank. Therefore,

thirty-two questionnaires served as data for analysis to present the findings and draw conclusion.
Further, the data analysis is performed to reach the findings.

4.1.1 Demographic Information;

Table 4. 1 Frequency Distribution of Demographic Variables; Sex, Age, Marital Status, and Educational
Level (n=32) (Source: Survey)

Variable Frequency (n) Percentage (%)

Sex

Male 20 62.5 %

Female 12 37.5%

Total 32 100%

Age

< 25 Years old 2 6.25

26-35 Years old 22 68.75

36-45 Years old 3 9.38

> 45 Years old 5 15.63

Total 32 100%

Marital Status

Single 10 31.25

Married 21 65.63

Divorced 1 3.13

Total 32 100%

19
 Educational Level

Diploma 0 0

BA Degree 26 81.25

Master 6 18.75

PhD 0 0

Other 0 0

Total 32 100%

Table 4.1 reveals the demographic information of the respondents. The demographics reveal a
gender division of the respondents, majority of the respondents were males, i.e., 62.5%
representing a bigger part of the sample group. However, 37.5% percent respondents were
females. This study was only aimed at the middle and lower-level employees supervised by their
immediate supervisors in those levels.

The educational level and years in service also presented in the demographic pattern (Table 4.1).
According to the survey,majority of the respondents are Bachelors’ Degree holders (81.25%),
and few of respondents amounted 6 (16.75%) have their Master’s Degree.

What makes people prepared to follow one leader, but unwilling to follow another? Just as a
teacher needs to be informed as to the needs and abilities of their students, a leader needs to
possess similar knowledge in regards to their followers (Chaleff, 1996). There appears to be no
limit to the quest for understanding in regard to the concept of leadership, yet until recently,
followers have been as simply passive recipients of leadership. Leadership and followership
represent two sides of one dynamic relationship; without followers, there can be no leaders.
Followership can be defined as “the characteristics, behaviors, and processes of individuals
acting in relation to leaders” (Uhl-Bien, Riggio, Lowe, & Carsten, 2014 p. 96). This means that
followers’ behaviors are a vital component of the leadership process, and that leadership cannot
be fully understood without an understanding of followership.

The purpose of this demographic item was to look on the leader-follower relationship mainly
with the characteristics, behaviors, and processes of individuals acting in relation to followers
understanding about leadership to determine the influence that effective leaders have in regards
to the success or failure of their leadership within the Commercial Bank’s context in this study.

20
Hence the followers’ behaviors are a vital component of the leadership process, and that
leadership cannot be fully understood without an understanding of followership and, the
followers cannot be good followers without fully understood what leader and leadership mean,
the higher followers academic level become interesting for the bank’s leadership effectiveness.
As a result, we can conclude that the followers haven’t been as simply passive recipients of their
leader and they are likely become a positive actor of leadership effectiveness.

Followers are important members and responsible individuals for all the bank’s leadership
effectiveness as leaders are. Accordingly, the survey showed us that, the majority of sampled
staffs are being an active follower, and would have a likely chance of taking an initiative in
decision making.

4.4.2: Work experience of Subordinates and Leadership

Work Experience

Table 4.2 Frequency Distribution of Demographic Variables; i.e., Work Experience (n=32) (Source:
Survey)

Variable Frequency (n) Percentage (%)

< 3 Year 1 3.13 %

3 to 6 Years 5 15.63 %

7-10 Years 3 9.38 %

Above 10 23 71.88 %

Total 32 100%

Supporting the acceptance of group objectives implies seeking cooperation among followers and
ensuring that they work together to achieve common goals for longer years of subordination.
Behrendt, Malz, and Goritz (2016) noted that creating a suitable and successful leadership model

21
involves a leader setting examples for followers that are consistent with their values which will
gained from work experience with the organization. Thus, for the successfulness of a leadership
process, and for the style of leadership became democratic or participatory, the same argument
(the higher the experience of subordinates the better they become suitable for a decentralized
style of leadership) is likely plausible.

According to the survey, the majority of respondents (71.88%) had a work experience of eleven
years and above, which leads us to the argument that, the higher number of working years of an
employee in the bank, the more he/she become familiar with the business process, in turn he/she
become a reliable follower to be delegated often for a supervisor or manager. Followers motivate
themselves, rather than drawing their energy and aims from their leader (Hughes, 1998). When a
leader communicates trust and respect for followers’ abilities to perform and achieve, the internal
motivation of the followers drives them to succeed. Leaders fostered an environment of mutual
trust and support which resulted in staff being much more motivated to work hard and contribute
to success and improvement. Chaleff (1996) noted that the more followers support, and stand up
for their leader, the stronger their position will be when they stand up to their leader. The more
positive atmosphere nurtured by leaders encourage staffs to offer opinions and ask questions
about everything. This will increase engagement from stakeholders allowed decisions to be
enacted more quickly as followers felt ownership over these decisions because they had been
involved in the decision process.

4.4.3: Salary Scale Distribution

22
 Table4. 3 Frequency Distribution of Demographic Variables; i.e., Salary Scale Response Distribution
(n=32) (Source: Survey)

Variable Frequency (n) Percentage (%)

3,000 Birr -4,000 Birr 0 0%

4,001 Birr-5,000 Birr 0 0%

5,001 Birr – 6,000 Birr 1 3.13 %

6,001 Birr – 7,000 Birr 12 37.50 %

Above 7,000 Birr 19 59.38 %

Total 32 100%

A follower’s motivation is a function of intrinsic and extrinsic factors (Bjugstad et al., 2006).
Money is one of extrinsic motivational factors. According to the survey, many of these staffs
(59.38%) had a monthly salary of above 7,001 Birr. It could be argued that their interest to work
years with the bank is as a result of their salary level which motivate them better.

4.4.4: Leadership style and an immediate supervisors’ tendency with leading subordinates;
Democratic Leadership style;

Table 4.4.1 Democratic Leadership Style Attribute Item One Response Distribution (n=32) (Source:
Survey)

Variable (Attributes) Scale Frequency (n) Percentage (%)

Item One: 5 16 50 %

Leaders make employees participate in decision making, as a result I 4 12 37.5 %

fee feel I’m respected, important and appreciated.
3 4 12.5 %

2 0 0%

1 0 0%

Total 32 100%
The Democratic Leader derives power from human, relationship. He/she gives freedom and trust
to followers, takes, decision via consultation and keeps channels of communication open with
employees at different levels so that individuals feel they are respected, important and

23
appreciated. Having said this, this study has shown stronger support for the democratic
leadership style characteristics of leadership.

According to the above-presented survey summery (Table 4.4.1) of the Commercial Bank of
Ethiopia, Dessie mugad branch; the majority (50%) of respondents believe that their immediate
supervisors encourage subordinate’s involvement in decision making. This could help us to
further argument of the attributes with democratic leadership style. Indeed, (Anderson and King
,1993) believe with the effectiveness of leadership regarded as critical and operative in the
manner which have a character of high-level participation of middle and lower-level
subordinates in decision making.

Table 4.4.2 Democratic Leadership Style Attribute Item Two Response Distribution (n=32) (Source:
Survey)

Item Two: 5 18 56 %

My immediate supervisor often gives freedom and trust 4 13 40.63 %

with me, takes a decision via consultation and keeps
channels of communication open with co-workers at 3 1 3.13 %
different levels, lead a bank according to subordinates’
interest, open for any opinion 2 0 0%

1 0 0%

Total 32 100%

Majority of respondents agreed (56%+40.63 96%)that, their immediate supervisors are well
with running the bank based on the interest of them.

This would lead us to the argument of having an impact on creating a positive impact on
individuals, and teams. With respect to the management of processes in the bank, there is a
strong need for leaders who are more subordinate opinion-cantered business processes. These
leaders place value on the development of a clear vision and inspire followers to pursue the
vision. In this way they provide a strong motivational force for change in followers. Anderson
and King (1993) also concluded that besides a participative leadership style, a clear vision or
mission is most likely to foster innovation.

24
 Table 4.4.3 Democratic Leadership Style Attribute Item Three Response Distribution (n=32) (Source:
Survey)

Item Three: 5 19 56 %
As to me (what I believe is), my immediate 4 12 40.63 %
supervisor drives his/her power from human
relationship 3 1 3.13 %

2 0 0%

1 0 0%

Total 32 100%

A. Laissez-faire leadership style;

Table 4.5 Laissez-Faire Leadership Style Attributes Response Distribution (n=32) (Source: Survey)

Item Scale Freq.(n) Percentage (%)

Item One 5 16 50 %

Supervisors or leaders provide the appropriate and 4 15 46.88 %

needed resources for tasks, but want
staffs have sufficient skills, experience or 3 1 3.13 %
motivation to complete duties
2 0 0%

1 0 0%

Total 32 100%

Item Scale Freq.(n) Percentage (%)

Item Two 5 21 65.63 %

Leaders give more freedom to employees, and it is 4 10 31.25 %

my feeling that, often, it is in the best interests of
the bank to empower me 3 1 3.13 %

2 0 0%

1 0 0%

Total 32 100%

25
 Item Scale Freq.(n) Percentage (%)

Item Three 5 26 81.25 %

My supervisor provides me a wide space to 4 6 18.75 %

choose, and decide with tasks, but without
sacrificing the goals of the organization 3 0 0%

(Often makes me more responsible) 2 0 0%

1 0 0%

Total 32 100%

The table (Table 4.5) summarises some of the basic attributes of Laissez-faire leadership style of
leaders. In the case of this study,the basic attributes were providing required resources for tasks
but making sure staffs have sufficient skills, experience or motivation to complete duties, giving
freedom, and empowering subordinates through giving wider space to choose, and decide with
tasks, but without sacrificing the goals of the organization which makes lower-level employees
more responsible.

Based on the survey summarized above (Table 4.5), majority of respondents (50 %, 65.63 %, and
81.25 %) for item one, two, and three respectively were consistently strongly agree with
witnessing, and believing in the presence of the laissez-faire leadership attributes practice in the
bank.The thread that goes through these theories of leadership is that it is in the best interests of
the organization to empower employees and make them responsible and accountable for their
acts, decisions and problem solving after exchanging information and ideas with the empowering
leader (Dierendonck& Dijkstra, 2012; Wong &Giessner, 2016).

Moreover, relative majority of respondents also believe on the practise of their immediate
supervisors’ tendency of urging in an established clear rule, significant time supervisors took to
consult with subordinates, and a behavioral feature of supervisors with assuring staffs team
members in fulfilling sufficient skills, experience or motivation to complete projects. In addition
to that, supervisors provide staffs with a wide space to choose, and decide with tasks, but without
sacrificing the goals of the organization that makes staffs more responsible.

26
B. Autocratic Leadership Style;
Table 4.6 Autocratic Leadership Style Attributes (Item One, Item Two, & Item Three) Response
Distribution (n=32) (Source: Survey)

Item One
Scale Freq.(n) Percentage (%)
Most of my supervisors urge for and believe in an
established clear rule and provide tools 5 0 0%

4 0 0%

3 0 0%

2 8 25 %

1 24 75 %

Total 32 100 %

Item Two Scale Freq.(n) Percentage (%)

My immediate supervisor doesn’t want much time 4 0 0%

to consult with team members, and wants to quick
decisions that are in the best interest subordinates 3 2 6.25 %

2 6 18.75 %

1 24 75 %

Total 32 100 %

Item Three Scale Freq.(n) Percentage (%)

I believe there is a resentment among group
members and co-workers often ends up feeling that 5 0 0%
they have no inputs for decisions or less
information in how things done 4 0 0%

3 2 6.25 %

2 8 25 %

1 22 68.75 %

Total 32 100 %

27
The table (Table 4.6) summarises some of the basic attributes of autocratic leadership style of
leaders in the case of Commercial Bank of Ethiopia, Dessie main branch.

The attributes were supervisors’ urgency in an established clear rule, the time they took to
consult with their subordinates, and the feeling of resentment among group members and co-
workers at front and middle level subordinates as a consequence of lesser contribution with any
higher-level decisions of the bank.

According to the survey, for item 1, 2, and 3 of the table (Table 4.6), majority of respondents
were (i.e., 75 %,75 %, and 68.75% respectively)do not believed with their immediate
supervisors’ behavioral tendency in practicing their business process of the bank.

Indeed, autocratic leaders tend to overlook the knowledge and expertise that group members
might bring to most situations. Failing to consult with other team members in situations hurts the
overall success of the group (Saleem, H. (2015). As a result, feeling of resentment among group
members and co-workers would be cultural.

In the case of this study, however, none respondents (0 %) believe the sense that they don’t have
inputs for decisions (Table 4.6). The pattern from the table (Table 4.6) concedes with the
response of respondents regarding items from table (Table 4.4.1 and Table 4.4.2) which shows
the core attributions of democratic leadership style.

While autocratic leadership can be beneficial at times, there are also many instances where this
leadership style can be problematic. People who abuse an autocratic leadership style are often
viewed as bossy, controlling, and dictatorial. This can sometimes result in resentment among
group members.

Group members can end up feeling that they have no input or say in how things or done, and this
can be particularly problematic when skilled and capable members of a team are left feeling that
their knowledge and contributions are undermined.

Because autocratic leaders make decisions without consulting the group, people in the group may
dislike that they are unable to contribute ideas. Researchers have also found that autocratic

28
leadership often results in a lack of creative solutions to problems, which can ultimately hurt the
group from performing.

4.4.5: The Believe of employees with the existence of problems with Leadership

A. Leadership Problem?

Item: Do you think there is a problem related to leadership in your organization?

Table 4.7 Believe of Employees with the Presence/Non-Presence of Problems with Leadership Response
Distribution (n=32) (Source: Survey)

Variable Frequency (n) Percentage (%)

Yes 0 0%

No 32 100 %

Total 32 100%

From the Table 4.7 above it present respondents’ opinion on the presence of problems with
leadership or not. Based on the survey, respondents’ perceptions or stance with this item were
completely in favour of the bank’s supervisors of different functional areas and the leadership
within. 32 (100%) of the respondents believe with the non-existence of leadership problems.
Thus, the finding, as to respondents, revealed with a working environment of self-understanding
and preparedness of the followers to work with their current supervisors.

29
 CHAPTER FIVE

5. CONCLUSION AND RECOMMENDATIONS

5.1 Conclusions and Suggestions

This paper has assessed the leader-follower relationship and its effective within the bank context.
The study was aimed to examine leadership style and practice, that could imply attributable for
its effectiveness in the context of Commercial Bank of Ethiopia of Mugad Branch; Dessie,
Ethiopia.

According to the findings, despite the out-of-scope demographic variables, it is plausible to

concluded that, both leaders and followers share the responsibility for minimizing bad
leadership, and maximizing good leadership. Providing a chance of participation in decision
making, freedom, trust and other similar phenomena in leading an organization (the bank in this
case) might provide insight for leaders into how they can better manage their followers and
develop mutually supportive relationships. It should also provide insight to leaders on
followership styles, behaviors and motivations. Banks should ensure that subordinates feel
secure enough in their own position so that they are happy to develop a climate which motive
and encourage co-workers.

In light of the evidence presented in the previous chapter, it might be suggested that good
leadership could be advocated by ensuring leaders to be fully aware of the various roles and
responsibilities held by the follower. Leaders need to be sensitive to the needs of the follower
and aware of the power that the follower holds in relation to successful leadership. The sensible
leader will ensure this power is always maintained at the appropriate balance in order to maintain
successful, satisfying and mutually beneficial relationships, fostering exemplary followership.

For the purpose of assessing the recurrent leadership behavior of supervisors, the researcher had
proposed and managed to pick up the most basic features, or attributes of three main leadership
styles at random. Accordingly, each leadership theories went assigned by three attributes, which
were believed to represent a style of leadership for an organization in a given situation.

In addressing the basic research question themed by what leadership styles practiced by the
bank, the study instrument (questionnaire) was designed to have democratic, laissez-faire, and
autocratic leadership style attributes. For all of those attributes, respondents were asked to

30
express their opinion or believe (A scale from Strongly Agree to Strongly Disagree) on what
pattern of leadership behaviors they have often witnessed with their immediate supervisors for an
extended working environment.

Findings indicate that, facts of working environment that could be fine to say a better
subordinates followership response, with a first-rate supervisors’ leadership behavioral pattern.
In addition to that, the findings also indicate what does supervisors’ prominent leading
behavioral patterns looks like specifically to the style of leadership in the bank. According to the
standardized instruments (indeed customized by the researcher) used in this study, the responses
shown us the dominance behavioral characters of supervisors were goes to democratic than an
autocrat style.

Surprisingly, the patterns with practiced leadership characters with an autocratic style weren’t
alleged by respondents for all of the items. According to the responses of this study, no one
believes, or witnessed an autocratic working features or behavior of their supervisors in the
whole bank’s business process.

Thus, based on an examination of the bank’s (Commercial Bank of Ethiopia of Mugad Branch;
Dessie, Ethiopia) leadership style and practice, this study suggests in keeping the current
leadership in order to effectively attain the organization’s (CBE) goal. The suggestion primary
would go to Mugad Branch of Dessie town’s district.

Moreover, as the results of the study advocates, it is recommended to delegate employees in

order to give employees a fruitful chance of participation in decision makings. Again, it is
recommended to give subordinates freedom and trust as indicated in this research.

This study was conducted considering attributes of different leadership theories, and the
researcher found the effect of situational attributes (participatory ) which influences and
improves leadership-followership relations to the effectiveness extent of the currently practical
leadership of the branch bank.

Finally, despite the findings of this study, a decision taken via consultation with employees
would become productive and improve the effectiveness of leadership.

31
The researcher also suggests that, more of participatory is a useful way of involving employees
to use their skills in problem solving. Where the employees feel that, they have the opportunity
to discuss problems and can influence organizational decisions the impact of participation
increase employee acceptance of the bank’s leadership.

32
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Appendixes:
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Appendix 1: Work Plan Table:

Major activity Month of Activities – Approximate

1 Title Approval January

2 Preparing concepts around the study area February

3 Submit first draft proposal March

4 Incorporate Feedbacks and Re-Submitting a March

Revised Proposal

5 Finalize the proposal with the forwarded March

commentaries and get proposal approval

6 Actual research Commencement April

7 Data collection and management April-May

8 Organizing, analyzing, and interpreting the May

collected data

9 Submit the first draft of the research May-June

10 Get feedback with the first draft May-June

11 Incorporate commentaries from advisor, and June

submit the final work of the research

12 Preparation for presentation and defending June-July

the final report of the research

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Appendix 2: Questionnaire

Wollo University
College of Business and Economics
Management Department
QUESTIONNAIRE

37
Dear respondents;

My name is BetelhemBelayneh, a graduate class student, from Wollo University, Collage of

Business and Economics at Department of Management. Currently, I am conducting a research
on the area of “Leadership Style” in partial fulfillment of the requirements for Bachelor’s
Degree in Management. The objective of this study is “Assessment of Effective Leadership Style
on Employees’ Motivation (The Case of Commercial Bank of Ethiopia, Dessie Mugad Branch).”

To this end, I would like to ask your cooperation to fill this questionnaire in a prompt and
objective manner. In addition to this, the researcher wants to assure you in advance that the
information collected from you will be used only for academic purpose and your personal
information will be kept confidential.

Thank you in advance!

BetelhemBelayneh

General Guidelines:
1. It is not required to write your name anywhere herein.
2. Please put a mark or symbol (  )symbol as an indication of your appropriate
response of an item throughout the questionnaire.

Part I: Demographic Information:

1. Sex: Male Female

2. Your Age: < 25 Years old 26-35 Years old 36 -45 Years old
> 45 Years old
3. Marital Status: Single Married Divorced

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4. Educational Level: Diploma BA Degree Master PhD Other
5. How long your work experience for the bank is? (Indicate the range for your work
experience)
< 3 Year 3 to 6 Years 7-10 Years Above 10 Years
6. The range your monthly salary lies in?
3000-4000 Birr 4001-5000 Birr 5001 Birr-6000 Birr
6001-7000 Birr Above 7000 Birr

Part II: Leadership Style and Your Immediate Supervisor’s Tendency with Practicing

Leadership

For all items below in the table, please put a mark (  ) as your most appropriate scale that would
show your thought or believe with the style and practice of leadership with your supervisors.

To what degree do the statements below correspond to your thought with the bank’s

Strongly Disagree [1] Disagree [2] Neutral [3] Agree [4] Strongly Agree [5]

R.N Item 1 2 3 4 5 Remark

o.
1 Leaders make employees participate in decision
making, as a result I fee feel I’m respected,
important and appreciated.
2 My immediate supervisor often gives freedom and
trust with me, takes a decision via consultation and
keeps channels of communication open with co-
workers at different levels, lead a bank according to
subordinates’ interest, open for any opinion
3 As to me (what I believe is), my immediate
supervisor drives his/her power from human
relationship

4 Supervisors or leaders provide the appropriate and

needed resources for tasks, but want staffs have
sufficient skills, experience or motivation to
complete duties
5 Leaders give more freedom to employees, and it is
my feeling that, often, it is in the best interests of

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 the bank to empower me
6 My supervisor provides me a wide space to choose,
and decide with tasks, but without sacrificing the
goals of the organization
(Often makes me more responsible)
7 Most of my supervisors urge for and believe in an
established clear rule and provide tools
8 My immediate supervisor doesn’t want much time
to consult with team members, and wants to quick
decisions that are in the best interest subordinates
9 I believe there is a resentment among group
members and co-workers often ends up feeling that
they have no inputs for decisions or less
information in how things done
Note: If there is an exceptional thought beyond the scale, please use the “Remark”
column of the table to write any commentary.

Part III: Leadership Problem and Opinions

1. Do you think there is a problem related to leadership in your organization?

Yes No
2. If the answer for question number 1 of this part is “Yes”, what problems do you often
observe?
Absence of good leadership style
lack of good relationship with co-workers
Work environment
Other, if any specify……………………………………

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