The Effect of Leadership on Performance of Employees

Jimma, Ethiopia

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Table of Contents Page
Acknowledgement............................................................................................................................i

CHAPTER ONE

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

1.1 Background of the Study...........................................................................................................1

1.2 Statement of the Problem...........................................................................................................3

1.3 Basic Research Questions..........................................................................................................4

1.4 Objectives of the Study..............................................................................................................4

1.4.1 General Objective of the study...............................................................................................4

1.4.2 Specific Objectives of the study.............................................................................................4

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

1.6 Scope of the Study.....................................................................................................................5

1.7 Limitation of the study...............................................................................................................5

CHAPTE TWO

2. REVIEW of RELATED LITERATURE.....................................................................................6

2.1 Theoretical Concept...................................................................................................................6

2.2 Problems Related to leadership that Affect Employees............................................................6

2.3 Empirical Review......................................................................................................................7

2.4 Conceptual Framework..............................................................................................................9

CHAPTER THREE.......................................................................................................................10

3. RESEARCH METHODOLOGY

Introduction...................................................................................................................................10

3.1 Research Design......................................................................................................................10

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3.2 Source of Data.........................................................................................................................10

3.3 Sample Size and Sampling Technique....................................................................................11

3.4 Data Gathering Techniques.....................................................................................................11

3.5 Method of Data Analysis.........................................................................................................11

3.6 Ethical Consideration...............................................................................................................11

References......................................................................................................................................20

Appendix........................................................................................................................................21

Acknowledgement
In the name of Jesus, the Most Gracious, the Most Merciful. All praise to Almighty God, the
one to whom all dignity, honor and glory are due. “Who does not thank people, will not thank
God". We would like to acknowledge my sincere thanks and gratitude to our advisor: Mr.
Samson for his steadfast support, guidance and dedicated labor. His enthusiasm and professional
expertise have provided tremendous guidance throughout carrying out our research. His amazing
support has been a blessing to us. His encouragement and professional insight has inspired both
our personal and professional development.

Next to my advisor, we would like to express our deepest appreciation to our family especially
mothers for their endless love from womb up to our adulthood stage and our fathers for their
endless support from primary level up to University to complete our education and all our
parents and classmates.

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1.1 Background of the Study
Civil service leadership has never been so challenging or complex. Public service leaders work
across Organizational boundaries and jurisdictions to tackle ongoing and emergent policy
challenges and improve the impact of civil services. They have to make space for innovation
while managing risk and being accountable for results. They must support fast-moving political
agendas, manage and transform vast public organizations, motivate and inspire their workforces
and be trusted partners to citizens and an ever-growing list of partners and stakeholders. All of
this while promoting the highest level of personal and professional ethics and integrity (Davis, J.,
2005).

Leadership is the process of influencing people and providing an environment to achieve and
organizational objectives (Awamleh, R., 2004). In the process there are practices of planning,
work allocation, organizing controlling and decision making. In the progress to the modern word
business companies’ government, organizations and public enterprises regardless of their size
and nature are facing challenges in computing for existence; much business leadership is welded
to the performance, leadership is the process of influencing, employees people and providing an
environment for them the activities teamed the organization.

Organizations are social frameworks where human resources are the most essential components
for effectiveness and proficiency. Organizations need powerful supervisors and employees to
accomplish their goals. As an issue of regular contentions, the achievement or disappointment of
an association is subject to the styles and aptitudes of a leader. A leader can be considered as the
person who expect hierarchical presence and the person who protect the lastingness and the
perseverance of the organization in the objectives it was set up for. By practicing certain
authority capabilities and abilities, a leader ought to have the capacity to create clear leadership
styles and practices to fulfill authoritative objectives (Ababneh, 2009). The leader has this
capacity to guarantee that workers are upbeat and beneficial.

Leadership as a subject has increased expanding consideration by numerous scholars, researchers

and specialists in the course of the most recent decades or somewhere in the vicinity. Given
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numerous organizations are in turmoil because of various crisis, leaders are regularly considered
as somebody who is equipped for moving the boat in the midst of solid tides and streams, and
thus it is not amazing this idea has drawn scholarly considerations (Fernandes, C., 2004).
Leadership is characterized as the capacity to impact a gathering towards the accomplishment of
objectives. It is a procedure by which a man impacts others to fulfil a target and coordinates the
association in a way that makes it more durable and cognizant.

Leadership plays a critical role in creating clear vision, mission, determination and establishment
of objectives, designing strategies, policies, and methods to achieve organizational objectives
effectively and efficiently along with directing and coordinating the efforts and organizational
activities. As (Khajeh, 2018) noted a leadership to be best, it needs to comply with internal and
external changes to meet organizational mission and vision. Recently, lots of companies are
facing different challenges like organizational misconduct, high rate of employee turnover and
poor financial performance. Leadership is a very important factor in the formulation and
realization of organizational goal. Even the break up and success of any organization, nation or
other social entity has largely been attributed to the nature of its leadership style (Iqbal N, Anwar
S and Haider 2015). Leadership’s role is a necessary condition to coordinate all activities and
aspirations of a given group. Leadership cannot be live alone without a group and a group cannot
be sustained without a leader as well.
In fact, the term leadership has different definitions by different people. The practices of
influencing a social phenomenon also described as leadership. A special kind of guidance that
motivates and affects an individual in the organization all kinds of social situation especially
actual claim that makes people work together to achieve common goals and objectives is also
known as leadership (Sakiru, et al 2013). Performance refers to the proportion between product
and all factors of production to achieve the required output. It is the efficiency of an individual
productivity and multinational elements in companies, in which it mostly upgraded by
employees’ diligence. Relationships among leaders’ behavior or style and employees have
gained bigger focus from different communities.
Hence, the type of leadership style has positive or negative impact on how organizations cope
with improving productivity by strategic vision of the organization (Sougui et al, 2015).
Leadership style impacts the whole operating performance of efficiency, effectiveness, income, market

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share and as well as the company . Therefore, this study was to assess the effect of leadership on
performance of employees: in case of Maji town civil service administration

1.2 Statement of the Problem

Leadership style cultivated itself as a significant determinant of workers' job performance
together with normal skills familiar by supervisors at various level of progressive system
(Wexley &Yukl, 2004). Target reaction of individuals to leaders for the most part is identified
with the worker's attributes and leader's qualities and demonstrated skills.

Employee performance which includes implementing, defined duties, meeting deadlines, team
work and achieving departmental goals. In different institutions and organizations such as
Ethiopian Railways Corporation, they need to have a sound leadership styles which includes
transformative approaches, democratic and laissez-faire approaches to leadership. Different
researches conducted by Abdullahi (2013) and Narges (2013) tied with findings, identified that
lots of authoritative leadership tendencies existed and thus this works for as a background for
low innovation and declined commitment that greatly affects employee performance as was
indeed observed through the study findings.

As Abdullahi, Aishat; Agbana, Narges Kia, (2013) indicated that there have been
continuous downward trends the performance of employees registered in public institutions in
Ethiopia. These may be happening as a result of numerous factors such as inadequate funding,
lack of motivation, work climate, leadership and leadership’s styles among others. They have
explored intensively other factors except leadership style as a factor that influence impacts of job
performance of staff. In business, leadership is welded to performance. Effective leaders is
increase their company’s bottom lines leadership is also the art of motivating a group of people
to act towards achieving a common goal, a good leader is the one who has made a lasting impact
on people who is not commanding.
Where bad leader is a person in leadership that lacks the necessary skill, ability and overall
quantities to effectively, now a day every organization has its own objectives one of the activity
that is influencing people to corporate toward some goals is good leadership, most organization
have problems such as lack of transparency, practice of corruption, lack of effective

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communication among employees and leaders as well as poor performance. Therefore, this study
wants to assess the effect of leadership on performance of employees: in case of Jimma town
civil service administration.

1.3Basic Research Questions

1. What are the features of leadership in your organization?
2. What are the features of Employmen performance in the organization?
3. What are effects of leadership on features of your in the organization?

1.4Objectives of the Study

1.4.1 General Objective of the study
The main objective of study is to assess the effect of leadership on performance of employees: in
case of Maji town civil service administration.

1.4.2 Specific Objectives of the study

 To identify the features of leadership in your organization
 To examine the features of employment performance in the organization
 To identify the leadership style that the organization leadership follow

1.5 Significance of the Study

Leadership is an important function of management which helps to maximize efficiency of
managements and achieve organizational goals. Thus, this study will be helpful knowing the
effect of leadership on employees and will explore the ways to find out how can employees work
together and improve leadership structure of the organization.

This study will be the ground spring for the new coming researchers. The policy maker,
community, public service customers and other stakeholders will be beneficiary on getting
knowledge, experience and advantage on conducting the different data about this study and have
some the knowledge about effect of leadership on the performance of employee for any business,

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also the study will be used for other organizations which are similar by taking this study and they
can check themselves with problem to be researched.

1.6 Scope of the Study

Geographically this study is delimited to Maji town. Maji town is well known in, southwest
Ethiopia extends from 5° 12′0″ to 6°25′30″°N latitude and 35° 15′0″ to 36° 18′0″° E longitude.
The capital city of the town is, Tum, which located 737 km southwest of Addis Ababa, the
capital of Ethiopia.
1.7 Limitation of the study
While writing this study the researchers faced different challenges. Few of the challenges are
shortage of time, lack of computer typing skills, poor internet services and personal related
problems but all the researchers used different copying mechanism to deal with the limitation
and conducted this research proposal.

1.8 Organization of the paper

The study has five chapters: those are; the first chapter contains introduction, back ground of the
study, statement of the problem and objective of the study. The second chapter consists of a
review of theoretical and empirical literature that is related to the area concerned. The third
chapter encompasses research method, the data type and source, research sampling technique,
study population, study sample size, data collection instrument. The fourth chapter present
discussions of results and encompass descriptive statistics analysis of data to be collected. The
last chapter of this study represent summary of finding, conclusion and recommendation.

CHAPTE TWO
2. REVIEW of RELATED LITERATURE
2.1 Theoretical Concept
Leadership is the practice of influencing others to work willingly to achieve organizational goal
with self-assurance. It is usually well-defined basically as the process of influencing people to
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use their effort utmost to achieve a particular goals. Leadership is the art of inducing people to
strive willingly towards the attainment of group goals. This concept also expanded to include not
only willingness to work but with passion and confidence. Leadership can be defined as a
dynamic process whereby one man impacts others to contribute willingly to the realization and
attainment of objectives with the aspiration of common organizational values of the group that
who are representing the spirit of Leadership in assisting a group or an Organization to attain
everlasting growth (Berson, Y., Shamir, B., 2001).
Leadership styles defined as a preferred manner of who can tackle duties and personnel cases in
carrying out goals set for their teams. Different leadership styles practiced by any management
have big impact on employees’ job performance (Mullins, 2004). Leadership style is also the
manner or approach of providing, directing, enforcing plans and motivating people which
includes the overall outline of explicit and implicit supervisions and actions taken by leaders
(Davis, 2005).

2.2 Problems Related to leadership that Affect Employees

Some of the common problems that related to leadership’ are: - it is not clear exactly what
behaviors are indicative of leadership. Leader in organizational may have only small effects on
organizational performance because there are selected from individuals very similar to each other
because there are many situational constraints on their actions and because organizational
performance is affected by many factors that are not side the leader strip control. Organizational
members can promoted to leadership positions not based on their performance or ability but on
relevant factors such as social status (Richard, 2009, p72). Many problems occur because of
people failing to communicate effectively-faulty communication cause problems in organizations
and can cause a good plan to fail.
Less motivation for employees such as, not enough of monetary growth, little or no appreciation,
less work or too over loaded, late working hours, groupies and sometimes even ragging which
cause the employee de-motivated and feel like quitting or reduce productivity the organization
(Boston & Harvard, 2001).

2.3 Empirical Review

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Leaders and their leadership styles is one among the mostly researched topics within the recent
past. A number of studies are conducted on the consequences of leadership styles on employee
performance. Rassol et al (2015) researched leadership styles and its effect on workers’
productivity in the health sector of Pakistan and generalized that transformational leadership
styles have more positive impact on employee productivity than transactional leadership. They
found out that transformational leadership can achieve better in highly organized working
environment where focus is on competitive returns. Results of their study also explored that the
impact of transactional leadership wasn't much stronger as compared to transformational
leadership on job performance. According to Pradeep and Prabhu (2011), leadership is positively
connected with workers productivity for both transformational and transactional contingent
reward leadership’s manners. The managers, who are seemed to demonstrate strong leadership
behaviors, whether transformational or transactional, are seen to be engaging in increasing the
employees’ performance.
In giving their summary it had been found that the transformational leadership style has
significant relationships with performance outcomes vs. effectiveness in work, satisfaction, extra
effort and dependability. Their study added some additional knowledge for a far better
understanding of the well-connected leadership approach and proper method for employing
follower in different professional hierarchies. By using their results, leaders can adjust their
behaviors in practical ways to reinforce subordinates’ job performance, thereby reaping
increased productivity for his or her organizations as a consequence. They emphasize on the
necessity of leaders to possess the ability to draw in / influence their subordinates, be ready to set
clear standards of performance to their peers and act as a best model to the subordinates.

A research conducted by Aboshaiqah et al (2015) on nurses’ opinion of managers’ leadership

styles and its connected outcomes verified that staffs a parented that transformational leadership
and its aspects are exploited than transactional and laissez-faire leadership styles, and again,
additional analysis indicated that there was a positive correlation between output factors such as
(effectiveness, extra efforts and satisfaction) and transformational and transactional leadership

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styles and negative correlation with laissez-faire leadership styles. It also generalized that a
mixture of transformational style and manners contributed to augment in more effort, pleasure
and in general employee productivity and professed leader efficiency among nurses. Ipas (2012)
conducted a research on the alleged leadership style and employee productivity in hotel industry;
he found that autocratic leadership style is perceived as being the widely practiced style by the
managers that ensure likely outcomes.
Different companies are facing lots of challenges because of lacking efficient leadership. In fact,
most companies are dreaming to achieve the objectives they stand for. Hence, a leader who can
point of fact bring together and stimulate employee to use their endeavor at greatest is required
(Vigoda-Gadot, 2012). A researcher Khajeh (2018) in his article entitled “Impact of Leadership
Styles on Organizational Performance” articulated that leadership plays an important role for the
success and failure of such organization. In its finding indicated that there is either positive or
negative connect on among leadership styles and organization performance. In the meantime
another researcher Kalsoon et al (2018) on their article named “Impact of Transactional
Leadership and Transformational Leadership on Employee Performance: a case of FMCG
Industry of Pakistan” found out that both of transactional and transformational leadership styles
have a positive correlation with employee performance. To reach in this finding, the researchers
have collected data from 318 employees of the industry. The above mentioned researchers have
been examined leadership manners and found out that leadership styles have different impacts on
employee’s productivity. In fact; they revealed that effective leadership has a positive impact on
employee performance.

2.4 Conceptual Framework

The conceptual framework points out the vital course which is very valuable to give you an idea
about the direction of the study. The study shows the relationship between employee
performance and leadership styles. Also the study focuses on gaps which represent the difference
between employee’s expectation and perceptions which are referred to as the perceived

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leadership styles. The difference between expectations and perceptions is called the gap which is
the determinant of employee’s perception of leadership styles. The practiced leadership styles by
the corporation, effects of these leadership styles and strategies taken by the organization are
considered as independent variables while employee performance can be taken as dependent
variable.
The conceptual framework for this study assumed performance indicators which contained
employee activities like executing clear duties, meeting deadlines, team work and achieving
work unit goals referred as dependent variable, are determined by the following independent
variables which include types of leadership styles. Organizational strategy of the corporation is
also taken as an independent variable to check its impact on the mentioned dependent variables.

CHAPTER THREE
3. RESEARCH METHODOLOGY

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3.1 Research Design

The researchers used descriptive research design which is intended to assess the effect of
leadership on employee performance in case of Maji town public service. A descriptive research
intends to present facts concerning the nature and status of a situation, as it exists at the time of
the study and to describe present conditions, events or systems based on the impressions or
reactions of the respondents of the research (Creswell, 1994). In other words, the quantitative
method allows the researcher to establish a relationship between variables, but it is often weak
when it comes to exploring the reasons for those relationships among variables. So, the
qualitative method will be used to explain the factors underlying the broad relationships that will
be established (Punch, 2005) or qualitative procedures provide means of accessing non-numeric
facts about the actual people the researcher observes and talks; qualitative techniques allow
researchers to share the understanding and perceptions of others and to explore how people learn
about and make sense of themselves and others (Creswell, 1998).
3.2 Source of Data
To accomplish this study, the researchers used both primary and secondary source of data. The
primary source is consisting information gathered through structured questionnaires from the
sample chosen. The secondary sources of data include; books or other published materials.

3.3 Sample Size and Sampling Technique

The target population of this study will be Maji town public service internal employees. There
are 2 leaderships and 43 employees in town public service with total 45. The sample size of this
is limited in size. Therefore, the researcher used all the population to distribute questionnaire and
interview.

3.4 Data Gathering Techniques

The researchers used survey method (questionnaires and interview) to gather the primary data
from Maji town public service internal employees. The questionnaire will be constructed based
on three basic research questions. Questionnaire will be administered to employees in the

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department and interview was conducted with 2 leaderships in the department.

3.5 Method of Data Analysis

The researcher collected both quantitative and qualitative data from sample respondents. The
quantitative data will be collected through a close-ended questionnaire. While analyzing data,
quantitative data will be statistically organized and imported into SPSS V.20.0 to obtain
frequency and percentage. In addition, percentages was also used to interpret the background
information of the respondents and the data that to be gathered through a close-ended
questionnaire. Finally, the data to be gathered through interview and open-ended questions in the
questionnaire will be presented and analyzed qualitatively based on themes to supplement the
data gathered through close-ended questions in the questionnaire, and triangulation of the data
was made side by side.

3.6 Ethical Consideration

The completion of the study will be based on based on the consent of participants and
willingness of the target respondents. The researcher should tell subjects the full detail of the
purpose of the study based on effects of leadership on employees’ performance. As a result of
the genuine information they provide for the accomplishment of the study. In addition, informed
to the subjects that they have the right to remain anonymous for providing any information. The
researcher also get official letter from the department head in order to formally approach the
respective respondents whom the researcher sought the right information. Then, researcher also
behaved ethically and morally in a way that the subjects trusted him as result of which he
expected to get genuine information. General the researcher should use and bounded to the
ethical consideration and let them informed consent signed to ensure anonymity and
confidentiality.

References

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Aboshaiqah, A. E., Hamdan-Mansour, A. M., Sherrod, D. R. Alkhaibary, A. &Alkhaibary, S.
(2015). Nurses’ Perception of Managers’ Leadership Styles and Its Associated
Outcomes” American Journal of Nursing Research, 2 (4), 57-62.ity Printery
Berson, Y., Shamir, B., Avolio, B. J., & Popper, M. (2001). The relationship between vision
strength, leadership style, context The Leadership Quarterly, 12, 53–73
Bushra, F., Usman, A., &Naveed, A. (2011). Effect of transformational leadership on
employees’ job satisfaction and organizational commitment in banking sector of Lahore
(Pakistan) International Journal of Business and Social Science, 2(18), 261-267
Davis, J., F. Schoorman and L. Donaldson (2005), “Toward a stewardship theory of
management”, in Business Ethics and Strategy, Volumes I and II
Fernandes, C., &Awamleh, R. (2004). The impact of transformational and transactional
leadership styles on employee’s satisfaction and performance: An empirical test in a
multicultural environment.
Iqbal N, Anwar S and Haider N (2015).Effect of Leadership Style on Employee Performance.
Arabian Journal of Business and Management Review
Hayward, B. A., Davidson, A. J., Pascoe, J. B., Tasker, M. L., Amos, T. L., &Pearse, N. J. (2003,
June). The Relationship between Leadership and Employee Performance in a South
African Pharmaceutical Company In Society for Industrial and Organizational
Psychology 6th Annual Conference (pp. 25-27)
Kelly Okpamen (2017). The Influence of Leadership Styles on Work Performance Among Staff
of Federal University Wukari, Taraba State, Nigeria.AASCIT Journal of Psychology
Mohamed Esse Abdilahi (2016). Effects of Leadership style on employee performance in
Dashen Bank.Unity University, Addis Ababa, Ethiopia
Molero, F., Cuadrado, I., Navas, M. & Morales, J. F. (2007). Relations and Effects of
Transformational Leadership: A Comparative Analysis with Traditional Leadership
Styles," The Spanish Journal of Psychology, vol. 10, pp. 358- 368
Oladipo Kolapo; Abdullahi, Aishat; Agbana, Narges Kia, & Nwosu Lucia Ndidi (2013).
Leadership styles and its effectiveness on employees' job commitment. Research on
Humanities and Social Science University Putra Malaysia
Appendix

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 Rift Valley University
Jimma Campus
Department Of Business Management
Dear respondents,
This research questionnaire is designed to collect data on the effect of leadership on performance
of employees: in case of Maji town civil service administration. The researchers believe that
your responses are vital in determining the success of this study. Hence, you are kindly
requested to fill the questionnaire completely and honestly. The researcher would like to assure
you that the responses that you give will be kept confidential and used only for the academic
research.
Thank you in advance for taking your time to fill this questionnaire!

General Instruction

 No need of writing your name and others

 Don’t tear any margin paper
 Read all the questions before attempting to answer

Part One: General Background information of the respondents’

Indicate your response by using "√" in the box provided

1. Gender: Male □ Female □

2. Age: 20-25 years □ 26-30 years □30-35 years □ above 35 years □
3. Work experience: 1-5 years□ 6-10 years□ 11-15 years□ above years□
4. Educational background: Diploma□ First degree□ MA degree □

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Part two: Features of leadership in the Organization
NB: Indicate your responses for the following Likert scale items using” √” or "X" mark to write
in the box corresponding to an action.
1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree
no Features of leadership in the Organization alternatives for the scale
1 2 3 4 5
1 Your leaderships are allowed to bring new ideas
in organization.
2 Your leaderships are motivated at work.
3 Your leadership lead the organization accordance
to set vision.
4 Your leadership are receiving contingent rewards
(money, other gifts) when he/she perform better.
5 Changes in an organization are discouraged.
6 Subordinates have little freedom of making
suggestions.
7 Leaders have absolute power over their subordinates.
8 Subordinates are distrusted.

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Part three: Features of Employment performance in the organization

Use the scale of 1 = “Strongly agree”; 2 = “Agree”; 3 = “Neutral”; 4 = “Disagree”; and 5 =

“Strongly disagree”, give your views on the prevailing situation your performance in your
department or organization by putting a tick [√] in the table below the number that best describe
your views.

no Features of Employment performance in the alternatives for the scale

organization 1 2 3 4 5
1 I prepare work plan.
2 I submit report on performed duties in time
3 I diligently execute duties as per schedule
4 I collaborate with others to carry out duties
5 I Support members to accomplish their duties
6 I meet standards on me work assignments.
7 I report at work place in time.
8 My department meets set financial targets

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Semi-Structured Interview Guide for the Leadership of the Department

This interview aims at collecting data regarding; the effect of leadership on performance of
employees: in case of Maji town civil service administration. High level of confidentiality will be
observed when presenting the data. Please kindly answer the following statements as understood or
practiced by you to ensure attainment of the expected objectives under this study. Please note that you are
not required to tell your name.

1. What are effects of leadership on features of your in the organization?

2. How do you manage decision making in your department?
3. How do you manage reward to your staff?
4. How do you delegate duties?
5. How do you manage performance of employees?

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