The Effect of leadership style on employee’s performance: in the case of

oromia Bank.

SHEGER COLLEGE OF GRADUATE STUDIES

MBA PROGRAM

By: Giza Jambo Chala

A PROPOSAL SUBMITTED TO DEPARTMENT OF BUSINESS ADMINISTRATION IN

PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF
MASTERS OF ART IN BUSINESS ADMINISTRATION.

Advisor: Mengistu(As.Prof)
Mar 31, 2024
Addis Ababa, Ethiopia

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 APPROVAL SHEET

SHEGER COLLEGE
OF GRADUATE STUDIES MBA PROGRAM

“The Effect of leadership style on employee’s performance: in the case of

oromia Bank s.c”

By Giza Jambo (SCMBA/171 /2016 ) Signature---------------------------------

Approved by Board of Examiners Date--------------------------------------

Internal Examiner Signature Date

External Examiner Signature Date

Advisor Signature Date

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Acknowledgment
First and for most, I would like to give my glory and praise to the Almighty GOD for his invaluable cares,
supports throughout the course of my life and helped me since the beginning of my education to its
completion and enabled me to achieve my career.

Next, I would primarily like to warmly thank my Advisor, Mengistu (As.Prof) for his proactive
guidance, sharing the necessary information and relevant reference materials. I would also like to extend my
gratitude to the concerned staffs of Oromia Bank S.C for their wholehearted hospitality, sharing important
information, and source documents that would help me as an input for this research.

Also I would like to forward my special gratitude to my family, specially my spouse, for her moral support
during the entire duration of the course.

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Contents

Acknowledgment....................................................................................................................................................ii
LIST OF ABBREVIATIONS.................................................................................................................................6
List of Tables..........................................................................................................................................................7
List of Figure..........................................................................................................................................................8
Chapter one.............................................................................................................................................................1
1. Introduction...................................................................................................................................................1

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

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

1.3 Research Question........................................................................................................................................4

1.4 Objective........................................................................................................................................................5
1.4.1 General objective..................................................................................................................................5
1.4.2 Specific objective.................................................................................................................................5

1.5 Significance of the study..............................................................................................................................5

1.6 Scope of the study.........................................................................................................................................5
1.7. Methodological Limitation of the study.......................................................................................................6

1.8. Operational Definitions...................................................................................................................................6

1.9. Organization of the Study..............................................................................................................................7

Chapter Two...........................................................................................................................................................8
2. Literature Review...............................................................................................................................................8
2.1. Theoretical Literature......................................................................................................................................8
2.1.1. Concept of Leadership..............................................................................................................................8
2.1.2. Leadership Styles......................................................................................................................................8
2.2 Type Leadership style.................................................................................................................................10
2.2.4 Autocratic Leadership Style.....................................................................................................................13
2.3 Leadership Theories....................................................................................................................................13
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 2.4 Empirical Literature.................................................................................................................................20
2.5 Conceptual Framework...............................................................................................................................24

CHAPTER THREE............................................................................................................................................25

3. Research Methodology...................................................................................................................................25

3.1 Study Area......................................................................................................................................................25

3.2. Research Design............................................................................................................................................25

3.3. Research Approach........................................................................................................................................25

3.4. Population and Sampling Design...................................................................................................................25

3.4.1. Target Population........................................................................................................................................25

3.4.2. Sampling Design.........................................................................................................................................25

3.5. Sources and methods of Data Collection Method......................................................................................27
3.6. Ethical Considerations...................................................................................................................................28
4. Work and Budget Plan......................................................................................................................................28

4.1 Work Plan.......................................................................................................................................................28

4.2 Budget Plan.....................................................................................................................................................30

5. REFERNCE....................................................................................................................................................31

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 LIST OF ABBREVIATIONS
OL-organizational leaders

EP-Employee performance

OB-oromia Bank

OBSC-oromia Bank share company

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 List of Tables

Table 1 Action Plan............................................................................................................................................................................... 37

Table 2 Budget Plan.............................................................................................................................................................................. 37

List of Figure
Figure 1 Conceptual Framework ..........................................................................................................................................................32

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 Chapter one
1. Introduction
1.1 Background of the Study
Leadership Style is a set of behavior patterns that frequently occurs during the constant organizational working
and other knows him by it and as manager of the organization are very cooperative with the staff, the
leadership style of these managers has a significant impact on staff morale. And constantly the staff morale
will affect on their performance (Shirzad, Kebriya, & Zangeneh, 2011).

According to Kim (2004) ,the view that the kind of leadership style exhibited by managers to a large extent
influences organizational valued outcomes such as low employee turnover, reduced absenteeism, customer
satisfaction, and organizational effectiveness. Similarly, leadership style controls interpersonal, reward, and
punishment that shapes employee behaviour, motivation, and attitude which impacts on organizational
performance.

Employees Performance is one of the most important dependent Variables and has been studied for a long
decade. Employees performance is one of the performance variables that are important for organizational
effectiveness. Thus Employees‟ job performance refers to behaviours that are directly involved in producing
Goods and Services. Employees Performance is the key for organizational objective achievement. Leadership
on the other hand, is perhaps the most investigated organizational variable that has a potential impact on
employee performance (Kim, 2004).The success and failure of the organization is determined by the leadership
style that follows and leaders themselves. If here is effective and efficient leaders that has follows appropriate
leadership style for the organization can improve the performance of employee and activities interims of
achieving the objective. Employees are the most important asset for an organization, without those assets the
organization cannot perform any function even if cannot exist as an organization (Bass, 1997; Mullins, 1999).

Employee performance is important factor that facilitate the function of organization in a successful manner. It
means that the success of organization depends on the effective employee performance whether it is collective
effort or individual effort. Performance is major multidimensional construct aimed to achieve result and has a
strong link to strategic goal of an organization (Cok, 1997). According to Alln and Myer (1990) leaders have

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an extreme power in order to influence the performance of followers and built their trust up on ability, honesty,
integrity, openness, responsiveness, concern, and kindness.

Leadership as the ability to the employee managerial competency to organized performance process by
inspiring motivating team to meet organizational goal (Cok, 1997). Different leadership style are used that
benefit employees, based on amount of direction, empowerment and decision making power. As a result
employee performance is affected due to lack of proper direction and application of proper strategic style in
managing daily duties in any given organization (Ken & Heresy, 2015).

According to Hersey and Blanchard (1984), leadership is the process of influencing the activities of an
individual or a group in performance toward a goal achievement in a given situation. Hence, leadership in this
study is related to the person performance who is appointed by the organization or owner to follow up the
whole or sub activities of the organization.

The school of thought from “Trait theories” to Transformational leadership theories reveals that there is a
strong relationship between leadership style and employee performance. Whilst early theories tend to focus up
on the characteristics and behaviour of successful leaders, later theories begin to consider the role of follower
and contextual nature of leadership.

Near the beginning studies categorized leadership style according to the leader’s power and behaviour as
autocratic, democratic, and lassies fair, where style are notable by the influence leaders have on subordinates
(Mullins, 1988). In the late 1960s, Hersey and Blanchard situation leadership models categorized leadership
style has emerged that shifted emphasis from traditional models of leadership to transformational leadership.

A lot of the studies on leadership style and behaviours have been conducted on the western countries. Hence,
there are fewer perceptive on how leaders behave and its relationship with employee performance in
developing countries including Africa. Because of this preconception, our thought on leadership has been
shaped by the empirical finding and revelation of western scholars, despite the fact that people behaviour,
values and beliefs are shaped by their culture.

Western countries have rather different management system from less developed countries like Ethiopia due to
local culture and norms. Therefore, it is very critical to examine how leaders in the world manipulate the
performance if their subordinates in enlightening environment.

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In Ethiopia there is limited research conducted about the effect of dominant leadership style on organizational
performance. However, the studies conducted in other Africa countries have some significance to Ethiopia
because of ordinary surroundings.

According to many researchers the dominant leadership style in Africa is authoritarian, personalized,
inflexible, insensitive and conservative. There is also same practice in Ethiopia for a long time. Low level
leaders perform authoritatively because many times they preserve the decision authority; ignore employee
well-being and emphasis more on task than people. These leaders exercise almost absolute power.

Brownell (2010) explains that leadership is important to hospitality organizations, because they “are
profoundly affected by a leader’s behaviours and personal characteristics and especially the manner in which
the leader relates to and influences followers” This indicates that there is a need for better leadership and
management to realize high employee performance as well as improvement of skills and gearing towards
results in an organization.

There were different studies that were made under effect of leadership style on employee’s performance. Most
of them focused on economic and service organization. There were not much studies focused on financial
organization like bank and insurances. This study tries to show the effect of leadership style on employees
performance and which leadership style are more dominant in the perspective of diversified experience as bank
industry.

1.2 Statement of the Problem

The effect of leadership style on performance of employees has been an arguable theme among researchers
worldwide. Behn (2005), the issues of leadership styles on manipulating employee’s performance is one of the
questions which need to get proper answer in organizations management.
Maxwell (2015) distinguished that transactional leadership is the one which highly motivates employees than
transformational leadership. It is also expressed that transactional leadership style is able to move subordinates
beyond their normal level of performance to higher level of performance than any other leadership style (Bass,
1985). However, a positive relationship between transformational leadership and employee performance has
been found in both practical perspectives (Howell & Frost, 2009).
Many researchers believe that the Leadership styles can affect the performance of the employees of a company
both directly and indirectly. Reports show that transactional leadership style influences workers performance

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more than any other leadership style (Patern, 2005). Furthermore, it is propounded that transformational
leadership style generates higher performance than transactional leadership style (Avolio, 2013). A number of
recent studies examined the effect of leadership styles on employees performance. Se for example, Rasool, et
al. (2015), Pradeep and Prabhu (2011),Aboshaqah et al. (2015), Ipas (2012), Kahinde and Bajo (2014),
Gimuguni, et al (2014), Raja and Palanichamy (2015) etc. Rasool et al (2015) examined the health sector in
Pakistani and report that both transformational and transactional leadership styles affect employee performance
but the effect of transformation leadership style is higher than that of transactional leadership Raja and
Palanichamy (2015) report positive relationship between both transformational and transactional leadership
styles but negative relationship between autocratic leadership style and employee performance from a sample
of employees in public and private sector enterprises in India.
On the other hand, it has also been argued that democratic leadership style since sets employees to decide on
their own, it motivates them to perform better than any other leadership style hence influences them to perform
better than any other leadership style Rasool, et al. (2015). It is opposing represented that democratic
leadership style is one of the worst leadership styles in influencing employee performance as leaders let things
go without monitoring performance of employees hence leading to less performance Kahinde and Bajo
(2014).The two researchers have no common agreement on the influence of democratic leadership style where
in one perspective it is seen that it can influence employee performance while on the other perspective it
cannot influence employee performance.
As revealed in the above different researcher has shown the effect of the leadership style (autocratic,
transactional, transformational and democratic) on employee performance and tries to show whether it has
positive or negative relation and effect with performance. But there is no research done before that shows the
effect of leadership style on employee performance in the case of bank industry, especially, in Ethiopian
context. Accordingly, this study tries to demonstrate the effects of transactional, transformational, democratic
and autocratic leadership style on employee performance of Oromia Bank S.C.

1.3 Research Question

This research study will address the following basic research questions:

1. What kind of leadership style is currently practiced at Oromia bank S.C?

2. How do employees perceive the effectiveness of leadership at Oromia bank ?

3. What employees’ performance improvement system is in please at Oromia bank?

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 4. What are the effects of leadership styles on employee performance?

1.4 Objective
1.4.1 General objective
The general objective of Ethiopia, particularly in the case of Oromia Bank S.C. this study to investigate the
main effects of leadership styles on performance of Oromia bank.
1.4.2 Specific objective

Specifically, the aim of this study will be to:

 To identify the existing leadership style in Oromia Bank of Ethiopia.

 To examine the employees perception towards the existing leadership style of

Oromia bank.
 To examine the relationship between the leadership style and employee
performance.
 To assess the effect of leadership style on employees’ performance.
1.5 Scope of the study
To address the problem under consideration, this research is delimited to the effect of leadership style on
employee performance at Oromia bank s.c. the study focus on the internal function of the organization which
is leadership, and its effect on employees’ performance. To measure the effect of leadership style the research
will implement a regression model, and in order to identify the relationship the research will implement
correlation using primary data. The geographic area in which the study has focused on is the banking industry,
specifically Oromia Bank S.C. and the respondents are all in Addis Ababa Ethiopia. The research would be
conducted on the Ayat area lemi kura branch of the bank where the managerial and operational staff is
combined. This research will be incorporated data for the financial period 2016/17. Of various leadership
styles, the current study will be focused only on four leadership styles: autocratic, democratic,
transformational, and transactional leadership effects on employee performance. Data collection would also be
delimited to closed-ended questionnaire and does not involve qualitative data collection tools

1.6 Significance of the study

This study would be expected to benefit Oromia Bank S.C in identification and developing better leadership

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style that improve the employee work performance. In addition the organization would benefit from this
studies outcome in the planning of future management development system and assuring the improvement of
employee performance by promoting the best leadership style. In other way this study will be helpful for those
interested to know the organization leadership style and its effect on the employee performance. Furthermore,
it help the student and others researchers as spring bond and reference. As noted by Fugate and Kinicki (2012),
“one of the most difficult yet important tasks of management (and HR) has been effective employee
performance”. As such, this study would be of great benefit to HR practices in this area of employee
performance as it is one that can guide on how to effectively undertake this task.

.
1.7. Methodological Limitation of the study
The limitations of this research will be the target population would not return questioner on the time due to the
shortage of time accordingly, all possible remedial actions will be taken to hinder these challenge from being
material and, financial problem.

The researcher will be come up to convincing the employees to participate in the study, fill in and hand in a
completed questionnaire in time, and solve by a proper explanation about the importance of the survey to
employees and the organization, as well as ensuring that the questionnaire is not too long, and is simple to
understand. The researcher will also be endeavored to hand in the tool early enough and make frequent follow-
ups.

1.8. Operational Definitions

The study will investigate the effect of leadership style on employee’s performance. Conceptually and
operationally, the relevant terms of this study will define as follows:
Leadership styles:- a leadership style is the approach used by managers to exercise their leadership
function(Armstrong (2012)).

Leadership:- leadership is an influence relationship among leaders and followers who effective change and
result (Daft (2008)).

Employee performance:- is the successful completion of tasks by a selected individual or individuals, as set
and measured by a supervisor or organization, to pre-defined acceptable standards while efficiently and
effectively utilizing available resource within a changing environment (Mathis & Jackson 2009)..
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Employees- are workers and managers working for a company, organization or community.

1.9. Organization of the Study

The study will be organized in different components or categories and contains five basic chapters as follows:

Chapter one – Introduction part contains background of the study, statement of the problem, basic research
questions and objectives of the study, definition of terms, significance of the study, scope of the study and
limitation of the study. Chapter two – Review of related literature. This chapter dealing with previous studies
and literatures relevant to the study and it will also include theoretical and empirical evidences related to the
study. Chapter three – Research Design and Methodology, this chapter will contain the type and design of the
research study, population and sample size, the sources of the data, the data collection tools or instruments
employed, the procedures of data collection and the methods of data analysis. Chapter four – Data
Presentation and Analysis, this chapter will contain summary the result of finding and also interpretation and
desiccation. Finally, in chapter five, summary, conclusions, and recommendations will also be forwarded
based on the study findings; followed by the list of references used and appendixes.

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 Chapter Two
2. Literature Review
2.1. Theoretical Literature
2.1.1. Concept of Leadership
To realize the leadership in its view and practice, it is important to recognize that the concept of leadership
has changed over time. Daft (2008), states that leadership is an influence relationship among leaders and
followers who effective change and result. Leadership typically reflects the larger society, and theories have
evolved as norms, attitudes, and understandings in the larger world have changed. Sarah Simpson (2012)
defines leadership as the action and leading a group of people or organization having the ability to do this.
Likewise, Marino cited in Sarah (2012) asserts leadership is an art of getting people to do something you
want them to do in their way. Leadership is a critical management skill, encompassing the ability to
encourage a group of people towards common goal. A leader is person who influences, directs, and inspires
others to perform specific tasks for efficient performance towards the accomplishment corporate objectives
(Ojokuku et.al, 2012).

2.1.2. Leadership Styles

Leadership style is viewed as a combination of different characteristics, traits and behaviors that are used by
leaders for interacting with their subordinates (Mitonga-Monga & Coetzee, 2012; Al Khajeh et al., 2018).
Leadership style can be defined as the kind of relationship that is used by an individual so as to make people
work together for a common goal or objective. In the contemporary leadership practice, leadership style can
be categorized as follows: participative, autocratic, transactional, transformational, situational, contingency,
charismatic and servant. To determine the effect of leadership style on employee performance, in Oromia
Bank S.C, this study anchored on four leadership styles: the autocratic, democratic, transactional and
transformational. Leadership style is a way and approach of providing direction, implementing plans, and
motivating people, hence, it is a key determinant of the success or failure of any organization. Sofi cited in
A. A. S Al-Khaled & Chung J Fenn (2020) illustrates that a style of leadership is the method that managers
use to practice their leadership role empower staff to achieve the 7 organization's set of goals. Ben-Bernard
Prince Uchenwamgbe (2013) uttered that leadership style plays a vital role in determining the behavior and
attitude of the fellows of an organization and that is why now days, the study of leadership has drawn more
attention as its role in the failure or success of an organization is crucial. But, researchers have not agreed on

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the most appropriate style of leadership and this led to the formulation of several theories that could bring
about employee performance.

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 2.2 Type Leadership style
2.2.1 Laissez-faire Style
Laissez faire is a French phrase which means “let it be” and it is also known as the “hands off style” (Nwokocha &
Iheriohanma, 2015: p. 194). According to Gill (2014), it means leaving subordinates to complete tasks and jobs in the
way they choose without adherence to any strict policies or procedures. Bass (1985) describes the laissez faire
leadership style as one in which the leader has no belief in his own ability to supervise. He further states that the leader
has no clear set goals towards how they may work, does not help the group in making decisions and so leaves too much
responsibility with subordinates. According to Puni et al. (2014), the laissez-faire leader avoids controlling his
employees and so only relies on the few available employees who are loyal to get a task done.
It is argued that laissez faire leaders do not believe in employee development as they believe that employees can take
care of themselves (Puni et al., 2014). This leadership style cannot be said to be operational in the banking sector or
Non-Governmental Organizations which require that both the leader and subordinates have an input in the decision
making process and completion of tasks to ensure the success of the organization. This is defined as a style of leadership
where leaders refuse to make decisions, are not available when needed, and choose to take no responsibility for their
lack of leadership ability. Laissez-faire leaders do not use their authority and avoid taking actions. It is considered a
passive and ineffective form of leadership. This style favors the installation of a relaxed working atmosphere; it brings
down morale and reduces efficiency of the group. With this type of leadership style, leaders attempt to pass the
responsibility of decision making process to the group. The group is loosely structured as the leader has no confidence
in his leadership ability. A laissez-faire leader may either not intervene in the work affairs of subordinates or may
completely avoid responsibilities as a superior and is unlikely to put in effort to build a relationship with them.

2.2.2 Transactional Style

Transactional leaders focus mainly on the physical and the security needs of subordinates. The relationship
that evolves between the leader and the follower is based on bargaining exchange or reward systems (Bass,
1985; Bass and Avolio, 1993). Transactional leadership “Using a carrot or a stick, transactional leadership
is usually characterized as instrumental in followers‟ goal attainment” (Bass, 1997). There are three
components in transactional leadership – Contingen reward whereby subordinates‟ performance is
associated with contingent rewards or exchange relationship Active Management by exception, whereby
leaders monitor followers‟ performance and take corrective action if deviations occur to ensure outcomes
achieved; Passive Management by exception, whereby leaders fail to intervene until problems become
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serious (Bass, 1997).
The transactional leader is given power to perform certain tasks and reward or punish for a team’s
performance. It gives the opportunity to the manager to lead the group and the group agrees to follow his
lead to accomplish a predetermined goal in exchange for something else. Power is given to the leader to
evaluate, correct and train subordinates when productivity is not up to the desired level and reward
effectiveness when expected outcome is reached (Burns, 1978).
Transactional Leadership is consisted of contingent reward, active management by exception, and passive
management by exception. Contingent reward leadership may put forth a result of developmental plan, may
explain why they desire to success, when they get the results, they will reward them for good performance
(Sosik and Godshalk, 2000). Employ fulfill these requirements are explained explicitly (Pillai et.al, 1999).
Transactional leaders choose the way of leading effective ongoing process. Leaders, who adopt this
approach, especially reward employees with money, status and promotion while they pay less attention to
creative and innovative acts (Eren, 2010)

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 2.2.3 Transformational Leadership Style

Transformational leadership was developed by (Bass in 1985 )on account of stating behavior and
characteristic to provide organizational change and stability while transformational leadership is comprised
of idealized influence, individual consideration, intellectual stimulation, and inspirational motivation (Bass,
1990). Transformational leaders try to persuade followers that they are powerful enough to coping with
individual needs and personal developments, which turn out to establish close relationship with employees.
Leaders pay feel more special, motivated and encouraged. By this way, there is an enhancing effect on the
success of the employees (Greenber& Baron, 2000).Transformational leadership is also explained for
displaying higher to come to terms with team mission and goals and also the continuity of this process.
Leaders encourage employees to see beyond what they already have (Bass, 1990).
The transformation leader motivates its team to be effective and efficient. Communication is the base for
goal achievement focusing the group in the final desired outcome or goal attainment. This leader is highly
visible and uses chain of command to get the job done. Transformational leaders focus on the big picture,
needing to be surrounded by people who take care of the details. The leader is always looking for ideas that
move the organization to reach the company’s vision (Burns, 1978). This type of leader sets the criteria for
their workers according to previously defined requirements. Performance reviews are the most common way
to judge employee performance. Transactional, or managerial, leaders work best with employees who know
their jobs and are motivated by the reward-penalty system. The status quo of an organization is maintained
through transactional leadership. (James Mac Gregor Burns 1978) first introduced the concept of
transforming leadership in his descriptive research on political leaders, but this term is now used in
organizational psychology as well. According to Burns, transforming leadership is a process in which
"leaders and followers help each other to advance to a higher level of morale and motivation". Burns related
to the difficulty in differentiation between management and leadership and claimed that the differences are
in characteristics and behaviors. He established two concepts: "transforming leadership" and "transactional
leadership". According to Burns, the transforming approach creates significant change in the life of people
and organizations. It redesigns perceptions and values, and changes expectations and aspirations of
employees. Unlike in the transactional approach, it is not based on a "give and take" relationship, but on the
leader's personality, traits and ability to make a change through example, articulation of an energizing vision
and challenging goals. Transforming leaders are idealized in the sense that they are a moral exemplar of

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working towards the benefit of the team, organization and/or community. Burns theorized that transforming
and transactional leadership was mutually exclusive styles. Transactional leaders usually do not strive for
cultural change in the organization but they work in the existing culture while transformational leaders can
try to change organizational culture.
2.2.4 Autocratic Leadership Style
Autocratic leaders have absolute power over their people. Staff and team members have little opportunity to make
suggestions. It is the traditional command and control paradigm that discourages participative decision making,
preferring that decisions be made by the leader for the subordinates (Marshal, 2001). This leader determines
prescribed policies, procedure, rules and goal. Therefore, the existing leadership literatures in a business world suggest
that autocratic leadership is useful in some context and should be avoided in others. According to Cavanaugh and
Ninemeire (2001) Autocratic leader can increase employee performance when he/ she are present. Such leadership
style can also increase employee performance relatively on tasks. However, these are a general argument related to
bank industry leader and their practice of autocratic leadership style. In connection to this public leader to be effective
in achieving organizational objectives along with employee better welfare and high standard of motivation there is a
need to identify when to use not to use this approaches for better performance.

2.3 Leadership Theories

2.3.1 Great-Man Theory

The effort toward explorations for common traits of leadership is protracted over centuries as most cultures
need heroes to define their successes and to justify their failures. In (1847, Thomas Carlyle) stated in the
best interests of the heroes “universal history, the history of what man has accomplished in this world, is at
the bottom of the history of the great men who have worked here”. Carlyle claimed in his “great man
theory” that leaders are born and that only those men who are endowed with heroic potentials could ever
become the leaders. He opined great men were born, not made. An American philosopher, Sidney Hook,
further expanded Carlyle perspective highlighting the impact which could be made by the eventful man vs.
the event-making man (Dobbins &Platz, 1986).
He proposed that the eventful man remained complex in a historic situation, but did not really determine its
course. On the other hand, he maintained that the actions of the event-making man influenced the Course of
events, which could have been much different, had he not been involved in the process. The event making
man’s role based on “the consequences of outstanding capacities of intelligence will and character rather
than the actions of distinction”. However, subsequent events unfolded that this concept of leadership was

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morally flawed, as was the case with Hitler, Napoleon, and the like, thereby challenging the credibility of
the Great Man theory. These great men became irrelevant and consequently growth of the organizations,
stifled (MacGregor, 2003). “The passing years have given the coup de grace to another force the great man
who with Brilliance and farsightedness could preside with dictatorial powers as the head of a growing
organization but in the process retarded democratization”. Leadership theory then progressed from dogma
that leaders are born or are destined by nature to be in their role at a particular time to a reflection of certain
traits that envisage a potential for leadership.

2.3.2 Trait Theory

The early theorists opined that born leaders were endowed with certain physical traits and personality
characteristics, which distinguished them from non-leaders. Trait theories ignored the assumptions about
whether leadership traits were genetic or acquired. Jenkins identified two traits; emergent traits (those which
are heavily dependent upon heredity) as height, intelligence, attractiveness, and self-confidence and
effectiveness traits (based on experience or learning), including charisma, as fundamental component of
leadership (Ekvall&Arvonen, 1991).
Max Weber termed charisma as “the greatest revolutionary force, capable of producing a completely new
orientation through followers and complete personal devotion to leaders they perceived as endowed with
almost magical supernatural, superhuman qualities and powers “This initial focus on intellectual, physical
and personality traits that distinguished non-leaders from leaders portended a research that maintained that
only Min or variances exist between followers and leaders (Burns, 2003). The failure in detecting the traits,
which every single effective leader had in common, resulted in development of trait theory, as an
inaccessible component, falling into disfavor. In the late 1940s, scholars studied the traits of military and
non-military leaders respectively and exposed the significance of certain traits developing at certain times.

2.3.3 Contingency Theories (Situational)

The theories of contingency recommend that no leadership style is precise as a stand-alone as the leadership
style used is reliant upon the factors such as the quality, situation of the followers or a number of other
variables. “According to this theory, there is no single right way to lead because the internal and external
dimensions of the environment require the leader to adapt to that particular situation”. In most cases, leaders
do not change only the dynamics and environment, employees within the organization change. In a common
sense, the theories of contingency are a category of behavioral theory that challenges that there is no one
finest way of Leading/organizing and that the style of leadership that is operative in some circumstances
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may not be effective in others (Greenleaf, 1977).
Contingency theorists assumed that the leader was the focus of leader-subordinate relationship; situational
theorists opined that the subordinates played a pivotal role in defining the relationship. However, the
situational leadership stays to emphasis mostly upon the leader; it creates the significance of the focus into
group dynamic. These studies of the relationships between groups and their leaders have led to some of our
modern theories of group dynamics and leadership”. The theory of situational leadership proposes that style
of leadership should be accorded with the maturity of the subordinates (Bass, 1997). “The situational
leadership model, first introduced in 1969, theorized that there was no unsurpassed way to lead and those
leaders, to be effective, must be able to adapt to the situation and transform their leadership style between
task-oriented and relationship oriented.

2.3.4 Style and Behavior Theory

The style theory acknowledges the significance of certain necessary leadership skills that serve as enabler
for a leader who performs an act while drawing its parallel with previous capacity of the leader, prior to that
particular act while suggesting that each individual has a distinct style of leadership with which he/she feels
most contented. Like one that does not fit all heads, similarly one style cannot be effective in all situations
(Yukl1989) introduced three different leadership styles, The employees serving with democratic leaders
displayed high degree of satisfaction, creativity, and motivation; working with great enthusiasm and energy
irrespective of the presence or absence of the leader; maintaining better connections with the leader, in
terms of productivity Whereas, autocratic leaders mainly focused on greater quantity of output. Laissez faire
leadership was only considered relevant while leading a team of highly skilled and motivated people who
excellent track-record, in the past. (Feidler& House 1994) identified two additional leadership styles
focusing effectiveness of the leadership. These researchers opined that consideration (concern for people
and relationship behaviors) and commencing structure (concern for production and task behaviors) were
very vital variables.
The consideration is referred to the amount of confidence and rapport, a leader engenders in his
subordinates. Whereas, initiating structure, on the other hand, reflects the extent, to which the leader
structures, directs and defines his/her own and the subordinates‟ roles as they have the participatory role
toward organizational performance, profit and accomplishment of the mission. Different researchers
proposed that three types of leaders, they were; autocratic, democratic and laissez-faire. Without involving
subordinates, the autocratic leader makes decisions, laissez-faire leader lets subordinates make the decision
and hence takes no real leadership role other than assuming the position and the democratic leader accesses
15 | P a g e
his subordinates then takes his decision. “He further assumed that all leaders could fit into one of these three
categories”.

2.3.5 Transactional Theory

The leadership theories, by the late 1970s and early 1980s, activated to diverge from the specific
perspectives of the leader, leadership context and the follower and toward practices that concentrated
further on the exchanges between the followers and leaders. The transactional leadership was
described as that in which leader-follower associations were grounded upon a series of agreements between
followers and leaders (House & Shamir, 1993).
The transactional theory was “based on reciprocity where leaders not only influence followers but are under
their influence as well”. Some studies revealed that transactional leadership show a discrepancy with regard
to the level of leaders‟ action and the nature of the relations with the followers.
Bass and (Avolio1994) observed transactional leadership “as a type of contingent-reward leadership that had
active and positive exchange between leaders and followers whereby followers were rewarded or recognized
for accomplishing agreed upon objectives “From the leader, these rewards might implicate gratitude for
merit increases, bonuses and work achievement. For good work, positive support could be exchanged, merit
pay for promotions, increased performance and cooperation for collegiality. The leaders could instead focus
on errors, avoid responses and delay decisions. This attitude is stated as the “management-by-exception”
and could be categorized as passive or active transactions. The difference between these two types of
transactions is predicated on the timing of the leaders‟ involvement. In the active form, the leader
continuously monitors performance and attempts to intervene proactively (Avolio& Bass, 1997).

2.3.6. Transformational Theory

Transformational leadership distinguishes itself from the rest of the previous and contemporary theories,
based on its position to a greater good as it entails involvement of the followers in processes or activities
related to personal factor towards the organization and a course that will yield certain superior social
dividend. The transformational leaders raise the motivation and morality of both the follower and the leader
(House & Shamir, 1993). It is considered that the transformational leaders “engage in interactions with
followers based on common values, beliefs and goals”. This affects the performance leading to the
attainment of goal. As per Bass, transformational leader, “attempts to induce followers to reorder their needs
by transcending self- interests and strive for higher order needs". This theory conform the (Maslow 1954)

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higher order needs theory transformational leadership is a course that changes and approach targets on
beliefs, values and attitudes that enlighten leaders‟ practices and the capacity to lead change.

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The literature suggests that followers and leaders set aside personal interests for the benefit of the group the
leader is then asked to focus on followers’ needs and input in order to transform everyone into a leader by
empowering and motivating them (House &Aditya, 1997). Emphasis from the previously defined leadership
theories, the ethical extents of leadership further differentiates the transformational leadership. The
transformational leaders are considered by their capability to identify the need for change, gain the
agreement and commitment of others, create a vision that guides change and embed the change (MacGregor
Bums, 2003). These types of leaders treat subordinates individually and pursue to develop their
consciousness, morals and skills by providing significance to their work and challenge. These leaders
produce an appearance of convincing and encouraged vision of the future. They are “visionary leaders who
seek to appeal to their followers‟ better nature and move them toward higher and more universal needs this
approach views leadership Effectiveness as dependent upon a match between leadership style and the
situation. It also focuses on the degree to which the situation gives control and influence to the leaders. The
primary thrust was that the qualities of leaders differentiate in various situations and so were those qualities
were perhaps appropriate to a particular task and interpersonal context.
Early on, leadership definitions had the tendency to view the leader as the center or the focus of a group
activity. The leader restructures the problems, offers solutions to the problems, establishes priorities and
initiates developmental operations (Bass B, 1990). Leadership was associated with strength of personality
(Bass 1990; Bowden, 1926). A leader was seen as a person with many popular traits of personality and
character (Bass, 1990; Bingham, 1927). The current descriptions of leadership no longer regard only
individual characteristics or differences (Avolio 2007; Yukl 2006).In (Bass’s 1998) current definition,
leadership is an interaction between one or more members of a group. In another more recent definition,
leadership is a relationship between leaders and followers where they influence each other and they intend
real changes and outcomes that reflect their shared purposes (Daft, 2005).
According to (Northouse2007) leadership as a process means that, as mentioned earlier, it is not a
characteristic someone is born with, it is an interaction between leaders and their 9 followers.

18 | P a g e
The leaders influence and are influenced by their followers Leadership is available to everyone; it is not
limited to the person in power (Northouse, 2007).
“Leadership is a process whereby an individual influences a group of individuals to achieve common goals
(Northouse, 2007). Leadership style is the combination of attitude and behavior of a leader, which leads to
certain patterns in dealing with the followers (Dubrin 2004). It is the result of the philosophy, personality
and experience of the leader. There are several leadership styles such as: autocratic, bureaucratic,
charismatic, democratic, participative, situational, transformational, and transactional and laissez faire
leadership (Mosadeghrad, 2003a). Leadership style has been the deciding factor of more than one facet of
employee behavior in organizations.
One of the most prominent formats for classifying and studying leadership includes three styles –
transformational, transactional and laissez-faire leadership. The present study uses charismatic leadership
approach to identify the leadership style of public managers. In this approach, leadership is conceptualized
by the behavioral areas from laissez-faire style (non-leadership), through transactional leadership (which
hinges on reward system and punishments), to transformational leadership (which is based on inspiration
and behavioral charisma) (Bass and Avolio, 1993).

2.3.7 Effect of leadership style on employees performance on banking industry

The banking sector is a fundamental component of economy in almost any given society (Belias & Kustelios
2014). Leadership teams at financial institutions seem to not have the courage and/or capacity to embrace
change - and it is up to strong leaders to both allow and push their employees to be creative and innovative.
Customer behaviour, technology and competition are rapidly evolving, on-going and simultaneously;
therefore, bank leaders must be ready for challenges as well. Banks, similarly to any other industries, should
start viewing change as a norm rather than an exception. (Pilcher 2015)
Chris Skinner (2015), one of the most influential people in financial industry the present moment, agrees
that banks ignore the need for innovation and change, and focus too strongly on status and shareholder
value. Skinner appeals to lead-ers in the bank industry to “give people the culture to create innovation”.
Brand Finance, business valuation and strategy consultancy that annually holds a Banking Forum - event,
focused one of their event mainly on leadership in bank-ing (2013). Forum discussed how leadership can
valued and measured, the need that exists for strong leadership in banking, and why

19 | P a g e
it is so critical. Don Wood-land (2012) discusses five leadership qualities required for being a successful
leader in the banking industry in the modern world; 1) vision, 2) authentic leader-ship and values, 3) ability
to adopt to change, 4) networking and communicating, 5) preparation and risk management.
Evidently, the need for change and innovative mind-set is recognized widely within the bank industry. Some
researchers (Belias & Koustelios 2014) argue that transformational leadership is the appropriate and most
effective model, due to having positive influence on employee performance and job commitment Belias &
Koustelios (2014) do not only review the need for change, but also rec-ognize that banks and credit
institutions are already adapting innovative mind-set by transitioning from strict traditional and hierarchical
structure to a more flexible and communicative one.
2.4 Empirical Literature

Many researchers have studied leadership style from different prospective and in different Social political
and economic environment. The following ones are very match related and useful for this study: In (Bass’s
1998) current definition, leadership is an interaction between one or more members of a group. In another
more recent definition, leadership is a relationship between leaders and followers where they influence each
other and they intend real changes and outcomes that reflect their shared purposes (Daft, 2005). It means
that situations, contexts, culture, working environment, new laws and regulations, information overload,
organizational complexities and psycho-socio developments remarkably impact the leadership concept
thereby, making it commensurate to the changing organizational dynamics (Amabile, Schatzel, Moneta &
Kramer, 2004)The effect of leadership style on corporate profitability has been studied considerably by
different researchers(Nicholls, 1988; Simms, 1997). Assuming “the essence of leadership is influence”,
leadership could broadly be defined as “the art of mobilizing others to want to struggle for shared
aspirations” (Kouzes& Posner, 1995).Transformational leaders encourage subordinates to put in extra effort
and to go beyond what they (subordinates) expected before (Burns, 1978).
As the performance of an organization is dependent on the quality of the workforce at all levels of the
organization (Temple, 2002), it is essential to discuss the concept of individual performance. (Millcorvich
and Bondream1997) define employee performance as the degree to which employees accomplish work
requirements.

20 | P a g e
To them employee performance in effect reflects the efficiency of the organization. People are an
organization's greatest assets: individuals and organizations have learned about the importance of the role of
people in an organization, and how the success of an organization depends on its people (Bartlett and
Ghoshal, 1995). The role of human resources is critical in raising performance in an organization
(Armstrong and Baron, 1998).Ultimately it is the performance of many individuals, which culminates in the
performance of an organization, or the achievement of goals in an organizational context (Armstrong and
Baron, 1998). (Amos, et al. 2004) states, “The effective management of individual performance is critical to
the execution of strategy and the organization achieving its strategic objectives”. Performance cannot be left
in anticipation that it will develop naturally, despite the employee's natural desire to perform and be
rewarded for it. This desire needs to be accommodated, facilitated and cultivated (Amos, et al. 2004). In
return for this performance, organizations extend themselves in various forms of acknowledgement (Foot
and Hook, 1999).
Individual performance has become a topical issue in today's business environment, so much so that
organizations go to great lengths to appraise and manage it (Armstrong and Baron, 1998). (Whetten and
Cameron (1998), state that individual performance is the product of ability multiplied by motivation.
(Furthermore, Cummings and Schwab 1973) concur with the belief that performance is ultimately an
individual phenomenon with environmental factors influencing performance, primarily through their effect
on the factors are those factors over which the organization has little or no control, such as demands for job
grading systems (Hellriegel, et al., 1999).
As the performance of an organization is dependent on the quality of the workforce at all levels of the
organization (Temple, 2002), it is essential to discuss the concept of individual performance. (Millcorvich
and Bondream1997) define employee performance as the degree to which employees accomplish work
requirements. To them employee performance in effect reflects the efficiency of the organization. People are
an organization's greatest assets: individuals and organizations have learned about the importance of the role
of people in an organization, and how the success of an organization depends on its people (Bartlett and
Ghoshal, 1995). The role of human resources is critical in raising performance in an organization
(Armstrong and Baron, 1998).Ultimately it is the performance of many individuals, which culminates in the
performance of an organization, or the achievement of goals in an organizational context (Armstrong and
Baron, 1998). (Amos, et al. 2004) states, “The effective management of individual performance is critical
to the execution of

21 | P a g e
strategy and the organization achieving its strategic objectives”. Performance cannot be left in anticipation
that it will develop naturally, despite the employee's natural desire to perform and be rewarded for it.
This desire needs to be accommodated, facilitated and cultivated (Amos, et al.2004). In return for this
performance, organizations extend themselves in various forms of acknowledgement (Foot and Hook,
1999). Individual performance has become a topical issue in today's business environment, so much so that
organizations go to great lengths to appraise and manage it (Armstrong and Baron, 1998). (Whetten and
Cameron 1998), state that individual performance is the product of ability multiplied by motivation.
Furthermore, (Cummings and Schwab 1973) concur with the belief that performance is ultimately an
individual phenomenon with environmental factors influencing performance, primarily through their effect
on the factors are those factors over which the organization has little or no control, such as demands for job
grading systems (Hellriegel, et al., 1999). The leader's ability to lead is contingent upon various situational
factors, including the leader's preferred style. Contingency theories to leadership support a great deal of
empirical freedom to leadership, (laissez-faire style) (North house 2001).
The success of an organization is reliant on the leader's ability to optimize human resources a good leader
understands the importance of employees in achieving the goals of the organization, and that motivating
these employees is of paramount importance in achieving these goals. To have an effective organization the
people within the organization need to be inspired to invest himself or herself in the organization's mission-
the employees need to be stimulated so that they can be effective; hence, effective organizations require
effective leadership (Wall, Solum and Sobol, et al, 1996). (Fiedler and House,1988) indicate that
organizational performance will suffer in direct proportion to the neglect of this. Ultimately, it is the
individual employee who either performs, or fails to perform, a task.

In order for an organization to perform, an individual must set aside his personal goals, at least in part, to
strive for the collective goals of the organization (Cummings and Schwab, 1973). In an Organizational
context, the very nature of performance is defined by the organization itself (Cummings and Schwab, 1973).
Employees are of paramount importance to the achievement of any organization.

22 | P a g e
 Thus, effective leadership enables greater participation of the entire workforce, and can influence both
individual and organizational performance (Bass, 1997; Mullins, 1999).Effective leader behaviour facilitates
the attainment of the follower's desires, which then results in effective performance (Fiedler and House,
1988; Maritz, 1995; Ristow, et al., 1999). Preliminary research undertaken by (Booysen and Van Wyk
(1994, in Swanepoel, et al., 2000) effectiveness, are perceived to show a strong and direct, but democratic
and participative leadership style, and are seen as agents of change and visionaries who increase
organizational performance. (Maccoby1979), in Botha, 2001) indicates that the need of firms to flourish in
the world of escalating competitiveness, of technological advances, of altering government regulations and
of changing employee attitudes, requires an advanced level of leadership more than ever before. His views
further demonstrate the importance of leadership in the business arena. According to (Bass 1997), in the
modern business environment, much research has proved that leaders make a difference in their
subordinate’s performance, and make a difference as to whether their organizations succeed or fail.
(Kotter1988) argues for the ever-increasing importance of leadership in organizations, because of significant
shifts in the business environments, such as the change in competitive intensity and the need for more
participation of the total workforce. Leadership is perhaps the most thoroughly investigated organizational
variable that has a potential impact on employee performance (Cummings and Schwab, 1973). Winning
leaders understand what motivates employees and how the employee's strengths and weaknesses influence
their decisions, actions, and relationships. (Cummings and Schwab 1973) mention the connection between
leadership traits or leadership behaviours and employee performance. However, they stress that the literature
was not based on empirical evidence and therefore has become discredited over time (Cummings and
Schwab, 1973; Fiedler and House, 1988). There is agreement in the literature (Maritz, 1995; Bass, 1997)
that leadership is a critical factor in the success or failure of an organization; excellent organizations begin
with excellent leadership, and successful organizations therefore reflect their leadership. Leaders are
effective when the influence they exert over their subordinates works towards achieving organizational
performance (Jones and George, 2000) Furthermore, leadership is often regarded as the single most critical
success factor in the success or failure of an institution (Bass, 1990). (Dimma1989) believes that leadership
is undoubtedly the critical determinant of the success of an organization, and thus determines organizational

23 | P a g e
Research into organizational behaviour in different environments found that transformational Leadership has
a positive influence on employee performance, and therefore organizational Performance (Bass and Avolio,
1994; Ristow, 1998). However, through research by (Pruijn and Boucher 1994) it was shown that
transformational leadership is an extension of transactional leadership (Bass, 1997).The difference
between these two models is that followers of transformational leadership exhibit performance
which is beyond expectations, while transactional leadership, at best, leads to expected performance (Bass
and Avolio, 1994). Ristow1998) states that transactional leaders were effective in markets, which were
continually growing, and where there was little or no competition, but this is not the case in the markets of
today, where competition is fierce and resources are scarce. Research data (Brand, et al., 2000) has
clearly shown that transformational leaders are more effective than transactional leaders,
regardless of how “effectiveness” has been defined.

2.5 Conceptual Framework

The study has independent variable and dependent variables. The leadership behavior plays an
independent role and leader’s commitment and organizational performance as dependent variables.
Figure 1 Conceptual Framework Source: - adopted from Pissarides (2020), Geiger, 2018)
Independent variable

Leadership styles
Dependent variable

 Laissez-faire Style Employee’s performance

 Transformational style

 Transactional Leadership style

 Autocratic leadership style

24 | P a g e
 CHAPTER THREE
3. Research Methodology
3.1 Study Area
The area of the study is the Oromia Bank S C .The company has about 39 branches but for the research
paper will focus on the Ayat area lemi Kura breach of the bank. The data will be gathered from the
internal environment of the company, no external environment will be assessed for data gathering.

3.2. Research Design

The major purpose of descriptive research is to describe a certain phenomenon; the descriptive research
design describes the characteristics of objects people or organization (Zikimund, Babin, Carr & Griffin,
and 2012:15). This kind of design aims at generating information after the incident has occurred. The
research design will look at the reasons why the situation behaves the way it does and also what the
weakness and strengths are. Due to this, the researcher will adopt descriptive research design with 5 Point
Likert scale and a cross sectional study.

3.3. Research Approach

Research approaches are plans and procedures for research that span the steps from broad assumptions to
detailed methods of data collection, analysis, and interpretation (Creswell, 2014). It informs the
philosophical assumptions the researcher brings to the study; procedures of inquiry; and specific research
methods of data collection, analysis, and interpretation. In researches, quantitative, qualitative, or mixed
methods approach can be applied to study a topic. Mixed research approach is used to examine the
relationship between variables and test theory.

The main emphasis of quantitative research is on deductive reasoning, which tends to move from the
general to the specific. It is proved to be suitable for the researches that will use structured questioners to
collect data, depend on small sample size and results would be presented and analyzed using statistical
methods. It places greater emphasis on the numerical data and statistical test to achieve conclusion that
can be generalized (Saunders, 2012).

The primary quantitative data will be obtained from questionnaires related with the effect of leadership
styles on employee performance in oromia bank s.c would be presented in tables and line graphs and also,
it would be analyzed using descriptive and inferential statistics. The researcher will use both research
approaches (qualitative and quantitative) to effect of leadership styles on employee performance in oromia
bank s.c.

3.4. Population and Sampling Design

3.4.1. Target Population
A population is defined as the elements of which some study or inferences will be made (Cooper and
Schindler,2014). The target population of the study is employees of Oromia Bank S.C. The study
population will include respondents from Human Resource, Finance and management and also branch
operation section of the branch.

3.4.2. Sampling Design

Sampling refers to “any procedure that draws conclusions based on measurements of a portion of the
population” (Zikmund, Babin, Carr, and Griffin, 2010, p. 658). Sampling can also be defined as the
process by which part of a population would be selected and conclusions from the population are drawn
about the entire population (Cooper and Schindler, 2014). So for this study the researcher will take simple
random sampling design.

25 | P a g e
 3.4.2.1 Sample Size

To determine the sample size and representative of the target population, the study uses statistical
instrument formula.
As of Yemane (1967), a research with high population size needs to use the formula
N
n= 2
1+ N ( e )
Where: n= Sample size
N= Population size
e= Precession rate

552
n= 2 = 1-n = 1-95%= 0.05
1+552 ( 0.05 )

n= 232 N= 552

Then, 232 sample populations will be taken from 552 of the total population with 95% confidence level.

3.4.2.2 Sampling Technique

The local area of the survey is to assess the relationship of leadership styles with employees’ Performance
in Oromia bank S. C which fist describing each variable and dimension regarding to leadership style
on employees performance

26 | P a g e
The various documents of Oromia bank indicate that performance varies from branch to branch despite the
fact that the branches of Oromia bank operate in a similar manner with respect to policies and practices. To
get valid representative of the targeted population, the survey utilized stratified random sampling technique.
3.5. Sources and methods of Data Collection Method
3.5.1 Data Sources
Primary sources of data are main sources of data to use in this study. The study will use questionnaire and
interview guide. Primary data obtained through questionnaires and interview
The studying group used primary data sources that help to have more detailed information on the topic. The
primary data collected through interview and group discussions conducted on the human resources managers
and internal employees of the bank to whom this responsibility is directly given. The interview session will
held on the human resources department director and three division heads of the departments’ sections, and
some internal employees And the group discussion will be conducted with the authorized staffs who are
engaged in managing the status of leadership style of the bank.

27 | P a g e
3.5.2 Instrument Variables and Measurement
This proposal paper conducted to analyze the effect of the independent variable, leadership
style on dependent variable, which is employee performance, using regression analysis. And
it will calculate the correlation of these factors for identifying their relationship. Using
descriptive type of analysis study used a mean and standard deviation is calculated.

3.6. Ethical Considerations

Research, as a scientific process and activity, has get its own basic ethical conducts that
shouldn’t be compromising at all levels. For instance, any source that is quoting and use as
essential part of the study was cited. That means, acknowledging the authors of books and
articles is necessary. Moreover, the data would be gathered from the appropriate and relevant
sources. Therefore, with respect to the future study, the researcher will respect and comply
with existing ethical principles to make the research credible and acceptable by the academic
communities and users of the result. The confidentiality of participants’ (managers, union
leaders and employees) will be maintained in that their names; addresses, signature and their
roles in company not appeared and filled in the questionnaire. In addition, respondents will
fully be volunteered to participate in the study and their rights/privacy would be respected.
The researcher will present the findings of the study without any distortion of the reality.

28 | P a g e
 4. Work and Budget Plan
4.1 Work Plan
This study will be completed in one semester as described in the following table.

S Activities Duration in
. months
N f m m J
o e a A a u
b r p y n
c r e
h i
l
1 Preparing the proposal 

2 Searching articles for the literature 

3 Completion the first draft of proposal 

4 Accepting comments and improving 

the proposal

5 Developing questionnaire 

6 Accepting the comments for my 

questionnaire and improving
accordingly
7 Distributing questionnaire 

8 Collecting the data 

9 Research report writing 

29 | P a g e
1 Submission of draft report 
0
1 Submission final report 
1
1 Presentation of the final paper 
2
Table 1 Action Plan

4.2 Budget Plan

The study will requires the following costs to undertake the study as described in the
table below.

S Items Unit Unit Qu Total

. of cost ant cost in
N mea ity birr
o sure

Stationary Piec 400

materials es/
pack
s
Internet Per 1 birr 200
min
ute
Secretarial Per 5 birr 250
service page
Binding 50
Laminatin 50
g
Fee for Per 5/ 2000
data day quest
collectors ionna
ire

30 | P a g e
 total 2950
Table 2 Budget Plan

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