ASSESSMENT OF THE ROLE OF LEADERSHIP ON ORGANIZATIONAL

PERFORMANCE (IN CASE OF ETHIO TELECOME IN FITCHE

BRANCH)

A SENIOR RESEARCH PAPER SUBMITTED TO DEPARTMENT OF

MANAGEMENT IN PARTIAL FULLFILLMENT OF THE REQUIREMENT
FOR THE ART (BA) DEGREE IN MANAGEMENT

SALALE UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS

DEPARETEMENT OF MANAGEMENT

BY; TEMESGEN WULETAW

ID NO. BER/1397/10

ADVISOR: THOMAS HAILE (Asst-Professor)

DECEMBER, 2020

FITCHE, ETHIOPIA
Acknowledgment

First and most the researcher would like to thank, praise and glory to the almighty God. This
is the learning process will not possible without him to over all activities of my study.

Secondly, I would like to express my deepest gratitude and appreciation to my

respected advisor instructor Mr. Thomas(asst-professor), for his valuable suggestion,
advice and constructive criticism.

Thirdly, the researcher would like to thanks all permanent employee of Ethio Telecom
supplying of all the necessary information and I would like to thank my family and friends for
their morals, material support and idea generation. in this study more of the respondents
stated that leadership have great contribution of the organization performance.
i
Abstract

This research would conduct to assess the role of leadership on organizational performance in case
of Ethio telecom of Fitche branch. The researcher would be used descriptive research to conduct
this research paper and also the researcher would used census survey because of small number of
employees in the organization. The study would used both primary and secondary source of data.
Primary data was collected by both open ended and close ended questionnaires from the
employees of the organization and interview which are arranged and structured in a logical
sequence. Whereas secondary data source was gathered from the organizational documents. The
collected data was processed, analyzed and interpreted by using table and percentage. leadership
can affect the performance of the organization in different ways.it is an important and effective for
managing, achieving, motivating, administering and controlling of the overall activities of the
organization. Based on the analysis made most employees rate in the role of leadership on
improving organizational performance is high. Finally, the organization should provide different
training for the employees of the organization in order to create awareness about the essence of
team work, to improve the performance of employees in the organization, to develop good
relationship and communication between employees and leaders.
ii
Contents

Acknowledgment………………………………………………………………………………….i

Abstract……………………………………………………………………...…………………….ii

CHAPTER ONE 1X

1. INTRODUCTION 1X

1.1 Background of the study 1X

1.2 Statement of the problem 2X

1.3 Research questions 3X

1.4 Research objectives 3X

1.4.1General objective 3X

1.4.2 Specific objectives 4X

1.5. Significance of the study 4X

1.6 limitation of the study……………………..…………………………………………………5

1.7 scope of the study 4X

 1.8 Ethical Consideration 5X

1.9 organization of the paper 5X

CHAPTER TWO 6X

2. REVIEW OF RELATED LITERATURE 6X

2.1 INTRODUCTION 6X

2. 2 Definition of Leadership 6X

2.3 Gender differences in leadership 6X

2.4 Leadership and management 7X

2.5 How leadership affects behavior, human relation and performance 7X

2.6 Diversity and global leader 7X

iii
2.7 Leadership skills 8X

2.8 Relationships between leadership, power and authority 8X

2.9 Role of Leadership on organizational performance 9X

2.10 Some Behaviors of an effective leader 9X

2.11 Approaches of leadership 10X

2.12 Leadership style 11X

CHAPTER THREE 12X

3. RESEARCH METHOD AND METHODOLOGY 12X

3.1 Description of the study area 12X

3.2 Research Design 12X

3.3 Type and Source of Data 12X

3.4 Target population 12X

3.5 Sampling Techniques 13X

3.6 Method of Data Collection 13X

3.7 Data processing and analysis 13X

CHAPTER FOUR 14X

4. Data analysis and interpretation 14X

CHAPTER FIVE 28X

5. Summaries of finding, conclusions and recommendations 28X

5.1 summary of finding 28X

5.2 conclusions 28X

5.3 Recommendation 29X

Reference 31

APPENDEX 33

iv
List of tables

Table 4.1 Demographical characteristics of the respondents------------------------------------------14

Table 4.2 Leader Contribution for Organizational Performance--------------------------------------16

Table 4.3 Role of Leadership on Improving Organizational Performance--------------------------17

Table 4.4 Analysis of Respondents which are related with type of Leadership style--------------18

Table 4.5 Analysis of Respondents that are related with how the Organization Leader interacts

with their Followers-----------------------------------------------------------------------------------------20

Table 4.6 Analysis of Respondent’sanswers that are related with alternative Method to improve

the Performance of Employees-----------------------------------------------------------------------------23

Table 4.7 Description of Problems related to Leadership style in the Organization---------------25

Table 4.8 Description of the Organization Motivate Employee to their Job Properly-------------26
v
CHAPTER ONE

INTRODUCTION

Background of the study

Leadership has been a topic of interest since the dawn of man Leadership management
Studies were taken up in earnest in the early twenty centuries. This hub chronicles of
evaluation in Leadership behavior studies from the traits of effective Leaders to follower
centered Leadership theories proposed in the late twenty centuries early twenty-one
country (M.C. Shane L.C and Vongionow M.A 1994).

Leadership style is the relative consistent pattern of behavior that characterizes a leader.
Leader styles encompass how they related to other within and outside the organization. The
style of an organization leadership is reflected in both the nature of that organization and its
relationship with the community (Riaz, A M.H and Haider 2010).

Different types of leadership style exist in work environments. Advantages and

disadvantages exist in each leadership style. The culture and goals of an organization
determine which leadership style fits the firm best. Some companies offer several
leadership styles within the organization such is no and he laissez-faire, autocratic,
participative or democratic, transactional and transformational (Saleem, H 2015).

A laissez fair or free rain or delegative leader is lacks of direct supervision of employees and
fails to provide regular feedback to those under his supervision known as no leadership at
all or laissez fair leader delegates all responsibility for decisions alone without the input of
others managers possess total authority and impose their will on employees and it is task
oriented and depend on one-way communication downward only (North house Pg. 2004).

Participative or Democratic leadership style often person centered. This leadership style involves the
values the input of team members including one or more group members determining what to do
and to do it. The leader maintains the final decision-making authority (Vance, D.L., 2016).
1
Transactional leadership style managers using the transactional leadership style receive certain
tasks to perform and provide rewards or punishments to team members based on performance
results. Transformational leadership style depends on high levels of communication for
management to meet goals. Leader motivate employees and enhance productivity and efficiency
through communication and high visibility (Rain A and M.H Haider 2010).

The most fundamental role of leader is to define the organizational goal formulates plans
and organizes to achieve the goals through the execution of plans. Leadership is a
complex concept that is defined as the ability to influence motivates and enable others to
the effectiveness and success of the organizations of which they are members. They
exist throughout the organization just only in the executive site (Steven, 2005).

The leadership of an organization is an ability of management to get and protect the

company targets and bringing them together to work in a better environment to achieve
the common goals. There are four main generation of leadership theories include Trait
theory, Behavioral theory, and contingency theory and Transformation theory.
Leadership is a social process in which leader seeks the voluntary participation of
subordinates in an effort to reach organizational goals (lassies, 2005).

1.2 Statement of the problem

Leadership and its role are the most concerning issue for the business and organization now
days. The leaders are individuals who establish direction for a working group of individuals
and who gain commitment from this group of members to established direction and who then
motivate members to achievements the direction outcome (conger, 2001).

The term leadership can be viewed through multiple angles and concepts. Traditionally
leadership is a set of features owned by the leader or it is a social phenomenon that
comes from relationship with groups. This concept can give different opinions about the
definition of leadership comes from personal qualities of a leader or a leader makes
follower ship through what she or he does or believes (Grint,2004).

Recent reviews take leadership as a process where by an individual influences a group of

individuals to achieve a common goal. As a business environment became more competitive,
2
corporations are faced to push themselves to very capabilities. However, there are many challenges that affect
role of leadership on organizational performance. Other authors say that effective leadership involves
motivation, management, inspiration, remuneration and analytical skills. When all these are present the
organizations record increased employees’satisfactionand organizational performance that positively influence
the productivity and the profits. Those

conclude that the role of organization performance is measur

(North house 2004).

The study is to assess the role of leadership on organizational performance after those creating smooth
relationships with managers and employees and then established conductive working environment for the
achievement of goals by detail identification and remedial measures. The main problem of the role of
leadership on organizational performance in Ethio telecom at Fitche Branch there is lack of motivation,
absence of good leadership style, poor communication information, low level of efficiency and effectiveness.
So, the researcher conducts this study to show these problems for the organization to achieve its
performance.

1.3 Research questions

What is the effect of leadership on organizational performance in Ethio telecom in fitche branch?

what type of leadership style does apply in the organization?

How does the corporation leader interact with follower?

What is to improve the performance of employees in the corporation?

1.4 Research objectives

1.4.1General objective
The General objective of the study is to assess the role of leadership on organizational

performance in case of Ethio Telecom Fitche Branch.

3
1.4.2 Specific objectives

✓
To assess the effective of leadership organizational performance?

✓
To identify the leadership style implemented by the organization?

✓
To investigate the interaction between leader and follower?

✓
To suggest possible alternative solutions that have improve the performance of
employees in the organization?

1.5. Significance of the study

After the researcher is completed this study the organizations, researchers, employees would be
beneficially. It would enable researcher to acquire good knowledge about how to do research
study. The study is provided current strength and weaknesses of Fitche Ethio telecom on the
role of leadership on organizational performance. It enables the researcher to full fill degree of
bachelor of art in management and exercise the way of investigation. It will be help for other
researcher as a secondary source for further investigation on the topic in the future.

limitation of the study

The study focused on the role of leadership on organizational performance limited only Ethio

Telecom in fitche branch and the study not consider other organizations.

Unwillingness of employees to give appropriate information and difficulty in finding

secondary source from the organization.
Relevant literature review cannot easily available.

The study conceptually delimited only on the role of leadership on organizational performance.

1.7 scope of the study

Due to time and resource constraints the study would be delimited to Fitche Ethio telecom. The study
also would focus all employees on the Ethio telecom that it would be convenient to the researcher to
further more manageable data. Again, the study conceptually is bounded the role of

4
leadership on organizational performance on only Fitche Ethio telecom by using census
survey method and using descriptive design of study.

1.8 Ethical Consideration

After knowing the title of the study, the researcher takes formal letter from Salale University General
Tadesse Biru Campus Management department had then the researcher show the formal letter to the
manager of Ethio telecom in Fitche branch. After that formal letter of request Shown to each
resplendent to get the required data by making them understate the aim of the study as partial
fulfillment of art degree in management and to convince them as it would not intend for other
purpose. Then, oral consent would obtain from each respondent before any questionnaire, then the
researcher prepared appropriate questionnaires and distribute to employee’sinterview conducted to
manager, then the questionnaires would fill by the respondents and interview conducted to the
manager, finally the collected information and justification about the questionnaire and interview are
analyzed using table and percentage as well as words.

1.9 organization of the paper

The study is organized in five successive chapters.

The first chapter contains introduction, background of the study, statement of the
problem, research objective such as general and specific objective, research questions,
scope of the study, significance of the study.

The second chapter consists of review literature which is about the role of leadership on
organizational performance.

The third chapter includes research methodology and design, data source, data
collection and data analysis and presentation.

The Fourth chapter included the analysis of collected data and interpretation of the
analyzed data.
Finally, the fifth chapter consists of summarization of major findings, conclusion and puts
the possible recommendation.

5
CHAPTER TWO

2. REVIEW OF RELATED LITERATURE

2.1 INTRODUCTION

The primary purpose of this chapter is to get the theoretical understanding of the
problem of role of leadership on organizational performance.

2. 2 Definition of Leadership

Leadership is a complex concept that is defined as the ability to influence motivates and
enable others to contribute to the effectiveness and success of the organizations of
which they are members. Leaders use influence to motivate followers and arrange the
work environment so that they do the job more effectively. They exist thought out the
organization just only in the executive site (Steven, 2005).

Leadership is defined as asocial process in which leader seeks the voluntary participation of
subordinates in an effort to reach organizational goal. This definition implies that leadership
involves more than welding power one exercising authority and his exhibited on different levels.
At the individual level for example leaders build teams create and change at the group level.
Finally, leaders-built culture and create change at the organization level (Robert, 2003).

Some people say the leadership is difficult to define but we know it when we see it.
Other argues that a leader can only be defined as someone how has followers. As one
respective scholar acknowledge leadership is one of the most observed and last
understand phenomena one earth (Burn, 1998).

2.3 Gender differences in leadership

Several writers think so they suggest that women have interactive style consisting of more
people oriented and productive leadership. They say that women are more people oriented and
emotional in their leadership roles. Does woman adopt more people oriented and participative
leadership style? The answer is no and yes respectively. Leadership is studied in fields setting
have generally found that male and female leaders do not differ in their levels of task oriented or

6
people-oriented leadership. The main explanation way men and women do not differ on this style is that real world
job requires similar behavior from men and women job conditions. Studies indicate that differences in the inherent
leadership style between men and women. Women tend to adopt a more Demonstrative leadership style. They
encourage participation, share power and

information and attempting to enhancef-worth(Stevenfollower’s2005). sel

2.4 Leadership and management

Leadership and management are not necessary the same. But are not compatible, effective
leadership in the organization create long term interests’parti involved in the organization develop
strategy for moving towards that vision the support of employees to produce the movement and
motivated employees to implement the strategy whereas, management is the process of planning,
organizing, staffing, motivating and controlling through the use of formal authority (John M.Ivancevich
2005).

2.5 How leadership affects behavior, human relation and performance

Leadership is the process of employees towards to work the achievement of objectives. There are

various styles of leadership. The leader’sehaviorstootherstyleswords.The leadeaffectr’s b behavior

different from that of a Democratic leader. The human relation between leader and

follower will different according to the leadership style. The main reason for employs failure is poor
leadership (Lussier, 2005).

2.6 Diversity and global leader

Thinking globally and having global leadership are essential to effective organizations. Most large
companies conduct business in many parts of the world. This makes cultural awareness and diversity in
leadership necessary for business success in the increasingly global business environment. According to
Lussier seven major differences between the Japans and united state countries were identified. The
Japans have a longer length employment, use effective decision making, use more collective
responsibility, evaluate and promote employs more slowly, use more implicit mechanism more slowly,
have more specialized career path and have more holistic concern employees.

7
2.7 Leadership skills

There is no recognition in both leadership theory and practice the importance of skills,
how leaders behave and perform effects very. Both style and role activities are closely
related to skills. The research on leader traits continuous but in recent years increasing
attention is being given to identifying leader’saremanylistssuggestedskillleadership.
inTherethepractitioner-oriented skills critical to success in the global economy. According
to Angelo k and Robert there are five leadership skills.

Cultural flexibility is the interaction assignments the skill refers to cultural awareness and
sensitivity. In Democratic organizations the same skill can be critical for success in sight
of increasing diversity.

Communication skill is effective leaders must be able to communicate in written form,

orally and none verbally. Leaders are communicators.

Human resource development is a part of leadership effectiveness leaders must have

human resource development skill of developing a leader learning climate designing and
conducting training programs. Transmitting information and experience assessing results,
providing career counseling creating organizational change and adopting learning materials.

Creativity is the problem-solving invention and creativity provide to completive

advantage in today global market place.

5. Self-management of learning is the skill refers to the need for continues learning of
new knowledge and skill.

2.8 Relationships between leadership, power and authority

Leadership in an organizational performance a clear understanding must be developed in the

relation among power, authority and leadership in an organization. Power is a measure of a
person’s potentialrstod.What shetoorhe wantsgetthemothetodo,as well as avoid being forced by
others to do what or he does not want to do. Source of power in organizational source include
reward power, coercive power or capacity to punish, legitimate power or person position in an
organization. Whereas personal source of power in an organization can be emerged from
8
expert power the skill experience and knowledge an individual possesses and referent power or the
personal characteristics of an individual that make other people want associate with the person. Authority
which is the right to issue directives and expand resources is related to power but is narrow can exert
authority is a function of position in the organization hierarchy flowing from top to the bottom of the
organization (Bayars, 2005).

2.9 Role of Leadership on organizational performance

Managers all over the world are recognizing the essential role that effective leadership is important in
organizational performance. Leadership is important in organization because without effective leaders it
will be difficult for an organization to achieve their goals. A true

leader’s job is to getintoget theitoperatingorganizationhighefficiencyinorder devel to meet its goals.

This vision is often innovation through the personal creatively and in sight and

creating an environment for free thinking. They also make it possible for others to bring innovation to
the organization at all level. They also support organizational freedom of expression and protection
for different opinion. In recent directed system they not only pass along information they also make
sure the information in the organization (Robert and Angelo, 2003).

2.10 Some Behaviors of an effective leader

According to House, R.J. (2005) Leadership behaviors including the following.

Thinking critically is carefully desire use respond analysis to reach a decision about what to believe
of what to do. The essence of critical thinking is a willingness to ask question and to open to be new
ideas and new ways to do things.

Solving problems client problems, paper work problems, staff problems and others that are accruing
frequently need to be solved.
Respecting the individuals although people have many things in common each individual have different wants,
needs and different life styles or experience. The effective leaders recognized the differences in people and help
them to find the rewards in their work for most them. In addition,

9
skillful communication which includes listening of others, encouraging exchange of information
and feed backs are behaviors of effective leaders.

2.11 Approaches of leadership

According to (Fielder, 2003) there are four main generation of leadership

1. Trait theory is the idea that people are born with certain character traits. Since certain traits are
associated with proficient leadership. People who make good leaders have the right or sufficient
combination of traits. The problem with the trait approach lies in the fact that almost as many traits as
studies under taken were identified. These leadership traits are innate and instinctive

qualities that you either.Somepeople arehavenatural leadersor andyouareendoweddon’t with

certain traits not possessed by others individuals.

2. Behavioral theories are leaders can be made rather than are born. Behavioral theories
successful leadership is based in definable, learnable behavior and can be trained. This
leadership theory focused on the actions of leaders not on personalities or characteristics they
possess.

3. Contingency theories focused on the particular variables related to the environment that might determine
which particular style of leadership is the best suited for the situations. According to this theory there is no
leadership style is best in all situations. Contingency theory is a class of behavioral theory that contents
there are no one best way of organizing or leading and that an organizational leadership style is effective in
some situation many not are successful in others.

4. Transformation theories are a leadership believes that people are motivated by the task that must be
reformed. The more structured an organization is the greater the success. People give their all to
organization which can be their primary need and they will place their individual interest second.
Transformational leadership enhances the motivation, moral and performance of followers through variety
mechanism. These include being role model for follows that inspire them and understanding the strength
and weakness of followers, so the leader can align followers with task that optimize their performance.
According to burns, transforming leadership is a process of which leaders and followers help each other to
advance to a higher-level moral and

motivations.
10
2.12 Leadership style

Leadership style depends on the situations including where the organization is in its life
cycle. According to Bayars, (2005) the following are common leadership styles.

Autocratic the autocratic leadership style is the manager makes all the decision and
dominant team members. Generally, this approach is not a good way target to get the
best performance from team. However, this style may be appropriate when urgent
actions are necessary or when subordinates actually prefer this style.

Participative the managers involve the subordinate in decision making by consulting

team members, which encourages employee ownership for decision. A good
participative leader encourages participation and delegates wisely.

Laissez fair is also called free rain in these hands of the leadership style the leader
encourages team members too independently and works out their problems by the
servers, although he or she is available for advice and assistance.
11
CHAPTER THREE

RESEARCH METHOD AND METHODOLOGY

Description of the study area

Fitche is one of the northern Shewa towns. This located 112 km away from National
capital city Addis Ababa and 90 km away from capital city of regional state Adama.

3.2 Research Design

The researcher would be used descriptive research design to describe the existing
phenomena obtaining information about the role of leadership on organizational
performance in Fitche Ethio telecom. The researcher would be use census survey because
there is a small member of the employees. The research would be conduct in Fitche Ethio
telecom. In this organization there are 38 employees that are work permanently.

3.3 Type and Source of Data

The researcher would use descriptive research design because the researcher wants to
describe the actual existing conditions and obtaining information about the role of
leadership on organizational Performance. To conduct this study the researcher would
used both primary and secondary source of data to achieve the objectives of the study.
The primary data source would to obtain data from managers through interview, and
from employees through questionnaire on the organization. Secondary source of data
would use to collect data from organization documents.

3.4 Target population

The target population for this study would be including all employees working in Fitche
town Ethio telecom.
12
3.5 Sampling Techniques

To conduct this study the researcher would use census method. The reason to use
census method is that the total populations are manageable and small they can be
addressed by the researcher capacity.

3.6 Method of Data Collection

In order to gather primarily information, the research would be developing the appropriate
questionnaire from another similar research. Some modifications to distribute to the
respondents. The first section is regarding the Demographic aspect of the respondent asking
their gender, age, educational qualification position and their experience in the organization.

The researcher would use both primary and secondary data collection method to collect reliable
information on the role of leadership on organizational performance. The primary data is
collected by preparing both open and closed ended questionnaires and Interview method. In the
questionnaire for open ended the research was to provide the respondent. Its own answer to the
question was qualitative data collection method and close ended form use the respondent is
asked to select its answer from among a list of provide by the researcher and the researcher
would be use quantitative data collection method. Secondary data is collected from
organizational document, internet report would be found in the organization.

3.7 Data processing and analysis

After collecting the required data through questionnaires, it would be analyzed using
descriptive method. The method of data analyzes for questionnaires and interview would be
quantitative. The analyze data would be presenting by using tables, and percentage.
13
CHAPTER FOUR

4. Data analysis and interpretation

This chapter deals with the analysis of information gathered through questionnaires distributed
and presented in tabular form and percentage as well as analyzed and interpreted to explain
the finding of the study. The researcher distributed 36 questionnaires to the employees. 34
questionnaires were clearly filled and returned to the researcher.

Table 4.1 Demographical characteristics of the respondents

Demographic is a dominate factor to the role of leadership in the organization performance

which include sex, age, educational background and work experience.

No
Item
No of respondents
Percentage

1
Sex
Male
27
79.4%

Female
7
20.6%

Total
34
100%

2
Age
18-29
18
52.9%

30-39
10
29.4%

40-49
6
17.6%
50-65
_
_

Total
34
100%

3
Educational Qualification

14

Grad 12 completed

_
_

Diploma

5
14.7%

Degree

27
79.4%

Master and above

2
5.9%

Total

34
100%

4
Work experience

Less than one years

6
17.6%

1-3 years

17
50%

4-6 years

7
20.6%
7-10 years

4
11.8%

Above 10 years

_
_

Total

34
100%
(Source: own survey 2020)

The above table indicates that the general characteristics of respondents which include sex, age,
educational background and their work experience. Regarding to sex indicates that 27(79.4%) of the
respondents are males and the remaining 7(20.6%) of the respondents are females. This implies that
item the compassion of sex in the organization is dominated by male respondents.

With regard to age the above table item 2 shows that 18(52.9%) of the respondents were between 18-
29, 10(29.4%) of the respondents were between the age of 30-39 years and the remaining 6(17.6%) of
the respondents were between 40-49 years. In general, from the above table the

15
researcher concludes that more employees in the organization are within the productive
age or young and this is an important opportunity for the Ethio telecom.

As shown the above table item 3 indicates that 27(79.4%) of the respondents were degree,
5(14.7%) of the respondents were diploma and the remaining 2(5.9%) of the respondents were
master and above. From this the study we can understand that large number of employees in the
organization have degree holders and these employees have more productive.

As shown the above table item 4 indicates that 6(17.6%) of the respondents work experience
was Less than one years,17(50%) of the respondents work experience was between 1-3 years,
7(20.6%) of the respondents work experience was between 4-6 years, the remaining 4(11.8%) of
the respondents work experience was between 7-10 years. so, the researcher concludes that
most employees in fitche Ethio telecom have work experience 1-3 years. Therefore, the data
indicated that less experience workers in the organization.

Table 4.2 Leader Contribution for Organizational Performance

No
Item

Number of
Percentage

respondents
1
Is the leader in your organization

contributing
for the increments

of organization performance?

Yes

21
61.8%
No

13
38.2%

Total

34
100%

(Source: own survey 2020)

Based on the above table 4.2 indicates that 13(38.2%) of the respondents are the leader in the
organization had not contribution for the increments of organizational performance while the
remaining 21(61.8%) of the respondents are expressed their agreement on leader contribution for

16
the increments of organizational performance. This indicates that leaders have great role on

increasing organizational performance.

Table 4.3 Role of Leadership on Improving Organizational Performance

No
Item
Number of respondents
Percentage

1
How do you rate the role of

leadership on improving

organization performance?
Very high
5
14.7%

High
14
41.2%

Medium
9
26.5%

Low
6
17.6%

Total
34
100%

(Source: own survey 2020)

Based on the above table 4.3 shows that out of the total respondents 6(17.6%) of them
represented the role of leadership on improving organizational performance is low levels,
out of the total respondents 14(41.2%) of them represented the role of leadership on
improving organizational performance is high level and 9(26.5%) of the
respondent’scontributionat medium level in the organization and the remaining 5(14.7%)
of the respondents answered at very high level. This implies that the role of leadership on
improving organizational performance is high levels.

According to the manager of the Ethio-telecom role of leadership have an impact on

organizational performance. As a manager he said that leadership is important. Because without
leaders the employee not punctual in the work place, workers are not doing activities efficiently
and effectively. A leader is also important to control the overall activities within the organization.

17
Table 4.4 Analysis of Respondents which are related with type of Leadership

style

No
Item
Alternative
Number of

respondents
Percentage

1
What type of leadership style
Democratic
29
85.3 %

an organization currently have?

Autocratic
5
14.7%

laissez faire
_
_
Total
34
100%

2
What are the requirements for
Influence other
15
44.1%

being a good leader?

Problem solving skills

12
35.3%
communication skills
4
11.8%

Accepting difference
3
8.8%

Total
34
100%
3
How do you evaluate the
Very high
4
11.8%

importance of good leadership

in the organization?

High
19
55.9%

Medium
8
23.5%

Low
3
8.8%
18
Total
34
100%

4
What is the purpose of having a
for the achievement of
16
47.1%

good leader in the organization?

organizational goals
For efficient use of

resource
7
20.6%

For creating new

3
8.8%

environment

For motivating
6
17.6%

employees
For proper use of time
2
5.9%

Total
34
100%

(Source: own survey 2020)

Based on the above table 4.4 item 1indicates that out of the total respondents 29(85.3%) of
them stated that the organization currently follow democratic or participatory leadership style.
On the other hand, 5(14.7%) of the respondents were currently the organization had
implemented or followed autocratic leadership style. This implies that the leadership that
mostly preferred and implemented in the organization is democratic leadership style but some
of respondents stated that leadership follows autocratic leadership style. So, there is no full
democratic leadership style in the organization.

As shown the above table item 2 shows that out of the total respondents 15(44.1%) of them stated
that ability of influencing is agree requirements for being a good leader and 4 (11.8%) of the
respondents give good communication skills and the other 12(35.3%) of them stated that problem
solving skills has a great contribution for being a good leader. The remaining 3(8.8%) of them
stated that respecting individual difference is an essential for exercising leadership property and to
be being a good leader. This implies that the requirements for being a good

19
leader have the ability to influencing others and having a problem-solving skill have great value for the
employees of the organization.

Based on the above table item 3 indicates that out of the total respondents 3(8.8%) of the respondents
stated that the importance of good leadership in the organization is at low level, 8(23.5%) of the
respondents stated that leadership in the organization is at medium level while 19(55.9%) of the
respondents presented its contribution at high level. The remaining 4(11.8%) of them stated that
importance of good leadership in the organization is very high. This shows that, majority of
respondents had expressed their agreement on the importance of good leadership in the organization
is high.

Based on the above table item 4 indicates that 7(20.6%) of the respondents d contribution is for
efficient use of resource, 16(47.1%) of the respondents answered that lea purpose is concerned with
the achievement of organizational goals, 6(17.6%) of the respondents stated thatpurpose is
leader’stomotivatingemployees in the organization and the other 2(5.9%)

of the respondents stated that its purpose of good leader in the organization is for proper use of time
and the remaining 3(8.8%) of the respondents stated that its purpose is for creating new work
environment in the organization. The majority of respondents stated that good leader in the
organization is important for the efficient use of resource and the achievement of organizational goals.

According to the interview of the manager of Ethio-telecom, the organization currently follow
democratic or participatory leadership style in order to improve the performance of organization. That
means when a company follow such style the employee become more satisfied with working
conditions.

Table 4.5 Analysis of Respondents that are related with how the Organization

Leader interacts with their Followers.

No
Item
Alternative
Number of

respondents
Percentage

20
1
What is the degree of
Very good
3
8.8%

communication between employees

and leaders in the organization?

Good
9
26.5%
moderate
16
47.1%

Low
6
17.6%

Total
34
100%
2
Does leader support their follower
Yes
20
58.8%

when they face a problem?

No
14
41.2%
Total
34
100%

3
Does the leader closely monitor
Yes
21
61.8%

employees to ensure that they are

performing correctly?
No
13
38.2%

Total
34
100%

4
Does a leader request feedback
Yes
18
52.9%

about their performance in the

organization?

No
16
47.1%

Total
34
100%
(Source: own survey 2020)

21
Based on the above table 4.5 item 1 indicates that 6(17.6%) of the respondents describe
that the degree of communication between employees and leaders is low. The other
16(47.1%) of the respondents stated that the degree of communication between employees
and leaders in the organization is at moderate level and the 9(26.5%) of the respondents
stated that the degree of communication between employees and leaders is good and the
remaining 3(8.8%) of the respondents stated that the degree of communication between
employees and leaders is very high. This implies that the degree of communication between
employees and leaders in the corporation is at moderate level.

As shown from table 4.5 item 2 indicates that 14(41.2%) of the respondents answered the
question in the negative while 20(58.8%) of the respondents answered the question or
response that leader in the organization have to express work on supporting their employees
when they face a problem. This implies that leaders in the organization always willing
support their follower when they face difficulties relating to their work performance.

As it is shown from table 4.5 item 3 shows that 13(38.2%) of the respondents stated that the
leader of the organization does not closely supervise the employees of the organization. The
remaining 21(61.8%) of the respondents expressed their agreement that the leader is active
in closely monitors the employees of the organization. This implies that the leader is at good
positions in closely supervising of the working group in the organization.

Based on the above table item 4 indicates that 16(47.1%) of the respondents stated that
leaders do not request feedback related to their performance, while 18(52.9.%) of them
stated that leaders request feedback about their performance from employees of
organization. This indicates that majority of respondents answered that leaders are willing to
accept the feedback from their employees relating to their performance in the organization.

According to the interview of the manager of Ethio-telecom they have a good

relationship between the leader and its subordinates and the organization have its own
policies, procedures and process.

22
Table 4.6 Analysis of Respondent’s ranswethatarerelated with
alternative Method to improve the Performance of Employees

No
Item

Alternative
Number of

respondents
Percentage

1
Does your organization have
Yes
19
55.9%

Mechanism to improve your

performance?

No
15
44.1%
Total
34
100%

2
Does
the leader
encourage
Always
3
8.8%

team
work
in
the

organization?
Often
11
32.4%

Rarely
19
55.9%
Never
1
2.9%

Total
34
100%

3
What could be cause for
Lack of adequate
10
29.4%

leader low performance in the

training

organization?

Lack of
17
50%

commitment from

leader
low qualification of
5
14.7%

23
leader

Poor experience of
2
5.9%

leader

Total
34
100%

(Source: survey 2020)

As it shown on the above table 4.6 item 1 indicates that 15(44.1%) of the respondents stated that
it had not methods to improve the performance of employees. The remaining 19(55.9%) of the
respondents had expressed that it had a method to improve employees’performance. This implies
that more of the respondent have access methods on improve employee’sperformance.

As it shown the above table 4.6 item 2 indicates that 1(2.9%) of the respondents stated
that leaders never encourage team work in the organization, 19(55.9%) of the
respondents stated that leaders encourage team work really in the organization,
11(32.4%) of the respondents expressed their idea leaders often promote team work at
the organization. The remaining 3(8.8%) of the respondents stated that leaders always
encourage team work in the organization. This implies that majority of the employees
agree on leader have really encourage team work in the organization.

At the above table 4.6 item 3 indicates that 17(50%) of the respondents expressed that lack of
commitment from leader is a major cause for their poor performance, 10(29.4%) of the
respondents stated that lack of adequate training of leaders is the cause of poor performance,
5(14.7%) of the respondents indicates that low qualification of leaders as obstacles for high
performance of leader, whereas 2(5.9%) of the respondents indicates that Poor experience of
leader is the cause of poor performance. This implies that among various cause lack of
commitment is major cause of leader’slowperformance in the organization.

According to the manager of Ethio telecom, there are different methods used by the
organization to improve the performance of employees among this the most important for
improving performance in the organization is training given to employee and motivating
employee to performance.

24
Table 4.7 Description of Problems related to Leadership style in the

Organization

No
Item
Alternative

Number of
Percentage (%)

respondents
1
Do you think there is a
Yes

13
38.2%

problem related to leadership

No
21
61.8%

style in your organization

Total

34
100%

2
If your answer is yes for the
Absence
of
good

3
23.1%

above question what is the

leadership style

main problem

Lack
of
good

7
53.8%

relationship
with
co

workers
Work environment

3
23.1%
Other

Total

13
100%

(Source: own survey 2020)

As it shown on the above table 4.7 indicates that 13(38.2%) there is a problem related to
leadership style in the organization. The remaining others 21(61.8%) said that there is no a
problem related to leadership style in the organization.

The above table also indicates that 7(53.8%) of the respondents expressed lack of good relationship
with coworkers is the main cause for problem of leadership style in the organization, 3(23.1%) of the
respondents stated that absence of good leadership style is the cause of leadership style problems
in the organization, and others 3(23.1%) of the respondents indicates that Work environment is also
another problem to leadership style in the organization .This

25
implies that among various cause lack of good relationship with coworkers is main cause of

problems related to leadership style in the organization.

Table 4.8 Description of the Organization Motivate Employee to their Job

Properly

No
Item

Alternative

Number of
Percentage (%)

respondents
1
Does
the organization motivate
Yes

19
55.9%

employee to their job properly

No

15
44.1%
Total

34
100%

2
If your answer yes for the above
Giving bonus

9
47.3%

question by what mechanism does

Giving reward

6
31.6%

the
organization motivate the
employee

Salary increment

3
15.8%
Other

1
5.3%

Total

34
100%
(Source: own survey 2020)

The success of every organization depends on its employees derive through their efforts, commitment,
engagement practices and persistence’s.Thus, motivation is an important topic because leadership
competencies include the ability to motivate employees as one of the crucial duties or jobs (Lussier, 2013). from
this researcher can understand most of 19(55.9%) of respondents in the organization are motivated to their job
properly and the remaining15(44.1%) of respondents in the organization are not motivated to their job properly.

And also from question NO 1 out of 19(55.9%) who responded” thatYes”the res organization have
mechanism to motivate employees by giving reward , by giving bonus and by

salary increment as 47.3%, 31.6% and15.8% respectively and the reaming 5.3% states other

26
mechanisms like moral support and allowance .from this the researchers can
understand that the organization have means of mechanism to motivate employees to
do their job properly and most of the respondents 47.3% responded the mechanism of
motivating the employees were giving bonus to motivate employee to accomplished
there task properly and increase efficiency and effectiveness of the organization .
27
CHAPTER FIVE

Summaries of finding, conclusions and recommendations

summary of finding

This chapter deals with summary of finding, conclusions and recommendations of the
study regarding the role of leadership on organizational performance in case of Ethio
telecom in fitche branch.

The majority 27(79.4%) of the employees in the organization are male and 7(20.6%) of
the employees in the organization are female.

Majority (44%) of the respondents stated that leadership is the process of influencing
others and motivating others.

Majority 27(79.4%) of the employees are degree in the organization.

The majority 21(61.8%) of the respondents stated that leadership have great
contribution of the organization performance.

Majority 29(85.3%) of the respondents agree that leadership style in the organization
follows democratic style rather than autocratic, bureaucratic and laissez faire.

Majority 16(47.1%) of the respondents agree that the degree of communication between
employees and leaders in the organization is moderate.

Majority 18(52.9%) of the respondents stated that leaders are willing to accept feedback
from their employees about their performance in the organization.
More than half of the respondents stated that the organization have methods to improve
the performance of the workers.

5.2 conclusions

The purpose of this study was the role of leadership on organizational performance.
Based on the data analysis and interpretation the following conclusions are made.

28
In general, leadership can affect the performance of the organization in different ways.it
is an important and effective for managing, achieving, motivating, administering and
controlling of the overall activities of the organization.

The study found that the most respondents in the organization are males.

Based on the analysis made the majority of respondents of fitche Ethio telecom are
degree holders. They contribute knowledge which could help to add value to the
organization profitability.

Regarding to work experience most of employees were between 1-3 years’ experience.

Based on the analysis made most respondents said that leaders in the organization
performance contributing great role on increasing organizational performance.

Based on the analysis made most employees rate in the role of leadership on improving
organizational performance is high.

The organization leadership style follows democratic leadership style but some of the
respondents stated that autocratic leadership style. So, the organization leadership style
is not fully following democratic leadership style.

There are various types of reasons for poor performance of leader in the organization. But lack of
commitment from leaders is the main reason for leader’spoorperformance on the organization.

The leaders of the organization in supporting their follower is high, and also the leaders
of the organization in closely monitor employees and requesting feedback about their
performance is high.

5.3 Recommendation

Based on findings and conclusions of study the following recommendations are made.
The organization preferable to provide different training for the employees of the organization in
order to create awareness about the essence of team work, to improve the performance of

29
employees in the organization, to develop good relationship and communication
between employees and leaders.

The organization advisable to fully follow democratic leadership style which consists of leaders
sharing the decision-making ability with group members and participating social security.

The leaders in the organization advisable to supporting their followers when they face
problems by creating favorable condition for performance evaluation.

Therefore, lack of commitment from leaders, lack of adequate training, low qualification
and poor experience of leader are resulted low performance of leaders, the organization
advisable to control their performance and by making appropriate evaluation and to take
a corrective action on poor performance of leaders.
30
Reference

Angelo k and Robert (2003) organization behavior key concepts, skills and best practice 2nd edition burr
ridge grew hill com.

Bayars (2005) Human resource management,5th edition published by India Doling KN deerskin

Burn B.m (1998) transformational leadership 3rd edition Lawrence elbaum.

Conger J.A (2001) reflection on leadership and spirit conference on leadership and spirit, bastion,
Academy of management review.

✓
Fielder, F.E (2003) and House, R.J. t (2000)

of progress,” internationalriaandorganizationalpsychology,reviewvol. of indu

Grint k (2004) what is leadership from Hagar to hybrid, In 3rd International Workshop on Studying Leadership,
University of Exeter Centre for Leadership Studies.

House, R.J. (2005), a psychological theory of leader’s effectiveness. In Academy of Management Proceedings,
Academy of Management.

John M. Ivancevich (2005), Organizational Behavior and management 7th edition, New York, Me Grew Hill.

Lussier (2005) human relation in organization, 6th edition mc grew hill com.

Lussies. W and byars (2005) management skill and application 11th edition New yourk mc graw hill com.

MC Shane S.L and Vongionow M.A (1994), organizational behavior, 1st edition Austria and Florida.
North house Pg. (2004) Leadership theory and practice 3rd edition, Australian Journal of Business and
Management Research.

31
Riaz, A and M.H, Haider (2010), role of transformational and transactional leadership on
job satisfaction and career satisfaction, Business and Economic horizons.

Saleem, H (2015) the impact of leadership styles on job satisfaction and mediating role of
perceived organizational politics, journal of procedia-social and behavioral sciences,

volume.

Steven L (2005) organization behavior 3rd edition M.C. grew hill com.

Vance, D.L., (2016). The relationship between participative leadership style and employee
satisfaction with possible moderators of emotional stability (neuroticism) and

years of experience 6th edition. Trevecca Nazarene University.

32
APPENDEX

SALALE UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

Dear respondents

The purpose of this QuestionnaireTheRoleofLeadershipis onto colle

organizational performance in Ethio Telecom in Fitche Branch

The research requests your honest in assuring the questionnaires precisely and clearly as much as
possible. Therefore, I request trustily your response is confidential.

General Instructions

Do not write your name

Please put the right mark on the bracket your personal information and answers

Part One: Background of the Respondents

1.
Sex;
Male [ ]
Female [
]

2.
Age;
18-29years
[ ] 30-39 [ ]
40-49 [
]
50-65 [ ]

3.
th
Educational qualifications; 12 completed [
] Diploma [ ]
Degree [ ]
Master and
above [
]
4.
Work experience; Less than one year [ ]
1-3years [ ] 4-6year [
] 7-10year [
] above
10year [
]

Part 2: Questions Related to Basic Research Questions

2.1 Questions Related to effect of leadership on organizational performance

5. How do you rate the role of leadership on improving organization performance?

33
Very high [ ] High [ ] Medium [ ] Low [ ]

From your point view what does leadership mean? Please specify-----------------------------------

---------------------------------------------------------------------------------------------------------------------

--------------

Is the leader in your organization contributes for the increments of organization performance? Yes
[ ] No [ ]

How do you evaluate the importance of good leadership in the organization performance?

Very high [ ] High [ ] Medium [ ] Low [ ]

9. What is the purpose of having a good leader in the organization performance? For the

achievement of organizational goals [ ] for efficient use of resource [

] for creating new
environment [ ] for motivating employees [ ] for proper use of time [
]
2.2
Questions Related to leadership styles of the organizations

10.
What type of leadership style the organizations currently have?

Democratic [ ] Autocratic [ ] Lassies fair [ ] Bureaucratic [ ]

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

Yes [ ] No [ ]

12. If your answer is “Yes”11 whatforthe mainquestionproblemis? No

Absence of good leadership style [ ] lack of good relationship with coworkers [ ]

Work environment [ ] other, if any ……………………………………

2.3. Questions Related to how corporation leader interacts with follower?

What is the degree of communication between employees and leaders in the organization? Very
good [ ] good [ ] moderate [ ] Low [ ]

Does a leader request feedback about their performance in the organization? Yes [ ] No [ ]

15. Does the leader encourage team work in the organization? Always [ ] often [ ] really [ ] Never
[]
34
16. What are the requirements for being a good leader? Influencing other [ ] problem solving Skill [ ]
communication skill [ ] Accepting difference [ ] if any other please specify

--------------------------

What could be cause foranization?leader’sLuckofadequatelow perf

training [ ] Poor experience leader [ ] Luck of commitment [ ] Low qualification [ ]

2.4. Questions Related to improve the performance of employees in the corporation?

18.
Does the leader closely mention employees to ensure that they are performing correctly?
Yes
[
] No [ ]

19.
Does your organization have mechanism to improve your performance? Yes [
]
No [ ]
20.
Does your leader support their followers when they face problem?
Yes [
]

No [
]
21.
Does the organization motivate employees to their job properly?
Yes [
]
no [
]

22. If your answer is yes for question no 21 by what mechanism does the organization motivate the
employees? By giving bonus [ ] by giving reward [ ] by salary incremental [ ] if any
other………………………………
35
Interview question for manager

1.From your point of view does the role of leadership have an impact on organizational
performance? If yes what is the impact.

---------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------

2.Does your organization leadership style have its own contribution for the performance
of organization?

---------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------

3.What are the used by your organization improve the performance of employees?

--------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------

4.How are the methods used by your organization improving the performance of employees?

---------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------
36