ADDIS ABABA UNIVERSITY

COLLEGE OF COMMERCE

The Effect of Leadership Style on Employee Performance of

Medtech Ethiopia.

By
Hildana Tadesse
GSR/8095/11

A thesis submitted to the Department of business leadership in partial

fulfillment for requirements of Master of Science in leadership

Advisor
Dr. Adane Atara

June, 2020
Addis Ababa, Ethiopia
 DECLARATIONS

I, the undersigned, declare that this Thesis entitled The Effect of Leadership Style on Employee
Performance of Medtech Ethiopia is my original work and that it has not been presented for a
degree in any other University, and that all the sources of materials used for the thesis have been
duly acknowledged.

Declared by: Hildana Tadesse

Signature: ……………………

June, 2020
 CERTIFICATION

This is to certify that the thesis prepared by Hildana Tadesse, entitled: The Effect of Leadership
Style on Employee Performance of Medtech Ethiopia submitted in Partial Fulfillment of the
Requirements for the Award of a Master’s Degree in business leadership, complies with the
regulations of the University and complies the accepted standards with respect to originality and
quality.

Signed by the Examining Committee:

Internal examiner:

Name_______________________ Signature ________________Date _________________

External examiner:

Name________________________ Signature _________________Date _________________

Advisor:

Name Dr. Adane_Atara________ Signature _________________Date _________________

 Acknowledgement

First of all, I would like to thanks my almighty God for his great support to accomplish this
research work and for his infinite support in my entire life success. Secondly, I would like to
thank my family. In addition I would like to express my genuine thanks to my Adane A. (PhD).
Lastly I would like to thank all the people who support me by giving different materials and for
their idea sharing to complete this study, special thanks goes to all of those organizations,
Medtech Ethiopia p.l.c.

Declared by: Hildana Tadesse

June, 2020
Contents
abstract........................................................................................................................................ i
list of tables ................................................................................................................................ ii
list of figures .............................................................................................................................. ii
chapter one..................................................................................................................................1
1. Introduction .........................................................................................................................1
1.1. Background of the study ...............................................................................................1
1.2. Statements of the problems ...........................................................................................2
1.3. Background of the company ..........................................................................................4
1.4. Research questions ........................................................................................................4
1.5. Objective of the study .......................................................................................................4
1.5.1. General objective ....................................................................................................... 4
1.5.2. Specific objective ....................................................................................................... 5
1.6. Scope of the study .............................................................................................................5
1.7. Limitation of the study ..................................................................................................5
1.8. Significance of the study ...................................................................................................6
1.9. Organization of the study ..................................................................................................6
chapter two .................................................................................................................................7
2. Literature review ..................................................................................................................7
2.1. Introduction ..................................................................................................................7
2.2. Theoretical framework ..................................................................................................7
2.2.1. Concepts and definitions ........................................................................................ 7
2.2.2. Theory of leaderships ............................................................................................. 9
2.2.3. Leadership styles ................................................................................................. 13
2.3. Effects of leadership style on employee performance ............................................... 16
2.4. Empirical review ..................................................................................................... 18
2.1. Conceptual framework ............................................................................................ 20
chapter three ............................................................................................................................. 21
3. Research methodology ....................................................................................................... 21
3.1. Introduction ................................................................................................................ 21
3.2. Research design .......................................................................................................... 21
3.3. Research approach ...................................................................................................... 21
3.4. Target population ........................................................................................................ 22
3.5. Sample size determination ........................................................................................... 22
3.6. Data collection instrument and technique .................................................................... 22
 3.7. Data reliability and validity ......................................................................................... 23
3.8. Data analysis and presentation..................................................................................... 24
3.9. Ethical consideration ................................................................................................... 24
chapter four ............................................................................................................................... 25
4. Data presentation, analysis and interpretation ..................................................................... 25
4.1. Introduction ................................................................................................................ 25
4.2. Response rate .............................................................................................................. 25
4.3. Descriptive analysis .................................................................................................... 25
4.3.1. Respondents information ..................................................................................... 25
4.3.2. Descriptive analysis of leadership style ................................................................ 26
4.3.3. Autocratic leadership style ....................................................................................... 27
4.3.4. Democratic leadership style ..................................................................................... 28
4.3.5. Laissez-faire leadership style ................................................................................... 29
4.3.6. Employees performance .......................................................................................... 30
4.3.7. Summary of descriptive analysis.............................................................................. 30
4.4. Inferential analysis ...................................................................................................... 31
4.4.1. Classical linear regression model (clrm) assumptions ........................................... 31
4.4.1.1. Test for average value of the error term is zero ................................................. 32
4.4.1.2. Normality test ................................................................................................... 32
4.4.4.3. Linearity test ......................................................................................................... 32
4.4.4.4. Multi-collinearity test ............................................................................................ 33
4.5. Discussion of findings ................................................................................................. 36
4.5.1. Autocratic leadership style ................................................................................... 36
4.5.2. Democratic leadership style ................................................................................. 37
4.5.3. Laissez faire leadership style ................................................................................ 37
chapter five ............................................................................................................................... 38
5. Summery, conclusion and recommendations ...................................................................... 38
5.1. Introduction ................................................................................................................ 38
5.2. Summary of major findings ......................................................................................... 38
5.3. Conclusion .................................................................................................................. 39
5.4. Recommendations ....................................................................................................... 40
reference ................................................................................................................................... 42
appendix i ................................................................................................................................. 46
 Abstract

Leadership is important to noble performance meanwhile it organizes both deployment of human

and other resources in the organization, worthy leader inspires employees and encouraged
employees does not only proliferate his or her job performance and assurance within an
organization, but also drives beyond the job requests consequently increasing the organization’s
overall performance and making it more profitable. The main objective of this study was to
examine the effect of leadership styles on employees’ performance in Medtech Ethiopia Plc. To
achieve this research objective both primary and secondary sources of data were utilized. The
primary data were collected from managers, supervisors and workers of all operation and
system units in the Medtech Ethiopia P.L.C. through standardized questionnaires of leadership
style and employees’ performance. The survey instrument were adapted from previous standard
questionnaire. The secondary data were collected through the review of previously established
literature. The data were processed and analyzed using SPSS 26. The research design were both
descriptive and explanatory and the research used quantitative approach. Through Simple
random sampling technique a sample of ninety four was selected out of the total population. Both
descriptive and regression analysis were applied. The descriptive statistics result shows that
Medtech Ethiopia more practice democratic leadership style compare to autocratic and Laissez-
faire leadership style. The result of the regression analysis also indicated that democratic
leadership style has a positive and significant relationship with employees’ performance. The
study concluded that the leadership style applied in the Medtech Ethiopia were significantly
affects the employee performance.

Key words: Autocratic leadership style, Democratic leadership style, Laissez-faire leadership
style, performance

i
 List of tables

table 3.1. Reliability statistics ............................................................................................. 23

table 4.1. Respondents gender distribution. ........................................................................ 25
table 4.2. Autocratic leadership style...................................................................................... 27
table 4.3. Democratic leadership style .................................................................................... 28
table 4.4. Laissez-faire leadership style .................................................................................. 29
table 4.5. Employees’ own performance rating ...................................................................... 30
table 4.7. Summary of descriptive analysis ............................................................................ 31
table 4.8. Multi collinearity test .......................................................................................... 34
table 4.9.correlations .......................................................................................................... 34
table 4.10. Summary of the model ...................................................................................... 34
table 4.11. Analysis of variance .......................................................................................... 35
table 4.12. Regression analysis ........................................................................................... 35

List of figures

fig. 4.1. Normality test ....................................................................................................... 32

fig. 4.2. Linearity test ......................................................................................................... 33

ii
 Chapter one

1. Introduction
1.1. Background of the study

For effective performance and work function, now a day’s people flow of life depends on the
organizations and development and survival of community. Organizations established to address
social needs and group activities. The main drivers of organizations are humans. They give full
of time to the organizations and provide goals

So, human growth and efforts and their lead to the attainment of the goals is not possible without
management. Since the first principle of organization is the presence of human, obviously the
most basic step that must be done to achieve this is to maintain personnel and provides the
psychological gratification and fulfillment of personnel (Mullins, 2007).

Throughout human history, always the expansions and variations made by individuals and
groups associated with the presence of a person as a leader. These movements have been
undertaken under his leadership. Ancient, Out-of date leadership one of the pillars of human
societies and also leadership is an important component of management. When studied as a
function.

her/his presence and the existence in the group is consider as a number of skills that these skills
can be seen as a means or styles of leadership to achieve certain goals (Bennett & Durkin, 2003).
To provide optimal use of human resources in their organization, leaders by take the necessary
measures and establish human relationships that among these measures we can refer to take
correct leadership style. Obviously, every manager in their management and operations uses a
particular leadership style that this style is actually a set of his behavior patterns that regularly
occurs throughout the continual organizational operation and others knows him by it and as
managers of the organization are in very cooperation with the staff, the leadership style of these
managers has a significant impact on staff morale.

Accordingly, the performance will effect on the staff morale (Shirzad & Kebriya & Zanganeh,
2011). For all organizations to achieve goals leadership is important. Since leadership is a key
1
factor for refining the performance of the business, the success or failure of an organization
depends on the effectiveness of leadership at all levels. Researchers declared that leadership is
beliefs, attitudes and an ability to influence of employees to achieve organizational goals.

At all levels depends on the effectiveness of leadership. Researchers declared that leadership is
an ability to influence, beliefs, attitudes and abilities of employees to achieve organizational
goals. However, period of time, leadership is a major topic between the researchers but the past
two decades more remarkable the issue of leadership and its relationship with other
organizational factors. (Duckett & Macfarlane, 2003).

To achieve goals Leadership is important for all organizations, since for improving performance
of the organization, the success or failure of an organization depends on the effectiveness of
leadership at all levels. Absolutely, to effectively manage the relationship with employees,
motivation and Job satisfaction levels of the employees the manager has the skills and techniques
and are also higher and given that the engine of an organization is its employees, this can
effective help to improve the performance of total organization (Yukl , 2001).

Therefore, this research looked for to investigate their effects on employee performance in
Medtech Ethiopia organization and the effect of leadership styles on autocratic, democratic and
laissez-faire. After accomplishment the study on this topic, this research will be valuable for
workforces to classify which leadership style is worthy for them in terms of work gratification
and the success of their careers. It can be valuable for leaders to understand which types of
leadership influences on employee performance and in what way employees can also be inspired
through suitable leadership. It is supportive to businesses to identifying great leaders that can
advance performance of the organization and lead the organization to great success.

1.2. Statements of the problems

In an organization leadership style is play significant role enhancing the interest and commitment
of the individuals.(Obiruwu, 2011). And important to motivate employees’ commitment to fulfill
organizational objectives and increase employee performance, (Chi, Lan, & Dorjgotov, 2012).
Performance and leadership style should be used by managers in the attempt to cause efficiency

2
which requires specific leadership approaches to unique performance in achieving departmental
goals.

Likewise, (Hueryren Yeh 2012), organizational commitment and job performance confidently
related to Leadership style. In most organizations in Ethiopia, work schedule are task-focused
and routine, with no flexibility, and decisions and policies are imposed on subordinates. In such
organizations where the leadership perceives employees in simple hands to get the job done,
employees would pretend to do well due to the standards and measure being assigned to them.

Specifically, the problem leading to this study may be subsumed as arising from the
inappropriate application of leadership styles been responsible for poor relational working ties
between employees and management. There is lack of clear leadership, no democratic
relationships between leaders and subordinate. In fact, it looks leaders are usually authoritarian
in their leadership style (Liya, 2018).

They dictate the tone and have the administration of the organization centered on them. The need
for subordinate and other staff members, as deemed appropriate, in decision making is very
important for the performance of the organization and for the entire staff. Another problem
affecting leadership style in Medtech Ethiopia is the competence of the leaders that are appointed
at senior leadership positions. In most cases, their appointments lack merit and it is based on
factors not related to competence (Liya, 2018). Therefore the organization ends up in having non
competent leaders who lack the abilities or capacities to use the appropriate leadership style to
lead the members to attain set goals or objectives.

Therefore, inline of the aforementioned statements this research sought to investigate and
understand the impact of different leadership styles (autocratic, democratic and laissez-faire) and
their effects on employee performance in Medtech Ethiopia. How employees can be motivated
through proper leadership style and which types of leadership effects on employee performance
and it can be beneficial for leaders to understand.

3
1.3. Background of the company

The project work is based on Medtech Ethiopia plc established in 1998G.C . Medtech Ethiopia
have import and distribution of various Pharmaceutical products such as such as; Medical
Supplies, Hospital Equipment, Laboratory Regents, Chemicals, Laboratory Supplies. And also
imported non pharmaceutical products like Infant Formulas milk and adult milk. Out of six
branches located in Ethiopia such as Addis Ababa , Adama, Dessie, Bahirdar and Jimma and one
branches in Addis Ababa around Sarbet.

Vision and Mission of the company are to be the number one recognized and reliable supplier of
complete ranges of top quality yet affordable pharmaceuticals and medical supplies throughout
the country and to be the first in registering as many unique yet very useful pharmaceutical in the
country.to contribute to the attainment of the national health policy by ensuring continuous
availability of wide range of products in the market. Truly understand our clients' holistic need &
responding appropriately and timely to their maximum gratification.

1.4. Research Questions

The study sought to provide answers to a core question;

 What kind of leadership style prevailed most in Medtech Ethiopia?
 What is the effect of autocratic leadership style on employee performances of Medtech
Ethiopia?
 What is the effect of democratic leadership style on employee performances of Medtech
Ethiopia?
 What is the effect of laissez-faire leadership style on employee performances of Medtech
Ethiopia?

1.5. Objective of the study

1.5.1. GENERAL OBJECTIVE

The main objective of this study was to investigate the effects of leadership style on employee
performance of Medtech Ethiopia.

4
1.5.2. SPECIFIC OBJECTIVE

 To identify what kind of leadership style prevailed most in Medtech Ethiopia.

 To determine the effects of autocratic leadership style on performances of Medtech
Ethiopia.
 To determine the effects of democratic leadership style on performances of Medtech
Ethiopia.
 To determine the effects of laissez-faire leadership style on employee performances of
Medtech Ethiopia.

1.6. Scope of the study

To address the problem under consideration. Conceptually, this research was delimited to the
effect of leadership style on employee performance at Medtech Ethiopia. The study focus only
on three type of leadership (autocratic, democratic and laissez-faire) and its effect on employees’
performance. Methodologically, the study also delimited to descriptive and explanatory design
and quantitative approach. The geographic area in which the study has focused on is the Medtech
Ethiopia and the respondents are all in Addis Ababa Ethiopia. The research is conducted on the
Headquarter of the Medtech Ethiopia where the managerial and operational staff is combined.
This research has incorporated data for the fiscal period of 2020.

1.7. Limitation of the study

The study is limited to the effects of leadership styles of the Medtech Ethiopia on employees’
performance and as such does not study other type of leadership type and factors that could
impact performance. Furthermore, the fact that the study is aimed at conducting an evaluation of
the impact of leadership styles on organizational performance might not be fully welcomed by all
since among some members of management it may create unexpected alarm. Lastly, time and
financial constraints would be a factor in limiting sample size to a manageable level since the
Medtech Ethiopia has established across country wide distribution network covering almost all
regions of.

5
1.8. Significance of the study

The significance of this research is to understand the effect of leadership style son employees’
job satisfaction and organizational commitment. The data gathered from this research study
would help in understanding the importance of leadership styles and leadership management on
employees’ job satisfaction in the organizations. The results of the study carried out could
contribute to the field of organizational management in the pharmaceutical sector and allow the
leaders and managers to understand Management styles and strong leadership in correlation with
the overall performance and employee job satisfaction of the organization. The intent of the
result to provide knowledge to the leaders in order to implement definitive suggestions and make
sound decisions concerning leadership styles and employee job satisfaction in leading the
organization towards success.

Following the study of the finalization, this research for employees to identify which leadership
style is good for them in terms of work satisfaction and the success of their careers will be
favorable. It can be also useful for leaders to understand how employees can also be motivated
through proper leadership and which types of leadership effects on employee performance. It is
helpful to companies in identifying great leaders that can improve performance of the company
and lead the company to great success.

1.9. Organization of the study

The study was had five subsequent chapters. The first chapter contains an introduction, statement
of the problem, objectives of the study, significance of the study, and scope of the study. The
second chapter describes the review of related literatures (theoretical and empirical). Research
design and methodology will discuss on chapter three. The fourth chapter is the analysis,
discussions and presentation part of the research findings, and the last chapter; chapter five
presents the summary and conclusions, and recommendations given and remarked based on the
study results; followed by the list of references and appropriate appendixes.

6
 Chapter two

2. Literature review
2.1. Introduction
This second chapter generalize concepts and theories of from previously research and publicly
provided journal, books and articles. It reviews theories of leadership as well as empirical studies
on effects of leadership style on employee performance described and developed conceptual
framework.

2.2. THEORETICAL FRAMEWORK

2.2.1. CONCEPTS AND DEFINITIONS

2.2.1.1. Leader

Many academician and scholars define leader amongst them Yukl (2001) is one and explained
Leader is a person who could influence and stay central in his companion in order to achieve
organizational central goal in certain settings. Yulk also goes beyond and said that the cliques
could be the leader’s close relative or his/her friends also subordinates of leaders. To become a
leader there should be a willingness of followers that makes a leader. Because, people show
readiness to follow anyone who can bring means of achieving their desire and aspiration.

The other scholar explanations showed that leader has a power on his/her cliques or fellows to
achieve influencing his group members and behavior. Therefore, one can conclude that leaders
have power or influences over others fellow, leaders show way to their followers and aid to the
goals of group and organization (Nwachukwul, 1988). The third definition hand over by other
scholar was that a leader has exercise power over who has power to apply on others or who
followed them to bend the belief and behavior (Bernis, 1959).

Type of leader

In general category a leader can be categorized in to two broad kind of leadership (Ile, 1999),

 Formal Leader:

Formal leader is a leader her/his power and influence originated from his assignment of
organizational position. As a leader she/he has formal influence and power over his/her cliques,

7
fellow or groups. Most of the time he/she can refer interchangeably with manager and can be
known as managerial leader.

Therefore, a formal leader has the power and influence that emanate from his/her assignment of a
position in the organization to instruct, influence and show way to act in achieving
organizational objectives

 Informal Leader:

An Informal Leader is a leader his/her power and influence not originated from his assignment of
organizational position.

Most of the time he/she can be refer as non-managerial leader. This kind of leader has power but
lacks authority over his or her group and can only influence people to instruct, influence and
show way to act in achieving organizational objectives

 Leadership

It is obvious that many scholars and practitioners face a challenges in attempting to clarifying
and defining the term “leadership”. A leadership to become a subject of scholarly thought has
passed many century and variety of definition have been emerged since then.

These definitions and explanations come up after facing many factors from worldwide affaire
and politics to settings the discipline in which the subject is being studied. Therefore, one can
conclude that these explanations and definitions emanated from vast range of issues.

As it said once in the mouth of writter “there are almost as many different definitions of
leadership as there are people who have tried to define it” (Stogdill, 1974).

Prentice (2004) associate the definition of leadership with the success of accomplishment of
organizational aim in directing and organizing his/her cliques, fellows and associates resource to
achieve certain predetermined collective goal. Other expert further defined the concept in
different way but in the same fashion i.e. leadership is an attempt to lead or direct in organization
of cliques and/or to the achievement of particular project for the common good (Fiedler, 1967).

It is process of exerting organized influence to specific team to the achievement of certain

predetermined goal and practiced while a leader organize human and non-human resource,

8
psychological and other resource to engage and satisfy the predetermined objectives of his/her
fellows (Merton, 1969 and Bums, 1978)

Many scholars stated that leadership is one of the most studied, examined and observed and well
know phenomena in the scholarly of the subject (Zenger and Folkman , 2002). Smylie et al.
(2005) mentioned that leadership is performed by an individual who has unique roles and task-
oriented perspectives and also serves as a key “function” in the interactions with other leaders,
followers, and situations.

2.2.2. THEORY OF LEADERSHIPS

2.2.2.1. Great-man Theory

The explorations toward set a standard of traits that describe leadership was extended over many
years and cultures in identifying heroes to set a standard of achievement or failure.

The advocator and pioneer of the Great man theory Thomas Carlyle (1847) argued in the favor of
the heroes and said i.e. 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.

He claimed that being a leader is natural selection or innate and that those men who became a
leader in there innate have heroic potential to being a leader. He preached that the great men
were only nurtured not learnt.

Sidney Hook, further expanded Carlyle perspective highlighting the impact which could be made
by the eventful man vs. the event-making man Dobbins and Platz, (1986).

As Sidney attempt to explain his propositions that the event-full man engage in complex in
historic situation, however he could no really set the course of historic events. On the other side,
the desion making or action of the event-making influenced the course of events, the event-
making man could not been involved in the process but can make a great deal in his course of
action.

The event-making man course of action is not grounded on the result of extreme capacities of
intelligence, will and character rather than the actions or decisions of their distinct action. As one
can notice from the history such concepts leadership was not ethically accepted as was the with
many dictators ( Hitler, Napoleon and the like) of the world. As a result the credibility of the

9
great man theory became questioned. Such kind of great man become dictator and unnecessary
and following the growth and expansion of the organization take the place but in the process
under develop the democratization (MacGregor, 2003).

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 potential for
leadership.

2.2.2.2. Trait Theory

The aforementioned theorists preached that whatever the case the leader is born and gifted with
certain kind of physical appearance and personality character and could shine as a leader from
those of non-leader.

The failure in identifying such illusion traits that all leader had in mutual, be the reason to the
emergence of trait theory. After falling into unpopularity of the theory. In the late 1940s, scholars
attempted to examine the traits of military and non-military leaders respectively and the research
result found out that there were significance of certain traits developing at certain times.

However, trait theory proponents don’t match worried about that such leadership trait were
hereditary or learnt. One of the well-known contributor of the trait theory come up with
identifying two kind of traits that could be possessed by a leaders: i.e. emerging traits those traits
are heavily rest up on heredity examples of such traits are height, intelligence, attractiveness, and
self-confidence. The second kind of trait is called effectiveness traits this trait is championed
through experience and learning such trait comprises mainly charisma as main component of
leadership (Ekvall and Arvonen, 1991).

As Max Weber coined the meaning and definition of charisma as followed the a power of all the
time that can generate totally new approach by subordinates and completely has been personal
commitment to leaders, the followers accept the charisma as blessed with almost supernatural or
superhuman intelligence, quality and power.

After many studies conducted emphasized on intellectual, physical and personality traits that
distinguished non-leaders from leaders, scholars came up with a findings of research that show
only insignificant variance exist amongst subordinates and leaders (Burns, 2003).

10
2.2.2.3. Contingency (situational) Theories

The advocator of this situation theory preached that there is no single and best fit to all
leadership style. This leadership style highly rest upon many factors for examples the setting, the
environment, the background of subordinates and other variables. Furthermore, there is no one
single best way direct, because there some many dimension of the environment that need to
adjust to specific leadership style.

The birth of the situational leadership approach was 1969, pronounced that there is no single and
best fit to all leadership style to lead and The leader must be able to adapt to the situation and
transform their leadership style between task-oriented and relationship oriented.

Many leaders attempt to change employees within the organization, they not only change the
dynamics of settings of the organization indeed the employees also. As many academic and
scholars stated that and identified in a common sense, the theories of contingency are fall under
behavioral theory that challenges that there is no one finest way of leading and that the style of
leadership that is operative in some circumstances may not be effective in others (Greenleaf,
1977).

Many pioneer of the situation theorists pronounced that the leader only emphasized on the
interaction of leader-subordinate and preached that the subordinate engaged in significant role
explaining the interaction. Even though, this leadership mostly emphasized on the leader, it also
makes subordinates to signify the focus into group dynamics this theory scholar and advocator
mostly pronounced that the style of leadership highly vested on the hands of the maturity of the
followers of the leader (bass, 1997).

2.2.2.4. Style and Behavior Theory

Proponents of the style and behavior theory pronounce the significance of certain essential
leadership capacity that facilitate and serve as enabler for the leader in order to help the leader to
act in accordance with the previous capacity of a leader. Consequently before specific acting
announce that every single leaders has different style of leadership that give most pleasant for
most leaders. This leadership style highly rest upon many factors for examples the setting, the
environment, the background of subordinates and other variables. Furthermore, there is no one

11
single best way direct, because there some many dimension of the environment that need to
adjust to specific leadership style.

In the late 1990s Yukl came up with completely different kind of leadership three. The first one
is that democratic leadership under such leadership employees practiced and possess high degree
of fulfilment, visionary, creativeness; work in with high degree of encouragement despite leaders
close supervision; practically show high degree of association between leaders and subordinates.
The second of type of leader is oppressive leaders mostly motivated on higher amount of yield.
The third one is Laissez faire leadership and was in the contemporary world merely it considered
as most valuable while leading a team of comprising most experts and interested employees who
has outstanding track record in the past (Yukl, 1989).

The other prominent scholars were Feidler and House come up with two brandy new (at least for
their time) type of extra leadership styles those emphasized on the success of the leadership. The
first one is named deliberation more emphasized and worry for publics and relation manners and
the second one called inauguration structure emphasized and worry for yield and job behaviors
were very main role variables (Feidler and House, 1994). The focus of those two leadership were
as mentioned to the sureness and relationship, a leader produce to his fellows. While, stating
structure, on the other hand, show the degree, to which the leader assembles, guide and describe
his/her own and the fellows‟ roles as they have the partaking role concerning managerial
performance, earnings and achievement of the assignment.

Many scholars and academics expertise pronounced the three kind of leaders’ style, namely;
autocratic, democratic and laissez-faire. Under autocratic leadership there are deprived of
participating the followers and subordinates and this leader pass conclusion without feedback,
whereas under laissez-faire leadership subordinate and fellows could make the decision and there
is takes no actual headship part other than presumptuous the position and the democratic leader
admissions his fellows then accepts his decision. Further expected that all leaders could fit fall
under these of three categories.

2.2.2.5. Process Leadership Theory

12
As literature and study focused on the theory of process leadership theory pronounced that here
the focus area are the servant, the leading organization, principal focused and charismatic
leadership with others emerging every year.

Greenleaf presented servant leadership in the early 1970s. A renaissance of the conversation of
servant leadership was renowned in the early 1990s. Servant leaders were exhilarated to be
absorbed to the disquiets of the supporters and the leader ought to empathize with them take-care
of and encourage them. The leadership was communicated on a person who was by nature a
servant. The servant leader emphases on the requirements of the follower and assist them to turn
into more independent at liberty and well-informed. The servant leader is also very worried with
the disadvantaged and distinguishes them as equal (Greenleaf, 1996).

The leaders in the organizations are to be the agent of the vision of the business and not a servant
of the employee within the institution. Leaders in learning organizations simplify and develop
the vision and reflect it designate greater than one-self. The leader line up themselves or their
vision with others in the organization or community at large. These process leadership
philosophies and others that have arose often propose that the effort of leaders is to give to the
welfare of others with a concentration on some arrangement of social accountability. They acts
to be a clear development in the study of leadership.

Leadership concept has moved from biological qualities and rights, to learnt personalities and
styles, to situational and relationship types of leadership, to the function of groups and group
processes and, currently, to the communication of the team members with an stress on particular
and organizational purpose of teams and group processes and, currently, to the collaboration of
the team associates with an stress on individual and managerial ethical developments
(Yammarino, 1999).

2.2.3. LEADERSHIP STYLES

Based on the number of followers research stated that a variety of leadership styles. Depends on
the function of the leader, the followers and the situation, this are most appropriate leadership
style. In case of decision making some leaders cannot work satisfidable with a high degree of
followers” participation. In addition to, the specific situation helps determine the most effective
style of interactions and some employers lack the ability or the desire to assume responsibility.

13
To immediate solutions without consulting followers sometimes leaders must handle problems
that require. By reviewing different literature the researcher identified three types of leadership
styles.

2.2.3.1. Autocratic Leadership Style

Autocratic leadership style is centered on the boss. In this leadership the leader holds all
authority and responsibility. Tfygh2his type of style, to make decisions leaders on their own
without consulting subordinates. Communicate them to subordinates and expect prompt
implementation. Autocratic leadership style does normally have no flexibility. In this kind of
leadership style, procedures, directions and strategy are all natural additions of an autocratic
leader. Autocratic leadership, analytical there are very few situations that can actually support
Igbaekemen and Odivwri,(2015).

Autocratic leaders, are characterized as intimidate, browbeat. They tend to be distant and aloof
from their group and these leaders and decide proper division of labour from abroad and make
policies. And also this type style is gained through, demands, orders, rules, and regulations,
punishment, threat. The functions of authoritarian leadership include the roles of authoritarian
followers include adhering to the leader’s instructions without question or comment. exclusive
rule-making, task-assignment, and problem solving .

Authoritarian leadership is for new employee’s suitable situation and the need for large-scale
coordination with other groups and organizations. Authoritarian leadership they are not willing
to accept to participate in decision-making their opinions and processes for to environments in
which member’s desire. Detractor of authoritarian leadership declare that the leadership style
leads to high member disappointement, turn-over and absenteeism Gastil, (1994).

2.2.3.2. Democratic Leadership Style

In this leadership style, for making decision they are considering subordinates. This style
contradictory autocratic and centered on subordinate’s contributions. The democratic leader who
determines work projects delegate authority to other people. The character of this leadership is
the transmission of this style is active upward and downward and with concerning statistics, is
one of the most preferred leadership, Mostly favorable democratic leadership by the character of

14
courage, intelligence fairness, competence, creativity and honesty Igbaekemen and
Odivwri,(2015).

This character of leaders provide their followers choices and support. Democratic leadership,
also the same as to participative leadership, as the name indicates reflects equal participation
inclusiveness, and self-determination, that said, they are for elected positions of power not be
confused with those who carry. Democratic leaders often lack formal position and power.

Democratic leadership gains its authority through accountability, active participation,

cooperation, and delegation of tasks and responsibilities. The functions of democratic leadership
within the organization include distributing responsibility, and facilitating group deliberations.
The roles of democratic followers include readiness to take personal responsibility for
organization, accountable for their decisions, desire to maintain their group's self-determination
and freedom, take on the role of leader as needed or appropriate and work with leaders.

Democratic leadership is appropriate in particular settings such as an international association, a

democratic nation, a worker-owner corporation, a public university, a close-knit neighborhood,
or a cooperative social group or organization. These leaders are ideally shared in an organization.
Democratic leadership is distributed and changing. Within a democratic leadership climate or
environment, there will be multiple leaders and every member will be a leader at some point
during their membership in the group Gastil, (1994).

2.2.3.3. Laissez-faire Leadership Style

Laissez-faire leadership gives authority to employees. Departments or subordinates are allowed

to work as they choose with minimal or no interference (Igbaekemen and Odivwri, 2015).

Laissez-faire leaders are characterized very little guidance from leasers; literally, this type of
style complete freedom for followers to make decision. Laissez-faire leaders have few or no
authority within their group or organization.

The functions of laissez-faire leadership to appropriate decisions trusting their followers and
respectable members into the organization. The roles of laissez-faire followers include self-
assessment and problem solving. With highly trained and self-directed followers they are most

15
successful in surrounding and Laissez-faire leadership is not matched to environments in which
the members require direction Gastil, (1994).

Most leadership style highly rest upon work environment and setting of the organization before
any action performed. There are many leadership style out there and the applicability depend on
many turbulent business environment (McShane and et al., 2009). Now on Autocratic,
Democratic and Laissez-faire leadership styles are taken for this study and an effort will be made
to see if one particular style is being practiced in Medtech ethiopia.

2.3. EFFECTS OF LEADERSHIP STYLE ON EMPLOYEE PERFORMANCE

2.3.1. Autocratic style effects

Also known as authoritarian leadership, Milgron (1991) said autocratic style clearly defines the
division between leaders and workers. Type of leaders autocratic with no or little involvement
for employees to make decision. This kind of leaders is better safe, assertive and certain
responsibility for decision making to the strategy plan and company operating. Even if research
stated that autocratic leaders display less creativity than the other leadership styles.

Adair (2005) only one person has the full authority and power over the followers or workers.
They are observe should never be questioned and cannot be interrupted by any one and his
decision would be viewed and taken as the golden rule. For each discover and their followers
they construct plans are bounded to work or follow the rules. Briefly, the autocratic leader
believes to have the complete authority and full control of them as he wants. This type of
leadership style is important for timely decision.

According to Dawson (2002) the autocratic style in a short period of time may show great
results. However, excessive use of authority in the long term will deform productivity. People
oing to dissatisfied, perforate and demotivated.

Heneman and Gresham (2007) under the autocratic leadership style, remains in the hand of
leaders all capacity of decision making are centralized, as with absolutist. Initiative from the
follower’s side these leaders not acceptance any suggestion. As it not provides strong
encouragement to the managers and employees it has not been successful. This style allows
timely decision making. From their employee these leaders don’t take any type of consult. They

16
believe that leaders only take decision and either it want to follow or not employees should have
to follow only. This type of leadership may be a cause of employees demotivation because of
much inflexible.

Ittner (2002) Autocratic leadership style encourages a partial sided conversation. On account of
this the creative and leadership skills of the employees suit protective and all are involved in
repetitive work of daily activities. There is a chance of misuse and warp of employees as leaders
have the authority, this style restricts workplace communication and socialization. Where
everyone is affable and want social network, it’s important to have friendly work environment, if
a company is led by an autocratic leader it can be lead to difference of opinion and conflicts.

2.3.2. Democratic style effects

Milgron and Ittner (2002) state that most company’s beneficiary for democratic leadership style.
This style that provides guidance focuses the management and help to its team and departments
while accepting and receiving the inputs from individual team members. They are authority only
the leaders not reserve to their activities but in actual they bother about advice of employees.

Heneman and Gresham (2007) under the democratic style promote the sharing of responsibility,
the exercise of delegation and continual consultation. In this style managers suggestions and
recommendation on all major issues and decisions and effectively delegate tasks to subordinates
and give them full control and responsibility for those tasks, and motive others to become good
leaders and employee development. That led to more dedication of employee to subdivision
goals, performance to meeting time limit. Kirega (2006) evaluated worker’s views of their senior
and top leadership team and state that this style focuses on using the skills, experience, and ideas
of others. Still remains the final decision making power in the leader’s hand however, the leaders
using this style. To recognize his or her, without firstly getting they will not make major decision
the input from those that will be affected, provide proper recognition, and delegate
responsibilities.

This leadership styles can be used for any type of work project to improve the performance in
short term and long term. Debashis (2006) conclude that when organization need creative
problem solving, conducting meetings for organization or department, training people for
leadership roles and performing the day to day organizational tasks. This style provides efficient

17
team inputs and confidence to employees who will help them for meeting time limit, and
departmental goals.

2.3.3. Laissez-faire Style effects

According to Coleman (2010), the laissez-faire leader is a leader who is uninvolved in the work
of the unit. According to Mullins (2007), the manager consciously makes a decision to pass the
focus power to members, to allow them freedom of action ‘do as they think best’, and they are
not to interfere; but is readily available if help is needed. Based on the assumption liberal
leadership is that all followers are creative, aspiring responsible and ready to accept the
organization’s goals (Jooste, 2009).

Disappointment among members is common; Because of low supportive style neither the task
nor the work is advanced. Sequentially, led to creates anxiety throughout the members. This style
is very effective in groups who show high degree of cooperation, motivation, self - reliant
Fiedler argues that leadership effectiveness may be improved by changing the leadership
situation (Mullins, 2007).

2.4. EMPIRICAL REVIEW

Akram, et al. (2012) piloted examination entitle How Leadership Behaviors Affect
Organizational Performance in Pakistan. Then participants of the researchers was one thousand,
and five hundred questionnaires were dispersed to managers and another five hundred to workers
of numerous private and public sector corporations in sixty six towns through random selection.
Purposive sampling method was used in study. 2 questionnaires were designed for managers and
employees. The questionnaire were associated to leadership behaviors’ and organizational
performance. Five point Likert scale was applied. Correlation analysis and regression analysis
were applied to analyses the relationship and the effect of leadership behavior’s on performance.
SPSS version 16 was used to analyses the reliability of questions, and the reliability was checked
in terms of Cronbach’s Alpha. The discoveries concluded that leadership behaviors’ are
interconnected and have great progressive influence in employee performance.

Dalluay & Jalagat (2016) conducted a research on title Impacts of Leadership Style effectiveness
of Managers and Department Heads to Employees’ job Satisfaction and Performance on Selected

18
Small-Scale Businesses in Cavite, Philippines. The sample size used is 150. Study questionnaires
were prepared to study the special effects of leadership styles on employees’ performance and
job satisfaction. One hundred and half participants were designated from companies in Cavite,
through random sampling with Slovin formula. Data were analyzed by using weighted mean,
percentages, multiple regression and correlation coefficient. Proportions clearly were used to
examine demographic variables (gender, age, length of service and leadership styles). mean were
applied to examination questionnaires on leadership styles, and correlation and regression
analysis were applied to study the relationship between variables on leadership style, job
performance and job satisfaction. The finding concluded that corporations should constantly
making the most of leadership style which enhances employees performance and employee job
satisfactory level even though there is still rooms for improvements.

Khajeh (2018) investigate the relationship between democratic leadership, transformational

leadership and autocratic leadership style have a positive relationship with the organizational
performance with (r = 0.156, 0.265, 0.064; P<0.001) respectively. This indicates that these three
styles of leadership induce the employees to perform better and as per the level of expectations.
These leadership styles must be promoted in the organizations.

Bhargavi and Yaseen (2016) there is an obvious link between leadership and the organizational
performance. Organizations should work hard to select and hire the right people with the
acceptable levels of leadership and place them in the right places that reflect their performance.
Also, at the same time, the organization should enhance their leaders with capabilities, values
and competencies. The result shows that there is appositive relationship between the leadership
styles and the organizational performance because the reliability statistic which was given by the
SPSS was 0.522.

A researched was conducted by Widayanti & Putranto (2015) on Analyzing the Relationship
between Transformational Leadership and Transactional Leadership Style on Employee
Performance in PT.TX Bandung in Indonesia. The sample size used by the researcher is 92. The
objective of this research is to find the relationship between transactional and transformational
leadership to employee performance and the significant relationship between these two variables.
This research consists of primary and secondary data. Primary data was collected through
Multifactor Leadership Questionnaire (MLQ) based on Slovin Theory method. Secondary data

19
was collected from the office assessment of employee performance. Validity and reliability test
were used to measure quality of data. Multiple regression analysis is used to find the relationship
because it has more than one independent variable. Data was sent for pass the classic assumption
tests such as multi co linearity test, normality test, heteroscedasticity test and autocorrelation test
before multiple regression analysis. The result proved that transactional and transformational
leadership has positive relationship and it effects to employee performance either concurrently or
partially.

2.1. CONCEPTUAL FRAMEWORK

The central aim of this study is to look at the effect of leadership style on employee performance
of Medtech Ethiopia employee. Based on the objective of the study, the following conceptual
model is framed from the empirical and theoretical literature review. As it described previously
in the related literature review parts, employee performance can be affected by leadership style
and measure autocratic leadership style (ALS), democratic leadership style (DLS) and Laissez-
faire Leadership Style (LLS) as independent variable, on the other hand, employee performance
as dependent variable.

Independent variables Dependent variable

Autocratic Leadership Style

Performance of employees

 Positive feedback
Democratic Leadership Style  Service delivery time
 Team work

Laissez-faire Leadership  Meeting objective

Style

Source: Iqbal, N., Anwar, S. & Haider, N., (2015)

Fig. 2.1. Conceptual framework

20
 Chapter three

3. Research Methodology
3.1. Introduction

This chapter reviews the research methodology employed to gather and analyze the data used
in the research study, and this includes discussions on the research methods and instruments
used in this study for data gathering, capturing, validation and analysis.

3.2. Research design

The study applied descriptive and explanatory research designs. According to Cresswell(2003)
descriptive study design. In descriptive research, the indispensable emphasis is to explain
specific opinions and idea to examine the relationships and variations in the important variables
by reviewing a large sample of the population Lee and Ling, (2008).Therefore, what kind of
leadership style has been utilized and demographic information of the respondents’ were
described. On the other hand, Explanatory study (causal research design) is devoted to finding
causal relationships among dependent and independent variables which is the leadership style
and the performance of Medtech Ethiopia employees. From the hypothesis based expectations on
in what way and why variables should be interrelated. Interactions happen and might be
directional (i.e., positive or negative). In this type of research, the problems are well structured.
The researcher is facing with “causes-and-effects” problems. The central mission is to detach
such causes and to say to what magnitude they directed to such special effects.

3.3. Research approach

Quantitative approach is used because the study is based on measuring the employee
performance visa vise leadership style of Medtech Ethiopia. The quantitative method measures
variables, investigate relationships between variables, tests methods, and examine concerns for
large groups of individuals executing the method suitable for the research problem. Quantitative
approach allows for the discovery of relationships with a basis for finding reliability and validity
of the research subject. Quantitative analysis reduces issues and data to numbers, definitive in
meaning, and discovering how much and how many, by concentrating on experimentation with
predefined variables through collecting and measuring data (Snowden, 2011). A quantitative
approach is based on numbers and statistics. It is practiced to examination hypotheses, explore

21
causality, and create forecasts. It is practiced to classify statistical interactions among variables
and yields objective effects.

3.4. Target population

The target population of this study was employees of working in the Medtech Ethiopia P.L.C.
The head office were chosen from among other branch offices as the sample for this study, with
a total of 124 employees were chosen for the study.

The selection method for the survey participant sample was compatible with the research
question because the selection procedure directly targeted employees. The study was piloted on
these employed teams because they are highly influenced by the leadership styles practiced by
the management. All survey participants permanent staff and were full-time employees. The
participation of this research was volunteer.

3.5. Sample size determination

To determine the sample size and representative of the target population, the study used
statistical instrument formula. The mathematical formula is adopted from Gliem and
Gliem(2003).

𝑁
𝑛=
1 + 𝑁(𝑒)2

The study assumes that the margin of error 5% and confidence level or error free of 95%.
Using the above portrayed statistical formula, the sample size of study was determined as
follows.

124
𝑛=
1 + 124(.05)2

𝑛 = 94

n= sample size N= population e= error margin

Therefore, sample size for targeted population of the study was 94 employees.

3.6. Data collection instrument and technique

22
The best appropriate method to gather primary data is to hand out questionnaire. A five point
Likert scale questionnaire was established to deliver the participants comfort for replying the
questions according to their degree of agreement (McLeod, 2008). The Likert scale follows the
format of starting range: 1) strongly disagree; to 5) strongly agree. The preparation of the
questionnaire was grounded on the following variables; democratic leadership, autocratic
leadership, laissez-faire leadership and employee performance.

3.7. Data reliability and Validity

Reliability defines that the results of a questionnaire be steady and reliable. Validity, on the other
hand, means that the individual results of an instrument are significant and allow the researcher
to draw valid conclusions from the sample population being studied (Cresswell, 2003).
Reliability is determined by the Cronbach's alpha (α) coefficient, which is one of the popular
criteria of reliability in quantitative studies. It is measured on a scale of 0 to 1.0, and an
instrument is viewed extremely reliable if the instrument has a reliability coefficient statistic of α
> .80. The instrument is considered very reliable if α > .70, and reliable if α > .60; when α < .60,
reliability is considered poor to barely reliable. The reliability of an instrument contributes to its
validity, as a reliable instrument will measure what it is supposed to measure and not something
else. Therefore, results after consistent questionnaire was valid and more exact (Burg-Brown,
2016).

TABLE 3.1. RELIABILITY STATISTICS

variables Cronbach's Alpha N of Items

Over all .835 23
Autocratic .769 5
Democratic .902 6
Laissez-faire .679 6
Employee performance .874 6
Source: researcher’s computation and SPSS 26 output results.

As one can see in the above table 3.1, the overall Cronbach’s alpha value is 0.835. This
demonstrations indicate that data have a good uniformity in internal consistency. The highest
Cronbach’s alpha value goes to (0.902) democratic leadership style. This demonstrations show

23
that the highest uniformity in internal consistency of 5 questions. Followed by Autocratic was
the second highest Cronbach’s alpha value (0.769) which means the highest uniformity in
internal consistency of 6 questions. Laissez-faire has the lowest Cronbach’s alpha value (0.679)
which shows the data has poor reliability. The performance employee in Cronbach’s alpha value
is 0.874 which demonstrate the highest uniformity in internal consistency of 6 questions..

3.8. Data analysis and presentation

Analysis of the data is fundamental slice of the research study. The findings and conclusions
should arrive based on the analysis and interpretation of the data. Hence, data is analyzed in
accordance with the nature of data that is qualitative and quantitative. The data obtained from the
respondents were be analyzed using Statistical Packages for Social Science (SPSS) version 26.

After collecting the distributed questionnaire, data were properly organized and prepared for
codification. Following this, the coded data were fed to SPSS software program. The data were
analyzed using descriptive statistics (such as mean, standard deviation) to describe the
demographic characteristics. In addition to this, descriptive analyses have also been conducted
on the level of the different leadership style and employee performance. The data will be
presented quantitatively by using tools like percentile, tables, charts, graphs and others to
facilitate the interpretation of the results of the data.

3.9. Ethical consideration

To guarantee confidentiality and voluntary partaking of respondents a covering letter was
prepared to clarifying the purpose of the research, the discretion of the replies and directions for
completion. The questionnaire was drawn up comprising questions on the variables and
demographic data both to the supervisor as well as their employees and they were requested to
fill the questionnaire in disguise and return back them straight to the researcher.

24
 Chapter four
4. Data presentation, analysis and interpretation
4.1. Introduction

In this chapter, the study attempted to examine the Relationship between leadership style and
employees' performance: the case of Medtech Ethiopia plc. Consequently, the outcomes of the
study were offered and examined in this subdivision. The questionnaire were developed in five
scales ranging from five to one; where 5 represents Strongly agree, 4 agree, 3 Neutral, 2
disagree, and 1 strongly disagree. The study used Regression Analysis was also used to test the
effect of
independent variable on dependent variable. The collected data were presented and analyzed
using SPSS 26 software version.

4.2. Response rate

The study targeted a sample size of 94 respondents from which 69 were filled in and returned the
questionnaires making a response rate of 73.4 percent. This rate implied that the response rate
was acceptable to mark deductions for the study.

4.3. Descriptive analysis

In this analysis, the essential focus is to describe specific views or opinions. Therefore, what kind
of leadership style has been utilized and demographic information of the respondents’ were
described in this section.

4.3.1. Respondents information

Data on respondents’ demographics were collected and analyzed. Variables included were
gender, age, educational background and their work experience.

TABLE 4.1. RESPONDENTS GENDER DISTRIBUTION .

Cumulative
Frequency Percent Valid Percent Percent
Male 42 60.9 60.9 60.9
Gender Female 27 39.1 39.1 100.0
Total 69 100.0 100.0
Education 92.8
BA` 64 92.8 92.8

25
 100.0
MA/MSc 5 7.2 7.2
Total 69 100.0 100.0
63.8
less than 5 yrs 44 63.8 63.8
89.9
5-9yrs 18 26.1 26.1
Experience
100.0
above 15 yrs 7 10.1 10.1
Total 69 100.0 100.0
Source: Questionnaire and SPSS 26 output results.

The above table 4.1 presents the gender composition of the respondents out of the total 69
respondents, 42 (60.9 percent) of them were male and 27 (39.1 percent) of them were female.
This assumes that in general, the boundary between the genders is negligible. This result
depicted that there no gender bias in representation of male and female in the study.

In addition, table 4.1 presents education level of sample respondents’. And illustrate that the all
of the respondents 64 (92.8%) were bachelor’s degree holders while 5(7.2%) were second degree
holder. This illustrate that majority of the respondents were in state of providing well response
about their performance and their observation of the leadership style of the immediate
supervisor.

The respondents also requested to show their work experience, the subjects were divided into
four groups according to the number of years’ service with the organization (group1: less than 5
year, group 2: 5 to 9 years, group3: 10 to 14 years, and group 4: 15-19years, group 5: more than
20 years). The number respondents whose service in the Medtech Ethiopia below 5 years is 44
(63.8 percent) and 18 (26.1 percent) respondents have between 5-9 year service years.
Furthermore, 7 respondents whose service in the Medtech Ethiopia was above 15 years.

4.3.2. Descriptive analysis of Leadership Style

This part of the study attempt to illustrate the result of the descriptive analysis of leadership
styles. Here the three typical kind of leadership styles were examined. The first one is autocratic
with six statement to assess and followed by democratic leadership also with six statements to be
assessed. The third one is laissez-faire leadership with six statements to be examined.
Descriptive analysis were applied to measure the practice level of each types of leadership. In
order to know the extent of leadership style that is practiced in the case organization the mean
value and standard deviation were calculated analyzed and interpreted. The scale applied in this

26
assessment was grounded on the five scale of measurement by Liker scale and also named after
Liker. The respondent has a range of response from strongly disagree labeled as one (1) to
strongly disagree labeled as (5). The findings of descriptive analysis are arranged based on
research objective and presented in following tables.

4.3.3. Autocratic leadership style

Table 4.2. Autocratic leadership style

N Mean Std. Deviation
My manager believes employees need to be supervised closely, or they are 69 3.03 1.098
not likely to do their work.

Usually, my supervisor believes that employees must be given rewards or 69 3.78 .764
punishments in order to motivate them to achieve organizational objectives.

My manager believes most employees feel insecure about their work and 69 3.19 1.228
need direction.

My manager believes the leader is the chief judge of the achievements of 69 3.06 1.316
the members of the group.

My manager believes effective leaders give orders and clarify procedures. 69 3.23 1.087

3.258 1.098
Pooled mean
Source: Questionnaire and SPSS 26 output results.

The statement that most of the time, the supervisor believes that employees must be given
rewards or punishments in order to inspire them to accomplish managerial objectives had the
highest mean of 3.78 and standard deviation of .764. The question of ‘my manager believes
effective leaders give orders and clarify procedures’ which had a mean of 3.23 and standard
deviation of 1.087. The statement with the lowest mean of 3.03 and standard deviation of 1.098
was’ my manager believes employees need to be supervised closely, or they are not likely to do
their work’.

27
Generally the autocratic leadership that examined through six items had registered mean value of
3.25 and a standard deviation of 1.098.This mean value is fall under the average value of mean.
This value illustrate that the disagreement level of the respondents that their immediate leader or
manager indeed not practiced authoritative leadership style. From this result one could conclude
the autocratic leadership style is not practiced in Medtech Ethiopia factory.

4.3.4. Democratic leadership style

Table 4.3. Democratic leadership style

N Mean Std. Deviation
My manager engages employees to be a part of the decision-making process. 69 4.29 .788

My manager believes providing guidance without pressure is the key to being a 69 3.74 .934
good leader.

My manager believes most workers want frequent and supportive communication 69 3.91 1.081
from their leaders.

My manager needs to help subordinates accept responsibility for completing their 69 3.75 .914
work.

My manager believes it is the leader’s job to help subordinates find their 69 3.97 .874
“passion.”

My manager believes people are basically competent and if given a task will do a 69 3.46 1.290
good job.

Pooled mean 3.85 0.980

Source: Questionnaire and SPSS 26 output results.

As one could see from the above table 4.3 the mean and standard deviation value of the
respondents’ as examined by (6) six aforementioned statements that could describe the
democratic leadership style.

The statement that ‘My manager engages employees to be a part of the decision-making process’
had the highest mean of 4.29 and standard deviation of .788 while the question with the lowest
mean of 3.46 and standard deviation of 1.290 was that ‘My manager believes people are
basically competent and if given a task will do a good job.

28
Generally the democratic leadership that examined through six items had registered mean value
of 3.85 and a standard deviation of 0.98. This value illustrate that the agreement level of the
respondents that their immediate leader or manager indeed practiced democratic leadership style.
From this result one could conclude the democratic leadership style is the most practiced
leadership style in Medtech Ethiopia factory.

4.3.5. Laissez-faire Leadership Style

Table 4.4. Laissez-faire leadership style

Items N Mean Std. Deviation
In complex situations, my manager let subordinates work problems out on 69 3.51 1.038
their own.

My manager requires staying out of the way of subordinates as they do their 69 3.49 .851
work.

As a rule, my manager allows subordinates to appraise their own work. 69 3.43 1.064

My manager gives subordinates complete freedom to solve problems on 69 3.72 1.349

their own.

My manager believes in most situations, workers prefer little input from the 69 3.58 .946
leader.

In general, for my manager it is best to leave subordinates alone. 69 3.51 1.038

Pooled mean 3.54 1.047

Source: Questionnaire and SPSS 26 output results.
As one could see from the above table 4.4 the mean and standard deviation value of the
respondents’ as examined by (6) six aforementioned statements that could describe the laissez
faire leadership style.

The statement that states my manager gives subordinates complete freedom to solve problems on
their own had registered at most mean value of 3.72 and S.D is 1.34. Whereas the statement that
describe leaders behavior by stating that as common the manager allows subordinates to appraise
their own work was score the lowest mean value i.e. 3.43 and S.D 1.064.

29
Generally the Laissez faire leadership that examined through six items had registered mean value
of 3.54 and a standard deviation of 1.047. This value illustrate that the agreement level of the
respondents that their immediate leader or manager indeed practiced laissez faire leadership
style. From this result the researcher could conclude that Laissez faire leadership leadership style
is the reasonable practiced leadership style in Medtech Ethiopia factory.

4.3.6. Employees performance

Table 4.5. Employees’ own performance rating

N Mean Std. Deviation
Customers have a positive feedback after they receive the service 69 3.67 1.107

The service deliver processes takes short time 69 3.07 1.310

I actively participated in work meetings and training 69 4.12 .557

I was able to perform my work well with minimal time and effort 69 3.70 1.102
My supervisor is a team player 69 4.03 1.200

I am given the needed support by my supervisor to builds team spirits 69 3.55 1.207
3.69 1.08
Pooled mean
Source: Questionnaire and SPSS 26 output results.

There were 6 question items directed toward measuring the performance of employees by way
of self-reporting. The respondents have been asked questions each of which was gauged based
on the level of agreement the respondents had. To begin with highest mean score it said I
actively participated in work meetings and training with mean score of 4.12 and S.D= 0.557.
Moreover, the lowest mean score 3.07 S.D= 1.31 is for the statement ‘the service delivery
process takes short time’. However, the all over employee performance is above mid value of
mean i.e. 3.69 S.D = 1.08.

4.3.7. Summary of descriptive analysis

In above analysis, the variable is rated and ordered by denoting to the values of standard
deviation and mean. The highest value of standard deviation from mean indicates that the
independent variables practice mostly in Medicate Ethiopia.

30
Table 4.7. Summary of descriptive analysis
Variables Pooled Mean Std. dev.
1 Autocratic leadership style 3.258 1.098
2 Democratic leadership style 3.85 0.980
3 Laissez-faire Leadership style 3.54 1.047
Source: Questionnaire and SPSS 26 output results.

Founded on the summery table above, democratic leadership style has the uppermost mean value
and standard deviation i.e. 3.85 and S.D 0.980 respectively. This illustrate that democratic
leadership style is highly practiced in Medtech Ethiopia. Laissez-faire leadership style has
registered the second most highest mean value i.e.3.54 corresponding with standard deviation
value of 1.047 indicating that laissez-faire leadership style is fairly practiced in Medtech
Ethiopia. Autocratic leadership style has registered the higher mean value 3.258 corresponding to
standard deviation of 1.098. This denote that autocratic leadership style is poorly practiced in
Medtech Ethiopia.

4.4. Inferential Analysis

4.4.1. CLASSICAL LINEAR REGRESSION MODEL ( CLRM) ASSUMPTIONS

In the descriptive statistics part, the study showed that the mean, standard deviation, minimum
and maximum values of the dependent and explanatory variables for each variable. However,
this section provides test for the classical linear regression model (CLRM) assumptions such as
mean value of the error term is to be average value of the error term, normality, Linearity test
and multi collinearity tests.

As far as the assumptions of classical linear regression model hold true, the coefficient
estimators of both α (constant term) and β (independent variables) that are determined by OLS
will have a number of desirable properties, and commonly acknowledged as (BLUE).
Accordingly, before applying the model for testing the significance of the slopes and analyzing
the regressed result, average value of the error term, normality, Linearity test and multi collinearity
tests were made for identifying misspecification of data if any so as to fulfill research quality.

31
4.4.1.1. TEST FOR AVERAGE VALUE OF THE ERROR TERM IS ZERO
The primary supposition obligatory is that the normal value of the errors is zero. Actually, if a
constant term is comprised in the regression calculation, this assumption will not ever be
disrupted. Therefore, since the constant term (i.e. α) was encompassed in the regression
calculation, the average value of the error term in this study is estimated to be zero.

4.4.1.2. NORMALITY TEST

This test was applied to control whether a data is well-modeled by a normal distribution or not,
and to calculate in what way likely an underlying random variable is designate normally
distributed. If the residuals are normally distributed, the histogram should be bell-shaped.

FIG. 4.1. NORMALITY TEST

Source: researcher’s computation and SPSS 26 output results.

As shown in the above fig. 4.1 the histogram exhibited well bell-shaped structure. Therefore, the
underlying random variable and the residuals were normally distributed.

4.4.4.3. LINEARITY TEST

32
FIG. 4.2. LINEARITY TEST
Source: researcher’s computation and SPSS 26 output results.

There are a number of ways to check a linearity relationship exists. This study applied normal p-
p plot in order to check linearity and visually inspect the scatter plot. As shown in above fig. 4.2
and the points show linearity.

4.4.4.4. MULTI -COLLINEARITY TEST

The other test which was conducted in this study is the multi-co linearity test, this help to
identify the correlation between explanatory variables and to avoid double effect of independent
variable from the model. If an explanatory variable has strict linear amalgamation with the other
independent variables, then one can say the model suffers from perfect co linearity, and its might
not be estimated by OLS (Brooks 2008). This assumption is concerned with the relationship exist
between explanatory variables. There is no consistent argument on the level of correlation that
causes multi-co linearity. In order to examine the possible degree of multi-co linearity among the
explanatory variables, correlation matrixes of selected explanatory variables were presented
below.

The next table, described correlation among explanatory variables. A correlation is a distinct
number that defines the point of relationship between two variables. According to Gujarati
(2004), the standard statistical method for analyzing data for multi collinearity is examining the
explanatory variables correlation coefficients; condition index and variance inflation factor.

33
Consequently, in this study correlation matrix and variance inflation factor for all of the variables
shown below in the table had been estimated.

TABLE 4.8. MULTI COLLINEARITY TEST

Collinearity Statistics
Tolerance VIF
LFLS .714 1.401
ALS .953 1.049
DLS .688 1.453
mean .766 1.301

Source: researcher’s computation and SPSS 26 output results.

TABLE 4.9.CORRELATIONS

LFLS ALS DLS EP

**
LFLS 1 -.104 .535 .434**
ALS -.104 1 -.215 -.106
DLS .535** -.215 1 .679**
EP .434** -.106 .679** 1
Source: researcher’s computation and SPSS 26 output results.

There was no correlation above 0.70, 0.75 and 0.90 according to Kennedy (2008), Malhotra
(2007) and Hair et al (2006) respectively, it can be concluded in this study that there was no
problem of multi-co linearity, thus enhanced the reliability for regression analysis.

TABLE 4.10. SUMMARY OF THE MODEL

Model R Square Adjusted R Square Std. Error of the Estimate

1 .670 .645 .35696
a. Predictors: (Constant), DLS, ALS, LFLS
Source: researcher’s computation and SPSS 26 output results.

In the above table 4.10 shown and illustrate that the amount variation in dependent variable i.e.
employee performance in relation to independent variable i.e. the leadership style. In light of this
the variation was determined by the value of R2 and Sig. value. Accordingly the value of
adjusted R square value is 0.645 this show that leadership style accounts about 64.5 percent

34
variation of and of employee performance whereas the remaining 35.5 percent variation cause by
other variables that is not include in this study.

TABLE 4.11. ANALYSIS OF VARIANCE

Model Sum of Squares df Mean Square F Sig.
1 Regression 7.332 3 2.444 19.182 .000b
Residual 8.282 65 .127

Total 15.615 68

a. Dependent Variable: EP
b. Predictors: (Constant), DLS, ALS, LFLS
Source: researcher’s computation and SPSS 26 output results.

In the table 4.11 above show that the analysis of variance. It is also identified as model fit marks.
The interest in this table are the F-statistics and its associated sig. value. The results show that
the F-statistics is significant at Sig = 0.000. The null hypothesis of the model was that model has
no power to predict. However, the result pronounced that the null hypothesis can be rejected and
accept the alternative hypothesis i.e. model has power to predict employees’ performance from
leadership style scores significantly.

To forecast the effect of leadership styles (independent variables) on employees’ performance

(dependent variable) multiple regression analysis was conducted. The result are accessible in the
subsequent table 4.12.

The model that used to estimate the effects of leadership style on employee performance would
be the following;

𝑷𝒆𝒓𝒇𝒐𝒓𝒎𝒂𝒏𝒄𝒆 = 𝑪 + 𝜷𝟏(𝑳𝑭𝑳𝑺) + 𝜷𝟐(𝑨𝑳𝑺) + 𝜷𝟑(𝑫𝑳𝑺) + 𝜺

TABLE 4.12. REGRESSION ANALYSIS

Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 2.021 .320 6.319 .000
LFLS .050 .055 .098 .917 .363

ALS .026 .059 .041 .445 .658

DLS .370 .063 .635 5.835 .000
a. Dependent Variable: EP
Source: researcher’s computation and SPSS 26 output results.

35
 𝐏𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 = 𝟐. 𝟎𝟐𝟏+ . 𝟎𝟓(𝐋𝐅𝐋𝐒)+ . 𝟎𝟐𝟔(𝐀𝐋𝐒)+. 𝟑𝟕(𝐃𝐋𝐒)

As shown in table 4.12 above, the coefficient estimate of laissez-faire leadership style (LFLS),
and authoritative leadership style (ALS) and democratic leadership style (DLS) were positively
related with employee performance. However, only democratic leadership style (DLS)
statistically significant at 1 percent significance level. The positive sign of the coefficient
estimate with 1 percent significant level indicate the existence of strong direct relationship
between employee performance and democratic leadership style.

On the other hand, laissez-faire leadership style (LFLS) and authoritative leadership style (ALS)
has positive and statistically insignificant relation with employee performance. Thus, it can be
concluded that, an increase on those variables (LFLS) and (ALS) lead to increase in employee
performance of Medtech Ethiopia but not statistically significant.

4.5. Discussion of findings

This section will discuss findings of the study in line with other empirical study findings and
shows extent of similarity and difference of findings.

4.5.1. Autocratic leadership style

As it is clearly stated in the above table 4.12. The autocratic leadership style has score β = 0.26
and Sig. value of 0.658 which is higher than the acceptance level. Hence autocratic leadership is
found to have a positive insignificant effects on employee performance.

This findings congruent with Jayasingam & Cheng (2009) that specified this type of leaders
directs all movements and decisions all the while limiting the innovativeness of personnel.
Consequently, this leader attempt to restrict the performance of workers. Because small chance
were provide to employees to make recommendations (Amanchukwu, et al., 2015). An autocratic
leader typically makes assortments on the basis of their own decisions and opinion that seldom
comprise follower’s information and these leaders have complete power over the workers
(Zareen, et al., 2015

This finding is similar to Jayasingam & Cheng (2009) they found out that autocratic authority
yields negative influence on employee performance. This has been supported by Puni, et al.
(2014) and Akor (2014) research.

36
4.5.2. Democratic leadership style

As it is clearly stated in the above table 4.12. The democratic leadership style has score β = 0.370
and Sig. value of 0.000 which is lower than the acceptance level. Hence democratic leadership is
found to have a positive and significant effects on employee performance.

This result is consistence to Ojokuku, et al. (2012) the study found out in this type of leadership
style, employees were encouraged to feel that the organization is there one and have higher
responsibility with slight guidance bas a resultadvance organizational efficiency. This had been
approved by Iqbal, et al. (2015) and Bhatti et. al. (2012) research. This leadership encourages
creativity, group work, and people are often being participated in work that lead to increased
performance (Verba, 2015). Such kind of leaders makes no recommendation, though they query
the ideas of others (Iqbal, et al., 2015). This leadership advocate all group fellows to take part to
make final decision and make all process to reach their objectives (Trivisonno & Barling, 2016).

4.5.3. laissez faire leadership style

As it is clearly stated in the above table 4.12. The laissez-faire leadership style has score β = 0.05
and Sig. value of 0.363 which is lower than the acceptance level. Hence laissez-faire leadership
is found to have a positive but insignificant effects on employee performance.

As literatures suggest that this leader avoids or does not interfere with the work assignments or
may entirely avoid responsibilities and does not guide or support the followers. This leader's
style is associated with displeasure, fruitfulness less, and (Limsila & Ogunlana, 2008).
According to Morreale (2002), the manager miscarry to lead the team, does not achieve the duty
as a leader. This style leaders uphold a hands-off method and are infrequently participated in
decision-making and not giving any guidance and direction.

This finding is dissimilar to a study conducted by Chaudhry & Javed (2012) the result support
that there is relationship between laissez faire leadership and employee performance. This had
been reinforced by Nuhu (2010) and Sougui, et al. (2016) research.

37
 Chapter five
5. Summery, conclusion and recommendations
5.1. Introduction

As far as this the preceding chapter offered descriptive analysis and observed the result of the
regression of all independent variables in contradiction of the theories and the researcher
expectations.

5.2. Summary of major findings

The main objective of this study was to investigate the effect of leadership style on employee
performance of Medtech Ethiopia. In order to achieve the research objective and questions, the
data were collected from the working groups because they are most affected by the leadership
styles used by the management. All survey participants were permanent staff and full-time
employees. The results of the study are discussed by analyzing the results of different sources
such as questionnaire, as well as report review document. The data presentation and analysis
collected from both primary and secondary sources was analyzed using themes from research
questions and objectives. The collected raw data were categorized, edited, organized and
analyzed using quantitative methods. All the instrument reliability were tested and found the
overall Cronbach’s alpha value is 0.835. the value indicate that the instrument have a noble
reliability in internal consistency. In this study that there was no problem of multi-co linearity,
this enhanced the reliability for regression analysis. The quantitative data was presented in tables
and figures this is the way the data were analyzed and presented.

In order to meet the first research objective i.e. which type of leadership prevail the most. The
study conducted descriptive analysis and found out, the autocratic leadership that examined
through six items had registered mean value of 3.25 and a standard deviation of 1.098.This mean
value is fall under the average value of mean. This value illustrate that the disagreement level of
the respondents that their immediate leader or manager indeed not practiced authoritative
leadership style. Democratic leadership that examined through six items had registered mean
value of 3.85 and a standard deviation of 0.98. This value illustrate that the agreement level of
the respondents that their immediate leader or manager indeed practiced democratic leadership

38
style. The Laissez faire leadership that examined through six items had registered mean value of
3.54 and a standard deviation of 1.047. This value illustrate that the agreement level of the
respondents that their immediate leader or manager indeed practiced laissez faire leadership style

Autocratic leadership style (ALS) has positive relation with employee performance of Meditech
Ethiopia (β = 0.236 and P = 0.658). However, the relation is not statistically significant. The
positive sign of the coefficient estimate indicate the existence of direct relationship between
autocratic leadership style (ALS) and employee performance (EP).

Democratic leadership style (DLS) has positive relation with employee performance of Meditech
Ethiopia (β = 0.370 and P = 0.000). Furthermore, the relation is statistically significant. The
positive sign of the coefficient estimate indicate the existence of direct and strong relationship
between democratic leadership style (DLS) and employee performance (EP).

Laissez-faire leadership style (LFLS) has positive relation with employee performance of
Meditech Ethiopia (β = 0.05 and P = 0.363). However, the relation is statistically insignificant.
The positive sign of the coefficient estimate indicate the existence of direct relationship between
Laissez-faire leadership style (LFLS) and employee performance (EP).

5.3. Conclusion

Based on the data analysis and summary of major findings the following conclusion were
forwarded based on research objective and questions:

In order to meet the first research objective i.e. which type of leadership style prevail the most?
The study conducted descriptive analysis and found out that the Medtech Ethiopia practiced all
the three types of leadership in different degree. However, it can be concluded that democratic
leadership style is the most practiced leadership style by immediate supervisors at Medtech
Ethiopia. In addition, laissez-faire leadership style is practiced in moderate level.

Autocratic leadership style has positive effect on employee performance. The result show that
the employees’ performance would enhanced when autocratic approach is practiced but
statistically insignificant.

Democratic leadership style is an essential leadership style, which advances work execution and
employees’ performance. Employees favored democratic leadership style over autocratic

39
leadership and laissez faire leadership style subsequently the most elevated mean score of the
employee performance measurement went to democratic leadership style than transactional
autocratic leadership and laissez faire leadership style. Thus, it can be concluded that, an increase
on democratic leadership style (DLS) lead to increase in employee performance (EP) of Medtech
Ethiopia.

Laissez-faire leadership style has positive effect on employee performance. Medtech Ethiopia
employee performance had been enhanced while Laissez-faire leadership style is practiced
however it is not statistically significant

5.4. Recommendations

Based on the summary of major findings and conclusion, the following recommendations were
forwarded based on research objective and questions;

 In respect of the above conclusion, the democratic leadership style is found practice more
in Medtech Ethiopia would further empower their employees by developing teams and
affording some measure of power and authority to their employees. In this way, personnel
would initiate their abilities, feel part of an organization and perform excellently for the
organization.

 Since Laissez fair leadership style is practiced moderately following democratic

leadership, Medtech Ethiopia would immediately reduce the Laissez fair leadership
practices. So as to reduce fails to lead the team, ineffective leadership, and the leader
maintain a hands-off approach and are rarely involved in decision-making and
contributing any guidance and direction unless in a situation where it is necessary.

 The study found out that Autocratic leadership style and Laissez-fair Leadership style has
low impact but democratic leadership has relatively higher impact on employee
performance in the case of Meditech Ethiopia P.L.C. Therefore, the management of
Meditech Ethiopia needed to foster democratic leadership style as it has its own impact
on enhancing organizational performance.

40
  It should be noted that there is relationship between employee performance (aggregately
it become organizational performance) and leadership style. Therefore, the management
of Meditech Ethiopia has to make various efforts to improve leadership style in order to
enhance organizational performance.

Generally, the researcher recommended that the most suitable leadership style be contingent on
the purpose of the leader, the employees and the conditions. Some leaders cannot work easily
with a high degree of employee contribution in decision making. Some employers lack the
capacity to shoulder duty. Furthermore, the exact issues helps control the most effective style of
relations. Sometimes leaders must hold problems that call for instant solutions devoid of
referring employees.

41
Reference

Adair J (2005). Not bosses but leaders: How to lead the way to success. MPG book
Limited.

Akor, P. U., (2014). Influence of Autocratic Leadership Style on the Job Performance of
Academic Librarians in Benue State. Journal of Educational and Social Research, 4(7), pp. 148-
152.

Akram, M., Alam, H. M., Ali, L. & Mughal, M. M., (2012). How Leadership Behaviors
Affect Organizational Performance in Pakistan. Journal of Economics and Behavioral Studies,
4(6), pp. 354-363.

Armstrong, M., Taylor & S. (2014). Armstrong's handbook of human resource

management practice. Kogan Page Publishers.

Bass, B. (1997). Full range leadership development: manual for the Multifactor
Leadership Questionnaire, Mind garden, Palo Alto, Calif.

Bennet and Durkin (2003). Effects of organizational change on employee psychological

attachment: An exploratory study. Journal of Managerial Psychology

Bhatti, N. et al., (2012). The Impact of Autocratic and Democratic Leadership Style.
International Business Research, 5(2), pp. 192-201.

Burns, J. M. (1978). Leadership. New York, NY: The Free Press.

Chaudhry, A. Q. & Javed, H., (2012). Impact of Transactional and Laissez Faire
Leadership Style on Motivation. International Journal of Business and Social Science, 3(7), pp.
258-264.

Chi, Lan, & Dorjgotov, (2012). The moderating effect of transformation leadership on
knowledge management and organizational effectiveness.

Coleman, P. (2010). Management Briefs, Management and Leadership Theory Made

simple, Venus Publishing ApS.

42
 Cresswell, J. (2003). Research design: Qualitative, Quantitative and mixed methods
approaches (2ned.).Thousand Oaks, CA: Sage.

Dalluay, D. V. S. & Jalagat, D. R. C. (2016). Impacts of Leadership Style Effectiveness

of Manager sand Department Heads to Employees’ Job Satisfaction and Performance on
Selected Small Scale Businesses in Cavite, Philippines. International Journal of Recent
Advances in Organizational Behavior and Decision Sciences (IJRAOB), 2(2), pp. 734-751.

Dobbins and Platz (1986). Six differences in leadership: how real are the, Academy of
Management Review?

Duckett .H. & Macfarlane, E. (2003). Emotional Intelligence and Transformational

leadership in Retailing Leadership & Organization Development Journal, Vol .24, pp.309-317.

Ekvall & Arvonen, (1991). Leadership style decision making style and motivation
profile.

Feidler, F., & House, R. (Eds.) (1994). Leadership theory and research: A report of
progress.

Fiedler, F.E. (1967). A Theory of Leadership Effectiveness. Mc Graw-Hill Book

Company, New York.

Gastil, J., (1994). A Definition and Illustration of Democratic Leadership. Human

Relations, 47(8), pp.953-975.

Gliem, J. A., & Gliem, R. R. (Eds.). (2003). Calculating, Interpreting, and Reporting
Cronbach's Alpha Reliability Coefficient for Likert-Type Scales. Columbus, OH: Midwest
Research-to-Practice Conference in Adult, Continuing, and Community Education.

Greenleaf (1977). Servant Leadership: A Journey into the Nature of Legitimate Power
and Greatness (25th anniversary ed.). New York: Paulist Press.

Greenleaf, R. (1996). On becoming a servant-leader. San Francisco; Jossey-Bass

Publishers.

Harris, A. (2007). Distributed leadership and organizational change: Reviewing the

evidence. Journal of Educational Change, 8(4), pp. 337-347.

43
 Heneman RL, Gresham MT (2007) the effects of changes in the nature of work on
compensation. Ohio State University, USA.

Igbaekemen, G. O., (2015). Impact of Leadership Style on Organization Performance: A

Strategic Literature Review. Public Policy and Administration Research, 4(9), pp. 126-136.

Iqbal, N., Anwar, S. & Haider, N., (2015). Effect of Leadership Style on Employee
Performance. Arabian Journal of Business and Management Review, 5(5), pp. 1-6.

Ittner C, Larcker (2002). Determinants of performance measure choice in work incentive

plans. Sunrise printery, Chicago, USA.

Kirega VPG (2006). Kampala City handbook, Gava associated services, Kampala Uganda.

Kirega VPG (2006). Kampala City handbook, Gava associated services, Kampala
Uganda.

Liya G.Mariam (2018). Effect of leadership style on employess performance at

wegagen bank s c.

MacGregor Bums, (2003). Transformational leadership the pursuit of happiness.

McLeod, S. A. (2008). Likert Scale Simply Psychology. Retrieved

fromhttps://www.simplypsychology.org/likert-scale.html

Merton, R. K. (1969). The social nature of leadership. The American Journal of Nursing,
69(12), 2614. doi:10.2307/3421106

Milgron P, and Holmstrom B. (1991). Incentive contracts, asset ownership and job
design. Prentice Hall printer, London.

Mullins, A. (2007). Management and Organizational Behavior. 8th Edition. England:

Pearson Education Limited.

Obiruwu A. (2011). Leadership styles and their effect on organizational performance

Ojokuku, R., Odetayo, T. & Sajuyigbe, A., (2012). Impact of Leadership Style on
Organizational Performance: A Case Study of Nigerian Banks. American Journal of Business

44
and
Management, 1(4), pp. 202-207.

Prentice, W. C. H. (2004). Understanding leadership. Inside the mind of the leader, 102-
109. Retrieved from https://hbr.org/2004/01/understanding-leadership

Snowden, D. C. (2011). The relationship between leadership and job satisfaction in call
centers in the electric utility industry (3468107) (Doctoral dissertation). Retrieved from ProQuest
Dissertations and Theses database. (3468107)

Sougui, H. M., Osman, A., Manaf, A. H. A. & Abdullah, M. S., (2016). Leadership styles
affecting the individuals’ commitment: a study of the public university in northern state of
Malaysia. Asian Journal of Social Science sand Humanities, 5(1), pp. 80-86.

Stogdill, R. M. (1974). Handbook of leadership: A survey of theory and research. New

York: Free Press.

Trivisonno, M. & Barling (2016). Organizational leadership and employee commitment.

Handbook of Employee Commitment. Vol. 22 pp. 305.

Yammarino, F. J. (1999). CEO charismatic leadership: Levels-of-management and

levels-of analysis effects. Academy of Management Review, 24, 266-286.

Verba & S. (2015). Small groups and political behavior: A study of leadership. Princeton
University Press.

Yukl, G. (2001). Leadership in organizations. Upper Saddle River, NJ: Prentice-Hal.

Zenger, John J. and Joseph Folkman (2002). The extraordinary leader: Turning good
managers into great leaders. New York, New York: McGraw Hill.

Zareen, M., Razzaq, K. & Mujtaba, B., (2015). Impact of Transactional,

Transformational and Laissez Faire Leadership Styles on Motivation: A Quantitative Study of
Banking Employees in Pakistan. Public Organization Review, 15(4), pp. 531-549.

45
 Appendix I

Questionnaire

Dear Respondent:

I would like to express my sincere appreciation for your generous time and honest prompt
responses.

Objective: This questionnaire is designed to collect information about the existing practices of
leadership style in your organization and entitled: The Impact of Leadership Style on Employee
Performance of Medtech Ethiopia. The information that you respond shall be used as primary
data in my case research which I am conducting as partial requirements of master degree at
Addis Ababa University collage of commerce.

Therefore, the information gathered will be used fully and with due attention for academic
purpose only and I would like to assure you that data collected will not be misused any ways.

Thank you in advance

For your more information

Hildana Tadesse

+251 911 280 783

46
General instructions,

There is no need of writing your name. In all cases where answer options are available please

tick (√)in the appropriate box. For questions that demand your opinion, please try to honesty
describe as per the questions on the space provided.

Answer the following questions by putting the symbol (√) in the boxes in front of your choice or
write in the space provided.
1. Specify your Gender;
Male Female

2. Specify your educational level;

Diploma Bachelor’s Degree Master’s Degree
PhD (Doctorate Degree)

3. Specify your years of work experience in the organization;

< 5years 5-9 years 10-14 years 15-19years

>20 years

Laissez faire style 1 2 3 4 5

In complex situations, my manager let subordinates work
1
problems out on their own.
My manager requires staying out of the way of subordinates as
2
they do their work.
As a rule, my manager allows subordinates to appraise their own
3
work.
My manager gives subordinates complete freedom to solve
4
problems on their own.
My manager believes in most situations, workers prefer little
5
input from the leader.
6 In general, for my manager it is best to leave subordinates alone.
Autocratic Leadership Style
7 My manager believes employees need to be supervised closely,
or they are not likely to do their work.
8 As a rule, my supervisor believes that employees must be given

47
 rewards or punishments in order to motivate them to achieve
organizational objectives.
9 Customers have a positive feedback after they receive the
service
10 The service deliver processes takes short time
11 My manager believes effective leaders give orders and clarify
procedures.
Democratic Leadership Style
12 The manager let employees participate employees in decision
making
13 In my manager view to be a good leader given guidance without
pressure
14 My manager believes most and two way communication from
their leaders.
15 My manager needs to help subordinates accept responsibility for
completing their work.
16 My manager believes it is the leader’s job to help subordinates
find their “passion.”
17 The leader view employees initially competent enough and
given
Employee Performance scale
18 Customers have a positive feedback after they receive the
service
19 The service deliver processes takes short time
20 I actively participated in work meetings and training
21 I was able to perform my work well with minimal time and
effort
22 My supervisor is a team player
23 I am given the needed support by my supervisor to builds team
spirits

48