ARSI UNIVERSITY

SCHOOL OF GRADUATE STUDIES

THE EFFECT OF LEADERSHIP STYLE ON EMPLOYEE

MOTIVATION IN THE CASE OF Adama City Adminstration

By
Belete Beriso

MARCH 2024
Adama, Ethiopia
 THE EFFECT OF LEADERSHIP STYLE ON EMPLOYEE
MOTIVATION IN THE CASE OF Adama City Administration
.

By
Belete Beriso

A THSIS SUBMITTED TO ARSI UNIVERSITY SCHOOL OF

GRADUATE STUDIES IN PARTIAL FULFLIMENT OF THE
REQUIRMENT FOR THE DEGREE OF MASTER OF BUSINESS
ADMINSTRATION (MBA)

MARCH,
2024
Adama, ETHIOPIA
 ARSI UNIVERSITY

SCHOOL OF GRADUATE STUDIES

MBA PROGRAM

THE RELATIONSHIP BETWEEN LEADERSHIP STYLE AND EMPLOYEE

MOTIVATION IN Adama City Adminstration THE CASE OF Adama .

By: Belete Beriso

Id no: SGS/0187/2012A

Approved by Board of Examiners

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

Dean, Graduate Studies signature

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

Advisor signature

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

External Examiner signature

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Internal Examiner signature

DECLARATION

I declare that thesis (THE EFFECT OF LEADERSHIP STYLES ON MOTIVATION IN THE

CASE OF Adama City Administration ) is my original work. It is not submitted for a degree in
any other universities or college.

Name: Belete Beriso

Signature………………………. Date……………………

MARCH,
2024
Adama, ETHIOPIA
ENDORSEMENT

This thesis has been submitted to St Mary’s university, School of Graduated Studies
for examination with my approval as university of advisor.

Zemenu Ayinadis (Asst.pro) --------------

Advisor Signature

MARCH,
2024
Adama, ETHIOPIA
 Table of Contents

ACKNOWLEDGMENTS............................................................................................................................. IV
ABBERVATIONS......................................................................................................................................... V
LIST OF TABLES........................................................................................................................................ VI
LIST OF FIGURES..................................................................................................................................... VII
ABSTRACT.............................................................................................................................................. VIII
CHAPTER ONE............................................................................................................................................. 1
1.1 Background of the Study....................................................................................................................... 1
1.2 Background of the organization............................................................................................................. 4
1.2 Statement of the problem....................................................................................................................... 5
1.3 Research Questions............................................................................................................................... 6
1.4 Objective of the Study........................................................................................................................... 6
1.4.1 General objective of the study......................................................................................................... 6
1.4.2. Specific objective of the study....................................................................................................... 6
1.5. Significance of the Study...................................................................................................................... 7
1.6. Scope of the study................................................................................................................................ 7
1.6.1. Geographical Scope....................................................................................................................... 7
1.6.2. Conceptual scope........................................................................................................................... 7
1.6.3. Methodological Scope................................................................................................................... 7
1.7. Limitation of the study..................................................................................................................... 8
1.8. Definition of key terms......................................................................................................................... 8
1.9. Organization of the study...................................................................................................................... 9
CHAPTER TWO.......................................................................................................................................... 10
LITERATURE REVIEW.............................................................................................................................. 10
2.1 THEORETICAL LITERATURE REVIEW......................................................................................... 10
2.1.2 Introduction.................................................................................................................................. 10
2.2 The Concept of Leadership.................................................................................................................. 11
2.3 Leadership Theories............................................................................................................................ 12
2.3.1. Trait Theory for Leadership......................................................................................................... 13
2.3.2 Behavioral Theory of Leadership.................................................................................................. 13
2.3.3 Contingency Theory of Leadership............................................................................................... 14
2.3.4 Integrative Theory of Leadership.................................................................................................. 14
2.4 Full Range Leadership Model (FRLM)................................................................................................ 14
2.4.1 Transformational Leadership Style................................................................................................ 15

I
 2.4.2. Transactional Leadership Style.................................................................................................... 17
2.4.3. Laissez-faire Leadership Style..................................................................................................... 19
2.5. Leadership and Motivation................................................................................................................. 20
2.6. Theories of Motivation....................................................................................................................... 21
2.7. Inspirational Motivation (IM)............................................................................................................. 24
2.8. Empirical Literature Reviews............................................................................................................. 24
2.8.1.The Relationship between Transformational Leadership Style and Motivation.............................. 26
2.8.2.The Relationship between Transactional Leadership and Motivation............................................. 28
2.8.4.The Relationship between Laissez-Faire Leadership and Motivation............................................. 28
2.9 Conceptual Framework of the study..................................................................................................... 30
2.10. Research Hypothesis......................................................................................................................... 31
CHAPTER THREE....................................................................................................................................... 32
RESEARCH METHODOLOGY................................................................................................................... 32
3.1. Research Design................................................................................................................................. 32
3.2. Research Approach............................................................................................................................. 32
3.3 Target Population and Sampling Technique......................................................................................... 32
Table 3.3: Number of Employees and Proportion of Samples................................................................. 33
3.3.1. Sample Size................................................................................................................................. 34
3.4. Data Type and Sources....................................................................................................................... 34
3.5. Reliability and Validity Test............................................................................................................... 35
3.5.1. Reliability Test............................................................................................................................ 35
3.5.2. Validity Test................................................................................................................................ 36
3.6. Data Collection Instrument................................................................................................................. 37
3.7. Multifactor Leadership Questionnaire (MLQ form 3X)....................................................................... 37
3.8. Data Analyzing Technique.................................................................................................................. 38
3.9. Ethical Consideration......................................................................................................................... 38
CHAPTER FOUR......................................................................................................................................... 40
Data Presentation Analysis and Interpretation................................................................................................ 40
4.1 Demographic Characteristics of Respondents....................................................................................... 40
Table 4.1.1Respondents by Sex Category.............................................................................................. 40
Table 4.1.2 Respondents by Age’s Group.............................................................................................. 41
Table 4.1.3 Respondents by Educational level....................................................................................... 41
4.2. Descriptive Statistics for Leadership styles......................................................................................... 42
4.2. 1.Descriptive Statistics for Transformational Leadership style........................................................ 42
Table 4.2.1 Transformational Leadership style....................................................................................... 42
4.2. 2. Descriptive Statistics for Transactional Leadership Style................................................................. 43

II
 Table 4.2.2.1 Transactional Leadership Style......................................................................................... 43
4.2.3. Descriptive Statistics for Laissez-fair leadership.............................................................................. 44
Table 4.2.3.1 Laissez-fair Leadership Style........................................................................................... 44
4.3 Correlation Analysis............................................................................................................................ 45
Table 4.3.1. Correlations Matrix among Leadership Styles and Employee Motivation............................45
4.4. Regression Analysis........................................................................................................................... 46
4.4.1. Assumption of Regression Analysis................................................................................................. 46
4.4.1.2 Test for Normality..................................................................................................................... 46
Figure: 4.4.1.2:- Normality Test............................................................................................................ 47
4.4.1.3 Test for Linearity........................................................................................................................... 47
Figure 4.4.1.3: Normal Point Plot of Standardized Residual................................................................... 48
4.4.1.4. Test for Hetroscedasticity............................................................................................................. 48
Figure 4.4.1.4. Hetroscedasticity test..................................................................................................... 49
4.4.1.5. Test for Autocorrelation................................................................................................................ 49
Table 4.4.1.5: Durbin Watson test result................................................................................................ 49
Table 4.5.1 ANOVA............................................................................................................................. 50
4. 5.3. Results of Regression Analysis....................................................................................................... 51
Table 4.5.3.Regression coefficient analysis of the model....................................................................... 51
4.4.6. Interpretation of Regression Result andHypothesis Testing.............................................................. 51
4.5. DISCUSSIONS.................................................................................................................................. 54
CHAPTER FIVE.......................................................................................................................................... 59
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS.................................................................... 59
5.1. Summary............................................................................................................................................ 59
5.2. Conclusion......................................................................................................................................... 60
5.3. Recommendations.............................................................................................................................. 61
Reference...................................................................................................................................................... 62
Appendix…………………………………………………………………………………………………..65
ACKNOWLEDGMENTS

First and for most I would like to thank the Almighty God! Next to God I would like to thank
my family for their unlimited support, without their support and appreciation I would not be
able to achieve this, thank you again.

I also would like to express my deepest gratitude to my thesis advisor Zemenu Ayinadis
(Ass.pro) for his continued and unreserved support, encouragement and guidance. My
success in this thesis would have been impossible without his dedication. It was only possible
because of the important support he gave through all the possible means. I want to thank to
all ACA staffs for their belongingness to the success of this paper.

I would like to thank you all for your direct and indirect support.

Bless you all!!!

ABBERVATIONS

ANOVA- Analysis of Variances

ACA - Adama City Adminstration

MLQ - Multi factor Leadership Questionnaire

SPSS - Statistics Package for social Science

SD- Standard Deviation

V
LIST OF TABLES

List Page
Table 4.1.1. Respondents by sex Category---------------------------------------------------------- 40
Table 4.1.2. Respondent by Age’s Group----------------------------------------------------------- 41
Table 4.1.3. Respondents by Educational level----------------------------------------------------- 41
Table 4.2.1. Transformational Leadership Style---------------------------------------------------- 42
Table 4.2.2.1. Transactional Leadership Style------------------------------------------------------ 43
Table 4.2.3.1 Lassiez Faire Leadership style-------------------------------------------------------- 44
Table 4.3.1. Correlation Matrix among Leadership Style and Employee Motivation--------- 45
Table 4.4.1.5. Durbin Waston test result------------------------------------------------------------- 49
Table 4.5.1. ANOVA----------------------------------------------------------------------------------- 50
Table 4.5.3. Regression Coefficient analysis of the model---------------------------------------- 51
LIST OF FIGURES

List Page
Figure 4.4.1.2. Normality Test-------------------------------------------------------------- 47
Figure 4.4.1.3. Normal Point Plot of Standardized Residual---------------------------- 48
Figure 4.4.1.4. Hetroscedasticity Test------------------------------------------------------ 49
ABSTRACT
The purpose of this study was to investigate the effects of employees perceived leadership
style on employee motivation in the case of Adama City Administration . The study employed
explanatory research design and quantitative research approach. Primary sources of data
were used in the study. In addition, the study employed a Convenience sampling technique to
collect data from employees of Adama City Adminstration sub-Cities found Adama region.
Accordingly, 163 questionnaires were distributed and 149 were obtained & used for further
analysis. The collected data were processed using SPSS software version 24, and analyzed
using descriptive statistics (frequencies, means & standard deviations), Correlation and
regression analysis were used to investigate the effect on leadership styles on employee
motivation. The finding of this study indicated that in ACA sub-Cities ACA employees were
significantly affected by the transformational and transactional leadership style and it was
found that Laissez-faire leadership style has no significantly effect on the dependent variable
employee motivation. Accordingly, the researcher recommends that, the bank should
determine the appropriate leadership style to implement for employees to achieve
organizational goal. The leaders should lead as also by example in certain situations to
provide as a role model for subordinates. Moreover, in the leaders in ACA should implement
leadership style uniformity.

Key words: Leadership Styles, Transformational Leadership, Transactional Leadership, Laissez-

faire Leadership, Employee Motivation and sub-Cities ACA employees.
 CHAPTER ONE
Introduction
This chapter deals with an overview of the study's background , problem description, research
questions, objective of the study, significance of the study, scope of the study, definitions of key
terms, and organization of the paper.

Background of the Study

The goal of public service reform in human resource management is to adapt the role of public
administration to meet the evolving needs of society (Tjiptoherijanto, 2015). The primary
driver for the implementation of public service reforms was the belief that the public
administration system was capable of providing good service to the public. According to
Wescott (1999), improving the standard of public services provided to the populace and
strengthening the ability to perform essential government tasks are the ultimate goals of
reforming the public service. The supply of services is turning into a worldwide issue that
necessitates constant modification to meet the shifting demands of customers and the volatile
environment. Public services are effectively provided in organizations where effective
leadership is assigned or exists. This is because leadership is an agent of the company and the
engine that powers organizations in service delivery (Yukl, 2010). If leadership is ineffective,
the organizational structures are not carrying out their responsibilities effectively, which leads
to poor public service delivery. Good leadership is vital for the success of the public sector
(Joyce & Milner, 2005).

A study conducted by Mmamokgothu, T. L. (2011) on the impact of leadership on the supply of

public services in South Africa indicated that leadership has a strong positive relationship with
the delivery of public services, and if organizations are led by effective and competent
leadership, they can deliver their services effectively, whereas if they are led by ineffective
leadership, their service delivery is poor.

Desta Tesfaw (2008) conducted a study in Addis Ababa on public service reform and consumer
satisfaction, which demonstrated that inadequate public service delivery results from a lack of
communicating vision and mission, shortages of service standards, poor training, and poor
complaint handling, to mention just a few. These factors are directly related to leadership
competence.
Leaders bring about changes by designing a new future for their organization. Effective
leadership entails enabling people to do what needs to be done to pursue a vision, purpose, or
strategy and to fulfill their potential (Gill, 2011).
The fundamental public role of leaders’ in organizations is to provide services to satisfy public
needs. They play organizational roles in deciding how to best achieve the organization’s purpose
of meeting human needs and enhancing human life (Nirmala, 2009).
Kennedy (2000) asserts that leadership plays a key role in achieving organizational change, and a
competent leader can improve organizational performance. This holds true for the public
organizations in Sawla town administration, as they strive to provide effective and efficient
services to their customers.

Leadership styles are collections of behaviors hooked in to things and wishes of individuals
involved. Hersey and Blanchard popularized this concept as “situational leadership. within the
1970sand1980s, a special leadership concept referred to as transformational leadership came to
light from researchers like Bass and Burns (Bass, B. M. & Avolio, B.J., 1995).
In transformational leadership, the leader’s role is to make compelling vision that motivates
people to higher level than creating a greater sense of purpose. Transformational leaders are
concerned with tasks specific needs and more with building trust, selling ideas, and gaining
commitment. This has a great to do with motivation through different motivation mechanisms,
besides transactional and laissez-faire leadership styles. The vision is the transformative
mechanism of the “big picture” that so often is missing in the day-to- day frenzy of modern
organizations (Patterson, 2015). Hanson & Ford (2010) discussed that the highly complex
networks between bureaucratic organizational structures and leadership conventions interactively
and mutually support the acceleration of organizational outcomes that lead to successful team
motivation (Hanson & Ford,2010).
1.2 Background of the organization

Adama City Adminstration is one of the state owned financial institutions, established on
1942.Adama City Adminstration has a long and distinguished history of providing financial
services. The state owned bank enjoys a dominant position in the banking industry in terms of
assets, deposits, capital, customer base, and sub-Cities network.

VISION, MISSION and VALUES OF ACA.

Vision
To be a world class commercial bank by the year 2025.
Mission
Realizing stakeholder’s needs through enhanced financial intermediation globally
Deploying highly motivated, skilled and disciplined employees and state of art technology
We strongly believe that winning the public confidence is the basis of our success.
Values
Corporate citizenship
Customer satisfaction
Decentralization
Learning organization
Teamwork
Integrity
Employees- Satisfaction
Public Trust
Value for money.
1.2 Statement of the problem

Leadership style and employee motivation are crucial factors in public organizations. According
to a study by Kendra, Conlon, and Barber (2019), transformational leadership is positively
associated with employee motivation in public organizations. Transformational leaders inspire
and empower their employees to achieve their full potential, which leads to increased job
satisfaction and motivation.

Another important aspect of leadership style is the leader's ability to adapt to the situation. A
study by Kim, Park, and Lee (2018) found that servant leadership, which focuses on serving
others and prioritizing the needs of employees, is positively related to employee motivation in
public organizations. Servant leaders prioritize the needs of their employees and create a
supportive work environment, which increases employee motivation and job satisfaction.

Moreover, the leadership style of the top management team can also influence employee
motivation. A study by Liu, Chang, and Lin (2019) found that the leadership style of the top
management team has a significant impact on employee motivation in public organizations.
Specifically, a democratic leadership style, which promotes open communication and
collaboration, was positively related to employee motivation.

Overall, the leadership style of public organization managers has a significant impact on
employee motivation. Transformational, servant, and democratic leadership styles have been
shown to positively influence employee motivation and job satisfaction.

According to a study by Lepine et al. ( 2009), a transformational leadership style can positively
impact employee motivation in public organizations. Transformational leaders inspire and
motivate employees by providing a clear vision and encouraging them to be creative and
innovative. This leadership style can lead to increased job satisfaction, commitment, and
performance among public employees (Lepine et al., 2009).

Another study by House et al. (1971) found that employee motiv ation is closely linked to
leadership style in public organizations. They suggested that a democratic leadership style, which
involves involving employees in decision-making and providing opportunities for them to
contribute their ideas and opinions, can enhance employee motivation. This leadership style can
lead to increased job satisfaction, employee engagement, and overall performance in public
organizations (House et al., 1971).

However, there are also some challenges and gaps in the literature regarding leadership style and
employee motivation in public organizations. According to a review by Judge et al. (2002), there
is a lack of research on the specific leadership styles that are most effective in public
organizations, particularly in developing countries. They also noted that there is a need for more
research on the impact of leadership style on employee motivation in different contexts,
including cultural and organizational factors.

Leadership style and employee motivation are critical factors in Public organizations. One of the
major problems is the lack of a clear leadership style, which can lead to confusion among
employees and a lack of direction for the organization. Additionally, a study by Morgeson et al.
(2015) found that employees in public organizations are more likely to be demotivated by poor
leadership compared to those in private organizations.

Another problems in leadership style and employee motivation in public organizations is the lack
of recognition for employees' contributions. According to a study by Cropanzano and Pearson
(2003 , public employees are less likely to receive recognition for their efforts compared to
private employees. This can lead to a decrease in employee motivation and job satisfaction.

Furthermore, a lack of communication and transparency in decision-making can also negatively

impact employee motivation in public organizations. Employees may feel that they are not
valued or included in important decisions, leading to a decrease in job satisfaction and
motivation (Mayer et al., 2009).

There are various problems and gaps related to leadership style and employee motivation in Ethiopia. One
of the major issues is the lack of effective leadership in many organizations, which hinders employee
motivation and productivity. According to a study by Gebremedhin and Tadesse (2019 ), leadership
styles that are not appropriate for the Ethiopian context can cause employees to feel disconnected and
demotivated. For example, autocratic leadership styles that lack input from employees can lead to low job
satisfaction and decreased productivity.

Another problem is the lack of employee motivation in Ethiopia. According to a study by Assefa and
Assefa (2017), employee motivation is low in Ethiopia due to factors such as low pay, poor working
conditions, and lack of opportunities for career advancement. This can result in low productivity and high
turnover rates, which can have a negative impact on organizations.

Research Gap: Several studies exist concerning leadership style and employee motivation in public
service organizations, specifically within the context of Adama City Administration in Ethiopia. Judge et
al. (2002) emphasized the necessity for more research on specific leadership styles that prove most
effective in public organizations, especially in developing countries like Ethiopia. This implies a lack of
understanding regarding which leadership styles are most suitable for public service organizations in
Ethiopia and how these styles impact employee motivation.

Furthermore, there is a limited focus on laissez-faire leadership. While the research title mentions
transformational and laissez-faire leadership styles, the available literature does not specifically address
the impact of laissez-faire leadership on employee motivation in public service organizations. This
highlights a gap in knowledge concerning the effects of this leadership style within the specific context of
Adama City Administration.

Additionally, there is a lack of research specifically on the case of Adama City Administration. Although
the provided literature discusses leadership style and employee motivation in public organizations in
general, there is no mention of research focusing on the case of Adama City Administration in Ethiopia.
This indicates a gap in the literature regarding the effects of different leadership styles on employee
motivation within this particular organization.

Rationale of the Study:The rationale for conducting this study is rooted in filling the identified
research gaps and contributing to the existing knowledge on the relationship between leadership style and
employee motivation in public service organizations, particularly within the context of Adama City
Administration in Ethiopia.

Firstly, by examining the specific leadership styles that are most effective in the context of Adama City
Administration, this study aims to provide valuable insights into which leadership styles can positively
impact employee motivation in this particular organization, thus guiding leaders in selecting the most
appropriate style for enhancing employee motivation.

Secondly, as there is limited research on the impact of laissez-faire leadership on employee motivation in
public service organizations, this study seeks to investigate the specific effects of this leadership style
within the context of Adama City Administration. Understanding the implications of laissez-faire
leadership on employee motivation can help identify potential areas for improvement in leadership
practices.
Lastly, by focusing on the specific case of Adama City Administration, this study aims to provide
organization-specific insights into the relationship between leadership style and employee motivation.
This tailoring of findings and recommendations to the unique challenges and dynamics of this
organization ensures the study's relevance and applicability.

Overall, this study aims to contribute to the existing literature by filling the identified research gaps and
providing valuable insights into the effects of different leadership styles on employee motivation in public
service organizations, specifically within the context of Adama City Administration in Ethiopia.

Cropanzano, R., & Pearson, C. A. (2003). The psychology of public sector work motivation:
Going beyond extrinsic rewards. Journal of Public Administration Research and Theory, 13(4),

House, R. J., Hanges, P. J., Javidan, M., Dorfman, P. W., & Gupta, V. (1971). Culture,
leadership, and
1.3 Research Questions

Which leadership styles are most commonly used by employee working in ACA sub-Cities?

What is the current status of employees’ motivation in ACA sub-Cities?

What is the relationship between leadership style with employees' motivation in ACA sub-
Cities?

1.4 Objective of the Study

1.4.1 General objective of the study

The general objective of the study is to explore the effect of leadership style with employee
motivation in Adama City Adminstration.

1.4.2. Specific objective of the study

To accomplish this, the specific goals of the study follow.

To assess the common leadership style applied at ACA sub-Cities.

To examine the relationship between transformational leadership and employee
motivation.

To determine the relationship between transactional leadership and employee motivation.

To investigate the relationship between laissez faire leadership with employee
motivation.

Develop Conceptual Framework of the study

transformational leadership style,laissez faire leadership
,transformational leadership

1..5. Significance of the Study

The findings of this survey could be intended to equip the senior management team and the
human resource section of Adama City Adminstration to come up with effective interventions to
break the capability of managers in the organization to use the leadership styles that most likely
to elicit employee motivation. The studies also add to the existing body of knowledge on the
impact of leadership styles on employee motivation and avail data for future inquiry.

1.6. Scope of the study

The design scope of this study is to examine the effect of leadership style on employee
motivation in the ACA sub-Cities. Due to time constraints, the geographic reach of the
researcher would be able only to focus on some on some sub-Cities located in the capital of the
country Adama .

1.6.1. Geographical Scope

Due to inadequacy of time the researcher geographical scope would be bound to be concentrate
only on those a few sub-Cities offices which are located in the capital of the country in and
focused on I, II and V sub-Cities of ACA Adama .

1.6.2. Conceptual scope

The conceptual scope of this study is intended to examine the effect of leadership style on
employee motivation in the ACA Adama sub-Cities.

1.6.3. Methodological Scope

In terms of Methodology, the study applied quantitative research approach, explanatory design
and pertinent data were gathered through structured questionnaire.
1.7. Limitation of the study

Some constraints such as time and lack of sampling funds impede the need to include a large
sample size that could be close to the total population of the study. To get a good picture of the
stakes in the various organizations. I wish to involve more participants. Simply due to the time
frame constraint of the study program this would be not be possible. The shortage of up-to-date
reference materials and research works, specifically to the Ethiopian context, as well, it would
narrow the content of the work.

1.8. Definition of key terms

Leadership:- is a process of setting a goal (meaningful direction) for a collective effort and
making voluntary efforts to achieve this goal (Smith, 2000).

Leadership Style: A process whereby an individual influences the thoughts and actions of other
behaviours (Northouse, 2007; Yukl, 2002).

Transformational leadership: a process whereby leaders promote the motivation of their

followers to pursue and accomplish higher goals the collective interest of the group. (Burns,
1978).

Transactional leadership: is an exchange of valued things between leaders and followers in

order to achieve an outcome. (Burns, 1978).

Lassiez- faire leadership: is a situation when a leader avoids or does not interfere with the work
assignments or may entirely avoid responsibilities and does not guide or support its followers.
(Limsila & Ogunalana, 2008).

1.9. Organization of the study

This study organized into five chapters; Chapter 1 presented overview of the background to the
study, statement of the problem, research questions, and general objective of the study,
significance of the study, scope of the study, limitation of the study and defining the key terms.
Chapter 2 presented overview of literature review on leadership style, motivation and the
relationship between leadership styles and employee's motivation.
Chapter 3 presents the methodology of the study. It discusses the research design, population and
sampling techniques used, data source and data collection and data analysis, reliability and
validity of data collection and tries used ethical consideration.
Chapter 4 is about data presentation, analysis and interpretations of the research findings. Lastly,
Chapter 5 presents with summary, conclusion and recommendation of the study.
 CHAPTER TWO
REVIEW OF RELATED LITERATURE

2.1. Theoretical Review of the Literature

2.1.1. Concept of Leadership
There have been multiple definitions and concepts associated with the term leadership (Ali,
2012). The examination of leadership theory reveals a lack of consensus regarding its nature and
roles. Different authors have defined leadership differently, considering its roles, its relationship
with team members, its level of influence, its position within the group, and other factors. One
common definition characterizes leadership as a process in which an individual influences
others, inspiring, motivating, and guiding their actions towards the achievement of group and
organizational objectives (Jones & George, 2006). According to Jameson (2006), leadership is a
process through which a person or a group of individuals influence a group of other individuals
to achieve common goals. It is clear from these two definitions that it is the process of
influencing other people. Leadership from this perspective in general and in the public sector in
particular plays a great role in influencing the activities and the employees, and they motivate,
aspire, encourage, and direct the activities to achieve organizational goals as well as to ensure the
effectiveness of public service delivery. In addition to this, Stoner et al. (2002) defined
leadership as a process of directing and influencing the activities of group members. Leadership
is the activity of creating and maintaining an internal environment in an organization where
workers can perform efficiently and effectively towards the achievement of the group's or the
organization’s goals. This demonstrates that leadership is very important to achieve
organizational goals. The leader takes on a lion’s share of roles in the organization's success
(Lunenburg, 1991).
Moreover, Jones (2002) defined leadership as the capacity to encourage people to do things they
ordinarily wouldn’t do and to get them to do them well! In addition to this, Jones indicated some
roles in his leadership definition, like driving and communicating vision, designing purposeful
strategies, empowerment, building teams, inspiring, and communicating with others. These
leadership roles are also essential for the efficient provision of services in the Sawla town
administration and public sectors.
 2.1.2. Theories of Leadership
Fiedler's Contingency Model
Fiedler (1964, 1967) broke through with the notion of a single, efficient style of leadership. He
asserts that a leader's efficacy depends on the circumstances. The relationship between a leader's
style and the circumstances foretells how effective their behavior will be. As stated differently, it
is up to the leader to decide which kind of behavior will work best for them given the
circumstances. Both forms of leadership behavior can be productive. Fiedler presented the
dichotomy when describing leadership conduct. 'task-oriented' vs. relationship-oriented'.
Fiedler's contingency theory asserts that there isn't just one ideal technique for managers to use.
Distinct situations will call for a manager to adopt a distinct leadership style. A managerial
situation's solution depends on the variables that affect it. For instance, a more directive
leadership style may yield the best results in a fairly routine setting where repeating duties are
the norm; nevertheless, in a dynamic environment, a more flexible, participative style may be
required. The concept of this theory is very important for leading public organizations because
the public service is very complex and dynamic in nature. A given situation might call for a
manager with a different style or a manager who could take on a different style for a different
situation. Thus, public leaders have to be flexible according to the real situation.
Adair’s Action-Cantered Leadership Model
According to the Adair model, an action-oriented leader uses their team and their connections
with other managers and employees to complete tasks. In his action-centered leadership (1973),
John Adair outlined many obstacles for the leader with regard to task, team, and individual
aspects. These are the following:
• Team-related challenges: uphold discipline, foster team spirit, encourage, motivate, provide a
sense of purpose, appoint sub-leaders, ensure communication within the group, and develop the
group.
• Task-related challenges: define the task, make the plan, allocate work and resources, control
quality and rate of work, check performance against the plan, and adjust the plan.
• Individual-related challenges: acknowledge and utilize each person's strengths, give them
status, and help them grow as a person.
The above theories of leadership show that leadership in the public sector needs to have different
leadership styles, skills, and competencies due to the complex and dynamic nature of public
service. There isn't a single optimum way to lead the public sector in all circumstances and
settings. Public sector leaders must therefore be adaptable to the circumstances at hand. In
keeping with this, for public sector organizations to provide services effectively, the task and
relationship concerns require careful consideration.

2.1.3. The Leadership Practices

Leadership models are not only examined in theoretical aspects, but they are also proven to be
essential for organizational effectiveness in practice. According to Kouzes and Posner (2010),
leaders who use “the five practices of exemplary leadership” are assumed to be effective
leaders. Kouzes and Posner developed these practices, and they discuss them in more detail in
The Leadership Challenge, their book. Five practices that people can implement to bring out the
best in both themselves and those they lead are presented in The Five Practices of Exemplary
Leadership.
The five practices include the following:
1. Model the Way
2. Inspire a Shared Vision
3. Challenge the Process
4. Enable Others to Act
5. Encourage the Heart.
Individuals working with leaders who apply the Five Practices find that they are more satisfied
with the leaders, more excited about their work, and more productive.
The Leadership Challenge focuses on how to be a successful leader. The Five Leadership
Practices of Kouzes and Posner are discussed in detail as follows:
2.1.3.1. Model the Way:
When things get hard, put your hands in the soil. A leader demonstrates that something can be
done; a boss tells others what to do. Kouzes and Posner leaders must be models of the behavior
they expect from others. It is obvious that leaders prepare operational and strategic plans, but
they do not end by themselves. Telling the way of implementation and techniques of
performance measurement is also not the final issue in delivering effective public services. So,
leaders have to pass time with their employees by playing an exemplary or model role in
implementing more than just words. The leader who sets an example creates a situation that
makes it easier to build consensus on shared values, no matter what the climate. An excellent
leader is clear about his or her values and principles because he or she asks for feedback about
his or her actions.
Kouzes and Posner stated that:
“Beautiful words about shared ideals are far from sufficient. When judging how sincere
a leader is about what they say, their actions speak louder than their words. Acts and
words ought to match. Leaders who set an example go first. They lead by example,
exhibiting a strong commitment to their values in their day-to-day behaviors. (Kouzes
and Posner 2002, p. 14)
The statement by Kouzes and Posner (2002) emphasizes the importance of leaders' actions in
demonstrating their commitment to their beliefs. It suggests that leaders should lead by example
and consistently align their words with their deeds. Simply speaking about common values is not
enough; leaders must actively show their dedication through their daily actions.
This statement highlights the idea that exemplary leaders are those who take the initiative and
lead the way. They don't just talk about their beliefs; they live them out in their actions. By doing
so, they inspire and motivate others to follow suit.
In the context of promoting public service delivery in Africa, this statement suggests that
effective leaders must not only articulate the importance of providing adequate services but also
demonstrate their commitment through tangible actions. This could involve implementing
transparent and accountable systems, addressing corruption and inefficiencies, and actively
seeking feedback from citizens.
Overall, the statement emphasizes the significance of leadership in promoting transformation and
improving service provision. It stresses the need for leaders to be proactive, consistent, and
committed in order to make a meaningful impact on development.
From this perspective, public sector leaders should be role models for their employees and
customers. Simply talking about the desired objectives and the values of the organization by
itself is not enough to be an effective leader. Talking without walking is useless. People follow
people, not words on paper, so leaders must demonstrate that they stand behind their values and
demonstrate that they mean what they say with action.
2.1.3.2. Inspire a Shared Vision:
Share your vision in words that can be understood by your followers. Kouzes and Posner stated
that they inspire shared vision as:
"Others who are in positions of leadership possess the capacity to picture an exciting and
motivating future for themselves and others they guide. They stare out into the distance,
envisioning the alluring prospects that await them and their constituents when they reach a far-
off place. A leader's goal is to create something new, to alter the status quo, or to accomplish
something that has never been done before. Leaders lead a kind of backward life. They envision
images in their heads of the final products even before they've started their project, much as an
architect draws a blueprint or an engineer builds a model. They advance because they have a
clear vision of the future. However, concepts that are limited to leaders alone are insufficient to
 start a formal movement or have a big impact on a business. People will not follow a leader
who has no followers; they will not follow someone who does not share their vision. Leaders
are unable to compel loyalty; they only inspire it." (Kouzes & Posner, 2002:15)

From this point of view, to render effective and efficient public service, visionary leadership is
needed. A vision that is not implemented remains only a dream. Effective leaders are full of
drive, energy, and ambitions; pro-active in perusing their goals; honest and have integrity; have
a high degree of self-confidence; are often creative; and are strategically flexible. Public sector
leaders should envision the preferred future to create an ideal image of the organization. A
shared vision strengthens the individuals, strengthens the team, and strengthens the vision.
Leaders who are able to share their vision with their employees and other stakeholders can make
a difference. Because their clear image of the future can encourage them to go forward without
hesitation. As Lawler III, E. E., & Worley, C. G. (2006), effective leaders create compelling
visions of the future, make clear the rewards of contributing to that future, model the right
behaviours, and inspire the workforce through their communication skills. Effective leadership is
said to be particularly critical when change is needed. They use the power of energy and
motivation to inspire those around them. They work long hours and sometimes endure personal
sacrifices to inspire followers to do the same for the shared vision.
2.1.3.3. Challenge the Process
Choose a procedure that, in your opinion, requires the most improvement. Exemplary leaders see
challenges as an opportunity to develop their skills. Challenges are the way to success. Leaders
look for ways to improve processes to get the work done, and they encourage the strength of the
team to do it. Exemplary leaders do not maintain their status quo. Kouzes and Posner, in their 5 th
edition of free book summaries, stated that they challenge the process as follows:
According to Kouzes and Posner (2012: 3), “challenges provide opportunities for greatness.
People perform at their best when there is an opportunity to alter the existing situation. The
status quo can only be maintained by mediocrity. In order to put their skills to the test, leaders
deliberately seek out and seize difficult circumstances. They also motivate others to surpass
their own perceived limits. Leaders take initiative and make meaningful things happen. They
approach every task as an adventure. The individuals closest to the job and outside inspiration
sources are the sources of most innovations, not the leaders themselves. Exemplary leaders are
always on the lookout for good ideas, promoting open communication with others. They actively
listen, seek advice, and continuously learn.”

From this perspective, leaders of public organizations should learn from their mistakes. In this
dynamic environment and continuously changing organization and customer expectations, it is
challenging to lead as usual. Leaders have to go with the changes by using the challenges as an
opportunity to develop their capabilities. In line with this, seeking feedback and listening to and
taking advice from others is also essential for public organization leaders to deliver effective
service. It is better to take risks and to motivate and encourage others in this uncertainty to lead
organizations effectively.
2.1.3.4. Enable Others to Act
Give them the tools and methods to solve the problem. According to the perspectives of Kouzes
and Posner (2003), the role of exemplary leaders is to make people experience strength,
competence, knowledge, and connection. Model leaders give away their power rather than
retaining it, allowing others to take action instead of using it for their own benefit. People are far
more inclined to focus their efforts on achieving exceptional achievements when they possess
greater discretion, authority, and information. By encouraging cooperation and empowering
others, leaders empower others to take action. They spend time to build the collaboration, trust,
and empowerment that are necessary to increase everyone's ability to keep their word and, in the
process, frequently go above and beyond what they had anticipated. Effective collaboration is a
crucial ability for teams, workers, and clients to operate. If collaboration is created in the office,
it leads to the creation of trust. Then they recognize that mutual respect is what sustains
outstanding efforts. When people perceive leadership as a partnership built on confidence and
trust, they are more willing to take chances, make adjustments, and maintain movements,
organizations, and programs.

Leaders with excellent interpersonal abilities encourage teamwork. Building cooperative

connections, showing others respect and decency, and having faith in others to keep their word
all contribute to people's increased self-assurance and ability to complete the tasks assigned to
the team. Leaders demonstrate respect by taking into account other points of view. They support
the decisions made regarding how to carry out their work and include others in the decision-
making process. The team as a whole benefits from these acts of cooperation. In this way,
leaders enable people to develop in their responsibilities, which in turn empowers the team as a
whole (Kouzes & Posner, 2002).

This quote clearly shows that leaders create collaboration and a climate of trust that results in
mutual respect and confidence. The employees and customers having these relationships were
invited to make decisions on the essential issues, and finally, through this process, the followers
developed their capacity to deliver their services effectively. Therefore, leaders in the Sawla
town administration's public sector organizations have to develop their followers' capacity to
deliver effective public services.
2.1.3.5. Encourage the Heart
While holding your own suffering inside, share the joy with your followers. (Kouzes & Posner,
2012). Motivating others to ensure they are satisfied with their jobs—how to motivate a
workforce to work smarter—is a leadership challenge in the world in any organization (Gentry,
W.A., et al., 2016). Exemplary leaders bring encouragement and support, and most of all, they
bring praise and appreciation. People will accomplish extraordinary things when they know
someone cares and appreciates their dedication. While they celebrate the successes of teams,
leaders often acknowledge the contributions made by individuals. They praise individuals for
both a completed job as well as for achieving small increments along the way. They celebrate
creatively, celebrate sincerely, and celebrate often.
Leaders give others hope and courage. By openly acknowledging individuals' contributions to
the shared goal, they inspire hope. The leader expresses gratitude, smiles, and public
recognition to others, letting them know how much they mean to the company. Leaders take
great delight in their teams' achievements. They take great care to share with the rest of the
corporation the accomplishments of the teams. People feel like heroes because of them. (Kouzes
and Posner, 2012)

From this perspective, leaders in a public organization need to motivate and reward employees,
customers, and team members in the office for their accomplishments. This helps them to be
more effective in their performance.
2.1.4. Leadership Challenges on public services Delivery
In any case, public sector leaders are always faced with the difficulty of keeping up with the
ever-accelerating speed of change in the sector. A unique leadership challenge in the public
sector appears to be the shift away from the traditional technical or operational roles on the one
hand to a more collaborative, net-worked leadership role (Gill, R. 2011). As Gill says, these
leadership roles carry with them a high level of accountability yet less authority, implying a need
for greater political awareness, more collaborative and engaging leadership behavior, and
exceptional influencing skills.
Public organizations and customers' expectations are always changing. To cope with this change,
leaders have to have enough competency and personal power to enable them to build a shared
vision, encourage employees, inspire others, and support developmental cultures, and lead
change in a sensitive manner.
Ferguson, Ronayne, & Rybacki (2014) show that public sector leadership challenges show that
leadership in any sector involves leading people who, regardless of sector, concomitantly share
both universal human traits and unique individual differences. Generally speaking, there are
several difficulties facing public organizational leadership, including:
Balancing Multiple Work Priorities: Challenges having to do with time management, volume
of work, delegating, or setting priorities;
Building or Leading a Team: Any challenge having to do with creating a new team,
integrating people into an existing team, combining teams, or improving the team process
Creating, changing, or maintaining a culture: challenges that specifically have to do with
leading or managing a culture change in the organization
Interpersonal Conflict with Peers or Superiors: An unresolved disagreement of a negative
nature that is personally concerning or impactful to the leader and involves a peer(s) or a
superior(s).
Leading/Managing Organizational Change: Being accountable for leading or managing a
major organization-wide change or aspects of that change, or working inside an unhealthy
culture.
Making a Role Transition: Challenges having to do with the developmental agility required in
successfully moving into a new job, a new department, or a new organization; moving into or out
of an assignment or sector; taking on additional responsibilities or dealing with uncertainty due
to the absence of a direct boss.
Managing and Motivating Subordinates: Challenges related to managing, motivating, or
developing others.
Organizational Operations and Performance: Operational challenges such as dealing with
budget resources in a context of rising demand for services, the need to create greater group or
organizational efficiency, working in a context of continuous change, dealing with bureaucracy,
and increasing organizational performance.
Personal Leadership Development: Challenges relating to needs for personal and/or leadership
development, new awareness of own strengths and development needs, or self-management
issues
Strategic Issues: Strategic leadership challenges have to do with vision, mission, and broad
environmental factors that impact an organization, or strategic planning.
Talent Management: Developing or implementing HR systems and processes or dealing with
human resource-related issues and problems
Forst & Sullivan (2012) identified some leadership challenges that can hinder the performance of
leaders in the process of public service delivery. They categorize these challenges as external and
internal factors. According to Forst & Sullivan, external challenges include increasing demand
from customers for quality of services, level of services, and characteristics of services. The
internal leadership challenges are lack of efficiency and accountability, declining public service
ethics and social values, poor institutional capacities, ineffective management practices, civil
service moral values and corruption, shortages of employees’ technical skills, and shortages of
budget and physical resources, including office equipment and other facilities.
Accordingly, Fairholm & Fairholm (2009) mentioned various leadership challenges by
highlighting the situational theory factors that can affect the effectiveness of leaders in public
service delivery, including the structure and size of the organizations, worker maturity, task
complexity, positional authority, relationship aspects, and the like.
Therefore, as the above review of literature indicates, there are various challenges that can hinder
the effectiveness of leadership in leading public organizations in general and promoting public
services in particular.
Based on these points, the researcher will summarize some of the following challenges in
relation to obstacles to leadership in delivering effective and efficient services to customers so as
to improve their satisfaction. Leadership competence, resource constraints, organizational
challenges, customer responsiveness, poor leadership commitment, and shortage of skilled
manpower
Some of these challenges are briefly explained as follows:
Poor leadership competence: This includes knowledge, skills, and the ability to lead. It
encompasses knowledge about their organizational environment, about their employees and
customers, and about their relationships. Moreover, it includes leadership skills like
communication, team building, problem solving, and decision-making. As Dr. Ramnarayan, S.,
and Kumar, N.K. (2004) say, leadership competence refers to the leader’s track record and
ability to get things done. It is competence that inspires confidence that a leader will be able to
guide the entire organization in the direction in which it needs to go. If leadership has poor
competence to lead an organization, it is a challenge for service delivery. For effective service
delivery, it needs the competence of leadership in the Sawla town administration and public
sectors.
Resource constraints include a shortage of trained manpower, physical resources, including
transport vehicles, ICT instruments, enough offices and stationary materials, effective time
management, and financial resources. These challenges can hinder leaders while delivering
public services.
Organizational challenges: this leadership challenge refers to a poor motivation system, poor
conflict management mechanisms, a lack of employee and leader commitment, unhealthy
interaction between leaders, employees, and customers, and interaction and change resistance.
These factors are critical challenges for leaders while delivering public service in organizations.
Rewards: Positive contributions are promptly acknowledged and rewarded by effective
leadership. Quickness rekindles energy and builds trust. Anti-creativity and anger are brought on
by a lack of acknowledgment.
Additionally, fairness is a key element in rewards. Leaders ensure that rewards are well
deserved. Employees who are motivated tend to be more productive and are critical for
organizational survival (Duah, F.K., & Eshun, C. 2011).
Poor customer responsiveness: this refers to giving a quick and relevant response to the
customer’s expectations and needs.
Shortage of skilled manpower: skilled manpower is very important to predict the expectations
of customers and to prepare effective plans that enable an organization to provide efficient,
effective, and timely services that increase customers' satisfaction. In an organization where there
is a shortage of skilled employees, it is challenging for leaders to lead the public service delivery
process.
Poor time management
According to Stephen Covey, effective time management is crucial to accomplishing
organizational tasks as well as avoiding wasting valuable organizational assets. Covey, S. (2004).
He identified in his time management grid important activities and urgent actions. Covey
suggested that leaders should focus on important activities rather than urgent ones. Doing things
earlier, more easily, and more quickly can enable leaders to give priority to crucial matters
before they become urgent issues. It is important for leaders in the Sawla town administration to
manage the increasing needs of customers by giving priority to activities before they yield any
good governance problems.
2.1.5. Opportunities of Leadership in Public Service Delivery
Several factors can create a favorable environment for leaders to lead organizations. If these
factors are more accessible in the organization, the leader in the office has a great opportunity to
play his role effectively and efficiently, besides other issues including leadership styles. In
relation to public organizations, the researcher was mainly focused on the following factors that
can help improve service delivery and maximize customer satisfaction:
Shah (2005, 162) mentioned some leadership opportunities while delivering public service in his
edited book on accountability and governance in the public sector.
These factors are:
Resources: financial, skilled manpower, material, time management, technology; Leadership
competence: knowledge, skill, and attitude; Organizational factors: teamwork, good structure,
customer responsiveness, leadership commitment, skilled manpower, and social accountability.
Leaders in public sector organizations have an opportunity in the office to render public services
if these factors are available. The public sector needs competent leaders unless the increasing
challenges cannot be managed by the old ways of leading. It needs new skills in relation to
situations like task complexity, employees' maturity level, customer awareness level, and
situations outside the organization. Because of the relational nature of leadership, “people skills”
are important. These include listening, communication network building, conflict management,
and self-assessment of oneself and others. Problem-solving and decision-making skills are also
vital (Dr. Mahgoub Ali, T. E., 2004).
Organizational tasks need cooperation and sufficient resources. Financial resources play a greater
role in the public service delivery process. The OECD countries adapted various approaches to
enhance the efficiency of organizations, and among these approaches that influence the public
service delivery process, financial resources were the major ones (Curristine, Lonti, & Joumard,
2007).
2.1.6. The Concept and definition of public service delivery
According to Fox & Meyer (1995: 118), service delivery is generally defined as giving residents
access to public activities, rewards, or satisfactions. Both the provision of material public goods
and intangible services are related to service delivery. Institutions of government, private
companies, non-profit organizations, or individual service providers are able to do this. During
the service delivery process, customers measure service satisfaction and evaluate overall service
quality by comparing their expectations with their perceptions.
Service delivery inside the government comprises systematic arrangements for satisfactorily
fulfilling the various demands for services by undertaking purposeful activities with optimum
use of resources to deliver effective, efficient, and economic service resulting in measurable and
acceptable benefits to customers. Flynn (1997: 163) argues that the term service delivery implies
that the users of the service are passive recipients who have the service delivered to them.
Service delivery can also be defined as the ability to convey the result of physical labor or
intellectual effort to a client. From the above concept and definitions, we understand that even
though there are different definitions that can be given to the term, the basic concept in relation
to public service delivery is rendered by the organization based on the customer’s expectations.
2.1.7. The service delivery principles
Various firms change the way they offer their services to satisfy their clients by using different
criteria based on their actual situations. As Batho Pelle (1997) notes, the principles for
transforming supply of public services with the concept of people first are applied at national and
provincial departments in South Africa in accordance with their own needs and circumstances.
Even though there are no common principles for serving citizens and customers, these elements
are important to deliver customer-based services in Sawla town administration. These principles
are explained in detail as follows:
Consultation: Where feasible, citizens should be given a choice in the services that are provided
and should be consulted over the extent and caliber of the public services they receive. Provide
customers with an organized method for meaningfully consulting with them and involving them
in the creation, provision, and evaluation of services. Involve staff at all levels in the
development of service delivery.
Service Standards: To help them prepare, citizens should be informed about the type and caliber
of public services they might anticipate receiving.
Access: It is imperative that all citizens have equal access to the services to which they are
entitled. Provide hygienic, easily accessible public spaces that respect privacy, adhere to safety
and health regulations, and make it easier for people with disabilities to access them. Provide
contact names in all written and phone correspondence to facilitate future business dealings.
(Peter, 1998)
Courtesy: Citizens should be treated with courtesy and consideration. Deliver services with
courtesy and minimum delay, encouraging an environment of respect between the service
provider and customer.
Information: Complete and correct information regarding the public services to which they are
entitled should be provided to the public.
Openness and transparency: The public should be informed about the finances, staffing levels,
and management structure of all federal and local agencies.
Redress: When the promised level of service is not met, the public should be given a thorough
explanation, an apology, and prompt action; in addition, when complaints are filed, the public
should be given a compassionate reaction and a positive response.
Value for Money: To offer citizens the most value for their money, public services should be
delivered in an economical and effective manner.
These principles are also essential to evaluating the practice of providing public services in
Sawla town administration and public sector organizations.

2.3 Leadership Theories

The earliest theories of leadership focused on the performance of large human beings. For
instance, “without Mosses, the Israel’s would have continued in Egypt and without Winston
Churchill the British would have made up in the 1940s (James & Burgoyne, 2001). Analysis of
such heroic tributes gave rise to the great man theory of leadership, which argues that leaders are
carried, not created. This hypothesis postulates that certain people are empowered with
leadership traits that cannot be learned (Parren & Burgoyne, 2001).
According to Lussier & Achua, 1994 a leadership theory is an account of some facets of
leadership. Consequently, theories have practical values because they are used to better interpret,
anticipate and control successful leadership. Thus, the primary aim of a hypothesis is to inform
practice. It has been stated that there is nothing as practical as a respectable theory. There are
four broad classifications of leadership theory, including traits, behavior, contingence and
integration.
2.3.1. Trait Theory for Leadership

Early leadership studies were founded on the assumptions that leaders are carried, not created.
Researchers want to name a set of characteristics or traits that are a distinguished leader.
Theories of leadership traits attempt to explain the unique characteristics that explain leadership
effectiveness. Researchers analyzed physical and psychological trait or qualities such as high
energy level, appearance, aggressiveness, self-reliance, persuasiveness and dominance in an
effort to identify that all successful leaders had. The list of traits was to be used as a prerequisite
for promoting candidates for leadership posts.

Only candidates of all identified traits receive leadership holdings. Hundreds of trait 10 studies
were conducted during the 1930 s and 1940 s to discover a list of characters. Still, no one has
come up with a general list of traits that guarantee leadership success; traits that are linked up to
leadership success have been identified (Lussier & Achua, 1994).

2.3.2 Behavioral Theory of Leadership

By 1950 s most of the leadership research had changed its paradigm going from trait theories
focusing on what the leader actually did on the job (behavior) in the continuing quest to
determine the one best leadership style in all offices. Researchers try to distinguish differences in
the behavior of effective leaders versus ineffective leaders. Another sub-category of behavioral
leadership relates to the nature of managerial work. Therefore, behavioral leadership theories
attempt to explain distinctive styles used by an effective leader or to determine the nature of their
employment.
Mintzberg's ten leadership roles are a case in point for behavioral leadership theory. Behavioral
research focuses on discovering ways to distinguish conduct that help our understanding of
leadership. Hundreds of studies examined the relation between leadership behavior and standards
of leadership effectiveness. Nonetheless, there was no one best leadership style for all the
management positions. On the positive side Mintzberg’s leadership theory is widely applied to
train leadership behavior task and people-oriented leadership which has importance in
accounting for leadership theory (Lussier & Achua, 1994).
2.3.3 Contingency Theory of Leadership

Both the trait and behavioral theories were attempting to ascertain the one best leadership style
in all offices. Therefore, they are called universal theories. In 1960 s it became plain that there is
no one best leadership style in all offices. Therefore, they are called universal theories. In the
1960s it became evident that there is no one best leadership style in all situations; the right
answer often depends on the state of affairs. Therefore, the leadership paradigm shifted to
contingency theory.
Contingency leadership theory attempted to explain the appropriate leadership style based on the
leader, follower, and position. In other words, it resolves the inquiry of which trait or behavior
would result in leadership success given the situational variables. The contingency theory
paradigm emphasizes the importance of situational factors, including the nature of the work
done, the external environment and the characteristics of followers (Lussier & Achua, 1994).

2.3.4 Integrative Theory of Leadership

In the mid to late 1970s the paradigm began to change to the integrative to tie the theories
together or neo charismatic theory. As the figure implies an integrative leadership theory
attempts to combine the trait, behavior and contingency theories to explain a successful
influencing leader follower relationship.
Researchers attempt to explain why the follower some leader is willing to work so severely and
make personal sacrifices to achieve the group and organizational objectives or how effective
leaders influence the conduct of their followers. Theories identify behavior and traits that
facilitate the leader's effectiveness and explore why the same behavior by the leader may hold a
different effect on followers depending on the situations.

2.4 Full Range Leadership Model (FRLM)

The FRLM describes a wide range of influencing styles from non-leadership to a powerful
transformational leadership behavior which makes a difference to outcomes for associates of the
leadership. In other words, the range of behaviors start with transformational leader behavior to
transactional leader behaviors reaching to the loleader interaction of laissez-faire leader
behavior (MLQ undated; Bass et al., 2003) As we describe an idea or “pure” transactional
leadership style and a “pure'' transformational one, it is clear that organizations are likely to have
cultures that are characterized by both styles of leadership.

A leader may use both styles at different times or in different amounts at the same time.
Considerable recent research shows that transformational leadership has led to extra effort and
performance on the part of followers, in addition to those expected in an exchange relationship
with a purely transactional leader. The authors’ argument is that governing bodies should
proceed in the way of more transformational qualities in their cultures while also keeping a
foundation of effective transactional qualities (Bass &Avolio: Basset al., 2003). Trottier et al.
(2008) suggests that full range Leadership theory of Bass is a strategic organization development
intervention, designed to heighten the impact of leaders on employee loyalty.

It also, the same author emphasized that as Bass’s full range leadership model is a significant
component of the leadership research as well as it presents researchers with a theory that can be
empirically proven and offers insight into the duality that leaders look in current organizational
settings. Although multifactor theory is probably the most widely cited and comprehensive
theory, Leadership is often conceptualized within behavioral domains, varying from non-
leadership, or laissez faire, to transactional leadership, which hinges on reward and punishment,
to transformational leadership, which is based upon attributed and behavioral charisma (Bass &
Avolio, 1993 as cited in Bučiūnienė & Škudienė, 2008) context of a workplace relationship.

2.4.1 Transformational Leadership Style

Transformational leadership may be a process of working during which leaders change their
associates’ awareness of what's important, and actuate them to look at themselves and therefore
the opportunities and challenges of their surroundings during a fresh manner. Transformational
leaders are proactive: they seek to optimize individual, group and organizational development
and innovation, not just achieve performance “at expectations”. They convince their associates to
strive for higher tiers of potential also as higher level of ethical and ethical criteria.
Transformational leadership doesn't replace transactional leadership, only augments it in
achieving the goals of the group (Bass 1997: Hall et al., 2002). During a transformational style
there's generally a way of determination and a sense of family. Leaders and followers share
mutual interests and a way of common destiny. They live beyond their self-interests or expected
rewards for the unspoilt of a team and therefore the good of a corporation.
The inclusion of transformational assumptions, norms and values don't preclude individual
pursuing their own goals and rewards. Masters function mentors, coaches, role models, and
leaders, socializing members into the cultures, not necessarily because they're required to try to
so merely because they experience a private responsibility to facilitate new members assimilate
into the civilization. Thither may be a copious set of norms which cover a broad scope of
behaviors, norms that adapt to and vary with external alterations within the organization’s
environment (Bass & Avolio, 1993; Bolden et al., 2003). Agreeing to the leadership styles
workbook published by mind tools limited 2009-2011; against this an individual employing a
transformational leadership may be a dependable leader. He or she inspires a team with a shared
vision of a future.
Transformational leaders are those that transform their teachers into becoming leaders
themselves. It’s a leadership approach that's defined as leadership that makes valuable and
positive change within the teachers. A transformational leader focuses on "transforming “build
respect, Considers the moral and ethical consequences of selections , Articulates compelling
vision of the longer term , Looks at problems from many various angles Displays a way of power
and confidence, Emphasize the importance of getting a collective sense of mission From Bass
and Riggio(2006:94),"Transformational leaders are those that stimulate and encourage followers
to both achieve extraordinary outcomes and, within the process, develop their own leadership
capacity. Transformational leaders are extremely visible and spend an excellent deal of your time
putting across. They don’t necessarily run from the battlefront, as they have a tendency to
delegate responsibly among their squad.
Although their enthusiasm is usually contagious, they'll often require support from the retail
community. consistent with well-respected researchers Burns Bass and Avolio, as an example
there are four primary characteristic components.
Component 1:- Being a good model – Transformational leader knows they're role models for
team members. At a gut level, they gain that those members behave within the same direction
that the leader holds a well-defined set of admirable values and live those values in everything
they serve. This establishes confidence between themselves and their followers.

Component 2:-Inspiration – put plainly transformational leaders’ skills to maneuver people

during a powerful way. They cause this in three main ways i.e.

They hold high standards and challenge team members to satisfy or surpass those
Standards; this provides a robust and unique sense of design.

Such a pacesetter is unfailingly realistic and optimistic. At their heart they Know goals
are often met and obstacles are often masters.

Transformational leaders communicate clearly on every floor. They possess the power to color a
compelling image of the longer term in such how that team members
know exactly what the goals are and what their functions are attaining those ends.
Component 3:-Commitment to ideas and creativity – Transformational leaders know that they
hire team members for his or her wits, not their ability to perform role tasks. They need creativity
of their squads then they actively search for it and encourage it.
Component 4:- Business for individual team members – They hold the facility to actually hear
the stress and fears of individual members of the squad. But it doesn’t finish there: these leaders
recognize that team members are the longer term of the team and of the administration.
Therefore, it plainly is sensible to assist them acquire knowledge and knowledge. During a
nutshell, these are leaders that help team members become future leaders.
2.4.2 Transactional Leadership Style

A “pure” transactional style focuses on everything in terms of explicit and implicit contractual
relationship. All assignments are explicitly stated, including terms and conditions of
employment, disciplinary codes and benefit structures. Self-interests are stressed. Employees act
as independently as possible from their fellows. Cooperation depends on negotiations not
problem solving or a mutual mission. There is little recognition of the employees in their
governance, its mission or vision. Supervisors are mainly negotiators and resource dispatchers
(Bass and Avolio, 1993).

Transactional leader is grounded more on “exchange” between the leader and follower, in which
followers are rewarded for meeting specific goals or performance criteria (Trohttieret al., 2008;
Basset al., 2003). Rewards as well as positive reinforcement are provided or provided by the
leader. Thus transactional leadership is more pragmatic in nature because of its stress on meeting
specific objectives or objectives (James & Collins, 2008; Sosik& Dinger, 2007). An effective
transactional leader is able to acknowledge and reward followers’ accomplishment in a timely
fashion.

However, subordinates of transactional leadership are not necessarily required to think

innovatively and may be monitored on the basis of predetermined criteria. Poor transactional
leaders may be less likely to forestall problems and to intervene before problems come to the
fore, whereas more effective transactional leaders take appropriate action in a timely manner
(Bass et al., 2003) Transactional leaders display behaviors associated with constructive and
corrective transactions. The constructive style is labeled contingent reward and the correct style
is labeled Management-by-Exception (active and passive).
Transactional leaders define expectations and push performance to attain these grades.
Contingent reward and management by exception are two core behaviors associated with
‘management’ functions in an arrangement. Full rage leaders do this and more (MLQ, undated;
Basset al., 2003; Bolden et al., 2003) When we compare transactional and transformational
leadership style a transactional leadership style is appropriate in many contexts and may support
adherence to practice standards but not necessarily openness to innovation and risk asking.

A transformational leadership style creates a visual sense and inspires subordinates to strive
beyond required expectations, whereas transactional leadership focuses more on extrinsic
motivation for the performance of business tasks. Thus, it's likely that transformational
leadership would influence attitudes by inspiring acceptance of innovation through the event of
enthusiasm, trust and openness, whereas transactional leadership would cause acceptance of
innovation through reinforcement and reward.
Bass outlines the origin of his theory of leadership, in which both transactional and
transformational leaders are required to heighten operation. Bass got the full range leadership
model based on his belief that transformational leadership and transactional leadership are not
remnants of a single continuum, but rather are leadership patterns that all leaders possess and use
in differing quantities. For exceptional performance, transformational leadership behaviors must
increase transaction leadership behaviors (Bass & Avolio, 1993). Thus, according to Bass, the
best execution is the effect of using both transactional and transformational leadership behaviors
with subordinates.

2.4.3 Laissez-faire Leadership Style

Both the transformational and transactional leaders are described as leaders who actively
intervene and try to prevent problems, although they employ different attacks. When exploring
these two active forms of leadership, one sees that they are frequently contrasted with the third
style of leadership called laissez-faire leadership (Bass, 1990 as cited in Bučiūnienė& Škudienė,
2008). James & Collins (2008) describe the laissez-faire leader as an extreme passive leader who
is reluctant to influence subordinates’ considerable freedom, to the point of covering over his/her
obligations. In a sense, this extreme passive type of leadership showed the absence of leadership.

The laissez-faire type of leadership style has a negative impact on followers and associates-
opposite to what is signified by the leader-manager. There are many behaviors that represent
laissez-faire leadership as a ‘do nothing’ or ‘hands-off ‘approach. These behaviors include
distancing employees, avoiding supervisory tasks, and being “inactive versus reactive or
proactive”. Researchers have consistently pointed out that complacency is the least satisfying
and least effective style of leadership. That is because these leadership behaviors are
accompanied by a slight sense of accomplishment, little clarity, little sense of group unity, and
followers do not carry as much regard for their supervisors (Trouttier et al., 2008; Lok &
Crawford, 1999). It is likely for these causes that many researchers prefer to exclude laissez-faire
from their research involving only transactional and transformational leaders. According to
publication on leadership style work book (2009-2011) by Mind tools limited, laissez-faire
leadership is an effective style when a team is generally made up of individuals who are very
experienced and skilled self-starters and when the leader mentors what’s being achieved and
communicates those achievements or leave of them back to the team on regular basis.
At the other remainder of the spectrum this approach can be disastrous in situations in which
inexperienced team members need clear guidance. Although laissez-faire leadership does have
its place, it’s seldom as efficient as the transactional and transformational ways.

2.5. Leadership and Motivation

Leadership features a heavy impact on motivation employees and maximizes the success of the
organization. Employee motivation is that the most significant a part of management. The
character of leadership style adopted by the establishment has an outcome on the motivation
level of the workers. Leadership and their teams should give themselves to the function and
purpose of the organization by clearly explaining the organization’s goals and objectives
constantly for achieving success. Several reasons why people dislike their work are restrictive
policies, poor supervision, poor working conditions, low earnings, or deficiency of security of
the work (Walumbwa & Hartnell, 2011).

Leadership features a heavy impact on motivation employees and maximizing the success of the
system. Employee motivation is that the most significant a part of management. The character of
leadership style adopted by the establishment has an outcome on the motivation level of the
workers. Leadership and their teams should give themselves to the function and purpose of the
organization by clearly explaining the organization’s ends and objectives constantly for
achieving success. Several reasons why people dislike their work are restrictive policies, poor
supervision, poor working conditions, low earnings, or deficiency of security of the work
(Walumbwa & Hartnell, 2011). Many students have identified transactional and transformational
sorts of leadership because the most effective in motivating teachers and employees generally.

The transactional leadership style motivates many employees to offer their beat their chores.
Spell, the transformational leadership style makes way for experimenting to seek out the simplest
methods of management. Transformational leaders are often mentioned as risk-takers. Systems
during which leaders use a laissez-faire sort of leaders tend to perform badly, as this approach to
leadership does little to motivate employees (Cemaloglu et al., 2012).

2.6. Theories of Motivation

Motivation refers to the forces within an individual that affects the direction, strength, and
persistence of voluntary conduct. Motivated employees are willing to exercise a peculiar degree
of effort (intensity), for a particular amount of your time (persistence), toward a specific goal
(direction). Motivation is one among the four essential drivers of personal conduct and
functioning, Motivation and skill are important influences on individual conduct and functioning,
but employees also require accurate role perceptions to perform their tasks considerably.

Perception of roles refers to the extent to which individuals understand the tasks (roles) assigned
to them or expected of them. These perceptions are vital because they direct the employee’s
direction of effort and better coordination with coworkers, suppliers, and other stakeholders.
(Thompson, Naccarato, and Parker, 1989). The four components of the MARS model
motivation, power, role perceptions, and situational factors-affect all voluntary workplace
behaviors and therefore the functioning outcomes. These ingredients are themselves determined
by other individual differences. Employee participation because the employee’s emotional and
cognitive motivation, self-efficacy to try to the work , perceived clarity of the organization’s
vision and his or her specific role therein vision, and belief that he or she possesses the resources
to form the business done.

To calculate out the way to produce a more engaged and motivated workforce, we first got to see
the motivational “forces” within people drives (also called primary needs or innate motives) as
hardwired characteristics of the brain that correct deficiencies or maintain an indoor equilibrium
by producing emotions to energize people. Needs as purpose-oriented strengths that folks
experience. Needs are the motivational forces of emotions channeled toward particular goals to
correct deficiencies or asymmetries. The latest theories of motivation include Maslow's hierarchy
of needs, the ERG theory of motivation, McClelland’s theory of needs, the idea of the four
drivers, the idea of motivation and hope. Hertzberg two factor theoriesare discussed shortly.
Built up by psychologist Abraham Maslow in 1940th (Maslow’s Needs Hierarchy Theory) is far
and away the foremost widely known theory of human motivation. The model condenses and
integrates the long list of needs that had been studied previously into an influence structure of 5
basic Sub cities (from loto highest). Maslow’s list represents drives (primary needs)

because they're described as natural and universal, consistent with Maslow, we are moved
simultaneously by various needs, but the strongest source was rock bottom unsatisfied need at
the time.
As a result, physiological, safety, belonging/love, esteem and self-actualization are meant to be
satisfied so as. Physiological needs are initially the foremost important and other people are
motivated to satisfy them first. Another pattern of hierarchy, called ERG theory, reorganizes the
five Maslow groups into three Existence, Relatedness and Growth. Unlike Maslow’s theory,
which only explains how people progress up the hierarchy, ERG theory also distinguishes how
people regress down the facility structure once they neglect to satisfy higher needs. Psychologist
David McClelland further investigated the mind that demand strength are often changed through
social influences. In especial, he acknowledged that a person’s needs are often strengthened
through reinforcement, learning, and social conditions.

McClelland examined three “learned” needs: achievement, ability, and affiliation. McClelland
argues that effective leadership should bear a high demand for socialized instead of personalized
power. They need to possess a high level of altruism and social responsibility and be worried
about the consequences of their own activities on others. It also, social scientists in various
disciplines (psychology, anthropology, etc.) increasingly agree that human organisms have
several hardwired drives, including social interaction, learning, and potency. Developed by
Harvard graduate school professors Paul Lawrence and Nitin Nohria, four-drive theory states
that everybody possesses the drive to accumulate, bond, learn, and maintain. These four-drive
theories are innate and universal, meaning that they're hardwired in our minds and are found
altogether human existences. They’re also independent of every other. Expectancy theory offers
an elegant model based on rational logic to call the chosen direction, degree, and persistence of
motivation.

Basically, the theory states that work effort is directed behaviors that people think contribute to
desired results. In other words, we are motivated to attain the most profitable targets. An
individual’s effort level depends on three factors: effort-to-performance (E-to-P) expectancy,
performance-to-outcome (P-to-O) expectancy, and outcome valences. Employee motivation is
driven by the three components of the Theory of Hope model. If an element weakens, motivation
weakness.
The goal setting process of motivating employees and clarifying their role perceptions by
establishing performance targets. Herzberg (1959) produced two distinct lists of factors about the
attitudes of employees. Single set of factors caused happy feelings or a good position within the
worker and these factors, on the whole, were task-related. The other band was primarily present
when feelings of unhappiness, bad attitude were evident and these factors, Herzberg claimed,
were not directly interrelated to the line of work itself, but to the conditions that surrounded
doing that task. Herzberg called the first group as motivators (job factors: Recognition,
Achievement, Possibility of growth, Advancement, Responsibility, Work itself).

He made the 2nd group as hygiene factors (extra job factors: Salary, interpersonal relations
supervisor, interpersonal relations subordinates, interpersonal relations supervision, technical,
company insurance and administration, working conditions, factors in personal life, Status Job
security). Motivators refer to factors intrinsic within the work itself like the realization of a job
completed. Conversely, hygiene factors tend to include extrinsic entities such as relations with
co-workers, which do not relate to the worker’s actual job.
Linked to this there is Theory X and Theory Y developed by Douglas McGregor proposed two
distinct aspects of human beings: one basically negative, labeled Theory X, and the other
basically positive, labeled Theory Y. Going forth and a new distinct subject these decades,
nonetheless it is related topics and journal literatures are rich in management and public
administration fields, Especially in specializing areas. This yielded only a small number of
directly related literatures. Here this paper attempts to review just about.

2.7. Inspirational Motivation (IM)

Inspiring motivation was the lure of inspiring followers with symbols and metaphors. In other
words, inspirational motivation leaders expressed the importance and value of desired goals in
simple ways and discovered high levels of expectations. These Leaders often talked about a
vision of the future and expressed confidence and a loyalty that their goals and visions could be
accomplished.
They also attempted to move the disciples to extraordinary levels of achievement by
demonstrating high expectations and confidence in the disciples. In this way, the disciples
responded by willingly increasing their efforts to attain the vision. While charisma and
inspirational motivation have frequently been highly correlated, inspirational leadership may or
may not overlap charismatic leadership. Inspiring leaders could happen without the necessity to
identify disciples with the leader (charismatic leaders).
Transformational leaders who use inspiring motivation draw people toward the vision of the
organization with their effective communicative personality. Inspiring leadership consists in
communicating a vision with ease and confidence, increasing optimism and enthusiasm, and
giving interesting talks that energize others (Avolio, 2005).
2.8. Empirical Literature Reviews

Rima Gose (2014) findings underline the importance of relationships between supervisors and
employees and therefore the way the organization communicates; a finding confirmed by similar
subjects who have shown supervision and communication to be important elements in terms of
employee motivation. These determinations are also backed up by other hypotheses and other
fields which used MLQ and the full range leadership development behaviors in several
formations. A study by Smash Zenabu found that transformative leadership style was relatively
the most commonly used leadership style, followed by transactional leadership style. And the
laissez-faire leadership style was the least exercised leadership style as found out by the
Department of Public Service and Human Resources Development (Masho, 2016).
Benoit & Denise (2005), the findings highlighted both charismatic and transformational aspects
as being important for the leadership of large-scale sporting events (e.g., ability to motivate
followers, creating an attractive sight to accompany, and fostering commitment and teamwork).
Amsalu in 2010 attempts to benchmark organizational leadership and employee motivation
between two public service establishments, the Social Security Agency (SSA) and the Ethiopian
Investment Commission (EIC) and found that comparatively better conditions like organizational
leadership and motivated employees seem to conduce to the higher EIA outcome, but SSA is not
attempting to act thusly. And he recommended that the new public administration, like an
organization's employees, offers training opportunities based on fair and transparent selection
procedures, clear work instructions and sound communication.

A mixed approach study by Ali M.M. Alghazo and Meshal Al-Anazi in 2016 examined to look
at the relationship between the adopted leadership style and employee motivation during a
private petrochemical company that's situated within the eastern state of Saudi Arabia. A survey
was developed and distributed to 30 employees in two ministries. Equally well, interviews were
conducted with a focus group of 10 employees to validate the study answers. The survey
disclosed that there is a substantial relationship between leadership style and employee
motivation where the correlation was positive with transformational style and negative with
transactional style.

Fasika (2016) used a 36-point multifactor leadership questionnaire developed by Bass and
Avolio (1997), and the employee motivation instrument employed. Information gathered from
respondents was analyzed using descriptive and correlation analysis. It was found that leadership
styles were essentially linked. The study results indicated that there was a huge relationship
between transactional and transformational leadership style and employee motivation. He too
observed that employees preferred the transformational leadership style over the transactional
leadership style. He then advocated the importance of a transformational leadership style that
should be encouraged through the organization’s representational strategies and judgments.

Study by Admekew (2015) in employees of Haremiya University tries to research the

relationship between transformational, transactional and Laissez-faire leadership approaches on
the motivation of Haramaya University employees in Ethiopia. Outcomes from the survey show that
there is a confident and meaningful relationship between transformational leadership and employee
motivation. Previous researches have given a great slew of attention to the relationship between
leadership style and employee motivation.

They have shown that employee motivation is greater for employees whose leaders encourage their
participation in decision making (Ugboro, 2006), who handle them with consideration (e.g., Shore &
Wayne, 1993), fairness (Bruckner et al, 1992; Allen & Meyer, 1990) and are supportive of them (Allen
& Meyer, 1990). We have Mow Day et al. (1979), (as cited in Ponnu & Tennakoon, 2009) has
indicated supervision as one of the critics.

Many students have identified transactional and transformational types of leadership as the most
efficient in motivating teachers and employees in general. The transactional leadership style motivates
many employees to give their all in their chores. Spell, the transformational leadership style makes way
for experimenting to find the best methods of management. Transformational leaders are often
mentioned as risk-takers. Systems in which leaders use a laissez-faire type of leaders tend to perform
badly, as this approach to leadership does little to motivate employees (Cemaloglu et al., 2012).

2.8.1. The Relationship between Transformational Leadership Style and Motivation

In using transformation as a leadership style, a leader needs to make clear the mission and vision of the
constitution to the employees in order for them to strive for those goals to be reached. Bass and Avolio
(1994) offer four dimensions of transformational leadership: idealized influence, inspirational
motivation, individualized consideration and intellectual stimulation. Inspirational motivation: Includes
motivating followers to achieve goals by describing the goals in an attractive and compensatory way,
which motivates employees. Idealized influence: means being a character model in front of employees
and ready for sacrifices for the unspoilt of the whole group.

Leaders possess a high level of ethical conduct and do anything for the squad. Individual consideration:
involves the attention, encouragement and support of the leader to his followers. Intellectual
Stimulation: conclude that leader, enables the followers for probing the problems in a new fashion that
is easy and creative. Theory of transformational leadership is really significant in the study of
leadership and many studies prove that there is positive relationship of transformational leadership and
other dependent variable like satisfaction, dedication, motivation and performance of the employees
(Kane & Tremble, 2000; Lowe, Kroeck and Sivasubramaniam, 1996). Cheung and Wong (2010) say
there is a positive relationship between transformational leadership and employee creativity.

Transformational leadership is linked to positive conduct of employees, including duty performance

and numerous activities of organizational citizenship behaviors (Podsakoff, Philip, Scott, Julie and
Daniel, 2000). The transformational leadership style is not efficacious for all types of people, as it is
likewise not a great fit for all followers. If not rightly placed, the Transformational leadership style
might be looked at as the leader being simply being self-promotional. Leaders ask to take their
followers to get a feel for whether they will react positively to the transformational leadership style that
purports to move from within since it focuses on intrinsic motivation intending to make the task done.
Transformational leadership can be beneficial to the system.
According to Afshari, Siraj, Ghani and Alfashri (2011), transformational leadership increases creativity,
intrinsic motivation, psychological empowerment, and supports innovation, which are totally essential
in increasing performance. The survey explained that transformational leaders value the feelings
(intrinsic motivation) of their employees. The leaders seek to develop their employees‟ self-confidence,
help them to develop as souls, and show them different ways through which they can reach their goals.
By doing this, the leaders increase the stake of their employees in their study that finally results in the
development of intrinsic motivation.

2.8.2. The Relationship between Transactional Leadership and Motivation

The transactional leadership style is extremely effective when you’re working with a team of goal-
oriented employees and there’s a clear and achievable goal at hand. The promised reward motivates the
team to reach the end in lieu. The transactional owner motivates subscribers with a tangible reward
(Tami, 2017). As Robbins (2007) explains, transactional leaders use social interchange to transact
transactions. Abdul & Husnian (2012) show how transactional leaders perform using contingent
rewards and management by exception: Contingent Reward: These rewards are related to the
performance of the employee. If an employee puts efforts it is distinguished by the rewards.

The rewards which an employee gain on the achievement of a object is contingent reward. The leader
communicates to followers (employees) that what have to do to get the rewards they judge (Robbins,
2007). Management by Exception (active) It gets the notice of any divergences from the conventions
and regulations, and if there is it gets hold of the action for discipline. Whenever there is a divergence
from the conventions and regulations, management but expectation happens and the actions for
corrections are also accepted. The leader follows followers to figure out along the mission and does not
interfere unless goals are not being achieved in a proper time and at the reasonable price. Transactional
leadership means the leadership or the bosses who leads in the first place by using social behavior
exchanges for maximum benefit at low cost.

2.8.3. The Relationship between Laissez-Faire Leadership and Motivation

The French term individualism translates roughly to “let it’s.” An individualism leadership follows suit,
with the leader, allowing operations to unfold largely within the manpower of his employees. In
practice, this suggests many delegations, with decision-making abilities being passed from the leader to
his subordinates (Tami B., 2017). Agreeing to her journal a individualism leader doesn't suggest not
making out any work instead, consistent feedback, analysis and proposals for improvement are
expected from the leaders to be effective.only this character of leadership doesn't just go along side all
types of employees; it expects highly skilled, trustworthy employees who possess a transparent
understanding of a project's overall goal. Which shows that for this leadership style to figure employees
are anticipated to be intrinsically motivated to satisfy what’s expected to them without the leader
motivating and guiding them? As Deluga (1992) describes it, the leadership sort of laissez-faire is
related to unproductively, inefficiency and discontent.

Consistent with Bass Avolio (1997) and Hartog& Van Muijen (1997), individualism leaders avoid
making decisions, the supply of rewards and therefore the provision of positive/negative feedback to
subordinates. This involves the motivation of employees because the leader isn’t there to determine and
guide them and ignore the communication and relationship between the leader and therefore the
followers.

To cope up as we've picked up during this chapter there's plenty within the literature that describes
leadership style and employee motivation from an outsized number of angles and views many articles
also repeat an equivalent topic and findings and therefore the author chose to incorporate just to
demonstrate that the determinations are similar but from a good scope of fields. There are few
researches conducted within the banking sector, specifically in Ethiopia. Therefore, the aim of this
inquiry is to define the effect of leadership style on employee’s motivation within the case of Adama
City Administration .
 2.7. Empirical Review of the Study
2.7.1. Global Experience of Challenges of Leadership and Public Service Delivery
According to the research done by Karthik, M. (2007) on public service delivery in India and its
challenges and opportunities, there are significant and obvious inefficiencies in the provision of
services. in India. The leaders in India faced challenges like poor management of resources, like human
resources and time management, and ineffective working cultures. In line with this, leaders do not have
effective disciplinary measures in their offices. As Karthik indicated, on a typical workday, 25% of
teachers and 40% of health workers weren't present from governmental institutions. In addition to this,
in many cases, public service providers or civil servants are present but not actively working.
This shows that service delivery is a challenge for leaders while leading public organizations where
poor utilization of resources, lack of commitment to serve customers, poor customer responsiveness,
and failure to create and maintain the internal environment of an organization where workers exist.
2.7.2. Leadership Challenges and Public Service Delivery in African Context
According to a study conducted by Naido, G., and Xollie, T. (2011), leadership has great challenges in
South Africa while serving public services. They mentioned some of these challenges, including poor
leadership competence, shortages of resources and poor utilization, a lack of appropriate leadership
training, poor technical and interpersonal skills, poor handling mechanisms for personnel conflicts, and
unhealthy interactions in the organization. As this study indicates, it is necessary to conduct research
around the problem under investigation in the study area.

Likewise, a study conducted by Mmamokgothu, T. L. (2011) identified some challenges of leadership

while rendering public service in South Africa that can hamper the effective as well as efficient
realization of service delivery. Some of the specific problems mentioned are: poor leadership skills and
knowledge; a lack of sufficient office space; inadequate facilities and other resources; political
influence; a communication gap between workers and leadership, to mention but a few. The existence
of these challenges in leadership is a disadvantage to service delivery.

Thus, assessing leadership challenges and opportunities in the provision of public services is important
in the study area. So, the researcher needs to conduct this study to find challenges and opportunities for
leadership in promoting supply of public services in Sawla town administration, Gofa Zone, Southern
Ethiopia Region.
The quality of basic services provided by the Egyptian government, whether in health, education,
transportation, solid waste management, or other areas, is severely lacking. The problem is more
aggravated in rural areas and in Upper Egypt. In the Human Development Report of 2014, Egypt
ranked 110 out of 187 countries. This shows that leaders are ineffective in playing their roles in Public
service delivery. So, to have effective public service, the leadership challenges in service delivery need
further investigation.
The Malawi public service reform final report (2015), presented by President Peter M. It shows that the
president of Malawi is highly committed to improving public service delivery. To show his
commitment, establish a committee and assign his vice president as the head of the committee. The
committee collects data from the customers and conducts benchmarking tours (to Kenya, Singapore,
and the UK) to learn best practices around public service delivery. In line with this, Malawi sets service
delivery standards, including proximity and accessibility of service, participation and consultation,
speed and responsiveness, reliability and confidentiality of information, client orientation, redress, and
remedial action.
The leadership commitment to enhance the provision of public services and customer responsiveness
and to take remedial action for poor provision of services is an opportunity for leaders in the public
sector. Here, we can learn from this report that public service should be improved to satisfy the
changing expectations of customers. The leadership should play the greatest role in improving and
sustaining service delivery by establishing the standards of service delivery as well as incorporating
customer vice and benchmarking to share best practices.
As Oyedele (2015) cited in Adamolekun, 1986, the Nigerian civil service has frequently faced harsh
criticism for its poor service delivery due to poor organization, plan less, over-staffing, indiscipline, red
tape and secrecy, selfishness, rigidity, over centralization, boredom, lack of motivation, incompetence,
corruption, and favoritism, and bossiness, laziness, absence, and idleness.
This study shows that serving the public is a challenge for leaders while leading the public service
process if there is poor organizational structure, a lack of employee motivation, poor utilization of time
and human resources, a lack of equal treatment of customers, and poor responsiveness due to self-
interest.
2.2.3. Leadership challenges and Public service delivery in Ethiopia
Zerihun Duresa and Tesfaye Mada's 2014 study on the leadership efficacy of Ethiopian public service
organizations found that the country's transformation made it possible for a society to expect better
services. However, public service organizations lack the leadership effectiveness needed to transform
them into performance-driven, internationally competitive, change-managing enterprises. According to
Zerihun and Tesfaye, in addition to the problems of leading changes in organizations and the inability
to fulfill customers’ expectations, there are also various leadership challenges examined, including poor
motivation, a lack of commitment, a lack of visionary leadership, and an accountability relationship
between government and public service providers.
We can learn from this study that leadership should play a great role in leading and sustaining
organizational change. The quality of public service delivery can be measured by satisfying customer
demand through improved services. Commitment, accountability, vision, driving and communicating,
and motivation are critical challenges of leadership in promoting public service delivery.
Likewise, the research conducted by Samuel, D. (2008) on the evaluation of the methods used in
service delivery by the Ethiopian postal service identified poor service delivery in relation to speed and
efficiency. As Samuel indicated, the cause of the poor service delivery was a shortage of human power,
both in quality and quantity, employees' behavior, bureaucracy, a shortage of continuous capacity-
building trainings, poor participation, and the absence of a reward system.
Public service delivery is a challenge for leaders if there is a shortage of continuous capacity-building
training, poor participation, a poor motivation and reward system, and a shortage of skilled employees.
Furthermore, the research conducted by Molla Mellesse (2015) on the assessment of leadership
challenges and opportunities when providing public services in Woldia city administration indicated
that leaders were poor at setting examples, poor at inspiring shared vision, not challenging the service
delivery process, and weak at increasing the capability of followers and motivation because of various
challenges that face leaders in organizations while delivering public services to customers. Molla
identified leadership challenges like human, material, and financial resource shortages, organizational
structure problems, poor customer responsiveness, poor social accountabilities, problems of leadership
commitment, and technical problems of leaders and employees as critical challenges for leaders in
organizations to serve effective and efficient services to meet the expectations of the customers.
Moreover, Mola showed that the availability of resources, skilled manpower, and commitments to
leadership can be opportunities for leadership in the organization that enable them to render effective
public services.

2.9 Conceptual Framework of the study

The conceptual framework for this study is based on existing literature and theories related to
leadership styles and employee motivation. Several prominent theories and models provide a
foundation for understanding the relationships between leadership styles and motivation in the
workplace.

Common Leadership Styles: The first objective of this study is to assess the common leadership styles
applied at Adama City Administration (ACA) sub-Cities. Common leadership styles include
transformational, transactional, and laissez-faire leadership. According to Bass and Riggio (2006),
transformational leadership involves leaders who inspire and motivate their followers, promote positive
change, and encourage innovation and creativity. Transactional leadership, on the other hand, focuses
on rewards and punishments based on performance, and is characterized by contingent reward and
management-by-exception styles. Laissez-faire leadership refers to a hands-off approach where leaders
provide little guidance or supervision.

Transformational Leadership and Employee Motivation: The second objective is to examine the
relationship between transformational leadership and employee motivation. Various studies have
indicated a positive relationship between transformational leadership and employee motivation. Avolio
et al. (2009) found that transformational leaders inspire and motivate their employees, fostering higher
levels of job satisfaction, engagement, and commitment. This leadership style is associated with
increased intrinsic motivation, which drives employees to excel beyond their own expectations.

Transactional Leadership and Employee Motivation: The third objective is to determine the relationship
between transactional leadership and employee motivation. Transactional leadership has a different
emphasis, focusing on contingent rewards and punishments for performance. Research by Podsakoff et
al. (2009) suggests that transactional leadership can positively affect employee motivation when leaders
base their rewards and punishments on performance, creating a clear linkage between effort and
outcomes.

Laissez-faire Leadership and Employee Motivation: The fourth objective is to investigate the
relationship between laissez-faire leadership and employee motivation. Laissez-faire leadership has
been associated with lower levels of motivation, as this style lacks guidance and involves minimal
involvement from leaders. Eisenbeiss et al. (2008) found that laissez-faire leadership can lead to
decreased employee motivation, reduced performance, and overall dissatisfaction.

In summary, this study aims to explore the effect of leadership style with employee motivation in
Adama City Administration. The conceptual framework is grounded in theories and prior research on
leadership styles, including transformational, transactional, and laissez-faire leadership.

Transformational Leadership Style

Intrinsic Motivation
Transactional Leadership Style
Extrinsic Motivation
 Laissez-Faire Leadership Style

Independent Variables Dependent Variables

Figure 2.9 conceptual framework

Source: Researcher 2024

2.10. Research Hypothesis

H1- Transformational Leadership style has positive and significant effect on Employee
Motivation.

H2- Transactional Leadership style has positive and significant effect on Employee Motivation.

H3- Laissez-Faire Leadership style has positive and significant effect on Employee Motivation.
 CHAPTER THREE

RESEARCH METHODOLOGY

This portion of the research demonstrates the methodological aspects of the research, which
include the research design, research approach, Target population sampling techniques, sample
size, data type and sources, data collection instruments used to measure Leadership styles and
employee motivation method of analysis and ethical considerations.

3.Study Area
The study area, Adama City Administration, is characterized by a hierarchical structure with
leaders at different levels, including top-level executives and middle managers. These leaders are
responsible for making decisions, setting goals, and providing guidance and direction to
employees.The focus of this study is to examine the effect of leadership style on employee
motivation within the context of Adama City Administration.

Adama is a city in central Oromia Region, Ethiopia. Adama forms a Special Zone of Oromia
and is surrounded by East Shewa Zone. It is located at 8.54°N 39.27°E at an elevation of 1712
meters, 99 km southeast of Oromia's Addis Ababa. The city sits between the base of an
escarpment to the west, and the Great Rift Valley to the east.

Source: https://en.m.wikipedia.org
3.1. Research Design

The primary aim of this study is to determine the effect of leadership style on employee
motivation at the Adama City Adminstration in Adama sub cities area sub-Cities. To accomplish
this objective explanatory design used to test relationships between variables.

3.2. Research Approach

This study examines the relation between three different kinds of leadership styles
(Transformational, transactional and laissez faire as independent variables) and employee
motivation as a dependent variable. For that purpose, to pertinent data were structured
questionnaire. Hence this study applied quantitative research approach.
Quantitative research makes it possible to check objective theories by looking at the relationship
between variables. These variables, in turn, can be measured, typically on instruments, so that
that number of data can be analyzed during statistical procedures.

3.3 Target Population and Sampling Technique

sub-Cities of ACA found in the Adama city are classified into four s: North, East, and South and
s. The total number of employees working in the Adama City Adminstration in Adama city is
11,344 employees according to the source from Human Resource Management. Primarily from
four s, the researcher would o concentrate Adama . Moreover from this six Sub cities area sub-
Cities as were selected due to factors such as: time available, budget& proportionality to total
population. These sub-Cities are

classified in six Sub cities. The researcher reviews the data acquisition from
the Adama City Adminstration Human resource management and identifies
the following rationale. From this the researchers selected six Sub cities in
area, From this population, the researcher selects the ACA employees in the
Adama , six Sub cities sub-Cities and 274 employees has been selected.The
sample taken from each sub-Cities illustrated in table 3.3 below.

Table 3.3: Number of Employees and Proportion of Samples

No Name of sub-Cities Total of Employees Classification of Grade Proportional Sample

1 Gada 15 15/274*163= 8.9233
 2 Lugo 14 GradeI 14/274*163= 8.3284

3 Bole 17 GradeII 17/274*163= 10.1131

4 Boku 20 GradeII 20/274*163= 11.8978

5 Dabe 30 II 30/274*163= 17.8467

6 Dembala 32 II 32/274*163= 19.0364

7 68 V 68/274*163= 40.4525

8 78 V 78/274*163= 46.40145
Total Number of employees 274 274 163

The criteria to select respondents was based on the team work, the employee
must have worked one year and above with the current leader to be include
in the sample. Hence the proportional would be allocating to main division
and then each employee working in the six sub-Cities.
Convenience sampling was used for this study purpose. Convenience
sampling is a type of non-probability where the target populations that meet
certain practical criteria, such as easy accessibility, geographical proximity,
availability at a given time, or the willingness to participate are included for
the purpose of the study (IlkerEtikan, Suliman Abubakar, & RukayyaSunsi,
2016).

Convenience sampling is relatively simple to administer as it only requires

identifying and recruiting participants who are readily available and willing
to participate (Etikan, Musa, & Alkassim, 2016). This reduces the logistical
challenges associated with more complex sampling techniques.

3.3.1. Sample Size

The sample size represents the number of items selected within a given population. A sample
size is a part of a study population that is picked out from the total population in a way that
assures that every different possible sample of the desired size has the same probability of being
selected (Peck, Olsen, & Devore, 2009). Leary (2004), a definable sample size is the process by
which a investigator selects a sample of participants for a study of a population of interest. Hence
due to time and financial limitations and the nature of the population practicing the sample
determination method developed, as cited by Yamane (1967).
 n= N/1+N (e2)
n= 274/1+274(0.05) ^2
n=163
Where:
n= sample size
N=Total population size
e=Acceptable Level of Error (that is 5%)

3.4. Data Type and Sources

To generate relevant data for this study, consideration could be given to primary and secondary
data sources. According to Biggam (2008), primary data is the information that the investigator
finds himself/herself about a specific subject. The main benefit of this type of data collection is
that it is collected taking into account the objective of the research. This implies that the
information resulted from it is more coherent with the research questions and purpose.

As this field is basically empirical in nature, primary data were collected from employees and
manager. So, the focus is more on primary data sources. The closed ended questionnaires are
used to collect primary information.

Secondary data serve researchers with the opportunity to better interpret and explain the research
problem. So, it's very important to start looking at existing data with a clear sense of what we're
trying to accomplish with this study. This would assist the researcher save time and effort
because he/she can easily throw out data that holds no relevance for its own work. This can result
in information that can only be used partially for a specific subject.

The secondary data are applied to bring more honest insight on the research topic, to establish
the viable platform for the theoretical framework constituting the basis of this inquiry, and to
design the sample form and questionnaires for retrieving the primary information. A further
advantage of the use of secondary data lies in their comparability. Therefore, try to validate and
compare the data obtained through a questionnaire with the available literature and articles.

3.5. Reliability and Validity Test

3.5.1. Reliability Test

Groomed at the point that even if the research were repeated they would end up with similar
solutions or the consistency or dependability of a measurement technique, and it‘s touched on
with the consistency or stability of the score obtained from a measure or assessment over time
and across settings or conditions. If the measurement is reliable, then there is less probability that
the obtained the mark is due to random factors and measurement error (Marczyh, et al., 2005).
According to George and Mallery (2003, as cited in Joseph & Rosemary, 2003) Cronbach‘s
alpha is a Coefficient of reliability. It is usually employed as a criterion of the internal
consistence or reliability of a psychometric test scores for a sample of examinees. Cronbach‘s
alpha reliability coefficient normally ranges between 0 and 1.

Rule of Thumb of Cronbach’s Alpha

Cronbach’s Alpha Description
>= .9 Excellent
>= .8 but < .9 Good
>= .7 but < .8 Satisfactory
>= .6 but < .7 Questionable
>= .5 but < .6 Poor
<=. 5 Unacceptable

Source: Zikmund, et al, 2010

Based on this, to ensure the reliability this study used self-administered questionnaires Then the
Questionnaires are pre-tested for 30 managers and employees of ACA based on the pilot study,
to guarantee a common understating of respondents. The alpha results for the particulars of the
questionnaire and their alpha values have run across an acceptable number (which is >0.75) in
relation to the aforementioned requirement range.

Reliability Statistics result of the Study

Variables Cronbach’s alpha No. of items
Transformational Leadership 0.848 6
Transactional Leadership 0.882 6
Laissez-faire Leadership 0.905 6
Employee motivation 0.959 23

Source: Researcher Survey, Computed in SPSS, 2024.

3.5.2. Validity Test

Consults to the extent to which the concept one wishes to measure is actually being assessed by a
particular scale or indicator. According to Kothari (2004), validity aims at examining the
relationship, which is linked with the position. It is touched by the extent that the scale accurately
represents the construct of interest. In parliamentary law to ensure the robustness of the
measurement tool in the field is taken based on the literally accepted conceptual framework that
clearly indicates the theoretical construct and associated with the measurements valid to appraise
the relationship of operating leadership styles (independent variables) on employee motivation
(dependent variable). Where possible this should be supported and consideration given to
practical issues. So that pre-questionnaire were distributed to the managers of ACA to discover
out the validity of questions to further data collection process. As per the remarks and the
discussion with bank experts the question prepared for primary data collection for the research
objective is found valid by a researcher. Further, this instrument or variables of operating
leadership styles and employee motivation were tested by previous works for content validation.

3.6. Data Collection Instrument

A short-answer questionnaire would be used as a measurement tool in this study. The narrow
questionnaire can be administered at the same time to groups of people, as it is less costly and
takes less time than other measuring instruments. Two distinct instruments: The Multifactor
Leadership Questionnaire (MLQ) and the Motivation Questionnaire; would be used in this
research to obtain quantitative information regarding leadership styles and employee motivation
respectively.

3.7. Multifactor Leadership Questionnaire (MLQ form 3X)

The MLQ has been improved and piloted since 1985, resulting in many versions of the
questionnaire. It is built on a comprehensive leadership model consisting of transformational,
transactional and laissez-faire leadership behaviors with nine sub-scales. Bass &Avolio (1995)
[as quoted in Basset al., 2003], presented the MLQ form 3X with six subscales of leadership
styles.
Participants ask to assess the extent to which their leaders engage in specific activities as
measured by the MLQ. The MLQ form is self-scoring and has used 18 elements to the exclusion
of the least relevant in our country context to measure the three subscales (6elements for each) in
this study. These points are valued using a 5-point Likert scale labeled as1-Strong Disagree, 2-
Disagree, 3-Neutral, 4-Agree and 5-Strongly Agree.
The high rating shows a high effectiveness of the perception of the leadership style, while the
low rating implies a perception of low effectiveness within the scale. Apiece of the leadership
style has their own scales: i.e., Transformational leadership scales Transactional and Laissez-fair
leadership styles.
To measure the implementation of employee motivation, a questionnaire consisting of
23elements has been adopted with some adjustments from the research conducted by (Berhan,
2000). All elements, a part from general and demographic information are measured in five
points scales such as; Strongly disagree (SD)=1, Disagree(D)=2, Neutral(N)=3, Agree(A)=4 and
Strongly Disagree (SD)=5. The use Likert scale is to attain it easier for respondents to answer
question.

3.8. Data Analyzing Technique

Following data collection, it is necessary to use statistical techniques to analyses the information.
For this reason, survey data are processed using SPSS version 24. The relevant information was
initially be coded and for analysis. Descriptive statistics such as frequency, percentage, mean and
standard deviation was used to describe employee characteristics answers to leadership styles
and employee motivation perception towards.

Moreover, correlation and regression analysis was used to determine the relationship between
different leadership styles and dimensions of motivation. Correlation analysis shows the
direction and magnitude of the relationship between leadership style and employee motivation,
whereas regression indicate the effect of Leadership styles on employee motivation.

3.9. Ethical Consideration

The investigator has addressed the ethics of confidentiality and privacy. The researcher made a
thorough, conscious effort at all times to keep his promise. During the administration of the
questionnaire, sub-Cities ACA staff members were given a guarantee that their names would be
revealed in the questionnaire and research report. The inquiry was focused on subordinates as
target groups and they are the one who examine the success of their leaders, their responses
remained anonymous apart from being tied to a particular leader.
Additionally, participants were provided with a verbal and written description of the study and
informed consent may obtain before the survey. Taking part in the study is voluntary and responses
are confidential. Lastly, a copy of the final report could be provided to the organization as needed.

CHAPTER FOUR

Data Presentation Analysis and Interpretation

This chapter presents with the analysis of data collected from questionnaire. The major purpose of
the study was to investigate the relationship between leadership style and employee’s motivation.
In this analysis, the study answers the research questions as well as the objectives of the study.
Findings about the demographics of study participants, and the statistical analysis used to answer
the recent questions also presented. This helped to interpret and understand the results. Of the total
163 participants, 149 questionnaires were returned (91.5%) and used for further analysis. The
remaining 14(8.5%) of employee’s did not return to the researcher.
4.1 Demographic Characteristics of Respondents

Questionnaire was distributed equitably among male &female though are slightly female greater
in number (50.3%). So, I can be said that findings are quite representative of both sexes, thus at
ACA sub-Cities organization where gender equality is observed well which pave, the way as an
opportunity for future female leaders.

Table 4.1.1 Respondents by Sex Category

Sex Respondents by Percentage Respondents by Figure

Male 49.7 74
Female 50.3 75

Source: Fields Survey, 2024

Among the respondents, 18-25 age Sub cities has a significant 8.1% share, more than half are in
the age range of 26-35(79.9%). Thus, we can deduce that overwhelming majority of respondents
are either youth or middle age people. This is quite expected as majority of work force are within
the stated age ranges in Ethiopian case.

So, it may show as that it is the reflection of the countries working force and the bank could
understand from this that there is potential labor force for creativity and technology. Among
the respondents 35-45 age category with a significant 12.1% share.

Table 4.1.2 Respondents by Age’s Group

Age Group Respondents by age (%) Respondents by figure

18-25 8.1% 12
26-35 79.9% 119
36-45 12.1% 18
Total 100.0 149

Source: Fields Survey, 2024

As far as Educational level it is concerned that majority of respondents would at least have a
rd
first degree. That was actually the case as can be seen from Table 4.1.3 More than 2/3 of
respondents has First degree and Quarter of respondents have Masters’ degree.

Table 4.1.3 Respondents by Educational level

 Respondents by
Educational
Educational Level Level (%) Respondents by Educational level (Figure)

Bachelor's degree 78.5% 117

Master's degree and
above 21.5% 32

Total 100% 149

Source: Fields Survey, 2024

 4.2. Descriptive Statistics for Leadership styles

4.2. 1.Descriptive Statistics for Transformational Leadership style

It is a leadership approach that is defined as leadership that creates valuable and positive
change in the employee. A transformational leader focuses on “transforming" build respect,
Considers the moral and ethical consequences of decisions, Articulates a compelling vision of
the future, Looks at problems from many different angles Displays a sense of power and
confidence, Emphasize the importance of having a collective sense of mission From Bass and
Riggio (2006:94),"Transformational leaders are those who stimulate and inspire followers to
both achieve extraordinary outcomes and ,in the process, develop their own leadership
capacity.

Table 4.2.1 Transformational Leadership style

No Questionnaire No Mean Std

The manager seeks differing
1 perspectives when solving problem 149 3.782 0.85869

The manager talks optimistically

2 about the future. 149 3.6913 1.13839

The manager instills pride in me for

3 being associated with him/her. 149 3.8322 0.97539

The manager acts in which builds my

4 respect. 149 3.2953 1.12408

The manager goes beyond self-

5 interest for the good of the group. 149 3.8859 0.73088

The manager displays a sense of

6 power and confidence. 149 3.4698 1.10010

Aggregate 149 3.659 0.9879

Grand Mean: 3.659

The Grand mean of Transformational Leadership is 3.659, which led to overall mean of
this leadership style most of the times applicable because the mean was above the average.
 This shows that Transformational leadership is implemented in the ACA sub-Cities moderately.

4.2.2. Descriptive Statistics for Transactional Leadership Style

One of the components of full- range leadership theory is transactional leadership that involves
either positive or negative exchange, depending on the follower’s performance (Bass & Avolio,
1990). Transaction refers to modification in and redesign of the systems procedures, processes,
tasks and activities that take place between leader and employee.
This kind of change is usually handled by setting up a project to manage its implementation
with the negotiation occurred between leaders and manager.

Table 4.2.2.1 Transactional Leadership Style

No Questionnaire No Mean Std

The manager Provides me with
1. assistance in exchange for my efforts. 149 3.7248 1.16746

The manager Re-examines critical

assumptions to question whether they
2. are appropriate 149 3.6040 0.86069

The manager makes clear what one can

expect to receive when performance
3. goals are achieved 149 3.7181 1.25246

The manager expresses satisfaction

4. when I meet expectations. 149 3.9530 1.00898

The manager discusses in specific terms

that are responsible for achieving
5. Performance targets. 149 4.1208 0.71578

The manager waits for things to go

6. wrong before taking action. 149 3.2013 1.40933

Aggregate 149 3.72 1.0691

 Grand Mean: 3.72
The Grand Mean of Transactional Leadership is 3.72, this result implies that the respondents
could be conceptualizing their views on this construct. Respondents perceive their
transactional leadership style.

4.2.3. Descriptive Statistics for Laissez-fair leadership

The other full-range leadership style is the laissez-fair leadership which can notes that
leaders and the employee’s basis on maturity level. A non-leadership component
leader avoids accepting their responsibilities, are absent when needed, auto flow
requests for assistance, and resist expressing their views on important issues. Three
items are designed to assess the factor that affect the type of leadership style shows
with the results.

Table 4.2.3.1 Laissez-fair Leadership Style

No Questionnaire No Mean Std

The manager avoids getting involved
1 when important issues arise. 149 3.4362 1.29094

The manager fails to interfere until

2 problems become serious. 149 3.1208 1.12053

3 The manager was absent when needed. 149 2.9866 1.31512

The manager Shows that he/she is a firm
4 believer in “If it isn't broke, don’t fix it. 149 2.7450 1.30049

The manager delays responding to

5 urgent questions. 149 3.1477 1.15300

6 The manager avoids making decisions. 149 3.1074 1.29521

Aggregate 149 3.09 1.0266

Grand Mean: 3.09

Even though all items measuring Laissez-fair Leadership style is above the average mean with
the grand value of 3.09. This result reflects the Employees use such kind of leadership style in
their little above the average in organization. Respondents replied that principals rarely absent
 when needed, Rarely Avoids making decisions and sometimes delay responding to urgent
questions. This study the researcher determined that the ACA sub-Cities don’t know often what
laissez-faire leadership techniques can do for employee.
Source: Fields Survey, 2024

4.3 Correlation Analysis

The purpose of this study is to examine the relationship between the leadership style
and the motivation of the employee in their work. The research was conducted using
the Quantitative Method included questionnaires for the employee’s relating to
leadership style and motivation. The questionnaire was given to 149 employees who
working in ACA sub-Cities.

Table 4.3.1. Correlations Matrix among Leadership Styles and Employee Motivation

Transformational Transactional Laissez-Faire Employee

Motivation

Transformational Personal 1
correlation ** ** **
.429 .350 .631

Sig.(2-tailed) .000 .000 .000

N 149 149 149 149
Transactional Personal
correlation ** 1 ** **
.429 .350 .600

Sig.(2-tailed) .000 .000 .000

N 149 149 149 149
Laissez-Faire Personal
correlation ** ** 1 *
.429 .350 .227

Sig.(2-tailed) .000 .000 .000 .000

N 149 149 149 149
Employee Personal
Motivation correlation ** ** ** 1
.631 .600 .227

Sig.(2-tailed) .000 .000 .000

N 149 149 149 149
 **. Correlation is significant at the 0.01 level (2tailed).
*. Correlation is significant at the 0.05 level (2-tailed).

From the above, result it can be understand that Transformational, Transactional and
Laissez-fair leadership style leadership styles are significant at 0.001 level (2tailed).
Transformational leadership style has positive correlation r= (.631**) with employee’s
motivation Moreover, Transactional leadership style has also positive correlation r=
(.600**) with employee’s motivation. Laissez-fair leadership style has positive but weak
correlation (.227).

4.4. Regression Analysis

4.4.1. Assumption of Regression Analysis

The tests of hypothesis are no longer valid, since the standard errors are wrong.
Therefore, inorder to protect against the chance of getting and interpreting wrong
regression results the researcher conducted a diagnostic test.To make sure that them
biased,consistent,efficient and valid the following tests are conducted.

4.4.1.2 Test for Normality

CLRM assume that the distribution of the error termis normally distributed. As
field(2009), noted, that normality assumption is important while using regression and
worth while,if we want to make inference about the population parameter fromthe
sample parameters .If the mean of the residualis zero and constant variance the error
is normally distributed. Thus, the result infigure4.3 illustrates that the mean of the
residualis zero and approximately its variance is 1,which implies that thedistribution
of the error is normally distributed.
Figure: 4.4.1.2:- Normality Test

Source: SPSS out Put 2024.

4.4.1.3 Test for Linearity

The study applied Normal P-Plot of regression standardized Residual 1 (see figure
4.4.1.3) to test linearity. Since the points were systematically distributed around
diagonal line, linearity pattern was observed. Hence the straight line showed as the
relationship between the residuals and the predicted dependent variables scores was
good achievement.
Figure 4.4.1.3: Normal Point Plot of Standardized Residual

Source: SPSS out Put 2024

4.4.1.4. Test for Hetroscedasticity

Classical linear regression model assume the variance of the error terms constant, this is known
as homoscedasticity. If the variance of the error term is not the same, they are said to be
hetroscedastic.
In order to check the violation of this assumption there search used scatter plot technique. There
sultplots these residual, against standardized predicted value. If the plots have a pattern it implies
the presence of hetroscedasticity. Conversely if the plots depict pattern there is no evidence for
the presence of hetroscedasticity. As illustrated in the figure, 4.4.1.3, below the graph looks like
a random array dots or the plots have no pattern. So, homoscedasticity assumption is not
violated.
Figure 4.4.1.4. Hetroscedasticity test

Source: survey (2024) SPSS output

4.4.1.5. Test for Autocorrelation

Classical linear regression model assume cross-sectionally the covariance between

the error terms is zero. In other word it assumes there is no serial correlation among
error terms. The research applied Durbin Watson test, which is most commonly used
techniques of detecting autocorrelation. Thus, if the value of DW test is between 1.5
and 2.5 there is no evidence for the presence serial correlation among error terms
(Hassenet al, 2017). As illustrated in table 4.4.1.5 the DW test falls in the acceptable
range, which implies absence of serial correlation among errors.

Table 4.4.1.5: Durbin Watson test result

Model Durbin Watson

1 2.389

Source: survey (2024) SPSS output

 a
4.5 Analysis of Variance (ANOVA )

Table 4.5.1 ANOVA

Model Sum of
Squares df Mean Square F Sig.

Regression 62.890 3 20.963 58.040 b

.000

1. Residual 52.372 145 .361

Total 115.262 148

Source: survey (2024) SPSS output

a. Dependent Variable: Motivation

b. Predictors: (Constant), Leadership styles

An independent variable is said to be a significant predictor of the dependent variable if the

absolute t-value of the regression coefficient associated with that independent variable is greater
than the absolute critical t-value. In this study, the significance value is .000 which is less than
0.05 thus the model is statistically significant the motivation of employees with leadership styles.
The F-ratio in the ANOVA table tests whether the overall regression model is a good fit for the
data, In the above table the results for ANOVA reveals that F is 58.040.
The ANOVA table shows the overall significance/acceptability of the model from a statistical
perspective. As the significance value of F statistics shows a value (.000), which is less than
p<0.05 the model is significant. This indicates that the variation explained by the model is not
due to chance.
Model Summary

Model Summary
Model R R Square Adjusted R Std Error of the estimate
Square
1. .739
a .546 .536 .60099

Source: survey (2024) SPSS output

 2=
R The amount of variance in the dependent variable that is accounted for or explained by the
2
independent variable. The Adjusted R of 0.536 means that transactional, transformational and
laissez faire leadership styles accounts for 53.6 % of the variance in employee motivation.

4. 5.3. Results of Regression Analysis

Table 4.5.3.Regression coefficient analysis of the model

Unstandardized Standardized
Coefficients Coefficients t sig

Model Beta Std. Error Beta

(Constant) .579 .253 2.291 .023
Transactional .443 .058 .491 7.695 .000
Transformational .304 .060 .342 5.026 .000
Laissez-Faire .102 .047 .134 2.170 .032

Source: survey (2024) SPSS output

The table shows the impact of the independent variables i.e., Transactional, Transformational
and Laissez fair leadership styles on the dependent variable i.e., Employee motivation. The
result of regression analysis indicate .443, .304 and .102implies the direct relationship between
transactional leadership style, transformational leadership style, Laissez faire leadership style
positively affected employee motivation with regression coefficient of B=0.443, 0.304, and
0.102 respectively.

4.4.6. Interpretation of Regression Result and Hypothesis Testing

In this part of the study the relationship between the dependent variable and
independent variable were discussed. The dependent variable was employee
motivation where as independent variables were Transformational, Transactional and
Laissez-Faire Leadership Styles.
In regression output, the unstandardized coefficient of determination was used to
replace the unknown beta value of the regression model.

Beta indicates that the level of influence of each predict or variable on dependent
variable :as well it indicates the direction of relationship.

Positive beta coefficient indicates the variable has positive effect on dependent
variable. The significance value (p-value) implies the statistical significance of the
relationship. The constant term of the model indicates the value of employee
motivation if all explanatory variables held constant.

As illustrated in table 4.5.1 the coefficient of regression analysis indicates

transformational, transactional and laissez-faire leadership styles showed positive
effect and statistically significantat 5% significancelevel.Therefore,inthe next section
the researcher present and discuss the effect of predictor variables on employee
motivation.

Hypothesis 1

H1: 1 Transformational Leadership style has positive and significant effect on

Employee Motivation.

Results discussion: The result of regression coefficient analysis as illustrated in table

4.3.1 above revealed that transformational leadership style has positive and
statistically significant effect on employee motivation with a betavalue of 0.304 and
p-value of. 000 which is less than 0.05.This implies that,other explanatory variable
remain constant, if the means core value of transformational leadership increase by
1unit, on average the mean score value ofemployee motivation increase by 0.304 unit
and statistically significant at 5% significance level.

Decision: The researcher rejects the null hypothesis and accepted alternative
hypothesis; that means transformational leadership has significant effect on employee
motivation. This indicates that, transformational leadership will lead to a
correspondent increase on employee motivation.

Other researchers finding: The research made by (Podsakoff, Philip, Scott, Julie
and Daniel, 2000), investigated Transformational leadership is linked to positive
conduct of employees, including motivation and numerous activities of organizational
citizenship behaviorswhich is consistent with the result of this study.

Hypothesis 2

H1: 2 Transactional Leadership style has positive and significant effect on Employee
Motivation.

Results discussion: The result of table 4.5.3showed that transactional leadership style
has positive and statistically significant effect on employee motivation with a beta
coefficient of 0.443 and p-value of 0.000,which is less than 0.05. This implies that,
other explanatory variable remain constant, if the mean score value of transactional
leadership increase by 1 unit on average the mean score value of employee
motivation increase by 0.443 unit and statistically significant at 5% significance level.

Decision: The researcher rejects the null hypothesis and accepted alternative
hypothesis; that transactional leadership style means has significant effect on
employee motivation.This shows that an increase in transactional leadership style will
lead to correspond increase on employee motivation.

Other researchers finding: The research by(Bass et al., 2003) Poor transactional leaders may
be less likely to forestall problems and to intervene before problems come to the fore, whereas
more effective transactional leaders take appropriate action in a timely manner. Transactional
leaders display behaviors associated with constructive and corrective transactions. The
constructive style is labeled contingent reward and the correct style is labeled Management-by-
Exception (active and passive). The finding of the study revealed that transactional leadership
style has significant and positive effect on employee motivation
Hypothesis 3

H1: 3 Laissez-Faire Leadership style has positive and significant effect on

Employee Motivation

Results discussion: As table 4.5.3 indicates, l a i s s e z - f a i r e leadership style

showed positive and statistically significant effect on employee motivation with a
beta value of 0.102 andp-value 0.102 which is less than 0.05 but there is weak
correlation with employee motivation.

Decision: the researcher fail to accept directional hypothesis in favor of null

hypothesis that means: leadership style has week significant effect on employee
motivation.

Other researchers finding: The research by Bass Avolio (1997) and Hartog & Van
Muijen (1997), individualism leaders avoid making decisions, the supply of rewards
and therefore the provision of positive/negative feedback to subordinates.

This involves the motivation of employees because the leader isn’t there to determine
and guide them and ignore the communication and relationship between the leader
and therefore the followers.

4.5. DISCUSSIONS

The finding shows that there is a direct relationship between transactional leadership style and
employee motivation and also between transformational leadership style and employee
motivation. But there is weak and positive relationship between laissez-faire leadership style and
employee motivation. When the researcher stated transformational, laissez faire leadership and
transactional leadership has a direct relationship it means that most of the employees prefer it.
Direct (positive) relationship doesn’t necessarily mean all employees prefer it, it means
employees who wants a leader who inspires, motivates and being a role model to them.

This research papers results further supported by Bodla & Nawaz, 2010; Mancheno-Smoak et
al., 2009. On the study influence of leadership on employee productivity which covered 265
participants from faculty members and professors from public and private universities.
The study used the Multi factor Leadership Questionnaire (MLQ) to measure various aspects of
transformational leadership.
The results showed a significant relationship between transformational leadership and employee
motivation. Hamstra, Van Yperen, Wisse & Sassenberg, 2011; Mancheno-Smoak et al., 2009,
Wells and Peachey (2011) also found a positive relationship between employee motivation and
employee performance. Some researchers focused on leadership styles that guide followers to
perform beyond expectations. The study covered psychology students with full-time and part-
time jobs with an average age of 20 years. The findings indicated that if followers‟ foci were on
promotions or prevention, transformational leadership in turn influenced a reduction in turnover
intention.

The findings of this study also found that there is a positive relationship between leadership style
and employee motivation as mentioned on table 4.3.1 correlation matrix. A correlation
coefficient between transformational leadership and employee motivation is 0.631 this variable
also has a positive correlation at the magnitude of 0.631, so they are statistically significant at
0.01 level. The regression result shows that the transformational leadership shows the result of

0.60 it means that the independent variable has a positive relationship with the dependent
variable. Several researchers argued that transformational leadership has a positive impact on
employee motivation (Bass, 2009; Li &employee motivation Hung, 2009; Pereira & Gomes,
2012; Pieterse, van Knippenberg, Schippers, & Stam, 2010). And Contrary to the findings, other
scholars‟ research concluded that the effectiveness of transformational leadership existed only in
certain conditions, (Li, Chiaburu, Kirkman, & Xie, 2013; Northouse 2013; Pieterse et al., 2010;
Wang & Howell, 2010).

As this paper finds the research outcome there are positive outcomes. Particularly as some
scholars found transformational leadership has some criticisms like; conceptual clarity is vague
because of the wide range of characteristics, the measurement of transformational leadership
using the MLQ compels researchers to question whether the four components correlated with
transactional and laissez-faire factors , transformational leadership approaches leadership as a
trait rather than a learned behavior, studies have not established a causal relationship that
transformational leaders caused the transformation of employees and organizations, a perception
existed that transformational leaders are elitist, the leader’s success was independent of
followers‟ actions.

Many scholars found results contrary to the above critiques which is transformational leadership
has its own strengths like; there are extensive research conducted on transformational leadership
utilizing qualitative methodologies and that 34% of articles in one leadership journal focused on
the transformational leadership style, The principle of transformational leadership is consistent
with the needs and modern belief that leaders should advocate on behalf of followers,
transformational leadership researchers approach leadership as a process between followers and
leaders that care for the needs of others, transformational leadership extends beyond motivation
and rewards focuses on followers‟ needs, and growth, transformational leaders are morally
uplifting, interested in moving employees to higher moral responsibilities, and encourages
followers to transcend beyond self-interests.

Transactional leadership occurs when leaders inspire followers to make a commitment to a

shared vision and goals. As the researcher conducted a quantitative study to explore the effect of
transactional leadership styles on career satisfaction found that transactional leadership has a
strong relationship with employee motivation as mentioned on table 4.3.1Correlation Matrix. A
correlation coefficient between transactional leadership and employee motivation is 0.6 this
variable also has a positive correlation at the magnitude of 0.6, so they are statistically significant
at 0.01 level. It is also the regression result shows that the transformational leadership shows the
result of 0.60 it means that the independent variable has a positive relationship with the
dependent variable employee motivation. This positive result is further supported by Riaz and
Haider (2010).

As this paper finds the research outcome there are positive outcomes. Particularly as some
scholars found transformational leadership has some criticisms like; conceptual clarity is vague
because of the wide range of characteristics, the measurement of transformational leadership
using the MLQ compels researchers to question whether the four components correlated with
transactional and laissez-faire factors , transformational leadership approaches leadership as a
trait rather than a learned behavior, studies have not established a causal relationship that
transformational leaders caused the transformation of employees and organizations, a perception
existed that transformational leaders are elitist, the leader’s success was independent of
followers‟ actions.
Transactional leadership occurs when leaders inspire followers to make a commitment to a
shared vision and goals. As the researcher conducted a quantitative study to explore the effect of
transactional leadership styles on career satisfaction found that transactional leadership has a
strong relationship with employee motivation as mentioned on table 4.3.1 Correlation Matrix.

A correlation coefficient between transactional leadership and employee motivation is 0.6 this
variable also has a positive correlation at the magnitude of 0.6, so they are statistically significant
at 0.01 level. It is also the regression result shows that the transformational leadership shows the
result of 0.63 it means that the independent variable has a positive relationship with the
dependent variable employee motivation. This positive result is further supported by Riaz and
Haider (2010)., on their study on participants investigation included lower and middle level
managers employed for at least five years.

The results of the study disclosed a significant relationship between transactional leadership and
employee motivation. Transactional leadership positively related to job success. Transactional
leaders attempt to motivate followers on an existing set of personal beliefs. Chaudhry and
Husnain (2012) also conducted an investigation using a mixed method approach with 278
banking employees. The demographics of the population included 63 entry employees, 193
middle-level managers, and 22 top-level managers. The findings of the study revealed that
employees were more motivated with a transactional leader in contrast to a transformational
leader. In fact, the banking industry experienced a low turnover rate under the transactional
leadership style.

Laissez-faire leadership is close to the transformational and transactional leadership spectrum

and represents the absence of leadership. As per the findings of this specific research the
correlation coefficient between Laissez-faire leadership and employee motivation is 0.227 this
variable also has a weak positive correlation at the magnitude of 0.227, so they are statistically
insignificant at 0.01 level. And the regression result shows that the Laissez-faire leadership
shows the result of 0.227 it means that the independent variable has significantly weak
relationship with the dependent variable employee motivation.

Laissez-faire leaders may not be appropriate for the type of work environment where workers
receive minimal feedback to achieve employee motivation. In fact, Sadeghi and Pihie confirmed
from a quantitative study (2012) that a positive relationship with laissez-faire leadership and
employee motivation. It involves academic deans because the workers desired to operate with
autonomy.
 CHAPTER FIVE

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

5.1. Summary

The researcher tried to explore whether employees achieved employee motivation based on the
manager’s leadership style, and how differently the two common leadership styles affect
employee motivation. Participants‟ responses validated theories discussed in chapter two as the
foundation of the current research. Based on the data analyzed the following major findings
were drawn.

The results of demographic variable show that from the sample taken from in Adama n=163
employees 49.7% male and 50.3% were female respondents. The results on ages showed that
majority of sub-Cities ACA employees aged between18-25 are 8.1% 26and 35 are 79.9%, and
36-45 are 12.1%. While the smallest group of respondents was those aged between 18-25 are
8.1% who are junior Bank Trainee.

The findings of the research revealed that transformational leadership style is strongly related
with employee’s motivation and it is the dominant one and also sub-Cities ACA employee’s
altogether shows positive response for transactional leadership style, but positive and weak
response on laissez-faire leadership style. Accordingly, the finding of the study made the
accompanying conclusions; there is a significant relationship between leadership styles
(transformational, transactional) but weak relationship between laissez-faire leadership style and
employees’ motivation. In general, the research study achieved its objectives of determining the
relationship between leadership styles and employee motivation at ACA sub-Cities with
particular focus to Adama sub-Cities.
5.2. Conclusion

The main objective of the study was to examine the effect of leadership styles on employee
motivation of employees in Adama City Administration . Data was collected from employees
currently working in ACA area sub-Cities by using structured questionnaire with Likert scale.
Statistical Package for Social Sciences software (SPSS) version 24 was employed to analyze the
demographic characteristics of the respondents, correlation and regressions.

The two dominant leadership styles (transformational, transactional) are supported by employees
who are working at ACA in Adama sub-Cities. This leadership styles make employees more
satisfied with their current job. As Epitropaki & Martin (2013); Long & Thean (2011); Pieterse
et al. (2010) and Chaudhry and Husnain (2012) got similar findings to Northouse (2013) which
stated that transactional leadership has a positive relationship with employee motivation. As per
this specific research paper results transactional leadership was positively correlated with
employee motivation as transactional leaders more focused on meeting employees the lower
level of Maslow’s hierarchy of needs, specifically physiological and safety needs. Transactional
leadership has is correlated with employee motivation in the magnitude of 0.6and it is positively
related with employee motivation.

Also, transformational leadership has a direct relationship with employee motivation. This
justification more supported by (Bodla & Nawaz, 2010; Mancheno-Smoak et al., 2009) they
stated that followers were motivated to look beyond self-interests for the good of the group and
view the work responsibilities from new perspectives. The results of their research showed a
significant relationship between transformational leadership and employee motivation. This
research paper also discloses that employee motivation and leadership styles have strong
correlation at the magnitude of 0.631 also, several studies revealed findings that laissez-faire
leadership style had significant relationship with employee motivation (Bass, 2009; Chaudhry &
Husnain, 2012; Ghorbanian, et al., 2012; Sadeghi & Pihie, 2012). This paper not supports the
results of the above scholars as laissez-faire leadership is positively correlated at the magnitude
of 0.227 and as compared transformational and transactional leadership style because laissez –
faire has low correlation result.
5.3. Recommendations

Based on the above conclusions, the researcher suggests the subsequent recommendations: The
ACA sub-Cities leader has got to determine the acceptable leadership style to implement for
workers to realize organizational goal. Since ACA sub-Cities employees prefer transactional and
transformational leadership style, the managers of the ACA sub-Cities got to act as role models
by being the primary to try to what need to be done. they have to motivate the workers and act as
coach for the event of future leaders by delegating duties and interesting them in deciding. From
the data collected from the questionnaire in ACA sub-Cities there's no standardize leadership
style which may be implemented everywhere the sub-Cities, it's recommended that ACA sub-
Cities has got to implement it standardize leadership style in order that every employee face an
equivalent leadership style as employees changes sub-Cities by promotion or transfer.

Further research studies are often conducted on the investigation of other factors like
demographic factors to assess their impact on the leadership styles also as employee motivation.
Additionally, the case study focused on the impact on the leadership styles on the worker
motivation of ACA sub-Cities employees. It’s therefore recommended that an identical study be
replicated in other Regions and another of ACA bank in Ethiopia. In future research, it might be
interesting to assess causal relationships and consider alternative modes of enquires like
employing the longitudinal design (e.g., observations or interviews) to work out if the findings
tested are likely to be sustained.

Future studies can benefit by including leadership styles other variables in determining employee
performance. Comparisons also can be made between the private and Governmental banks. The
findings of this study might not be generalized to the entire industry or to other sub-Cities within
the country.
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Appendix A:
ARSI UNIVERSITY
School of Graduate Studies
Questionnaire to be filled by respondents
Dear Respondents, I would like to express my sincere appreciation for your time, honest, prompt
responses and willingness.
Objective
This questionnaire is designed to conduct thesis entitles “The Effect of Leadership Style on
Employee Motivation in The Case of Adama City Administration .” for the partial fulfillment of
the requirement of the award for master of business administration. Hence, your involvement is
regarded as a great input to the quality of the research results. Therefore, I kindly request you to
attempt all the questions in the questionnaire. Your honest and thoughtful response is valuable
and will only be used for academic purpose. Whatever information you provide will be treated
with utmost confidentiality. Respectfully,

Part I: Demographic Information

1.Sex: Male [ ] Female [ ]

2.Age 18-25 [ ] 26-35 [ ] 36-45 [ ]

46-55 [ ] 56-65 [ ] 66 or above [ ]

3.Educational qualification: 12 Complete and below [ ] Diploma [ ]

Degree [ ] Masters and above [ ]

 Part II: Question related to the specific objectives (Independent Variables)
Please tick from 1 to 5 for your level of agreement for the given statements related to leadership
in your organization.
1= Strongly Disagree 2=Disagree 3=Neutral 4=Agree 5=Strongly Agree

Level of Agreement
Leadership style measures 1 2 3 4 5

Transformational Leadership

1. The manager seeks differing perspectives when solving problem

2. The manager talks optimistically about the future.

3. The manager instills pride in me for being associated with him/her.
4. The manager acts in which builds my respect.
5. The manager goes beyond self-interest for the good of the group.
6. The manager displays a sense of power and confidence.
Transactional Leadership
1. The manager Provides me with assistance in exchange for my efforts.
2. The manager Re-examines critical assumptions to question whether they
are appropriate.

3. The manager makes clear what one can expect to receive when
performance goals are achieved.

4. The manager expresses satisfaction when I meet expectations.

5. The manager discusses in specific terms who are responsible for achieving
performance targets.

6. The manager Waits for things to go wrong before taking action.

Laissez- faire Leadership
1. The manager avoids getting involved when important issues arise.
2. The manager fails to interfere until problems become serious.
3. The manager was absent when needed.
4. The manager Shows that he/she is a firm believer in “If it isn't broke, don’t
 fix it.
The manager delays responding to urgent questions.
The manager avoids making decisions.

Part II: Question related to the specific objectives (Dependent Variables)

Similar to the above question, please tick from 1 to 5 for your level of agreement for the given
statements related to leadership in your organization.
1= Strongly Disagree 2=Disagree 3=Neutral 4=Agree 5=Strongly Agree

No Items on Motivation 1 2 3 4 5
Intrinsic Motivation
1 I am satisfied with the type of work I perform since it provides me
with opportunity for achievement and challenging work.

2. I have done my job with a strong feeling of responsibility since, I

positively influencing other people’s lives.

3. The job provides me with a strong feeling of responsibility since I

am contributing to the society.

4. The types of work I perform provide me with opportunity for

personal growth and development.

5. I will not be terminated without a good cause in this institution.

6. I have a chance to work alone on the job.
7. There is a sense of responsibility in my work.
8. I am allowed to decide on the methods of performing my work.
9. I am completely independent, when I perform my work.
10 I have a part in decision making process.
Extrinsic Motivation
11 I am satisfied with promotion and the salary in the institution.
12 I am satisfied with the fringe, benefits like medical expense, like
education fee coverage, outside training……etc.

13 I am satisfied with the job security in this institution.

14 The management of the institution cares for employee’s wale fare.
15 There is opportunity for in-house training
(Institutional training).

16 I am satisfied with the relationship with coworkers in the

workplace.

17 I have good communication with my coworkers in the workplace

and free to be with my colleagues.

18 When I have questions or concerns my supervisor is able to address

them and my working hours are reasonable.

19 I am given a written appreciation letter for my good work.

20 I usually acquire acknowledgment for the work done by me.
21 I am ready to accept constructive criticism regarding my work.
22 I am praised regularly for my good work.
23 I receive feedback on making progress.

Thanks!!!