The Effects of Leadership Styles on Organizational Performance: A Survey of Selected Federal Civil Service Institutions in Ethiopia

Abstract

This study aimed to examine the effects of leadership styles on organization performance of Ethiopian Civil Service Institutions at federal level. The study employed quantitative research method with correlational design. The respondents of this study were 400 middle and lower level managers, experts, and employees from six federal public organizations and selected using simple random and proportional sampling. Participants were informed of the objectives of the study and assured of the confidentiality of the research. The reliability test showed that all variables scored above 0.7 Cronbach alpha coefficients. Percentage, mean, standard deviations, Pearson and Spearman rho correlations, multiple regression and MANOVA were used to analyze the data. The findings revealed that leadership styles predict 49.1 percent of organizational performance, both transformational and transactional leadership styles strongly and positively correlated with organizational performance while laissez-faire leadership style is negatively correlated. It is concluded that leadership style has effects on organizational performance, and leaders who exercised both transformational and transactional leadership styles attained more organizational performance than leaders who practiced laissez-faire leadership style. Thus, leaders in civil service sector need training as well as education developing executive leadership package. Moreover, the research calls for leaders to use combined leadership styles to ensure high organizational performance. The findings of the study add to limited but growing body of research on civil service sector leadership and organizational performance.