The Effects of Leadership Styles on Organizational Performance: A Survey of Selected Federal Civil Service Institutions in Ethiopia
DOI:
https://doi.org/10.63990/2022ajoldvol7iss1pp1-27Keywords:
Leadership styles, Transformational leadership, Transactional leadership, Laissez-faire leadership, Organizational performanceAbstract
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.
References
Akintayo, D. (2012) ‘Working environment, workers’ morale and perceived productivity in industrial organizations in Nigeria’, Education Research Journal, Vol. 2, No. 30, pp.87–93.
Asika N (2004) Business organization and management. Makuganu and Brothers enterprise, Lagos.
Avolio, B.J. and Bass, B.M. (2004), Multifactor Leadership Questionnaire: Manual and Sampler Set, 3rd Ed., Mind Garden, Redwood City, CA Bass, B. M., & Riggo, R.E., (2006). Transformational leadership. New York: Psychology Press.
Bass, B.M. & B.J. Avolio, 1994. Improving Organizational Effectiveness Through Transformational Leadership. London: SAGE Publications.
Bass, B.M. (1999), “Two decades of research and development on transformational leadership”, European Journal of Work & Organizational Psychology, Vol. 8 No. 1, pp. 9-32.
Bass, B.M. (2000). Measures for leadership Development: Multifactor Leadership Questionnaire (MLQ) (Technical Report).CA, Redwood City: Mind Garden.
Bass, B. M. (1990). Bass and Stogdill's handbook of leadership: theory research and managerial applications 3rd edition. NY: Free Press.
Bass, B.M. & B.J. Avolio, 2000. MLQ Multifactor Leadership Questionnaire. Second Edition. Redwood City, CA: Mind Garden.
Bass, B. M., & Riggio, R.E., (2006). Transformational leadership. New York: Psychology Press.
Bennis, W. (2007). The challenge of leadership in the modern world: introduction to special issues. Am. Psychol., 62 (1), 2-5.
Blanchard, K. (2007). The heart of a leader: Insights on the art of influence. David C. Cook. Colorado Springs, USA
Bolton, D. A. (2010). The Relationship between Principals' Transformational Leadership Behaviors and School Culture. (Doctoral dissertation). Retrieved from ProQuest Dissertations & Theses.
Bryman, A. (2008). Social research methods. 3rd edition. London: Oxford University Press.
Chris and Ukaidi. (2016). The influence of leadership styles on organizational performance in Nigeria. Published by European Centre for Research Training and Development UK.
Cohen, J. (1988). Statistical power analysis for the behavioral sciences. 2nded. New York: Lawrence Erlbaum Associates.
Djoko Setyo Widodo, P. Eddy Sanusi Silitonga1, and Hapzi Ali (2017). Organizational Performance: Analysis of Transformational Leadership Style and Organizational Learning. Saudi Journal of Humanities and Social Sciences ISSN 2415-6256 (Print). Scholars Middle East Publishers.
Ebrahim Hasan Al Khajeh (2018)," Impact of Leadership Styles on Organizational Performance", Journal of Human Resources Management Research, Vol. 2018 (2018), Article ID 687849, DOI: 10.5171/2018.687849
Elenkov, D. S., 2002. Effects of leadership on organizational performance in Russian companies. Journal of Business Research, 55(6), pp. 467-480.
Federal Civil Service Commission (2020). The status of Institutional Change and Good Governance Performance Evaluation in Federal Institutions.
Field A. (2005). Discovering statistics using SPSS. 3rded. London: Sage publications.
Fu-Jin .W, Shieh .C & Tang . M. (2011). Effect of leadership style on organizational performance as viewed from human resources management strategy. African journal of business management, 4(18), 3924-3936.
Igbaekemen, G. O. & Odivwri, J. E., 2015. Impact of leadership style on organization performance: A critical literature review. Arabian Journal of Business and Management Review, 5(5), pp. 1-7.
Jyoti, J. & Bhau, S., 2015. Impact of transformational leadership on job performance: Mediating role of leader– member exchange and relational identification. SAGE Open, 5(4), pp. 1-13.
Hackman, J. R., & Wageman, R. (2007). Asking the right questions about leadership: Discussion and conclusions. American Psychologist 62, no. 1: 43-47.
Hargis, A. (2011). Roles of Responsibilities of a Transformational Leadership Superintendent: A case study. (Doctoral dissertation). Retrieved from ProQuest Dissertations & Theses.
Harris, A., Leithwood, K., & Day, C. (2007). Distributed leadership and organizational change: Reviewing the evidence. J Educ Change 8, 337–347. https://doi.org/10.1007/s10833-007-9048-4
Haque, A. U., Faizan, R., Zehra, N., Baloch, A., Nadda, V., & Riaz, F. (2015). Leading Leadership Style to Motivate Cultural-Oriented Female Employees in IT Sector of Developing Country: IT Sectors’ Responses from Pakistan. International Journal of Academic Research in Business and Social Sciences, 5, 280-302.
Howell JM & Avolio BJ. (1993) Transformational leadership, transactional leadership, locus of
control, and support for innovations: key predictors of consolidated-business-unit performance. Journal of Applied Psychology;78(6): 891– 903.
Kaplan, R., & Norton, D. (1992). The balanced scorecard-measures that drive performance. Harvard Business Review, 71-79.
Koestenbaum, P. (2002). Leadership: The inner side of greatness. A philosophy for leaders. Jossey-Bass, San Francisco, USA.
Kothari, C. R. (2004). Research methodology: Methods and techniques. New Age
International.
Longe, O. J., 2014. Leadership style paradigm shift and organizational performance: A case of the Nigerian Cement Industry. African Research Review, 8(4), pp. 68-83.
McGrath, G. R & MacMillan, I. C. (2000). Entrepreneurial Mindset: Strategies for continuously creating opportunity in an age of uncertainty. Harvard Business School Press Books
McManus, J. (2006). Leadership: projects and human capital management. London, UK, Elsevier Ltd.
Northouse, P. G. (2001). Leadership: Theory and practice (2nded.). Thousand Oaks, CA: Sage Publications, Inc.
Northouse, P. G. (2010). Leadership theory and practice (5thed.). Thousand Oaks, CA: Sage Publication, Inc.
Northouse, P. G. (2015). Leadership: Theory and practice. Sage publications.
Obiwuru, T. C., Okwu, A. T., Akpa, V. O. & Nwankwere, I. A., 2011. Effects of leadership style on organizational performance: A survey of selected small scale enterprises in Ikosi-Ketu council development area of Lagos State, Nigeria. Australian Journal of Business and Management Research, 1(7), pp. 100-111.
Ojokuku, R. M., Odetayo, T. A. & Sajuyigbe, A. S., 2012. Impact of leadership style on organizational performance: a case study of Nigerian banks. American Journal of Business and Management, 1(4), pp. 202-207.
Pallant, J. (2010). SPSS Survival Manual. New York, NY: McGrawHill.
Plunkett, W. R., Attner, R. F., & Allen, G. S. (2008). Management: Meeting and Exceeding Customer Expectations, ( 9th ed.)Thomson South Western Publication, New York, USA, 2008
Rue, L. & Byres, L. (2009). Management: Skills and Application. McGraw-Hill Education, ISBN 9780073381503.
Russell, R.V. (2005). Leadership in recreation. New York: McGraw-Hill., 3rd edition.
Sadia Arif and Aman Akram (2018). Transformational Leadership and Organizational Performance: The Mediating Role of Organizational Innovation. SEISENSE Journal of Management Vol. 1.
Saleem, H. (2015). The Impact of Leadership Styles on Job Satisfaction and Mediating Role of Perceived Organizational Politics. Procedia-Social and Behavioral Sciences, 172, 563-569. https://doi.org/10.1016/j.sbspro.2015.01.403
Sashkin, M. & Sashkin, M. 2003. Leadership That Matters. San Francisco: Berrett koehler Publishers Inc.
Simret, G. (2020). Authentic Leadership and Employees’ Commitment to Organizational Change: The Mediating Role of Trust in Leadership in the case of Selected Public Sector Organizations. Unpublished
Sofi, M. A. & Devanadhen, D. K., 2015. Impact of Leadership Styles on Organizational Performance: An Empirical Assessment of Banking Sector in Jammu and Kashmir. IOSR Journal of Business and Management, 17(8), pp. 31-45.
Soughi A. O., Bon A.T., & Hassan M., H. (2015). The Impact of Leadership Styles on Employees’ performance in Telecom Engineering companies. Australian Journal of Basic and Applied Sciences, 8(4) Pages: x-x
Tabachnick, B.G. & Fidell, L.S. (2019). Using multivariate statistics (7th edn). Boston:
Pearson Education.
Timothy, O. C., Andy, O.T., & Idowu, N.A. (2011). Effects Of Leadership Style On Organizational Performance: A Survey Of Selected Small Scale Enterprises In Ikosi-Ketu Council Development Area Of Lagos State, Nigeria. Australian Journal Of Business And Management Research Vol.1 No.7 [100-111].
Uchenwamgbe, B.-B. P., 2013. Effects of Leadership Style on Organizational Performance in Small and Medium Scale Enterprises (SMEs) in Nigeria. European Journal of Business and Management, 5(23), pp. 53-73.
Ukaidi, C.U.A. (2016). The influence of leadership styles on organizational performance. Global Journal of Human Resource Management, 4(4) 25-34.
Wahab, Rahmat, Yusof, and Mohamed, (2015). Organization Performance and Leadership Style: Issues in Education Service. UiTM Sarawak, Kuching, Malaysia, s. Published by Elsevier Ltd
Wang, F. J., Chich-Jen, S. & Mei-Ling, T., 2010. Effect of leadership style on organizational performance as viewed from human resource management strategy. African Journal of Business Management, 4(18), pp. 3924-3936.
Xu, G. Y. & Wang, Z. S., 2008. The impact of transformational leadership style on organizational performance: The intermediary effects of leader-member exchange. Long Beach, CA, USA, IEEE Xplore, pp. 1090-1097.
Yahaya, A., Yahaya, N., Bon, A.T., Ismail, S. & Noor, N.M. (2012). The relationship between big five personality with work motivation, competitiveness, and job satisfaction. Elixir Psychology, 44(a), pp. 7454–7461.
Yamane T 1967, Statistics, an Introductory Analysis, Harper and Row, New York
Yukl. G. A. (2010). Leadership in Organizations. (7thed.). Upper Saddle River, NJ: Prentice Hall.
Yukl G (1994). Leadership in organizations (2nd ed.). Prentice-Hall International Co.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2022 Berhanu Belayneh Beyene
This work is licensed under a Creative Commons Attribution 4.0 International License.
