LEADERSHIP STYLE AND ITS INFLUENCE ON ORGANISATIONAL
CULTURE, A CASE STUDY OF THE CHEMICAL MANUFACTURING
INDUSTRIES IN ETHIOPIA
ALEMAYEHU AYELE
JANUARY 2021
NATIONAL AVIATION COLLAGE, ADDIS ABABA, ETHIOPIA
LEADERSHIP STYLE AND ITS INFLUENCE ON ORGANISATIONAL
CULTURE, A CASE STUDY OF THE CHEMICAL MANUFACTURING
INDUSTRIES IN ETHIOPIA
A
THESIS
SUBMITTED
DEPARTMENT
OF
TO
POST
BUSINESS
GRADUATE
ADMINISTRATION
STUDIES
PROGRAM,
NATIONAL AVIATION COLLEGE, IN PARTIAL FULFILLMENT OF
THE REQUIREMENTS FOR THE AWARD OF A MASTER’S DEGREE IN
BUSINESS LEADERSHIP
Alemayehu Ayele
ADVISOR: PROFESSOR EMMANUEL AWUOR
JANUARY 2021
NATIONAL AVIATION COLLAGE, ADDIS ABABA, ETHIOPIA
i
DECLARATIONS
I the undersigned, Alemayehu Ayele, Registration Number/I.D. Number GBL/001/11, do
hereby declare that this Thesis is my original work and that it has not been submitted partially;
or in full, by any other person for an award of a degree in any other college/institution.
Alemayehu Ayele
Signature……………………
Date…………….
This Thesis has been submitted for examination with my approval as College supervisor.
Professor Emmanuel Awuor
Date: 29th January 2021
Signature:
ii
APPROVAL
The undersigned certify that they have read and hereby recommend to the National Aviation
College to accept the Thesis submitted by Alemayehu Ayele, and entitled
“leadership
style
and its influence on organizational culture A case study in the Ethiopian chemical manufacturing
industries ”, in partial fulfillment of the requirements for the award of a Master’s Degree in
Business Leadership.
Professor Emmanuel Awuor
Signature:
Date:
Name of Internal Examiner: Sisay Debebe(PhD)
29th January 2021
Signature…
……..
Date……………………...
Name of External Examiner …………………………..
Signature………….
……..
Date……………………....
Name of Head of Department ……………………….
Signature………………….
Date……………. ………..
iii
ABSTRACT
The purpose of this study was to assess the leadership style and its impact on organizational
culture in the selected Ethiopian Chemical Industry. A strong leader can create a sustainable and
good Organizational Culture the most asset of a company This thesis will emphasize the context
of leaders of an organization and the amount of influence or non-influence leadership has on
organization culture. A quantitative method research design is used in this research. The research
was conducted at selected five chemical industries in Ethiopia This study aims to determine the
current leadership style adopted by the company Managers using the Multifactor Leadership
Questionnaire (MLQ) and assess the current organization culture practiced by the selected
companies using the Organizational Cultural Assessment Instrument (OCAI). Previous studies
have proved the reliability and validity of these measuring instruments. The analysis of data was
done using the Statistics Package for Social Scientists (SPSS) version 26.0, with the results
presented by tables and/or figures. The target population of the study was made up of the staff
in the five selected companies working on managerial and different hierarchical levels in the
organization who have a permanent employment contract with the companies. The sample size
of the study was 160 employees. The findings of the study revealed that the leadership styles of
Organizations do influence organizational culture.
Key Words: -Leadership Style, Laissez-Faire Leadership Style, Transformational Leadership
style, Transactional Leadership style, Organizational Culture
iv
ACKNOWLEDGEMENTS
I would like to express my deep and sincere gratitude to my research advisor, Professor
Emmanuel Awuor for allowing me to do my research paper and providing invaluable guidance
throughout this research. His, sincerity and motivation have deeply inspired me.He has
instructed the methodology to carry out the research and the way of presenting the research
works as clearly as possible.It was a great privilege and honor to work and study under his
guidance. His guidance and patience in reviewing the drafts, of this paper at various levels,
correcting it step by step, and his constructive comments are greatly appreciated and have
transformed this thesis into its present form.
I am extremely grateful to my wife and children for your patience, sharing your time for my
education, you are the reason for all the good things in my life. Because of you, I got this degree.
I would like also to express my thanks to all the selected industries staff for their cooperation in
providing me the required data. The encouragement, guidance, advice of my friends and
colleagues also contributed a lot to the completion of this research. Hence, it is a pleasure to
express my heartfelt appreciation to all those who have contributed to the completion of this
thesis.
v
TABLE OF CONTENTS
DECLARATIONS
ii
APPROVAL
iii
ABSTRACT
iv
ACKNOWLEDGEMENTS
v
TABLE OF CONTENTS
vi
LIST OF TABLES
viii
LIST OF FIGURES
ix
LIST OF APPENDICES
x
LIST OF ACRONYMS
xi
CHAPTER ONE INTRODUCTION AND BACKGROUND OF THE STUDY
1
1.1 Introduction
1
1.2 Background of The Study
1
1.3 Problem Statement
2
1.4 Objectives of the Study
5
1.5 Research questions
5
1.6 Significance of the Study
6
1.7 Scope (Delimitation)of the Study
6
1.8. Limitations of the study
7
1.9 Organization of the Study
7
CHAPTER 2. LITERATURE REVIEW
8
2.1. Introduction
8
2.2 Theoretical literature review
8
2.3 Concept of Leadership Styles
12
2.4 Organizational culture
14
2.5 Impact of Leadership style on organizational Culture
17
2.6 Empirical literature review
18
2.7 Conceptual Framework of The Study
22
CHAPTER THREE RESERCH METHODOLOGY
24
3.1 Introduction
24
3.2 Research Design
24
3.3 Population and Sampling Design
25
3.4 Data Source and Types
27
3.5 Data Collection Tool
27
3.6. Methods of Data Analysis
28
3.7. Defining the Variables in Brief
28
vi
3.8. Piloting of the instrument
28
3.9. The validity of the Instrument
29
3.10. Reliability and Validity Estimation of the Questionnaire
29
3.11 Ethical Consideration
31
CHAPTER 4 DATA PRESENTATION AND ANALYSIS
32
4.1. Introduction.
32
4.2 Presentation of results:
32
4.3. Biographical Data.
32
4.4. Cross-tabulation.
39
4.5. Descriptive analyses of Leadership styles.
41
4.6. Outcomes of Leadership styles of Company leaders.
44
4.7. Summary of the leadership style of the Five Companies.
46
4.8 Organizational Culture.
48
4.9 Conclusion.
49
CHAPTER 5 RECOMMENDATIONS AND ONCLUSIONS
50
5.1 Introduction.
50
5.2. Summary.
50
5.3. Conclusion.
53
5,4. Recommendations.
53
References
57
vii
LIST OF TABLES
Table 2.6. The relationship between leadership and organizational culture
Table 3.3.1Population size of the five industries
Table 3.3.4. Calculated sample size and returned questionnaire
Table 3.10.1 Expected mean value of the subscales
Table 3.10.2 Test result of the MLQ
Table 4.3 Biographical characteristics of the respondents
Table 4.4.1: Gender by Company
Table 4.4.2: Age bracket by Company
Table 4.4.3: Education level by Company
Table 4.4.4: Service year among company
Table 4.5-1: Mean and standard deviation result of leadership dimensions
Table 4.5-2 mean score of Transformational leadership subscales
Table 4.5-3 Mean Values of transactional and Laizes-Faire Laissez leadership style
Table 4.8: OCAI analyses result for the five companies
Table 5.2.1: Leadership style organization culture relation
Table 5.2.2: Influence and preference
viii
21
24
26
30
30
33
39
39
40
41
42
43
44
48
52
52
LIST OF FIGURES
Figure 2.9: Conceptual Framework for the Study
Figure 4.3.1: Sample distribution by Company
Figure 4.3.2: Gender of the Sample
Figure 4.3.3: Age of the sample
Figure 4.3.4: Education level of sample
Figure 4.3.5: Service Year of The Sample
Figure 4.3.6: Job Position of the sample
Figure 4.3.7: Department of the Sample
Figure 4.4.1: Gender of the Sample by Company
Figure 4.6.1: Mean and SD. Values for effectiveness
Figure 4.6.2. Mean and SD. Values of Extra effort
Figure 4.6.3: Mean and d. value for satisfaction
Figure 4.7: Summarized mean values for leadership styles
ix
23
34
34
35
35
36
37
38
40
45
45
46
47
LIST OF APPENDICES
Appendix 1: Questionnaire: Biographical ............................................................................................ 61
Appendix 2: (MLQ) Questionnaire: Leadership Style for Managers and supervisors ........................... 61
appendix 3 (MLQ) Questionnaire for non-managerial staff................................................................... 64
Appendix 4 OCAI questionnaire Organizational culture ...................................................................... 66
x
LIST OF ACRONYMS
ANOVA,
Analysis of variance
HCCQ,
Humming Corporate Culture Questionnaire
MLQ
Multifactor Leadership Questionnaire
OCPO
Organizational Culture Profile
SD
Standard deviation
SPSS
Statistics Package for Social Scientist
xi
CHAPTER ONE INTRODUCTION AND BACKGROUND OF
THE STUDY
1.1 Introduction
This chapter includes the background of the study, problem statement of the study, objective of the
study, research questions, scope (Delimitation) of the study, Limitation of the study and organization
of the thesis.
1.2 Background of The Study
Within the present-day Organization operates during a continuously changing environment. This
environment challenges leaders to redirect their organizations from that specialize in returns on
investment, Productivity rate, and satisfying short-term financial goals to focus on returns on
customers, process improvement, and providing long-term opportunities. The chaos created by
competition, deregulation, technological advances, mergers, acquisitions, the domestic economy,
and therefore the global marketplace is exacerbated by chaos within organizations. Several sorts of
research were conducted by different scholars to spot and explain the connection between leadership
style and organizational culture within the business context ranging from the start of the last century.
These prominent studies have identified the influence of leadership style on the culture of
organizations(Deal A, 1982; Bass B. , 1988; Cameron K. a., 2011; Schein E. , 2004). Chemical
Manufacturing Industries are organizations that operate in complex, multi-cultural, dynamic, and
challenging contexts. The challenging environment of Chemical Industries management requires an
efficient leadership style which will operate in diverse cultures.
As is already mentioned above that the aim of this study is to spot the leadership styles adopted by
the company managers and their influence on the Organization Culture within the Ethiopian
Chemical Manufacturing industries context. As the economy has grown, the chemical industry is
increasing its importance in Ethiopia as a core industry to provide inputs for other domestic
industries like textile, leather, food and agriculture, and accordingly strengthen inter-industrial
linkages. However, even though Ethiopia has had some notable progress until now including the
design of the current Chemical Technology Roadmap, the chemical sector in Ethiopia is in still an
infant stage suffering from lack of finance, shortage of skilled labor force and out of date technology.
1
There are a total of 153 chemical and chemical-related product manufacturers according to CSA’s
raw data for the year 2014. These industries account for 5.7 per cent of total manufacturing industries
in Ethiopia, most of which are concentrated around Addis Ababa (81 establishments) and Oromia
(60 establishments).
When leadership style and organizational culture are discussed, then two strong terminologies to be
addressed are Leadership style and Organization Culture. In today’s millennium, most of the
successful organizations possessed great leaders and managers where they will monitor and supervise
employees’ behavior and performance. A superb leader will lead employees to become more
proactive and dynamic in executing their daily tasks and develop their customer service during a very
profound way. The values, beliefs, attitudes, and behavior practiced and employed by employee on
their daily activities is believed to be influenced by the leadership style adopted by their leaders. If
the leaders portray poor qualities of leadership styles it is going to affect the culture negatively
The weak and unstable leadership style and inconsistent company culture characterize the business
organizations in Africa generally and within the Ethiopian manufacturing industries contribute to the
low development and poor performance of the sector. Most of the multinational investors were
forced to recruit expatriates within the managerial position in Africa also as Ethiopia. This study
focuses on assessing the type of Leadership style adopted by the company managers and its influence
on the company Culture within the Ethiopian manufacturing sector specifically within the chemical
industries. (Andrew Carnes, 2015)highlighted that one among the foremost important success factors
for any organization is the ability to spot and choose efficient leaders. Identifying and understanding
the leadership styles which will have positive consequences of improving the organization's culture
now and within the future is extremely important.
From this study, the concerned industries can get the recommendations and best leadership styles
and level of influence on the organization culture improvement their leadership style. This is;
therefore, the aim of this study to assess the sort of leadership style adopted by the selected industries
and the degree of influence in the organization culture in the Ethiopian manufacturing sector.
1.3 Problem Statement
Explaining the problem statement will make the subject easier to be understood and it makes the
reader understand how Leadership style and Organization Culture relates within the Ethiopian
2
context. during this thesis, the main target is going to be on the type of leadership styles adopted by
the Managers 0f the chosen industries and the way it influences the culture of the organizations. So,
here it’s important to know what the Ethiopian context is and the way Managers in Ethiopian
organizations are adapting to the changing business environment. In Ethiopia, the management
practices are different from that of Europe and the United States but with time, tons of improvement
have been seen. The literacy rate of Ethiopia is increasing per annum and thus, education is
providing new ways for companies to grow, learn, and earn. This is often because fresh graduates
are now given chances to experience real-world organizations and convey improvement with a far
better educational level. The leadership style of management may be a pre-requisite to putting
together an honest Company culture that contributes to the effective accomplishment of
organizational objectives. The leadership styles influence the extent of shared vision, beliefs and
values within the organization.
The problem with most of the chemical industries in Ethiopia is that the leaders aren’t democratic
in their relationship with their subordinates. In fact, leaders in most industries are usually
authoritarian in style who make the administration of the organization hang on them and dictate the
tune. Another problem affecting leadership style within the manufacturing industries in Ethiopia is
that the competence of the leaders so appointed supported relationship instead of Merit. What
becomes of such an organization has competent leaders who lack the skills or capacities to use the
acceptable leadership style to steer the members to influence the organizational culture positively.
The task of codifying and maintaining the purpose, values, and vision of an organization highly
hooked into the leadership. Leaders must set the instance by living the weather of culture, values,
behavior, measures, and actions. Basically, sustainable employee and customer loyalty emanate from
a clearly codified and properly communicated organizational culture. Like anything worthwhile,
organizational culture are something during which you invest. Leadership may be a process by which
an individual influence other (his/her followers) to accomplish an objective and directs the
organization during a way that creates it more cohesive and coherent. This process are often
implemented by leaders applying their leadership attributes, like beliefs, values, ethics, character,
knowledge, and skills (Sternberg, 1985).
(Schein E. H., 2004)Schein argues that leadership has been studied in far greater detail than
transitional culture, resulting in a frustrating diffusion of concepts and concepts of what leadership is
about. Organizational cultures transcend slogans and empty promises. Some organizations prefer to
3
part ways with those that don’t manage consistent with the values and behavior that other employees
embrace. Others accomplish an equivalent objective more positively. General, we are saying an
organization features a good organizational culture when its elements are validated and practiced by
the workers in the least levels.
(Kreitner, 2008)define organizational culture as a group of shared, taken without any
consideration implicit assumptions that a gaggle holds and determines how it perceives, cares it, and
reacts to its various environments. In every organization, there are systems or patterns of values that
are constantly evolving within the employee’s day-to-day activities in handling issues and concerns
inside and out of doors the organization greatly affect by how far these values are shared by the
workers. Every single person comes from a special background and lifestyle but in organizational
culture, all of them perceives the organizational culture within the same way that indicates the shared
aspects of organizational culture. Nevertheless, recent events within the business world suggest that
understanding organizational culture and its impact on human behavior in organizations could also
be of critical importance.(Cummings, 2009)argue that a well-conceived and well managed
organizational culture can mean the difference between success and failure in today ‘s demanding
environment. Organizational culture may be a significant determinant of organizational behavior and
performance. A high level of Organizational culture requires strong leadership tactics,
especially during a developing country. The leadership styles play a crucial role during this context
because dimensions of organizational culture differ from one another and need strong analysis to
attach the entire concept.Choosing the proper leaders to play a crucial part to makesure the
achievement of organizational objectives. But some questions appeared in leaders’ minds. What sort
of leadership style is suitable to create an honest organizational culture? What is the important
influence that the leadership style has in shaping an honest organizational culture? the above
question is often addressed in two ways. Firstly, is to spot the sort of leadership style adopted by the
chosen industry Managers and therefore the Second is to research the influence of those leadership
styles on the culture of the chosen industries. The findings during this paper are hoped to contribute
towards improving organization culture by identifying the prominent leadership style practiced by
the industries.
Basically the type of leadership style adopted by the chemical industries in Ethiopia and its influence
on the organizational culture of those industries are not studied properly and it’s on these premises
that the study is designed to answer the following questions.
4
1. Which type of leadership style is adopted by the managers of the chemical manufacturing
Industries in Ethiopia?
2. Which type of Organizational Culture is practice by those Industries?
3. Is there significant relationship with the type of Leadership style and organizational culture?
This initiates the researcher for the present study.
1.4 Objectives of the Study
1.4.1. General objective
The Overall objective of the study is to spot the style or sorts of leadership adopted by the managers
and examine its influence on the organizational Culture in the Chemical Manufacturing industries
in Ethiopia.
1.4.2. Specific objectives
The subsequent research objectives will function as suggestion for this study:
I.
To Examine the effect of transactional leadership style on organizational culture of selected
chemical industries in Ethiopia.
II.
To investigate the effect of transformational leadership style on organizational culture of
selected chemical industries in Ethiopia
III.
To Investigate the effect of laissez faire leadership style on organizational culture of selected
chemical industries in Ethiopia.
1.5 Research questions
The research question here will be:
I.
How does transactional leadership style affect organizational culture of selected chemical
industries in Ethiopia?
II.
To what extent does transformational leadership style affect organizational culture of
selected chemical industries in Ethiopia
III.
How does laissez faire leadership style influence organizational culture of selected chemical
industries in Ethiopia.
The content of the entire study was formulated supported this research question to be presented
within the following chapters. The research questions are going to be justified by reviewing the
5
literature and summarizing related theories. Later, these theories are going to be implemented within
the study supported the scenario presented above.
1.6 Significance of the Study
This study would contribute to the wealth of data by that specialize in the manufacturing industries
specifically chemical industries within Ethiopia. The subsequent bodies will enjoy from the results
of this study:
Increase the body of data on Leadership and particularly as regards the manufacturing
industries within the Ethiopian case. The knowledge about Leadership style and its influence
on Organizational Culture is scanty and lots of sources don’t offer current information
therefore this research will play an important role in providing current information. And
contribute to the idea within the specified field of study
Policymakers and stakeholders within the human resource management function such as
government and employer organizations like the Federation of Ethiopian Employers can use
the findings of this research to formulate policies and procedures of management
development programs and recruitment criteria that help to attain organizational goals and
objectives.
The findings of the research will provide crucial information to human resource managers
and line managers of the chosen chemical industries concerning the simplest ways of
correlating the Leadership style with the precise Company Culture.
1.7 Scope (Delimitation)of the Study
This Research is restricted to the assessment of leadership styles adopted by the Managers of the
chosen firms and investigate the influence of those Leadership styles on the organizational culture
of the manufacturing firms chosen for this specific research. The study focuses on the three types of
leadership style namely, laisse Faire, transactional and transformational leadership due to the fact
that the manufacturing industries in Ethiopia is basically characterized by low performance and
underutilization of their production Capacity. Usually the products produced in Ethiopia has a
critical problem of quality and are not competing with imported goods of equivalent quality. The
industries have a high production cost due to the inefficiency of the firms.
6
This indicates that the leaders of the manufacturing industries are practicing the older and inefficient
leadership style and they are characterized by hierarchical and autocratic behaviour, due to this the
researcher and the limitation of time and resource the researchers prefers to focus on the three types
of leadership styles.
On the opposite hand, albeit there are many manufacturing industries in Ethiopia in various
manufacturing sectors, the chemical manufacturing industries are selected due to the variant of
ownership that composes all the three types, owned by Ethiopian only, foreign direct investment and
joint venture between feigner and Ethiopian. As well as the proximity for the researcher to optimize
the period of study and research cost. Therefore, among the many chemical industries in the country
only five of them located in Addis Ababa and Oromia regional state are selected for this study.
Finally, this research is planned to be completed within four months from September 2020 up to
the top of January 2021.
1.8. Limitations of the study
Although many manufacturing industries are operating within the various localities of the Country
in several industrial sectors, only five chemical industries operating in and around Addis Ababa are
selected for the case study into account. Hence, as a case study, the findings of the influence of
Leadership style on the organizational Culture study might won’t be entirely generalized to others,
and far more research is required to make a more solid picture of the influence and correlation of
leadership style and organization culture within the manufacturing industry. Besides this, the
shortage of previous studies conducted on the leadership style and its influence on the organization
culture specifically within the manufacturing industry pauses a challenge to the study.
1.9 Organization of the Study
The Thesis consists of five chapters. Chapter one is the introduction and background of the study,
chapter two deals with the review of related literature, chapter three discusses the research design and
methodology, chapter four comprises data presentation and analysis, while chapter five, which is the
closing chapter is devoted to summary of findings, conclusions and recommendations.
7
CHAPTER 2. LITERATURE REVIEW
2.1. Introduction
This chapter reviews the literature on the types of leadership styles, organizational culture, and
therefore the impact of leadership style on organizational culture. The main objective of this section
is to present the relevant theoretical approaches and linkages regarding leadership styles, the theories
of Leadership and leadership styles, organizational culture, and therefore the influence of leadership
style on organizational culture are going to be reviewed from different books, journals, and other
forms of literature within the theoretical part while the researches made on the kinds of leadership
style and its impact on organizational culture are going to be reviewed, their findings, conclusion and
therefore the gap for future research are going to be summarized within the second part. This chapter
ends with the summary and conclusion.
2.2Theoretical literature review
2.2.1 Transactional Leadership Theory
Within the late 1970s and early 1980s, leadership theories started began to diverge from the precise
perspectives of the leader-follower, leadership context toward practices that concentrated further on
the exchanges between the followers and leaders. When scholars recognize the scope of leadership
goes beyond the person or things to role differentiation and social interaction, to deal with the
influence between leader and subordinate. However, within the evolutionary development stage, the
reciprocal influence of the subordinate on the leader, and therefore the development of their relative
roles over time has been acknowledged. These ideas initiated different researcher to develop the
transactional leadership theory,
Vertical Dyad Linkage Theory (Dansereau, 1975); (Duchon, 1986), the Reciprocal Influence
Approach (Greene, 1975), and Leader-Member Exchange Theory (Dienesh, 1986); (Graen G. N.,
1982). In these theories, the connections between the leaders and subordinates is suffering from the
leadership activities. The Social Exchange Theory(Hollander, 1979); (Jacobs, 1970) and therefore
the Role Making Model (Graen G. a.-M., 1975). Explained the exitance of component of exchange,
but the exchange refers specifically to the relative roles of the leader and therefore the subordinate.
Leadership then becomes an equitable exchange relationship with no domination on the part of the
8
leader or subordinate(Bass B. M., 1981). (Charry, 2012)Explained that Transactional theories
specialize in the role of supervision, organization and group performance, and therefore the
exchanges that happen between leaders and followers. These theories base leadership on a system
of rewards and punishments. (Lamb, 2013)describes the connection as a leader’s job is to make
structures that make it abundantly clear what’s expected of followers and therefore the consequences
(rewards and punishments) related to meeting or not meeting expectations. When employees are
successful, they’re rewarded and once they fail, they are reprimanded or punished(Charry, 2012).
The managerial or transactional theory is usually likened to the concept and practice of management
and continues to be a particularly common component of the many leadership models and
organizational structures(Lamb, 2013). (House R. J., 1993)explained the transactional leadership
like that during which leader-follower associations were grounded upon a series of agreements
between followers and leaders. The transactional theory was “based on reciprocity not only the
leaders influence their followers, but the followers also influence them”. Some studies revealed that
transactional leadership shows a discrepancy regarding the extent of leaders‟ actions and therefore
the nature of the relations with the followers.
(Avolio B. a., 2004)observed transactional leadership “as a kind of contingent-reward leadership that
had active and positive exchange between leaders and followers whereby followers were rewarded
or recognized for accomplishing agreed-upon objectives”. From the leader, these rewards might
implicate gratitude for merit increases, bonuses, and work achievement. Permanently work, positive
support might be exchanged, wage for promotions, increased performance, and cooperation for
collegiality. The leaders could instead specialize in errors, avoid responses, and delay decisions. This
attitude is stated because the “management-by-exception” and will be categorized as passive or active
transactions. The difference between these two sorts of transactions is based on the timing of the
leaders‟ involvement. Within the active form, the leader continuously monitors performance and
attempts to intervene proactively(Bass B. M., 1997).The influence of transactional leadership on
organizational culture which is one among the research questions during this research are going to
be investigated supported this theory.
2.2.2Transformational Leadership Theory
The continues go after better efficiency and improved performance of organizations-initiated
researchers to develop new ideas within the field of leadership. Thanks to the recent introduction,
the transformational leadership style era has not endured the trials of in-depth scrutiny and empirical
9
testing unlike the previous eras of leadership theory which have suffered from discouragement and
disillusionment. Since it blends many aspects of the previous era it’s very promising. Perhaps
Researchers have finally received a definitive concept of leadership. This Theory represents the
newest and most promising introduce the evolutionary development of leadership theory. Its
dramatic
improvement
lies within
the incontrovertible
fact
that it's supported intrinsic
as against extrinsic motivation. Also, leaders must be proactive instead of reactive in their thinking;
more radical than conservative; more innovative and creative; and more hospitable new ideas(Bass
B. , 1985). Here, as against reluctant obedience or indifferent compliance leadership exercises
influences to supply enthusiastic commitment by subordinates(Yukl, 1989).
(Roberts, 1985)describes leadership as a process of collective action. (Adams, 1984) describes
leadership becomes a state of consciousness, instead of a personality trait or set of skills.(Conger,
1987); (House R. J., 1977)describes that leader traits, behavior, influence, and situational factors
combine to extend subordinate receptivity to ideological.(Field, 1989)Recently theorized the SelfFulfilling Prophecy phenomenon deals with the transformation of individual self-concepts and
improves on previous theories by considering the transformation as occurring equally from the
leader to the subordinate and the other way around.
Transformational theories specialize in the connections formed between followers and leaders. In
these theories, leadership is that the process by which an individual engages with others and may
“create a connection” that leads in increased motivation and morality in both followers and leaders.
(Lamb, 2013)describes the Transformational theories are often compared to charismatic leadership
theories during which leaders with certain qualities, like confidence, extroversion, and clearly stated
values, are best ready to motivate followers.(Charry, 2012)Explains, these leaders are focused on the
performance of group members, but also on everyone to satisfy his or her potential. High ethical
and moral standards are expected from this sort of leadership style. Theories are the idea for any
research to be initiated, therefore the researcher will use the concepts during this theory to research
the influence of transformational leadership on organizational culture.
2.2.3. Style and Behaviour Leadership Theory
Given the restrictions of the trait approach, within the 1950s there was a shift focused towards
identifying the kinds of leader behaviors that good leaders exhibit Thus, unlike the trait approach,
the behavioral approach focuses on the leaders’ behaviors and actions (Deanne N, 1997). It took a
totally new direction by emphasizing what leaders do as against their traits or source of power.
10
Leadership was thus defined as a subset of human behavior(Hunt, 1977). Behavioral Theory of
Leadership may be a leadership theory that considers the observable actions and reactions of leaders
and followers in each situation. How leaders behave and assume that leaders are often made, instead
of born is that the focus of behavioral theory, and its core principle is successful leadership is
predicated on definable, learnable behavior. They specialize in the study of specific behaviors of a
pacesetter. For behavioral theorists, a leader's behavior is that the best predictor of their leadership
influences and as a result, is that the best determinant of their leadership success. Researchers have
extended the study by changing the stress on developing behavior traits, rather than studying
personality traits. The Ohio State and Michigan studies identified two important leader behavior
traits: initiating structure (leader emphasis on the accomplishment of tasks) and consideration (leader
concern for individual and group cohesion) (Griffin, 1987)
The Behavioral theories were further advanced by adapting them for managerial application.
Probably the foremost well-known is that the Managerial Grid Model which uses a 9 x 9
grid considerately behavior marked along one axis and initiating structure behavior alongside the
opposite. It suggests that the foremost effective leader are going to be rated 9 on both behaviors
(Blake, 1978). (McGregor, 1966)introduced Theories X and Y. Theory X states that folks are passive
and thus must be directed and extrinsically motivated to serve organizational needs, whereas Theory
Y states that folks are already intrinsically motivated and thus need only proper working
conditions(Ashour, 1983)focused on the leader because the manager of reinforcements, with the
acceptable leader
behavior
the
reinforcement
of the
specified subordinate
behavior. the
varied theories during this subject were thoroughly researched but the empirical evidence in support
of them was mixed(Kerr, 1974).the design theory acknowledges the importance of certain necessary
leadership skills that function an enabler for a pacesetter who performs an act while drawing its
parallel with the previous capacity of the leader, before that specific act while suggesting that
every individual features a distinct sort of leadership with which he/she feels most contented. Like
one that doesn't fit all heads, similarly one style can't be effective altogether situations. Different
researchers proposed that three sorts of leaders, they were; autocratic, democratic, and laissez-faire.
Without involving subordinates, the autocratic leader makes decisions, the laissez-faire leader lets
subordinates make the choice and hence takes no real leadership role aside from assuming the
position and therefore the democratic leader accesses his subordinates then take his decision. Thus,
11
this theory is going to be used as a point of reference to research the influence of the Laissez-faire
leadership style on the organizational culture
2.3 Concept of Leadership Styles
Leadership style refers to a leader's characteristic behavior when directing, motivating, guiding, and
managing groups of individuals. Great leaders can inspire and motivate others to perform, create,
and
innovate. once
we consider several the people
that we
thought
was an
excellent leader it's clearly seen that there are vast differences in how each of them leads. Leadership
style also can be described because the specific way during which a manager chose to influence
others. From this, we will understand that styles vary counting on the precise situation and
culture the corporate is working in. Leadership style is viewed as a mixture of various characteristics,
traits, and behaviors that are employed by leaders for interacting with their subordinates. (MitongaMonga, J. & Coetzee, M, 2012). Leadership style also can be considered because the pattern related
to managerial behavior, which is meant to integrate the organizational or personal interest and effects
for achieving particular objectives (Mitonga-Monga, J. & Coetzee, M, 2012). Harris also postulated
that leadership style is often defined because the quite relationship that's employed by a private to
form people work together for a standard goal or objective. ( Harris, A. et al, 2007).
Bernard Burns discusses how Kurt Lewin conducted a study in 1939 and located out that the
foremost common leadership styles fell into three categories: authoritarian, participative or
democratic, and delegative Kurt Lewin as cited by (Burnes, 2004. ). consistent with Burns, Lewin
maintained that effective leaders tend to use all three while emphasizing one style; on the
opposite hand, ineffective leaders believe one style exclusively, ultimately denying themselves and
their followers the chance to take advantage of the advantages within the other styles. While further
research has identified more distinct sorts of leadership. Leadership styles should be selected and
adapted to suit organizations, situations, groups, and individuals. it's thus useful to possess a
radical understanding of the various styles intrinsically knowledge increases the tools available to
steer effectively. In fact, leadership styles have evolved through the decades to embrace novel
concepts like servant, transformational and transactional leadership styles(Lynch, 2018)
2.3.1 Democratic Leadership style
Democratic leaders usually encourage creativity and highly engaged team members in projects and
decisions. There are many benefits of democratic leadership. because the involvement of team
12
members increases their productivity and job satisfaction are going to be high. This style also helps
develop employees’ skills. Team members feel a neighborhood of something larger and
meaningful then are motivated to by quite just a financial reward. Faltering in situations where speed
or efficiency is important is predicted because the danger of democratic leadership. During a
crisis, as an example, a team can waste valuable time gathering input. Another potential danger is
team members without the knowledge or expertise to supply high-quality input.
2.3.2 Authoritarian Leadership style
Authoritarian leadership is an extreme sort of transactional leadership, where leaders have complete
power over staff. Staff and team members have little opportunity to form suggestions, albeit these
are within the best interest of the team or organization. leaders follow rules rigorously and make sure
that their staff also follow procedures precisely. The advantage of autocratic leadership is
that it's incredibly efficient. Decisions are made quickly, and therefore the work to implement those
decisions can begin immediately. In terms of disadvantages, most staff resent being addressed during
this way. Autocratic leadership is usually best utilized in crises situation, when decisions must be
made quickly and without dissent
2.3.3 Laissez-faire Leadership Style
Laissez-fair or non-transactional leadership represents the absence of a purposeful interaction
between the leader and therefore the follower. The leader prevents making directions, abdicates
responsibility, and doesn't implement his/ her authority(Gholamzadeh, 2012); (Avolio B. a., 2004);
(Antonakis, 2003)consistent with(Block, 2003). This leadership is considered the foremost passive
and ineffective sort of leadership. Laissez-faire leadership could also be the simplest or the worst of
leadership styles(Goodnight, 2011). Laissez-faire, this French phrase for “let it's,” when applied to
leadership describes leaders who allow people to figure on their own. Laissez-faire leaders abdicate
responsibilities and avoid making decisions, they'll give teams complete freedom to try to to their
work and set their own deadlines. Laissez-faire leaders usually allow their subordinates the facility to
form decisions about their work(Chaudhry, 2012). This leadership style is often effective if the
leader monitors performance and provides feedback to team members regularly. the most advantage
of laissez-faire leadership is that allowing team members such a lot autonomy can cause high job
satisfaction and increased productivity. It are often damaging if team members don't manage their
time well or don't have the knowledge, skills, or motivation to try to their work effectively. this sort of
leadership also can occur when managers don't have enough control over their staff(Ololube, 2013).
13
2.3.4 Transactional Leadership style
Transactional leadership is an exchange process supported the fulfillment of contractual obligations
and it is typically applied by setting objectives, mentoring, and controlling outcomes (Avolio B. a.,
2004). The key aspects of that include: -Contingent reward, which is that the leadership behavior
focused on clarifying role and task requirements and providing followers with material or
psychological rewards contingent fulfillment of contractual obligations. And Management by
exception (active), which refers to the active vigilance of a pacesetter whose goal, is to make sure that
standards are met. Management by exception (passive), which refers to leaders that only intervene
after non-compliance, has occurred or when mistakes have already happened(Gholamzadeh, 2012);
(Avolio B. a., 2004); (Antonakis, 2003).
2.3.5 Transformational Leadership style
(Avolio B. &., 1990)contend that transformational leadership behavior is that the ability to impact
others toward the achievement of extraordinary objectives by changing the follower’s beliefs, values,
and requirements. The key aspects of that include the subsequent four elements: 1-Idealized
influence (attributed) is mentioned the socialized charisma of the leader, where the leader is
perceived as being confident and powerful. Idealized influence (behavior) is that the leader’s
charismatic actions that are centered on values, beliefs, and sense of mission. 2-Inspirational
motivation is that the way leaders energize their followers by viewing the longer term with optimism,
stressing ambitious goals, sharing an idealized vision, and communicating to followers that vision is
achievable. 3- Intellectual simulation is that the leader’s actions that appeal to followers' sense of logic
and analysis by challenging followers to think creatively and find solutions to difficult problems. 4Individualized consideration is that the leader’s behavior that contributes to follower’s satisfaction by
advising, supporting, and listening to the individual needs of followers, and thus allowing them to
develop and self-actualize(Gholamzadeh, 2012); (Avolio B. a., 2004); (Antonakis, 2003).
2.4 Organizational culture
Organizational culture may be a dominant topic among managers, consultants, and academicians.
As a way of distinguishes the members of 1 group from others, organizational culture gives identities
to organizations, groups, and individuals. The concept of organizational culture doesn’t
have one definition. Instead, there are several. as an example, “the process of thinking helps in
establishing one member from another on the idea of cognitive thinking” (Geert Hofstede, 2010);
14
“the success guidance based upon different values and norm that creates culture effective” (Schein
E. H., 2004); Kotter defines organizational culture as “the set of beliefs, behavior, norms and values
helps in making culture most effective” (Kotter J. &., 1992).
(Peters, 1982)defined culture as an element in determining the standard of organizations. consistent
with them, organizational success and excellence rest upon strong and positive cultures. consistent
with (Daft, 2015)a crucial trend in managerial thinking in recent times has been a push for leaders to
undertake to make strong organizational cultures. consistent with(Schein E. , 2010), “The pattern of
basic assumptions, invented or developed by a given group because it learns to deal with its problems
of external adaptation and internal integration and thus to be taught to new members because
the correct thanks to perceive, think and feel in reference to problems”(Denison, 1990)defined it as
“underlying beliefs, values, and assumptions held by members of the organization, and therefore the
practices and behaviors that exemplify and reinforce them”.(Cameron K. S., 2011) alluded to culture
because the organization's identity while (Thomas, 2014)refers thereto as shared values, underlying
assumptions, and behavioral expectations that govern decision-making. From this definition, we
learn that there's not only one organizational culture. it's widely known within the academic literature
that different organizations have varied cultures. The Organizational Cultural Assessment
Instrument (OCAI) tool was developed by(Cameron K. S., 2011) and (Büschgens, 2013), describes
four types of cultures: Hierarchy culture, clan culture, Adhocracy/entrepreneurial culture, and market
culture.
 Clan Culture: Is characterized by a friendly place to figure that seems like an relative. Leaders
are thought of as mentors and maybe whilst parent figures”(Cameron K. S., 2011). (Büschgens,
2013)have explained that, tradition, loyalty, personal commitment, extensive socialization,
teamwork, self-management, and social influences are attributes of clan culture. The members
understand that their contributions to the organization may exceed any contractual agreements.
The individual’s long-term commitment to the organization is exchanged for the organization’s
long-term commitment to the individual. Individuals believe that the organization will treat them
fairly in terms of salary increases, promotions, and other sort of recognition. Consequently, they
hold themselves accountable to the organization for his or her actions(Belias, 2014)
 Adhocracy Culture: “Is characterized by a dynamic, entrepreneurial, and artistic workplace.
People stick their necks out and take risks. Effective leadership is visionary, innovative, and riskoriented” (Cameron K. S., 2011). High levels of risk taking, dynamism, and creativity
15
characterize an entrepreneurial culture (Büschgens, 2013). There’s a commitment to
experimentation, innovation, and being on the vanguard. This culture doesn’t just quickly react
to changes within the environment, it creates change. Effectiveness means providing new and
unique products and rapid climb. Individual initiative, flexibility, and freedom foster growth and
are encouraged and well rewarded
 Hierarchy Culture: “Is characterized by a formalized and structured place to figure. Procedures
govern what people do. Effective leaders are good coordinators and organizers”(Cameron K. S.,
2011). An organization that values formality, rules, standard operating procedures, and
hierarchical co-ordination features a bureaucratic culture. Future concerns of bureaucracy are
predictability, efficiency, and stability. Its members highly value standardized goods and
customer service(Büschgens, 2013). Behavioral norms support formality over informality. (Belias,
2014)ascertain that managers view their roles as being good coordinators, organizers, and
enforcers of certain rules and standards. Tasks, responsibilities, and authority for all employees
are clearly defined. The organization’s many rules and processes are spelled call at thick manuals
and employees believe that their duty is to travel by the book and follow legalistic processes
 Market Culture: “Is a results-oriented workplace. Leaders are hard-driving producers and
competitors. They’re tough and demanding” (Cameron K. S., 2011). The achievements of
measurable and demanding goals, especially people who are financial and market-based,
characterize a market culture. Hard driving competitiveness and a profit orientation prevail
throughout the organization. During a market culture, the connection between individual and
organization is contractual(Büschgens, 2013). The individual is liable for some levels of rewards
reciprocally. A market culture doesn’t exert much informal, social pressure on an organization’s
members. They are doing not share a standard set of expectations regarding management style
or philosophy. The absence of a long-term commitment by both parties leads to a weak
socializing process(Valmohammadi, 2015).
These four culture types all represent differing types of management philosophies or styles. The
cultures of those organizations are governed by how these companies are run or the beliefs of the
founders of the organization. Essentially, the cultures in these organizations are driven top-down,
with emphasis on the sort of business or industry that this organization serves(Büschgens, 2013). A
search into the suggestion from (Schein E. , 2010)that culture and leadership are conceptually
intertwined allows an assumption that leadership styles may need an immediate or indirect impact
16
on organizational culture. Such an assumption initiates to form a deeper check out literature theories
of leadership styles and proposes to research the correlation to organizational culture.
2.5 Impact of Leadership style on organizational Culture
Many researchers recommend that organizational culture might be influenced by the leadership style
implemented by the leaders. They report that leader is that the creator of the organizational culture,
which reflects his/ her unique values and beliefs(B.M, 2008). Leadership style features a considerable
impact on the culture of an organization. If the manager is distant towards his/her subordinates, this
attitude can have a negative impact on the culture(Moran, 2014). The trust within the manager, the
embodiment of the chief during a positive example can influence favorably the efficacy of the group.
(Haynie, 2016)are of the opinion that managers always influence substantially the organizational
culture and their influence being proportional to the hierarchical level. At an equivalent hierarchical
level, the influence differs from one manager to a different because the extent of coaching and
therefore the leading style isn’t an equivalent.
Leaders can transform and alter culture(Lewis, 1995). Consistent with(Schein E. , 1985), “the only
thing of real importance that leaders do is to make and manage culture”. Consistent with(Deal, 1993),
creating, changing, and shaping culture are all roles of effective leaders. (Schein E. , 2010)contends
that whenever the weather of the culture become mismatched to its environment and dysfunctional,
the leader can make changes.(Bennis, 1985), determined the qualities of a successful
leader. consistent with the successful leader may be a transformational one who creates and
communicates a vision to construct a successful organizational culture that promotes creativity, trust,
two-way communication, mutual decision-making, and personnel development.
The leader's attitudes and behaviors affect every level of the organization, since they're placed at the
highest of the hierarchical level and have the facility to affect every member of the chief from top to
bottom,
as a result,
the leader's behavior
will become
more important than the
opposite members. it's common that members of the organization imitate a strong leader then, the
imitation becomes a habit and becomes permanent. When their number increases, the
organizational culture is made. The utmost significant think about the formation of organizational
culture is that the presence of a robust leader.
17
2.6 Empirical literature review
The leader who recognizes that culture is an important concept in relation to the functioning of
organizations has a better chance of influencing and guiding the culture in goal attainment. Quick
(1992), Kotter & Heskett (1992) and Collins & Porras (1994) agreed that culture may be an
intermediary of the effect of leadership on organizational performance. Many authors have
indicated to the strong relationship between organizational culture and leadership in organizations.
Fullan (2014) supports the notion that the survival of an organization depends upon the change and
responsiveness of a culture as influenced by effective leadership. There are a mired of studies
displaying the link between leadership style and organizational culture across various industries,
Among the researchers, (GOVENDER, 2017), (Schimmoeller, 2010), (James C. Sarros, 2002),
(AL-Elaumi, 2014), (Harris, 2000), (Duguma, 2019), (Lütfi Sürücü, August. 2017), and (Kolisang,
November 2011) are found and reviewed in this thesis.
2.6.1 Transactional leadership style as it relates to organizational culture
Transactional contingent reward was more strongly related to affective, rather than cognitive,
identification, transactional contingent reward led employees to perceive the culture as more goal,
than innovation, oriented. transactional leaders work within their organizational cultures following
existing rules, procedures, and norms. transactional leaders are characterized by contingent reward
and management-by- exception styles of leadership. Essentially, transactional leaders develop
exchanges or agreements with their followers, pointing out what the followers will receive if they do
something right as well as wrong (Ciulla2014). They work within the existing culture, framing their
decisions and action. Researches made revealed that transactional leadership seems to influence/
favor a hierarchical organizational culture,
2.6.2 Transformational leadership style as it relates to organizational culture
Transformational leadership had a positive direct and indirect effect, via innovation value orientation
and cognitive identification It was found to lead subordinates to perceive the culture as more
innovative and recommending that successful leadership is partly based on idealized influence or
the ability of leaders to act as strong role models for followers (Bass, 1990). Thyssen, Wald, and
Spieth (2014) postulates that transformational leaders have been characterized by four separate
components or characteristics denoted as the bases of transformational leadership. These four
18
factors are idealized influence, inspirational motivation, intellectual stimulation, and individualized
consideration. Transformational leaders integrate creative insight, persistence and energy, intuition
and sensitivity to the needs of others to "forge the strategy-culture alloy" for their organizations.
Transformational leadership was found to be positively correlated with Cameron’s and Quinn’s
supportive (clan) and innovative (adhocracy) cultures and negatively correlated with Cameron’s and
Quinn’s procedural (hierarchical) and goal-oriented (market) cultures (Den Hartog, Van Muijen, &
Koopman, 1996). The reviewed research works conducted previously also revealed that that
transformational leadership style seems to influence/ favor a clan and/or adhocracy organizational
culture.
2.6.3 Laissez faire leadership style as it relates to organizational culture
leaders who adopt the laissez-faire leadership style exercise little control over the followers and let
the followers have freedom to carry out their assigned tasks without direct supervision. The laissez
faire leader delegates decision-making to the team and agrees to abide by their resolutions (Wu
&Shui 2009). They have an attitude of trust and reliance on their employees. They don’t
micromanage or get too involved; they don’t give too much instruction or guidance. Instead laissezfaire leaders let their employees use their creativity, resources, and experience to help them meet
their goals. This kind of leadership is very hands-off—managers trust their employees and are
confident in their abilities. They give guidance and take responsibility where needed, but this
leadership style means that subordinates and team members have the real lead. laissez-faire
leadership negatively influences / favor all four culture types but at times can lean towards a market
organizational culture.
19
Table 2.6. The relationship between leadership and organizational culture
Researcher
Dimensions of
leadership style
Transformational
leadership style
GOVENDER, Transactional
2017
Leadership style
Laissez-faire
leadership
transformational
Lütfi Sürücü, leadership
August. 2017
Transactional
leadership style
Vankovich
(2007).
Organizational
culture components
Industry /Area
Results/Findings
Mining/ South Africa
The purpose of this study was to assess the impact of
leadership styles on organizational team culture in a South
African based mining organization, The findings of the study
revealed that the leadership styles of the team leader’s does
have an influence on organizational/team culture within the
department
Manufacturing
Industry/Turkey
The research was conducted in a factory operating in the
manufacturing sector. The research reveals that the
charismatic leader influences all organizational cultures. The
research examined the effects of transactional leadership,
paternalistic leadership, transformational leadership, and
charismatic leadership styles, which are considered as the
popular leadership styles today, on the organizational
culture.
adhocracy culture
adhocracy culture
Market
organizational
adhocracy culture
Clan
Laissez-faire
leadership
Market.
Transactional
leadership.
Adhocracy
hierarchy
Nursing/
and
America.
Transformational
Clan
leadership.
Giritli, Öney- Transformational
Yazıcı, Topçu- leadership.
Adhocracy
Construction
mining/ Turkey
20
The purpose of this study was to investigate the relationship
between leadership styles and organizational culture within
schools of nursing, the result showed that measures for
transformational leadership had significantly predictive value
for the clan, adhocracy and market cultures. Transactional
leadership was found to have significantly predictive value
for the adhocracy and hierarchy cultures, while laissez-faire
leadership was found to have significantly predictive value
for the market cultures.
and The aim of this study was look at the influence of leadership
on organizational culture. The findings infer that
Oraz and Acar
Transactional
(2013).
leadership.
Atwell (2017)
transformational leadership predicted adhocracy cultures,
transactional leadership predicted hierarchy and clan
cultures.
Clan. Hierarchy.
Transactional
leadership.
Clan. And hierarchy
Transactional
leadership.
not defined
This paper investigated the relationship between
organizational culture and perceptions of leadership style of
principals. The result from the study infers that
Transformational Clan, Adhocracy and
transformational leaders were found in clan, adhocracy, and
leadership
Market Cultures
Education/ Middle East
market cultures. Transactional leaders were found in clan
cultures and hierarchy cultures. A lack of relationship or
Laissez-faire
Market, Hierarchy,
negative relationship across all four culture styles was found
leadership.
clan and adhocracy
with laissez-faire leaders.
Hamza
Mohammad
Saleh
ALTransformational
not defined
Elaumi (2017)
leadership
aims to examine the relationship between leadership styles
Communication/Jordan and organizational culture in the Orange and Umniah
telecommunication companies in Jordan.to assess the
relationship between transformational and transactional
styles of leadership and four types of organizational culture:
power, role, achievement, and support at Jordan Orange and
Umniah Companies
James
C.
Sarros*, Judy
Individualized
Gray* and Iain
consideration
L.
Densten
(2002)
The study revealed strong and positive relationships among
leadership and organizational culture. For all types of
leadership in this study, mean scores were generally higher
for transformational leadership than those recorded, and
Institute
of
Performance orientation was the prominent organizational
Management/ Australia
culture for this sample of Australian executives, followed by
social responsibility, supportiveness, and emphasis on
rewards. Competitiveness and innovation were the lowest
ranked cultures
performance
orientation
21
2.7 Conceptual Framework of The Study
Based on the reviewed literatures, there's substantial inquiry that supports the argument that
leadership styles adopted by managers is that the critical factor to work out the sort of
organizational culture to be implemented and practiced by the organization which form the
framework for this research. the chosen framework was adapted from the study conducted
by(GOVENDER, 2017), and therefore the researcher upgraded the team culture within
the study to organizational culture. Most of the findings of the reviewed literatures show
consistency that the sort of leadership style features a direct relation with the sort of
organizational culture. It must be emphasized here that the Ethiopian Chemical industries didn’t
stated for leaders to exercise anyone of the styles as they find it fit may be a critical aspect of the
individual industries that cries for attention. it's therefore logical to assume that each one kind
of leadership styles are practiced with nonspecific and coherent style being upheld and referred
to; with the potential risk of affecting the organizational culture.
In other words, it's the idea of this research that the Chemical Industries selected for this research
has not been practicing one specific leadership style within the past, including one that's the
foremost preferred in contemporary business climate. The research gap therefore is that
the absence of any prior study where leaders within the Ethiopian Chemical Industries are left to
randomly exercise anyone of the leadership styles without sticking to at least one specific style as
a matter of leadership philosophy and therefore the focus of this research would be to
ascertain the effect such an environment would wear organizational Culture. The research
would attempt
to explore the
kinds of
designs that won’t
to be
practiced and
the
way organizational culture was suffering from them by taking over the most traits each style
assumes and measuring them against organizational culture types developed. The conceptual
framework for the study is presented below:
22
Independent Variable
Dependent Variable
Transactional leadership style
Transformational leadership style
Organizational Culture
Laisses Faire leadership style
Figure 2.7: Conceptual Framework for the Study Sources: Literature Review
23
CHAPTER THREERESERCH METHODOLOGY
3.1 Introduction
This section explains the research design, population and sampling design within the study also providing
research information on data collection technique and therefore the reasons why one technique was used
as against another method. Detailed explanation of the research procedures and therefore the data
analysis method including potential criticisms is included during this chapter. The major focus of this
chapter is to present the underlying principle of research design and methodology, sampling
techniques, the choice of appropriate research data collection techniques and method of
knowledge analysis in line with the research objective proposed before the study
3.2 Research Design
Research Design Research design, consistent with Kerlinger, is that the plan, structure, and
strategy of investigation conceived to get answers to research questions and to regulate variance.
The function of a search design is to make sure that requisite data following the matter at hand is
collected accurately and economically. Simply stated, it's the framework, a blueprint for the
research study which guides the gathering and analysis of knowledge. This study may be
a quantitative research and therefore the collected data were analyzed using quantitative measure.
Research design is that the conceptual structure with during which research is conducted; it
constitutes the blue print of what the researcher will do from writing questions, hypothesis and
its operational implications to the ultimate analysis of knowledge (Tabachnick L, 2007). There
are three basic research design frameworks: Exploratory, Descriptive and Causal. Exploratory
Research specialize in gaining ideas and insight, breaking broad, vague problems into smaller,
more precise sub problems. Descriptive research emphasis on determining the frequency with
which something occurs or the extent to which two variables correlate and therefore the third
research design: Causal research focuses on determining cause-and-effect relationships. As result,
this study represented by descriptive and causal research because the correlation also because
the impact of leadership style on the type of organizational culture using correlation and
multivariate regression
24
3.3 Population and Sampling Design
3.3.1 Population
The population for the research are going to be all the management and non-management staffs
of the five chemical industries selected for this research as shown within the table 3.3.1 below.
Table 3.3.1: Population size of the five industries
Population
A(Sika Abyssinia
Chemicals
Manufacturing
PLC)
40
B(Awash Melkasa
Aluminum Sulphate
and Sulfuric acid
factory S.C.
58
C ( RepiWilmar Soap
and Detergent
Factory PLC)
66
D (Alkyd
Resin
Factory
PLC)
58
E ( Adami
Tulu Pesticide
Total
formulation
Factory S.C.)
45
267
The Population includes all the staffs of the factories in several functional department who have
a permanent employment agreement.
3.3.2. Sampling Frame
A sampling frame may be a list of population units or elements from which to pick elements to
be sample. And a sample are often defined as a smaller group or subgroup obtained from the
accessible population. The five chemical industries in Addis Ababa and Oromia special zone
constituted the Sample. As there are other chemical industries in several part of the country. The
Factories into account are going to be the sampling units. The sample elements were the
management and non-management employees of the factories. This study sample frame involved
different Sectors at the industries. These included the production, maintenance, marketing and
sales, procurement and logistics, administration and finance departments of the factories into
account. Thus, the target population defines those units which are wont to generalize the findings
of the survey during this study, the sampling frame are going to be constructed among the
workers of the five Industries. Sampling is that the process of choosing several individuals or
objects from a population such the chosen group contains elements representative of the
characteristics found within the entire group fined as a smaller group.
3.3.3. Sampling Technique
The well-liked sort of probability sampling for this research is that the simple random
sampling. consistent with(Denscombe, 2014)simple random sampling affords each member of
the population an equivalent chance of being included within the sample. (Bryman A. a.,
2015)explain that with this sampling method, there's almost no opportunity for human bias
because the
method isn't hooked
into the
employee’s
availability.
Accordingly,
Simple sampling techniques are going to be employed to gather the specified data from
25
departments of the industries into account. The Department counting on size has several
employees. Each department is headed by a department manager who overlooks/supervises the
activities of the department in each industry. Sample of responding staff are going to be drawn
from all the departments of every factory where census sampling technique are going to be used.
3.3.4. Sample Size
Determining sample size may be a vital issue for collecting an accurate result within a quantitative
survey design. one among the important advantages of quantitative methods is their ability to use
smaller groups of individuals to form inferences about larger groups that might expensive to
review. The sample must be carefully selected to be representative of the population. consistent
with (Cohen, 2000), a standard sampling strategy are going to be to use a 95 percent confidence
level to work out a sample size. Thus, for the aim of gathering the quantitative data for this study,
out of a population of 285 staff members, a sample of 167 staff members selected to realize a
confidence level of 95%. From the target population 285 number of employees within
the selected five industries.
n=N/(1+N (e) 2)
n=267/ (1+267(0.05)2)
n=160
Where n = Sample size
N = Population size
e = Level of precision or acceptable sampling error (0.05) Source: (Yamane, 1973)
The sample size for each company is calculated based on the proportion n/N with a total of
160 samples. Accordingly, 160 questionnaires were distributed to the selected samples and 140
respondents have returned the questionnaire with a response rate of 87.5%.
Table 3.3.4. Calculated sample size and returned questionnaire
Population
Sample size by
Returned
questionnaire
A(Sika Abyssinia
Chemicals
Manufacturing
PLC)
40
24
B(Awash Melkasa
Aluminum Sulphate
and Sulfuric acid
factory S.C.
58
35
C ( RepiWilmar Soap
and Detergent
Factory PLC)
66
39
D (Alkyd
Resin
Factory
PLC)
58
35
20
30
35
30
26
E ( Adami
Tulu Pesticide
Total
formulation
Factory S.C.)
45
267
27
160
25
140
3.4 Data Source and Types
The data source utilized in this study are going to be both primary and secondary data source.
Structured questionnaire is going to be distributed to employees of the five chemical
industries into account. The questionnaire is going to be adapted from similar studies conducted
previously and by modifying to suit the aim of this study. On the opposite hand, previous studies,
literatures,
journals
and
publication are
going
to
be used
as
secondary
data
reference. additionally, organizational plans and reports issued by the industries, organizational
documents of the five industries on human resource management and development aspects, and
relevant study reports, website documents on the fundamentals and practices of performance
management system are going to be utilized for capturing the secondary data needed for the
study.
3.5 Data Collection Tool
The researcher has planned to use the questionnaire to urge data for the study. The survey
instrument won’t to assess leadership style are going to be the Multifactor Leadership
Questionnaire Form 5X (MLQ)( (Avolio B. a., 2004).The MLQ consisting of 45 items is that
the latest version of the first MLQ survey questionnaire developed by Bass in 1985. The
structured questionnaire are going to be designed supported 5-point Likert Scale rating from 0
(strongly disagree) to 4 (strongly agree). The questionnaire is going to be designed to
collect quantitative data concerning the sort of leadership adopted within the organization.
On the opposite hand, Organizational Culture Assessment Instrument (OCAI) are going to
be wont to collect data associated with organizational culture. This instrument is employed to
assess six key dimensions of organizational culture; dominant characteristics, organizational
leadership, management of employees, organizational glue, strategic emphases and criteria of
success. The OCAI is predicated on a theoretical model referred to as the Competing Values
Framework. This framework is extremely useful in organizing and interpreting a good sort
of organizational phenomena. within the last few decades, writers have proposed a spread of
dimensions and attributes of organizational culture. The questionnaire is straightforward to
research and provides more uniformity. The Organizational Culture Assessment Instrument
(OCAI) is practical, timely, manageable, and valid method for diagnosing the organizational
culture of an organization. (Cameron K. S., 2006)Cameron and Quinn (2006) developed this
instrument. People are rating the organization within the current state, the now, and what’s
27
preferred (Cameron K. S., 2006).The collected data is analyzed and interpreted to spot the
sort of leadership style adopted by the managers, the currently practiced organizational
culture and
therefore
the impact
of
the
leadership
style
on
the
organizational
culture also because the relationship between leadership style and organizational culture. Data
collected using questionnaire are going to be checked for its consistency and completeness
before analysis.
3.6. Methods of Data Analysis
The data obtained through questionnaires are going to be a n a l y z e d using the Statistical
Software program (SPSSv26.0) Software to conduct data analyses that helps to answer the
essential research questions. Preliminary analyses are going to be conducted to point if there
have been any violations of the assumptions of multicollinearity, normality, tolerance and
extreme outlier. In the questionnaire that measure an equivalent concept the reliability is
often estimated by internal consistency by grouping questioners. it's computing correlation values
among the questions by using Cronbach’s Alpha. The reliability of this case study was estimated
using internal consistency by applying Cranach’s Alpha method. The mean and standard
deviation values of the questionnaire are used to determine the type of leadership style adopted
and the organizational culture practiced by the selected chemical industries for this research.
Therefore, the mathematical model is the statistical analyses of mean and standard deviation of
the collected data.
3.7. Defining the Variables in Brief
Independent Variable
 The Type of leadership style adopted by the Managers within the organizations into account.
Dependent Variables
 The Type of organizational culture practiced by the organizations.
3.8. Piloting of the instrument
The
questionnaire
and
data
collection
tools are
going
to
be tested
on the
chosen respondents purposefully. The results of the pilot are going to be analyzed
and won’t to improve the info collection tool by correcting several the ambiguous
statements hence making the tool simpler and reliable.
28
3.9. The validity of the Instrument
Validity refers to the power of the instrument to live what it’s designed to live.(Kumar,
2011)defines validity because the degree to which the researcher has measured what
he began to
live. it's the
accuracy
and
meaningfulness
of
inferences
that
are supported research results. The validity, therefore, is whether an instrument is on
track in measuring what's expected to live. to see the validity of the instrument the
researcher will work with the adviser because the expert and agreed whether the instrument
is valid or not therefore the same will check. The tool also will subject to see review to make
sure its validity.
3.10. Reliability and Validity Estimation of the Questionnaire
In any research results, the difficulty of validity and reliability are important confidence
measures that are wont to assess whether the research provides an honest measure. The
validity of the instrument is going to be checking using valid Cronbach's alpha which is one
among the foremost accepted measures of reliability. It measures the interior consistency
of the things during a scale. It indicates that the extent to which the things during
a questionnaire are associated with one another (Mguni, 2005). The traditional range of
Cronbach's coefficient alpha value ranges between 0-1 and therefore the higher values reflect a
better degree of internal consistency. Different authors accept different values of this test to
realize internal reliability, but, satisfactory value is required to be quite 0.6 for the size to be
reliable(Sekaran, 2003).
In the case of the MLQ the researcher uses reliability and validity to assess whether the MLQ
really does measure leadership. “Validity tests how well an instrument measures the
actual concept it's alleged to measure. Reliability tests how consistently an instrument measures
that concept” (edited from Sekaran, 1998, p. 171). (Bass B. M., 1997)confirmed the reliability of
the MLQ by employing a large population (N = 1394). The MLQ scales exhibited high internal
consistency and factor loadings. the entire items and for every leadership factor scale reliability
ranged from 0.74 to 0.94. Furthermore, consistent with(Bass B. M., 1997), reliability of the MLQ
has been proven repeatedly through retesting, internal consistency methods and alternative
methods.
Reliability (Cronbach's alpha coefficient) for the subscales of transformational leadership ranged
from 0.72 to 0.93; transactional leadership ranged from 0.58 to 0.78; and laissez-faire leadership
was 0.49 (Deanne N. Den Hartog, 1997). The MLQ was tested during a South African
29
environment and Cronbach's alpha reliability coefficient of the three main scales within the
MLQ, namely transformational, transactional or laissez-faire, scored 0.944, 0.736 and 0.803
respectively (Ackermann et at.,2000). The authors applied the MLQ to research the leadership
style within an electricity utility organization in South Africa. During this study, the honest average
Cronbach's alpha value of 0.902 was obtained.
There have been several different reliability coefficients. One among the foremost used is
Cronbach’s Alpha (Coakes & Steed 2003). Cronbach’s Alpha may be a widely used
measurement of the internal consistency of a multi-items scale during which the typical of all
possible split-half coefficients is taken (Hair et al. 2000). Normally, values of Cronbach’s Alpha
above 0.70 are considered to represent acceptable reliability, above0.80 good reliabilities, and
above 0.90 excellent reliabilities. The lower acceptable reliability may be reduced to .60 in
exploratory research (Manning & Munro). The researcher conducted a pre-test assessment on
randomly selected 20 staffs, from the five industries. The Cronbach’s alpha reliability coefficients
of this pre-test were calculated for the aim of creating sure that the outcomes within the pre- test
fall in range of proven reliability coefficients. The samples participated within the pretest weren't included within the sample size (n=140) of the data collection process.
Table 3.10-1 Expected mean value of the subscales
Number
1
2
3
4
5
6
7
8
9
Component
Idealized Influence (Attributed)
Idealized Influence (Behavior)
Inspirational Motivation
Intellectual Stimulation
Individual Consideration
Contingent reward
Management by Exception (Active)
Management by Exception (Passive)
Laissez-Faire
Source: (Avolio B. a., 2004), mind Garden
30
Mean
2.66
3.21
3.08
3.12
2.87
3.08
2.43
1.23
0.88
Table 3.10-2: Test result of the MLQ
Transformational
Transactional
Laissez-Faire Laissez
Outcome of Leadership
Effectiveness
Extra Effort
Satisfaction
Number of test item Cronbach’s Alpha Coefficient
22
0.90
17
0.87
4
0.75
12
0.88
5
0.80
4
0.92
3
0.84
As Table 3 shows, the Cronbach’s alpha values of all the variables is quite 0.70. This shows that
the questions utilized in the survey instruments possess high accuracy, stability, and
consistency. the general Cronbach’s alpha coefficient for leadership style was 0.85 while the
Cronbach’s alpha coefficients of the three leadership styles ranged from 0.75 to 0.90. the
general Cronbach’s alpha coefficient for outcome of leadership is 0.88 while the Cronbach’s
alpha coefficients of the three outcome of leadership factors ranged from 0.80 to0.92. if these
measures have also been utilized in other well-validated research, a choice are going to be made
to retain all the factors of every construct. Regarding the OCAI, Reliability of the OCAI is
computed by taking several measurements on an equivalent subject. A reliability coefficient of
0.600 or higher is considered as “acceptable”. the general Cronbach’s Alpha was calculated at
0.63 for Now and 0.68 for preferred, therefore the questioners is considered acceptable
3.11 Ethical Consideration
The researcher will respect the study privacy and therefore the confidentiality of the respondent
and protect everything which will harm the dignity of the individuals and institutions
participated during this research and affect the participatory honestly. to hold out this study, the
researcher will use both individual and institutional data thus, the collected data are going to
be kept confidential and therefore the information gathered are going to be used for a
tutorial purpose only.
31
CHAPTER 4 DATA PRESENTATION AND ANALYSIS
4.1. Introduction.
This chapter commences with an in-depth analysis of knowledge that gives an insight into the
findings of the study, amid numerical and graphical representations of the info and interpretation
of results. The presentation of detailed analysis and findings, which were extracted from MLQ
and OCAI survey questionnaires administered to employees at the chosen five chemical
industries, is discussed during this chapter. Analysis of the info entailed the utilization of
descriptive statistics within the sort of distribution tables, percentages and cross tabulations. The
research questions for this study were evaluated using inferential statistics tests. was wont
to determine the reliability of the questionnaire has been tested using Cronbach’s trial. the
info collected from the responses was analyzed with SPSS version 26.0.
4.1.1. The Sample.
In total, 160 questionnaires were distributed, and 140 employees were returned which gave a
83.83% response rate.
4.1.2 The Research Instrument.
The research instrument consisted of 76 items, with a level of measurement at a nominal or an
ordinal level. The questionnaire was divided into 3 sections which measured various themes as
illustrated below:
1. Biographical data.
2. Multifactor Leadership Questionnaire.
3. Organizational Culture Assessment Instrument
4.2 Presentation of results:
The data collected from the five selected chemical industries is presented in table as well as
graphical models
4.3. Biographical Data.
The biographical characteristics of the respondents is summarized during this section.
32
Table 4.3: Biographical characteristics of the respondents.
Age rang
Male
Female
Count
2
0
% within Age
100.00
0.00
18-24
% within Gender
2.20
0.00
% of Total
1.43
0.00
Count
18
22
% within Age
45.00
55.00
25-32
% within Gender
19.78
44.90
% of Total
12.86
15.71
Count
25
13
% within Age
65.79
34.21
33-40
% within Gender
27.47
26.53
% of Total
17.86
9.29
Count
22
10
% within Age
68.75
31.25
41-47
% within Gender
24.18
31.25
% of Total
15.71
7.14
Count
14
3
% within Age
82.35
17.65
48-55
% within Gender
15.38
6.12
% of Total
8.80
2.14
Count
10
1
% within Age
90.91
9.09
56-60
% within Gender
10.99
2.04
% of Total
7.14
0.71
Count
91
49
% within Age
65.00
35.00
Total
% within Gender 100.00% 100.00%
% of Total
65%
35.00%
Total
2
100.00
1.43
1.43
40
100.00
28.57
28.57
38
100
27.14
27.14
32
100.00
22.86
22.86
17
100.00
12.14
12.14
11
100.00
7.86
7.86
140
100.00
100.00%
100.00%
The results of table 4.3. shows that Overall, the ratio of males to females is approximately 2:1
(65%: 35%). Within the age category of 25 to 32 years the number of female respondents
is above the male, 55% were female. And 45% male. 28.57% of the respondents are within
the 25-34 age bracket while 1.43 % (2) respondents are within the 18-24 age bracket. Each of the
Biographical parameters included within the questionnaire are explained below
33
4.3.1. Sample by Companies
Figure 4.3.1: Sample distribution by Company
S A M P L E D I S T R I B U T I O N BY C O M PA N Y
150
Frequency
140
Percent
100
100
50
30
20 14,3
35
21,4
25
30
25
21,4
17,9
0
Company A
Company B
Company C
Company D
Company E
Total
The results of Figure 4.3.1 above reflect that the participants during this sample represented 5
Companies selected from the industry se tor in Ethiopia in Addis Ababa and Special zone of
Oromia. These 5 Companies within the sample has been named the subsequent, Company A
which consists of 20 employees (14.3%) ,Company B which consists of 30 employees (21.4%),
Company C which consists of 35 employees (25%), Company D which consists of 30 employees
(21.4%) and Company E which consists of 25 employees (17.9%).
4.3.2 Gender of sample.
Figure 4.3.2: Gender of the Sample
Gender of the sample
140
150
100
100
91
65
50
49
Frequency
35
Percent
0
male
female
Total
The findings of the study in Figure 4.3.2suggest that the majority of participants were males with
91 (65%) and with females comprising 49 (35%).The sample although disproportionate between
males and females is in line with the present chemical Industries gender disparities within
Ethiopia.
34
4.3.3 Age of the sample.
Figure 4.3.3: Age of the sample
160
Age range of Sample
140
140
120
100
100
Frequency
80
Percent
60
40
28,57
40
20
0
38
27,14
32
22,86
1712,14
117,86
48-55
56-60
2 1,43
18-24
25-32
33-40
41-47
Total
The findings of the study in Figure 4.3.3 show that the lowest number 2(1.43 %) of the
participants was but 24 years old, while the most important number 40 (28.57%) were from 25 –
32 years. Participants between the ages of 33 – 40 were 38 (27.14%) of respondents while
participants between age of 41-47 were 32 (22.86%), while participants between the age of 48–55
were 17 (12.14%), then respondents between the age of 56-60 were 11 (7.86%). The participants
at the age of 25-32-40 were the keenest to participate within the study being the bulk within
the sample, this infers to a better level of acknowledgement of leadership - team culture
signification within this group.
4.3.4. Education level of respondent
Figure 4.3.4: Education level of sample
Education level fo Sample
160
140
140
120
100
100
86
80
61,4
60
Frequency
40
20
10
Percent
20
19
14
13,6
14,3
0
high
TVET
First
Second
school graduate degree Degree
complete
BA/BSC MA/MSC
1
0,7
PHD
35
Total
The findings of the study in Figure 4.3.4 show that rock bottom number 1(0.7 %) of the
participant features a PHD degree, while the most important number of participants 86 (61.4%)
have BA/BSC degree. Participants with master’s degree (MA/MSC) were 20 (14.3%), While
participants with TVET Diploma were 19 (13.6%), th3n Participants with high school complete
were 14 (10%). The participants with BA/BSC degree were the foremost keen to
participate within the study being the bulk within the sample, this infers to a better level of
recognition by companies for educational qualification during the recruitment process and
employee also are committed to upgrade their education while working.
4.3.5. ServiceYear of the Sample
Figure 4.3.5: Service year of the Sample
Service year 0f The Sample
160
140
140
120
100
100
80
60
40
Frequency
43
30,7
36
25,7
Percent
30
21,4
20
20
14,3
10
7,1
0
0-8
9-15
16-24
25-33
34-40
1
0,7
>40
Total
The findings of the study in Figure 4.3.5 show that rock bottom number 1(0.7 %) of the
participant was greater than 40 years of labor experience, while the most important number 43
(30.7%) were from 0 –8 years of labor experience. Participants between 9-15 years of
labor experience were 36 (25.7%) of respondents while participants between 16-24 years of
labor experience were 30 (21.4%), while participants with 25-33 years of labor experience were
20 (14.3%), then respondents with work experience between 34-40 years were 10 (7.1%). The
participants with work experience between 0-8 years were the foremost keen to participate within
the study being the bulk within the sample, this infers to a better level of acknowledgement of
leadership - team culture signification within this group since they need graduated from the
schools recently and understands the importance of this data for research.
36
4.3.6. Job position of respondents
Figure 4.3.6: Job position of the sample
Job position
160
140
140
120
100
100
80
60
49
40
20
0
2 1,4
35
24
22
15,7
Frequency
17,1
Percent
22
15,7 8
13
5,7
9,3
The findings of the study in Figure 4.3.6 show that rock bottom number 2(1.43 %) of the
participants was working during a head position, while the most important number 49 (35%)
were working within the Expert and/or supervisory position. Participants with Department
Manager and Technician/Operator Positions have equal number with 22 (15.7%) of respondents
while participants performing on Division Manager position were 24 (17.1%), participants with
positions aside from the required once were 13 (9.3%), then respondents with a laborer work
position were 8 (5.7%). The participants at the Expert and/or supervisory position has shown a
far better initiation to reply for the questionnaire, this infers to a better level of acknowledgement
of leadership - team culture signification within this group.
37
4.3.7. Department of respondents
Figure 4.3.7:Department of the Sample
Department of Sample
160
140
140
120
100,0
100
80
60
40
20
49
35,0
21
20
14,3
15,0
16
15
10,7
11,4
15
0
Frequency
10,7 4
2,9
Percent
The findings of the study in Figure 4.3.7 show that rock bottom number 4(2.9 %) of the
participants was working in Departments not laid out in the questionnaire, while the most
important number 49 (35%) were working within the Production Department. Participants from
Marketing and sales division were 20 (14.3%) of respondents while participants from the Finance
department were 21 (15%), while participants From Administration department and Support
service department have equal number 15 (10.7%) from each, then respondents from Logistics
and Property administration department were 16 (11.4%). The participants from the
assembly department 49 (35%) were the most important in number to participate within
the study being the bulk within the sample, this infers to a better number of employees during
a manufacturing industry belongs to the assembly department.
Finally, the bibliographical data analyses result shows the sample is composed of all ranges in
terms of gender, age, educational level, service year, job position and department that justifies
the incorporation of opinions from all the members. Specially the educational level, work
experience, job position and departments will have different perspective regarding the leadership
style as well as the organizational culture, therefore the result shows the sample is representative
since it incorporates all the required components.
38
4.4. Cross-tabulation.
Cross-tabulation analysis, also referred to as contingency table analysis, is most frequently wont
to analyses categorical (nominal measurement scale). A cross-tabulation may be a two (or more
dimensional table that records the amount (frequency) of respondents that have the
precise characteristics described within the cells of the table. Cross- tabulation tables provide a
wealth of data about the connection between the variables.
4.4.1 Gender
Table 4.4.1: Gender by Company
Gender
Male
A
Count
% within company
Count
% within company
Count
% from total
Female
Total
B
12.00
60.00
8.00
40.00
20.00
14.29
22.00
73.33
8.00
26.67
30.00
21.43
Company's
C
D
E
Total
18.00
20.00
19.00
91.00
51.43
66.67
76.00
65.00
17.00
10.00
6.00
49.00
48.57
33.33
24.00
35.00
35.00
30.00
25.00
140.00
25.00
21.43
17.86
100.00
Table 4.4.1 represents the cross tabulation of females and Males amongst the businesses.
Company B and E has rock bottom proportion of females with 8 (26.67%) and 6 (24 %)
respectively. While Company C has the most important proportion of Female with 17 (48.57%)
followed by Company A with 8 (40%) and Company D with 10 (33.33%).
4.4.2. Age
Table 4.4.2: Age bracket by Company
Age
18-24
25-32
33-40
41-47
48-55
56-60
Total
A
Count
% within company
Count
% within company
Count
% within company
Count
% within company
Count
% within company
Count
% within company
Count
% within company
Company
C
D
E
0
0
1
1
0
0
3.33
4
2
12
8
6
6.67
34.2
26.67
24
5
11
10
8
16.67
31.43
33.33
32
12
10
4
4
40
28.57
13.33
16
9
2
2
2
30
5.71
6.67
8
2
5
4
6.67
0
16.67
16
30
35
30
25
100
100
100 100
B
0
0
12
60
4
20
2
10
2
10
0
20
100
39
Total
2
1.43
40
28.57
38
27.1
32
22.86
17
12.14
11
7.86
140
100
Table 4.4.2 represents the cross tabulation aged between the 5 Companies. The age bracket of
25 to 32 revels to be the bulk amongst the 5 Companies, with an overall weighting of 40 (28.57%)
followed by age bracket between 33-40 with 38 (27.1%) and age bracket between 41-47 with 32
(22.86%). This shows that the businesses have relatively proportional employees with all age
bracket within the active working age.
4.4.3. Educational level by company
Table 4.4.3: Education level by Company
Education
high school complete
TVET graduate
First degree BA/BSC
Second Degree
MA/MSC
PHD
Total
A
Count
% within company
Count
% within company
Count
% within company
Count
% within company
Count
% within company
Count
% within company
4
20
2
10
10
50
4
20
0
0
20
100
Company
Total
B
C
D
E
3
5
1
1
14
10 14.29
3.33
4
10
4
3
6
5
20
13.33
8.57
20
20 14.29
18
20
20
17
85
60 57.14 66.67
68 60.71
5
7
3
1
20
16.67
20
10
4 14.29
0
0
0
1
1
0
0
0
4
0.71
30
35
30
25
140
100
100
100 100
100
Table 4.4.3 represents the cross tabulation of Educational Level between the 5 Companies. The
workers with BA/BSC took the lion’s share of the respondents with 85 (60.71%).
40
4.4.4 Service Years among companies
Table 4.4.4: Service year among company
Service year
0-8
9-15
16-24
25-33
34-40
>40
Total
A
Count
% within company
Count
% within company
Count
% within company
Count
% within company
Count
% within company
Count
% within company
Count
% within company
12
60
3
15
1
5
4
20
0
0
0
20
100
Company
B
C
D
E
2
13
9
6.67
37.14
30
3
11
10
10
31.43
33.33
13
9
4
43.33
25.71
13.33
10
2
2
33.33
5.71
6.67
2
0
5
6.67
0
16.67
0
30
100
0
35
100
0
30
100
7
28
9
36
3
12
2
8
4
16
Total
43
30.71
36
25.71
30
21.43
20
14.29
11
7.86
0
25
100
0
140
100
Table 4.4.4represent the cross tabulation of years of service of the 4 teams. The service year
range from 0-8, 9-15 and 16-24 years have most of the respondents with 30.71%, 25.71% and
21.43% respectively.
4.5. Descriptive analyses of Leadership styles.
This section deals with the organization’s leadership style. The multifactor leadership
questionnaires (MLQ) are being sampled from each Company and validated norms served as
benchmark to match the mean scores of respondents. Consisting with(Bass B. , 1985) and
(Avolio B. a., 2004) descriptions, if it is capable enough in performing each MLQ attributes,
he/she will receive the scores around norms.
41
Table 4.5-1: Mean and standard deviation result of leadership dimensions
Dimension
Idealized
Influence
(Attributed)
Idealized
Influence
(Behavior)
Inspirational
Motivation
Individualized
Consideration
Intellectual
Stimulation
Transformational
Leadership style
Contingent
Reward
Management-byException
(Passive)
Management-byException (Active)
Transactional
Leadership Style
Laissez-Faire
Laissez
Company A
Company B
Company C
Company D
Company E
N
Mean SD. N Mean SD. N Mean SD. N Mean SD. N Mean SD.
20
2.53
0.57
30
2.32
0.53
35
1.66
0.25
30
2.65
0.16
25
2.15
0.72
20
2.31
0.47
30
2.73
0.46
35
2.02
0.24
30
2.56
0.52
25
3.11
0.25
20
3.2
0.34
30
2.72
0.71
35
1.64
0.51
30
2.55
0.32
25
2.72
1.11
20
2.94
0.26
30
2.58
0.2
35
1.86
0.29
30
2.94
0.1
25
2.78
0.48
20
2.83
0.25
30
2.77
0.46
35
2.03
0.35
30
2.7
0.25
25
2.82
0.57
20
2.76
0.35
30
2.62
0.18
35
1.84
0.19
30
2.68
0.16
25
2.82
0.57
20
2.96
0.21
30
2.93
0.33
35
2.16
0.16
30
2.69
0.5
25
3.05
0.37
20
1.59
0.78
30
1.28
0.44
35
1.46
0.24
30
1.77
0.43
25
1.59
0.67
20
2.04
0.5
30
2.56
0.62
35
2.27
0.14
30
2.68
0.47
25
2.77
0.81
20
2.2
0.7
30
2.26
0.86
35
1.96
0.44
30
2.68
0.47
25
2.47
0.77
20
2.04
0.5
30
1.14
0.19
35
1.93
0.17
30
1.28
0.56
25
1.26
0.25
According to table 4.5-1 indicates the means, standard deviations for the five transformational
leadership subscale, three transactional leadership sub scales and one laissez-Faire leadership
style for all participant, of the five companies, using the MLQ (Form 5X). The scores for
every of the size was indicative of the respondent perception of the leadership style. the
most objective of this thesis is to spot the sort of leadership style adopted by the
chosen Companies as perceived by respondents.
The descriptive statistical result presented above showed that, a mean score ranging from1.84
for Company C to 2.82 for Company E for transformational leadership, 1.96 for Company C to
2.68 for Company D for transactional leadership and 1.14 B to 2.04 for Company A for laissezfaire leadership style. Each of the transformational leadership subscales means and variance is
calculated for every company with resulted between 1.64 for Company C with for the dimension
of inspirational Motivation as minimum and three.2 for Company A for an equivalent dimension
inspirational Motivation respectively for the mean with a typical deviation of 0.51 and 0.34.
42
Whereas a complete of for every of transactional leadership subscales mean and variance value
ranges from 1.28 to 3.07 for Company B and Company E and 0.14 to 1.11 consequently. The
mean and variance for laissez-faire ranges from 1.6 for Company D as minimum and a couple
of 0.04 for company A as maximum and 0.17 for Company C as minimum and 0.56 for company
D maximum.
From leadership subscales, the very best score value of ordinary deviation is Inspirational
Motivation for company E with 1.11 variance. subsequent highest variance is Transactional
Leadership style within the case of Company B with 0.86 variance. the quality deviation of the
variables is comparatively high, indicating a good spread of responses round the total mean. the
foremost effective leadership, (Bass B. M., 1997) suggested, mean many greater or adequate
to 3.0 for Individualized Consideration, Intellectual Stimulation, Idealized Influence
(Behaviour), Idealized Influence (Attributed) and Inspirational Motivation. The means of the
transformational factors should be around 3,0, the values for the transactional components of
Contingent Reward and Management-by-Exception active should reach 2,5, whereas the means
for Management-by-Exception passive and Laissez-faire leadership shouldn't be above 1,0(Bass
B. , 1988). The results of this study show that, total mean score of transformational leadership is
that the range of mean many transformational leadership subscales are:
Table 4.5-2 mean score of Transformational leadership subscales
Company Company Company
Dimension
A
B
C
Idealized Influence (Attributed)
2.53
2.32
1.66
Idealized Influence (Behavior)
2.31
2.73
2.02
Inspirational Motivation
3.2
2.72
1.64
Individualized Consideration
2.94
2.58
1.86
Intellectual Stimulation
2.83
2.77
2.03
Company
D
2.65
2.56
2.55
2.94
2.7
Company
E
2.15
3.11
2.72
2.78
2.82
Table 4.5-2 indicates that the typical mean score of transformational leadership sub scales
are within the range of two.31-3.2 for company A, 2.32-2.77 for company b, 1.64 to 2.02 for
company C, 2.55 to 2.94 for company D and a couple of.15 to 3.11 for company E. The mean
score
for
transformational
leadership
subscale
for
all
the
five
companies into
account were but Bass and Avolio‟s suggestion. this suggests that leaders of all the five
companies aren't practicing the expected ideal levels of transformational leadership behavior. the
typical mean and SD of the Transformational leadership are 2.76, 2.62, 1.84, 2.68and 2.82 for
Company A,B,C,D and E respectively that means the very best score was 2.82 for company E
followed by 2.76, 2.68, 2.62 and 1.84 for Company A, B, D and C respectively(Bass B. M., 1997)
also suggested a mean score of two, for contingent reward, 1.0 to 2.0 for management-by43
exception (active) and 1.0 to 0.0 for management-by-exception (passive) and laissez-faire.
However, the mean scores obtained for this study were:
Table 4.5.3:- Mean Values of transactional and Laizer-Faire Laissez leadership style
Dimension
Contingent Reward
Management-by-Exception (Passive)
Company A
Company B
Company C
Company D
Company E
2.96
2.93
2.16
2.69
3.05
1.59
1.28
1.46
1.77
1.59
Management-by-Exception (Active)
2.04
2.56
2.27
2.68
2.77
Laissez-Faire Laissez
2.04
1.14
1.93
1.28
1.26
The overall transactional leadership styles mean scores for this study were above the range of
(Bass B. M., 1997) suggestions for all the five Companies. This means that leaders of the five
industries demonstrated greater level of transactional and Laissez- faire behavior of leadership
style. Transactional leadership is characterized by achieving specific targets supported predefined agreements and/or contract, working with individuals and/or groups with identified
Capabilities, and specifying the compensation and rewards which will be expected upon
successful completion of the tasks. Focuses on actively setting standards, involves expecting for
mistakes to occur before acting and closely monitoring for the occurrence of mistakeswithin the
corrective, passive and active form respectively. Either its passive or active form, it focuses on
identifying mistakes.
4.6. Outcomes of Leadership styles of Company leaders.
The outcomes of leadership style of the companies were evaluated by the three dimensions of
effective leaders included within the MLQ questionnaire namely Effectiveness, extra effort and
satisfaction mean, and standard deviation values calculated from the collected data
44
4.6.1 Effectiveness
Figure 4.6.1- Mean and SD. Values for effectiveness
3,32
3,48
3,17
3,03
3,1
3,13
Q40
2,8
2,91
2,83
2,74
Q37
Q43
2,2
2,47
2,37
2,7
Q45
COMPANY A
COMPANY B
COMPANY C
0,95
0,71
1,39
COMPANY D
0,91
0,75
0,96
0,99
0,97
0,95
1,13
1,07
1,25
0,8
1,06
1,14
1,4
1,26
1,07
0,79
1,26
1,88
2,7
3
3,1
3,33
3,2
MEANAND SD.VALUES FOR
EFFECTIVNESS
COMPANY E
Figure 4.6.1. indicates that statements Q37, Q40, Q43 and B45 have a less frequent occurrence
altogether the sampled companies with (sd=0.71 up to 1.4) imply that the leaders that purely lead
the company and don’t empower the teams to self-management.
4.6.2 Extra effort
Figure 4.6.2: Mean and SD. Values for Extra effort
EXTRA EFFORT
COMPANY A
COMPANY B
Q44
COMPANY C
COMPANY D
45
COMPANY E
1,11
1,06
1,08
2,68
2,96
3,2
0,87
1,06
0,86
1,15
1,2
1,14
2,26
2,43
2,63
2,93
2,8
3,13
Q42
1,17
1,17
0,99
0,95
0,91
1,26
2,7
2,5
2,75
2,73
2,93
3,1
Q39
Figure 4.6.2 indicates that the results for all the businesses lay within the same range with small
variation for all the three questions. Last statement, Q44 have a worth that correspond to a less
frequent occurrence (sd=0.86 for company D to 1.14 within the case of Company C). This
statement implies that leaders within the sample don't understand the general mission of the
department and organization. the primary and second statement B39 and B42 (sd=0.0.87 to 1.26
and sd=0.95 t0 1.2 respectively) have frequent occurrence that corresponds to a mean of central
scoring. This infers that the leaders clear on the mission ofthe Company and are aligning the
workers with the wants of the organization.
4.6.3Satisfaction.
Figure 4.6.3.: Mean and Sd. Values for satisfaction
MEA N A ND SD. VA LUES FO R SAT I SFACT I O N
COMPANY B
3,23
2,80
COMPANY C
COMPANY D
0,71
0,65
0,96
0,63
0,49
0,66
0,88
1,10
0,89
1,26
2,83
2,71
2,70
2,85
COMPANY A
3,44
3,48
Q41
3,33
3,33
Q38
COMPANY E
Figure 4.6.3 indicates that statement, Q41 features a value that corresponds to high frequent
occurrence (sd=0.49 to 0.89). this suggests that the leaders within the sample companies own the
goals of the organization and believes in achieving them. With statement Q38 corresponds to a
coffee frequent occurrence (sd=0.96, 1.1 and 1.26 for Company D, C and A respectively) which
infers that the leaders don't value themselves within the leadership role, while high frequent
occurrence (sd+ 0.66 for Company C and 0.71 for Company E) infers that the leaders value
themselves within the leadership role.
4.7. Summary of the leadership style of the Five Companies.
The use of the typical means derived from the multifactor leadership questioner explained above
are summarized to spot the leadership styles adopted by the managers of the chosen companies
46
i.e. Company A, Company B, Company C, Company D and Company E the tables illustrated
below are a sample of each leaders mean value on questions derived from the three leadership
types, transactional, transformational and laissez-fair.
Figure 4.7: Summarized mean values for leadership styles
2,98
Transformational Leadership style
1,26
1,28
Transactional Leadership Style
0,88
2,25
2,82
2,47
2,68
2,68
1,14
1,84
1,96
1,93
2,62
2,26
2,2
2,04
2,76
SUMMA RY O F T HE CO MPA NI ES LEA DE RSI P
ST YLE
Laissez-Faire Laissez
Figure 4.7references the mean data from the MLQ completed by the Five company employees
regarding the leadership styles of the organization. The info indicates that each one of the
company leaders seem to possess all the traits of the leadership styles, but some are more
dominant than others which tends to require the wheel of the leadership style. The leader of
Company A (mean=2.04) seems to possess a dominant Laissez-Faire Laissez leadership style.
While the typical of both Transformational and Laissez-Faire laissez leadership result for all the
other four companies is above the suggestion by Bass and Avolio, we will say that The leader of
Company B, C and E (mean=21.14, 1.93 and 1.26) respectively are dominantly Laissez -Faire
Laissez while the leader of Company D with (mean=2.68) I dominantly Transactional.
It is described in the theoretical review that, among the three types of leadership style compared
in this research the transformational leadership style is preferred in terms of organizational
efficiency and effectiveness and it provides a better opportunity and tools to a better
Organizational objective achievement and to build a trust worthy organizational culture,
Therefore the researcher recommends the organizational Managers to strive for the
implementation and introduction of Transformational leadership style in their organization.
47
4.8 Organizational Culture.
This section looks at data analysis collected with the organizational culture assessment instrument
(OCAI) questionnaire from the chosen samples of the five companies. The 4 types of
organizational cultures measured. clan, adhocracy, market and hierarchy are going to be
measured by the 6 sub-groups namely, dominant characteristics, organizational leadership,
management of employees, organizational glue, strategic emphases and criteria of success
incorporated within the OCAI questionnaire.
Table 1: OCAI analyses result for the five companies
A
B_Now C_Now D_Now A_Pref B_Pref
C_Pref D_Pref Now Pref
Now
Adhocracy Market Hierarchy Clan Adhocracy Market Hierarchy Total Total
Clan
N
20 20
20
20
20
20
20
20
20 20
Company Mean
0.56 0.51
0.66 0.63
0.34 0.38
0.25 0.28
2.36 1.26
A
St. deviation 0.16 0.1
0.11 0.06
0.06 0.1
0.04 0.09
0.43 0.29
N
30 30
30
30
30
30
30
30
30 30
Company Mean
0.44 0.37
0.46 0.49
0.49 0.48
0.42 0.39
1.77 1.78
B
St. deviation 0.09 0.11
0.1
0.16
0.08 0.14
0.1
0.16
0.45 0.48
N
35 35
35
35
35
35
35
35
35 35
company Mean
0.39 0.28
0.4
0.43
0.48 0.53
0.32 0.39
1.5 1.72
C
St. deviation 0.12 0.09
0.09 0.11
0.1
0.1
0.08 0.07
0.41 0.35
N
30 30
30
30
30
30
30
30
30 30
Company Mean
0.41 0.34
0.53 0.56
0.41 0.43
0.27 0.26
1.83 1.37
D
St. deviation 0.1 0.1
0.13 0.16
0.08 0.11
0.05 0.07
0.49 0.31
N
25 25
25
25
25
25
25
25
25 25
Company Mean
0.4 0.23
0.37 0.5
0.64 0.53
0.53 0.41
1.5 2.11
E
St. deviation 0.1 0.1
0.12 0.19
0.12 0.17
0.14 0.16
0.52 0.58
Table 4.8 indicates computations from the OCAI to determine the probable organizational
cultures of the Five companies selected from the Ethiopian manufacturing industry operating
in Addis Ababa and special zone of Oromia region. The OCAI during this case was wont
to determine the sort of organizational culture currently practiced by each company and tries to
work out the well-liked culture for every company. it's noted that each one companies possess
traits of all organizational cultures determined by the OCAI, however organizational culture
with the very best mean for every company is taken because the dominant culture type. Data
from the very best mean values infers the subsequent, Company A current culture infers
alignment to plug organizational culture with a mean of 0.66 and prefers an adhocracy
organizational culture with a mean of 0.38. Company B current culture infers alignment to
hierarchy organizational culture with a mean of 0.49 and prefers a clan organizational culture
48
with mean of 0.49. Company C current culture infers alignment to hierarchy organizational
culture with mean of 0.43 and prefers an adhocracy organizational culture with mean of 0.53.
Company D current culture infers alignment to plug organizational culture with a mean equal
0.53 and prefers adhocracy organizational culture with mean of 0.43. Company E current culture
infers alignment to hierarchy organizational culture.
4.9Conclusion.
The response rate of the study was 83.83%. Reliability for the findings on demographic variables
were presented using tables and charts. a crucial factor to notice is that the significant number of
similarities in responses from participants. The findings also revealed that there's a big positive
relationship between objectives. Detailed interpretation of results and conclusion are going to
be discussed within the next chapter. additionally, the achievement of the objectives of the
study are going to be presented. Furthermore, areas for further study and limitations of the
study are going to be highlighted.
49
CHAPTER 5 RECOMMENDATIONSAND ONCLUSIONS
5.1 Introduction.
This chapter is covering the findings associated with the literature review, research questions,
interpretation of the data analysis result, implications of the study also as recommendations
for further study, alongside a quick conclusion are going to be disused.
5.2. Summary.
The overall objective of the study was to research the type of leadership style adopted by the
managers of the corporate and its impact on the organizational culture within the case of the
Ethiopian industry. consistent with the most objective and sub-objectives of the study, the
research design and framework for the literature review was developed. Chapter two
presented an in-depth overview of the Leadership theories, the main leadership styles and
organizational culture theories. The literature also discussed the influence of leadership styles
on organizational culture.
The research study was analyzed and presented in chapter 4. The study was mixed qualitative
questions presented during a quantitatively and 167 questionnaires were administered to
respondents so as to extract enough information for analysis and interpretation of results 140
where received. The research was implemented employing a methodical structure of
designing, collection of data, analysis of data, interpretation and presentation of results and,
finally, report writing.
Literature review.
Several studies were conducted over the years in various industries and situations to undertake
and predict which type of leadership style influences which type of organizational culture a
sample of these studies were done by, Govender (2017), James. C. Sarros ( 2002) Duguma
(2019), (Duguma, 2019), (Lütfi Sürücü, August. 2017), and
(Kolisang, November
2011),Vankovich (2007) and Flemming (2017). The common themes were derived from
reviews of research conducted in other studies and areas. The info from these studies inferred
the subsequent common themes:

Transformational leadership seems to favor a clan or/and adhocracy organizational
culture

Transactional leadership seems to favor a hierarchical organizational culture, and
50

laissez-faire leadership negatively influences all four culture types patronize times can
lean towards a market organizational culture.
Leadership style of the organization leaders.
The MLQ was wont to determine the leadership style adopted by the organization managers
of the chosen five companies operating within the Ethiopian industry sector. For this research
to be done sample were taken from all the five companies and employees performing
on different organizational level had participated within the survey. The results of the survey
was analyzed in chapter four and therefore the analyses of the info reveled that, the leader of
Company A (mean=2.04) seems to possess a dominant Laissez-Faire Laissez leadership style,
the leader of Company B, C and E (mean=1.14, 1.93 and 1.26) respectively are dominantly
Laissez -Faire Laissez while the leader of Company D with (mean=2.68) is dominantly
Transactional.
Organizational culture of the Companies.
The OCAI was wont to determine the present and preferred culture of every individual
team. the info analyses result reveled that the company’s management may need had quite 1
trait of organizational culture ,this decided by analyses of the mean scores wiped out chapter
4 this reveled that the corporate had high mean values on differing types of organizational
culture but had 1 dominant culture type. Company A currently have Market culture with
a mean of 0.66 and prefers an adhocracy culture with a mean of 0.38. Company B current
culture is hierarchy culture with a mean of 0.49 and prefers a clan culture with mean of 0.49.
Company C current is hierarchy culture with mean of 0.43 and prefers an adhocracy culture
with mean of 0.53. Company D current is market culture with a mean equal 0.53 and prefers
adhocracy culture with mean of 0.43 and Company E current is hierarchy culture with
a mean equal 0.50 and prefers clan culture with mean of 0.64.
Impact of leadership style on organization culture.
The factors that influence the formation of the organizational culture are numerous.(Moran,
2014)affirm the subsequent influences of culture creation to be, the working party, the
design of leadership of the managers, the organizational characteristics, the founders and
owners and therefore the environment. Creating positive, effective environment depends
on the sort of leadership style and therefore the support and encouragement of the leaders.
Managers must be flexible enough to implement and manage to make positive working
51
environment that feet’s the organizational goal and objective. Although there are other factors
of team performance, literature infers effective leadership is important for organizational
success Riemer (2014). during this research we've identified the leadership styles and
therefore the organizational culture of every company selected for this study.
Table 5.2-1: Leadership style organization culture relation
Companies
Leadership style
organizational culture (current)
Company A
Laissez-Faire Laissez Market culture
Company B
Laissez-Faire Laissez
Hierarchy culture
Company C
Laissez-Faire Laissez
Hierarchy culture
Company D
Company E
Transactional
Market culture
Laissez-Faire Laissez Hierarchy culture
Table 5.2-1 represents a summary of knowledge analyzed from chapter 4. A view of the
literature infers common themes of leadership styles that influence organizational
culture. The info in table 5.2-1 presents the common variant of those themes. The literature
on Leadership style from chapter 2 also lends to the commonality of leadership styles
playing a crucial part of organizational culture. Upon examination of the info analyses and
literature reviewed, the researcher suggests that leadership styles influence organizational
culture. Leadership styles are seen to be the promoter of organizational culture.
Relationship between Leadership style and organizational culture.
The OCAI was used as the tool to identify the preferred dominant organizational culture of
the Five companies. To predict the leadership style that will be required to fulfil the preferred
organizational culture requires the review of literature that used to determine the common
themes of leadership style influence on organizational team culture.
Table 2 influence and preference
Recommended from literature
review
Leadership
Organization Culture
style
Transforma adhocracy and/or
tional
clan culture
Transaction hierarchy and/or
al
adhocracy culture
laissez-faire market culture
Co
mpa Leadership style
ny
Organizational culture
Current
Preferred
adhocracy culture
A
Laissez-Faire Laissez
Market culture
B
Laissez-Faire Laissez
Hierarchy culture Clan culture
C
D
E
Laissez-Faire Laissez
Transactional
Laissez-Faire Laissez
Hierarchy culture adhocracy culture
Market culture
adhocracy culture
Hierarchy culture Clan culture
52
Table 5.2-2 indicates the influencing leadership style to the dominant organizational culture
gathered from literature. The table also indicates the companies preferred organizational
cultures. The leadership style and organizational culture of the companies doesn’t much with
the result of the literature review except Company A. Further analysis of the literature and
table5.2-1 and 5.2-2 suggests the subsequent from the researcher for all the company leaders
need to improve their leadership style currently in situ and invest more energy grooming the
factors as stated in chapter 2 that influence an adhocracy team organizational culture from a
leadership perspective and dissolve the attributes that influence a clan team organizational
culture, thus promoting a more refined and pure adhocracy team organizational culture.
5.3. Conclusion.
This research has highlighted the influence of leadership styles on organizational
culture within the Ethiopian industry. Leadership is viewed together of the elemental drivers
of organizational success for both now and therefore the future. Organizational success is
achieved through the willingness and active participation of employees promoting an
integrated work culture aligned with the organization’s beliefs and methods. The
leadership sort of the Managers is significant in developing and maintaining the organization
culture. The recommendations discussed during this chapter suggest some changes that
would possibly be considered by company managers and director to extend the impact of
their leadership style in their organizational culture. This study will assist leaders to
raised understand leadership qualities that act as drivers to reinforce organization culture and
engagement of employees, ultimately resulting in organizational success
5,4. Recommendations.
The finding of this research showed that the dominant leadership style of the Companies
chosen for this research was found to be laissez-Faire Laissez leadership style followed by
Transactional leadership style and related organizational cultures which doesn’t much with
the literature review recommendations. This finding implies that the company leaders needs
some characteristics of transformational leadership style. Because as Bass, 1990 wrote
transformational leaders have better relationships with their supervisors and make more of a
contribution to the organization than do those that are only transactional and/or laissez-Faire
Laissez. Organizations whose leaders are laissez-Faire Laissez and transactional are less
effective than those whose leaders are transformational particularly if much of the
53
transactional leadership is passive management-by exception (intervening only standards
aren’t being met).
Transactional leaders monitor followers carefully to enforce rules, reward success, and punish
failure while laissez-Faire Laissez leader leave employees to make decision by themselves or
avoid any participation within the process. They are doing not, however, act as catalysts for
growth and alter within an organization. Instead, they ‘re focused on maintaining this as they’re
and enforcing current rules and expectations. This results in the leaders as mechanical instead
of to be motivational. The researcher recommends that the company leaders should exercise
transformational leadership style, adopting transformational leadership style means having the
components of the transformational leadership that’s Idealized Influence Attributed,
Idealized Influence, inspirational Motivation, Intellectual stimulation and Individualized
Consideration. Similarly, they need to take the initiative to align the organizational culture of
their organization to much with the recommendation of the literature review organizational
culture that much the transformational leadership style namely adhocracy and/or clan culture
by applying different methods as follows.

encourage to stimulate interests among colleagues and followers to look at their work
from new perspectives rather to try to do their work by the standard methods or ways.

Create awareness of the mission or vision of the organization by applying different
tools.

Prepare and implement staff development program.

Motivate colleagues and followers to seem beyond their own interests toward the
benefit of the organization and self.

Focusing on long run goals instead of short-term returns.
Measuring leadership effectiveness outcomes was also investigated and therefore the result
was below the expected mean altogether the companies. This suggests that the leader’s
leadership style has did not lead the organization in an efficient and effective ways.
Transformational leadership style was strongly related to subordinates’ extra effort,
satisfaction with the leader and subordinate-rated leader effectiveness, to urge effectiveness in
leadership style of the leaders should adopted transformational leadership styles. It seems
clear that leader behavior influences the subordinate satisfaction, extra efforts of subordinates,
and leader effectiveness thanks to the character of the study it's recommended that the
research at the company level should be conducted at list biannually to make sure accuracy
54
in data and to trace changes made in leadership styles and to regulate accordingly to the
specified leadership style of the organizations.
The research should be applied to other companies within the industry sector also as in other
sectors of producing to match results and review the general leadership style in situ within
the manufacturing sector. The study although small as compared to others within the similar
sphere targets the foremost critical sector within the manufacturing industry in Ethiopia which
usually characterized by low efficiency and underperformance within the economy. It gives
insight into the importance of aligning the leadership style with the organizational culture for a
far better organizational performance. this sort of study should be replicated to other
industry’s that has the similar leadership structure.
Research implications of thisstudy.
This study included both theoretical and practical issues with regards to leadership and
organizational culture within the Ethiopian Chemical Industry sector located in Addis Ababa
and Oromia special zone.
Practical implications of this study.
The practical implications of this study will therefore benefit the Ethiopian manufacturing
industry at large and therefore the chemical industries and everyone relevant stakeholders
when formulating new policies about the developmental growth of leadership in in Ethiopia.
Limitations of the study.
The data gathering method was limited to the completion of questionnaires sent to the
participants. Other methods like interviews could also supplied further valuable information
regarding the perceptions of participants. The study was conducted in Addis Ababa and
Oromia regional state in several localities and different nature, two of the companies are a
subsidiary of multi-national companies, two of them are government owned companies and
one is private company owned by a local investor.
Only three Leadership Styles are considered as independent variable among several
leadership style due to the low development of leadership principles in the manufacturing
industries in Ethiopia and the limited number of industries considered in the research are
some of the study limitations. It might therefore be difficult to use the results from this
research during a more general approach in the global organization. A big limitation of the
research is that there was a various view of leadership style within the different organization
55
and employee’s perception in order that the analyses doesn’t indicate a dominant leadership
style and organizational culture. Most of the results were closely related.
Recommendations for further study.
Confirm the validity of the MLQ instrument within the context of the chemical industries, by
doing correlations on a bigger sample. Conduct a study across several companies within the
manufacturing industry in Ethiopia to verify the external validity of the OCAI and MLQ and
make better awareness about the impact of leadership style on the organizational culture and
its final influence on organizational performance on the leaders. Conduct the research on a
departmental
basis
and
calculate the
general company
outcome
since there's an
opportunity of getting differing types of leadership style and team culture thanks to the
character of the work and individuals.
56
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60
Appendix 1: Questionnaire: Biographical
This questionnaire is to describe your Biographic data. Please answer all items on this
answer sheet Please mark your answer with an (X)
GENDER
AGE
Educational level
JOB Position
Company
MALE
18-25
25-32
33-40
41-47
Highschool
TVET
BA/BSC
MA/MSC
Department Division
GM
Expert
Manager
Manager
A
B
C
D
DEPARTMENT Production
YEARS OF
SERVICE
Marketing
0-8
9-15
Finance
16-24
FEMALE
48-55
PHD
Technician
55-60
Others
>60
Labour
Others
E
Logistics and
Support
Administration Property
Others
services
administration
25-33
34-40
>40
Appendix2: (MLQ) Questionnaire: Leadership Style for Managers and supervisors
This questionnaire is to describe your leadership style as you perceive it. Please answer all
items on this answer sheet. If an item is irrelevant, or if you are unsure or do not know the
answer, please leave it lank.
Forty-five descriptive statements are listed on the following pages. Judge how frequently each
statement fits you. The word “others” may mean your peers, clients, direct reports, supervisors
and/or all of the individuals.
Use the following scale to answer the questions. Please mark your answer with an (X)
NOT AT ALL 0
ONCE IN A WHILE 1
SOMETIMES
2
FAIRLY
OFTEN 3
FREQUENTLY
IF NOT
ALWAYS 4
a) For managers and supervisors
0 1 2 3 4
Transformational Leadership Style
10
18
21
25
15
19
29
31
Idealized Influence (Attributed)
I instill pride in others for being associated with me
I go beyond self-interest for the good of the group
I act in ways that build others’ respect for me
I display a sense of power and confidence
Idealized Influence (Behavior)
I spend time teaching and coaching
I treat others as an individual’s rather than just as a member of a group
I consider an individual as having different needs, abilities, and aspirations
from others
I help others to develop their strengths
61
Inspirational Motivation
6 I talk about my most important values and beliefs
14 I specify the importance of having a strong sense of purpose
23 I consider the moral and ethical consequences of decisions
34 I emphasize the importance of having a collective sense of mission
Individualized Consideration
9 I talk optimistically about the future
13 I talk enthusiastically about what needs to be accomplished
26 I articulate a compelling vision of the future
36 I express confidence that goals will be achieved
Intellectual Stimulation
2 I re-examine critical assumptions to question whether they are appropriate
8 I seek differing perspectives when solving problems
30 I get others to look at problems from many different angles
32 I suggest new ways of looking at how to complete assignments
Transactional Leadership Styles
Contingent Reward
1 I provide others with assistance in exchange for their efforts
I discuss in specific terms who is responsible for achieving performance
11
targets
I make clear what one can expect to receive when performance goals are
16
achieved
35 I express satisfaction when others meet expectations
Management-by-Exception (Passive)
3 I fail to interfere until problems become serious
12 I wait for things to go wrong before taking action
17 I show that I am a firm believer in “If it isn’t broke, don’t fix it.
20 I demonstrate that problems must become chronic before I act
Management-by-Exception (Active)
I focus attention on irregularities, mistakes, exceptions, and deviations from
4
standards
I concentrate my full attention on dealing with mistakes, complaints, and
22
failures
24 I Keep track of all mistakes
27 Directs my attention toward failures to meet standards
Laissez-Faire Laissez
5 I avoid getting involved when important issues arise
7 I am absent when I needed
28 I avoid making decisions
33 I delay responding to urgent questions
Leadership effectiveness measurement dimensions
62
37
40
43
45
39
42
44
38
41
Effectiveness
I am effective in meeting others’ job-related needs
I am effective in representing others to higher authority
I am effective in meeting organizational requirements
I lead a group that is effective
Extra Effort
I get others to do more than they expected to do
I heighten others’ desire to succeed
I increase others’ willingness to try harder
Satisfaction
I use methods of leadership that are satisfying
I work with others in a satisfactory way
63
appendix3 (MLQ) Questionnaire for non-managerial staff
This questionnaire is to describe your leadership style as you perceive it. Please answer all
items on this answer sheet. If an item is irrelevant, or if you are unsure or do not know the
answer, please leave it lank.
Forty-five descriptive statements are listed on the following pages. Judge how frequently each
statement fits you. The word “others” may mean your peers, clients, direct reports, supervisors
and/or all of the individuals.
Use the following scale to answer the questions. Please mark your answer with an (X)
NOT
AT
ALL 0
ONCE IN A WHILE 1
SOMETIMES
2
FAIRLY
OFTEN
3
FREQUENTLY
IF NOT
ALWAYS 4
0 1 2 3 4
Transformational Leadership Style
10
18
21
25
15
19
29
31
6
14
23
34
9
13
26
36
Idealized Influence (Attributed)
My Supervisor instill pride in others for being associated with him
My Supervisor go beyond self-interest for the good of the group
My Supervisor act in ways that build others’ respect for him
My Supervisor display a sense of power and confidence
Idealized Influence (Behavior)
My Supervisor spend time teaching and coaching
My Supervisor treat others as an individual’s rather than just as a
member of a group
My Supervisor consider an individual as having different needs,
abilities, and aspirations from others
My Supervisor help others to develop their strengths
Inspirational Motivation
My Supervisor talk about his most important values and beliefs
My Supervisor specify the importance of having a strong sense of
purpose
My Supervisor consider the moral and ethical consequences of
decisions
My Supervisor emphasize the importance of having a collective
sense of mission
Individualized Consideration
My Supervisor talk optimistically about the future
My Supervisor talk enthusiastically about what needs to be
accomplished
My Supervisor articulate a compelling vision of the future
My Supervisor express confidence that goals will be achieved
Intellectual Stimulation
64
I re-examine critical assumptions to question whether they are
appropriate
8 I seek differing perspectives when solving problems
30 I get others to look at problems from many different angles
32 I suggest new ways of looking at how to complete assignments
Transactional Leadership Styles
Contingent Reward
My Supervisor provide others with assistance in exchange for their
1
efforts
My Supervisor discuss in specific terms who is responsible for
11
achieving performance targets
My Supervisor make clear what one can expect to receive when
16
performance goals are achieved
35 My Supervisor express satisfaction when others meet expectations
Management-by-Exception (Passive)
3 My Supervisor fail to interfere until problems become serious
12 My Supervisor wait for things to go wrong before taking action
My Supervisor show that he is a firm believer in “If it isn’t broke,
17
don’t fix it.
My Supervisor demonstrate that problems must become chronic
20
before he takes action
Management-by-Exception (Active)
My Supervisor focus attention on irregularities, mistakes, exceptions,
4
and deviations from standards
My Supervisor concentrate my full attention on dealing with
22
mistakes, complaints, and failures
24 My Supervisor Keep track of all mistakes
My Supervisor Directs his attention toward failures to meet
27
standards
2
Laissez-Faire Laissez
5 My Supervisor avoid getting involved when important issues arise
7 My Supervisor is absent when he is needed
28 My Supervisor avoid making decisions
33 My Supervisor delay responding to urgent questions
Leadership effectiveness measurement dimensions
Effectiveness
37 My Supervisor is effective in meeting others’ job-related needs
40 My Supervisor is effective in representing others to higher authority
43 My Supervisor is effective in meeting organizational requirements
45 My Supervisor lead a group that is effective
Extra Effort
39 My Supervisor get others to do more than they expected to do
42 My Supervisor heighten others’ desire to succeed
65
44 My Supervisor increase others’ willingness to try harder
Satisfaction
38 My Supervisor use methods of leadership that are satisfying
41 My Supervisor work with others in a satisfactory way
Appendix 4 OCAI questionnaire Organizational culture
Please indicate if the statements below relate to the current culture of your team or your
preferred culture. If the statements are not applicable, please leave them blank. The
statements could be relevant in both cases. Please mark the appropriate box/s with a cross
(X).
1
B
C
D
2
Preferred
Organizational Leadership
Now
Preferred
Now
Preferred
Now
Preferred
The leadership in the organization is generally considered to exemplify mentoring,
facilitating, or nurturing.
The leadership in the organization is generally considered to exemplify
entrepreneurship, innovating, or risk taking.
The leadership in the organization is generally considered to exemplify a nononsense, aggressive, results-orientated focus.
The leadership in the organization is generally considered to exemplify coordinating, organizing, or smooth-running efficiency.
Total
A
B
C
D
3
Management of Employees
The management style in the organization is characterized by teamwork,
consensus, and participation.
The management style in the organization is characterized by individual risk-talking,
innovation, freedom, and uniqueness.
The management style in the organization is characterized by hard-driving
competitiveness, high demands, and achievement.
The management style in the organization is characterized by security of
employment, conformity, predictability, and stability in relationships.
Total
A
B
C
D
4
B
Now
The organization is a very personal place. It is like an extended family. People seem
to share a lot of themselves.
The organization is a very dynamic entrepreneurial place. People are willing to stick
their necks out and take risks.
The organization is very results orientated. A major concern is with getting the job
done. People are very competitive, and achievement orientated.
The organization is a very controlled and structured place. Formal procedures
generally govern what people do.
Total
A
A
Dominant Characteristics
Organizational glue
The glue that holds the organization together is loyalty and mutual trust.
Commitment to this organization runs high.
The glue that holds the organization together is commitment to innovation and
development. There is an emphasis on being the cutting edge.
66
The glue that holds the organization together is the emphasis on achievement and
goal accomplishment. Aggressiveness and winning are common themes.
The glue that holds the organization together is formal rules and policies.
Maintaining a smooth-running organization is important.
Total
C
D
5
B
C
D
6
B
C
D
Now
Preferred
Now
Preferred
The organization emphasizes human development. High trust, openness, and
participation persist.
The organization emphasizes acquiring new resources and creating new
challenges. Trying new things and prospecting for opportunities are valued.
The organization emphasizes competitive actions and achievement. Hitting stretch
targets and winning in the marketplace are dominant.
The organization emphasizes permanence and stability. Efficiency, control and
smooth operations are important.
Total
A
A
Strategic Emphases
Criteria of Success
The organization defines success on the basis of the development of human
resources, teamwork, employee commitment, and concern for people.
The organization defines success on the basis of having the most unique or newest
products. It is a product leader and innovator.
The organization defines success on the basis of winning in the marketplace and
outpacing the competition. Competitive market leadership is the key.
The organization defines success on the basis of efficiency. Dependable delivery,
smooth scheduling and low-cost production are critical.
Total
67