THE IMPACTS OF LEADERSHIP STYLE ON EMPLOYEES PERFORMANCE: THE CASE OF CARTER CENTER ETHIOPIA AND ORBIS INTERNATIONAL ETHIOPIA

Abstract

This main objective of this paper was to examine the effect of leadership styles on job performance of employees working in The Carter Center Ethiopia and Orbis International Ethiopia. A sample size of 106 was used from two selected NGOs in Addis Ababa using stratified sampling technique. The study adopted explanatory research design. A five-point likert scale structured questionnaire was used for data collection. SPSS software was used in analyzing the questionnaires. Descriptive statistics was used to measure the central tendency through use of mean scores, percentages, frequencies and presented in tables and charts. Regression analysis was used to establish the relationship between the study variables. The study found that all the three leadership styles namely democratic, autocratic and laissez-fair are practiced at The Carter Center Ethiopia and Orbis International Ethiopia. Laissez faire leadership style is predominantly exhibited by the leaders of these organizations followed by Democratic leadership style. Autocratic leadership style is the least practiced by the supervisors. The study revealed that the task, contextual and adaptive performance of the employees working at the two selected organizations is high. Lastly, the study found that leadership style of the managers affects the employee performance either negatively or positively. Accordingly, democratic leadership style and laissez-faire leadership style positively affect employees’ performance. Thus, hypotheses in relation to these factors were accepted. On the other hand, autocratic leadership style insignificantly negatively affects employee performance and the tested hypothesis in relation to this variable was rejected. The study recommends that supervisors to practice more of democratic leadership style to enhance the performance of employees. Though the result of the descriptive analysis shows that this leadership style has greater effect on employee performance, the managers should monitor the attitude, behavior of employees and situation and exhibit the right mix of the three types of leadership style depending on the situation.