THE IMPACT OF TRANSFORMATIONAL LEADERSHIP ON ORGANZIATIONAL PERFORMACE: THE CASE OF ETHIOPIAN SHIPPING AND LOGESTICS ENTERPRISE

Abstract

This study has investigated the leadership practice specifically on the transformational leadership style. The main objective of this paper was to investigate the impact of transformational leadership styles on the organizational performance in the case of Ethiopian shipping and logistics service enterprise. While the four components of transformational leadership that is idealized influence, inspirational motivation, intellectual stimulation and individual consideration are studied in depth. The study was done using both descriptive and causal research design. A stratified sampling was used to select the total population sample and to select samples from different department simple random sampling was used. To conduct the research primary and secondary data source were deployed. Whereas primary data generated through questionnaires and which was developed by adapting the five Lieker scale questions. From the total distributed 131 questionnaires, 103 questionnaires were properly filled and returned. Descriptive, correlation and multiple linear regression analysis were specified, estimated and evaluated. Furthermore, interview was conducted for the selected middle and top level managers. The result showed that transformational leadership styles had significant positive effect on the performance of the enterprise . The study concluded that transformational leadership styles were appropriate in inducing the performance of the enterprise and, therefore, recommended to practice the transformational leadership styles specifically inspirational consideration characteristics according to the regression result consequently on time the decision making process for the critical issues can be improved, effective communication ground could be available and increase the satisfaction of employees.