EFFECTS OF LEADERSHIP PRACTICE ON ORGANIZATIONAL PERFORMANCE: THE CASE OF ETHIOPIAN SHIPPING AND LOGISTICS SERVICES ENTERPRISE

Abstract

This study aims to investigate the effect of leadership style practices on organizational performance: in the case of Ethiopian shipping and logistics services enterprise. Descriptive and explanatory study designs were employed. Simple random sampling technique was used to select 257 samples out of the total population of 717. The target populations of the study were experts, team leaders and department heads who are working as logistic service. Both primary and secondary data were used. Questionnaire and interview were used to gather information from the respondents. Descriptive and inferential statistics were used to analyze the data. The finding depicted that supervisor makes others feel good to be around them, expresses in a few simple words what they could and should do and provides appealing images about what they did in the organization but employees didn’t completely faith with their supervisor, gets others to rethink ideas that they had never questioned before and supervisors haven’t provided personal attention to others who seem rejected in the organization. In the context of effect of transactional leadership style practice on organization performance in ESLSE, the finding disclosed that supervisor didn’t provides recognition/rewards when others reach their goals as well as didn’t calls attention to what others can get for what they accomplish. In addition to the democratic perspective of leadership style indicated that leaders helped subordinates accept responsibility for completing their work and effective leaders have given orders and explain procedures in the organization while the autocratic leadership style indicated that employees need to be supervised closely in the organization. The study concluded that democratic leadership, autocratic leadership, transformational leadership and transactional leadership have a significant effect on organizational performance at the significant effect of 0.05. The study recommended that top managements and employees work together to perform the shipping and logistics services in a good manner.