The Effect of Leadership Styles on Organizational Performance

Abstract

The objective of the study was to assess the effect of leadership styles on the organizational performance in the case of Meskaye Hizuna Medhane Alem Monastery School. The research used both explanatory and descriptive research designs. The study also used cross-sectional survey design. Besides this, the study used a mixed research approach. The target population of the study was employees of the school. The study used a random stratified sampling method to identify respondents across each stratum i.e. departments. Both primary and secondary sources of data were utilized. The study utilized cross-sectional survey method and questionnaire as an instrument for data collection. The study utilized a statistical tool called SPSS V.25 for doing the analysis. Both descriptive and inferential statistics were used to analyze the data. Descriptive statistics such as frequencies, percentage, mean, and standard deviation were used for summarizing and presenting the data. With regard to inferential statistics, Pearson correlation coefficient was used to show the inter dependence between independent and dependent variables and binary logistic regression analysis was used to test the significance contribution of each independent variable to the dependent variable. The study concluded that among the three leadership styles that the study focused on, onlytransactional & laissez-faire leadership styles have positive significant effects on the organizational performance of Meskaye Hizuna Medhane Alem Monastery School; and laissez-faire leadership style has a greatest impact on organizational performance of the school. The study recommended for the school to provide complete freedom for its employees to solve problems by their own, employees of the school should be rewarded more on the basis of performance. Besides this, it is highly recommended that worker’s salaries to be based on performance than other parameters.