THE EFFECT OF LEADERSHIP STYLE ON EMPLOYEE’S

MOTIVATION

(IN CASE OF ETHIO-TELECOM ARBA MICNH TOWN )

ARBA MINCH UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

A RESEARCH PROPOSAL SUBMITTED TO DEPARTMENT OF MANAGMENT IN

PARTIAL FULFILLMENT OF THE REQUIREMENT OF BACHELOR OF ARTS
DEGREE IN MANAGEMENT.

BY:-MAHLET TILAHUN …………………………………ID SSHR/1373/12

ADVISOR; MULUGETA Y. (MBA)

April, 2023

ARBA MINCH , ETHIOPIA

ABSTRACT

This study will be concern with the effect of leadership style on employee motivation in case of Ethio-
telecom in arba minch town, The main objective of the study will be to assess the effect of leadership style
on employee’s motivation in the ethio telecom ,The relevant data for this study will be collect from
primary sources, Primary data will be collect through questionnaires, In this study the researchers will
be use descriptive research design and the respondents for the research is select some employees by
using sample technique,The collect data will be analyze and organize in the form of table and
percentage, accomplish with relevant decision to make it easily understandable for the reader, the study
will have to use the sample size of 99 by using simple random technique from the target population of 131
The researchers will be use both qualitative and quantitative method of
data collection Finally based on the finding, the researchers will be recommend the
Key words:-employee motivation, leadership style, leadership

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Table of contents

Table of Contents page

ABSTRACT....................................................................................................................................i
Table of contents............................................................................................................................ii
List of table....................................................................................................................................iii
CHAPTER ONE..............................................................................................................................1
1 INTRODUCTION........................................................................................................................1
1.1 Back ground of the Study.......................................................................................................1
1.2 Statement of the Problem.......................................................................................................2
1.3 Research Questions................................................................................................................3
1.4 Objective of the Study............................................................................................................3
1.4.1 General Objective............................................................................................................3
1.4.2 Specific Objectives..........................................................................................................3
1.5 Significance of the Study.......................................................................................................3
1.6 Scope of the Study.................................................................................................................4
1.7 Organization of the Study......................................................................................................4
CHAPTER TWO.............................................................................................................................5
2. REVIEW RELATED LITERATURE.........................................................................................5
2.1 Theoretical Concept...............................................................................................................5
2.1.1 Definition and Concept of Leadership............................................................................5
2.1.2 Theories of leadership.....................................................................................................5
2.1.3 Leadership styles.............................................................................................................7
2.1.4 Effect of Different Styles on Employees Performance.................................................10
2.1.5 Characteristics of Effective leader................................................................................10
2.1.6 Factors affecting leadership effectiveness.....................................................................11
2.1.7 Function of leadership...................................................................................................12
2.1.8 Techniques of leadership...............................................................................................13
2.1.9 Employee Motivation....................................................................................................14
2.1.10 Leadership and Motivation..........................................................................................14
2.1.11 Importance of Motivation............................................................................................15

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2.2 EMPERICAL STUDY.........................................................................................................15
CHAPTER THREE.......................................................................................................................16
3. RESEARCH METHODOLOGY..............................................................................................16
3.1.study area discription...........................................................................................................16
3.2 Research Designe.................................................................................................................16
3.3 Research approach...............................................................................................................17
3.4 Targeted population.............................................................................................................17
3.5 Data sources.........................................................................................................................17
3.6 Method of data collection....................................................................................................17
3.7 Sample
Technique……………………………………………………………………………………..17
3.8 sample size...........................................................................................................................17
3.9 Data processing and analyzing.............................................................................................18
3.10 Ethical consideration..........................................................................................................18

3.11 Time and budget cost.........................................................................................................18

Reference............................................................................................................................20

Apendex.........................................................................................................................................22

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LIST OF TABLE

Table3.1 time schedule…………………………………………………………………19

Table3.2 budget Schedule....................................................................................................20

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CHAPTER ONE

1 INTRODUCTION
1.1 Back ground of the Study
Leadership can be defined as the art of serving others by equipping them with training tool as
your time energy and emotional intelligence so that they can realize their full potential both
personally and professionally (Daphne, 2007). Leadership is the art of getting else to do
something you want done because they want to do it (Dwight, 2003).
It is the ability of company management to make sound decision and inspire other to perform
well, effective leaders are able to set achieve challenging goal to take swift and decision action
(Ivancevich,2004).leadership is interpersonal influencing directed towards attaining goals and
achieved through communication and also influenced increments over and above mechanical
compliance with direction and orders (Daphne ,2007).
Leadership is the key dynamic forces that motivate and coordinates the organizations in the
accomplishment of its Objectives, if an organization has effective leadership style that motivate
employees’ for the accomplishment of the task effectively and efficiently (Dubrin,2005 ).
The success of path and goal depends on how the path is traveled to attain the goal. Goal
increase the employee’s expectancy, a leader has to motivate them to achieve goal and reword
(Mishra, 2001).
Motivation refers to the force within a person that affects his or her directions, intensity and
persistency of voluntary behavior. Motivated employee are willing to exert a particular level for
a certain amount of time towards a particular goal (Stephen,2008).
Employees play an important role in the success of organizations. To be successful an
organization must attract and keep the individuals it needs to achieve its objectives. An effective
leader “connects with people and understands that task to be done, those skills required to
perform them and environment in which people work (Mishra, 2001)”.

Leadership is critical to the ongoing success of organizations in every sector of today’s

competitive leadership style is the mixtureof skills, traitsand behaviors leaders use as they

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interrelatewith of effective leadership and thus successful managers aresuccessful leaders
because they have great global business markets. Leadership gives managers the ability to
shapethe behavior of their influence on their employees in order to help accomplishing
organizational goals (Naile&Selesho, 2014).
Leadership styles vary between industries and organizations. According to Lussier (2013)
employees in an organization. Motivated employees constituteone of the most important results
followers. Although a leadership style is based on traits and skills, the important component is
the behaviorbecause it is a relatively consistent pattern of behavior that characterizes the success
of a leader. Leadership styles are adapted by several leaders in accordance with the demand and
working environment of an organization (Zahari & Shurbagi, 2012).

1.2 Statement of the Problem

First the motivation of the researcher is to conduct this study to known the effect of leadeship
style on employee motivation under the orgnization and also identify the weakness and strength
of the study area by the searching the problems.

Rant or speaking loudly for attracting and retaining employees in the organization has become
increasingly challenging. Globalization and multi-national factor have contribute to make human
resource more demandable. At the same time motivating employees have be found to be a
catalyst for employees’ performance for organization success. Many organization struggles to
offer attractive benefit, salaries and incentives (Davis, 2004).
Leaders play an important role in creating an atmosphere and culture of enthusiasm and
productivity among the employees that help them to do what they need to do.
Effective leader can able to encourage the entire organization by indicating the specific
motivator of each individual or group to inspire employees, absence of good leadership style
leads the organization to failing to achieve its goal (Kibre,2008).
The motivation of employees can be reflect when the leadership is kind and approachable. Goals
that are set in a team together are more likely to be values as the members are part of setting the
goal. Involvement of the members is important in ensuring continu production. So leaders must
set goals by participating the members or employees of an organization (Levi, 2009).
The researchers conduct preliminary sample to get insight about the study topic and the outcome

of the sample indicates that there are some problems relate to leadership style on employee

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motivation, one of the problems is most leadership style is rigid and no clear communication

between workers and management body. Therefore: the researcher is going to conduct this study

to assess the effect of leadership style on employee motivation and to suggest solution for the

existed problems in ethio telecom in arba minch town. and this research is Show how leadership

style affects employee’s motivation on the specified company.

This research most important because any researches use this research for as reference to
preparing new finding on this area.

1.3 Research Questions

This study will be attempt to address the following research questions:-
1. What is the effect of leadership style on employee motivation?
2. What are the factors that affect to apply the leadership style that motivates the employee?
3. What attitude does employees toward the existing leadership style?
4. Which type of leadership style is mostly practice in the organization?

1.4 Objective of the Study

1.4.1 General Objective
The general objective of the study is to assess the effect of leadership style on employee
motivation in case of Ethio-telecom in arba minch town.

1.4.2 Specific Objectives

 To examine the effect of leadership style on employee motivation.
 To examine the factors that affects the application of leadership style that motivates the
employee.
 To identify the attitude of employees toward the existing leadership style
 To identify the type of leadership style mostly practice in the organization.

1.5 Significance of the Study

According to our view there are no more researchers do on result leadership style on employee
motivation in the given area. It will be the ground point for who want to do further research on
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similar problems. It can be se as a guide to new comer students by providing the data to similar
topic and sub-topics of the study about the Ethio Telcom in Arbaminch town.. Lastly, the study
will be a stepping stone in the area and will be a good input for future researchers to study the
topic by including wider geographical area and wider concept and also identifies the weaknesses
and strength.
Identify useful strategies that can help the leaders Ethio- telecom Company develops an
atmosphere of motivation. And the researcher understanding about the effect of leadership style
on employees’ motivation. The study is providing detail information about leadership style and
employee motivation contributes to increase the overall performance of the organization
providing the necessary information on telecom function for the user.

1.6 Scope of the Study

Even if the scope of the study will be very broad in context it will be limted in explanatory
research design. the study is geographically area is limit in ethio telecom in Araba Minch town.
Conceptually the study limit to the effect of leader ship style the employee motivation.

1.7. Organization of the Study

The study will be organize into five chapters ,chapter one an introduction part includes
back ground of the study, statement of the problem, research questions, and objective of
the study, significance of the study, scope of the study and organization of the study. The
second chapter also consists of related literature review. The third chapter consists of
Research Methodology, includes research design, targeted population, sampling
technique, method of data collection, and method of data analysis and possessing,
research approach. Chapter four consists of data presentation, analysis and interoretation.
The last chapter contains summary, concolusion and recommendation.

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CHAPTER TWO

2. REVIEW RELATED LITERATURE

2.1 Theoretical Concept
2.1.1 Definition and Concept of Leadership
Leadership is a process by which executive can direct, guide and influence the behavior and
work of others towards the accomplishment of specific goals in a given situation. Leadership is
an ability of a manager to work with confidence and zeal. Leadership can be defined as the
capacity to influence a group realization of the goal. Leaders are required to develop the future
vision and to motivate the organizational members to want to achieve the vision and to improve
the performance (Adair, 2002).
Leadership is the act of influencing and directing people in such a way that will win their
obedience, confidence, respect and loyal cooperation in achieving common objective.
(Bernard, 2000).
Leadership is to deal and cope with change, focusing on the long term and the big picture, not
always doing to safe himself in fact to take risk and concentrating on people and their values
(Kourdi, 1999).

2.1.2 Theories of leadership

2.1.2.1 Trait theory
Trait means quality, according to this theory leadership behavior is influence by certain qualities
of a person. In simple words, leadership behavior is some total of trait studies conducted to
identify the qualities of the past and present leader’s in terms of their education, experience,
character, family background, etc. Another ways of finding leadership quality is to enquire how
the leader considers him/her different from others in a particular situation. A successful leader
has the following qualities. Good personality, tirelessness, ability to make quick decision,
courage to face competitors, persuasion, intelligence, different thinking, reliability, physical
fitness, etc. Initially most of the people thought that leadership of qualities where inherited but
latter they conclude that the acquired qualities could be developed by experience and training.
(Ramswamy, 2001)

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2.1.2.2 Behavioral theory
The base of this theory lays in fact that how the management viewed the workers. Behavior
theory assumes that people are lazy and irresponsible by nature, so there is a need to motivation
workers. Here the leader acts as a motivator. Therefore, the managers should be directive.
(Taylor, 1911) finds, in that the behavior of workers through scientific management approaches.
Elton mayo and his associates have identified the workers behavior by conducting throne
experiments. They come to the conclusion that human behavior is mainly responsible for
effective leadership. Behavioral theory developed autocratic and democratic leadership styles.
Different and conflicting results were obtained due to changes in the behavior of the leaders and
followers in the past. Both leaders and followers change their behavior according to the situation
they are in.(Ramswamy,2001).

2.1.2.3 Situation theory

The usefulness of traits and behaviors is test in particular situation. Some traits and behaviors are
effective in a particular situation and in effective another situation. As per the situation theory, a
leader is strongly affected by the situation in which he/she works situation helps the person to
develop their leadership qualities and to emerge as a leader. Situation theory believes that there is
interlink between the group of workers and its leaders. Some groups as workers have aspirations.
They follow the leaders who are capable of realizing their aspiration. Thus it is the situation that
shapes the leadership qualities. (Ramswamy, 2001)

2.1.2.4 Followers/acceptance theory

Accordingly to this the only followers take a decision analyzing the qualities of a person who
helps to have their needs fulfilled. Here, there is a need for forming a group and fulfilling some
need of such a group. This theory cannot apply without the group of followers. Under this theory
if followers accept a person as their leader, he/she becomes a leader irrespective of his/her
qualities and behavior. (Mishra,2001).

2.1.2.5 System/a path goal theory

This theory is focus on operations act rather than traits or behaviors. A leader coordinates the
effort of his/her followers. The process of coordination is termed as persons act. The process of
coordination stimulates the people to achieve the goal in a particular situation. System theory

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considers all the variables. The term variables include leader, followers, situation, leadership
traits, environment goals and group’s nature, characteristics and needs, role behavior and
coordination effort of the leader. So this theory is considered as modern theory of leadership.
(Ramswamy, 2001)

2.1.3 Leadership styles

A leadership style is a manner that a leader accomplishes his/her task. Concern to leadership is
very important because styles determine the level of success and effectiveness. There are various
types of leadership styles.(Peter, 2009).

2.1.3.1 Participative Leadership Style

The participative leadership style includes the management and employee’s cooperation for the
development of the organization. Participative decisions are not unilateral. It includes the
consultation of employees entrusted with the job of the performance. The leader and employee
work as a social unit. They become a composite unit of an organization and undertake the
responsibility of organizational performance. This style is consistent with the supportive and
collegial models of organizational behavior (Mishra, 2001).

2.1.3.2 Autocratic Leadership Style

This leadership style is likely to become dictators, also under the autocratic leadership style all
decision making power are centralized to the leader they do not entertain any through from them.
Autocratic leadership style provides strong motivation to the leader and this is shown to be true
as it has been successful in the past. It is effective as it permits quick decision making as only the
one person needed to decide for the whole group. Autocratic leader do not trust anyone and
generally more task oriented, they expect their task to be done and they do not consider their
follower feeling in the decision making (Pal,2011).
2.1.3.3 Laissez-faire Leadership Style
In this type of style group members train themselves and provide their own motivation while
leaders avoid power and responsibility. The leader plays a minor role in this style. He is simply a
guide. He behaves in differently does not bother much about his duties. Employees perform
under the simple supervision of the leader. Unlike autocratic leader who ignores employees and

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group members, a leader following this style gives more importance to the employees. Since the
leader is dormant, chaos and disturbances in the organization are visible, employees become
uncontrolled and troublesome. It is dormant style (Mishra, 2001)
2.1.3.4 Bureaucratic Leadership Style
It is very structured and follows the procedures as they have been established. This type of
leadership has no space to explore new ways to solve problems and usually spaced to ensure
adherence to the leaders stated by the company. Leaders ensure that all the steps have been
followed prior to sending it to the next level of authority. Universities, hospitals, bank and
government usually require this type of leader in the organization to speed up the process will
experience frustrating and anxiety (Weber, 1905).

2.1.3.5 Transformational Leadership Style

This style provides individual consideration and intellectual stimulation and change followers
awareness of issues. By helping they to look at old problems in new ways and they are able to
excite, arouse and inspire followers to put out extra to achieve group goals. Transformation
motivates its team to be effective and efficient communication is base for goal achievement
focusing the group in the final desired outcome or goal attainment. The leader highly visible uses
chain of command to get the job done. Transformational leader focus on the big picture, needing
to be surrounded by people who take care of the details. The leader is always looking for ideas
that move the organization to reach the company’s vision.( Robbins, 1996).

2.3.6 Transactional Leadership Style

This leadership is the traditional management function of leading in an essence do what
manager’s do they classify the role of employees, initiate structures and reward or punish
individuals for the team performance. Transactional leader is given power to perform certain
tasks and reward or punish for the team’s performance. It gives the opportunity to the manager to
lead the group and group agrees to follow his lead to accomplish a predetermined goal in
exchange for something use. Power is given to the leader to evaluate, correct and train
subordinates when productivity is not up to the desired level and reward effectiveness when
expected outcome reached. (Robbins 1996).

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2.1.4 Effect of Different Styles on Employees Performance
As elaborated by Myron Rush and Cole the participative style of leadership has a great positive
effect on employee’s performance in which situation employee feel power and confidence in
doing their job and in making different decisions. And in autocratic style leaders only have the
authority to take decisions in which employees feel inferior in doing jobs and decisions. In
democratic/participative leadership style employees have to some extent discretionary power to
do work so their performance is better than in autocratic.(Daphne, 2007).

2.1.5 Characteristics of Effective leader

There are so many characteristics that a good leader possess. According to (Hothouse 2009), the
following are traits or characteristics of effective leader.
1. Intelligence: - Intelligence is an important trait related to effective leadership. Intelligence
includes having good language skills, perceptual skills and reasoning ability. This combination
of assets makes people good thinkers and makes them better leaders.
2. Confidence: - Being confident is another important trait related to effective leader. Confident
people feel self-assured and believe they can accomplish their goals. Rather than feeling
uncertain, they feel strong and secured about their positions. They do not second-guess
themselves but rather move forward on projects with a clear vision. Confident leaders feel a
sense of certainty and believe that they are doing the right thing. Clearly, confidence is a trait
that has to do with feeling positive about oneself and one’s ability to succeed.
3. Charisma: - Of all the traits related to effective leadership, charisma gets the most attention.
Charisma refers to a leader’s special magnetic charm and appeal, and can have a huge effect on
the leadership process. Charisma is a special personality characteristic that gives a leader the
capacity to do extraordinary things. In particular it gives the leader exceptional power of
influence.
4. Determination: - It is the decision to get the job done, it includes characteristics such as
initiative, persistence and drive people with determination are willing to assert themselves they
are proactive and they have the capacity to preserve in the face of obstacles. Being determined
includes showing dominance at times, especially in situation where other need direction.

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5. Sociability: - Another important trait of leader is sociability. Sociability refers to a leader’s
capacity to establish pleasant social relationships. People want sociable leaders, leaders with
whom they can get along. Leaders who show sociability are friendly, outgoing, courteous tactful
and diplomatic. They are sensitive to others needs and show concern for their wellbeing.
Sociable leaders have good interpersonal skills and help to create cooperative relationships with
in their work environments.
6. Integrity: - Finally, and perhaps most importantly, effective leaders have integrity. Integrity
characterizes leaders who possess the qualities of honesty and trustworthiness. People who
adhere to a strong set of principles and take responsibility for their actions are exhibiting
integrity. Leaders with integrity inspire confidence in other because they can be trusted to do.
They are loyal, dependable and transparent. Basically, integrity makes a leader believable and
worthy of our trust (Northouse, 2009).

2.1.6 Factors affecting leadership effectiveness

Scholars in the area of business often stress that the success or failure leadership is determine by
personal as well as organizational factors. According to Mamoria (1986), in addition to personal
qualities possessed by the leader, several other factors affect the quality of leadership. As
stressed by this scholar, some of the factors are:

2.1.6.1 Organizational size

The number of people in an organization increase the enterprise becomes more small and
bureaucratic. Therefore communication becomes more impersonal, greater reliance is placed on
previously adopted procedures, policies and rules, the relation to change events become slower
And less spontaneous. A manager in small organization normally can be more flexible and
prompter action. Thus, exercising leadership in small organization can be perceived than a
manager in a comparative large organization.

2.1.6.2 Interaction of group members

The need for member of an organization to communicate with one another and in other ways
interact varies considerably. In assembly line operations, interaction needs are few compared
with those required in an advertising agency or data processing firm. So, as far as leadership is
concerned the more interaction the greater opportunity to demonstrate leadership skill.

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2.1.6.3 Personalities of group members
The kind of leadership that proves most effective in any organization relates to the personalities
those who make up the group. In an organization in which members are passive and do not want
to participate in planning the leadership style is likely to be autocratic. Some people do, in fact,
prefer, taking orders and making no inputs in to the decision making process.

2.1.6.4 Congruence of goals

Generally, when member of an organization share the same, clearly defined goals, a leadership
style based on participation is more likely to work when members are working toward different
or conflicting objectives, manager must immediately get every headed in the same direction.
Otherwise to the situation will result in quarrels, bickering, conflicting orders, excessive tension
and others, which are the main feature of in effective leadership.

2.1.7 Function of leadership

Leaders of an organization have quite a different roles and function to assume. In general terms,
a leader has to take all initiatives to lead the business activities. The function of business leader is
briefly explained by (Ramswamy 2001) as follows:
 Representation: -a leader is representation of an organization. The leader represents the
purpose of the organization to workers and outsiders.
 Guide: -the leader has the primary duty of guiding others. Prospers direction should be
given by a leader. If he/she does not do so, the organization will not succeed.
 Encouraging others: -the leader is the captain of a team. The leader must win the
confidence of his/her colleagues in order to succeed without team workers.
Encouragement is necessary to build up team work.
 Arbitrator and mediator: -the leader can settle the disputes arising among the workers.
Besides, he/she can create a smooth relationship among the workers.
 Planner: -all type of work is decided by the leader. The leader can decide when a work is
to be done, where it should be done and by whom it should be done.
 Rewards and punishments: -there are standards for some set of work. The leader can
give rewards those who have a completed the work as per the standard and the leader can
punish the worker who does not complete the work as per the requirements of job.

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 Integration: - each individual does a part of a whole work. They perform the work
according to the specialization. Here, there is a need for integration. So, the leader
integrates the effort of all workers.
 Communication: - communication is ever thing without any communication the whole
organizational structure will fall. So, they should arrange for an effective communication
system in an organization.

2.1.8 Techniques of leadership

A manager while directing the subordinates must cultivate certain qualities among his
subordinates. This can give a confidence about their superior. For this purpose the manager
display his leadership towards the following aims which are pointed out by (Donnell, 1986)
I. Confidence building: - by successful applying all the management techniques a manager
gains knowledge and experience. He/she refines the application of various techniques through
his/her own experience. This alone can give his/her a confidence about his/her job and position.
II. Inspiration: - ever manager must develop his/her own inspirational techniques. This cannot
be taught; through his own experience manager must inspire his subordinates.
III. Strengthening personal qualities: - the moral code and personal character of a leader can
influence the subordinates towards a good end.
IV. Co-ordination and command: - in order to get the desire action, a successful leader must
coordinate the act of co-workers through order or commands. These orders should be define,
sequential, flexible and open.
V. Developing high group moral:- moral is the state of mind or attitude of individuals and
groups growing out of the conditions under which they operates, including their operating
environment, their particular activity, their association in the group, the quality of their
leadership and the demands of the worker is making up on his/her job. A leader has certain traits,
which assist him in playing a directing role and wielding commanding influence over others.

2.1.9 Employee Motivation

Nowadays, employee motivation is considered as one of the most vital part in reaching the
success and prosperity of business in such a dynamic and fierce market competition. According
to (Pinder,1998), employee motivation is a set of energetic forces, internal factors of each
individual

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as well as external factor, for example, job characteristics, individual differences and
organizational practices.
In other words employee motivation should be a complete combination of employee’s needs and
expectations that create from work and other workplace factors that enable employee motivation
(Luomanpaa, 2012).

2.1.10 Leadership and Motivation

Developing an understanding of the effect of leadership can make on employees motivation is
important. In the past the mission of leader in relation to employee’s motivation has not been
clear and leaders frequently undermined the importance of developing effective relationship with
stack holders including the employees (Kuczmaraski, 1995).
Organizations are focusing on the need of their employees as never before. Offering an array of
benefit reorganizing work process to make them more interesting, giving employees more power
to control their jobs. With today’s reliance on knowledge workers and their unit abilities, it is
important for organization to insure that their employees are committed and motivated to
perform well (Robbins, 1996). Leaders also must recognize that what motivate “X” is different
than what motivates “Y”. Border maintains that leaders should implement different strategies
that are customized to individuals. For example some employees simply motivated by the job
security, other by clear company policies, power, recognition and compensation. On the other
side, there is a category of employees who are intrinsically motivated who are just enjoying what
they do (Broders, 2015).Encouraging employees for achieving their goal important in creating an
enjoyable work environment. Appreciation goes with positive feedback; verbal praise can
improve remarkable employee motivation. In addition, employees should be invited to share
their experiences in, and co-workers contribution towards accomplishing the goals (Loumanpaa,
2012).

2.1.11 Importance of Motivation

The importance of motivation is maximum utilization of factors of production. Workers perform
the work sincerely through the inspiration of motivation and this creates possibility of maximum
utilization of factors of production, labor and capital. Increase willingness to work technically,
mentally and physically fit perform the work. Reduce absenteeism; financial incentives make the
workers to work more.

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Reduce turnover; incentives helps the workers not to leave from the organization. Building good
employee relationship; motivation helps to solve labor problems of absenteeism and turnover in
discipline relevance and ensure the building of good relation to others. Helps to realize
organizational goals. Motivated employees involved in the performance of organizational tasks
and work while hardly for the realization of organizational goals (Stephen, 1998).

2.2 EMPERICAL STUDY

According to Newstron, (1998), leadership style is a manner and approach of providing
direction, implementing plan and motivating plan. It is an essential part of the path goal model as
it tells the employees what to do and how to do which is respectively goal and path.

According to Stephen (2001), motivation refers to the force within a person that affects his or her
direction, intensity and persistence of voluntary behavior. Motivated employees are willing to
exert a particular level of effort for a certain amount of time towards particular goal.

According to Ramlall (2004) also suggested that rewards leads to higher level of motivation as
well as performance. To influence individuals or group behaviors, rewards are management tools
that contribute positively to firm’s effectiveness. Common types of rewards are used by most of
businesses, namely: payment, promotion, bonuses to motivate and encourage high level
performances of employees.
According to Adair (2004), “Leadership is the ability to persuadeEmployee
other tomotivation
seek defined
objectives enthusiastically. It is the human factor which binds a group together and to improve
their performance and to direct them towards goals”.
According to Mazash (2006), leadership style has an impact on employee motivation.
According to Ramswamy (2009), acceptance theory plays a significance role managing the
people at present. In the political world also a person who satisfies the needs of his/her followers
who become a leader. Followers disown their leader when he/she fails to satisfy their needs. The
needs of the group are the crucial and guiding factors in determining.

Dependent variable

independent variable

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CHAPTER THREE

3. RESEARCH METHODOLOGY
3.1 Study area description
The study will be accomplish in arba minch city which is the center of gamo zone. It located in
south nation nationalitis people region on the main road from Addis Ababa about 505 Km
southern direct Arab Minch one of the zonal towns within in south nation and nationalities and
the description of or case area is Ethio Telcom it is one of the public services under this
Arbaminch town have two Ethio Telcom service to provide different service and the direction of
the organization is found around the center of Arbaminch town at sikela.

3.2. Research Design

The type of research design in this study will be explanator type of research design. In order to
Organization culture
Leadership style
describe the exits situations, researcher’s select descriptive research and to describe the state of
current leadership style on employee motivation.
Employee satisfaction
3.3 Research Approach
The desire data is using two approach methods those are quantitative and qualitative method
under quantitative the researcher will use interview and use questionary for qualitative.

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3.4 Targeted Population
Target population for the study is considering the employees of the Ethio-Telecom they are 131
employees ethio telecom in arba minch town

3.5 Data sources

Research will be use primary and secondary sources data for the accomplishment of the study.
Research will be search Primary sources from employees of the telecom in arba minch town and
secondary sources from documents.

3.6 Method of data collection

To obtain relevant and necessarily information the research will be structured questionnaires
filled by employees. Primarily data is collect through questionnaires which includes both open
and close ended question.

3.7 Sampling Technique.

The population is large in the organization, so the researcher would be used probability sampling
techniques particularly simple random sampling technique. The reason for selecting these
methods, it is fair to select a sample and all employees have equal chance to be selected.

3.8. Sample Size

In order to get the required information,the researcher determines the sample size in Arba Minch
ethio telecom there are 131 employees. In order to get the required sample size,the researche
used the formula with 95% confidence level of interval (0.05) marigin of error.

i,e. n=N/1+N (e) 2 Where: n= Sample size

n=131/1+131(0.05) 2 N= Total population

n=131/1+131(0.0025) e= Level of error

n=131/1.3275

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n=99

Then the total sample size of the employee is 99 employees would be assigned proportionally by
the researcher to be taken from the organization.

3.9 Data Processing and Analyzing

The collect data is carefully process and analyze precisely use table and percentage. This raw
data process, Analyze interpret. The intend outcome obtain, the collect data edite, classifie and
error omitt. By using descriptive and causal analysis data further process and analyze. Finally the
data will be effectively process, analyze and interpret by using percentage, frequency and
tabulating and lastly the process, Analyze and interpret data leads to conclusion and
recommendation of the study.

3.10 Ethical consideration

Ethics in terms of code of behavior appropriate to academics and the conduct of researcher with
statement of principles and procedures for the conduct of the research. To carry out the study, the
researcher is communicating with individuals and institution. Thus, the data collect not disclose
and exclusively use for only academic purpose. When time of the distribute questionnaire the
respondents are given relevant.

3.11 TIME AND BUDGET SCHEDULE

Time schedule

Time schedule is the time table explaining how the research expected to carry out this project. It is the
plan in terms of months and expecte completion. Dates it is present in the table form or chart in the
following schedules;

Table 1: - Time schedule

NO Activitey TIME PERIOD

Mar April May Jun July August

ch e
1 Topic selection XX

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2 Preparations of proposal XX
3 Collections of use full material XX

4 Data collection XX XX XX

5 Sample selection and writing of final XX

research
6 Submission of fsearch XX

7 Presentation XX
Of final research

8 Contact to advisor XX XX XX XX XX XX
Budget schedule

There are different cost table incurred to undertake this study. Theresearcher
estimates the following minimum cost per items.

Unit price Total

Item Quantity Birr Cent Birr Cent

No

1 Typist 1 200 00 200 00

2 paper 46 2 00 92 00

3 Binder 1 50 00 50 00

4 Pen 3 piece 25 00 75 00

5 Transportation 6 30 00 180 00

6 Mobile card(telephone) 1 hr 30 00 30 00

7 Flash disk 16 GB 300 00 300 00

8 Printing cost 46 5 00 230 00

9 internet 600 MB 38 00 38 00

10 Other expense 500 00 500 00 18 | P a g e

11 Total 00 1695 00
REFERENCE
Adair J (2002), Effective Strategic Leadership, Macmillan Publisher Limited, London.
Andrew J.Dubrin, (2001), effective leadership, Indian
Bernaed, (2000), Definition and Traits of Leadership Theory, 11 th edition in Western Part
of USA.
Broders M. (2015), Motivation in the Work Place for Optimal Results, from C.C. Pinder,
(19980, Motivation in Work, Upper Saddle River, NJ; Prentice Hall.
Daphne Malory, (2007), organization behavior, 2nd edition, western publishing co, USA
Davis Beverly M, (2004), the impact of leadership on employee motivation, 7th edition
Dwight D.elsenhour,(1994), leadership style and theory of motivation, 2 ndedition, Canada
cataloguing publisher, Canada

F.w.taylor,(1911), the principles of scientific management,

Invancevich, (2004), Human Resource Management, 7th edition, Irwin McGraw-Hill,

USA
Harold koontz and cyrilo’donnell, (1986) principle of management,

Kuczmaraski S & T. (1995), Value Based Leadership Rebuilding Employee

Commitment, Performance and Productivity, Englewood Cliffs, NJ; Prentice Hall, Inc.
Kourdi J, (1999), One Stop Leadership, ICSA Publishing Limited, London.
Levoi B. (2009), test your knowledge of employee motivation
Lisa cash hanson, (1999), business and economics, 4th edition, Ranald house, USA
Mamoria, personal management, 1st edition, himalia, india, 1986

M N Mishra, (2001), Organizational Behaviour, Vikas Publishing House PVT Limited,

New Delhi India.
Newstrown devise,(1998), motivation factor, 3rd edition, Austria and Florida
Peter G. Northouse, (2009), SAGE Publication Ltd. USA.
Ramswamy,(2001), pr les of management, 3rd edition, himalaya, delhi,

R. Luomanpaa, (2012), “Employee Motivation at Tommy Bartlet Inc. Wisconsin Dells,

USA.

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Stephen P. Robbins, (1998), Organizational Behaviour, 3rd edition, Prentice Hall Inc.
India.
S. Ramlall, (2004), A Review of Employee Motivation Theories & Their Implication incip

in Employee Retention with in Organization, Journal of American Academy of Business,

Cambridge.
Yamane, Taro, (1967),statistics an introductory analysis,2nd edition, new York

APPENDIX

UNIVERSITY OF ARBA MINCH

COLLEGE OF BUSINESS AND ECONOMICS
DEPARTEMENT OF MANAGEMENT
Questionnaire to be filling filled by Respondents
Dear Respondents: I would like to say thank you for giving your valuable time and for
your cooperation in filling questionnaire. The following questions are designed for the
collection of data for the research entitled the effect of leadership style on employee
motivation. The questionnaires are designed and used only for academic purpose and the
information you will offer will be kept confidentially. Your genuine response to the
questions will have great immeasurable contribution to the outcome of the final research.
Thank you for your cooperation
Instruction
No need write your name
Please put” X” in the box for close ended questions
You can choose more than one answer
PART ONE: - DEMOGRAPHIC INFORMATION
Sex A, Male B, Female
Age A, below 25 years old B, 26-35 Years old C, 36-45Yearsold
D,above46 3.Marital status: A, married B,
unmarried C, Divorced D, widowed

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4. Educational level: A, certificate B, Diploma C. Degree D.
Master and above
5. Experience A. less than 1 B. 1-5 C 6-10 D. Above 10
PART TWO: - MAIN QUESTIONS
6, Does leadership style has effect on employee motivation
A, yes B, no
7, if said yes for the above question what is the effect
A, lack of willingness to work efficiently B, high turnover
C, affects workers personal life D, all E, others---------------------------
8 do you like your leaders style of leading?
A, Yes B, No
9, If you said no for no 8 please specify your reason
A, use one way communication B, biasness C, Insecurity
10. What is the attitude of employees towards the existing leadership style?
A, very high B, high C, medium D, low E,
very low
11. Dou you think that the organization has mechanism to motivate workers?
A, Yes B, No
12, if your answer is yes for no 11 what are the mechanism
A, recognition B, material reward
C, Salary increment D, if other------------------------
13. Is there any problem related to motivation in the organization?
A, Yes B, No
14, if your answer is yes for no 13 what the main cause is?
A, Lack of interested partners in the job B, lack of incentives
C, lack of safety work condition
15. Which type of leadership style is exercised in the organization?
A. Autocratic B, Laissez fair
C, Democratic D, Situational
16, Is there any problem related to leadership style in your organization?
A, Yes B, No

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17, If you replied yes for no 16 what are the problem?
A, lack of effective communication B, low security
C, lack of recognition D, lack of reward for high achievers
18, what is the role of leaders in the organization?
A, Encourage good workers
B, Punish low achievers
C, If any other-----------------------------------

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