ASSESMENT OF LEADERSHIP AND ITS EFFCT IN ORGANIZATIONAL

PERFORMANCE

(CASE STUDYMEKELLE TOWN MUNICIPALITY)

ARESEARCH PAPER SUBMITED IN THE FULFILMENT OF THE

REQUIRMENT FOR OBTAING THE DEGREE OF BACHELER IN
MANAGEMENT

BY

KASAHUN BIRHANU

ID NO:-CBE/UR/0449/04

ADVISOR INSTRACTOR FYORY ADHENA (MA)

MEKELLE UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

June 5, 2014

MEKELLE-ETHIOPIA
ASSESMENT OF LEADERSHIP AND ITS EFFECT IN ORGANIZATIONAL
PERFORMANCE

(THE CASE STUDY MEKELLE TOWN MUNICIPALITY)

Approval of the supervisor

Advisor’s full name Signature

------------------------------------------------------------- -----------------------------

Evaluator’s full name Signature

------------------------------------------- -----------------

ACKNOWLEDGWMENTS

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First of all, my deepest as well as greatest of thanks will go to the Almighty of God, for his
keeping, loving ,guiding and helping me throughout all the study years in this campus.

Secondly, I feel deep gratitude toward my advisor, Fiyory Adhna who listened, supported,
corrected, and encouraged me throughout my study. She put in countless hours to help me with
options for the directions of the work and editing all tolerantly. And I am forever grateful for her
valuable comments, precious time and attentions. So, thank you for everything you thought me,
your guidance, support, and making me stronger as to finalize this paper.

And Thirdly, I feel deep gratitude toward vice manager of Mekelle town municipality ATO
BAYRAY BELAY HAGOS who help me by giving the necessary information.
I also extend my limitless love and thanks to my family especially my beloved brother and sisters for
their immeasurable help, courage, love and sharing all my felling throughout the study year.
Lastly, my appreciation and heartfelt thanks go to all my colleges and my friends who initiated
and commented me thanks.

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Abstract
The study was conducted to asses analyze leadership and its effect on organizational
performance in Mekelle town municipality.
The main objective of the study was to investigate the leadership and its effect on
organizational performance and identify some major problem in leadership and its effect
on organizational performance in Mekelle town municipality.
The data analysis of the study was undertaken using both primary and secondary data
simple random sampling techniques was employed.
The population was sample size 39 from the total number of 65 employees and managers.
Primary data was analysis from distribution of survey questioner from employees and
Secondary data was analysis from different site and related literature.
The data analysis were analysis present interpret by table and percentages
Finally the finding was shows that the relationship leadership and organizational
performance is positively related for organizational achievement.
The recommendation were in this organization the leadership style is bureaucratic style
or this shows job oriented style this is not team leader sprite so it should be democratic
leadership style

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5
TABLE OF CONTENT
Contents Page

Acknowledgement i
Abstract ii
Table of containt
List of table
chapter one
1. Introduction………………………………………………………………………1

1.1. Back ground of the study………………………………………...........................1

1.2 back ground of the organization………………………………………………….2

1.3 Statement of the problem ………………………………………………………...3

1.4 Research question…………………………………………………………………4

1.5. Objective of the study……………………………………………………………..4

1.5.1. General object………………………………………………………………4

1.5.2. Specific objective………………………………………………...................4

1.6. Scope of the Study ………………………………………………………………….4

1.7. Limitation of the study……………………………………………………………….5

1.8 Significance of the study………………………………………………………………5

1.9. Research methodology………………………………………………………………...5

1.9.1. Data type and source …………………………………………………………5

1.9.2. data type …………………………………………………5

1.9.3. Source of data……………………………………..5

1.9.4. Sampling size and techniques ……………………………………...........................5

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1.9.5 Method and proceducer of data collection
………………………………………………………6

1.9.6 Method of data analysis

…………………………………………………………………………………6

Chapter two

2. Literature review………………………………………………………………………7

2.1. Meaning of Leadership………………………………………………………………..7

2.2. Importance and role of leadership……………………………………………………8

2.2.1Importance of Leadership………………………………………………………8

2.2.2. The role of leadership…………………………………………………………8

2.3. Function of Leader………………………………………………………………8

2.4. Theory of Leadership………………………………………………………………..9

2.4.1Trait theory…………………………………………………………………….9

2.4.2. Behavioral theory………………………………………………………………10

2.4.3. Situational theory…………………………………………………………………10

2.4.4 Contingency theory………………………………………………………….......11

2.5. Organizational performance………………………………………………………12

2.5.1. Approach to organizational performance…………………………………12

2.5.1.1. Goal attainment approach………………………………………………12

2.5.1.2. System approach…………………………………………………….......12

2.5.1.3..Strategic constituencies approach………………………………………12

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 2.5.1.4. Computing value approach…………………………………………......13

2.6. Leadership at new environment and organizational effectiveness………………13

2.7. Motivation, punishment versus effectiveness……………………………………14

2.7.1. Leadership characteristics and Behaviors…………………………………15

2.7.2 Leadership behavior……………………………………………………….15

2.8. Leadership style………………………………………………………………….16

2.9. Quality and skill of leadership……………………………………………………18

2.9.1 leadership skill…………………………………………………………………………19

2.10. Communications…………………………………………………………………20

2.11. Channel of communication………………………………………………….......20

2.12. Gender difference in leadership ………………………………………………21

Chapter three ………………………………………………………………………………………

22

3. Analysis and presentation of data………………………………………………….22

3.1 Analysis, presentation and interpretation of questioner and interview……………………..22

3.2 Characteristics of respondents …………………………………………………..22

3.3 interviewanalysis………………………………………………………………..25

Interview analysis reporting relationship in the organization…………………….26

CHAPTER FOUR……………………………………………………………………….38

4 CONCLUSION AND RECOMMENDATION………………………………………38

4.1 CONCLUSION………………………………………………………………………38

4.2 Recommendation………………………………………………………………………39

Reference……………………………………………………………………………….40

Appendix………………………………………………………………………………….41

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List of table pages

Table 1Background of the respondents………………………………………….22

Table 2 Skill, knowledge of leader and communication skill……………………….24

Table.3 skill, quality and ability of leader for organization performance……………….25

Table 4 communication skill………………………………………………………………. 26

Table 5 Communication follows……………………………………………………………27

Table 6 Trust, confidence of leaders and delegates of authority …………………………28

Table 7 Type of leadership style and source of power……………………………………29

Table 8 Interaction of employees, supervisor and leaders………………………………30

Table 9 Relationship between leadership and organizational performance ……………31

Table 10 interaction of leaders and other subordinates for sharing idea…………………..34

Table 11 Role orImportant of leadership for organizational achievement…………………36

Table 12 Problems that do not get incentives………………………………………………….36

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 CHAPTER ONE

1Introduction

1.1 Background of the study

Leadership is lifting of means performance to higher standard sustained effort by someone in

position of authority to achieve certain goal. Leaders were born not make leadership is about the
mix of vision and ability to guide people to insure that they all and meet the objective a system it
is a process of influencing others behavior in organization to accomplishing its goal. They
directed and coordinate the work of employee or group member.
(wichta.kumc.edu/fcm)
Organizational performance can be judged by many different constituencies,
Resulting in many different interpretations of “successful performance”, this dissertation
necessarily examines organizational performance from a single constituency perspective, that of
the common stockholder in for-profit organizations. From this perspective, successful
Organizational performance can be equated with successful value creation for leadership.
It is highlighted that leadership skill most frequently practice are enabling other to act and
challenging the process. Distinguish from the follower by identifying asset of individual
characteristic (Mc manus.2011)
leadership is the ability to influence people towards the attainment of organizational goals
leadership promote vision ,creativity and change in the organization .the role of leadership makes
it significant for solving management problem and solving the problems of quality education as
Catt and miller (1990)says that leadership is the ability to influence the activities
of others through the process of communication toward the achievement of the goal .As a leader
you are expected to influence the effort of workers to achieve goal and it is though
communication that your workers Organization performance is the concept of how effective
organization is achieving the outcome of organization intends to produce. The idea of
organizational performance is especially important for nonprofit organization as most people who
donate money to nonprofit organizations and charities are interested in knowing whether the
organization is effective in accomplishing its goal.

10
Organizational performance capacity brings view to client’s organization by facilitating the
integration and alignment of the business strategy with workable talent management strategy at
the heart of managements.
Organizational performance capabilities is our holistic approach to helping companies build and
align the capabilities process attitude and talent needed to more effectively implement its chosen
strategy(www.Right.com,www.packard.org)
Leadership and organizational performance is look like inseparable for the effective organization.
Leadership has significant impact in organizational performance and bottom line of the
organization. The relation between leadership and organizational performance has been popular
topic of conservation for management theories in recent years. Organization itself doesn’t bring
success. Leadership needed to bring successes and discovery something the attribute of leader
influence entire performance Organization organizational performance consider both means
process and end or outcome organizational effectiveness require awareness and successful
intervention of leadership. Organizations are more about a person doing the evaluation than the
organization evaluation. It is the way to people with job together and defined their role and
relationship is an important determination of organizational effectiveness. To improve
organizational performance leadership have great contribution.
Generally organizational performance and leadership are inseparable terms leaders select
appropriate strategy to improve organizational performance and the plan to modify their
environmental and job to feat the organization effectiveness. Organizational performance is in the
hands of leadership is there is effective leadership and there is no slack organizational
performance.
1.2 Background of the organization
Historically, Mekelle has been established as an urban center in 1869 – 1873. The main factors,
which were believed to be the basis for its establishment, as elders have mentioned it, are stated
hereunder. The town had had a municipality from 1934 e.c onwards. Different sub settlement
areas (suffers) have been established at different time intervals in Mekelle. Some other suffers are
also being established in a spontaneous manner by their own action without being led by a plan
and the knowledge of municipal administration. It is possible to say, the squatter settlements are
the products of such action. As a result of such situation, the settlement areas (suffers) developed
their own characteristics. Throughout the city’s history some of suffers the develop slums and

11
some others, even to the extent that, lose their historic names and positions. Know this
organization is a service giving for the societies. Mekelle town municipality has its mission and
vision of the establishment.
Vision

The vision of Mekelle town municipality is developing available infrastructure and social
service giving for the societies by transparent accountability and efficient provisions. It wants to
see people transform to better way of life style.

Mission

The mission of this organization is avoiding bad working habit or bad working condition
provide efficient and justifiable service to the community it safe good development plan of the
town available environment for housing small business and micro enterprise for commerce and
industry site distribute place it develop financial capacity by collecting income from housing
trade and from tax. Improve active participation of the societies to collect income and improve
infrastructure and equal beneficiary.

At current time the office have 65 employees 12 of them are among the total member of female
and the remain 53 are male .Income collect from the society then transfer to finance then asking
for expenditure again the required budget the hierarchical arrangement of authority
zone ,administrator town sub division of municipality in the town.

1.3 Statement of the problem

Leadership has a crucial role on an organizational performance. It is stepping stone for
organizational performance and for every one business performance.
Leadership has their own style that is people oriented or job oriented.
If it is job oriented style the performance is less effective but if it is people oriented style the
performance is effective.
So leadership must have follow people oriented style to bring effective performance in the
organization. They are evaluated directly and motivate their followers, on the other hand if they
Organizational performance the outcome of effective leadership in the organization.
Follow job oriented leadership style the performance is very low and faced with turnover low job
satisfaction and high absenteeism.

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Therefore the researcher was in need to asses and investigates the major problem facing in
Mekelle town municipality. The major problem in this office is jobbing oriented style and
bureaucratic style.
1.4 Research Question

The main research questions were attempt to address the following questions

1. Is there any relationship between leadership and organizational performance?

2. What kinds of leadership style exist in this office?
3. What is the role of leaders for organizational performance?
4. What is the skill and knowledge of the leader in this office?
1.5 Objective of the study
1.5.1 General Objective

The main objective of this a study was to asses and analyze leadership and its effect on
organizational performance in Mekelle town municipality.

1.5.2 Specific objective

The study was try to cover the achievement of the following objectives these are

 To identify quality and skill of leader in this office.

 To know the role of leader in the organizational performance.
 To know what kind of leadership styles exist in this office.
 To know if there is relationship between leadership and organizational performance.
1.6 Scope of the study
The scope of the study geographically limited to municipality of Mekelle town branch.
Because it is so difficult, it requires much time and huge finance so the study does not
include every branch of municipality like sub city municipality, town, Keble and other
related organizations. The target populations were that the researcher was taken both
employee and manager of the office. The study was conducted only 2006 E.C.

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 1.7 Limitation of the study

The researcher was affected by the following limitations

 Lack of available finance and much experience.

 Lack of related literature
 Shortage of time
 Appointments of managers in the organization (managers busy when for interview).
1.8. Significance of the study

The following was significance of the study for both potential researcher and for office

 It gives firsthand information on leadership and its effect on organizational performance

to the office.
 For potential researcher was guideline for study to conduct and in related area
 It will help for the organization to forward the problem of leadership in the office.
 Finally were provide necessary conclusion and recommendation
1.9 Research Design and Methodology
1.9.1 Data type and source
1.9.2 Data Type
To accomplish this study the researcher was use qualitative data.
1.9.3 Source of Data

Types of data and source

The study has used both primary and secondary data to gather relevant information’s.
Primary data, it was the main data collection types of source .the researcher was interview with
managers and distribute questionnaires to employees.
Secondary data, this data was including source like literatures related with topic and some
Webpages ….etc.

1.9.4Sampling size and technique

The researcher was use simple random sampling method .The reason behind to use this method
is to gather relevant information. So that it was more representative, minimize cost, save time,

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avoid bias and give equal chance for different selected respondents. The population of the study
was current employees and managers of organization; in this case the researcher was taken a
sample of 39 employees from the target population of 65workers given to the following sample
size determination formula.

n =

Where n=sample size

N=population

e=level of error at 90% confidence interval

This shows that 90% of the respondents are correct answer and the remain 10% of probability of
errors might be occurred

1.9.3 Method and procedure of data collection

To conduct this study the researcher was going to use different data collection.

To collect primary data questioners that is open ended, close ended and interview that were
structured and unstructured, Secondary data were collected from reviewing of relevant document
published and unpublished material on related with leadership.

1.9.5 Method of data analyzes

After the raw data were gathered and collected the next step was process the data that analyzed
and interpret by using table and percentage. Finally the investigator was drawn conclusion and
recommendation in chapter four.

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 CHAPTER TWO

2 REVIEW OF RELATED LITRATURE

This chapter addresses the following question on theoretical framework of leadership. These are
what leadership is? What type of leadership style is existing? What are the roles of leader ship in
the organization performance? Which type of theory is more appropriate for modernized or
effective on performance?

2.1 Meaning of Leadership

Leadership is a complex phenomenon it involves the leadership or leader, followers and

situation. It is the process of influencing an organizational group towards for coexistence of the
organization. Roachand Beholding (1984).

The end of leadership involves getting result through other and means of leadership involves
ability to build coercive goal oriented team. It is a process of not position. It is both rational and
emotional. Leadership is asocial influence process shared all member of group. Not restricted to
influence exerted by someone in a particular situation. It includes action influence based on
reason, logic, inspiration and position. It uses rational and emotional technique to influence
followers. Leadership is more associated with risk taking, dynamic, creativity change and vision.
Leaders are value choosing and laden activity performance. Leader are originate, have long term
view, ask what and why, they challenge it, they are innovative, developed and inspire.

Generally leadership is the art of influencing people to strive willingly and towards the
accomplishment group goal. Hersey blancheardjohn son (2001).and Gordon j curpy (2006)

Leadership has to function these are task oriented and person oriented. Person oriented function
required leader to maintain group process and to support individual needs and inspiration.
Whereas task oriented achieved by specifying working activity and work goal of group as a
whole and each individual number of the group.

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2.2 Importance and role of leadership

2.2.1 Importance of leadership

Importance of leadership arises from the following function performed by a leader. These are: -
helping in guiding and inspiring employees towards higher performance and attainment of
organizational goal. Create confidence: leaders crate confidence among employee by his or her
conduct and expression. They mediate between subordinate and higher level management
communicates expectation of the organization to the subordinate problem and grievance of
subordinate to the top management. Helping establishing cordial relation between management
and employee.

Generally leadership have used in motivation develop working group as team act as councilor
and develop and maintain an environment conductive to maximum work effort etc. (George rater
and Stephens g franklin (2006).

2.2.2 Role of leadership

Role of leadership in the organization as follows to secure the involvement and cooperation of
executive in the formation of plan, policy and objective interoperate plan and policy to use direct
guide to influence the level for management towards better performance. Employee to work
cooperatively and towards attainment of organization goal it integrate organization goal. With
personal aspiration of subordinate represent of organization and initiate action keep the
organization dynamic and progressive and play role of friend philosophy and guide the follower
within and outside of the organization.

2.3 function of leader

Taking initiative: - leader has to take initiative to lead business activity. Leader should no
except others to introduce him to take self should come in the field of responsibility and take all
steps to achieve predetermined target.
Reproduction: - a leader is a representative of an organization to workers and out siding they
have big role for production.

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Guide: - a leader has is the capitalism of them the leader should issue instruction and other
whenever. We understand that from the definition of leadership is guiding and influencing other
behavior.

Planner: - it is the main type of activity of leader. It performs and finished by leader integration
and communication: - this two activity of leader is performed by effective leader according to
their performance.

Reward and punishment:- the big role is in the hand of leader are motivated if the subordinate
follows transacting way as well as they punishes as the condition areas at the side of
subordinates(t.rama som y (2003).

2.4 Theory of leader ship

Leadership is crucial ingredient on organizational performance. The first approach is

conglomeration of personality trait. The second one is individual behavior of leader and the third
one is situational perspective.

2.4.1Trait theory

It attempts to isolate the attributes of successful leader and using list of trait, predict the success
or failure of potential leader. Keith Davis has pulled together the following four traits that are
shared by the most successful leaders. These are intelligence, social maturity, inner motivation
achievement arrives and also human relation arrives.

A leadership skill is varying accordingly to the type of work a person performs in the
organization. The trait approach lacks predictive value except in some narrow defined situation.
A leader may employ three different type of skill at

Different level in the organization: that is technical, human and administrative skill.

Generally personal trait theory expressed as follows

 Ability
 Personal trait
 Motivate

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  Supervising ability
 Self-assurance
 Need for occurrence
 Decisiveness
 Occupation achievement
 Initiative
 Masculinity/feminist
 Self-actualization
 Job security
 Maturity
 Working class affinity
 Power over others
 High financial reward

2.4.2 Behavioral theory

Attempt to describe leadership in terms of what leaders do. Leadership accordingly to

behavioral approach result of effective role of behavior shown by a person’s act more that by his
trait according to Michigan emphasis of trait is replaced by the emphasis of behavior which it
could be measured. As Michigan state leader are either employee centered or production
centered behavior. If leader are employee centered trait subordinates as human being show
concern for their wellbeing encourage and involve them in goal setting. If leader are production
centered emphasize technical aspects of job emphasize on work standard close supervision
employee seen as a tool in the production process. Stephan Robbins (2001).

2.4.3 Situational theory

Both trait and behavioral approaches proved to fall short of comprehensive and adequate theory
of leadership style. Situational theory is ``one best way`` style .the theory takes the position that
the variable in each situation must be analyzed before selection of optimum leadership style.
Leadership complex social and inter personal process, and to understand it fully we need to see
the situation in which a leader operate the situational theme of leadership is highly fascinating

19
but is certainly a challenging. Orientation to implement, an effective leader must be flexible
enough to adapt to the different among the subordinate and situation.

Leadership effectiveness depends upon the fit between personality task power attribute and
perception. Situational theory includes four theory these are:-Fielder`s contingency mode,
house`s path goal model, life cycle theory of leadership and vroom`s and yet ton normative
model.

Generally situational leadership theory suggest that the most effective style of leadership
delegating ,participating, sealing or telling depend on the extent to which follower require
guidance direction and emotional support. Most appropriate leadership style depend on the
amount emotional support follower require in conjunction with the amount of guidance they
require to do their jobs. It have four different types of situation are identified. \

These are Upper right corner, upper left corner, lower right corner and lower left corner.

(Richard Hughes, Robert C.Ginnett and Gordon J.Curphy (2007)

2.4.4 Contingency theory

In Leadership theory it is the most known and modernized and effective theory. According to
fielder effective group performance depend up on a proper much between a leaders style of
interacting with subordinate and the degree to which the situation give control influences to the
leader assume that individual leadership style is fixed it require task oriented and relation or
people oriented. Either the

Situation has to be modified or removed and replaced if optimum effectiveness it is too achieved.
There are three dimension of contingency theory these are:-

Leader member relation task structure and power position these three factors that determine the
production concern for people these are:-

 Leader relation with member

 Degree of structure in the task to be performed
 By the leader position and power

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Based on the above factor leader situation control can range from very high to very low. This
low personal control predicted that more effective Stephen p. robins (2001) and gfary yukl
(2006)

2.5 Organizational performance

Organizational performance is the extent to which an organization given certain resource and
means achievement of goals.
It the objective of an organization to mobilize its center of power for action production and
adaption. It is the degree to which an organization attain its short or end and long or means of
goals the selection of which reflect strategic of organization. It is the ability to acquire in put
process and output and maintain stability and balance in the system (khorshed mad on and homt
mc doulel (2001)

2.5.1 Approach to organizational performance

2.5.1.1 Goal attainment approach
When an organization is effective to the extent that it accomplish its stated goal. It is useful when
the approach preferred when organization effectiveness must be appraised in terms of the
accomplishment of end rather than means. When approach is preferred at the side goal are clear
times bound and measurable.
It assume that organizations are deliberate, rational and goal seeking entities
2.5.1.2 System approach
End goal are not ignored but one element in more complex set of criteria acquire resource for
long term survival organization effectiveness require awareness and success of full interaction
with environment constituencies it is uses or functional when clear connecting exit between input
and output.
2.5.1.3 Strategic constituencies approach
All strategic constituencies are at least minimally satisfied. It seeks to appease only those in the
environment who can threaten organization survival. The theory assumes organization are very
differently they assume to be political are where vested interest compute for control over the
resources. Therefore organization

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Performance becomes an assessment of how successful organization is has been at satisfying. Up
on whom for future survival it is the function when constituencies have powerful influence on
the organization and the organization must reopened to demands.
2.5.1.4 Computing value approach
The emphases of the organization is on the four major area matches constituent preference and
have three basic sets of computing value.
One flexibility versus control, the second place emphasis wellbeing and organization people and
development. The third value related to organizational means versus ends former stresses
internal processes and long term and later emphasis final outcomes short term.
It is functionalized the organization is clear about its own emphasis or changes in criteria over
time are interests these the above three set of value can be depicted as three dimensional
diagrams. It combines from eight set of criteria the human relation model defined organizational
effectiveness in terms conserve and skilled work force. Open system model effectiveness in this
model defined in terms of flexibility and acquires resources.
These eight criteria are:-flexibility, accusation resource planning, planning, productivity and
efficiency, ability of information, stability cohesive work force and skilled work force.
Generally organization effectiveness has proven difficult the two dominant position are frequent
antagonists are goal attainment system approach. Organization effectiveness can be the degree to
which an organization attains its short (ends) and long term (means) goal. The selection of which
reflect strategic consistencies. The self-interest of behavior and life stage of organization.
Stephen P. Robbins (1990), Vs. Rao, Psnarayana (1987).
2.6 Leadership at new environment and organizational effectiveness
No question that leadership roles are changing by the new environment and organizational
performance. As one study show that five key role can help managerial success these are
1, strategic vision to motivate and inspire.
2, empowering employee.
3, accumulating and sharing internal knowledge.
4, gather and integrate external environment and
5 change legging the statuesque and enabling creativity.

22
The other study stated that even small business header face a shifting role, move local to global
market follow , seeking innovation, being networker rather than long range and inquisitive and
innovative.
Many young capable new employee activities avoid the prospect of becoming a leader. Because
a header itself idea may be absolute, exhausting a relevant and unfashionable carrier choice. The
value and believe young generation are much different, than those baby boomers in leadership
position. In much of shifting environment leadership activity and effective nesses become
complex and challenging task.
Motivational processes incentive and leadership tacit must be must be modified in tele work
further growing words entirely new kind of leader. Fred luthansa (2005)
Organization performance is by facilitating the interaction and alignment of business strategy
with workable talent. Organizational effectiveness especially important for nonprofit
organizations who donate money to less profit organizations and charity are interested to
accomplish its goal. (www.right.com,www.packard.org)

2.7 Motivation, punishment versus effectiveness

Motivation: - all about getting people to do things. It is an essential part of leadership. It focuses
on follower it is fundamental leadership skill. According to kanfer (1990) motivation is anything
that provide direction, intensity and persistence to the behavior camp bill and Pritchard(1976)
describe motivation choosing an activity or task to engage in establishing the level of effort to
put forth on it and determining the agree of persistence in it over time.

As miller and rollick (1990).motivation is behavior probability. It like Hood an individual will in
it. And continue exhibiting certain behavior by expecting motivation.

 Motivation is either intrinsic or extrinsic if it is intrinsic: - motivate for its own sake for
personal satisfaction increase feeling of competence control one get from doing closely
related to personal value. If it is extrinsic: - variation of fundamental attribution of error
described. It decrease or eliminate error from the system.

23
  Punishment:-administration of aversive event or withdrawal of positive event or stimulus
as arvey and Ivan ceviche (1980) .the use of punishment resulted in undesirable
emotional side effect on part of recipient unethical and rare worked. That is eliminating
undesirable behavior. A scam bell (1977) and Lutherans (1980).punishment is not result
in permanent change in the instead only temporarily suppressed behavior. Generally
subordinate by expecting motivation the performance of activity is more effective.
Fredluthans (2005).

2.7.1 Leadership characteristics and Behavior

Some scholar argued that the leaders personal quality and key charismatic or both charismatics
and transformational leaders and this include the vision and value. Rhetorical skill and ability
To build particular kind of image in the mind of their follower and personalized style of
leadership. Both transformational and charismatic leaders are inherently future oriented.
2.7.2 Leadership Behavior
Leadership behavior can observed it is the way to distinguish between effective and in effective
to look at what they do on a day basis. In terms of leader behavior instead of say personality is
easily measure. Behavior is the sources of personal that value or intelligence. Leadership
behavior is classified in to task and employee oriented. Task oriented behavior focus on careful
supervision of group member to obtain consistent work method and job accomplishment. It
center on initiating structure instead establish well defined pastern of organization of
communication and work procedure between leader and group member.
Employee oriented behavior aim at satisfying the social and emotional need of group member.
The focus on showing consideration to develop friendship mutual interest respect and warmth
in the relationship between leader and member of staff. Generally leader behavior task
structuring showing consideration decision making using power. Leaders` observable behavior it
is directly observables devote great deal of time to structuring and directing task activity. And
also additional to show consideration makes people feel accepted and aware.
Leadership handle power autocratically share power with their power of subordinate and leader
out word behavior with the public face to leadership and directly interpreted with whom the
leader interact.

24
Leadership behavior develop description questionnaire in order to obtain information about the
particular leadership style. Subordinate were asked rate the extent to which their leader
performance like set subordinate know how to done a good job. Leader set a clear expectation
about performance show subordinate concentration as individual makes subordinate feel at ease.
This description question behavior leader could be described in two independent dimension of
behavior called consideration and initiating structuring.
Consideration refers to how much of leader is friendly and supportive towards subordinates.
Whereas initiating structuring how much leader emphasize meeting work goal and
accomplishing tasks.
(Richard Hughes, Robert c Gannett and Godden j.curphy2007).
Leadership behavior will be acceptable to subordinate to the extent that the subordinate or
instrumental for future satisfaction. The behavior of leader will be motivational. It will increase
subordinate effort, make satisfaction for employee, need contingent for effective performance .it
accomplishment of the environment of subordinate by providing coaching ,guidance, support and
reward which are necessary for effective performance of otherwise be lacked in the subordinate.
When the leader attempt to influence subordinate the perception and motivate them and it lead to
role clarity, goal expectancy, satisfaction and performance. All these are accomplished by the
following:-
 Arousing subordinate need for come over which are leader has some control.
 Increase personal pay off to subordinate for goal attainment
 Make the path to these pay off easier to travel by coaching and direction
 Helping subordinate clarity experience
 Reducing frustrating barrier Increase the subordinate opportunity for personal satisfaction
contingent on effective performance.(johnm.ivancrvich and rubbert konopaske 2007)
2.8 Leadership style
The dominant behavior pattern of a leader manager in relation to his subordinate. The two
different leadership styles are most effective indifferent situation the job of leader is to matches
his or her leader style are most effective in most appropriate situation. It depends on the
following factor. These are task structuring, position power and leader member relation. These
two dominant leader ship style are the one task motivated style it used by fielder to describe
leader whose satisfaction come from pride of task accomplished group success in doing a job

25
well. And the second one is relationship motivated style used fielder way of characterizing
leaders who are principally concerned with respect in interpersonal relation and in helping the
group develops as a team.
The above classification further divides in the following classification. That is
Democratic, Autocratic and Lazes-fair or free rain style let discusses one by one
 Autocratic leadership styles
Directive leadership style: - it is similar to that of pipit and whit and authoritarian leader
subordinate know exactly what is expected of them and the leader give specific direction.
No participant by subordinate. Feature of autocratic leadership style centralization of
authority ,centralization of decision making production oriented, no participation of
subordinate ,close supervision use of coercion, litter concern for will being of employee
compels subordinate under threat of penalty.
 Democratic or participative style of leadership

It is human behavior oriented leadership style .the leader asks for and uses suggestion
from subordinate. Participate subordinate in the decision making process and encourages
the subordinates to take initiative in setting goal.
Feature of democratic leadership style:-delegation of authority, participative decision making,
production and employee oriented, allow participation, not support to close supervision, allow
two way communication, concern for employee and creation for favorable climate.
This leadership style have its own disadvantage is delay in decision making, compromise,
dominance for vocal person and no individual responsibility. Lassie fair leadership of
free rain style: - it is a non-leadership style than a leadership style. The leader allow
group member to set their own goal to take decision and implement. The leaders are
friendly Approachable and show a genuine concern for subordinate. Feature of lassie fair
leadership style are as follows give full freedom for subordinate. No guide and rule of
behavior are established for conduct of member. Not directed or direction and inspiration
less this style have some draw back
Does not promote group more, does not direct group member and does not inspire group
member they emphasize neither production nor employee satisfaction and employees are
left to drafting. Generally in decision making of this style is members are participate but

26
 make decision in more of a leader are not effective it is only by group member and have
no supervision on penalty and no reward.
Bureaucracy style
It is one of the common style prevent in government or organization and department. In
this style the function of leader due process and rule, establish routine procedure the
emphasize on activity that achievement took formality, informality and co-formality in
the behavior of the group. Does not encourage initiative innovation and dynamism among
subordinate.
2.9 Quality and skill of leadership
Quality of good leadership should have the following characteristics. These are
 Intelligence: - it is able to examine problems in the right perspective, to take the right
decision at the right time in the interest of the organization.
 Communicative skill: - the leader must be able to communicate clearly, precisely and
effectively. The leader should have knowledge about various types, method of channel
communication in the given situation.
 Objectivity: - the leader should have objective that is free from bias in his dealing with his
subordinate.
 Knowledge of work: - should have full knowledge of the work being performed under his
supervision.
 Human relation: - should have developed and perform coordinative action.
 Self-confidence and win power: - in order to have ability to head required will power to
meet the needs of every situation of by adopting a suitable leadership style.
 Empathy: - In order to look at things from other point of view should have capacity to
appreciate others.
 Sense of responsibility: - it used towards the attainment of organizational goal.
 Awareness and himself: - leader must have to be aware of his strong and weak in relation to
his subordinate. He should know other pensive him as a leader.
 Sound health and stamina:-leader should have sound health both mental and physical,
stamina, balanced temperament and optimistic outlook. gary
Yolks (2006).

27
2.9.1 Leadership skill
The number of technique is suggested for enhancing effectiveness of leadership. It is critical to
success global economy. It is also practitioner it includes the following:
 Cultural flexibility: - it is a critical for success in light of increasing diversity. Leader
must have recognized and celebrate the value of diversity and equality of cultural
mention in the organization.
 Communication skill:-effective leader must be able to communicate in written form,
orally and non-verbally.
 Human resource development skill: - because of human resource is so much part of
leadership effectiveness. Leader must have hard skill of learning and adopting material
and create organizational change.
 Creativity: - leader must possess the skill to not only be creative and assists their people
to be creative.
 Self-management of learning: - it refers to the need for continuous learning of knew
knowledge and skill. Global chaining and competitive be exist Whitten and common
prove identify ten skills. These are verbal communication including listing, managing
time and stress, managing individual decision, recognize define and solve problem,
motivate and influence others vision, self-awareness, team building and managing
conflict. According to robins (1986). Leadership skills are managing conflict, negotiation,
problem solving improve reactivity and team building for work.
Follow up study and related research having fund for skills. These are participative and human
relation, competitiveness and control innovativeness and entrepreneurship and maintain order
and rationality. The foundations of two philosopher skill have three characteristics. These are
Behavioral seems contradictory or paradox, they are enter related and overlapped several cases.
According to Cameron and Whitten perform model of skill. Develop awareness, manage
stresses, and solve problem and creativity. The two philosophers develop model for interpersonal
skill this are communicate supportively gaining power and influence motivating other and
manage conflict. Fred luthans (2005). Richard I. Hughes, Robert c. ginnatt and gorden j.curphy
(2007).

28
According to traditional approaches skill are essential for selection people to feel the managerial
position. Job successful leader are also needs enter personal, cognitive and technical skill. The
relative priority of three skills depends on the nature and challenge of confronting leader.
Technical skill: - knowledge about method procedure, process and to use tools and equipment.
Interpersonal skill: - ability to understand feeling attitude and motive to communicate clearly and
effectively.
Cognitive skill: - concept formation and conceptualization, complex and ambiguous relationship
problem are solving. Gury yulk (2006).
2.10 Communications
The art of developing attaining understanding between people. It is a process of exchange
information and feeling between two or more people. It is essential for effective management. It
is one of the important facilitator of management activity. It is a means not an end. It makes
possible management process and service lubricant for its smooth operation. Effective
communication involves most accurate information sending and receiving it.
Principle of Communications
o It increases organizational rules by subordinate.
o To gain greater commitment to organizational objective.
o It provides data necessarily for decision making
o To clarify task responsibility identify authority. Position and provide accountability for
performance.
Communications have its own objective these are: - information persuasion, education
entertainment, warning, raising moral, suggestion, order, instruction, and advice and
compliant.
2.11 channel of Communication
A. Formula Communication
It focuses along prescribed channels. It follows different direction these are vertical
communication.
That vertical upward and vertical down ward the next one horizontal communication.
Let as discuss one by one vertically down ward if follow from superior of organization to
subordinate and communicate with manager to assistant manager .It follow by step.

29
 Vertical upward: - receive information from top level fallow information step by step. It is
important for receiver of suggestion providing feedback ,create harmony out let for pent up
emotion it projects a carrying image and it ensure accountability.
B. Informal communication
It is internal and formal communication component. People take great pleaser in obtaining
secret information and transmitting to others. It is a normal outgrowth of information
communication between leader and subordinate in the organization. According to supervision
and it is perfectly natural activity when it socializes with the other worker or employees.
Diagonal communication
Cuts across functions and levels in an organization. It is important when the situation of member
cannot communicate effectively through other channel. It is most efficient in terms of time and
through other channel. The communication cannot keep path of communication channel. It is
directly contact top level to lower level no intermediaries are needed.
2.12 Gender difference in leadership
Is gender difference affects organization performance as many writer think women have an
interactive style consisting of more people oriented and perspective on leadership. Women are
more relationship oriented, cooperative nurturing and emotional in their leadership style.
Some observer suggested that women are possibly more participative because the upbringing has
mode them more egalitarian and less status oriented. Some evidence said that women have
somewhat better interpersonal skill than men. Subordinate expect female leader to be more
participative based on their own sex steers type.
Other organization behavior scholar suggested that female leader is evaluated slightly less
favorable than equivalents male leader. This related to sex stereotype biases. When they
traditionally male dominated their position evaluate negatively.
Several recent services show that women are rated higher than men on most leadership
domination.
Including the emergency leadership equivalent of coaching and empowering employee.
Whether women or men are better leader depends on course on individual and on specific
circumstance. At the same time both female and male leader must be defensives to the fact that
follower have how leader should act negatively evaluation may got to leader who deviate from
those expectation. (mc Shane and von glino w (2001).

30
CHAPTER THREE
3. ANALYSISAND PRESENTATION OF DATA

This chapter deals with the analysis and interpretation of the finding of the study. Thus the
researcher tries to analyze and discuss the data that collected from respondents.

The sample size to collect the data from employee was 39 from the total population of 65
permanent employees so the researcher has taken 39 samples and to distribute questioner for 39
employees and interview with manager. So the researcher collect the questioner from those
respondents that analysis and interpretations are conducted in the following.

3.1 Analysis, presentation and interpretation of questioner and interview

Table 3.1.1Background of the respondents

Item Sex Respondent Percentages%

1 Male 32 82%
Female 7 17.9%
Total 39 100%
Item Age Respondent
2 18-30 years 23 58.9%
31-43years 13 33.3%
44-55years 3 7.6%
Total 39 100%
Item Educational back Respondent
ground
3 Certificate 1 2.5%
Diploma 4 7.6%
BA degree 32 82%
Master 2 7.6%
Total 39 100%
Item Year of service Respondent
rendered

31
4 0-5 26 66.6%
6-10 7 17.9%
11-15 4 10.25%
Above 2 5%
Total 39 100%
Source: research 2014

Based on the above table 3.1.1 item 1 show that from the total population of 39 respondents 32
of them were male and the remaining 7 respondents were female. This indicates that female
participants are dominated by male and the numbers of female are less by more than 4 times.

Item 2 show that the age distribution of respondent and the majority of the respondent were
found between 18-30 years. This indicates that majority of employees in this organization were
adult and matured.

Item 3 shows that the educational background of the respondent and majority of the respondents
have BA degree qualification. This indicates that no more certified and masters.

Item 4 shows that year of service render employees in this organization majority of the
respondents have below 5 years rendered.

This indicates that they have less experience, short time elongation in the organization and
experienced workers were very little which compared to have below 5 years giving service.

32
 Table 3.2 Skill, knowledge of leader and communication skill

Item Respondent Percentages %

1 Does the leader possess the Yes 30 76.9
skill and knowledge needed to no 9 23
lead the organization?
Total 39 100
2 What problems does she/he
have faced within the
organization?
 Leaders follows 6 20
Bureaucratic leadership
and they can’t lead
effectively and
efficiently the
organization.

 Leaders are not think 12 40

employees are a part of
team rather than
subordinates

 Leaders are not 8 26.6

expertise

No reason 4 13.3
Total 30 100
According to table3.2 item 1 shows that the skill and knowledge of leader needed to leading for
organization. Thus30 (76.9%) of the respondents responded their skill and knowledge needed for
leading of the organization, on the other the rest of 9 (23.9%) of the respondents responded that
their leader does not possessed skill and knowledge needed leading in the organization.

33
Then it is possible to conclude that Mekelle town municipality leaders to possessed skill and
knowledge needed leading the organization.

Item 2 indicate that employee he/she have the reason why the problem faced with that the
organization among 30 respondents 12(40%) of respondents said that their Leaders are not
think employees are a part of team rather than subordinates, 8(26.6%) of the respondents respond
that their leaders are not expertise by their job, 6 (20%) of the respondents responded that their
leaders are follows that Bureaucratic leadership and they can’t lead effectively and efficiently the
organization with employees and 4(13.3%) of the respondents responded that have not reason.
Since it possible concludes that the leader of this organization has not think employees are a part
of team rather than subordinates (not give chance for participation or discussion for the issues
that they concern

3.3 Interview Analysis

What are the constraints that affect leadership in this organization?

According to the informant the constraints or the challenges in this organization are lack of
equipment or material, finance (shortage of budgets for financing the planed infrastructure
development) and some extent shortage of human skill and qualities which means in sufficient
management systems occurred.

Table 3.3 skill, quality and ability of leader for organization performance

3 How to evaluate the skill Choice Respondent Percentage

quality and ability of Excellent 1 2.56
your leader and Very good 8 20.5
organizational Good 18 17.9
performance? Average 7
Poor 5 12.8
Total 39 100
Sources survey 2014

Item 3 indicates employees that evaluates the skill, quality and ability of your leader and
organizational performance among the 39 respondents 18(46%) of said good,8(20.5%) of said

34
very good,7(17.9%) of said average ,5(12.8%) of said poor and the rest of 1(2.56%) of the
respondents are said excellent.

There for it is possible concludes that the skill, quality and ability of leaders in the Mekelle town
municipality have most probably well.

Table 3.4 communication skill

4 Do the leaders Respondent

possess good Yes 26 66.6
communicatio No 13 33.3
n skill?

Total 39 100
Item 4 indicates that the leaders possessed good communication skill? Thus among 39
respondents 26(66.6%) of the respondent said yes and the rest of 13(33.3%) of the respondent
said does not have good communication skill.

So that it possible concludes Mekelle town municipality leaders have more communication skills
majority of the respondent agree effective communication is needed.

3.5 Interview analysis reporting relationship in the organization

The reporting relationship between subordinates and employees according to the informant
the general reporting system is direct relationship which means upward and downward system it
is organizational procedure implementation it is from top executive and the executive evaluate
and identify weakness and strength of performance the reporting system are daily weekly
monthly meeting and written in documented after reporting at lower level of management
corrective measure takes place for the next time by initiating strength.

So the reporting relationship is upward and down ward in this organization.

35
 Table 3.5 Communication follows

5 Types of Respondent Percentages

communication flow
in this organization

Vertical 9 23
communication

Horizontal 10 25.6
communication

Horizontal and 12 30
vertical
communication

Diagonal 3 7.6
communication

All 5 12.8

Total 39 100

Sources survey research 2014

As the table shows that 12(30%) of the respondents respond horizontal and vertical
communication, 10(25.6%) of horizontal communication, 9(23%) of vertical communication,
5(12.8) of all and 3(7.6%) of diagonal communication is being used.

There for this indicates that in the Mekelle town municipality leaders and employees used
horizontal and vertical communication system.

36
Table 3.6 Trust, confidence of leaders and delegates of authority

6 Item Respondent Percentage

Does the leader Yes 17 43.6

show trust and
No 22 56.4
confidence among
subordinates?

39

Total 100

7 Item Respondent Percentages

Does the 33.4

leader delegates
his/her authority to Yes 13
subordinates so as No
to improve or 26 66.6
enhance
organizational
productivity?

Total 39 100

Sources survey research 2014

From the table3.6 Item 6 shows that among 39 respondents 22(56.4%) of responded that leaders
are not trust confidence among their employees and the rest of 17(43.5%) of respondents have
said the leaders are trusted and confidential among their employees.

This indicates that this organization leader is not trusted and confidential among their employees
Item 7 shows that among 39 respondents 26(66.6%) of responded that leaders have not delegate

37
their authority for their employees and on the other hand the rest of 13(33.3%) of respondent
responded that leaders are delegates their authority for their subordinates to increase
organizational productivity.
Since Mekelle town municipality leaders have not to delegates their authority for subordinates in
order to increase organizational productivity.
Table 3.7 Type of leadership style and source of power

8 Item Respondent Percentage

What types of leadership style exist in your

organization?

Autocratic style 2 5

Democratic style 15 38.4

Bureaucratic style 22 56.4

If others specify - -

Total 39 100
9
Item Respondent Percentage

What source of power does a leader have you think to

influence its followers?

Legitimate power 12 30.7

Coercive power 11 28

Expert power 13 33.3

Referent power 3 7

Total 39 100

Sources survey research 2014

Based on the table 3.5 Item8 indicates that 2(5%) of the respondents responded that bureaucratic
leadership style exist, 15(34.4%) of democratic leadership style, 22(56.4%) of Bureaucratic style
and none of them others are in this organization

38
Therefore it is possible to conclude that the leadership style exist in this organization is
Bureaucratic style.

Item 9 shows that the respondents respond that 12(30.7%) of legitimate power, 11(28%) of
coercive power, 13(33.3%) of expert power and 3(7%) of referent powers are leaders influence
employees.

So it is possible that conclude this organization uses to influence employees by expert power
rather than other powers.

39
 Table 3.8 Interaction of employees, supervisor and leaders

10 Item Respondents

In number In percentage

Is an interaction among employees, Yes 30 76.9

supervisor and leaders?
No 9 23

Total 39 100

11 If your answer is yes how do you

rate level of interaction?

Very smooth 3 10

Smooth 20 66.6

Rough 5 16.6

Poor 2 6.6

Total 30 100

Sources survey research 2014

According to the table 3.6 Item 10 shows that the interaction with leader, supervisor and
employees are responded 30(76.6%) of interacting and the rest of 9(23%) of respondents are said
not interacting with leaders, supervisors and employees

There for it conclude that in this organization there are interactions of each other’s such as
employees, supervisor and leaders

Item 11 shows that among 30 respondents 3(10%) of the responded very smooth, 20(66.6%) of
smooth, 5(16.6%) of rough and 2(6.6%) of the respondents are responded.

So it possible to generalize that the level or rate of interaction in this organization is smooth.

40
Table 3.9 Relationship between leadership and organizational performance

1 Item Respondent
2
In number In percentage

What do you think the relationship Positive 28 71.7

between leadership and organization
Negative 11 28.3
performance?

Total 39 100

1 Item Respondent Percentage

3

Does the leader give incentives to Yes 22 56.4

enhance employee performance?
No 17 43.5

Total 39 100

1 If your answer is yes how the leaders is

4 interested to enhance employee
performance?

By motivating rewarding for who 3 7.6

perform well and give training and
development for the weak

By giving equal opportunity for all 6 27.2

employee

41
 By giving position and power for who 2 5
have good performance and punish
until turn out or turnover

By compute each employee in their 11 50

performance

Total 22 100

Source survey research 2014

According to the table 3.8 Item 12 shows that the relationship between leadership and
organization performance is responded that among 39 of respondents are 28(71.7) of responded
said positive relationship and the other 11(28.3%) of responded that there is no relationship
between leadership and organization performance.

Therefore it is possible to conclude that the relationship between leadership and organization
performance is positive they are not separate each other for achievement or success of any
organization in real world.

Item 13 shows that among 39 respondents are 22(56.4%) of responded that the leader give
incentives to enhance employee performance whereas the rest of 17(43.5%) of responded that
leaders does not give incentives to enhance employee performance.

Since it is conclude that in this organization leaders are given incentives to enhance employee
performance according to the responded giving incentive for employee it is important for
enhance employee performance

3.10 Interview Analysis

42
Factors that affect employee performance in this organization is as mangers said that are
shortage of equipment, shortage of time management of employee shortage of skilled and
qualified employees which are restrict of performance. There is also unsatisfied salary payment,
allowance absence of house and transportations are affect employees’ performance so those are
limiting the performance of organization.

Item 14 shows that among 22 respondents 3(7.6%) of responded that By motivating rewarding
for who perform well and give training and development for the weak, 6(27.2%) of responded
that By giving equal opportunity for all employee, 2(5%) of responded that By giving position
and power for who have good performance and punish until turn out or turnover and 11(50%) of
responded that By compute each employee in their performance.

So that it is possible to conclude that leaders in this organization interested or used enhance
employee performance majorly employ or apply compute each employee in their performance.

Interview analysis

How to enhance increase employee performance according to informant change the attitude
of employees for awareness how to achievement their responsibility

To access of equipment or to give access material like machinery in the sector office and training
different skill and short course that will be qualified.

How to motivate your employees in your office according to informant mainly the motivating
system is performance appraisal A, B, C, D rank system and give the reward for to show higher
performance and rank those rewards are given twice for a year for well performance and once in
a year for to show low performance and give training for weak performed employee prepare face
to face discussion employee with leader and prepare ceremonial programs for motivation
employees.

Table 3.10 interaction of leaders and other subordinates for sharing idea

15 Item Respondent

In number In percentage

Does your leader interact with other Yes 23 58.9

subordinate for sharing of ideas?

43
 No 16 41

1 Total 39 100
6
If question no”15” is yes in what way you
interact with other subordinate in your
organization?

By sharing of idea to lower level of 10 43.4

management

By sharing of idea to individual employee 7 30.4

By taking individual and group opinion of 6 26

worker

Making smooth relationship among 5 21

employee and management group as well as
individual and group

Total 23

Source survey data 2014

Based on the table Item 15 shows that among 39 respondents 23(58.9%) of responded their
leaders interact with other subordinate for sharing of ideas and on the other the rest of 16(41%)
of respondents said their leaders does not interact with other subordinates for sharing idea.

Thus it is conclude those Mekelle town municipality leaders have interact with other
subordinates since according to respondent this is more important for achievement of any
organization.

Table 3.11 Role orImportant of leadership for organizational achievement

44
 17 Item Respondent

In number In percentage

In your organization the importance of

leadership is to get or used to achieve for?

Individual achievement only 6 15.3

Group achievement only 8 20.5

Organizational achievement only 7 17.9

Individual, group and organizational 17 43.5

achievement

Total 39 100

18 Is there any reward or incentives you get Yes 22 56.4

from your leader office?
No 17 43.5

Total 39 100

Sources survey data 2014

Based on the table Item 17 the importance of leadership in the organization shows that among
39 respondents 6(15.3%) of responded that Individual achievement only, 8(20.5%) of responded
Group achievement only, 7(17.9%) of responded Organizational achievement only and that
17(43.5%) of responded Individual, group and organizational achievement.

Then after it can conclude that importance of leadership in the organization is mainly applicable
for Individual, group and organizational achievement.

45
Item 18 shows that among 39 respondents 22(56.4%) of responded they get reward or incentive
from their leader office or organization and the other 17(43.5%) of responded that they have not
get any reward or incentives from your leader office.

So that in this organization the majority of employees has got rewards or incentive from their
organization.

46
 Table 3.12 Problems that do not get incentives

19 Item Respondents

Reasons In number In percentage

If question no ‘’18’’ is no Employees are not effective for

why not get incentive and expected incentive or rewards and
what is the problems? leaders are not interesting to give 3 17.6

Please explain the reason

The selection or appraisal is not fair 9 52.9
for incentives in the organization.

The connection or communication 5 29.4

between leaders and employees are
not effective or good.

Total 17 100

Sources survey data 2014

Based on the table 4 Item 19 shows that among 17 respondents 3(17.6%) of responded that
Employees are not effective for expected incentive or rewards and leaders are not interesting to
give, 9(52.9%) of responded that The selection or appraisal is not fair for incentives in the
organization and the rest of 5(29.4%) of the respondents are responded that The connection or
communication between leaders and employees are not effective or good.

Therefore Mekelle town municipality leaders are not give incentive for their employees perfectly
due to unfairness selection or appraisal for incentive.

47
 CHAPTER FOUR

4.1 CONCLUSION AND RECOMMENDATION

4.1.1 CONCLUSION

The main intent of this research is assessment of leadership and its effect in the organizational
performance. The general finding of the data presented and analyzed in chapter three.

Based on the given investigation made the following conclusion were identified or drawn.

 The majority of employees are in this organization is shows that female participation is
less in this organization.

48
 The operation workforce those who work in the organization are young age group (18-
30) years. Most of them have first degree qualification and next diploma qualification
majority of workers have below five (5) year service render.
 The majority of leaders in this organization are possessed of good skill and knowledge
 As shown from the finding the role of leaders in the organization performance very
essential so that the role is bench mark of organizational performance.
 On the other hand less proportional leaders faced with problem related with skill and
knowledge such as they follow bureaucratic style and not expertise.
 The evaluation shows that it has good skill and knowledge of leaders in the organization
for organization performance.
 The leaders in this organization have effective communication and more it is vertical and
horizontal communication are apply.
 Leaders have not delegate their authority for their employees in order to increase
organizational performance.
 The leaders are not more trusted and confidential in their employees and delegate their
authority for employees.
 The leadership styles that apply in this organization are bureaucratic style which is not
applicable for team leaders.
 The source of power that employs to influence employees in the organization is use
expert power rather than other powers.
 The interaction of leaders, supervisors and employees are smooth in the organization.
 The relationship between leadership and organization performance is strong positively
related or it can be said inseparable for achievement of organizational performance.
 Leaders have given motivational incentives for enhance employee’s performance and in
order to achieve organizational performance.
 When leaders want to select their employees for incentive and reward they apply
compute each employee in their performance
 The leaders of MekelleTown municipality have good relation or interact with other
organization leaders and supervisors for organizational performance.
 The importance of leadership for organizational performance is very crucial so it could
get for Individual, group and organizational achievement.

49
  According to the data employees have got incentive or rewards from the organization
based on their performance.
 Generally leadership have direct relationship with organizational performance the two
things are inseparable it could be the side coin in the organization
 The assessment of the leadership and its effect in this organization more or less it is good
4.2 Recommendation
Based on the findings the following recommendation is suggested to improve leadership and
organizational performance in the organization.

More or less the condition of this organization performance is good but some points to consider
for the next performance as indicated from the findings the positive things should have been
continues by this conditions for long periods and on the other hand weakness or negative things
should have improve by the following recommendations.

 The number of female participants are less so the organization is give opportunity for
train and education further development and minimize the gap between female and male
employees in developed countries the participation of female for organizational
development is very essential so this organization should apply this condition.
 The majority of employees educational qualification is BA degree this not enough for the
organizational performance so the organization should improve this things or to give
educational opportunities such as master and above.
 In developed organization team sprite is very important so for this case leaders have main
role in order to delegate their authority their employee and subordinates to increase
organizational performance so leaders should delegate their authority for employees.
 Trust and confidence is very important in any time, place and organization since Leaders
must be trusted and confidential in their employees otherwise it is not achieve what they
want in the organization.
 Into days service organization in the world needs discussion and team achievement or
they need more decision for this reason democratic leadership style is appropriate but in
this organization leadership style is bureaucratic. So it must be democratic because it
should be more team leaders .bureaucratic is not team sprite rather than book approach
system.

50
  Leaders follow job oriented task this is not achievable or important so leaders should be
more focus people oriented rather than job oriented.
For the purpose of achievement interaction is very important so that The interaction
between employees, supervisor and leaders should be very smooth for better performance
and better team achievement in organizational performance rather than smooth
interaction
 Generally the effect of leadership for organization performance is very important in the
real world so leaders, employees and subordinates should aware of this condition in the
reality.

REFFERENCE

A vat web leadership research organizational effectiveness discovering www.com/thougt leadership.

Fred luthans (2005).organization theory and behavior (2ND ed.) monarch Publisher Company

GARRY YUKL. (2006).Leadership in organizations (6THEd) upper saddle river.

Geerge Jerry and STEPHN G FRANKLIN (2006).principle of management (8 ThEd).

AITBS Emory University

Gordon J.curphy, Robert C.Ginnet, Richard (2007). Leadership: enhancing the lesson of experience
(5ThEd)

Gregory Moorhead and Ricky w.Griffin (1995). Organizational behavior: managing of people and
organization. (4THEd) Thought ton Miff in company Boston Company.

Khorshed DP Modon and Homat McDowell (2001).office administrationand management.

51
(10THed).Vikas publishing.

Mary Ann von glinow StevenL.Mc Shane. (2005) organization behavior: emerging area for work place
Revolution. (3rdEd). Mc Grow. Hill.

Michale T. Mattson.Robbert konopt ske and john M.IVANCEVICH (2005).

Organizational behavior and management (7thEd) .Mc grow hill IR win.

Mukesh chaturvedi and pdhatturevedi (2004) business communication: concept, cases and application
pear son education signature Idea.

T. Ramas wamy (2003) principle of management (3rdEd). Himalaya publishment house press printed
company.

Fred Luthans (2005).organization Theory and behavior (second edition) .Konark Publisher
Company

GARRY Yulk. (2006).Leadership in the organization (six editions) upper saddle river.

Gordon J.curphy, RobertC.Ginnet, Richard (2007) enhancing the Lesson of experience (fivth
edition

(www.Right.com, www.packard.org

52
 Appendix
MEKELLE UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTEMENT OF MAMAGEMENT

Questionnaire to be filled by Mekelle town municipality employees.

Dear respondent

The significance of this questioner is to collect data on the assessment of leadership and its
effect on organizational performance.

Thanks in advance for your cooperation

53
Instruction

 No need of writing your name, address and marital status

 For close ended question make ‘‘X`` symbol on space provided
 Write your explanation for open ended question on the space provided

Part one

General information(Background of Respondents)

1. Sex male female

2. Ages 18-30years 31-43years 43-56years

3. What is your educational status Certificate

Diploma BA degree Master and above

4. Year of service <5years 6-10 years 11-15 years >15years

Part two

Item related to effects of leadership on organizational performance.

1. Does the leader possess the skill and knowledge needed to lead the organization?

Yes No

2. If question ``1`` is no what problems does she/he has faced with?

………………………………………………………………………………………………………
………………………………………………………………………………………………………

3. How to evaluate the skill quality and ability of your leader and organizational performance

Excellent very good Good average poor

4. Does the leaders possess good communication skill? Yes No

5. What type of communication flow is being used in your office?

Vertical communication Horizontal communication

Horizontal and vertical communication Diagonal communication All

6. Does the leader show trust and confidence among subordinate? Yes No

7. Does the leader delegates his/her authority to subordinates so as to improve or enhance

organizational productivity? Yes No

54
8. What type leadership style exists in your office?

Autocratic style Democratic style

Bureaucratic style If other specify………………….

9. What source of power does a leader have you think to influence its followers?

Legitimate power Coercive power Expert power Referent power

10. Is there an interaction among employees, supervisor and leader? Yes No

11. If your answer is yes how do you rate level of interaction?

Very smooth smooth Rough poor

12. What do you think the relationship in between leadership and organizational performance?

Positive relationship Negative relationship

13. Does the leader give incentives to enhance employee performance? Yes No

14. If your answer is yes how the leader is interested to enhance employee performance?

By motivating rewarding for who perform well and give training and development for the
weak

By giving equal opportunity for all employee

By giving position and power for who have good performance and punish until turn out or
turnover

By compute each employee in their performance

15. Does your leader interact with other subordinate for sharing of ideas? Yes No

16. If question no”15” is yes in what way you interact with other subordinate in your
organization

By sharing of idea to lower level of management

By sharing of idea to individual employee

By taking individual and group opinion of worker

Making smooth relationship among employee and management group as well as

individual and group

17. In your organization the importance of leadership is to get or used to get……………………..

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 Individual achievement only

Group achievement only

Organizational achievement only

Individual, group and organizational achievement

18. Is there any reward or incentives you get from your leader office? Yes No

19. If question no ‘’18’’ is no why not get incentive and what is the problems?

Please explain the reason

………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
……………………………………………………………………………………………

Part three:-

Item that related to effects of leadership on organizational performance.

Interview with vice manager

1 what is the factors that affects employee performance in your organization?

………………………………………………………………………………………………………
………………………………………………………………………………………………………

2. How to motivate your employee in your office?

………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………

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3. What look like the reporting relationship between subordinates and employees?

………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………

4. How to enhance increase employee performance?

………………………………………………………………………………………………………
………………………………………………………………………………………………………
……………………………………………………………………………………………………

5. What are challenges or constraints that affect leadership in this sector of office?

………………………………………………………………………………………………………
………………………………………………………………………………………………………
…………………………………………………………………………………………………

57