Marta Birhanu Final 1

ADMAS UNIVERSITY
Faculty of Business
Department of Business Management
THE ROLE OF LEADERSHIP STYLE ON EMPLOYEE MOTIVATION IN THE CASE

OF AMHARA BANK HEAD OFFICE
A SENIOR ESSAY RESEARCH SUBMITTED FOR THE PARTIAL FULFILLMENT

FOR THE AWARD OF BACHELOR OF ART DEGREE IN BUSINESS
MANAGEMENT
By
 Marta Berhanu
 Nebiyu Gizaw
 Robel Azemeraw
 Selam Tadesse
 Wubesht Adisu
 Yohanan Samuel
Advisor: Bereketab A.
Addis Ababa, Ethiopia
July 2023
Contents
Acknowledgment.................................................................................................................II
DECLARATION.....................................................................................................................III
CHAPTER ONE......................................................................................................................1
1. Introduction....................................................................................................................1
1.1 Background of the Study...............................................................................................1
1.2 Background of the Organization...................................................................................1
1.2.1 Mission and Vision of the Organization.....................................................................2
1.3 Statement of the Problem..............................................................................................2
1.4 Research Questions.......................................................................................................3
1.5 Objective of the study....................................................................................................3
1.5.1General Objective.......................................................................................................3
1.5.2 Specific Objective.......................................................................................................3
1.6 Significance of the Study...............................................................................................3
1.7 Scope of the Study.........................................................................................................4
1.8 Limitations of the Research..........................................................................................4
CHAPTER TWO................................................................................................................5
2.1 Theoretical Review........................................................................................................5
2.1.1 What is a leadership theory?......................................................................................6
2.1.2 Different Types of Leadership Styles.......................................................................12
2.2 Empirical Literature...................................................................................................14
2.3 Conceptual review.......................................................................................................15
CHAPTER THREE..........................................................................................................17
Methodology.....................................................................................................................17
3.1 Research Method.........................................................................................................17
3.2 Source of Data.............................................................................................................17
3.3 Data Collection Instrument and Procedures...............................................................17
3.4 Sample Size Determination Technique.......................................................................17
3.5 Methods of Data Collection.........................................................................................18
3.6 Method of Data Analysis.............................................................................................19
I
CHAPTER FOUR............................................................................................................20
CHAPTER FIVE..............................................................................................................52
Reference...........................................................................................................................54
Appendix...........................................................................................................................55
II
Acknowledgment
First and foremost we would like to thank our God, and next to that we would able to thank
many people who have helped us in the writing of the research. We would like to extend our
heartfelt appreciation to our advisor Bereketab (MBA), for his constructive comments, valuable
suggestions, professional assistance and dedication of his time in reading and correcting the
paper. It has helped us to improve the quality of our research.
Next, we would like to thank our families for their unlimited encouragement and support
throughout the course years and research work.
Finally, Special thanks to the Amhara Bank staffs and respondents for their kind assistance and
support throughout the data collection process of this research.
III
DECLARATION
We have carried out independently a research project on the topic entitled “THE ROLE OF
LEADERSHIP STYLE ON EMPLOYEE MOTIVATION IN THE CASE OF AMHARA
BANK HEAD OFFICE ” in partial fulfillment of The Award of Bachelor Of Arts Degree in
Business Management and support of the research advisor Bereketab A. (MBA).
We undersigned declare that this students Research paper is our original work and all the
materials used for this study have been acknowledged.
Name of students Signature
 Marta Berhanu
 Nebiyu Gizaw
 Robel Azemeraw
 Selam Tadesse
 Wubesht Adisu
 Yohanan Samuel
Date
The students’ research paper has been submitted or examination with our approval as a
university advisor.
Name of advisor: _________________________
Signature _______________________________
Date __________________________________
IV
CHAPTER ONE
1. Introduction
1.1 Background of the Study
Leadership styles refer to the behavioral approach employed by leaders to influence, motivate,
and direct their followers. A leadership style determines how leaders implement plans and
strategies to accomplish given objectives while accounting for stakeholder expectations and the
wellbeing and soundness of their team.
Leadership styles have been studied to establish the appropriate or most effective leadership style
that motivates and influences others to accomplish set goals. The major tenet of effective
leadership style is the degree to which it builds follower trust.
Studies carried out indicate that followers who trust in their leader are more likely to follow
through with the leader’s instructions over and above the expected. In turn, they will accomplish
set goals while being allowed to speak freely to air their ideas and suggestions on the direction of
the projects at hand.
The leadership styles discussed in this article is based on studies and findings by several
accomplished leadership researchers, which include Robert K. Greenleaf, Karl Lewis, Daniel
Goleman, Bruce Avolio, and Bernard M. (CFI, 2022)
1.2 Background of the Organization
Amhara Bank aims to use the enabling conditions to provide an excellent service that appeals
to the ever-diversifying and growing needs of customers that are demanding more from banks
in the form of personalized and competitive banking services. The Bank intends to provide a
secure, responsive, dynamic, and conducive banking atmosphere to customers with a
commitment to values and unshaken confidence, deploying the best technology, standards,
processes, and procedures where customer convenience is our significant importance to
increase the stakeholders' value. The banking industry is considered as one of the most
significant drivers in strengthening the soundness of an economy in terms of investment, job
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creation, facilitating the circulation of funds nationally and globally. Similarly, Amhara Bank
will play its part in facilitating savings, investment, job creation, economic growth, and is also
enthusiastic in discharging its Corporate Social Responsibilities . Amhara Bank is a share
company with more than 191,000 shareholders contributing birr 4.8 billion in paid-up capital
and birr 7.9 billion in signed capital. The bank’s ability to work together to develop a
successful business venture and commercial bank service is reflected in its diversified
ownership.
1.2.1 Mission and Vision of the Organization
Vision
To be Leading and game changing bank in Africa
Mission
To provide a wide-ranging, accessible, reliable and innovative financial and nonfinancial

solutions through state of the art technology by competent and ethical professionals in a
socially responsible manner with a client oriented culture.(About Amhara Bank, 2022)
1.3 Statement of the Problem

There are several leadership style problems in Ethiopia that have hindered the country's growth
and development. One of the main issues is the prevalence of authoritarian leadership styles.
Ethiopia has a history of strongman politics, where leaders rely on their authority and power to
make decisions without consulting or involving their constituents. This has led to a lack of
transparency and accountability in government, as well as limited citizen participation in
decision-making processes.
Another problem is a lack of visionary leadership. Although Ethiopia has made progress in
various areas, such as infrastructure development, the country has yet to develop a clear long-
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term vision for its future. This requires a leadership style that is forward-looking and strategic,
rather than reactive and short-sighted.
Additionally, there is a lack of diversity in leadership, both in terms of gender and ethnicity.
Women and minorities are underrepresented in government and decision-making positions,
which limits the perspectives and experiences that are brought to the table.
To overcome these leadership style problems, Ethiopia needs leaders who are democratic,
inclusive, and visionary. This requires a shift away from authoritarianism and towards more
participatory, transparent, and accountable governance. It also requires a focus on developing
diverse leadership pipelines and creating opportunities for marginalized groups to participate in
decision-making processes. With the right leadership style, Ethiopia can overcome these
challenges and achieve its considerable potential
1.4 Research Questions

1. Which leadership styles are most commonly used by employee working in Amhara Bank
head office?
2. What is the current status of employees’ motivation in Amahara Bank head office?
3. What is the relationship between leadership styles with employees' motivation In Amhara
Bank head office?
1.5 Objective of the study

1.5.1General Objective
The objective of this research is to understand the different ways in which leaders can influence
employee motivation and productivity.
1.5.2 Specific Objective

 To assess the common leadership style applied at Amhara Bank head Office
 To examine the relationship between transformational leadership and employee
motivation.
 To determine the relationship between transactional leadership and employee motivation.
 To investigate the relationship between laissez faire leadership with employee motivation
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1.6 Significance of the Study
The purpose of this study is to provide some assistance to the management of a main office of
Amhara Bank of Ethiopia in order to improve their awareness and understanding of Leadership
styles on employee motivation, as well as how to overcome the challenges of implementing
Leadership Styles to meet how to Motivate the employees by Using Leadership styles which is
important for building a good Environment as well as a good communication in the Working
area relationship which leads to development and improvement of the organization. And also it
focuses on different kinds of leadership styles and how we implement these kinds of Leadership
styles and how we make employee motivation in order to increase the productivity of our
organization and makes a good relation among employees and other staff.
1.7 Scope of the Study

This study will include the staff’s members and also different department heads who work in
head office. The study will also include management bodies like chief directors, managers,
senior officers, officers, junior officers, who works in Amhara bank head office that is found at
Legehar.
1.8 Limitations of the Research

Amhara Bank S.C is a newly founded bank that has been authorized by the National Bank of
Ethiopia (NBE) to begin selling its shares to the public. Amhara Bank has opened more than 100
branches in AddisAbeba, so the first limitation will be we can't cover all branches which are
found in AddisAbeba There are also time limitations to sufficient data collection and analysis
1.9 Organization of the Paper
This research proposal consists of three chapters the first chapter includes background of the
study, statement of the problem, objective of the research, research question, scope, limitation
and significance of the study and definition of terms. In the second chapter the paper discusses
the core idea and gets further information from a different perspective and various approaches on
the basis of theoretical literature and empirical review with additional and elaborative statement
about the topic. The third chapter takes account of the research design, sample and sampling
techniques, data collection methods, method of analysis. And finally it includes the schedule of
the work plan and cost break down.
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CHAPTER TWO
2.1 Theoretical Review

Leadership is the ability to guide or direct a group of people towards a common goal. A leader
can be a manager, supervisor, or even a team member who takes charge and influences others to
work effectively and efficiently towards the organization's objectives. Effective leadership
involves inspiring and motivating others, creating a positive work environment, and making
sound decisions.
Leadership styles refer to the approach or method used by leaders to exercise their leadership
role. There are several styles of leadership, including authoritarian, democratic, bureaucratic,
transformational, transactional, and laissez-faire. These styles are often influenced by the leader's
personality, experience, and the situation at hand.
Leadership type refers to the kind of leader a person is, based on their traits and characteristics.
There are different types of leaders, including charismatic, visionary, servant, authentic,
situational, and task-oriented. These leadership types are often based on the leader's personality,
values, and beliefs. Or A leader is one who knows the way, goes the way, and shows the way” –
John C Maxwell (BLOG/LEADRSHIP, 2022)
“A leader is one who knows the way, goes the way, and shows the way” – John C Maxwell
There are multiple types of leadership styles such as Democratic, Bureaucratic, and Autocratic.
Choose the type of leader you want to become. If someone asks you, ‘what is leadership’, what
would your answer be? Think carefully before you answer because it will reveal what kind of a
leader you are or want to be, and the leadership styles you want to undertake going forward.
Leadership theories and styles.
Every company, no matter what industry they’re a part of or how big they are, needs good
leadership to be successful. Good leaders are a vital part of effective business practices. And for
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most, being a good leader doesn’t come inherently. That’s why there is entire degree programs
dedicated to management and helping students become great leaders in their business.
In the world of leadership there are many theories about how leadership works, what makes good
leaders, and how to be effective. There are many leadership styles that managers can employ and
their impact varies based on the group they are leading and the industry they are in. These
leadership theories explain how leadership styles work within a company to bring success. If you
are studying to become a business leader or manager, it’s important to understand these different
leadership theories and how they impact your leadership and management style.
2.1.1 What is a leadership theory?

Leadership theories are the explanations of how and why certain people become leaders. They
focus on the traits and behaviors that people can adopt to increase their leadership
capabilities. Some of the top traits that leaders say are vital to good leadership include:
 Strong ethics and high moral standards
 Great self-organizational skills
 Efficient learner
 Nurtures growth in employees
 Fosters connection and belonging
Research shows that these traits are considered the most important to leaders around the world.
And leadership theories help explains how leaders harness and develop these traits. Recently
leadership theories have been more formalized, making them easier to understand, discuss, and
analyze in action.
Ralph Nader says “The function of leadership is to produce more leaders, not followers.” This is
considered transformational leadership—a leader can alter the perspective or psychology of a
follower and shift them to want to become a leader too. This suggests that at the end of the day,
leadership should be elevating and inspiring. Leaders should push the people they lead to new
heights, helping them to grow into what they know they can become. Transformational
leadership is an important psychological perspective for leaders to study and understand if they
want to really influence and impact others. Different leadership theories address to create
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stronger and more effective leadership, helping followers become encouraged to be leaders
themselves.
These more common leadership theories are important to understand and recognize, especially if
you currently are, or are studying to be business leader in the future. Understanding
psychological and social impacts of effective leadership will help you determine the kind of
leader you want to be. (WGU, 2020)
Behavioral Theory.
The behavioral leadership theory focuses on how leaders behave, and assumes that these traits
can be copied by other leaders. Sometimes called the style theory, it suggests that leaders aren’t
born successful, but can be created based on learnable behavior. Behavioral theories of
leadership focus heavily on the actions of a leader—this theory suggests that the best predictor of
leadership success is viewing how a leader acts. Action rather than qualities are the focal points
of behavioral learning theory. Patterns of behavior are observed and categorized as “styles of
leadership” in this theory. Some of the styles of leadership include task-oriented leaders, people-
oriented leaders, country club leaders, status-quo leaders, dictatorial leaders, and more. At the
end of the day, the actions and actual behaviors of a leader are what define success in this theory.
The behavioral theory has many advantages primarily that leaders can learn and decide what
actions they want to implement to become the kind of leader they want to be. It allows leaders to
be flexible and adapt based on their circumstances. Another great benefit of this leadership style
is that it suggests anyone is capable of becoming a leader. Some disadvantages of the behavioral
theory are that while it allows flexibility, it doesn’t directly suggest how to behave in certain
circumstances. There are dozens of leadership styles that stem from the behavioral theory, but
there isn’t a right one for every circumstance.
A great example of the behavioral theory is looking at a task-oriented leader vs. a people-
oriented leader. If there’s a problem with a team, a task-oriented leader will look at the process to
see if something needs to be adjusted with the workflow. A people-oriented leader will look at
the individuals and go right to them, asking what the issue is. Whatever behaviors you choose,
the behavioral leadership theory helps leaders focus on their actions and utilize their decisions to
be a great leader. (WGU, 2020)
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Contingency Theory.
The contingency leadership theory, sometimes called situational theory, focuses on the context of
a leader. These theories look at the situational effects of the success or failure or a leader. A
leader’s effectiveness is directly determined by the situational context. While a leader’s
personality is a small factor in their success, the most important factor is the context and
situation of the leader. This theory takes the specific leadership styles and suggests that good
leaders can adjust their leadership style situational. It also suggests that it may be best to find the
right kind of leader for a specific situation. Types of contingency theories include the Hershey
and Blanchard’s Situational Theory, the Evans and House Path-Goal Theory, and Fiedler’s
Contingency Theory.
The contingency theory has great advantages, including that leaders are able to be effective no
matter their situational context. However, this theory does have criticism suggesting that there
isn’t enough detail that goes into the context of any situation. Contingency theory focuses on the
importance of a situation, but may not focus enough on the psychology of the employees or the
company itself. It also may not focus enough on how leadership styles can change over time.
There are internal and external factors that impact a leader and their situation. The type of
company, the size of the team, and the innate leadership style of an individual are internal
factors. External factors may include the customer feelings and the marketplace. All of these
situations play a factor into the contingency theory. (WGU, 2020)
Great Man Theory.

The great man theory of leadership, sometimes called the trait theory, suggests that good leaders
are born. They have innate traits and skills that make them great, and these are things that can’t
be taught or learned. The trait theory suggests that leaders deserve to be in their position because
of their special traits.
There is a great amount of criticism for the trait theory, mainly that leaders are either born or not,
that there isn’t work or effort that is needed to be put in so you can become a leader. This
suggests that social or psychological leaders are predetermined and that leaders are unable to
come from the shadows—they are either chosen or not. There is also criticism that most of the
traits associated with this theory are inherently masculine, and don't match the real psychology of
good leaders.
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People cite Abraham Lincoln, Alexander the Great, Queen Elizabeth I, and many others as their
examples of the great man theory. These social giants utilized their skills to lead nations. High
levels of ambition and determination are usually seen in leaders that appear to bring this theory
to life. Today, leaders that climb to the top may view their traits and abilities as part of the “great
man” theory. So it may appear that leaders get to their position based on their inherit
gifts. (WGU, 2020)
The Trait Theory
The great man theory is expanded upon by the trait theory of leadership, which is predicated on
the idea that effective leaders have particular personality qualities and features of behavior. They
can become effective leaders in a number of circumstances thanks to these qualities. It also
promotes the idea that certain people are more naturally gifted as leaders than others. Effective
people have hobbies and personality traits that are very different from those of non-leaders.
The main characteristics of a successful leader are:
 Emotional equilibrium
 Acknowledging one's duty
 Competence
 Recognizing obstacles
 Thinking with action
 Motivational abilities
 Talents in communication
 Tenacity and flexibility
 Making decisions with assurance
You can learn more about your limitations and strengths with the help of this leadership idea.
Then, you can try to strengthen your areas of weakness. The ideal person for a leadership
position is chosen by many organizations using the trait approach. (Simplilearn, 2023)
What is motivation?
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Motivation is a force that makes people act, set goals, and achieve them. It is a
psychophysiological process that controls human behavior, as well as sets its direction, actions,
and constancy.
Motivation is heavily influenced by culture, society, and lifestyle. Different cultures have their
own motivation drivers. Education, social environment, and lifestyle affect it even more.
You may not realize it, but the culture and values you were brought up with also determine your
motivation. For instance, if you were born in a family that places high importance on giving to
charity, you may be motivated to take on a role that helps others reach their own professional
goals.
On the other hand, if your social group contains many people that place a high priority on
achieving professional success, you might strive to get a promotion because of your lifestyle and
surroundings.
According to incentive theories of motivation, all types of motivation can be divided into two
major groups: intrinsic and extrinsic.
Intrinsic and Extrinsic types of motivation
A rewarding future sponsors both types of motivation, but what makes them different is where
the reward is coming from. For the intrinsic, it is an internal reward, while the extrinsic comes
from outside of the individual – it can be other people or something else.
What is intrinsic motivation?
Intrinsic motivation is most easily defined as those things that motivate a person with the aim of
being rewarded internally.
This is any activity based on personal gratification or just for the fun of it without expecting
external praise.
There are so many activities that are done daily and are dictated by intrinsic motivation. It could
be going to the gym, learning new skills, playing games or sports, or helping someone cross the
road because it gives you pleasure or a sense of purpose.
Anything at all that makes you feel good within yourself is fueled by intrinsic motivation.
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Intrinsic motivation examples
Example 1:
Peter is a young footballer who loves what he does but isn’t good enough. Everybody trains for
two hours a day at the stadium, but Peter takes an extra one hour after the training to do some
more practice. He wants to be good at his passion, not for applause, but himself. This is a typical
example of intrinsic motivation. In the end, he will get better because he is self-motivated to do
so. (VALMIS, 2023)
What is extrinsic motivation?
Extrinsic motivation stands for all the things that serve as an external drive, which is classified
into two categories: compensation and punishment.
For compensation, it can be salary, bonuses, goods, money, and an appraisal.
Punishment might include fines, blame, judgment, and many others. This side of extrinsic
motivation is usually mistaken to be negative, but it has quite a lot of positivity.
Extrinsic motivation is shown when an employee does his job well and gets fairly paid. At the
same time, he comes to work on time because he knows if he comes late; he will lose money or
even be fired. Also, he will be able to get a bonus from the supervisor if he achieves the goals set
for him.
Either way, extrinsic motivation comes from someone or something else outside of the person
being motivated.
Extrinsic motivation example
Example 1:
The sales department wasn’t performing as expected. The department head decided to motivate
them and promised to give a team bonus if they achieve the month’s target goal. The monetary
reward was inspiring. The team has reached the goal even earlier. This is the most common
example of extrinsic motivation in the workplace. (VALMIS, 2023)
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2.1.2 Different Types of Leadership Styles
1. Democratic Leadership
This is as clear as its name. In democratic leadership, the leaders make or break decisions
democratically, based on their team’s opinion and feedback. Although it is the leader who makes
the final call, every opinion counts. This is easily one of the most effective leadership styles
since it allows employees to have a voice.(D.Goleman, 2000)
2. Autocratic Leadership
This is exactly the opposite of democratic leadership wherein the opinions of employees are not
considered. Leaders with this style expect others to adhere to the decisions they take, which is
not a sustainable approach for the long term.(D.Goleman, 2000)
3. Laissez-faire Leadership
Laissez-fire means “let them do”. This style is the least intrusive and leaders with this approach
ensure that the authority lies with the employees. While this leadership style can empower, it
may also limit development, therefore, must be kept in check.(D.Goleman, 2000)
4. Strategic Leadership
Strategic leadership acts as a bridge between the senior team and the employees. Leaders
adopting this style ensure that both executive interests and working conditions for the team are
stable when a decision is made.(D.Goleman, 2000)
5. Transformational Leadership
This kind of leadership always aims at transforming and improving functions and capabilities.
There may be tasks and schedules assigned and leaders following this style may ask employees
to push their boundaries constantly. Most growth-minded companies tend to adopt this kind of
leadership style.((D.Goleman, 2000)
6. Transactional Leadership
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This is a very common leadership style today based on the action-and-reward concept. For
instance, an employee or team may receive an incentive or bonus for achieving a target set by the
company (D.Goleman, 2000).
7. Coach-Style Leadership
This leadership style focuses on identifying and nurturing a team member’s strengths and
weaknesses. A coaching leader develops strategies that emphasize team members’ success.
Though this is similar to strategic and democratic leadership styles, the focus here is more on the
individual.(EMERITUS, 2022)
8. Bureaucratic Leadership
This kind of leadership style sticks to the rules. For example, they might listen to their team
members’ opinions while deciding. (EMERITUS, 2022)
9. Charismatic Leadership
You know what it means to have a lot of charisma, and that’s exactly what these leaders possess.
Charismatic leaders have magnetic personalities, as well as a lot of conviction to achieve their
objectives.
Rather than encouraging behaviors through strict instructions, these leaders use
eloquent communication and persuasion to unite a team around a cause. They’re able to clearly
lay out their vision and get others excited about that same goal.
Pro: Charismatic leaders are very inspirational and effective at getting an entire group invested
in a shared objective.
Con: Due to their intense focus, it’s easy for these leaders to develop “tunnel vision” and lose
sight of other important issues or tasks that crop up.
You Might Be a Charismatic Leader If…
 You’re known for giving amazing “rally the troops” types of presentations.
 You’re usually the one elected to give toasts and speeches at various company events.
(Boogaard K. , 2023)
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10. Servant Leadership
Servant leaders operate with this standard motto: Serve first and lead second.
Rather than thinking about how they can inspire people to follow their lead, they channel the
majority of their energy into finding ways that they can help others. They prioritize the needs of
other people above their own.
Despite the fact that they’re natural leaders, those who follow the servant leadership model don’t
try to maintain a white-knuckle grasp on their own status or power. Instead, they focus on
elevating and developing the people who follow them.(Boogaard K. , 2023)
2.2 Empirical Literature

Rima Gose (2014) findings underline the importance of relationships between supervisors and
employees and therefore the way the organization communicates; a finding confirmed by similar
subjects who have shown supervision and communication to be important elements in terms of
employee motivation. These determinations are also backed up by other hypotheses and other
fields which used MLQ and the full range leadership development behaviors in several
formations. A study by Smash Zenabu found that transformative leadership style was relatively
the most commonly used leadership style, followed by transactional leadership style. And the
laissez-faire leadership style was the least exercised leadership style as found out by the
Department of Public Service and Human Resources Development (Masho, 2016).
Benoit & Denise (2005), the findings highlighted both charismatic and transformational aspects
as being important for the leadership of large-scale sporting events (e.g., ability to motivate
followers, creating an attractive sight to accompany, and fostering commitment and teamwork).
Amsalu in 2010 attempts to benchmark organizational leadership and employee motivation
between two public service establishments, the Social Security Agency (SSA) and the Ethiopian
Investment Commission (EIC) and found that comparatively better conditions like organizational
leadership and motivated employees seem to conduce to the higher EIA outcome, but SSA is not
attempting to act thusly. And he recommended that the new public administration, like an
organization's employees, offers training opportunities based on fair and transparent selection
procedures, clear work instructions and sound communication.
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Fasika (2016) used a 36-point multifactor leadership questionnaire developed by Bass and
Avolio (1997), and the employee motivation instrument employed. Information gathered from
respondents was analyzed using descriptive and correlation analysis. It was found that leadership
styles were essentially linked. The study results indicated that there was a huge relationship
between transactional and transformational leadership style and employee motivation. He too
observed that employees preferred the transformational leadership style over the transactional
leadership style. He then advocated the importance of a transformational leadership style that
should be encouraged through the organization’s representational strategies and judgments.
Research has shown that while all leadership styles have their strengths and weaknesses,
transformational leadership has been linked to higher performance, job satisfaction, and
commitment among subordinates. Laissez-faire leadership has been associated with lower
productivity and engagement among subordinates. Transactional leadership has been linked to
improved task performance, while authoritarian leadership has been associated with lower
satisfaction and engagement.
In conclusion, leadership style has a significant impact on an organization's performance and

productivity. Leaders should choose a style that aligns with their organizational objectives, the
organization's culture, and the preferences of their subordinates. Moreover, leadership styles
should be flexible and adapted to the situation at hand, evolving with the changing needs of an
organization.(Northouse, 2018)
2.3 Conceptual review

Leadership style has a significant impact on employee motivation, which is crucial for the
success of any organization. Different leadership styles, including autocratic, democratic, and
laissez-faire, have different effects on employee motivation.
Autocratic leadership style is characterized by a hierarchical structure in which the leader makes
decisions independently and with minimal input from the employees. This leadership style often
results in a lack of employee motivation, as employees feel disengaged and undervalued. In
contrast, democratic leadership style encourages employee involvement in decision-making
processes, leading to increased employee motivation and commitment.
Laissez-faire leadership style, on the other hand, involves minimal direction and guidance, and
employees are given maximum autonomy to complete their tasks. Although this leadership style
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can lead to high levels of employee creativity and innovation, it can also result in employee
demotivation and lack of productivity due to a lack of direction.
In conclusion, effective leadership style is crucial for employee motivation and ultimately the
success of an organization. A democratic leadership style is often the most effective, as it
encourages employee involvement, leading to increased employee motivation and commitment.
(Northouse, 2018)
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CHAPTER THREE
Methodology
3.1 Research Method

The type of research method which would be under taken for this study was descriptive research,
Descriptive research is a research method describing the characteristics of the population or

phenomenon studied. This descriptive methodology focuses more on the “what” of the research
subject than the “why” of the research subject.
The method primarily focuses on describing the nature of a demographic segment without
focusing on “why” a particular phenomenon occurs. In other words, it “describes” the research
subject without covering “why” it happens.(QuestionsPro, n.d.)
3.2 Source of Data

The research Has used both primary and secondary data source. Primary data sources are
managers as well as employees of the organization. The secondary data that the researchers have
used books, published report, guiding manual and other written materials.
3.3 Data Collection Instrument and Procedures

In the research, we will use both primary and secondary data. In collecting primary data we have
used Questionnaire and, the reason why we have used such tool is due to the fact to obtain
reliable responses and it helps to know the respondents idea of motives. The questionnaire has
both open and closed ended types, the open ended question helps respondents to express their
idea in unlimited way, whereas closed ended provide alternative question to choose respondents
from a given alternative. .Whereas, the secondary source of data would be collected from current
report, different types of book publication mostly from the system plan and program of the
organization.
3.4 Sample Size Determination Technique

The size of the sample is very important for getting accurate, statistically significant results and
running your study successfully.
17
If your sample is too small, you may include a disproportionate number of individuals which are
outliers and anomalies. These skew the results and you don’t get a fair picture of the whole
population.
If the sample is too big, the whole study becomes complex, expensive and time-consuming to
run, and although the results are more accurate, the benefits don’t outweigh the costs.
There are several methods to determine the sample size. These include using a census for small
populations, imitating a sample size of similar studies, using published tables and applying
formulas to calculate a sample size. This study will apply a simplified formula provided by
Yamane Taro (1967) in order to determine the required sample size.
N
n= 2
1+ N (e)
Where: n = the sample size N=the study population e = the level of precision 1 = designates the
probability of the event occurring Therefore:
250
n= 2 = 70
1+ 250(0.1)
Therefore 99 respondents will be used as a sample for this study to gather data through a
questionnaire.
The sampling technique for this study was simple random sampling for selecting respondents
from professional employees and managers from the head office and the selected branches. This
method will be used to give equal chance to the population to make sure the representativeness
of the data. In addition purposive or judgment sampling technique will be implemented for those
who are directly responsible with recruitment and selection.
3.5 Methods of Data Collection

Primary data were collected through closed ended questionnaire. We will use Google form
questionnaire method because it can be given to large samples, the cost and time involved in
using goggle form questionnaire is less than interview and respondents can complete the
questionnaire at their own convenience.
18
3.6 Method of Data Analysis
Descriptive data analysis will be mainly used to analyze the data collected through the
questionnaire and data will be analyzed according to the study and framing the different sections
of the questionnaire and the variables under each construct. Quantitative research methods Have
been used. Quantitative analyzing tools like average, percentage and tables will be used to
analyze the data that are collected through questionnaire.
19
CHAPTER FOUR
Data Presentation Analysis and Interpretation
This chapter presents with the analysis of data collected from questionnaire. The major purpose
of the study was to investigate the relationship between leadership style and employee’s
motivation. In this analysis, the study answers the research questions as well as the objectives of
the study. Findings about the demographics of study participants, and the statistical analysis used
to answer the recent questions also presented. This helped to interpret and understand the results.
Of the total 70 participants, 30 questionnaires were returned (43%) and used for further analysis.
The remaining 40 (57%) of employee’s did not return to the researcher.
Table 1: Questionnaires distributed and returned
Item frequency percentage
Returned questionnaires 30 43%
Unreturned questionnaires 40 57%
Total 70 100%
4.1 Demographic Characteristics of Respondents
4.1.1 Respondents by Age Category
Much of the respondents age is from below 30 years of age which accounts 18(45%) from the
total samples and the second is 15(37.5%)% is from 30 to 35 and 6( 15%) is from age 35-40 and
rpm 40-45 1(2.5%) and last the sample from the age group 50 and above has no response.
20
Sources own survey (2023)
4.1.2 Respondents by sex Category
Demographic Characteristics of Respondents Questionnaire was distributed equitably among

male &female though are which is both female male have equal responses.
Sources own Survey (2023)
4.1.3 Respondents by Work Experience
21
Based on the data collected through questionnaire, the large portion of respondents; 20(50%) fall
within the range of one to five years of service, the second highest percent 16 (40%) of the
respondents have 6-10 years of experience, 4 (10%) respondents have respondents from the
sample size have an experience of 11 -15 years and there is no respondent with 15 and above
years of experience.
4.1.3 Respondents by Educational Background
Concerning educational status of the respondents, as it is well known from the bank perspective;
most of the employees are recruited from the first degree program. The highest samples are also
from this program indicating staffs who are degree graduates have the largest portion which is 20
response which accounts about 50% among the total respondents, and 18 (45%) of them have
master’s degree, there no college diploma as shown figure.. The fact that almost all of the
respondents being educated in different levels it is believed that they can easily understand the
questionnaire as desired by the researcher.
22
4.1.4 Respondents by Job Category
Based on the data collected through questionnaire, the large portion of respondents; 16 (40%)
were officers, the second highest percent 12 (30%) of the respondents were senior officers and
10 (25%) were junior officers and the rest 1(2.5%) were director and team leaders.
4.2. Descriptive Statistics for Leadership Styles
4.2.1. Descriptive Statistics for Transformational Leadership style
23
This kind of leadership always aims at transforming and improving functions and capabilities.
There may be tasks and schedules assigned and leaders following this style may ask employees
to push their boundaries constantly. Most growth-minded companies tend to adopt this kind of
leadership style and also it creates valuable and positive change in the employee. A
transformational leader focuses on “transforming" builds respect, Considers the moral and
ethical consequences of decisions, Articulates a compelling vision of the future (D.Goleman,
2000).
The research question is "Does the manager seek differing perspectives when solving problems?"
Based on the responses of the 40 respondents, we can see that the majority of them either agreed
or strongly agreed that the manager seeks differing perspectives when solving problems, with a
total of 26 respondents falling into these two categories.
On the other hand, only a small number of respondents either disagreed or strongly disagreed
with the statement, with a total of 3 respondents falling into these two categories. The remaining
11 respondents were neutral.
This suggests that, overall, the respondents perceive the manager as being open to seeking
differing perspectives when solving problems. However, it's worth noting that there is a
significant proportion of respondents who were neutral, which could suggest that they either
don't have enough information or have mixed views on the manager's approach to problem-
solving.
Overall, it would be useful to gather more information from the respondents or conduct further
research to better understand the reasons behind the responses and any potential areas for
improvement in the manager's problem-solving approach.
24
Based on the data provided, it appears that:
 2.5% of respondents (1 individual) strongly disagree that the manager seeks differing
perspectives when solving problems.
 5% of respondents (2 individuals) disagree that the manager seeks differing perspectives

when solving problems.
 27.5% of respondents (11 individuals) are neutral about whether the manager seeks
differing perspectives when solving problems.
 50% of respondents (20 individuals) agree that the manager seeks differing perspectives
when solving problems.
 15% of respondents (6 individuals) strongly agree that the manager seeks differing
perspectives when solving problems.
Overall, the majority of respondents (65% - those who agree and strongly agree) believe that the
manager seeks differing perspectives when solving problems, while a small percentage (7.5% -
those who disagree and strongly disagree) do not believe this to be the case. However, nearly
one-third of respondents (27.5%) are neutral on this question, which could indicate a lack of
clarity or consistency in the manager's approach to problem-solving. The institution could use
25
this information to assess the manager's leadership style and identify areas for improvement in
communication and collaboration.
 No respondents strongly disagree that the manager instills pride in them for being
associated with him/her.
 15% of respondents disagree that the manager instills pride in them for being associated
with him/her.
 47.5% of respondents have a neutral perception regarding the manager's ability to instill
pride in them for being associated with him/her.
 42.5% of respondents agree that the manager instills pride in them for being associated
with him/her.
 5% of respondents strongly agree that the manager instills pride in them for being
associated with him/her.
26
 5% of respondents strongly disagree that the manager talks optimistically.
 12.5% of respondents disagree that the manager talks optimistically.
 35% of respondents have a neutral perception regarding the manager's optimistic speech.
 40% of respondents agree that the manager talks optimistically.
 7.5% of respondents strongly agree that the manager talks optimistically.
Overall, the data suggest that there is a mixed perception among respondents regarding the
manager's optimistic speech. While a majority of respondents (75%) have a neutral or positive
perception, a considerable proportion (17.5%) disagree or strongly disagree, indicating that there
may be room for improvement in this area. The institution could use this information to assess
the manager's communication style and identify ways to enhance employee morale and
engagement through optimistic speech and communication.
27
 7.5% of respondents strongly disagree that the manager acts in a way that builds their
respect.
 5% of respondents disagree that the manager acts in a way that builds their respect.
 20% of respondents have a neutral perception regarding the manager's actions that build
their respect.
 57.5% of respondents agree that the manager acts in a way that builds their respect.
 10% of respondents strongly agree that the manager acts in a way that builds their
respect.
Overall, the data suggest that a significant majority of respondents (67.5%) agree or strongly
agree that the manager acts in a way that builds their respect. However, there is still room for
improvement as a small proportion of respondents (12.5%) disagrees or strongly disagrees. The
institution could use this information to identify specific behaviors or actions that
build employee respect and ensure that the manager is consistently exhibiting them.
Additionally, they could consider gathering further feedback from employees to better
understand how the manager can improve their leadership style to further build respect among
the team.
28
 2.5% of respondents strongly disagree that the manager goes beyond self-interest for the
good of the group.
 10% of respondents disagree that the manager goes beyond self-interest for the good of
the group.
 37.5% of respondents have a neutral perception regarding the manager's willingness to go

beyond self-interest for the good of the group.
 42.5% of respondents agree that the manager goes beyond self-interest for the good of the
group.
 7.5% of respondents strongly agree that the manager goes beyond self-interest for the
good of the group.
manager's willingness to go beyond self-interest for the good of the group. While a majority of
respondents (50%) have a neutral or positive perception, a considerable proportion (12.5%)
disagree or strongly disagree, indicating that there may be room for improvement in this area.
The institution could use this information to assess the manager's leadership style and identify
ways to enhance employee trust and confidence in their willingness to prioritize the good of the
29
group over their own self-interest. The institution could also consider providing opportunities for
employees to provide feedback and suggestions to the manager to help enhance their leadership
style.
 12.5% of respondents strongly disagree that the manager displays a sense of power and
confidence.
 12.5% of respondents disagree that the manager displays a sense of power and
confidence.
 20% of respondents have a neutral perception regarding the manager's display of power
and confidence.
 37.5% of respondents agree that the manager displays a sense of power and confidence.
 17.5% of respondents strongly agree that the manager displays a sense of power and
confidence.
manager's display of power and confidence. While a majority of respondents (55%) have a
neutral or positive perception, a considerable proportion (25%) disagree or strongly disagree,
30
indicating that there may be room for improvement in this area. The institution could use this
information to assess the manager's leadership style and identify ways to enhance employee
perceptions of their power and confidence. This could involve providing training or coaching for
the manager to help them develop their leadership skills further, or it could involve providing
opportunities for employees to provide feedback and suggestions to the manager to help enhance
their leadership style.
4.2.2. Descriptive Statistics for Laissez-fair leadership
Laissez-fire means “let them do”. This style is the least intrusive and leaders with this approach
ensure that the authority lies with the employees. While this leadership style can empower, it
may also limit development, therefore, must be kept in check. (D.Goleman, 2000)
 15% of respondents strongly disagree that the manager avoids getting involved when
important issues arise.
 30% of respondents disagree that the manager avoids getting involved when important
issues arise.
 22.5% of respondents have a neutral perception regarding the manager's involvement in

important issues.
31
 17.5% of respondents agree that the manager avoids getting involved when important
issues arise.
 15% of respondents strongly agree that the manager avoids getting involved when
important issues arise.
Overall, the data suggest that a majority of respondents (52.5%) disagree or strongly disagree
that the manager avoids getting involved when important issues arise. However, there is still a
significant proportion (32.5%) who have a neutral perception or agree that the manager avoids
getting involved, indicating that there may be room for improvement in this area. The institution
could use this information to assess the manager's leadership style and identify ways to enhance
their involvement in important issues. This could involve providing training or coaching for the
manager to help them develop their leadership skills further, or it could involve providing
their leadership style.
 15% of respondents strongly disagree that the manager was absent when needed.
 25% of respondents disagree that the manager was absent when needed.
32
 22.5% of respondents have a neutral perception regarding the manager's availability when
needed.
 30% of respondents agree that the manager was absent when needed.
 7.5% of respondents strongly agree that the manager was absent when needed.
Overall, the data suggest that a considerable proportion of respondents (55%) disagree or
strongly disagree that the manager was absent when needed. However, a significant proportion
of respondents (30%) agree that the manager was absent when needed, indicating that there may
be room for improvement in this area. The institution could use this information to assess the
manager's availability and responsiveness to employee needs and concerns. This could involve
providing training or coaching for the manager to help them develop their leadership
skills further, or it could involve providing opportunities for employees to provide feedback and
suggestions to the manager to help enhance their leadership style. Additionally, the institution
could consider implementing regular check-ins or feedback mechanisms to ensure that the
manager is meeting the needs of their team.
33
 15% of respondents strongly disagree that the manager fails to interfere until problems
become serious.
 25% of respondents disagree that the manager fails to interfere until problems become
serious.
 22.5% of respondents have a neutral perception regarding the manager's interference in

problems before they become serious.
 30% of respondents agree that the manager fails to interfere until problems become
serious.
 7.5% of respondents strongly agree that the manager fails to interfere until problems
become serious.
strongly disagree that the manager fails to interfere until problems become serious. However, a
significant proportion of respondents (30%) agree that the manager fails to interfere until
problems become serious, indicating that there may be room for improvement in this area. The
institution could use this information to assess the manager's leadership style and identify ways
to enhance their responsiveness to problems and concerns as they arise. This could involve
providing training or coaching for the manager to help them develop their leadership
manager is addressing problems and concerns in a timely manner.
34
 5% of respondents strongly disagree that the manager is a believer in "if it isn't broke,
don't fix it".
 15% of respondents disagree that the manager is a believer in "if it isn't broke, don't fix
it".
 37.5% of respondents have a neutral perception regarding the manager's belief in "if it
isn't broke, don't fix it".
 30% of respondents agree that the manager is a believer in "if it isn't broke, don't fix it".
 12.5% of respondents strongly agree that the manager is a believer in "if it isn't broke,
don't fix it".
Overall, the data suggest that a majority of respondents (67.5%) have a neutral or positive
perception regarding the manager's belief in "if it isn't broke, don't fix it". However, there is still
a considerable proportion of respondents (20%) who disagree or strongly disagree, indicating
that there may be room for improvement in this area. The institution could use this information
to assess the manager's leadership style and identify ways to enhance their approach to problem-
solving and innovation. This could involve providing training or coaching for the manager to
help them develop their leadership skills further, or it could involve providing opportunities for
35
employees to provide feedback and suggestions to the manager to help enhance their leadership
style.
 15% of respondents strongly disagree that the manager delays responding to urgent
questions.
 22.5% of respondents disagree that the manager delays responding to urgent questions.
 22.5% of respondents have a neutral perception regarding the manager's responsiveness

to urgent questions.
 35% of respondents agree that the manager delays responding to urgent questions.
 5% of respondents strongly agree that the manager delays responding to urgent questions.
strongly disagree that the manager delays responding to urgent questions. However, a significant
proportion of respondents (35%) agree that the manager delays responding to urgent questions,
information to assess the manager's responsiveness to urgent questions and identify ways to
enhance their leadership style. This could involve providing training or coaching for the manager
36
to help them develop their communication and problem-solving skills, or it could involve
providing opportunities for employees to provide feedback and suggestions to the manager to
help enhance their leadership style. Additionally, the institution could consider implementing
regular check-ins or feedback mechanisms to ensure that the manager is addressing urgent
questions in a timely manner.
 20% of respondents strongly disagree that the manager avoids making decisions.
 30% of respondents disagree that the manager avoids making decisions.
 22.5% of respondents have a neutral perception regarding the manager's decision-making.
 25% of respondents agree that the manager avoids making decisions.
 2.5% of respondents strongly agree that the manager avoids making decisions.
Overall, the data suggest that a majority of respondents (52.5%) disagree or strongly disagree
that the manager avoids making decisions. However, there is still a significant proportion of
respondents (25%) who agree that the manager avoids making decisions, indicating that there
may be room for improvement in this area. The institution could use this information to assess
37
the manager's decision-making style and identify ways to enhance their leadership skills. This
could involve providing training or coaching for the manager to help them develop their
decision-making skills further, or it could involve providing opportunities for employees to
provide feedback and suggestions to the manager to help enhance their leadership style.
Additionally, the institution could consider implementing regular check-ins or feedback
mechanisms to ensure that the manager is making timely and effective decisions.
 20% of respondents strongly disagree that the manager waits for things to go wrong
before taking action.
 25% of respondents disagree that the manager waits for things to go wrong before taking
action.
 17.5% of respondents have a neutral perception regarding the manager's approach to

taking action.
38
 35% of respondents agree that the manager waits for things to go wrong before taking
action.
 5% of respondents strongly agree that the manager waits for things to go wrong before
taking action.
Overall, the data suggest that a majority of respondents (45%) disagree or strongly disagree that
the manager waits for things to go wrong before taking action. However, a significant proportion
of respondents (35%) agree that the manager waits for things to go wrong before taking action,
information to assess the manager's approach to problem-solving and identify ways to enhance
their leadership style. This could involve providing training or coaching for the manager to help
them develop their proactive thinking and decision-making skills, or it could involve providing
their leadership style. Additionally, the institution could consider implementing regular check-ins
or feedback mechanisms to ensure that the manager is taking timely and proactive actions to
prevent issues from arising.
4.2.3. Descriptive Statistics for Transactional Leadership Style
This is a very common leadership style today based on the action-and-reward concept. For
instance, an employee or team may receive an incentive or bonus for achieving a target set by the
company it also refers to modification in and redesign of the systems procedures, processes,
tasks and activities that take place between leader and employee. This kind of change is usually
handled by setting up a project to manage its implementation with the negotiation occurred
between leaders and manager. (D.Goleman, 2000)
39
 2.5% of respondents strongly disagree that the manager provides assistance in exchange
for their efforts.
 2.5% of respondents disagree that the manager provides assistance in exchange for their
efforts.
 40% of respondents have a neutral perception regarding the manager's assistance in

exchange for their efforts.
 40% of respondents agree that the manager provides assistance in exchange for their
efforts.
 15% of respondents strongly agree that the manager provides assistance in exchange for
their efforts.
Overall, the data suggest that a considerable proportion of respondents (55%) agree or strongly
agree that the manager provides assistance in exchange for their efforts. However, a significant
proportion of respondents (42.5%) have a neutral or negative perception in this area, indicating
that there may be room for improvement. The institution could use this information to assess the
manager's leadership style and identify ways to enhance their support for employees. This could
involve providing training or coaching for the manager to help them develop their leadership
40
manager is providing the necessary support and assistance to employees in exchange for their
efforts.
 2.5% of respondents strongly disagree that the manager makes clear what one can expect
to receive when performance goals are achieved.
 12.5% of respondents disagree that the manager makes clear what one can expect to
receive when performance goals are achieved.
 32.5% of respondents have a neutral perception regarding the manager's communication

of rewards for achieving performance goals.
41
 42.5% of respondents agree that the manager makes clear what one can expect to receive
when performance goals are achieved.
 10% of respondents strongly agree that the manager makes clear what one can expect to
Overall, the data suggest that a majority of respondents (52.5%) agree or strongly agree that the
manager makes clear what employees can expect to receive when performance goals are
achieved. However, there is still a significant proportion of respondents (15%) who disagree or
strongly disagree, indicating that there may be room for improvement in this area. The institution
could use this information to assess the manager's communication style and identify ways to
enhance their communication of rewards and expectations for achieving performance goals. This
could involve providing training or coaching for the manager to help them develop
their communication skills further, or it could involve providing opportunities for employees to
provide feedback and suggestions to the manager to help enhance their leadership style.
Additionally, the institution could consider implementing regular check-ins or feedback
mechanisms to ensure that the manager is effectively communicating expectations and rewards
to employees.
42
 0% of respondents strongly disagree that the manager re-examines critical assumptions to

question whether they are appropriate.
 7.5% of respondents disagree that the manager re-examines critical assumptions to

 25% of respondents have a neutral perception regarding the manager's approach to

examining critical assumptions.
 52.5% of respondents agree that the manager re-examines critical assumptions to

 16% of respondents strongly agree that the manager re-examines critical assumptions to
Overall, the data suggest that a majority of respondents (68.5%) agree or strongly agree that the
manager re-examines critical assumptions to question whether they are appropriate. Additionally,
there are no respondents who strongly disagree with this statement, indicating that the manager's
approach to examining critical assumptions is well-perceived by employees. However, a
significant proportion of respondents (25%) have a neutral perception, indicating that there may
be room for improvement in this area. The institution could use this information to assess the
manager's decision-making style and identify ways to enhance their approach to examining
critical assumptions. This could involve providing training or coaching for the manager to help
them develop their critical thinking and problem-solving skills further, or it could involve
providing opportunities for employees to provide feedback and suggestions to the manager to
help enhance their leadership style.
43
 2.5% of respondents strongly disagree that the manager expresses satisfaction when they
met expectations.
 7.5% of respondents disagree that the manager expresses satisfaction when they met
expectations.
 30% of respondents have a neutral perception regarding the manager's expression of

satisfaction.
 45% of respondents agree that the manager expresses satisfaction when they met
expectations.
 15% of respondents strongly agree that the manager expresses satisfaction when they met
expectations.
Overall, the data suggest that a majority of respondents (60%) agree or strongly agree that the
manager expresses satisfaction when they met expectations. However, there is still a significant
proportion of respondents (40%) who have a neutral or negative perception in this area,
indicating that there may be room for improvement. The institution could use this information to
assess the manager's leadership style and identify ways to enhance their recognition and
feedback for employees who meet expectations. This could involve providing training or
44
coaching for the manager to help them develop their communication and recognition
manager is effectively recognizing and expressing satisfaction to employees who meet
expectations.
4.2.4 Descriptive Statistics for Intrinsic Motivation
Intrinsic motivation is most easily defined as those things that motivate a person with the aim of
being rewarded internally.
This is any activity based on personal gratification or just for the fun of it without expecting
external praise.
There are so many activities that are done daily and are dictated by intrinsic motivation. It could
be going to the gym, learning new skills, playing games or sports, or helping someone cross the
road because it gives you pleasure or a sense of purpose.
Anything at all that makes you feel good within yourself is fueled by intrinsic motivation.
(VALMIS, 2023)
1. Strongly Disagree 2=Disagree 3=Neutral 4=Agree 5=Strongly Agree
Items on 1 2 respondent 3 4 5
Motivation respondent responden respondent respondent
with
(Intrinsic) with t
frequency with with
frequency
with frequency frequency
frequency
1. I am satisfied 1 (2.5%) 3 (7.5%) 11 (27.5%) 19 (47.5%) 6 (15%)

with the type of
work I perform
since it provides
me with
45
opportunity for
achievement and
challenging
work.
2 I have done my 0% 3 (7.5%) 12 (30%) 19 (47.5%) 6 (15%)
job with a strong
feeling of
responsibility
since, I positively
influencing other
people’s lives.
3. The job provides 1 (2.5%) 3 (7.5%) 12 (30%) 19 (47.5%) 6 (15%)
me with a strong
feeling of
responsibility
since I am
contributing to
the society.
4. The types of 1 (2.5%) 3 (7.5%) 12 (30%) 16 (40%) 5 (12.5%)
work I perform
provide me with
opportunity for
personal growth
and development
5. I will not be 2 (5%) 5 (12.5%) 11 (27.5%) 19 (47.5%) 3 (7.5%)
terminated
without a good
cause in this
institution.
6. I have a chance 1 (2.5%) 6 (15%) 10 (25%) 16 (40) 7 (17.5%)
to work alone on
46
the job.
7. There is a sense 0% 1 (2.5%) 8 (20%) 22 (55%) 9 (22.5%)
of responsibility
in my work.
8. I am allowed to 0% 5 (12.5%) 9 (22.5%) 17 (42.5%) 9 (22.5%)
decide on the
methods of
performing my
work.
Based on the data provided, the following interpretations can be made:
1.Satisfaction with work providing opportunity for achievement and challenging work: 63% of
respondents agree or strongly agree that they are satisfied with the type of work they perform
since it provides them with an opportunity for achievement and challenging work, while 30%
have a neutral perception, and 7% have some level of dissatisfaction.
2. Feeling of responsibility from positively influencing other people's lives: 60% of respondents
agree or strongly agree that they have done their job with a strong feeling of responsibility since
they are positively influencing other people's lives, while 30% have a neutral perception, and
10% disagree or strongly disagree.
3. Feeling of responsibility from contributing to society: 63% of respondents agree or strongly

agree that their job provides them with a strong feeling of responsibility since they are
contributing to society, while 30% have a neutral perception, and 7% have some level of
dissatisfaction.
4. Opportunity for personal growth and development: 53% of respondents agree or strongly
agree that the types of work they perform provide them with an opportunity for personal growth
and development, while 42.5% have a neutral perception, and 4.5% disagree or strongly
disagree.
47
5. Job security: 60% of respondents agree or strongly agree that they will not be terminated
without good cause in the institution, while 37.5% have a neutral perception, and 2.5% disagree
or strongly disagree.
6. Chance to work alone on the job: 57.5% of respondents have a neutral perception, while 40%
agree or strongly agree that they have a chance to work alone on the job, and 2.5% disagree.
7. Sense of responsibility in work: 77.5% of respondents agree or strongly agree that there is a
sense of responsibility in their work, while 20% have a neutral perception, and 2.5% disagree.
8. Autonomy in work: 65% of respondents have a neutral perception, while 42.5% agree or
strongly agree that they are allowed to decide on the methods of performing their work, and
7.5% disagree or strongly disagree.
Overall, the data suggest that respondents are largely satisfied with their work and feel a strong
sense of responsibility in their roles. However, there is more mixed perception about the
opportunity for personal growth and development and the extent of autonomy in work. The
institution could use this information to enhance employee motivation and engagement by
providing opportunities for growth and development, promoting job security, and clarifying
expectations around autonomy in work
4.2.5. Descriptive Statistics for Extrinsic Motivation
Extrinsic motivation stands for all the things that serve as an external drive, which is classified
into two categories: compensation and punishment.
For compensation, it can be salary, bonuses, goods, money, and an appraisal.
Punishment might include fines, blame, judgment, and many others. This side of extrinsic
motivation is usually mistaken to be negative, but it has quite a lot of positivity.
Extrinsic motivation is shown when an employee does his job well and gets fairly paid. At the
same time, he comes to work on time because he knows if he comes late; he will lose money or
even be fired. Also, he will be able to get a bonus from the supervisor if he achieves the goals set
for him.
Either way, extrinsic motivation comes from someone or something else outside of the person
being motivated. (VALMIS, 2023)
48
Items on 1 2 3 4 5
Motivation responden responden responden responden responden
(Extrinsic) t with t t t t
frequency
with with with with
frequency frequency frequency frequency
1 I am satisfied with 2 (5%) 5 (12.5%) 16 (40%) 15 (35.5%) 2(5%)

. promotion and the
salary in the
institution
2 I am satisfied with 3 (7.5%) 3 (7.5%) 17 (42.5%) 14 (35%) 3 (7.5%)
the fringe, benefits
like medical
expense, like
education fee
coverage, outside
training……etc.
3 The management of 2 (5%) 6 (15%) 12 (30%) 17 (42.5%) 3 (7.5%)
. the institution cares
for employee’s wale
fare
4 There is opportunity 3 (7.5%) 5 (12.5%) 16 (40%) 14 (35%) 2 (5%)
. for in-house
training(Institutiona
l training)
5 I am satisfied with 1 (2.5%) 4 (10%) 8 (20%) 20 (50%) 7 (17.5%)
. the relationship
with coworkers in
the workplace
6 I have good 0% 3 (7.5%) 12 (30%) 18(45) 7 (17.5%)
49
. communication
with my coworkers
in the workplace
and free to be with
my colleagues
7 When I have 1 (2.5%) 5 (12.5%) 9 (22.5%) 19(47.5%) 6 (15%)
. questions or
concerns my
supervisor is able to
address them and
my working hours
are reasonable
8 I am given a written 2 (5%) 3 (7.5%) 16 (40%) 14 (35%) 5 (122.5%)
. appreciation letter
for work
Based on the data provided, the following interpretations can be made:
 Satisfaction with promotion and salary: 75.5% of respondents agree or strongly agree that
they are satisfied with promotion and the salary in the institution, while 17.5% have some
level of dissatisfaction.
 Satisfaction with fringe benefits: 77.5% of respondents agree or strongly agree that they
are satisfied with fringe benefits such as medical expense coverage, education fee
coverage, and outside training, while 15% have some level of dissatisfaction.
 Perception of management caring for employee welfare: 72.5% of respondents agree or
strongly agree that the management of the institution cares for employee welfare, while
20% have a neutral perception, and 7.5% have some level of dissatisfaction.
 Availability of in-house training: 77.5% of respondents agree or strongly agree that there
is an opportunity for in-house training (institutional training), while 17.5% have a neutral
perception, and 5% have some level of dissatisfaction.
 Satisfaction with relationships with coworkers: 72.5% of respondents agree or strongly
agree that they are satisfied with their relationships with coworkers in the workplace,
while 12.5% have some level of dissatisfaction.
50
 Communication with coworkers: 77.5% of respondents agree or strongly agree that they
have good communication with their coworkers in the workplace and are free to be with
their colleagues, while 7.5% have a neutral perception, and 15% have some level of
dissatisfaction.
 Support from supervisors and reasonable working hours: 70% of respondents agree or
strongly agree that their supervisor is able to address their questions or concerns and that
their working hours are reasonable, while 22.5% have a neutral perception, and 7.5%
have some level of dissatisfaction.
 Written appreciation for work: 75% of respondents agree or strongly agree that they have
been given a written appreciation letter for their work, while 12.5% have a neutral
perception, and 12.5% have some level of dissatisfaction.
Overall, the data suggest that respondents are largely satisfied with extrinsic motivators such as
promotion and salary, fringe benefits, and opportunities for training. They also perceive that the
management of the institution cares about employee welfare and that they have good
relationships with coworkers and communication with colleagues. However, there is some room
for improvement in areas such as communication with coworkers and support from supervisors
and reasonable working hours. The institution could use this information to enhance employee
motivation and engagement by addressing these areas for improvement and continuing to offer
extrinsic motivators that are valued by employees
51
CHAPTER FIVE
Summary, Conclusions and recommendations
5.1. Summary
We tried to explore whether employees achieved employee motivation based on the manager’s
leadership style, and how differently the three common leadership styles affect employee
motivation. Participants‟ responses validated theories discussed in chapter two as the foundation
of the current research. Based on the data analyzed the following major findings were drawn.
The results of demographic variable show that from the sample taken from Amhara Bank n=70
respondents 50% male and 50% were female respondents. The results on ages showed that
majority of Amhara Bank employees age is from below 30 years of age which accounts 18(45%)
from the total samples and the second is 15(37.5%) is from 30 to 35 and 6(15%) is from age 35-
40 and rpm 40-45 1(2.5%) and last the sample from the age group 50 and above has no response.
While the smallest group of respondents was those aged between 18-25 are 8.1% who are junior
Bank Trainee.
Based on the data collected through questionnaire, the large portion of respondents; 16 (40%)
were officers, the second highest percent 12 (30%) of the respondents were senior officers and
10 (25%) were junior officers and the rest 1(2.5%) were director and team leaders. Concerning
educational status of the respondents, as it is well known from the bank perspective; most of the
employees are recruited from the first degree program. The highest samples are also from this
program indicating staffs who are degree graduates have the largest portion which is 20 response
which accounts about 50% among the total respondents, and 18 (45%) of them have master’s
degree, there no college diploma as shown figure.. The fact that almost all of the respondents
being educated in different levels it is believed that they can easily understand the questionnaire
as desired by the researcher. Based on the data collected through questionnaire, the large portion
of respondents; 20(50%) fall within the range of one to five years of service, the second highest
percent 16 (40%) of the respondents have 6-10 years of experience, 4 (10%) respondents have
respondents from the sample size have an experience of 11 -15 years and there is no respondent
with 15 and above years of experience.
The findings of the research revealed that transformational leadership style is strongly related
with employee’s motivation and it is the dominant one and also Amhara Bank employee’s
52
altogether shows positive response for transactional leadership style, but positive and weak
response on laissez-faire leadership style. Accordingly, the finding of the study made the
accompanying conclusions; there is a significant relationship between leadership styles
(transformational, transactional) but weak relationship between laissez-faire leadership style and
employees’ motivation. In general, the research study achieved its objectives of determining the
relationship between leadership styles and employee motivation at Amhara Bank Head Office.
5.2. Conclusion
The main objective of the study was to examine the effect of leadership styles on employee
motivation of employees in Amhara Bank head office. Data was collected from employees
currently working in Amhara Bank by using Google Form structured questionnaire with Likert
scale.
The two dominant leadership styles (transformational, transactional) are supported by

employees who are working Amhara Bank head office. This leadership styles make employees
more satisfied with their current job. As per this specific research paper results transactional
leadership was positively correlated with employee motivation.
Also, transformational leadership has a direct relationship with employee motivation. This.The
results of the research showed a significant relationship between transformational leadership and
employee motivation
5.3. Recommendations
Based on the above conclusions, we suggest the subsequent recommendations: Amhara Bank has
got to determine the acceptable leadership style to implement for workers to realize
organizational goal. Since Amhara Bank employees prefer transactional and transformational
leadership style, the managers of the Amhara Bank got to act as role models by being the
primary to try to what need to be done. They have to motivate the workers and act as coach for
the event of future leaders by delegating duties and interesting them in deciding.
53
Reference
About Amhara Bank. (2022, 05 29). Retrieved from (www.amharabank.com.et/)
BLOG/LEADRSHIP. (2022, 08 10).
Boogaard, K. (2023, 2 1). What Kind of Leader Are You? 8 Common Leadership Styles (and
Their Pros and Cons). Retrieved from https://www.themuse.com/advice/common-
leadership-styles-with-pros-and-cons
Boogaard, K. (2023, 1 23). What Kind of Leader Are You? 8 Common Leadership Styles (and
Their Pros and Cons). Retrieved from https://www.themuse.com/advice/common-
leadership-styles-with-pros-and-cons
CFI, T. (2022, 12 11). Leadership Styles. Retrieved from CFI:

Bass.(https://corporatefinanceinstitute.com/resources/management/leadership-styles/)
D.Goleman. (2000). Leadersip that Gets Results. 78(2),78-79.
EMERITUS. (2022, 3 30). 8 Types of Leadership Styles and How to Choose Yours. Retrieved
from https://emeritus.org/in/learn/different-types-of-leadership/
Northouse. (2018, 5 22). Leadership,theory and practice . Retrieved from

https://scholarworks.wmich.edu/books/651/
Northouse, P. G. (2018). Leadrship;theory and practice.
QuestionsPro. (n.d.). Descriptive Research: Definition, Characteristics, Methods + Examples.

Retrieved from https://www.questionpro.com/blog/descriptive-research/
Simplilearn. (2023, 03 30). 10 Major Leadership Theories Every Manager Should Master in
2023. Retrieved from https://www.simplilearn.com/top-leadership-theories-every-
manager-should-know-article
VALMIS. (2023, 03 15). Types of Motivation. Retrieved from

https://www.valamis.com/hub/types-of-motivation
WGU. (2020, 04 7). Leadership theories and styles. Retrieved from

https://www.wgu.edu/blog/leadership-theories-styles2004.html#
54
Appendix
Organizational Structure
Amhara Bank aims to use the enabling conditions to provide an excellent service that appeals to
the ever-diversifying and growing needs of customers that are demanding more from banks in
the form of personalized and competitive banking services.
Dear Participant,
I am a under graduate student at Admas university and currently I’m conducting a research for
the completion of bachelor degree in business Management. This project work is on “THE
ROLE OF LEADERSHIP STYLE ON EMPLOYEE MOTIVATION, The purpose of this
study is to assess the common leadership style applied at Amhara Bank head Office
Your participation in this research study is voluntary and will require 15-20 min of your Time.
The information provided will be used for academic purpose but the individual
Survey information will remain confidential and there is no need to write your name.
55
The questionnaire requires you to consider each question and rank it from strongly
disagree to strongly agree. There are no correct or incorrect answers you will be required
To answer them based upon your experience in handling recent project.
If you have any questions regarding this research study, you may contact me at Phone number
0933008409, e-mail nebagizaw8@gmail.com
Section 1: General profile of the respondent
1. Age of category:
1. Below 30 2. 30-35 3. 35-40 4.40-45 5.45-50 6. Above 50
2. Sex: 1. Male 2. Female
3. Job Category:
1.  Junior officer 2.  Officer
3.  Senior officer 4.  Higher Level Manager
4. Educational status
1. Diploma/TVT 2. BA/BSc 3. MA/MSc 4. Others; specify……………
5. Work Experience
A. 0 – 5 years B. 6 – 10 years
C. 11 – 15 years D. More than 15 years
Section Two: Question related to the specific objectives (Independent Variables)
Please tick from 1 to 5 for your level of agreement for the given statements related to leadership
in your organization.
1= Strongly Disagree 2=Disagree 3=Neutral 4=Agree 5=Strongly Agree
Leadership style measures 1 2 3 4 5
56
Transformational Leadership
1. The manager seeks differing perspectives when solving

problem
2 The manager talks optimistically about the future
3. The manager instills pride in me for being associated

with him/her.
4. The manager acts in which builds my respect.
5. The manager goes beyond self-interest for the good of

the group.
6. The manager displays a sense of power and confidence.
Laissez- faire Leadership
1. The manager avoids getting involved when important

issues arise.
2 The manager fails to interfere until problems become
serious
3. The manager was absent when needed.
4. The manager Shows that he/she is a firm believer in “If

it isn't broke, don’t
5. The manager delays responding to urgent questions.
6. The manager avoids making decisions
57
Transactional Leadership
1. The manager Provides me with assistance in exchange

for my efforts.
2 The manager Re-examines critical assumptions to
3. The manager makes clear what one can expect to
4. The manager expresses satisfaction when I meet
expectations.
Section three: Question related to the specific objectives (Dependent Variables)
Similar to the above question, please tick from 1 to 5 for your level of agreement for the given
statements related to leadership in your organization.
1. Strongly Disagree 2=Disagree 3=Neutral 4=Agree 5=Strongly Agree
Items on Motivation 1 2 3 4 5
Intrinsic Motivation
1. I am satisfied with the type of work I perform since it

provides me with opportunity for achievement and
challenging work.
2 I have done my job with a strong feeling of
responsibility since, I positively influencing other
people’s lives.
3. The job provides me with a strong feeling of
responsibility since I am contributing to the society.
4. The types of work I perform provide me with
opportunity for personal growth and development
58
5. I will not be terminated without a good cause in this
institution.
6. I have a chance to work alone on the job.
7. There is a sense of responsibility in my work.
8. I am allowed to decide on the methods of performing

my work.
Items on Motivation 1 2 3 4 5
Extrinsic Motivation
1. I am satisfied with promotion and the salary in the

institution.
2 I am satisfied with the fringe, benefits like medical
expense, like education fee coverage, outside
training……etc.
3. The management of the institution cares for
employee’s wale fare
4. There is opportunity for in-house training
(Institutional training).
5. I am satisfied with the relationship with coworkers in
the workplace
6. I have good communication with my coworkers in the
workplace and free to be with my colleagues.
7. When I have questions or concerns my supervisor is
able to address them and my working hours are
reasonable.
8. I am given a written appreciation letter for my good
work.
59
60

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ADMAS UNIVERSITY

Department of Business Management

THE ROLE OF LEADERSHIP STYLE ON EMPLOYEE MOTIVATION IN THE CASE

A SENIOR ESSAY RESEARCH SUBMITTED FOR THE PARTIAL FULFILLMENT

Addis Ababa, Ethiopia

Name of students Signature

Name of advisor: _________________________

1.1 Background of the Study

1.2 Background of the Organization

1.2.1 Mission and Vision of the Organization

To be Leading and game changing bank in Africa

To provide a wide-ranging, accessible, reliable and innovative financial and nonfinancial

1.3 Statement of the Problem

1.4 Research Questions

1.5 Objective of the study

1.5.2 Specific Objective

 To determine the relationship between transactional leadership and employee motivation.

1.7 Scope of the Study

1.8 Limitations of the Research

2.1 Theoretical Review

Leadership theories and styles.

2.1.1 What is a leadership theory?

 Strong ethics and high moral standards

 Great self-organizational skills

 Nurtures growth in employees

 Fosters connection and belonging

Great Man Theory.

The Trait Theory

The main characteristics of a successful leader are:

 Acknowledging one's duty

 Thinking with action

 Tenacity and flexibility

 Making decisions with assurance

Intrinsic and Extrinsic types of motivation

What is intrinsic motivation?

What is extrinsic motivation?

For compensation, it can be salary, bonuses, goods, money, and an appraisal.

Extrinsic motivation example

You Might Be a Charismatic Leader If…

2.2 Empirical Literature

In conclusion, leadership style has a significant impact on an organization's performance and

2.3 Conceptual review

3.1 Research Method

Descriptive research is a research method describing the characteristics of the population or

3.2 Source of Data

3.3 Data Collection Instrument and Procedures

3.4 Sample Size Determination Technique

3.5 Methods of Data Collection

Table 1: Questionnaires distributed and returned

Item frequency percentage

Returned questionnaires 30 43%

Unreturned questionnaires 40 57%

4.1 Demographic Characteristics of Respondents

4.1.1 Respondents by Age Category

4.1.2 Respondents by sex Category

Demographic Characteristics of Respondents Questionnaire was distributed equitably among

Sources own Survey (2023)

4.1.3 Respondents by Work Experience

Sources own Survey (2023)

4.1.3 Respondents by Educational Background