THE IMPACT OF LEADERSHIP STYLES ON EMPLOYEESS MOTIVATION, AND ORGANIZATIONAL PERFORMANCE A CASE OF BALE ZONE URBAN DEVELOPMENT AND HOUSING OFFICE

Abstract

This study aimed to investigate the impacts of leadership styles on employees motivation, and organizational performance in Bale Zone Urban Development and Housing office. It specifically sought to examine the impact of laissez-faire, transactional and transformational leadership styles on employees motivation, and organizational performance in BZUDHO. The research approach employed in the study was quantitative research method. The researcher used a descriptive survey for the study. Descriptive survey research design that helped in establishing the relationship of leadership styles and employees motivation, and Organizational performance. In this regard, data for this study was collected on the independent variable, which was leadership styles (transformational, transactional and laissez faire), and that of the dependent variable, which was employees motivation, and Organizational performance. The relationship between the two variables was investigated by using Pearson product moment Correlation Co-efficient, in order to determine the strength of their relationship and the coefficients of determination existing between them. The study was carried out in randomly selected ten Offices of Bale Zone UDHO. Then, from a total of 326 populations of employees 180 were selected for study purpose. Out of these, 169 (93 %) of them correctly filled and returned. Questionnaire was the main instrument of data collection. Descriptive statics, Pearson Correlation and multiple regression analysis were employed. The finding of the study shows leadership styles has a positive significant correlation with employees" motivation, and organizational performance in BZUDHO. The findings shows that the leadership styles (transformational, transactional and Laissez faire) has a significant impacts on employees motivation, and organizational performance in BZUDHO. From this finding the study concludes that transformational, transactional and laissez faire leadership styles has a positive significant impact on employees’ motivation and organizational performance in BZUDHO. Owing from the stated finding and conclusions, the following recommendations are made. Providing training for leaders on the features and importance of leadership styles is very important. Transformational leadership style is one of the leadership style that has got significant impact on employees motivation which in turns resulted in high organizational performance. Hence BZUDHO is better to implement transformational leadership style than transactional and lassies fair leadership styles. Transactional leadership style has got significant impact on employees motivation simultaneously on organizational performance. Despite this the impact is moderate compared to transformational leadership style in the organization. So BZUDHO better to implement where it fits. Laissez faire leadership style has got significant impact on employees motivation and organizational performance in BZUDHO, but the Laissez faire leadership style scored the lowest impact on employees motivation, and organizational performance. Though this style has shown lowest impact BZUDHO would better to exercise where the subordinates (employees) are capable enough about the task they perform and highly committed to their respective organization 7