BONGA UNIVERSTY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT
GRADUATE EDUCATION PROGRAM
COORDINATION

EFFECTS OF TRANSFORMATIONAL LEADERSHIP

ON ORGANIZATIONAL PERFORMANCE IN THE
CASE OF KEFFA ZONE SELECTED ETHIO-
TELECOM
BY
HAWARIAT FIKADU ADELO

JUNE, 2024
BONGA, ETHIOPIA
EFFECTS OF TRANSFORMATIONAL LEADERSHIP
ON ORGANIZATIONAL PERFORMANCE IN THE
CASE OF KEFFA ZONE SELECTED ETHIO-
TELECOM

A THESIS SUBMITTED IN PARTIAL FULFILMENT OF THE

REQUIREMENTS FOR MASTERS OF BUSINESS
ADMINISTRATION (MBA)

MAJOR ADVISOR: ABEBAYEHU H. (PHD)

CO-ADVISOR: TAGAY.M

JUNE, 2024
BONGA ETHIOPIA
 DECLARATION

I, HAWARIAT FIKADU ADELO, declare that this thesis entitled “EFFECTS OF

TRANSFORMATIONAL LEADERSHIP ON ORGANIZATIONAL PERFORMANCE IN THE

CASE OF KEFFA ZONE SELECTED ETHIO-TELECOM” is the outcome of my effort and study

and that all sources of materials used for the study have been duly acknowledged. To the best of my

knowledge, this study has not been submitted for any degree at this University or any other

University. It is offered for the partial fulfillment of the degree of Masters of Business

Administration (MBA).

Researcher’s Name: HAWARIAT FIKADU

Signature_________________________

Date ____________________________
 ADVISORS’ APPROVAL SHEET
SCHOOL OF POST-GRADUATE PROGRAMS
BONGA UNIVERSITY
ADVISORS’ APPROVAL SHEET

This is to certify that the thesis entitled “EFFECTS OF TRANSFORMATIONAL LEADERSHIP ON

ORGANIZATIONAL PERFORMANCE IN THE CASE OF KEFFA ZONE SELECTED ETHIO-
TELECOM” submitted in partial fulfillment of the requirements for the degree of Master's in MBA,
the Graduate Program of the Department/School of Business Administration, and has been carried
out by HAWARIAT FIKADU ADELO under my/our supervision. Therefore, I/we recommend that
the student has fulfilled the requirements and hence hereby can submit the thesis to the department.

________________________ _________________
Name of major advisor Signature Date

Name of co-advisor Signature Date

 POST-GRADUATE PROGRAMS COORDINATION
BONGA UNIVERSITY
EXAMINERS’ APPROVAL SHEET
===============================================================
We, the undersigned, members of the Board of Examiners of the final open defense by
HAWARIAT FIKADU ADELO have read and evaluated his/her thesis entitled “EFFECTS OF
TRANSFORMATIONAL LEADERSHIP ON ORGANIZATIONAL PERFORMANCE IN THE
CASE OF KEFFA ZONE SELECTED ETHIO-TELECOM ” and examined the candidate. This is,
therefore, to certify that the thesis has been accepted in partial fulfillment of the requirements for the
degree Master of Business Administration (MBA)
_________________ ________________
Name of the Chairperson Signature Date
__________________________ ______________
Name of Major Advisor Signature Date
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Name of Internal Examiner Signature Date
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PGC Approval Signature Date
Final approval and acceptance of the thesis is contingent upon the submission of the final copy of
the thesis to the School of Post Graduate Post (SPGP) through the Department/School Graduate
Committee (DGC/SGC) of the candidate’s department.

Stamp of PGC Date: ______________

 ACKNOWLEDGMENT

Above all, I praise almighty God for his kindness to me in finishing this thesis and his endless

support throughout my life. His elegances give me the courage to realize my dreams. Next, I would

like to express my deepest gratitude to my advisor Abebayehu h (PhD), for his guidance, critical

and constructive comments, and valuable suggestions during the research preparation processes as

well as for his positive cooperation. He is my role model in his commitment to discharging his

responsibility and smooth communication. I am also thankful to my co-advisor Tagay M. (MBA)

for his constructive comments and frank support of the finalization of my paper. I would be gratified

to acknowledge, with gratitude, my debt of thanks to my beloved family for their endless tolerance;

encouragement, and love have contributed a lot to the completion of my paper.

Contents
i
DECLARATION...........................................................................................................................................1
List Of Acronyms And Abbreviation............................................................................................................v
CHAPTER ONE............................................................................................................................................1
INTRODUCTION.........................................................................................................................................1
1.1 Background of the Study.....................................................................................................................1
1.2 Statement of the Problem.....................................................................................................................2
1.3 Objectives............................................................................................................................................5
1.3.1 Specific Objectives.......................................................................................................................5
1.4 Research Questions..............................................................................................................................5
1.5 Significance of the Study.....................................................................................................................5
1.6 Scope of the Study...............................................................................................................................7
1.7 Organization of the study.....................................................................................................................7
1.8 Definition of Key Terms......................................................................................................................7
CHAPTER TWO...........................................................................................................................................9
LITERATURE REVIEW..............................................................................................................................9
2.1 Review of Theoretical Literature.......................................................................................................15
2.1.1 Transformational leadership theory............................................................................................15
2.1.2 Transactional theory....................................................................................................................17
2.2 Empirical Literature Review..............................................................................................................18
2.2.1 Characteristics of Transformational Leadership.........................................................................14
2.4 Conceptual Framework......................................................................................................................19
CHAPTER THREE.....................................................................................................................................21
Research Methodology................................................................................................................................21
3.1 Area Description of the Study............................................................................................................21
3.2 Research Design.................................................................................................................................21
3.3 Population, Sample and Sampling Technique...................................................................................22
3.3.1 Population or Universe...............................................................................................................22
3.3.2 Sampling Frame..........................................................................................................................23
3.4. Sources of Data.................................................................................................................................23
3.4.1. Primary sources..........................................................................................................................24
3.4.2. Secondary sources......................................................................................................................24
3.5. Data Collection Instruments.............................................................................................................24
3.9. Reliability and Validity.....................................................................................................................26

ii
CHAPTER FOUR........................................................................................................................................29
RESEARCH FINDINGS AND DISCUSSIONS.........................................................................................29
4.1 Presentations of Research Findings...................................................................................................29
4.1.1 Response Rate.............................................................................................................................29
4.1.2 Gender of Respondents...............................................................................................................31
4.1.3 Age of Respondents....................................................................................................................31
4.1.4 Duration of Service.....................................................................................................................32
4.1.5 Various Positions Held by Respondents.....................................................................................33
4.1.6 Highest Education Level of Respondents...................................................................................34
4.1.7 Descriptive Statistics...................................................................................................................35
4.1.7.2 Effects of Individualized Consideration on Organizational performance...............................37
4.1.7.3 Effects of Intellectual Stimulation on Organizational performance........................................39
4.1.7.4 Effects of Idealized Influence on com on Organizational performance..................................40
4.3 Summary of Data Analysis................................................................................................................43
4.3.1 Inspirational Motivation..............................................................................................................43
4.3.2 Individualized Consideration......................................................................................................43
4.3.3 Intellectual Stimulation...............................................................................................................44
4.3.4 Idealized Influence......................................................................................................................45
CHAPTER FIVE.........................................................................................................................................46
SUMMARY OF FINDINGS,CONCLUSIONS AND RECOMMENDATIONS.......................................51
5.1 Summary of Research Findings.........................................................................................................51
5.2 Conclusions........................................................................................................................................55
5.3 Recommendations..............................................................................................................................55
5.4 Suggestions for Further Study...........................................................................................................57
REFERENCES............................................................................................................................................58
APPENDICES.............................................................................................................................................63

iii
LIST OF TABLES
Table 1: Transformational leadership----------------------------------------------------------------------------------15
Table 2: Response rate Category Frequency Percentage------------------------------------------------------------29
Table 3: Reliability Statistics for each TL /N=31/-------------------------------------------------------------------30
Table 4: Reliability for organizational performance /N=31/-----------------------------------------------------30
Table 5 Gender of Respondents----------------------------------------------------------------------------------------31
Table 5 Various Positions Held by Respondents---------------------------------------------------------------------33
Table 6: Highest Education Level of Respondents------------------------------------------------------------------34
Table 7: Frequency Distributions table of Inspirational Motivation-----------------------------------------------35
Table 8 Effects of Individualized Consideration Distribution Table----------------------------------------------37
Table 9: Effects of Intellectual Stimulation Distribution Table----------------------------------------------------39
Table 10: Effects of Idealized Influence Distribution Table--------------------------------------------------------40
Table 11: Pearson correlation coefficient range----------------------------------------------------------------------46
Table 12: Correlation of transformation leadership and organizational performance---------------------------47
Table 13: Collinearity Diagnosis ETC performance-----------------------------------------------------------------53
Table 15 :( Model Summary) II, IM, IS, IC as Predictors to organizational performance in ETC.-----------55
Table 16: (ANOVA) II, IM, IS, IC as Predictors to organizational performance in ETC.---------------------56
Table 17: (Coefficients) II, IM, IS, IC as Predictors to organizational performance in ETC.-----------------48

iv
 LIST OF FIGURE

Figure 1: Conceptual framework....................................................................................................................20

Figure 2 :Sex respondent................................................................................................................................31
Figure 3: Experience.......................................................................................................................................32
Figure 4: Education.........................................................................................................................................34
Figure 5: Histogram........................................................................................................................................51
Figure 6: Linearity of TL And OP..................................................................................................................51
Figure 7: Homoscedasticity for organization performance ETC....................................................................53

v
 List of Acronyms
1. EASL - Ethical, Authentic, and Servant Leadership
2. EES - Employee Satisfaction
3. ETC - Ethio Telecom
4. LTP - Leadership: Theory and Practice
5. MAA - Meta-Analytic Analysis
6. OP - Organizational Performance
7. OE - Overall Effectiveness
8. P - Productivity
9. SWR - Southwest Region
10. TAL - Transformational and Charismatic Leadership
11. TATL - Transformational and Transactional Leadership
12. TL - Transformational Leadership

vi
 ABSTRACT

Transformational leadership is positively influences on team performance. The objective of the

study is investigates effects of transformational leadership on organizational performance in the
context of Ethio-telecom keffa zone. Accordingly, the researcher adopts primary and secondary
data similarly qualitative and quantitative (mixed) method of research approach was applied.
Regarding to the qualitative data; questionnaire is used by using census methods to gather
information from the employees of ETC particularly for those employees’ tasks by using a census to
study a population of 33 staff from this 31 was returned. The study was analyzed the collected data
by using both descriptive analysis and inferential analysis using statistical package for social
science (SPSS) version 25.The results from analysis showed that all the explanatory variables were
correlated with the explained variable. Among these variables, individual consideration is an
important leadership strategy for organizational performances; it is highly significant and has
positive effect on organizational performance than others. It can be concluded that ETC to focuses
on these factors in order to retain employee and improve organizational performance. Then, it is
recommended that there is a need to practice transformational leadership by individual
consideration efforts personalized to its employees, and improving organizational performance.

Key word: Idealized influence, Inspiration motivation, Intellectual stimulation, Individual

consideration, Organization performance

vii
 CHAPTER ONE
INTRODUCTION

1.1 Background of the Study

The effects of transformational leadership on organizational performance have been a topic of
significant interest in the field of organizational behavior and management. Transformational
leadership, as a leadership style, has been widely recognized for its potential to inspire and motivate
followers, leading to improved performance and outcomes within organizations. This study aims to
explore the impact of transformational leadership on organizational performance in the context of
Ethio Telecom, particularly focusing on the Southwest region Avolio, B. J., & Bass, B. M. (2004).

Transformational leadership is characterized by leaders who inspire and motivate their followers by
creating a vision, fostering a sense of purpose, and promoting positive change within the
organization. This leadership style has been associated with various positive outcomes, including
increased employee satisfaction, higher productivity, and overall effectiveness of the organization
(Avolio & Mhatre, 2021).

In the context of Ethio Telecom, the organization is undergoing a significant transformation, making
it particularly relevant to investigate the role of transformational leadership in driving organizational
performance during this period of change. Understanding how transformational leadership
influences organizational performance in the Southwest region of Ethio Telecom can provide
valuable insights for both academic research and practical implications for organizational leaders
and managers Avolio, B. J., & Bass, B. M. (2004).

Reviewing empirical literature on the theme of transformational leadership and organizational

performance reveals a rich history of research and scholarly work in this area. Numerous published
books and academic articles have delved into the topic, providing valuable insights into the
theoretical foundations and practical implications of transformational leadership. Notably, several
studies have examined the relationship between transformational leadership and organizational
performance in various contexts, offering diverse perspectives and findings Avolio, B. J., & Bass, B.
M. (2004).
1
For instance, Bass and Avolio's 2004 seminal work "Transformational Leadership: Theory and
Practice" has been instrumental in shaping our understanding of transformational leadership and its
impact on organizational outcomes. Additionally, meta-analytic analyses such as "Meta-Analytic
Analysis of the Relationship between Transformational Leadership and Organizational Outcomes"
have synthesized findings from multiple studies, offering comprehensive insights into the effects of
transformational leadership on various aspects of organizational performance.

Moreover, specific research studies conducted in different organizational settings have contributed
to the body of knowledge on this topic. For instance, recent research conducted by Smith and
Johnson (2020) has examined the impact of transformational and transactional leadership on
organizational effectiveness. Additionally, a study by Brown, White, Martinez, Lee, and Patel
(2021) has delved into the effects of ethical, authentic, and servant leadership on organizational
performance, offering valuable empirical insights into the relationship between leadership styles and
organizational outcomes.

By reviewing these scholarly works and empirical studies, it becomes evident that there is a robust
foundation for investigating the effects of transformational leadership on organizational
performance. However, the specific context of Ethio Telecom's Southwest region presents a unique
opportunity to contribute to this body of knowledge by examining how transformational leadership
influences organizational performance in the midst of a significant organizational transformation
(Burns, J. M. 1978).

In conclusion, this study seeks to build upon the existing literature by examining the effects of
transformational leadership on organizational performance in the case of Ethio Telecom's Southwest
region. By drawing on historical developments in the literature and synthesizing insights from
previous research, this study aims to provide a comprehensive understanding of the role of
transformational leadership in driving organizational performance within the context of ongoing
transformation at Ethio Telecom.

1.2 Statement of the Problem

Transformational leadership and organizational performance, there is a growing body of research
that suggests a positive relationship between the two. Transformational leaders are known for
inspiring and motivating their followers to achieve higher levels of performance by fostering a
2
shared vision, promoting innovation, and encouraging individual growth and development. Studies
have shown that organizations led by transformational leaders tend to exhibit higher levels of
employee engagement, job satisfaction, and commitment, which in turn leads to improved
organizational performance in terms of productivity, profitability, and overall effectiveness.
Research by Bass and Riggio (2006), found that transformational leaders are able to engage their
followers through inspiration, intellectual stimulation, and individualized consideration, leading to
higher levels of employee engagement within the organization.

The ongoing transformation at Ethio Telecom's Southwest region presents a unique organizational
context, which necessitates an investigation into the effects of transformational leadership on
organizational performance. While the literature on transformational leadership and organizational
performance is extensive, there exists a precise gap in understanding how this leadership style
specifically impacts organizational performance during a period of significant organizational
change, such as the one experienced by Ethio Telecom ETC portal 2020.

The existing literature on transformational leadership and organizational performance has

predominantly focused on stable organizational environments, with limited attention given to
organizations undergoing substantial transformation. This gap in the literature fails to address the
specific challenges and opportunities associated with leading an organization through a period of
significant change, such as the one currently being experienced by Ethio Telecom. As such, there is
a need to investigate how transformational leadership influences organizational performance within
the context of an organization undergoing grand transformation (Jung, D. I., Chow, C., & Wu, A.
(2003).

A study by Wang et al. (2020), found that transformational leadership positively influences team
performance through its impact on team learning behavior, team innovation climate, and team
psychological empowerment. Transformational leaders were found to foster a climate of innovation
and empowerment that ultimately led to improved team performance. Research by Avolio et al.
(2021), explored the relationship between transformational leadership and organizational resilience,
finding that transformational leaders play a crucial role in building organizational resilience by
promoting a culture of adaptability, agility, and innovation. Organizations led by transformational
leaders were better equipped to navigate challenges and disruptions effectively. A study by Liu et al.
(2020), examined the impact of transformational leadership on customer satisfaction in service
3
organizations. The findings revealed that transformational leaders who prioritize customer-centric
values and behaviors positively influence employee attitudes and behaviors, leading to higher levels
of customer satisfaction and loyalty, ultimately contributing to organizational performance.
Research by Li et al. (2021), explored the relationship between transformational leadership and
innovation performance in technology firms. The study demonstrated that transformational leaders
who exhibit visionary, inspirational, and supportive behaviors are able to stimulate creativity,
encourage risk-taking, and drive innovation within the organization, resulting in improved
innovation performance and competitive advantage. These recent research findings provide valuable
insights into the diverse ways in which transformational leadership influences organizational
performance across various dimensions, highlighting its importance in driving positive outcomes
and fostering sustainable success in today's dynamic business environment ( Podsakoff, PMoorman, R.
H., & Fetter, R. 1990).

Furthermore, while previous research has provided valuable insights into the general effects of
transformational leadership on organizational outcomes, there is a lack of specific empirical
evidence and theoretical frameworks tailored to the telecommunications industry, particularly
within the Ethiopian context. The telecommunications sector is characterized by its unique
challenges and dynamics, and the specific impact of transformational leadership on organizational
performance in this industry remains underexplored (Kebede, T., & Assefa, T. 2023).

Additionally, the Southwest region of Ethio Telecom presents a distinct operational environment
with its own set of challenges and opportunities. The existing literature often lacks region-specific
studies that account for the unique cultural, social, and economic factors that may influence the
relationship between transformational leadership and organizational performance in this particular
context.

Therefore, the precise gap that this research is address lies in the need to investigate how
transformational leadership influences organizational performance in the specific context of Ethio
Telecom's Keffa zone. By addressing this gap, the research aims to contribute to both theoretical
and practical knowledge by providing insights that are tailored to the telecommunications industry,
the Ethiopian context, and the unique challenges associated with leading an organization through
significant change.

4
1.3 Objectives
The main objective was to examine the effects of transformational leadership style on
organizational performance in Ethiopia, A case study of keffa zone selected ETC.

1.3.1 Specific Objectives

The specific objectives of the study are

1. To assess the idealized influence of Leader’s on the organizational performance of keffa

zone ETC.
2. To assess Leader’s Inspirational Motivation on the organizational performance of keffa
zone ETC.
3. To analyze the impact of Leader’s Intellectual Stimulation on the organizational
performance of keffa zone ETC.
4. To determine the effects of leader’s individualized consideration on the organizational
performance of keffa zone ETC.
1.4 Research Questions
1. How does idealized Leader’s influence the organizational performance of keffa zone ETC.?
2. How does Inspirational Motivation influence the organizational performance keffa zone
ETC.?
3. What is the Leader’s Intellectual Stimulation on the organizational performance keffa zone
ETC.?
4. What are the effects of leader’s individualized consideration on the organizational
performance of keffa zone ETC?

1.5 Significance of the Study

The research on the effects of transformational leadership on organizational performance in the case
of Ethio Telecom (ETC) Southwest Region holds significant importance for various stakeholders,
including the researcher herself, the management keffa zone ETC, the Government of Ethiopia,
employees of ETC keffa zone ETC, Bonga University, and other researchers. The following are the
specific reasons why this study is significant to each stakeholder: As the researcher, this study
provides an opportunity to contribute to the existing body of knowledge on leadership and
organizational performance. It offers a platform to develop research skills and gain practical insights

5
into the dynamics of transformational leadership in a real-world organizational context.
Furthermore, the findings of this study can enhance the researcher's academic and professional
reputation. For the management of ETC keffa zone, this research is significant as it can provide
valuable insights into the impact of transformational leadership on organizational performance
within their specific operational context. The findings may help them identify areas for
improvement in leadership practices and develop strategies to enhance overall organizational
effectiveness.

The Government of Ethiopia has a vested interest in the performance of state-owned enterprises
such as ETC. This study's findings can inform policy decisions related to leadership development
and organizational performance within government-owned entities, contributing to more effective
public administration and service delivery.

Employees are directly impacted by leadership practices within their organization. Understanding
the effects of transformational leadership on organizational performance can empower employees
by fostering a better working environment, enhancing motivation, and potentially leading to
improved job satisfaction and career development opportunities.

As an academic institution, Bonga University stands to benefit from this research as it adds to the
scholarly discourse on leadership and organizational performance. The study may also provide a
basis for future collaborations between the university and keffa zone ETC for research, training, or
consultancy purposes. For other researchers in the field of leadership and organizational behavior,
this study can serve as a reference point for further investigations into transformational leadership
and its implications for organizational performance. It may also inspire comparative studies in
different organizational contexts or contribute to the development of theoretical frameworks in
leadership research. In summary, the significance of this study extends beyond its immediate impact
on keffa zone ETC to encompass broader implications for academia, public administration, and
organizational management practices. The findings have the potential to influence decision-making,
policy formulation, and future research endeavors in the field of leadership and organizational
performance.

6
1.6 Scope of the Study
This study only focuses on effects of transformational leadership on organizational performance.
This study is based on ethiotelecom keffa zone. Conceptual framework of this study highlights the
component factors of transformational leadership: idealized influence, inspirational motivation,
intellectual stimulation and individualized consideration on organizational performance of the
company. The research is planned to be completed after 6 months. Methodologically this research
was used descriptive and correlational survey design to evaluate the interdependence of the various
variables and obtain appropriate, complete and adequate information and present the truth and come
out with feasible solution.

1.7 Organization of the study

This research paper is divided into five chapters. The first chapter deals about background of the
study, statement of the problem, research questions, objectives of the study, scope and significance
of the study and limitations of the study. The second chapter focuses on review of relevant
literatures, theoretical framework, conceptual and empirical case studies to the research. The third
chapter describes the research methodologies to be applied in the study. Chapter four dictates the
data analysis part while chapter five is about the findings and conclusion.

1.8 Definition of Key Terms

1. Transformational Leadership: Transformational leadership is a leadership style that involves

inspiring and motivating followers to achieve higher levels of performance by fostering a shared
vision, encouraging innovation, and promoting individual growth and development.

2. Organizational Performance: Organizational performance refers to the overall effectiveness and

efficiency of an organization in achieving its goals and objectives. It encompasses various aspects
such as financial performance, customer satisfaction, employee productivity, and innovation.

3. Ethio Telecom (ETC): Ethio Telecom is the national telecommunications provider in Ethiopia,
offering a wide range of telecommunication services including mobile, internet, and fixed-line
services to customers across the country.

7
4. Southwest Region: The Southwest Region refers to the region which is newly established within
Ethiopia where Ethio Telecom operates and provides its services. This region encompasses specific
cities, towns, or districts within the country.

5. Effects: In the context of this research thesis, effects refer to the impact or influence that
transformational leadership practices have on various aspects of organizational performance within
Ethio Telecom's Southwest Region.

By defining these key terms, the research thesis aims to provide clarity and understanding of the
central concepts that was explored in the study on the effects of transformational leadership on
organizational performance at Ethio Telecom's Southwest Region.

8
 CHAPTER TWO
2. LITERATURE REVIEW
Introduction
The researcher reevaluates theoretical and empirical literature evaluations of earlier research
findings from many scholars concerning transformational leaderships and the ways in which distinct
variables impact the company outcomes in this chapter. This chapter addresses the
operationalization of variables and the conceptual framework.
2.1 Leadership
Leadership and management are prototypical components of any organization and are arguably, the
most important aspects for organizational success. A successful leader can stimulate and lead the
organization towards success. Therefore, it is important to understand what makes a good leader.
One of the most important aspects during a change program is leadership. A good leader is, many
times, vital in order to maximize the chance of success (Yukl 2012). Therefore, this part is
describing some different leadership styles and trying to explain what good leadership is and how it
can be related to change processes. Leadership is one the most critical factors that influence
creativity in any organization. Transformational leadership, in particular, has been singled out as the
effective mode of management in promoting creativity. Quatrain (2010) argues that this kind of
leadership motivates employees to improve their input in an organization. In addition,
transformational leadership, challenges employees to aim higher and also to be ambitious. Ojokuku
and Ogbomosho (2014), argue that this type of leadership definitely promotes creativity which in
turn leads to innovative minds. This in turn positively influences the performance of an
organization. It is therefore recommended that leaders in an organization should embrace this kind
of leadership as it leads to positive results not only in an organization capacity but also in an
individual capacity.
2.2 Transformational Leadership

Transformational leadership is defined as a leadership approach that causes change in individuals

and social systems. In its ideal form, it creates valuable and positive change in the followers with
the end goal of developing followers into leaders. Enacted in its authentic form, transformational

9
leadership enhances the motivation, morale and performance of followers through a variety of
mechanisms. These include connecting the follower's sense of identity and self to the mission and
the collective identity of the organization; being a role model for followers that inspires them;
challenging followers to take greater ownership for their work, and understanding the strengths and
weaknesses of followers, so the leader can align followers with tasks that optimize their
performance. Muhammad Faisal Aziz (2009). This leadership style is that involves a leader working
with the employees to pinpoint the needed change, create a vision to guide the organization through
inspiration, and execute the change together with committed group members (Mortazavi &Partovi,
2014). A professional will is defined as one creating outstanding results during the transformation
from a good to a great organization, demonstrating determination to what must be produced in the
long-term even if the process is hard, setting high standards of what is needed of the organization to
succeed, and giving credits to those contributing to the success of the company. Leadership can,
according to this model, be divided into five levels, with level one as the not so good leaders and
level five as the ones transforming good organizations into great ones.

The different levels, according to (Collins (2005) are: highly capable individual; makes productive
contributions through talent, knowledge, skills and good work habits, contributing team member;
contributes individual capabilities to the achievement of group objectives and works effectively
with others in a group setting, competent manager; organizes people and resources towards the
effective and efficient pursuit of predetermined objectives, effective leader; can analyzes
commitment to and vigorous pursuit of a clear and compelling vision, stimulation higher
performance standards and executive; builds enduring greatness through a paradoxical blend of
personal humility and professional will. Another view of this is presented by Miller (2001), who has
made a four-stage model directly referring to change leadership. This assumption is based on
personal change adaptability, which leads to a four-stage framework ending in successful change
leadership behavior.

The top-line indicators for personal adaptability are optimism, self-assuredness, innovative,
collaborative, purposeful, structured and proactive. Optimism is defined by an upbeat about the
future, learning from situations and does not allow problems to dampen enthusiasm and the person’s
genuine optimistic view of the world. Self-assuredness is defined by a high self-esteem grounding in
the knowledge of one’s own abilities and confidence, ending in a feeling of being in control of

10
upcoming events. Innovation is defined as having a fresh look at occurring problems and
challenging status quo. Collaboration is defined by a look at others as resources to be called upon
when encountering problems or difficulties. Purposeful meaning that one has an understanding of
priorities and an ability to maintain focus and discipline towards goal achievement. Structured
persons are organized, methodical and use existing systems. Proactive, meaning that one takes quick
decisions and seizes opportunities due to fast thoughts and reactions.
Transformational leadership is one of the best methods to enhance the individuals and group’s
performance. Transformational leaders motivate followers to exert and explore existing as well as
new prospects. TLs proactively help the followers to attain goals with high standards (Antonakis,
Avolio, & Siva Subramaniam, 2003). Transformational leaders move followers beyond immediate
self-interest (Bass, 1999). Transformational leadership creates an environment in which employees
are motivated and energized (De Jong & Bruch, 2013). Motivated employees working in a
supportive climate provide more effective customer service, reinforcing organizational performance
and leading to financial gains for shareholders (Giroux & McLarney, 2014).

2.3 Transformational Leadership Style

According to Bass (1997), transformational leader transforms the follower by helping them
understand the importance of organizational outcomes, encouraging them to rise above their self-
interest to achieve organizational goals, and inducing their higher order needs. In other hands,
transformational leaders are proactive; skillful at transforming people from followers into leaders
and influence followers to excel self-interest for the greater good of their organization, focus on
being a leader and more importantly they inspire followers to achieve extraordinary goals (Avolio&
Bass, 2004). As described by Cherry (2012) transformational theories focus upon connection
formed between leaders and followers. Similarly, Northouse (2013) defined transformational as
which concentrate on the connection developed between leaders and their subordinates, are able to
inspire followers to change their expectations, perceptions and motivations and to work towards
common goals.
As stated by Howell &Avolio (1993) Transformational leaders also possess the ability to motivate
their subordinates to commit themselves to performance beyond expectation and this may occur in
the following three main ways: firstly by raising the level of awareness of the objective of the
organization and how it is to be achieved, secondly by encouraging coworkers to place the

11
organization’s objectives above their own personal interests. There are Four dimensions or
subscales of transformational leadership namely idealized influence (including both idealized
influence attribute and idealized influence behavior), individualized consideration, intellectual
stimulation and inspirational motivation. (Avolio, Bass and Jung, 2004) 14
 Idealized Influence (II)
According to Bass and Riggo (2009) leaders behave in ways that allow them to serve as role models
for their followers. Followers identify with the leaders and want to emulate them; leaders are
endowed by their followers as having extraordinary capabilities, persistence and determination,
admired, respected and trusted. The leader demonstrates high standards of ethical and moral conduct
avoids using power for personal gain (Avolio& Bass, 1994). In other hands, Idealized influence
includes leading by example and making sacrifices, but this behavior may be used to manage
follower impressions and gain their trust (Yukl, 2010). Bass and Avolio (1990) classified idealized
influence as idealized influence attributes and idealized influence behavior. Idealized influence
attributes occur when followers identify with and follow those leaders who are trusted and seen as
having an attainable mission and vision. Whereas, idealized influence behavior refers to a leader
behavior which results in followers identifying with leaders and wanting to emulate them.
 Individualized Consideration (IC)
The leader’s behavior demonstrates acceptance of individual differences (Bass &Riggio, 2006).
This conduct incorporates the provision of support, encouragement, training, assignment, counsel
and input for use in the adherents' self-awareness. In other hands, it refers to leader behaviors that
pay special attention to each individual follower’s needs for achievement and growth by acting as a
coach or mentor. Followers and colleagues are developed to successively higher levels of potential.
Individualized consideration is practiced when new learning opportunities are created along with a
supportive climate. Individual differences in terms of needs and desires are recognized. It can be
used in an authentic way to build subordinates loyalty (Yukl, 2010). Leaders who welcome change
always listen to the opinion of their subjects and advise them accordingly. They also make sure
those issues troubling their subjects are well tackled, hence endearing themselves more to those
being led. Such leaders are keen listeners, because they understand that it is through listening, they
are able to learn new ideas and also develop themselves and their followers intellectually.
According to Okechukwu and Godday (2015), this aspect is a good example of leaders who give a
listening ear to their followers and support them accordingly. Leaders who are 15 champions of
12
change also take the responsibility of teaching their followers hence helping them to come into
reality with matters of importance.
 Intellectual Stimulation (IS)
As described by Bass &Avolio (2000) Intellectual Stimulation involves leaders stimulating their
followers' effort to be innovative and creative by questioning assumptions, reframing problems and
approaching old situations in new ways. Similarly, Yukl (2010) argued that intellectual stimulation
can be used to increase creative ideas that will enhance the leader’s reputation.
In this manner, they are empowered to be inventive and creative, challenge both their own particular
and their leaders' convictions and qualities, in addition to those of the organization itself. Besides,
they are urged to go out on intellectual risks and inquiry presumptions. Similarly, in intellectual
stimulation new ideas and creative problem solutions are solicited from followers, who are included
in the process of addressing problems and finding solutions. Followers are encouraged to try new
approaches and their ideas are not criticized because they differ from the leaders’ ideas and this
component may be exhibited when leaders motivate employees to create new things to achieve the
goals of the organization effectively and efficiently (Bass &Riggio, 2006).
 Inspirational Motivation (IM)
According to Northouse (2013) it is descriptive of leaders who communicate high expectations to
followers, inspiring them through motivation to become committed to and a part of the shared
vision in the organization. In practice, leaders use symbols and emotional appeals to focus group
members’ efforts to achieve more than they would in their own self-interest. Team spirit is
enhanced by this type of leadership. Thus, the above five factors of transformational leadership
styles were considered to investigate whether correlate or not with employee performance. When a
leader is motivated inspirationally, he or she is able to exhibit confidence, respond positively to his
or her follower’s thoughts and ideas and he or she is also able to motivate the followers (De Jong &
Bruch, 2013). A transformational leader comes up with a vision that is clear, meets the group
expectations and is also committed to meeting the laid-out group objectives. Transformational
leaders have quality communication skills since they are expected to communicate in an accurate
and powerful manner. Additional leadership characteristics that are important include eagerness,
enthusiasm and the ability to articulate organization goals and vision (Sahin et al., 2014). 16
Inspirational motivations suggest that leaders need to communicate their high expectations to their
followers. They should also motivate and inspire them by giving them meaning and challenging
13
them to come up with a shared vision for the firm. Additionally, transformational leader’s
inspirational appeal encourages the followers to put in their best effort in terms of harmony and
charity in their tasks. According to Abbasi and ZamaniMiandashti (2013). Inspirational Motivation
and Ability to Inspire Confidence Inspirational motivation refers to the leader's ability to inspire
confidence, motivation and a sense of purpose in his followers.
The transformational leader must articulate a clear vision for the future, communicate expectations
of the group and demonstrate a commitment to the goals that have been laid out. This aspect of
transformational leadership requires superb communication skills as the leader must convey his
messages with precision, power and a sense of authority. Other important behaviors of the leader
include his continued optimism, enthusiasm and ability to point out the positive. Intellectual
Stimulation and Creativity Transformational leadership values creativity and autonomy among the
leader's followers. The leader supports his followers by involving them in the decision-making
process and stimulating their efforts to be as creative and innovative as possible to identify
solutions. To this end, the transformational leader challenges assumptions and solicits ideas from
followers without criticizing. She helps change the way followers think about and frame problems
and obstacles. The vision the leader conveys helps followers see the big picture and succeed in their
efforts.

2.2.1 Characteristics of Transformational Leadership

Every element is crucial to the transformative process of positive and successful leaders (Caillier,
2014). Every leader needs to learn and put the following into practice in order to acquire strong
leadership skills: Self-efforts to motivate followers to meet objectives and reach goals (idealized
theory), match the mission and vision of the company to particular tasks meant to accomplish them
(inspirational theory), foster followers' creativity and equip them to take on challenges (intellectual
stimulation theory), and enable followers to demonstrate their potential as a result of the freedom
their leader grants them (individualized theory). To promote employee motivation, these
components must cooperate (Lacerda, 2015).
The 4 I's of transformational leadership were further developed by Avolio, Waldman, and
Yammarino (1991) by replacing charismatic leadership with idealized influence. The four I's help to
comprehend the transformational leadership style, as shown in the table below, and have been
validated in multiple empirical investigations (Bass, et al., 2003; Hay, 2006).

14
Table 1: Transformational leadership
Idealized Influence The requirements of a leader are
subordinated to those of their followers
under this module.
Inspirational motivation In this module, the leader establishes
the company's goal by motivating his
subordinates and fostering a sense of
teamwork.
Intellectual stimulation The students of this module learn how
to be imaginative and devise novel
solutions to current problems.
Individualized consideration In this module, the leader develops the
needs of the followers to help them
overcome upcoming obstacles.

Note. Adapted from Bass et al., (2003). Developing transformational leadership: Journal of
European Industrial Training.

2.4 Review of Theoretical Literature

The theories that have been created to explain transformational leadership and its effects on
business performance are presented in this section of the study. The following hypotheses were
taken into consideration during the research process.

2.4.1 Transformational leadership theory

The concept of transformational leadership has gained significant attention in organizational
behavior and leadership studies. Transformational leadership theory, as proposed by Bass (1985)
and further developed by Avolio and Bass (1994), emphasizes the leader's ability to inspire and
motivate followers to achieve extraordinary outcomes. This approach goes beyond traditional
transactional leadership, which focuses on exchanges between leaders and followers, to encompass

15
a more visionary and charismatic style of leadership that fosters positive change and innovation
within organizations.
Bass and Riggio (2006) identified four key components of transformational leadership: idealized
influence, inspirational motivation, intellectual stimulation, and individualized consideration.
Idealized influence refers to the leader's ability to serve as a role model and gain the trust and
admiration of followers. Inspirational motivation involves communicating a compelling vision and
inspiring commitment to shared goals. Intellectual stimulation entails encouraging creativity and
critical thinking among followers, while individualized consideration involves personalized support
for the development and well-being of individual employees.
Recent research has continued to explore the impact of transformational leadership on various
aspects of organizational performance. For instance, Afsar, Badir, and Saeed (2014) conducted a
study in the context of the healthcare industry and found that transformational leadership was
positively associated with employee creativity, job satisfaction, and organizational commitment.
Similarly, a meta-analysis by Wang, Oh, Courtright, and Colbert (2011) revealed a strong positive
relationship between transformational leadership and employee performance across different
industries.
Furthermore, the relevance of transformational leadership in contemporary organizational settings
has been highlighted by scholars such as Walumbwa, Avolio, Gardner, Wernsing, and Peterson
(2008). Their research emphasized the role of transformational leadership in promoting
organizational innovation and change readiness, particularly in dynamic and competitive
environments. This aligns with the growing emphasis on adaptability and agility as critical
organizational capabilities in the face of technological disruptions and global market changes.
Moreover, the influence of transformational leadership extends beyond individual-level outcomes to
broader organizational performance indicators. A study by Dumdum, Lowe, and Avolio (2013)
demonstrated that transformational leadership was significantly associated with organizational
citizenship behaviors, which contribute to overall organizational effectiveness. These behaviors
include voluntary acts of cooperation, altruism, and extra-role contributions by employees that
enhance team dynamics and operational efficiency.
In summary, recent literature on transformational leadership theory underscores its significance in
driving employee motivation, creativity, commitment, innovation, and overall organizational
performance. The theoretical framework has been supported by empirical evidence across diverse

16
industries and organizational contexts, highlighting its enduring relevance in contemporary
leadership research and practice Zhu, W., Chew, I. K., & Spangler, W. D. (2005).

2.4.2 Transactional theory

Transactional leadership theory, as proposed by Burns (1978) and further developed by Bass (1985),
focuses on the exchange relationship between leaders and followers. This approach emphasizes the
use of contingent rewards and corrective actions to motivate followers and achieve organizational
goals. Transactional leaders engage in a form of give-and-take with their subordinates, providing
rewards for performance and using disciplinary measures when necessary to ensure compliance
with established standards.
Bass (1985) identified three key components of transactional leadership: contingent reward,
management by exception (active), and management by exception (passive). Contingent reward
involves setting clear expectations and rewarding followers for meeting performance targets.
Management by exception (active) entails monitoring performance closely and taking corrective
action when deviations occur, while management by exception (passive) involves intervening only
when problems arise or standards are not met.
Recent research has continued to explore the impact of transactional leadership on various aspects
of organizational performance. For instance, a study by Judge and Piccolo (2004) found that
transactional leadership was positively associated with employee satisfaction and task performance
in a sample of military personnel. Similarly, a meta-analysis by Wang, Oh, Courtright, and Colbert
(2011) revealed a positive relationship between transactional leadership and employee performance
across different industries.
Moreover, the relevance of transactional leadership in contemporary organizational settings has
been highlighted by scholars such as Podsakoff, MacKenzie, Moorman, and Fetter (1990). Their
research emphasized the role of contingent reward in shaping employee motivation and
performance, particularly in contexts where clear performance expectations and rewards are
essential for achieving organizational objectives.
Furthermore, the influence of transactional leadership extends beyond individual-level outcomes to
broader organizational performance indicators. A study by Podsakoff, MacKenzie, Paine, and
Bachrach (2000) demonstrated that transactional leadership was significantly associated with
organizational citizenship behaviors, which contribute to overall organizational effectiveness. These

17
behaviors include compliance with organizational rules and regulations, as well as
conscientiousness in meeting job requirements.
In summary, recent literature on transactional leadership theory underscores its significance in
driving employee satisfaction, task performance, compliance, and overall organizational
performance. The theoretical framework has been supported by empirical evidence across diverse
industries and organizational contexts, highlighting its enduring relevance in contemporary
leadership research and practice (Bachrach, 2000).

2.5 Empirical Literature Review

The empirical literature review section of this research thesis was to provide a comprehensive
overview of the existing empirical studies that have investigated the effects of transformational
leadership on organizational performance, specifically within the context of ethio telecom's
southwest region. This review focus on recent studies relevant to the telecommunications industry
and transformational leadership to provide a foundation for the proposed research on the same topic.

2.5.1 Transformational Leadership and Organizational Performance

Recent empirical studies have examined the relationship between transformational leadership and
organizational performance in various organizational settings. For instance, a study by Avolio,
Walumbwa, and Weber (2009) found that transformational leadership was positively associated
with follower satisfaction, motivation, and performance in a large telecommunications company.
This study provides insights into the potential impact of transformational leadership on employee
outcomes within the telecommunications industry, which is directly relevant to the context of ethio
telecom. In a similar vein, a meta-analysis by Wang, Oh, Courtright, and Colbert (2011) synthesized
findings from multiple studies and demonstrated a significant positive relationship between
transformational leadership and organizational performance across different industries. The meta-
analysis included recent studies from diverse organizational contexts, thereby providing broad
support for the notion that transformational leadership can have a positive impact on organizational
performance.

Furthermore, empirical research specific to the telecommunications industry has also highlighted
the importance of transformational leadership in driving organizational effectiveness. For example,
a recent study by Walumbwa, Avolio, Gardner, Wernsing, and Peterson (2008) examined the effects
18
of transformational leadership on employee commitment and found that transformational leaders
were able to inspire higher levels of commitment and performance among their followers. Given
that ethio telecom operates within the telecommunications sector, these findings are particularly
relevant to understanding the potential impact of transformational leadership on organizational
performance within this specific industry. While there is a substantial body of literature on
transformational leadership and organizational performance in various industries, there is a need for
more recent empirical research specifically focused on the context of ethio telecom's southwest
region. Therefore, this proposed research seeks to fill this gap by investigating the effects of
transformational leadership on organizational performance within this specific organizational
context.

In summary, the empirical literature review has highlighted the consistent positive relationship
between transformational leadership and organizational performance across diverse industries.
However, there is a need for more recent empirical research focused on the telecommunications
sector, particularly within the context of ethio telecom's southwest region. The proposed research
aims to contribute to this gap in the literature by examining the effects of transformational
leadership on organizational performance in this specific context.

2.4 Conceptual Framework

Based on theoretical and empirical studies that have been described in the previous chapter, the
conceptual framework of this study highlights the component factors of transformational leadership:
idealized influence, inspirational motivation, intellectual stimulation and individualized
consideration on organizational performance. The conceptual framework of this study can be seen
in Figure 2.1 below

19
Figure 1: conceptual framework

Idealized
influence

Inspiration
Organizational
Transformational motivation
performance
leadership
Intellectual
stimulation

Individual
consideration

Source: own construction based on literature review

20
 CHAPTER THREE
Research Methodology
3.1 Area Description of the Study
The study focus on the southwest region of Ethiopia, where ethio telecom operates. The region is
characterized by its diverse population, economic activities, and telecommunications infrastructure.
The geographical area encompasses urban, semi-urban, and rural areas, presenting a unique context
for examining the effects of transformational leadership on organizational performance within
different settings.

Ethio Telecom was established in the year 2010 through the merger of the former Ethiopian
Telecommunications Corporation (ETC) and the Ethiopian Telecommunications Service. Ethio
Telecom is provider of telecommunication services in Ethiopia and plays a critical role in
connecting individuals, businesses, and government entities across the country. The organization
operates in a highly regulated industry and is subject to government policies and regulations. ETC
has total of 12,288 employees. Southwest region represents a significant operational area for ethio
telecom, encompassing a large customer base and diverse market dynamics. (ETC portal 2023)

The telecommunications industry in Ethiopia is undergoing significant transformation, with

advancements in technology, increasing competition, and evolving customer demands. Additionally,
ethio telecom has been undergoing organizational changes and strategic initiatives to enhance its
service delivery and operational efficiency. These contextual factors create an environment where
the impact of transformational leadership on organizational performance can be critically examined.

3.2 Research Design

The research design encompasses a hybrid approach, combining both qualitative and quantitative
research methods within a descriptive and cross-sectional framework.

The study utilizes a hybrid research design, which integrates qualitative and quantitative data
collection and analysis methods. This allows for a comprehensive exploration of the research
problem by capturing both the depth of qualitative insights and the breadth of quantitative data. The

21
research was employing both qualitative and quantitative research methods. Qualitative methods,
such as interviews and focus groups, were used to gain in-depth understanding of the perceptions,
experiences, and behaviors of employees and leaders related to transformational leadership.
Quantitative methods’, including surveys and statistical analysis, was employed to measure the
impact of transformational leadership on organizational performance using numerical data.

The study adopted both explanatory and descriptive research design to systematically describe the
characteristics of transformational leadership and organizational performance within ethio telecom's
southwest region. This design is well-suited for providing an accurate portrayal of the phenomena
under investigation. To analyze the quantitative data, linear regression analysis was used to examine
the relationship between transformational leadership and organizational performance. This
statistical method will help determine the extent to which transformational leadership behaviors
predict variations in organizational performance indicators. The research was conducted as a cross-
sectional study, collecting data at a single point in time. This approach allows for capturing a
snapshot of the relationship between transformational leadership and organizational performance
within the specific context of ethio telecom's southwest region.

The research design section outlines the hybrid approach incorporating qualitative and quantitative
methods within a descriptive, cross-sectional framework to investigate the effects of
transformational leadership on organizational performance in the context of ethio telecom's keffa
zone ETC. This design is aimed at providing a comprehensive understanding of the research
problem while utilizing recent references to inform the study.

3.3 Population, Sample and Sampling Technique

3.3.1 Population of the study

The population for this research consists of the employees working within ethio telecom's keffa
zone selected wereda, including both direct and indirect sales, technical, and administrative staff.
The most recent references for the population data are as follows:

The population includes the following categories of employees within ethio telecom's keffa zone:

Table 1: Population of the study

Employee in ETC with categories No. of employee

22
 Direct sales 7
Indirect sales 4
Network Technical Workers: 6
Power Workers: 2
Microwave Worker: 2
Run Offers: 2
Financial Officers: 3
Security: 7
Total 33

The total number of internal staff, security personnel, and supervisors in the keffa zone selected
wereda is 33 employees.

3.3.2 Sampling Frame

The sampling frame for this consists of the employees and supervisors of ethio telecom southwest
region, specifically those working in the Bonga branch, Gesha branch, Chena branch, Shishinda
extra shop, and other relevant departments. The sampling frame includes a total of 33 employees,
comprising 6 direct sales employees (3 male and 3 female) with 1 supervisor, 4 indirect sales
employees, 6 network technical workers, 2 power workers, 2 run offers, 2 microwave worker, and 3
financial officers. Additionally, there are 7 security personnel. The sampling frame used to identify
potential participants for the study and ensure that the sample is representative of the entire
organization. Since the number of total population is small the researcher has used total population
sampling technique. Therefore all 33 employees were included in the sample frame. The frame was
utilized to select participants for interviews, surveys, and other data collection methods.

3.4. Sources of Data

The primary and secondary source of information is both useful for this study's objectives. The
secondary source of data was be secured from both published and unpublished documents, and the
primary sources of data was secured using questionnaires provided for Ethio Telecom keffa zone
employees.

23
3.4.1. Primary sources
Primary data was collected from ETC keffa zone selected wereda through, questionnaires and
interview. Interviews with the management and staff members were conducted for this reason.
Respondents who are chosen at random received questionnaires.

3.4.2. Secondary sources

By confirming their dependability, suitability, and sufficiency, secondary data was gathered from
both published and unpublished secondary sources like article organizational reports,
memorandums.

3.5. Data Collection Instruments

To gather crucial and in-depth data from the research area, a face-to-face interview was conducted
with a questioner. The study at hand gathered data in both formal and informal ways. A questioner
was used to gather information from employees pertinent to the study's goal. Additionally, the
researcher has spoken with different level managers in an interview.

3.7 Method of Data Analysis

Both descriptive and inferential data analysis methods were used in the study.

3.7.1 Descriptive Analysis

Descriptive analysis was used at the first phase of the analysis which to analyze general
characteristics of the respondents and to assess the effects of organizational conflict on employee
job performance of the organization. The collected data from study population using different
sources and instrument was summarized by using Excel and transferred to SPSS version 25 to
analyze in terms of descriptive statistics such as Percentages, Mean and Standard deviation. The
output obtained from the software was presented by using tabulation of data followed by the
analysis. Mean and Standard deviation scale as a measure of central tendency was used to show
where the majority of responses concentrate i.e. nearer to which scale the representative middle
value of responses is found.

24
3.7.2 Correlation Analysis
In this study, correlation analysis was used to analyze the data obtained from the respondents in
relation to the variables of the study and was used to analyzed the relationship between the
independent and dependent variables of the study. As a statistical tool, Pearson product-Moment
Correlation was used to test relationship strength and directions between pairs of variables. The
correlation coefficient was also be calculated by using SPSS.

3.7.3 Regression Analysis

In the Regression Analysis, the multiple regression models were used to determine the effect of
independent variable (transformational leadership) on the dependent variable (organizational
performance).

3.8 Model Specification:

The proposed study aims to investigate the effects of transformational leadership on organizational
performance in the case of Ethio Telecom (ETC) keffa zone. The study focus on the impact of four
key dimensions of transformational leadership, namely idealized influence, inspirational motivation,
intellectual stimulation, and individualized consideration, on organizational performance.

Dependent Variable:

 Organizational Performance: The dependent variable in this study is organizational

performance, which was measured using a composite index derived from key performance
indicators such as financial performance, customer satisfaction, employee engagement, and
operational efficiency.

Independent Variables:

1. Idealized Influence: This dimension of transformational leadership refers to the leader’s ability to
serve as a role model and inspire followers through their own behavior and actions.

2. Inspirational Motivation: This dimension involves the leader’s ability to articulate a compelling
vision and motivate followers to achieve higher levels of performance.

25
3. Intellectual Stimulation: This dimension focuses on the leader’s capacity to challenge followers’
assumptions, encourage creativity and innovation, and promote critical thinking.

4. Individualized Consideration: This dimension pertains to the leader’s personalized attention to the
needs and development of individual followers, fostering a supportive and empowering
environment.

Model Specification:

The relationship between the independent variables (idealized influence, inspirational motivation,
intellectual stimulation, individualized consideration) and the dependent variable (organizational
performance) were examined using a multiple regression model. The multiple regression models is
suitable for handling censored data and can account for the limitations in the range of values that
may be observed in organizational performance measures. The model control for relevant covariates
to isolate the effects of transformational leadership on organizational performance while controlling
for external factors that may influence the relationship.

 Multiple regression models

𝑌= 𝛽0 + 𝛽1𝑋1 + 𝛽2𝑋2 + 𝛽3𝑋3 + 𝛽4𝑋4 + 𝜀

Y- Organization performance
X1-Idealized influence
X2-Inspiration motivation
X3-Intellectual stimulation
X4-Individual consideration
e- Error term

3.9. Reliability and Validity

In order to ensure the reliability of the data and measurements used in your study, several key
strategies were employed:

All data collection methodologies, such as surveys, interviews, or observations, were standardized
to maintain consistency and uniformity in data gathering across different respondents and data
collection points. Before the commencement of the main data collection phase, a pilot study was
conducted to assess the clarity and appropriateness of the survey instruments and methods. This
26
pilot testing ensures that the tools effectively capture the intended information and are
comprehensible to respondents.

Ensuring the validity of my research involves measures to ensure that the study accurately captures
and measures the intended constructs. The survey instrument and interview protocols was undergo
rigorous review and assessment to ensure that they capture the full breadth and

Where applicable, existing validated scales or measures was utilized to capture the key constructs
under investigation. This ensures that the measurement tools align with theoretical concepts and
constructs The survey instruments and interview protocols was scrutinized to ensure that they
appear to measure what they intend to measure with minimal ambiguity. Where relevant, the
measures was assessed against external criteria or existing measures known to be related to bank
selection decisions, providing evidence for the validity of the measures used.

These measures, aimed at establishing both the reliability and validity of the data and measurements
used in the study, was ensure the trustworthiness and accuracy of the findings. By incorporating
these measures, my research upholds the quality and integrity of the data and contributes to the
overall rigor of the study.

3.10 Ethical Considerations

Prior to engaging with participants, the research team seeks informed consent, ensuring that all
individuals involved fully understand the nature and requirements of their participation. Participants
were informed of the study’s objectives, potential risks and benefits, and their right to withdraw
from the study at any point without facing any repercussions. All information obtained from
participants was handled with the utmost confidentiality. Data was anonymized during analysis, and
any dissemination of study findings was not including any personally identifiable information to
ensure the privacy and comfort of all participants. The research team is committed to upholding the
privacy and dignity of all participants involved in the study. Care is taken to ensure that no personal
information is disclosed without explicit consent, and participants’ responses were treated with
respect and sensitivity.

Every effort was made to minimize any form of harm or discomfort to the participants. The research
team was provide clear guidance and support to ensure that participants feel safe and respected

27
throughout their involvement in the study. This research project was adhere to established research
ethics guidelines, ensuring that it meets the ethical standards and considerations set forth by the
relevant institutional review board (IRB) and follows the ethical guidelines of academic and
professional associations. All data collected will be handled and stored in compliance with relevant
data protection regulations, safeguarding the privacy and security of participant information
throughout the research process. Particular attention was given to ensuring equitable treatment and
fairness across all participant groups, regardless of factors such as age, gender, ethnicity, or socio-
economic status.

By integrating these ethical considerations within the research process, this study prioritizes the
well-being and integrity of all individuals involved, upholding the highest ethical standards and
ensuring the trust and accountability of the research team.

28
 CHAPTER FOUR
RESEARCH AND DISCUSSIONS
4. Introduction
In this chapter, the researcher presents the findings of the research study. Both quantitative and
qualitative techniques were employed by the researcher. Each research objective was subjected to
analysis and each finding interpreted using tables and graphs.

4.1 Presentations of Research Findings

This part deals with the presentation of major findings in the research.

4.1.1 Response Rate

Table 2: Response rate Category Frequency Percentage

Category Frequency Percentage

Returned 31 95
Non Returned 2 5
Total 33 100

From Table 4.1 above, a total of 33 questionnaires were submitted and 31 were filled and
returned which translates to 95% and only 5% were not returned.

4.2 Reliability and Validity Analysis

4.2.1 Validity test

The degree to which a scale measures what it is intended to assess is referred to as its validity. To
ensure that each item in this study measures what is intended to be measured, to measure the
attributes of interest, for the instrument to be predictable, consistent, and accurate, and to ensure
face and content validity, the principal advisor and co-advisor carefully reviewed each question.

29
4.2.2 Reliability Analysis
The reliability of scale demonstrates how free of random mistake the data is. Therefore, choosing
a trustworthy scale is usually advisable. Internal consistency is one of the most often used
reliability grading scales. Internal consistency, or how well the items "hang together, is defined as
the extent to which the items that make up the scales are all measuring the same underlying
attributes (Dong, 2021). In order to evaluate the reliability of the measuring scales employed in
the study, the Cronbach Alpha method was used.

Table 3: Reliability Statistics for each TL /N=31/

Transformational No. of item Cronbach’ alpha

leadership
Idealized influence 4 0.788
Inspiration 3 0.800
motivation
Intellectual 3 0.755
stimulation
Individual 3 0.866
consideration
Overall, TL 13 0.802
Source: Own questionnaire survey, computed in SPSS output, 2024

As can be seen in Table 3, the variables scored from good to acceptable alphas Idealized
influence has an acceptable reliability with α = 0.788 Inspiration motivation has an good
reliability with α=0.800, Intellectual stimulation has a acceptable reliability with α=0.755,
Individual consideration has an acceptable reliability with α=0.866. Therefore, based on the
above test results, we can conclude that, all factors sub-scales scored an acceptable Cronbach’s
coefficient Alpha and the instrument is found reliable for measuring the independent variable.

Table 4: Reliability for organizational performance /N=31/

Item No. of item Cronbach’ alpha
Organizational performance 5 0.790
Source: Own questionnaire survey, computed in SPSS output, 2024

As indicated in table 4, the instrument was found reliable for measuring the dependent variable

30
organizational performances.

4.1.2 Gender of Respondents

Table 5 Gender of Respondents
Gender Frequency Percentage
Male 19 61.4
Female 12 38.6
Total 31 100

Figure 2: sex respondent

From Table 4.2 above, majority 61.4% of the respondents were male and 38.6% of the respondents
were female. According to Eagly (2013), gender distribution is greatly affected by the type of
leadership an organization has. In this research, the male gender is highly affected by the leadership.
4.1.3 Age of Respondents
Table 4.3: Age of Respondents

Age Frequency Percentage

Less than 31 4 14
years

31
 32 to 39 18 57.9
years
40 to 49 5 15.8
years
50 to 59 4 12.3
years
Total 31 100

Figure 3: experience

From Table 4.3, the majority 57.9% of respondents were of the age 32 to 39 years, 15.8% were of
the ages 40 to 49 years, 14% of the respondents were below 31 years and only 12.3% were between
50 to 59 years. We can therefore conclude that the organization has experienced personnel hence
their abilities to deliver to the organizational goals is quite high.

4.1.4 Duration of Service

Table 4.4: Duration of Service of Respondents

Length of Frequency Percentage

service
<1 year 2 7
Between 1- 5 9 29.8
years

32
 Between 6- 15 49.1
10 years
Between 11- 3 8.8
15 years
Above 15 2 5.3
years
Total 31 100

From Table 4.4 above, the majority of the respondents 49.1% had worked for 6 -10 years in the
organization, 29.8% had worked for 1 – 5years in the organization, 8.8% of respondents had worked
for 11 - 15 years, 7% worked less than a year and only 5.3% had worked for 15 years and above in
the company. We can conclude from the findings that organization has a good retention policy for
its employees. He results concur with Main (2008) who pin points that recruiting new employees is
a costly, time consuming and tedious endeavor for any company.

Therefore, organization should develop well managed retention strategies so as to ensure their
valued staffs are happy at respective work stations.

4.1.5 Various Positions Held by Respondents

Table 5 Various Positions Held by Respondents
Position Fr Percentage

33
 eq
ue
nc
y
Operational/support 22 71.9
Employees
Supervisors 7 22.8
Top management 2 5.3
Total 31 100

The research went ahead to establish the positions of various respondents groups. From Table 4.5
and Figure 4.5 above, 71.9% of the respondents and majority were operational/support employees,
22.8% were supervisors and only 5.3% were top managers. From this finding, we can conclude that
there is a clear vertical and horizontal chain of commands within the organization.

4.1.6 Highest Education Level of Respondents

Table 6: Highest Education Level of Respondents
Level of Frequency Percentage
Education
Certificate 4 13.3
Diploma 9 28.1
Degree 16 52.6
Masters 2 7
Total 31 100

Figure 4: education

34
In establishing the education level of the researcher, Table 4.6 and Figure 4.6 above shows that
52.6% majority of the respondents were degree holders, 28.1% were diploma holders, 12.3% were
certificate holders and only 7% had masters qualification. One can deduce that from the findings the
company has well educated employees whom can understand transformational leadership. These
results are consistent with Armstrong (2001) who posits that an organization requires highly skilled
personnel to cope up with the ever changing business environment.

4.1.7 Descriptive Statistics

This was represented by distributions tables, averages and standard deviations.

4.1.7.1 Effects of Inspirational Motivation on Organizational performance

Table 7: Frequency Distributions table of Inspirational Motivation

Statements Percentage% Total
1 2 3 4 5
My team 29.1 46.5 23.2 1 0.2 100
gives me
support
All 45.4 42.4 9 2.2 1 100

35
employees
are
empowered
to attain
business
goal
The vision 30.3 41.5 21.4 4.2 2.6 100
of the
company is
well
articulated
by my
Manager

The researcher wanted to find out how inspirational motivation impacted the performance of
employees who determine the performance of the organization. From Table 4.7, the majority 46.5%
agreed they received support from his/her team, 29.1% strongly agreed, 23.2% chose to remain
neutral while 1.0% disagreed and only 0.2% of the respondents strongly disagreed with the
statement number one in Table 4.7 above. A successful teamwork relies upon synergism existing
between all team members creating an environment where they are all willing to contribute and
participate in order to promote and nurture a positive, effective team environment. (Luca, 2001).
Also from Table 4.7 above, the majority 45.4% strongly agreed employees were all empowered to
attain the specific business goals, 42.4% agreed, 9% chose to be neutral in regards to empowerment
and business goals, 2.2% and 1% of the target respondents disagreed and strongly disagreed
respectively with the above statement on empowerment in order to attain set goals. The results
concur with Alshamari, Almutari and Thuwaini (2015), who note that through proper motivation
strategies employees, get to be more productive. Motivated employees always strive to accomplish
specific goals set by their leaders.
Lastly, from Table 4.7 above, the majority 41.5% agreed that their manager articulated the company
visions and goals to them properly. This was further strongly supported by 30.3% of the respondents
who agreed that their manager articulated the company visions and goals to them properly. 21.4%

36
chose to remain neutral while 4.2% and 2.6% of the respondents disagreed and strongly disagreed
respectively. This is in agreement with Alshamari et al., (2015) inspirational motivation aids leaders
to stay determine to achieve the goals and objectives of the organizations without being distracted
by any circumstances that may arise along the way. They further argue out that, inspirational
motivation as ethics, stating that leaders tend to make ethical decisions when they show concern for
organizational and follower goals and motivation respectively.

4.1.7.2 Effects of Individualized Consideration on Organizational performance

Table 8 Effects of Individualized Consideration Distribution Table
Percentage%
SECTION D: Individualized 1 2 3 4 5 To
Consideration tal
s

The current leaderships give me 4 3 2 1 0 10

the support to tackle daily 0 5 2 . 0%
challenges I face at work. . . . 3
2 7 8
I am given necessary support to 5 4 5 1 0 10
improve my performance at 0 2 . . 0%
work . . 7 3
2 8
The current leadership 4 5 3 1 0 10
communicates back on how I 3 1 . . 0%
have performed . . 1 1
4 6
The researcher employed three statements to examine how individualized consideration affected
employee performance as well as the company.
First the researcher examined how the leadership aided its employees in dealing with challenges at
work. From Table 4.8 above, 40.2% majority stated that the leadership in place greatly supports
them to handle day to day challenges at work; this was also supported by 35.7% whom agreed on
the same. 22.8% of the respondents chose to hold their decision on this statement. However, 1.0%

37
and 0.3% of the respondents disagreed and strongly disagreed respectively about getting support
from the current leadership they served. We can therefore imply that at keffa zone ETC, the
leadership in place believes in its employees to handle various new ventures and giving them the
necessary tools and support needed to succeed in their tasks. According to Conger (2014),
individual consideration is the inclusion of people to be part of something or a task. He further
asserts that, this involves giving them an opportunity to showcase their abilities with new tasks with
the help of a transformational leader. Secondly the researcher went ahead to establish the extent to
which the support received from the current leadership impacted the performance of the employees
under study. From Table 4.8 above, it is clear that 50.2% of the respondents strongly agreed and
42.8 % agreed that the leadership in place contributes much to their performance at work. 5.7% of
the respondents reserved their comments on the same subject. However, 1.3% of the respondents
felt that the current leadership did not do much to influence their performance at work. This means
that, at keffa zone ETC the performance of its employees is the result of their leadership in place. A
good leadership style greatly influences positive employees’ performance. With the necessary
support accorded to each employee, then performance is highly likely (Conger, 2014).

Lastly, the researcher sought to find out whether the respondents were aware of their performance
reports. From Table 4.8 above, the majority 51.6% agreed that there existed channels in which they
could get feedback in regards to their performance and 43.4% of the respondents strongly supported
this statement even further. 3.0% of the respondents were neutral and 1.1% and 0.9% of the
respondents did not share the same opinion. From the above findings above, we can deduce that at
keffa zone ETC has a well-structured communication system where information flows in both
directions from leaders to followers and from followers to leaders. Feedback is very important for
any communication. With leaders and their followers communication is key. Views on each step a
leader takes always have reactions from its followers and vice versa. When employees perform a
task they in turn expect in return an evaluation or assessment of their work which must always be
communicated by their leader (Conger, 2014). Individualized consideration is implemented after
newly discovered opportunities are crafted alongside a supportive climate (Long, Yusof, Wan,
Kowang, Tan and Heng, 2014).

4.1.7.3 Effects of Intellectual Stimulation on Organizational performance

Table 9: Effects of Intellectual Stimulation Distribution Table
Statements Percentage% Total
38
 1 2 3 4 5
I am given 38.2 51.3 9.3 1. 0 100
chances to 2
think of new
ideas to
improve my
work
I am given 38.9 52.8 5.8 2. 0 100
opportunity to 5
reinvent
solutions to old
problems
My ideas to 35.2 56.5 6.4 1. 0 100
various 9
problems are
welcomed
positively

The researcher resort to find out how various respondents reacted to intellectual stimulation at work
by framing statements that portrayed intellectual stimulation. From Table 4.9 above, the researcher
found out that 51.3% of the respondents agreed that they received freedom to reinvent old ideas and
come up with new ideas at their respective work stations. This was also strongly supported by
38.2% of the respondents whom strongly agreed. 9.3% of the respondent’s reserved their comments
and chose to be neutral. However, 1.2 % of the respondents did not agree with the above statement.
It is clear that, the employees at keffa zone ETC have ample opportunity to engage in new ideas
aimed at improving their work stations. According to Conger (2014), the employees are in better
position to improve their current working conditions as they constantly interact with the system
making them well versed with each aspect of the system.
The researcher wanted to know how problems were handled by employees. From table 4.9% above,
it is quite clear that the majority 52.9% stated that they had opportunity to rethink and re-evaluate

39
old problems and later develop new solutions to such problems. This was strongly seconded by
38.9% of the respondents. 5.8% of the respondent’s reserved their comments and chose to be
neutral. However, 2.5% of the respondents found this statement inadequate to their line of
operations. It is clear from the above findings, that at at keffa zone ETC, employees have ample
opportunity to think outside the box and reinvent new ways of doing things. Conger (2014), argues
out that a leadership regime that allows its followers to be creative and innovative by developing
new ideologies to existing problems is one that succeed in this modern business world.
The researcher also went ahead to establish how the leadership and management viewed the ideas of
its employees to various challenges assigned to them. From table 4.9% above, we can see that
56.5% of the respondents stated that their ideas were perceived positively and this was even
supported by 35.2% of the respondents whom strongly supported this statement. Unlikely the
researcher was unable to get the views of 6.4% of the respondents in regards to this subject matter.
However, 1.9% of the respondents disagreed and stated that their ideas were not received positively.
It is evident that, the leadership at keffa zone ETC recognizes and appreciates the contribution of
its employees no matter how small it is. Its employees are deemed trivial to the decision making
process. Conger (2014), this is not correct, you had earlier indicated this statement was from a
different author Please be truthful in your citations argues that leadership that stimulates followers
to be creative and innovative, and to challenge their own beliefs and values as well as those of the
leader and the organization is critical for the performance of the organization.

4.1.7.4 Effects of Idealized Influence on com on Organizational performance

Table 10: Effects of Idealized Influence Distribution Table
Statements Percentage% Total
1 2 3 4 5
The behavior of 29 54 11 6 0 100
my Manager
portrays his/her
ethical attributes
The way my 53 35 8 4 0 100
manager conducts
himself/herself
gives me the

40
confidence to face
risks ahead
Am proud to be 59 33 6 2 0 100
associated with my
manager since he
acts as a mentor
and role model to
me.
The way my 40 55 4 1 0 100
manager conducts
himself/she raises
my confidence in
him/her.

The researcher sought to establish the extent to which respondents agreed to the four metrics
developed by the researcher to understand how idealized influence impacted the employees’
performance at their respective work stations.
From Table 4.11 above, the researcher found out that the majority 54% of the respondents were of
the idea that their managers’ behavior resembles certain ethical attributes they observed. This was
further supported by another 29% of the respondents whom strongly agreed that the behavior they
observed in their manager portrayed his/her ethical attributes. 11% chose to remain neutral to this
subject matter however, 6% of the respondents refuted this statement and stated that the behavior of
their managers did not rhyme with the ethical attributes they witnessed. From the above findings,
management can boost in its leaders for having sticking to the at keffa zone ETC code of ethics.
This is vivid as majority of the respondents could clearly see certain ethical attributes from their
behavior which is a good thing for the organization. From the findings of the above table, we can
relate to what Alshamari, Almutari and Thuwaini (2015) found where they stated that leaders who
demonstrated ethical values and leadership to their employees in deed affect the performance of
their employees. On the other hand, Brown and Trevin (2006) argue that a moral manager implies
that a leader talks about ethics openly and explicitly thereby empowering his/her employees
demonstrate just and advocate for justice.

41
The researcher also resort to establish whether the respondents were in a position to face risks just
from the way their managers carried themselves around. From Table 4.11 above, it is clear that the
majority 53% of the respondents strongly agreed that they got the courage to handle challenges just
because their manager looked confident. Further 35% of the respondents supported this theory.
Unfortunately, the researcher was unable to get the contribution from 8% of the respondents whom
chose to remain neutral to this ideology. However, 4% of the respondents were of the contrary
opinion and disagreed with this statement. This is a positive thing for the management of at keffa
zone ETC since majority of its employees and leaders are quite confident in what they do which
shows that the team is well trained and aware of their expected of them at all times. According to
Alshamari et al., (2015), if a leader is confident then his/her follow will always be confident and
will further pursue more challenges hence getting them to be risk takers.
The researcher went ahead to find out the extent to which the employees viewed their leaders at
work. The findings from Table 4.11 above show that, majority 59% of the respondents strongly
viewed their leader as mentors and role models at their respective work stations. A further 33% of
the respondents echoed this statement. However, 6% of the respondents chose to reserve their views
on the above statement while 2% disagreed and were of the contrary opinion. This implies that, the
employees of at keffa zone ETC growth are imminent and future leaders of the company will
certainly arise from the current staff under mentorship of their leaders. It therefore allows the
management of at keffa zone ETC to forge its future leaders. Alshamari et al., (2015), argues out
that a successful leader portrays him/her to be of exemplary image where his followers would
emulate him/her. He also adds that, on top of being a role model, a leader should also be able to
offer personal support to his/her followers so as to nature them.

The researcher also wished to establish whether employees derived confidence just from the
conduct of various managers. From Table 4.11 above, it is quite vivid that the majority 55% of the
respondents agreed that they got the confidence to work just from the way their leaders carry
themselves around. 40% of the respondents echoed further this ideology. However, 4% of the
respondents remained neutral reserving their opinions and only 1% of the respondents disagreed
unconditionally. According to Alshamari et al., (2015), if a leader is confident then his/her follow
will always be confident. It is basically an influence instill by leaders to their followers.

42
4.3 Summary of Data Analysis

4.3.1 Inspirational Motivation

The researcher wanted to find out how inspirational motivation impacted the performance of
employees who determine the performance of the organization. The majority 46.5% agreed they
received support from his/her team and 29.1% strongly agreed. Also the majority 45.4% strongly
agreed employees were all empowered to attain the specific business goals. Therefore, we can state
that over 50% of the respondents were of the opinion that various aspects of inspirational motivation
influence the outcome of an organization. According to Alshamari, Almutari and Thuwaini (2015)
inspirational motivation aids leaders to stay determine to achieve the goals and objectives of the
organizations without being distracted by any circumstances that may arise along the way. Banjeri
and Krishnan (2000) argues inspirational motivation as ethics, stating that leaders tend to make
ethical decisions when they show concern for organizational and follower goals and motivation
respectively. These findings are in line with what Lord and Brown (2004), Flynn and Staw (2015)
found that employees are in a better position to meet their targets and set limits and even surpass
these limits through proper effective inspirational leaders as they are known to influence and instill
risk behavior among their followers. The employees are able to achieve organizational goals as their
leader encourages them to venture into new methodologies of doing things and take on new
challenges through motivation and teamwork hence enhance the capacity of their followers who
finally achieve sense of job satisfaction and organizational commitment (Walumbwa & Lawler,
2003).

4.3.2 Individualized Consideration

The researcher employed three statements to examine how individualized consideration affected
employee performance as well as the company. The majority 40.2% stated that the leadership in
place greatly supports them to handle day to day challenges at work; this was also supported by
35.7% whom agreed on the same. In addition 50.2% of the respondents strongly agreed and 42.8 %
agreed that the leadership in place contributes much to their performance at work. The researcher
also established that the majority 51.6% agreed that there existed channels in which they could get
feedback in regards to their performance. Therefore, we can state that over 50% of the respondents
were of the opinion that various aspects of individualized consideration influence the performance
of an organization. Transformational Leaders who welcome change always listen to the opinion of
their followers and advise them accordingly. They also make sure those issues troubling their
43
subjects are well tackled, hence endearing themselves more to those being led. Such leaders are
keen listeners, because they understand that it is through listening, they are able to learn new ideas
and also develop themselves and their followers intellectually.
According to Okechukwu and Godday (2015), this aspect is a good example of leaders who give a
listening ear to their followers and support them where necessary. Leaders who are champions of
change also take the responsibility of teaching their followers hence helping them to come into
reality with matters of importance. Individualized consideration is implemented after newly
discovered opportunities are crafted alongside a supportive climate (Long, Yusof, Wan, Kowang,
Tan and Heng, 2014).

4.3.3 Intellectual Stimulation

The researcher resort to find out how various respondents reacted to intellectual stimulation at work
by framing statements that portrayed intellectual stimulation. The researcher established that 51.3%
of the respondents agreed that they received freedom to reinvent old ideas and come up with new
ideas at their respective work stations which was also strongly supported by 38.2% of the
respondents whom strongly agreed. It is quite clear that the majority 52.9% stated that they had
opportunity to rethink and re-evaluate old problems and later develop new solutions to such
problems. This was strongly seconded by 38.9% of the respondents. The researcher also went ahead
to establish how the leadership and management viewed the ideas of its employees to various
challenges assigned to them. 56.5% of the respondents stated that their ideas were perceived
positively and this was even supported by 35.2% of the respondents whom strongly supported this
statement.
Northouse (2001) argues that leadership that stimulates followers to be creative and innovative, and
to challenge their own beliefs and values as well as those of the leader and the organization is
critical for the performance of the organization. Mwesigwa and Namiyingo (2014) state that leaders
who are open-minded tend to intellectually influence their followers. Such leaders will want to
challenge the rule of thumb and make a case out of every argument; this stimulates their
subordinates to intellectually challenge themselves even more. With more cognitive thinking, the
people are able to gain more knowledge, which helps to better their lives. Transformational leaders
are always in the fore front to challenge assumed information. They make sure that every bit of fact
has been argued to satisfy its validity. Such leaders encourage people to think critically and make
mistakes as it is the only way they are able to learn new ways of doing things ( (Hassan, Malik,
44
Hasnain, Faiz & Abbas, 2013). With such encouragement, employees are able to venture more into
the unknown and hence discover new potential.

4.3.4 Idealized Influence

Under the four metrics developed by the researcher to understand how idealized influence impacted
the employees’ performance at their respective work stations the majority 54% of the respondents
correlated managers’ behavior to certain ethical attributes they observed. This was further supported
by another 29% of the respondents whom strongly agreed that the behavior they observed in their
manager portrayed his/her ethical attributes. Also the majority 53% of the respondents strongly
agreed that they got the courage to handle challenges just because their manager looked confident.
Further 35% of the respondents supported this theory. A further 59% of the respondents strongly
viewed their leader as mentors and role models at their respective work stations. This was echoed
further by 33% of the respondents. The majority 55% of the respondents agreed that they got the
confidence to work just from the way their leaders carry themselves around. 40% of the respondents
echoed further this ideology.
According to Ponnu and Tennakson (2009) if employees trust their leaders, then compliance to the
organizational norms and values will be easy for the employees to appreciate hence increase in
overall performance. According to Guonans (2005), a combination of trust and support helps
employees to be more productive. When managers act as role models to their respective juniors,
they are influenced to follow the footsteps of their managers as they perceive him/her as their role
model. Chin et al., (2009) did a research and found out that employees tend to resonate with a
leaders vision when they perceive their leader as a role model.

4.4 Inferential Analysis

4.4.1 Pearson’s Correlation Coefficient

Correlation analysis determines the strength as well as the direction of the relationship between the
45
study variables, specifically, Idealized Influence, Inspirational Motivation, Intellectual Stimulation
and individual consideration (independent variables), and the organizational performance, which is
the dependent variable. Pearson's production movement correlation coefficient was employed by the
researcher. According to Chee et al. (2015), Pearson‟s coefficient is a measure of the linear
relationship between two interval or ratio variables and can have a value between -1 and 1. The
advantage of utilizing Pearson's coefficient is that it provides a simple technique to evaluate the
relationship between two variables. Whether they share valiance, if the relationship is positive or
negative, and the degree to which they correlate. As for the strength of the relationship, the closer to
+ or -1, the stronger, the closer to 0 the weaker & the cut-off points for the interpretation of the
strength of correlation coefficients are: (+ or-) 0.80 to (+ or-) 1 is very strong; (+ or-) 0.50 to (+ or-)
0.79 is Strong correlation; (+ or-)0.30 to (+ or-) 0.49 is moderate correlation; (+ or-) 0.10 to (+ or-)
0.29 is a weak correlation (Muijs, 2016)

4.4.1.1 The relationship between transformation leadership and organizational

performance
Table 11: Pearson correlation coefficient range

Pearson correlation coefficient (r) value Strength

(+ or-) 0.80-1 Very Strong
(+ or-) 0.50-0.79 Strong

(+ or-) 0.30-0.49 Moderate

(+ or-) 0. 10-0.29 Weak

Table 12: Correlation of transformation leadership and organizational performance

Correlations

46
 Ide Inspir Intell Indiv organiza
aliz ational ectua iduali tional
ed Motiv l zed perform
Infl ation Stim Consi ance,
uen ulatio derati
ce n on
Pear
son
Corr 1 .571** .723** .787** .865**
elati
Idealized on
Influence Sig.
(2-
.001 .000 .000 .000
taile
d)
N 31 31 31 31
Pear
son
Corr 1 .424* .594** .660**
elati
Inspirational on
Motivation Sig.
(2-
.018 .000 .000
taile
d)
N 31 31 31
Pear
son
Corr 1 .683** .714**
elati
Intellectual on
Stimulation Sig.
(2-
.000 .000
taile
d)
N 31 31

47
 Pear
son
Corr 1 .953**
Individualize elati
d on
Consideratio Sig.
n (2-
. .000
taile
d)
N 31
Pear
son
Corr 1
elati
organizationa on
l
Sig.
performance,
(2-
taile
d)
N 31
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).
Source: Own questionnaire survey, computed in SPSS output, 2024

As table 12 depicts, Idealized Influence is represents the statistically positive relationship with
organizational performance correlation (r =.865, N = 31, p<0.000), showing idealized influence has
a strong positive relationship with organizational performance. Inspirational Motivation (r =.660, N
= 31, p<0.000) is strong correlated with organizational performance. Intellectual Stimulation is
correlation (r=.714, N = 31, p<0.000) shows strong positive correlations with organizational
performance, Individualized Consideration is represents the statistically positive relationship with
organizational performance correlation (r=.953, N=31, p<0.000).

Therefore, there is a significant positive relationship between effect of transformational leadership

and organizational performance in ETC.

4.4.2 Multiple Linear Regression Analysis

In the previous section of this paper, the descriptive and correlation analysis was carried out
48
separately with the existence of an association between the dependent and independent variables.
Presented the effect of overall transformational leadership over organizational performance and it
was found that there is an effective relationship between these variables in the ETC. Moreover, it
was also evidenced that overall detriments of transformational leadership significantly in the ETC.
On the other hand, after testing for different assumptions, the following section examined the
individual effect of transformational leadership on organizational performance and helped us
identify which effect has a more unique effect on organizational performance than the others. In
conducting multiple regression analysis using the regression equation, as suggested by Linnertz
(2012), key assumptions should be met Consequently, to perform the regression analysis involving
multiple independent variables, the researcher must check for the variables have a linear
relationship, the data were normally distributed, homogeneity of variances, and there is no
collinearity between independent variables and autocorrelation (to determine the separate effect of
individual transformational leadership). In this regard, the researcher tested the assumptions of
normality, linearity, multicollinearity, homoscedasticity were presented as follows.

4.4.2.1 Assumption testing

4.4.2.1.1 Normality test

As Ghasemiet al. (2012), noted, the assumption of normality is important in research while using
regression and helps to generalize the results of the analysis beyond the sample collected. The linear
regression analysis calls for all variables and is referred to as a normality test. Normality tests can
be seen in the data distributed when the curve does not pass through either the lift or the right
Ghasemi et al.(2012), this shows that the data output was normally distributed. There, the researcher
used histogram methods if the residuals are normally distributed about its mean of zero, the shape
of the histogram should be bell-shaped, and regression standardized residual plotted between -3.3
and 3.3. The data normality is shown in the figure below.

49
Figure 5: Histogram
Source, own questionnaire survey, computed in SPSS output, 2024

4.4.2.1.3 Linearity test

According to Hayes (2012), the relationship between the independent and dependent variables
needs to be a linear function to conduct a linear regression analysis. To check the linearity
assumption in multiple linear regressions, the normal P-P plot was used, the plot shows all observed
values somewhat spread along the straight diagonal line. Figure 5 below shows us that most of the
observed values are spread very close to the straight line; there is a high likelihood that the data are
linear.
Therefore, the assumption of multiple linear regressions has been met and we can assume that the
model is accurate and can likely generalize to the population in ETC.

Figure 6: Linearity of TL and OP

50
Source: Own questionnaire survey, computed in SPSS output, 2024

4.4.2.1.4 Multicollinearity
According to Charles et al. (2009), most regression programs can compute the variance inflation
factor (VIF) for each variable, and as a rule of thumb, a VIF above 5.0 shows problems with the
multicollinearity test.
Although many statisticians believe that values for "tolerance" below 0.2 are cause for concern
Wasserstein et al. (2019), emphasizes that values for "tolerance" below 0.1 indicate major
difficulties. Regression analysis's multi-collinearity measures how closely related a model's
independent variables are to one another. As we can see from the following table 15, the tolerance
values are 0.302, 0.617, 0.441, 0 . 3 2 4 respectively, for each independent variable (idealized
influence, inspiration motivation, intellectual stimulation and individual consideration, which are
51
above 0.10, and the variance inflation factors (VIF) values are also 3.314, 1.622, 2.266, and 3.087,
respectively. Therefore, in this study, the table below shows that the variance inflation factors (VIF)
and tolerance fall within the acceptance range (VIF below 10, tolerance above 0.1).

Table 13: Collinearity Diagnosis ETC performance

Collinearity Statistics

Tolerance VIF

Idealized influence .302 3.314

Inspirational motivation .617 1.622

.441 2.266
Intellectual Simulation
Individual consideration .324 3.087
Source: Own questionnaire survey, computed in SPSS output, 2024

4.4.2.1.5 Homoscedasticity
Homoscedasticity is the extent to which the data values for the dependent and independent
variables have equal variances Olvera (2019), the variance of the residual terms should be
consistent across all levels of the predictor variables. It means that the residuals at each level of the
predictors should have the same variance; therefore, checking for this assumption is helpful for the
fitness of the regression model. In this regard, to plot the homoscedasticity test, as supported by
Wagschal (2016), the researcher plots the standardized residuals, or error (ZRESID) on the Y-axis
and the standardized predicted value of the dependent variable based on the model (ZPRED) on the
X-axis and the result is presented as follows. When the scatter plot is bigger than 3.3 and
smaller than -3.3, heteroscedasticity issues arise. Therefore, as it was indicated in the figure
below the data did not violate the heteroscedasticity assumption and instead, it was
homoscedasticity.

Figure 7: Homoscedasticity for organization performance ETC.

52
Source, own questionnaire survey, computed in SPSS output, 2024

4.5 Multiple Regression

Multiple regressions according to Pallant, (2016), multiple regressions are not just one technique but
a family of techniques that can be used to explore the relationship between one continuous
dependent variable and several independent variables or predictors, most of which are continuous.
Multiple regression analysis was employed to examine the effect of transformational leadership
(idealized influence, inspirational motivation and individual consideration) on organizational
performance. Multiple regression analysis was chosen because it helps to predict the linear
relationship of a dependent variable. Here, the dependent variable is regressed and the independent
variable is regressed, which will show the influence of the relationship of these variables by one

53
another.

4.5.1 Regression Analysis of Bank determinant and deposit growth

4.5.1.1 Model Summary

Table 15 :( Model Summary) II, IM, IS, IC as Predictors to organizational performance in ETC.

Model Summaryb
M R R Adjuste Std. Durbin-
od Squa dR Error of Watson
el re Square the
Estimate
1 .781a .610 .592 .26074 2.306
a. Predictors: (Constant), Individualized Consideration, Inspirational Motivation,
Intellectual Stimulation, Idealized Influence
b. Dependent Variable: organizational performance,
Source: Own questionnaire survey, computed in SPSS output, 2024

From the regression results above, the R-value was 0.781 (70.8%), indicating that there is a positive
relationship between transformational leadership and organizational performance at keffa zone
selected wereda. R-square, which is the coefficient of determinant, tells how much variation is
taking place in organizational performance (dependent variable) due to, idealized influence,
inspirational motivation and individual consideration (Independent variables). The overall model
accounts for almost 61% of the variance in organizational performance. Whereas, the remaining
39% of the variation is explained by other factors which are not included in this study. In simple
terms, whether there is high or performance in ETC experienced 61% of the variance explained by
the four transformational leadership elements of the organization.

4.5.1. 2 ANOVA
Table 16: (ANOVA) II, IM, IS, IC as Predictors to organizational performance in ETC.

ANOVAa

54
Model Sum of Df Mean F Si
Squares Square g.
123
.00
Regression 33.701 4 8.425 .93
0b
1 2
Residual 20.891 26 .068
Total 54.592 30
a. Dependent Variable: organizational performance,
b. Predictors: (Constant), Individualized Consideration, Inspirational Motivation, Intellectual
Stimulation, Idealized Influence

Source: Own questionnaire survey, computed in SPSS output, 2024

According to table of the analysis of variance (ANOVA) for these data, if the F ratio is large and
the probability is less than 0.05, then it is termed statistically significant (Linnertz et al.,
2012).The above ANOVA table 16 demonstrates the overall model significance, and this board
helps us to make sure the above model (on a model summary table) is a statistically significant
predictor of the outcome, i.e. organizational performance and it is evidenced that the model is
statistically predictor of organizational performance for the reason that the p-value is less than 0.05.
Therefore, a significant amount of deposit growth is influenced by idealized influence, inspirational
motivation and individual consideration. Furthermore, it can be concluded as the overall regression
model is significant (F = 123.932, p < 0.05, R2=.610; i.e., the regression model is a good fit of the
data).

55
4.5.1.3 Coefficients
Table 17: (Coefficients) II, IM, IS, IC as Predictors to organizational performance
in ETC.

Model Unstandardized Standardi T Sig.

Coefficients zed
Coefficie
nts
B Std Beta
.
Err
or
.24 -.65
(Constant) -.159 .517
3 7
.07 3.32
Idealized Influence .257 .265 .003
7 4
Inspirational .08 1.81
1 .145 .101 .001
Motivation 0 5
Intellectual .09
.029 .022 .327 .001
Stimulation 0
Individualized .07 8.71
.616 .670 .000
Consideration 1 1

Source: Own questionnaire survey, computed in SPSS output, 2023

The coefficients table sought to identify which predictors are significant contributors to
the 61 % of explained variance in Y (i.e., R2=0.610) and which of the significant ones
help strongly to explain the Y-intercept established regression equation. Based on the
statistical data obtained from the above model summary (table 15), transformational
leadership together explains about 61 % of the variance in organizational performance
and the regression equation is: -
𝑌= 𝛽0 + 𝛽1𝑋1 + 𝛽2𝑋2 + 𝛽3𝑋3 + 𝛽4𝑋4 + 𝜀
Y =-159 +. 265X1+.010X2+.022X3+. 670x4 + 1.768

OP =-159 +0.265(II) +0.101(IM) +0.022(IS) + 0.670(IC) + ɛ

Table 20 also reveals that the weight of beta analysis result shows that the independent

48
variables have significant contribution to the prediction model keeping all other variables
constant. This signifies that;
 For every one-unit increment on idealized influence by the leader of ECT, the
percentage of organizational performance increase by 26.5 (percent).
 For every one-unit increment on inspirational motivation by the leader of ECT, the
percentage of organizational performance increase by 10 (percent).
 For every one-unit increment on intellectual stimulation by the leader of ECT, the
percentage of organizational performance increase by 2.2 (percent).
 For every one-unit increment on individual consideration by the leader of ECT, the
percentage of organizational performance decreased by 67. (Percent).
But as far as the relative effects of transformational leadership on organizational
performance are concerned, the finding of the study shows that individual consideration
plays a more important part organizational performance than other factors.
Generally based on the above analysis the researcher concludes that by the leader of ECT
has statistically significant effect on organizational performance of ETC.

In the line with the above respondents the key interviewees were requested to indicate
how your organization applies transformational leadership and what its effect on
organization performance? The following quotations were discussed by the respondents;

"I believe if organization has good application of transformational leadership is charged

with idealized influence at the employee affective commitment level, managing
intellectual stimuli, and transforming individual consideration challenges into
opportunities during employee’s commitment. Well as ETC we demonstrated
transformational leadership has a well-built positive impact on employees' commitment”

What its effect on organization performance?

The following quotations were discussed by the respondents

"There is no questions on the effect of transformational leadership on organizational
performance, I mean that its lead employees to more commitment. Therefore, employee
commitment mitigates the performance of organization. The success of an organization is
highly dependent on employee commitment, job satisfaction and performance in terms of

49
achieving its goals, customer satisfaction and maximization of profits. In the current
business environment, one of the challenges organizations are facing is to select an
appropriate leadership. The necessity of the competitive and dynamic business
environment requires an increased focus on the most critical organizational element,
which is leadership in any organization; leaders are crucial in motivating and helping
their employees to be competitive and committed to the achievement of the
organizational goals and objectives by use of effective leadership styles”

50
 CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSIONS AND

RECOMMENDATIONS
5. Introduction
The main objective of the study is to establish the effects of transformational leadership
on organizational success. Therefore, this chapter presents a summary of the findings
from the concluded research project and conclusions that are regarded important to the
findings and finally recommendations that are regarded relevant for this organization to
consider.

5.1 Summary of Research Findings

5.1.1 How does idealized influence affect Organizational performance at ETC keffa
zone?
Under the four metrics developed by the researcher to understand how idealized influence
impacted the employees’ performance at their respective work stations the majority 54%
of the respondents correlated managers’ behavior to certain ethical attributes they
observed. This was further supported by another 29% of the respondents whom strongly
agreed that the behavior they observed in their manager portrayed his/her ethical
attributes. Also the majority 53% of the respondents strongly agreed that they got the
courage to handle challenges just because their manager looked confident. Further 35%
of the respondents supported this theory. A further 59% of the respondents strongly
viewed their leader as mentors and role models at their respective work stations. This was
echoed further by 33% of the respondents. The majority 55% of the respondents agreed
that they got the confidence to work just from the way their leaders carry themselves
around. 40% of the respondents echoed further this ideology. The study found that
leaders exhibit a good behavior worth emulating. Also, the study found that leaders’
behaviors were directly attributed to certain ethical attributes that gave confidence to their
followers to handle challenges. Finally, the study found out that ETC keffa zone leaders
acted as mentors and role models to their followers.

51
5.1.2 What are the effects of inspirational motivation on organization performance
at ETC keffa zone?
The researcher wanted to find out how inspirational motivation impacted the performance
of employees who determine the performance of the organization. The study found out
that inspirational motivation impacts organizational performance to a large extent. This
was supported by the majority 46.5% whom agreed they received support from his/her
team and 29.1% strongly agreed. Also the majority 45.4% strongly agreed employees
were all empowered to attain the specific business goals. The study found that leaders
motivate confidence among the staff and was responsive to employee ideas and thought.
In addition, leaders have articulated a clear vision for the future and exhibit a
commitment to the goals that have been laid out. Also, the study found that the leaders
develop team spirit in employees and align individual and organizational goals.
5.1.3 How does Intellectual Stimulation affect Organizational Performance at ETC
keffa zone?
The researcher resort to find out how various respondents reacted to intellectual
stimulation at work by framing statements that portrayed intellectual stimulation. The
researcher established that 51.3% of the respondents agreed that they received freedom to
reinvent old ideas and come up with new ideas at their respective work stations which
was also strongly supported by 38.2% of the respondents whom strongly agreed. It is
quite clear that the majority 52.9% stated that they had opportunity to rethink and re-
evaluate old problems and later develop new solutions to such problems. This was
strongly seconded by 38.9% of the respondents. The researcher also went ahead to
establish how the leadership and management viewed the ideas of its employees to
various challenges assigned to them. 56.5% of the respondents stated that their ideas were
perceived positively and this was even supported by 35.2% of the respondents whom
strongly supported this statement. The study found that leaders in the organization greatly
stimulate the intellect and imagination of the followers to a large extent. Moreover, the
study found that leaders in the ETC keffa zone encouraged imagination and creativity
among its employees. In addition, employees in the organization were involved in
problem solving and participated in decision-making. However, the study found that the

52
organization did not provide challenging activities to stimulate their employees’
imagination.

5.1.4 What are the effects of individualized consideration on organization

performance at ETC keffa zone?
The study found out that individualized consideration impacts organizational
performance to a large extent. This can be seen by the three statements employed by the
researcher to examine how individualized consideration affected employee performance
as well as the company. The majority 40.2% stated that the leadership in place greatly
supports them to handle day to day challenges at work; this was also supported by 35.7%
whom agreed on the same. In addition 50.2% of the respondents strongly agreed and 42.8
% agreed that the leadership in place contributes much to their performance at work. The
researcher also established that the majority 51.6% agreed that there existed channels in
which they could get feedback in regards to their performance. However, the study
established that leaders were not keen to acknowledge and attend to employee needs and
concern. In addition, leaders in the organization do not listen fully to understand the
perceptions of followers.
However, the study revealed that leaders do not pay close attention to the needs of
followers. In addition, the study revealed that there was no coaching program in the
organization to enhance personal skills.
The correlation analysis showed that there is a positive and significant relationship or
correlation between variables (idealized influence, inspiration motivation, intellectual
simulation and individual consideration, and organizational performances. From the
multiple regression analysis, it is observed that all the variables are significant effect
organizational performances. The regression analysis also revealed that from all practice
individual consideration is higher contributor to organizational performances of keffa
zone ETC with a standardized coefficient Beta of 0.670. The second most contributors to
organizational performances being idealized influence with a standardized coefficient
beta of 0.265. The model summary showed us that 61% % of change taking place in
performance of ETC is due to those factors, other unexplored factors may limit

53
organizational performance which accounts for about 39%. Hence, performance of ETC
is highly related to the stated variables.

54
5.2 Conclusions

The main objective of this study was tried to explore the effects of transformational
leadership on organizational performance in the case of keffa zone ETC. The uniqueness
of this study lies in it focusing on transformational leadership as an important predictor of
organizational performance. Based on the major findings of the study, the following
conclusions were drawn. The results from the study findings showed that idealized
influence has significant contribution on improving the performance of the organization.
Hence it can be concluded that organizational success highly depends on the ability of
transformational leaders to inculcate clear vision and positively influence followers,
responsiveness to their attention, developing trust on employees makes them to contribute
all what they have for the accomplishment of organizational objectives.

The result revealed that individual consideration dimension of transformational

leadership has a positive and significant influence on organizational performance in keffa
zone ETC. Therefore, it can be concluded that mentoring, coaching, treating employees
based on their unique talent, characteristics and attention will help to improve personal as
well as professional growth and adjusting a flexible work schedule leads to enhance
commitment of employees and thereby bring valuable contribution to organization. It is
plain that today’s organizations are operating their business in highly complex
environment which demands continuous creativity and innovation to cope up with the
ever-changing situation so as to maintain their competitive advantage.

The discoveries of this study proved that intellectual stimulation has a significant effect
on organizational performance in keffa zone ETC. Thus, it can conclude when leaders
stimulate the intellect and imagination of the followers and allows them to participate in
decision making since it makes to develop sense ownership and autonomous, they can
devise new ideas that can bring significant change in the organization.

The study also revealed that inspirational motivation has positive influence on the
performance of the organization. When transformational leaders motivate employees
through various incentives, this in turn enhances employee commitment and committed
employees might have significant contribution for the organization.

55
5.3 Recommendations
Based on the research findings and conclusions the followings are recommendation for
ETC as a way to improve the performance than before
 The study recommends that transformational leadership should be taught to all people
at all levels of organization to have a positive impact on the overall performance. This
will help in the sense that all employees will act as transformative agents thereby
realizing organization performance at all levels. All managers need to be trained to
use both styles of leadership and due to the increasing need for new skills and
competencies of leadership mainly because; changes in community, leadership
training program is more important than ever.
 The study recommends that there should be effective communication between
management and other employees within the organization. A proper channel of
communication prevents message distortion. This mainly helps in stating the
organizations goals an, mission and vision to all employees for executions. Improper
communication channels may lead to wrong task being done hence derailing the
organization goals and targets. It is therefore paramount for the organization to
implement a clear and concise communication channels.
 The study recommends that employees motivation should be boosted at all cost to
promote productivity. All forms of motivations i.e. rewards and incentives should be
adopted as this is as a major factor to get its employees become productive. A
motivated workforce tends to be more resourceful as they understand the organization
long and short term goals. The study also recommends that rewards and punishment
should be done in a fair manner to all employees so that those receiving rewards are
not favored and those receiving punishment are not victims of unfair treatment.
 The study recommends also that proper methods of training and development should
be devised to promote employees career growth. Opportunities to participate in
seminars and other forms of training where their employees get the opportunity to
brainstorm as well develop their capabilities in various issues/task they handle at their
respective jobs should be highly encouraged.

56
 The study finally recommends that the organization should embrace teamwork among
employees to ensure cohesiveness among ETC keffa zone employees and
management. It therefore implies that the management of ETC keffa zone should
devise team building exercise where employees get to interact and establish a good
rapport among each other. Taking employees for team building session enhances
collaboration and supportive culture among employees hence teamwork.

5.4 Suggestions for Further Study

Since study looks at how transformational leadership affects the performance of the
company, further researcher should be done mainly focusing on how transformational
leadership affects employee career growth. The following are therefore considered the
study's weaknesses and potential future research objectives. Firstly, sample size limited
Thus, the researcher recommends that in future studies, the delimitation of the study site
and limited 33 sample size should be expanded to the area or/and the participants from
other wereda to apply the current findings. Finally, it is expected to focus on the other
variables for future research and compare the results with the other survey study.

57
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 APPENDICES
APPENDIX I: QUESTIONNAIRE

EFFECTS OF TRANSFORMATIONAL LEADERSHIP ON ORGANIZATIONAL

PERFORMANCE, A CASE STUDY OF ETC KEFFA ZONE..

Dear Respondents,

You have been selected as the respondent and as one of the respondents, your opinions
are very important to this study. This is an academic research and the information
provided is purely for academic purpose and will be treated with utmost confidentiality.
Your co-operation will be highly appreciated.

Instructions: Please complete the following questionnaire appropriately.

Confidentiality: The responses you provide will be strictly confidential. Please tick or
answer appropriately for each of the Question provided.

The questionnaire is divided into five sections. A to E. participation is voluntary please

answer all the questions in the questionnaire.

SECTION A: DEMOGRAPHIC INFORMATION OF RESPONDENTS

1. Gender

Male [ ] Female [ ]

2. Age of respondents

< 31 years [ ]

Between 32 - 39 years [ ]

Between 40 – 49 years [ ]

Between 50 – 59 years [ ]

63
3. For how long have your been working for this organization?

Below 1 yrs [ ] Between 11 - 15 yrs. [ ]

Between 1 -5 yrs. [ ] Above 15 yrs. [ ]

Between 6 -10 yrs. [ ]

4. What is your current position?

Operational/Support Staff [ ] Supervisor [ ] Manager [ ]

5. Which of the following describes your highest education level?

Certificate Holder [ ] Diploma Holder [ ]

Degree Holder [ ] Masters Holder [ ]

QUESTIONNAIRS
In a range of 1 to 5, how would you rate each of the following factors? Note: 1=
Strongly Agree, 2= Agree, 3= Neutral, 4=Disagree, 5 = Strongly Disagree (Tick
where appropriate)
Idealized Influence RATINGS
1 2 3 4 5
The behavior of my Manager
portrays his/her ethical attributes
The way my manager conducts
himself/herself gives me the
confidence to face risks ahead
Am proud to be associated with
my manager since he acts as a
mentor and role model to me.
The way my manager conducts
himself/herself raises my
confidence in him/her.
Inspirational Motivation 1 2 3 4 5

64
My team gives me support
All employees are empowered to
attain business goal
The vision of the company is well
articulated by my Manager

Intellectual Stimulation 1 2 3 4 5
I am given chances to think of
new ideas to improve my work
I am given opportunity to reinvent
solutions to old problems
My ideas to various problems are
welcomed positively
Individualized Consideration 1 2 3 4 5
The current leaderships give me
the support to tackle daily
challenges I face at work.
I am given necessary support to
improve my performance at work
The current leadership
communicates back on how I have
performed
Organizational performance
Motivation has continuous quality
improvement in my work.
I am satisfied with my
performance at workplace.
My performance is better than that
of my colleagues with similar
qualifications.

65
My supervisor & I work well
together
I’m willing to accept additional
tasks/responsibilities

How your organization applies transformational leadership and what its effect on
organization performance?

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
_______________________________________

66