Abstract:
The main objective of the study was to examine the effects of leadership style on
organizational performance at Addis Ketema Sub City Administration. The focus was on
three major leadership styles Autocratic, Democratic and Laissez-faire leadership style.
The research design was descriptive and explanatory; the research used quantitative
approach. A stratified random sampling was used to select sample of 244 respondents out
of the total population. Questionnaire was used as primary data collection tool. The
descriptive statistics result shows that the practice of leadership style at the Addis Ketema
Sub City Administration is democratic leadership. The correlation result shows that there
is positive and significant relationship between the two leadership styles (democratic
leadership and laisser-faire leadership) and organizational performance of Addis Ketema
Sub City Administration. However, Autocratic leadership was negatively correlated to
organizational performance. The regression result shows that the three independent
variables: autocratic leadership, democratic leadership, and laisser-faire leadership that
were studied explain 33.9% of variation organizational performance of Addis Ketema Sub
City Administration as represented by the R² value. Regarding individual effect, only
democratic leadership is significant in predicting the organizational performance, while
the other two leadership styles (autocratic leadership and laisser-faire leadership) are not
significant in predicting organizational performance. The study recommended Addis
Ketema Sub City Administration management should provide various training programs
to its leaders in order to create a higher level of organizational performance. Particularly,
the managers/leaders of Addis Ketema Sub City Administration should influence
democratic leadership practice as a way of improving the organizational performance.
