The Effect of Leadership Styles on Employees Job Satisfaction in Ethio Telecom,

1. The Effect of Leadership Styles on Employees Job Satisfaction in Ethio Telecom, South and East Regions of Addis Ababa BY: HAYAT FEDLU JULY, 2024 ADDIS ABABA, ETHIOPIA

2. The Effect of Leadership Styles on Employees Job Satisfaction in Ethio Telecom, South and East Regions of Addis Ababa BY HAYAT FEDLU (NGVC/MBA/EXN/017/15) A THESIS PROPSAL SUBMITTED TO NEW GLOBAL VISION COLLEGE MBA PROGRAM IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION ADVISOR: ANDINET (ASSIST,PROF) NEW GLOBAL VISION COLLEGE MBA PROGRAM JULY, 2024 ADDIS ABABA, ETHIOPIA

3. NEW GLOBAL VISION COLLEGE MBA PROGRAM ADVISOR’S APPROVAL SHEET This is to certify that the thesis entitled “The Effect of Leadership Styles on Employees Job Satisfaction in Ethio Telecom, South and East Regions of Addis Ababa” submitted in the partial fulfillment of the requirements for the degree of Master of Business Administration, the graduate program of New Global Vision College and has been carried out by HayatFedlu Id. No. (NGVC/MBA/EXN/017/15) under my supervision. Therefore, I recommend that the student has fulfilled the requirements and hence herby can submit the thesis to Graduate Program of New Global Vision College. ______________________________ __________________ ______________ Name of advisor Signature Date i

4. NEW GLOBAL VISION COLLEGE MBA PROGRAM EXAMINERS’ OF APPROVAL OF THESIS This is to certify that the thesis prepared by Hayat Fedlu,entitled “The Effect of Leadership Styles on Employees Job Satisfaction in Ethio Telecom, South and East Regions of Addis Ababa” and submitted in partial fulfillment of the requirements for the Degree of Master of Business Administration complies with the regulations of the college and meets the accepted standards with respect to originality and quality. Signature of Board of Examiner`s: External examiner: ____________________Signature: ____________Date: _____________. Internal examiner: ____________________Signature: ____________Date: _____________. Dean: _________________________ Signature: ____________Date: _____________. ii

5. Declaration I, Hayat Fedlu, have carried out a research proposal on “The Effect of Leadership Styles on Employees Job Satisfaction in Ethio Telecom, South and East Regions of Addis Ababa” independently in partial fulfillment of the requirement of the Master of Business Administration with the guidance and support of the research advisor, Andinet [Assist,Prof]. I, also declared that this thesis is my original work and that all sources of materials used for the thesis have been duly acknowledged. I further confirm that the thesis has not been submitted either in part or in full to any other higher learning institution for the purpose of earning any degree. Declared by: ________________________ _____________________ Name of the Designate Signature Date iii

6. Acknowledgment First and foremost, I would like to thank the almighty Allah for giving me strength and determination to finish this thesis work.Second, I would like to express my sincere gratitude to my advisor, Andinet (Assist,Prof), for his patience, motivation, immense knowledge and continuous support during this thesis work. My special thank goes to My Husband Abdulfeta tessema, my brother Amir fedlu, my friend Yasmin mohammed and all my families who have been beside me, while I was engaged in this study and provide me unlimited support and encouragement. Last but not least, my gratitude goes to Ethio Telecom Staffs specially Ayertena branch leader who provided me information about South and East region of Addis Ababa and responded to my questionnaire prepared for this research work. iv

7. Table of Contents Declaration ................................................................................................................................ ii Certification ............................................................................................................................. iii Acknowledgment...................................................................................................................... iv List of Tables ........................................................................................................................... vii List of Figures .......................................................................................................................... ix List of Acronyms ....................................................................................................................... x List of Key Words .................................................................................................................... xi ABSTRACT ............................................................................................................................ xii CHAPTER ONE ......................................................................................1 1 INTRODUCTION .................................................................................................................. 1 1.1 Background of the Study...................................................................................................... 2 1.2 Statement of the Problem ..................................................................................................... 4 1.3 Research Questions .............................................................................................................. 6 1.4 Objectives of the Study ........................................................................................................ 6 1.4.1 General Objective ............................................................................................................. 6 1.4.2 Specific Objectives ........................................................................................................... 6 1.5 Research Hypothesis ............................................................................................................ 6 1.6 Significance of the Study ..................................................................................................... 6 1.7 Scope of the study................................................................................................................ 6 1.8 Definaton of terms ............................................................................................................... 7 1.9 Limitation of the study ......................................................................................................... 8 1.10 Organization of the paper ................................................................................................... 9 CHAPTER TWO ....................................................................................9 REVIEW OF LITRATURE .......................................................................................................... 9 2.1 Introduction ......................................................................................................................... 9 2.2 Theoretical Literature .......................................................................................................... 9 v

8. 2.2.1 Leadership .......................................................................................................................10 2.2.1.1 Transformational Leadership Style ................................................................................10 2.2.1.2 Transactional Leadership Style .....................................................................................11 2.2.1.3 Laissez- Faire Leadership style .....................................................................................12 2.2.1.4 Supportive Leadership Style..........................................................................................13 2.2.1.5 Participative Leadership Style………………………...................................................... .. 14 2.3 Job Satisfaction ...................................................................................................................15 2.3.1Factors that Affects Job Satisfaction .................................................................................16 2.3.2 The Relationship between Leadership Styles and Employee Job Satisfaction ...................17 2.4 Empirical Review of Related Studies ..................................................................................18 2.5 Research Gap ......................................................................................................................20 2.6 Conceptual framework ........................................................................................................20 CHAPTER THREE ...............................................................................22 RESEACH METHOD .................................................................................................................22 3.1 Introduction ........................................................................................................................22 3.2 Research approch ................................................................................................................22 3.3. Research Design ................................................................................................................22 3.4 Population and Sampling Techniques..................................................................................22 3.5 Sources of Data...................................................................................................................24 3.5.1 Primary sources of data ....................................................................................................24 3.5.2 Instruments of the Study ..................................................................................................25 3.6 Variables of the study .........................................................................................................25 3.7 Methods of Data Analysis ...................................................................................................25 3.8 The Model of Specification .................................................................................................25 3.9 Definition of Variables .......................................................................................................26 3.9.1 Dependent Variable .........................................................................................................26 3.9.2 Independent Variable .......................................................................................................26 vi

9. 3.10 Validity.............................................................................................................................27 3.11 Reability ...........................................................................................................................27 3.9 Ethical Consideration ..........................................................................................................27 CHAPTER FOUR .................................................................................28 DATA PRESENATATION, ANAYISIS AND DICUSSION .......................................................28 4.1 Introduction ........................................................................................................................28 4.2 Demographic Characteristics of Respondents ......................................................................28 4.3 Descriptive Statistics of the Variables .................................................................................31 4.4 The Relationship between Leadership Styles and Employee Job Satisfaction .......................32 4.5 Multiple Regression Analysis .............................................................................................33 4.5.1 Multiple Regression Assumptions ....................................................................................34 4.5.1.1 Normality Test ..............................................................................................................34 4.5.1.2 Multi-Co linearity Test ..................................................................................................35 4.5.2 Linearity Assumptions .....................................................................................................36 4.6 Regression Analysis............................................................................................................37 4.7 ANOVA of Leadership styles and Employee job satisfaction ..............................................37 4.8 The Impact of Leadership Styles on Employee Job Satisfaction ..........................................38 4.9 Analysis of qualitative Data ................................................................................................41 4.9.1 Status of Current organization Job Satisfaction ................................................................41 4.9.2 Leadership style and Ethio Telecom sector.......................................................................41 CHAPTER FIVE ...................................................................................43 SUMMARY, CONCLUSSION AND RECOMMENDATIONS ..................................................43 5.1 Introduction ........................................................................................................................43 5.2 Summary ............................................................................................................................43 5.3 Conclusion..........................................................................................................................44 5.4 Recommendations ..............................................................................................................46 References (APA reference method) .........................................................................................47 vii

10. Part I: Demographic Questions .................................................................................................... Part II: Questions on Leadership Styles........................................................................................ Part III: Questions on Job Satisfaction ......................................................................................... Interview Questions ..................................................................................................................... List of Tables Table 3.1: Population and Sample .............................................................................................23 Table 4.1: gender of respondent ................................................................................................29 Table 4.2: age of respondent .....................................................................................................29 Table 4.3: experience of respondent ..........................................................................................29 Table 4.4: educational level ......................................................................................................30 Table 4.5: position of respondent ..............................................................................................30 Table 4.6: marital status of respondent ......................................................................................30 Table 4.7: The descriptive statistics of the study variables .........................................................31 Table 4.8: Correlation of Leadership styles and employee job satisfaction.................................33 Table 4.9: The Multi collinearity test distribution result ............................................................36 Table 4.10: Regression ..............................................................................................................37 Table 4.11: Anova .....................................................................................................................38 Table 4.12: Impact of Leadership Styles on Employment Job Satisfaction .................................39 Table 4.13: Summery of Hypothesis Test ..................................................................................40 viii

11. List of Figures Figure2.1. Conceptual framework (adapted from Bass and Riggio’s (2006) and ........................21 Figure 4.1 Histogram regression of standardized residual of leadership style and employee job satisfaction ..........................................................................................................................35 Figure 4.2: Normal P-P Plot of dependent variable employee job satisfaction............................36 ix

12. Acronyms ETA Ethiopian Telecommunications Authority ETC Ethiopian Telecommunications Corporation IBTE Imperial Board of Telecommunications of Ethiopia MLQ Multifactor Leadership Questionnaire MSQ Minnesota Satisfaction Questionnaire R Pearson correlation SD Standard Deviation Sig Significance level SPSS Statistical Package for Social Science x

13. List of Key Words Job Satisfaction Is defined as a worker’s sense of achievement and success on the job . (kaliski,2007) Leader A person helping an organization in meeting its goals. (kumar,2011) Leadership The ability to evaluate or forecast a long term plan . (adeoye,2009) Leadership style Is the manner and approach of providing direction, implementing plans, and motivating people. (jhon,2001) xi

14. ABSTRACT The study aimed at impacts of leadership styles on employees’ job satisfaction in Ethio Telecom of South and East Region of Addis Ababa, Correlational design was used to conduct the study. The main objective of this study was to assess the effect of different leadership styles (transformational, Laissez-faire, supportive, participative, and transactional leadership styles) on employees’ job satisfaction. In guiding this research, the researcher was following both qualitative and quantitative approaches engage to answer the research problems. Descriptive and causal (explanatory) research design was used due to the fact that it allows analysis about causation and relation of variables. The population of the study was 525 employee and 38 leaders totally 563 in six Ethio Telecom of South Eastern districts. 234 sample of the study (220 employee and 14 leaders) were selected using simple random sampling method from six randomly selected branches. The instrument adapted for the study is Multifactor Leadership Questionnaire and Minnesota Satisfaction Questionnaire. The collected data were analyzed using descriptive and inferential statistics. Pearson moment correlation was used to determine the strength of relationship between each leadership style and employee job satisfaction. In addition, multiple regressions were used to determine the extent to which the independent variables transformational, transactional, laissez-fair, supportive participative leadership style predict the dependent variable and to determine the impact of each independent variable on dependent variable, employee job satisfaction of Ethio Telecom of South Eastern parts of Addis Ababa. The result of the study show that there are positive significant relationship between transformational leadership style and employee job satisfaction, more of the employee are satisfied on their job because of leadership style their leaders follow in Ethio telecom of South and East Region and still there is a gap of leadership towards the leaders and transformational is more predictor of leadership style on job satisfaction. It was suggested that top leaders of Ethio Telecom should measure the employee job satisfaction time to time, some improvement should be made to increase the level of satisfaction of employee, the institution should be capacitate the employee by giving educational chance for effective and efficiency of the institutional goal, the leaders should be keep up transformational style of leadership because of its effectiveness. Keywords: Transformational Leadership, Transactional Leadership, Supportive Leadership, Participative Leadership, Laissez-faire Leadership and Job Satisfaction xii

15. CHAPTER ONE 1 INTRODUCTION This chapter introduces the background of the organization, background of the study, research problems and the associated research questions to be answered and objectives to be achieved, significance of the study, scope and limitation of the study and finally organization of the proposal. Telecommunications is the world's biggest industry, looped together by complex networks, telephones, mobile phones and internet-linked computers; the global system touches nearly all of us (Nagihan and Kadir, 2015). It allows us to speak, share thoughts and do business with nearly anyone, regardless of location (where we are). Earlier, telecommunications industry was comprised of a club of big national and regional operators. But telecommunication sector, developed especially in the last two decades all over the world, provide framework of information and communication which is principal component of globalization (Nagihan and Kadir, 2015). Telecom technology was introduced in Ethiopia around1894, seventeen years after the invention of telephone technology in the world (Ethio Telecom, 2014). In the earlier time it was administered by board, “Imperial Board of Telecommunications of Ethiopia (IBTE)”. The main purpose of the board is to rehabilitate, extend, repair and maintain the telecommunication facilities of Ethiopia and to engage in the business of telecommunication for profit (proclamation No. 131 on October 15, 1952). Under the Dergue regime, in October 1975, it was administered by military as “The Provisional Military Government of Socialist Ethiopia Telecommunication Services”. It was renamed again as “Ethiopian Telecommunications Authority (ETA) on January 1981. Then the sector was restructured into two separate independent entities namely the Ethiopian Telecommunications Authority (ETA) and the Ethiopian Telecommunications Corporation (ETC) was established by Proclamation No. 49/1996 on November 1996 (Ethio Telecom, 2014). Ethio Telecom was born out of ETC on December 2, 2011, in order to bring about a paradigm shift in the development of the telecom sector to support the steady growth of our country. Ethio telecom is an integrated telecommunications solutions provider operating in Ethiopia. The company provides telecom service in the entire country on voice, internet, data, machine-to- machine(M2M), mobile and etc., with comprehensive plans to meet the requirements set out by the government of Ethiopia (www.ethiotelecom.et, 2019). Ethio telecom has different regional administrations like North, South, East, West, North West, North East, South East, South West, Asosa, Gambella, Jigjiga, Semera and Central Addis Ababa region. As part of the company excellence, the company is committed to high- 1

16. level performances, customer service quality, organizational excellence and continuous improvement. Company has interest in digitizing the enterprise sector in nationwide providing different surpassing corporate telecom services (both local and international) and products to other enterprises (non- personal) customers. Currently ethio telecom has large customers having 41.9 million mobile customers, 22.3 million data and internet customers, 1.2 million fixed land line customers and 43.6 million total customers. (www.ethiotelecom.et, 2019). 1.1 Background of the Study Manager and management style are important factors which affect Manager and management style job satisfaction in business organization (Nagihan and Kadir, 2015). Business Organizations which want to be successful and effective must determine vision and mission, and look after human and organizational structure while they control competitive structure in the market and try to be a successful actor. Employees are the most important resources of any organizations (Lok P and Crawford J., 2004). Employee management is an important aspect of organizational processes (Yusra , , 2016). This emanated from the recognition that the human resources of an organization and the organization itself are synonymous. A well-managed business organization normally considers the average employees as the primary source of productivity gains. Leadership is a social influence process, in which the leader seeks the voluntary participation of subordinates in an effort to reach organization goals (Bunmi O., 2007). A leader can be defined as a person who delegates or influencing others to act so as to carry out specified objectives (Mullins L., 2004). In this global competitive environment, effective leadership style is necessary to reduce the attrition rate (Nanjundeswaras and Swamy 2014). From the effective leadership styles only it is possible to achieve organizational goal productively. 2

17. Bass, divided leadership style into transformational leadership and transactional leadership (Bass, 2000). Transformational leadership has the characteristics of individual influence, spiritual encouragement and intellectual stimulation. They often take individual into consideration, establish vision and aim inside, create open culture, trust the staff to reach their goals and give full play for staff's potential. Managers with transformational leadership style concentrate on the growth and development of value system of employees, their inspirational level and moralities with the preamble of their abilities. While, Transactional leadership is focused on staff‟s basic and external demand, the relationship between leaders and subordinates is based on the contract. They tend to attain organizational goal by pacific job roles and mission design, their basic purpose is to maintain a stable organization. There are many ways to lead and every leader has own style. Some of the more common styles include autocratic, bureaucratic, leadership and laissez-faire (Muhammad , et al, 2015). In the past several decades, management experts have undergone a revolution in how they define leadership and what their attitudes are toward it. They have gone from a very classical autocratic approach to a very creative, participative approach. Authoritarian leaders, also known as autocratic leaders, provide clear expectations for what needs to be done, when it should be done, and how it should be done. Democratic leadership style is also called the participative style as it encourages employees informed about everything that affects their work and shares decision making and problem solving responsibilities. The laissez-faire leadership style is also known as the "hands-off ¨style (Yusra et al, 2016). It is one in which the manager provides little or no direction and gives employees as much freedom as possible. All authority or power is given to the employees and they must determine goals, make decisions, and resolve problems on their own. Participative leaders encourage group members to participate, but retain the final say over the decision making process. Group members feel engaged in the process and are more motivated and creative. The sustained profitability of an organization depends on its workforce job satisfaction and organizational commitment. Employees‟ job satisfaction enhances their motivation, performance and reduces absenteeism and turnover (Lok and Crawford, 2004). Job satisfaction is an employee’s attitude about his or her job and the organization in which he/she performs the job. Employee job satisfaction is correlated with received salaries, benefits, recognition, promotion, coworkers and management support, working conditions, type of work, job security, leadership style of managers, and demographic characteristics such as gender, marital status, educational level, age, work tenure, and number of children (Mosadeghrad and Yarmohammadian., 2006). 3

18. Job satisfaction which is general reaction to the job environment and job itself cannot be assessed independent from the individual success and individual’s performance results. Source of job satisfaction is not only position held in workplace but also physical, social environment and relations between managers and colleagues, group culture and management style (Nagihan, Kadir , 2015). All those factors have different effects on individual’s job satisfaction levels. Employee performance can be thought as sum of job satisfaction and motivation (Nagihan , Kadir ,2015). Most organizations focused on continuous development and growth should manage perception of employees who works in the strategic plans such as near and far targets, technology, company policies and investment decisions. There are a lot of native and foreign studies about leadership and job satisfaction relationship. Many studies show positive relationship between employee job satisfaction and leadership style. Ali Orozi Sougui and et al. found out the impact of leadership on employee motivation in Malaysian Telecommunication Sector. They used different variables and found that transformational leadership style has a stronger relationship with job satisfaction. Ethio Telecom is the only telecom service provider in Ethiopia and it needs effective leadership style to achieve its goal. Employees working in telecom industry require more autonomy and flexible kind of leadership. Result obtained by Esubalew and Fisseha (2017) motivated me to conduct further research. Thus, this research is designed to identify the leadership styles in Ethio Telecom, South East region of Addis Ababa and assess its impact on employee job satisfaction. 1.2 Statement of the Problem Telecommunication is one of the prime support services needed for rapid growth and modernization of various sectors of the industry (Nagihan and Kadir, 2015, Bergson 2003). New dynamic global economic model and telecommunication sector have come today shoulder to shoulder. Especially todays conditions which move away from the ex-monopoly structure, companies in telecommunication sector should attach importance to employee performance and job satisfaction in order to adapt new competitive structure. Ethiopian government has planned to privatize telecom sector and after few years new competitors will join the market of telecom service in Ethiopia. (www.ethiotelecom.et)1 1 4

19. Ethio Telecom has set starched strategic plan to meet the targets in customer acquisition, network and other IT systems capacity expansion, customer satisfaction and provision of quality services to customers. Accordingly, to achieve such stretched objectives the company has been investing huge capital in designing network infrastructure, information systems and well- structured operational system. The investment of huge capital to deploy network infrastructure, information system and well-structured operational system is not an end by itself. Rather various stakeholders require effective leadership; the company to be successful. Effective leadership is the vital ingredient for any organization to accomplish its mission and objectives (Nanjundeswaras and Swamy 2014). Abundant researches have been made and several theories on leadership have been studied considering different sector. Because of different natures of organization, still there is a need to conduct more researches to identify impact of the leadership gap on employees‟ job satisfaction and to understand leadership in deeply. Nagihan Y., et al. studied the effect of management factor on employee job satisfaction, an application in telecommunication sector in Turkey. Ali Orozi Sougui and et al. conducted study on the impact of leadership on employee motivation in Malaysian telecommunication sector. Specific to ethio telecom, study conducted by Ephrem A. (Ephrem, 2016) and Esubalew (Esubalew 2017) is closely related with this study, still having major difference in its selection of variables to be researched. Ephrem A. assesses only leadership styles in ethio telecom. Esubalew K. mainly considered only selected leadership styles like transformational, leader-member exchange and servant styles. The finding of Esubalew K shows that Ethio telecom is not practicing those leadership styles. This implies that, he doesn’t identify and study different types of leadership styles that ethio telecom is practicing and their impact on employee job satisfaction. The target of this research work was to identify different leadership styles in ethio telecom and their impact on employees‟ job satisfaction for the betterment of organizational outcomes. However, there are no known studies related to the links between these subjects in the Ethio Telecom, South and East regions of Addis Ababa. Furthermore, it fills the controversial gaps of different research studies that have been conducted on leadership style with respect to employee job satisfaction. Consequently, it contributes meaningfully to the body of growing literature and knowledge in this area of study in telecom industry. 1.3 Research Questions 5

20. The following questions was answered at the end of this research What is there relation between the leadership styles and employee job satisfaction? Which type of leadership style is more effective on the employee job satisfaction? In what extent does employee of Ethio Telecom are satisfied on their job? 1.4 Objectives of the Study 1.4.1 General Objective The general objective of this research was to investigate the impact of leadership styles on employee’s job satisfaction of Ethiopia Telecom of the South Eastern region of Addis Ababa. 1.4.2 Specific Objectives The specific objectives of this study were:  To investigate the leadership style of Ethio Telecom South and East region of Addis Ababa  To indicate the relationship between leadership styles and employee job satisfaction of Ethio Telecom South and East parts of Addis Ababa To identify type of leadership style that was more effective on the employee job satisfaction To measure employee job satisfaction in Ethio Telecom of South and East parts of Addis Ababa 1.5 Research Hypothesis In light of the above-mention research questions, the study was tested the following hypothesis. Ho1: Supportive leadership style has a significant influence on job satisfaction Ho2: There is an insignificant influence of participative leadership style and job satisfaction. Ho3: There is a significant influence of Laissez-faire leadership style on job satisfaction. Ho4: There is an insignificant influence of transactional leadership on employee job satisfaction Ho5: There is a significant influence of transformational leadership style job satisfaction 1.6 Significance of the Study The result of this study is significant to: Leaders of Ethio Telecom as input on their leadership style they apply to and shape themselves for better acceptable leader for employee and for their institutional effectiveness as well. Employee of Ethio Telecom so as to identify a type of leadership style that job oriented, employee oriented or both job and employee oriented. Employee and government types of leader that highly acceptable for employee and effective to attend the goal of institution. Serves as stepping stone for other researchers through providing basic information conduct 6

21. further study in the area. 1.7 Scope of the study This study was conducted in Addis Ababa Ethio telecom district mainly in south and East regions. South and East regions of Ethio Telecom districts consists 14 branches of administrations. Those branches were kaliti akaki beseka, saris, hana mariam, lafto, gofa mikael, lebu, jemmo, mekenisa, kera, sarbet, kore, betel and ayertena. To conduct the study manageable, in terms of time and with consideration of finance and material consumption, the study was delimited to South and East regions of Addis Ababa kaliti, akaki beseka, saris, betel, sarbet and ayertena branches. So this study was delimited to assess the impacts of leadership styles on employee’s job satisfaction considering the Transformational Leadership, Transactional Leadership, Laissez-faire leadership, Supportive Leadership, and Participative Leadership styles. This study was used to the Descriptive and causal (explanatory) research design used due to the fact that it allows analysis about causation and relation of variables. 1.8Operational Definition of Terms Organizational leadership styles: The behavioral approach employed by leaders to influence, motivate, and direct their followers in a business setting (Corporate Finance Institute, 2022). The study will focus on five types of leadership styles: transformational, transactional, autocratic, democratic, and laissez-faire. Transformational leadership: A leadership style that inspires and empowers followers to achieve a shared vision and goals through charisma, intellectual stimulation, individualized consideration, and inspirational motivation (Avolio & Bass, 2004). Transactional leadership: A leadership style that relies on rewards and punishments to motivate followers to comply with rules and expectations (Avolio & Bass, 2004). Autocratic leadership: A leadership style that involves making decisions without consulting or involving followers, and imposing strict control and authority over them (Lewin 2000). Democratic leadership: A leadership style that encourages participation and collaboration from followers in decision-making processes, and fosters a climate of trust and respect (Lewin 2000). Laissez-faire leadership: A leadership style that involves minimal or no guidance or direction from the leader, and allows followers to have complete freedom and responsibility for their work (Lewin ., 2000). Satisfaction: The degree to which an individual feels positive or negative about their job or work environment (Goleman et al., 2002) 7

22. 1.9 Limitation of the study As it is known that research work cannot be free from drawback. The first researcher faced a problem to get the necessary data and information from the study area. The willingness of the respondents' permitted their view to express the research questions on leadership practices and also, due to the workload getting the key informants to interview on the appropriate time was some of the problems faced the researcher during the study. 1.10 Organization of the paper These researchers cover five chapters. The first chapter contains the background of the study, statement of the problem, objectives of the study, the research questions, and significance of the study, scope and delimitation of the study and limitation of the study. In the second chapter detailed literatures were reviewed and the conceptual framework. The third chapter presents the research methodology used in this thesis. In the fourth chapter the data presentation analysis and discussion provided. Finally, chapter five ends the thesis with summary of the findings, conclusion and recommendations is presented. CHAPTER TWO REVIEW OF LITRATURE 2.1 Introduction 8

23. The literature review chapter describes related and supporting theories of the research problem. The definitions and concepts leadership style on employee job satisfaction have been reviewed, the factors and variable that influence each concept were identified, the relationship between the two concepts from previous researches is summarized and to conclude conceptual frame work of the research is illuminated. 2.2 The concept of leadership The word leadership has been used in various aspects of human endeavor such as politics, business, academics and social works (Ali et al, 2017). Many researchers have studied different aspects of leadership. Leadership is a personal relationship in which one person directs, coordinates and supervises other in the performance of a common task (Muhammad et al, 2015). The social contract of leadership is viewed as a myth that functions to reinforce existing social believes and structure about the necessity of hierarchy and leaders in organization. Leadership seems to be a matter of aligning people towards common goals and empowering them to take the actions needed to reach them. According to Yusra et al (2016), leadership means diverse things to various individuals around the globe, and distinctive things in various circumstances. Some 2500 years ago Socrates argued that leadership is always situational: a leader has qualities and especially professional or technical knowledge that are specific to the situation hence not transferable (Muhammad 2015). Knowledge about leadership accumulated through decades of research into leadership issues seems to suggest that certain leadership characteristics that are useful in one field or culture are likely to be useful in another (Muhammad, et al. 2015). The most substantial of leaders is their influential personality that has positive relation with the follower’s job satisfaction and the performance (M. Umar, et al, 2012). 2.2.1 Leadership styles The terminology style is roughly equivalent to the leader’s behavior. It is the way in which the leader influences the followers (Luthans 2002). There are many ways to lead and every leader has own style. Some of the more common styles include autocratic, bureaucratic, leadership and laissez-faire (Muhammad, et al. 2015). 9

24. In the past several decades, management experts have undergone a revolution in how they define leadership and what their attitudes are toward it. They have gone from a very classical autocratic approach to a very creative, participative approach. Somewhere along the line, it was determined that not everything old was bad and not everything new was good. Rather, different styles were needed for different situations and each leader needed to know when to exhibit a particular approach. (Muhammad et al, 2015). Besides describing the basic leadership styles there is no one right way to lead that fits all situations, it depends on one’s own skills, experience, team and task trying to achieve (Yusra et al, 2016). Manager and management style are important factors which affect job satisfaction in business organization (Nagihan, Kadir , 2015). Leadership and management concepts don’t mean the same thing in spite of they look close. While manager is an employee in his/her company and act for a senior executive to achieve determined goals, leader is a person who determines goals of the group and affects group members to achieve those goals. (Nagihan and Kadir, 2015). Different leadership style may affect organizational effectiveness or performance (Nanjundeswaraswamy and Swamy 2014). There are various initiative styles which pioneers follow in any expert association, contingent upon the division and circumstance. People as a leader adopt different styles for different kind of jobs according to the circumstances (yusra et al, 2016). 2.2.1.1 Transformational Leadership Style The transformational leadership style is one of the most implemented styles (Yusra et al, 2016). Transformation oriented leadership is an approach increased inter-personal communication between manager and employee. Transformational leaders, find out employee’s thoughts which are more creative, more innovative, and more adaptive to the exogenous factors and contribute company’s competitive growth model (Nagihan and Kadir , 2015). It has integrity, defines clear goals, encourages clear steps to communication and expressive. This style of leadership encourages, motivates and supports employers, often involves recognizing and rewarding people for their good work. This type of leader inspires their team to work together towards a common target. Transformational leaders combine the best practices and are leaders who are trusted and can motivate others (Yusra et al, 2016). Transformational leadership style concentrates on the development of followers as well as their needs (Nanjundeswaras and Swamy 2014). Managers with transformational leadership style concentrate on the growth and development of value system of employees, their inspirational level and moralities 10

25. with the preamble of their abilities (Nanjundeswaras and Swamy 2014). The transformational style requires a number of different skills. And its primary focus is to make change happen in our self, others, groups, and organizations (Yusra et al, 2016). Leadership that creates valuable and positive change in the followers is Transformational Leadership (M. Umar et al, 2012). This leadership style focuses on "transforming" others to help each other, to look out for each other, to encourage and be harmonious, and to pay attention towards organization as a whole. Transformational Leader can smooth the progress of these changes by placing value on the enlargement of a vision and by encouraging subordinates to pursue that vision (M. Umar et al, 2012). It notifies four leadership scales, namely charisma, inspiration, individual consideration, and intellectual stimulation. Employees can easily share their knowledge among them when organization used transformational leadership style (M. Umar et al, 2012). Majority of the researchers had associated transformational leadership with employee’s performance and job satisfaction and argued that transformational leadership can be the best predictor of employee performance (M. Umar, et al, 2012). 2.2.1.2 Transactional Leadership Style Transactional leadership is in focus of researcher from many years and premeditated in numerous ways with different variables (M. Umar et al, 2012). (Hirvi,2021) conducted his research on association between leader-member exchange, transactional and transformational leadership in forecasting employees performance and concluded that transactional leadership style is a positive predictor of follower’s performance. (Bass, Avolio, Jung, and Bergson, 2003) carry out their research for military platoon which was an organization, working in an unstable environment and it proves that transactional leadership increases performance among the soldiers. Transactional leadership style is relatively weakly associated with performance and is optimistically related to perception of organizational politics (Gadot, 2007). Rajas, Ponce, Almont, and Ponce, (2006) indicated that there is a dominance of the transactional leadership style over transformational and laissez faire styles. This style begins with the thought that colleagues consent to comply with their pioneer when they acknowledge an occupation (Yusra et al, 2016). The exchange as a rule includes the association paying team consequently for their exertion and consistence on a transient undertaking. The pioneer has a privilege to punish colleagues if their work doesn't meet a standard. (Yusra et, al, 2016). The drawback of this style is that, all alone, it can be chilling and flippant, and it can prompt high staff turnover (Yusra et al, 2016). It likewise has genuine confinements for learning based or inventive 11

26. work. Thus, colleagues can frequently do little to enhance their employment satisfaction (Yusra et al, 2016). From last few decades there has been an explosion of speculative and empirical work conducted on leadership styles. Transactional leadership is also measured in terms of job satisfaction and employee performance (M. Umar et al, 2012). 2.2.1.3 Laissez- Faire Leadership style The laissez-faire leadership style is also known as the “hands-off” style ((Muhammad and et al, 2015). It is one in which the manager provides little or no direction and gives employees as much freedom as possible. All authority or power is given to the employees and they must determine goals, make decisions, and resolve problems on their own. This initiative style is frequently connected when the group is extremely fit, very much inspired and composed. Less impedance and decreased direct guideline is ordinary with this initiative style (Yusra and et al, 2016). Laissez-faire leadership avoids energy and obligation, also takes a least activity for organization. (Yusra and et al, 2016).The leader provides for no bearing and permits the group should build its own objectives and resolve its own issues. The leader plays the least role. This is an effective style to use when: employees are highly skilled, experienced, and educated (Muhammad and et al, 2015). This style should not be used when: it makes employees feel insecure at the unavailability of a manager, the manager cannot provide regular feedback to let employees know how well they are doing, and the manager doesn't understand his or her responsibilities and is hoping the employees can cover for him or her. 2.2.1.4 Supportive Leadership Style Supportive leadership is defined as a leadership style that focuses on concern for the requirements and well-being of followers and facilitation of a required climate for collaboration (Northouse, 2016). Leaders who are aware of their duties and responsibilities able to inspire their subordinates are considered to be supportive leaders, it is also stated that friendly with their subordinates, show empathy and treats equally among the subordinates and also leaders using supportive behaviours go out of their way to make work pleasant for followers and leaders enable to increases employee performance by creating an environment to respect each other, fostering cooperation and trust, and via emotional support (Gonzalez, 2013). To bring together the inconsistencies found in the relationship between supportive leadership and 12

27. employee work behaviour and performance, believe employees' task performances and organizational citizenship behaviours, Task performance refers to the extent to which an employee successfully fulfils his or her formal job requirements in contrast organizational citizenship behaviours is defined as voluntary, discretionary extra-role behaviour that can contribute to organizational effectiveness (Afsheen et.al, 2012). Supportive leadership consists of behaviour such as consideration, caring and listening, positive feedback, build confidence and self-control (Hassan., 2017). Consideration is the degree to which a leader is likely to have job relationships characterized by mutual trust and respect for subordinates' ideas (Northouse P. G., 2013). Caring is the principles to focus on followers' needs to help these followers become more autonomous and knowledgeable (Afsheen et.al, 2012). Listening is communication leaders and follower is an interactive process that includes sending and receiving messages (i.e. talking and listening). Positive feedback such as essential to the health and effectiveness of the team, it is essential that the leadership of the team be assessed along with the other by some criteria of team excellence (Northouse., 2013). Build confidence in their ability to compete and finish well, they lacked an element of excitement about running in the new event. Confidence refers to having self-efficacy the belief that one can accomplish a specified task (Northouse ,2013). It is a self- control process because people have control over the extent to which they allow others to influence them (Nicholson, 2000). 2.2.1.5 Participative Leadership Style Participative leaders encompass their subordinates in the decision-making process, these leaders pay attention to subordinates values and seek their input on important decisions in this leadership style there is no formal distinction between leaders and followers' participative leader can be deliberated as a temporal coordinator for the group of like-minded people (Mohamad, 2014). a participative leader possesses consultative behaviors such as imploring subordinates for ideas before making an ultimate decision, although they retain final decision authority, the participative leader shares duties with subordinates by encompassing them in the preparation, decision-making, and implementation phases (Sinani, 2016). Participative leadership is associated with consensus, consultation, delegation, and involvement The main task of the Participative leadership is consulting with subordinates and evaluating their opinions 13

28. and suggestions before making the final decision (Franklin, 2016). The main vehicle for the success of participative leaders is their use of participative decision making which allows employees across all levels in the organization to be involved in the final decision. The main emphasis of this style is on management consultation with followers before making key organizational decisions (Franklin, 2016). When companies enter the decision-making process, the outcomes from the decisions made can greatly affect both the company's stability and that of its employees. Bringing employees on board when making decisions about the company's future, helps strengthen the existing relationship between them and the leadership (Franklin, 2016). The benefits associated with this approach include increased trust in the leaders by their followers Involving employees in the company's decision making process enables leaders to bring transparency to the workplace Participative leadership also points to employee motivation as a building block to superior employee performance, Employee's motivation plays a crucial role in leadership effectiveness which leads to high productivity (Franklin, 2016). According to Seblewongel, 2016, the effectiveness of leadership rests on a process of influence, in this case, employees are motivated to work towards goals, not through intimidation, but individual inspiration can be considered as one of the most important factors that can help an organization to achieve its goals (Zinabu, 2018).(Mohamad, 2014) Argues that participative decision making is the most suitable approach for managers because many people take part in the decision-making process and a large number of employees feel committed to the decision (Northouse, 2016). The rapid rate of changes in the environment, leadership and organizational structures indicates that the use of participative decision making is a must for future organizations and also have the following basic behavior such as consultative behavior, pay attention to subordinates value, empowerment, Joint decision/sharing, responsibilities and intrinsic motivation (Hassan Z., 2017). Consultative behavior is a leader behavior that will be motivational when subordinates have a high need for independence and/or knowledge that can contribute to effective decision making by the leader. Pay attention to subordinates value is how leaders work with followers to reach common goals. Delegation/empowerment means conferring of authority from an executive to another to accomplish a particular assignment. Delegation gets the decision making closer to the locus of where the decision is implemented (Nicholson, 2000). Joint decision making, (where the influence of parties to the decision-making process is equally balanced). For some, the continuum of influence extends to a situation where the employee or group of employees makes the decision alone. (Nicholson, 14

29. 2000)Intrinsic Motivation is the motivation to do work because it is interesting, engaging or positively challenging (Nicholson, 2000). 2.3 Job Satisfaction Different definitions are made in literature job satisfaction concept. According to Vroom (2000) job satisfaction means employees “happiness due to job”. Job satisfaction is in broad sense a physical and social effect which is shown up as employee’s reactions and interior fluctuations as a result of work conditions. According to (Testa, 2000) job satisfaction is a positive statement about employees thoughts related to assessments of job and job experiences. In general, job satisfaction is an extent of meeting expectations social, physiological, self-realization, satisfaction or dissatisfaction about his/her job. Actually job satisfaction, state a general emotional reaction to the singular conditions. Source of job satisfaction is not only position held in workplace but also physical, social environment and relations between managers and colleagues, group culture and management style (Rashid, and Heidary, 2012). All those factors have different effects on individual’s job satisfaction levels. From decades; researchers take considerable attention on job satisfaction. Researchers discussed different aspects and determinants of job satisfaction in their own ways. Job satisfaction can be influenced by a variety of factors, e.g. the quality of one’s relationship with their supervisor, the quality of the physical environment in which they work, degree of the fulfillment of their work, etc. (M. Umar Panache, et al, 2012). For an organization to compete international market, one of the key factors is that its employees are satisfied with their jobs and leaders have amusing relationship with their subordinates and as result employees are pioneer and innovative that helps to grow up the business. 2.3.1 Factors that Affects Job Satisfaction Job satisfaction is concerned with several attitudes including attitudes about the job characteristics, compensation and benefits, status, social security, advancement opportunities, technological challenges and respect (Tella A., et al, 2007). The most widely used factors of job satisfaction are work payment, promotion, supervision and coworkers (Luthans F, 2005). Similarly, having adequate work equipment, resources, and training opportunities and an equitable workload distribution also significantly and positively affect employee job satisfaction (Ellickson MC, Logsdon K, 2001). Many studies show that job satisfaction has been related to work environment, relationship with co-workers and supervisor, promotion and salary or pay, job security, leadership styles and the level of fairness in the organization in general. Work environment, since employees spent most of their times at work place. According to (Denton Z., 2005), a healthy working environment includes cooperative colleagues, supportive seniors, open communication, etc. Work environment plays important roles in 15

30. employees in staying or leaving the organization. Pay and Promotion is another factor that plays vital role in satisfying an employee (Bezawit Mulugeta Fulas and Solomon Markos, 2017). An employee who gets right amount of payment according to their job is motivated to continue working. But, when employees are paid inadequately they are dissatisfied with the job and can even discontinue working in a long run. According to (Hussami M.A., 2008) employees want supervisors who have a bond with them and who trust them, understand them and show fairness. According to (Williams E., 2004) relationship with supervisors plays important role in employee job satisfaction. (Buckingham and Coffman, 2001) have found that talented employee may join an organization for many reason, but how long that employee stays and how productive he/she is while there is determined by the relationship with the immediate supervisor. 2.3.2 The Relationship between Leadership Styles and Employee Job Satisfaction In a historical overview of the concept of job satisfaction, Holland, (2001) suggested that satisfaction with one’s particular job is a by-product of meeting different motivational needs within the employee. Job satisfaction is a very important aspect for modern organization and much research work has been performed to increase job satisfaction. Leadership style is an important determinant of employee job satisfaction. The reaction of employees to their leaders is usually depending on the characteristics of the employees as well as on the characteristics of the leaders (Wesley and Yukl 2003). Employee job satisfaction is influenced by the internal organization environment, which includes organizational climate, leadership types and personnel relationships (Seashore and Taber, 2000). The quality of the leader-employee relationship or the lack of has a great influence on the employee’s self-esteem and job satisfaction (Chen and Spector, 2000). Employees are more satisfied with leaders who are considerate or supportive than with those who are either indifferent or critical towards subordinates (Yukl, 2006). Negative leader- employee relations reduce productivity and increase absenteeism and the turnover to the organization can be quite high (Ribelin, 2003). Many studies show positive relationship between employee job satisfaction, management style, and leadership style and company vision (Nagihan, and Kadir, 2015). Voon, Ngui and Ayob (2011) show the stronger relationship between transformational leadership and job satisfaction. If the organization has to enhance job satisfaction among their workers and to increases commitment, researcher viewed that they must follow transformational leaders. Krishnan (2005) expresses transformational leadership as a key factor of high job satisfaction and thus increased employee performance. 16

31. Schaubroeck, Lam (2007) is of view that there is positive relationship between transformational leadership and employee performance and it creates a positive impact on team performance. Janssen, Yperen (2004) says that transactional leadership entertains employee performance by increasing the follower’s job satisfaction. Participative leadership style or directive both can become the element of increasing employee’s participation, and in turn enlarged performance (Kahai, Sosik and Avolio, 2004). According to (Robbins, 2003), the employee resign rate with transformational leadership is less than with transactional leadership. Improving the employees‟ working situations, fulfilling their needs, and helping them perform better are positively related to transformational leadership (Liu, et al. 2003). Liang, et al (2011) take job satisfaction as mediator between transactional and transformational leadership style and articulate that these styles create strong correlation between employee’s performances. 2.4 Empirical Review of Related Studies Many studies have been conducted on leadership. One useful frame work classifying this studies focus refer to whether leadership is to be studied as a set of traits or as a set of behaviors. Traits refer to a set of characteristics the leader possesses whereas behavior refers to what the leader does. The second dimension is approach refer to whether leadership is studied from universal or contingent approach.(Leslie W. Rue and Liod L.,1992:379) Javed, Balouch and Hassan (2014) established that there is a significant relationship between transactional leadership style and employees‟ job satisfaction and this transactional leadership style is more adopted by the leaders as compared to transformational leadership style. The authors recommend the research results to the senior leadership of banks for them to improve their employees‟ job satisfaction. This they offer can be done through training their leading staff in branches to adopt transactional leadership style. The study involved 230 people working in five selected private banks of four districts of the Punjab province of Pakistan. From the analysis of strong and weak point of these transformational and transactional leadership styles, it is evident that more empirical work is required to achieve clearer understanding of these two concepts. This study look at a combination of both and values based leadership style. In their study of two hundred Malaysian executives working in public sectors, Voon, et al., (2011) establishes that transformational leadership style has a stronger relationship with job satisfaction. This implies that transformational leadership is deemed suitable for managing government 17

32. organizations. The study in Malaysia sought to define the aspects of transactional and transformational leadership that affect employee’s job satisfaction in the public sector in Malaysia. In Iran, Hamid far, F. (2009) conducted a study of the relationship between leadership styles and employee job satisfaction at Islamic Azad University branches in Tehran, Iran leadership styles (the independent variable) influence employee job satisfaction (the Dependent variable). Findings were the dominant leadership styles were transformational and transactional and employees were moderately satisfied with their job Nagihan Yildiz Tepret and Kadir Tuna (2015), examined effect of management factor on employee job satisfaction, an application in Turkish Telecommunication sector. They considered leadership styles like, production oriented, employee change oriented and transformational. Their result shows that there is positive and strong relationship between leadership styles and job satisfaction. In Ethiopia different researchers tried to study the effect of leadership styles of employee job satisfaction considering different sectors. To see some example, Bezawit Mulugeta and Solomon Markos (2017) studied the effects of leadership style on job satisfaction at Heineken Ethiopia considering variables like Transformational, Transactional, Laissez-faire leadership styles and job satisfaction. A total of 210 respondents completed the MLQ and JSS survey questionnaires. The result of the regression analysis indicated that effective kind of leadership style has a positive relationship with employee job satisfaction that shows employee job satisfaction is predicted 52% by the type of leadership style. The researcher suggested that the effect of leadership style has a significant effect on employee job satisfaction. Ermiyas Zeberga and Jemal Mohammed (2017) studied the relationship between leadership styles and employee’s engagement in Ethiopian Airlines considering target population, employees of Ethiopian Airlines working at Head Quarter which includes the seven strategic business units. From 9604 total populations of Ethiopian Airlines Head Quarters, 370 employees were selected as samples of the total population. Employees‟ engagement dimensions were significantly explained by transactional and transformational leadership styles. Generally, transformative leadership has strong relationship with employees‟ engagement and leaders shall be more transformative to enhance and develop employees‟ engagement to the highest level. Particular to Ethio telecom, there is unpublished master’s thesis entitled, assessing the effect of contemporary leadership styles and their consequences on job satisfaction: a case of Ethio telecom‟ by Esubalew Kassa and Fisseha Afework (2017) at Addis Ababa University. They assessed the level of practice of servant, LMX and transformational leadership styles in case of Ethio telecom. Their 18

33. study indicated Ethio telecom is not practicing servant, LMX and transformational leadership styles well. Furthermore, the study result indicated employee job satisfaction is at low level. Job satisfaction had shown, on average, a strong positive relationship with servant, LMX and transformational leadership styles. Furthermore, the study results showed job satisfaction has a strong positive relationship with job satisfaction. The study results drive a conclusion of an increased practice of transformational, leader-Member and servant leadership styles would bring about a better job satisfaction. 2.5 Research Gap As it is stated in the empirical literature review most researcher focus to assess the impact of leadership styles on the employee performance of most organizations. And most study did not conduct the impact of leadership styles on Ethio telecom spatially regarding to the specific study area, so this research was fill the gap by focusing to study the impact of leadership styles on job satisfaction of Ethio telecom South and East districts of Addis Ababa of kaliti, akaki beseka, saris, betel, sarbet and ayertena branches. 2.6 Conceptual framework Leadership effectiveness emanates from many factors. Among many are the leader’s trait and behavior. The leader’s trait includes the leader’s intellectual capability that can be derived from various theoretical frameworks. This intellectual capability of the leaders makes them to be more effective in motivating and influencing follower’s behavior towards the common organizational objectives. There were various contemporary theories (styles) of leadership developed by scholars. Miles and Huberman (2014) define the conceptual framework as a visual or written product that explains in the form of a narration; graph of what is to be studied as the main factor. Leshem and Trafford (2007) offer that conceptual frameworks serve the purpose of providing theoretical amplification of what the study wants to investigate and allow readers understand the objectives of the research and how these is achieved. The conceptual framework presents the independent and dependent variables. Conceptual framework can be developed based on literature and findings from different researchers. 19

34. For this study we developed based on Bass and Riggio‟s (2006) and Munevver Cetin, et al (2012) writings that leadership style influences job satisfaction. Figure 2.1, shows that three leadership styles are related to job satisfaction. The three styles are transformational, transactional and laissez- faire. There are five dimensions of transformational leadership style namely idealized influence (behavior), idealized influence (attributed), inspirational motivation, intellectual stimulation and individualized consideration. It is assumed that each of these styles relates to job satisfaction in a certain way. There are three dimensions of transactional leadership style that relate to job satisfaction. These are contingent rewards, management by exception (active) and management by exception (passive). Each of the three dimensions is also assumed to be related to job satisfaction in a certain way. The third style is laissez-faire leadership style. It is also assumed that this style is related to job satisfaction of employee. In this model, leadership styles are regarded as independent variables and job satisfaction are taken as dependent variables. The fourth and the fifth are participative and supportive leadership styles respectively. Independent variable Dependent variable L E A D E R S H I P TRANSFORMATIONAL LEADERSHIP STYLE TRANSACTIONAL LEADERSHIP STYLE JOB LAISSEZ-FAIRE LEADERSHIP STYLE SATISFACTION S T Y L E S SUPPORTIVE LEADERSHIP STYLE PARTICIPATIVE LEADERSHIP STYLE 20

35. Figure2.1. Conceptual framework (adapted from Bass and Riggio’s (2006) and Munivver cetin, et al (2012)) CHAPTER THREE RESEACH METHOD 3.1 Introduction This chapter described the research methodology and techniques that were used to conduct the study. It illustrate an overview of the research study area, the research approach, design and method, population and sample, data source and type, description of the data collection instrument, data collection procedure, ethical considerations and finally the methods of data analysis is present. 3.2 Research Approach Many particular topics was investigated by the researcher including probable correlations between two variables, namely, organizational leadership style and employees’ job satisfaction quantitative research method was used to ensure impartiality. To do statistical computations and make conclusions, data must be gathered and converted to numerical form. Various methods are used to gather data, which is then processed for statistical analysis in accordance with rigorous guidelines. Quantitative methods was used to evaluate objective hypotheses by analyzing the connection between variables. It is possible to measure these variables, often using equipment, and then do statistical analyses on the numerical results (Creswell, 2008). When employing a quantitative approach to data collection and analysis, it is necessary to have a firm grasp on the linkages between organizational leadership style and employees’ job satisfaction using an inferential statistical method. It's important to note that 3.3. Research Design This study was used the Descriptive and causal (explanatory) research design were used due to the fact that it allows analysis about causation and relation of variables. The research followed both qualitative and quantitative approach of research. Quantitative approach was used because of data have to be gathered from large population of South and East parts of Addis Ababa district through 21

36. questionnaire and qualitative gathered from interview. 3.4 Population and Sampling Techniques In South and East districts of Addis Ababa there were 14 branches of administration. Those branches were kaliti, akaki beseka, saris, hana mariyam, lafto, gofa mikael, lebu, jemmo, kera, sarbet, mekenisa, kore, betel and ayertena. From out of this branches approximately half of the total, because mass population and necessary information were found in these six branches namely, kaliti, akaki beseka, saris, betel, sarbet and ayertena were selected using simple random sampling techniques. In these selected six branches there were 525 permanent employees and 38 managers at different level named as leaders, totally 563. 220 employees were selected through stratified sampling technique followed by purposive sampling technique to be selected 14 leaders. Finally from each stratum and simple random sampling method would be employed to be selected sampling unit. Totally 234 (Male 130 and Female 104) respondents were sample of study. Sample of study was selected using the following Solvin formula as follows. ? 1 + ??2 ? = Where: n = required sample size, N = the population size, and e2= the margin of error (0.05) 563 1+563(0.05)2 n = ? = 234 Table 3.1: Population and Sample Population Sample Name of District Number of sub- Employee Leaders Employee Leaders branches Kaliti 2 57 4 25 3 Akaki beseka 2 68 5 27 4 Saris 2 120 9 36 2 22

37. Betel 2 112 8 36 2 Sarbet 2 116 9 46 2 Ayertena 1 52 3 50 1 Total 11 525 38 220 14 3.5 Sources of Data In this study both primary and secondary data sources were used. The Primary data sources were the survey questionnaire. Multifactor Leadership Questionnaire (MLQ-5X) was used for primary data collection. The Secondary data sources were mainly used to review the related literature on the topic under study and to get the human resource related data of the Ethio telecom. These include: books, research studies, referred journal articles and company documents. 3.5.1 Primary sources of data Regarding the impact of leadership styles on employee job satisfaction primary sources of data were collected from employees and leaders of Ethio Telecom, south and east region of Addis Ababa in six selected districts. The Multifactor Leadership Questionnaire (MLQ-5X) was the standard instrument for assessing transformational, supportive, participative, laissez-fair and transactional leadership behavior. MLQ help the researcher to rate the leadership rates leadership behaviors utilized by leaders/coordinators. 3.5.2 Secondary source of data The researcher adapted standardized questionnaires named Leadership Questionnaire (MLQ-5X) and Minnesota Satisfaction Questionnaire (MSQ). The questionnaires consists three parts, the first part was deal with demographic aspect of respondent which consists 6 items. The second part assessed with leadership styles which incorporate 22 items and the third part assessed job satisfaction of employee that consists 14 items. The rating for the (MLQ-5X) starts from Strongly disagree (1), Disagree (2), Neutral(3), Agree(4), and Strongly Agree (5). Minnesota Satisfaction Questionnaire has also five point rating scale that ranges from not satisfied (1), somewhat satisfied (2), Satisfied (3), Very satisfied (4) and extremely satisfied (5). This research identify how the leadership styles measured by (MLQ-5X) items relates to employees‟ satisfaction with pay, promotion, supervision, fringe benefits, contingent rewards, operating 23

38. conditions, coworkers, nature of work and communication as measured by Minnesota Satisfaction Questionnaire. 3.6 Variables of the study Independent Variables the independent variables of the study were: Leadership styles such as Transformational, Transactional, participative, supportive and Laissez-faire Dependent Variable of the study was: employees Job Satisfaction 3.7 Methods of Data Analysis This study was employing both quantitative and qualitative method of data analysis. The collected data wasorganized in tabular form to analyze the quantitative data. After making the necessary coding, the data was analyzed using Statistical Packages for Social Science (SPSS- Version 26). Both descriptive and inferential statistical procedures were employs to analyze the data .Descriptive statistical tools such as frequencies, percentages, means and standard deviations and inferential statistical tools such as correlation analysis and regression were used to analyze quantitative data. In addition, the strength of correlation between the two variables was analyzed by using Pearson Correlation Coefficient. Pearson r Correlation analysis was the most appropriate statistical tool to analyze the relationship between two or more variables either interval or ratio data. Pearson r Correlation coefficient was also the most suitable measure of correlation. In order to test the hypothesis, an alpha level of 0.05 or 0.01 was used as the level of significance for this study. The rejection or acceptance of a null hypothesis was being based on some level of significance (alpha level) as a criterion. 5% (0.05) alpha (a) level of significance was considered as a standard for rejection null hypothesis (Best & Kahn, 2006). 3.8 The Model of Specification The study was employing multiple regression models. This model was capturing the impacts of leadership styles on employee’s job satisfactions by breaking into two parts (Shafie et, al, 2013). The first parts of the model mainly focus on the analyzing the aggregate variables of leadership style (supporting leadership, participation leadership, Laissez-faire leadership, transactional leadership, and transformational leadership) and job satisfaction. 24

39. The second part of the model on the other hand, was focused on the disaggregate impacts of these explanatory variables on the dependent variable. The basic objective of using linear regression equation on this study was to make the study more effective at describing, understanding and predicting the stated variables. According to Kothari (2004) the linear regression equation that was used in the forthcoming study was: ′+ e ′+ ?2?2 ′+ ?3??3 ′+ ?4??4 ′+ ?5??5 ? = ?0+ ?1?1 Where Y was the dependent variable job satisfaction. ?0, ?1, ?2,?3 ,? 4 ??? ?5 Were parameters to be estimated or regression line coefficients ?1 ′,?2 ′,?3 ′?4 ′,?5 ′ were independent variables ′, supportive leadership X1 ′, Participative leadership X2 X3 ′Laissez- Faire Leadership ′; Transactional leadership X4 ′; Transformational leadership X5 e Was the error term 3.9 Definition of Variables 3.9.1 Dependent Variable This was being developed base previous literatures done where the measures was being cite and tested by many scholars in their research. For the purpose of addressing the objectives of the study, the dependent variable to be evaluated by the researcher will be job satisfaction. 3.9.2 Independent Variable The Independent Variable of the study, bases on specific objectives set at the outset, independent variables will be the five leadership style (supporting leadership, participation leadership, Laissez- Faire leadership, transactional leadership, and transformational leadership) with sub scales allotted to them. Accordingly, supporting leadership style will be indicating by variables such as Consideration, Self-control, Build Confidence, Positive feedback, and caring and listening. Participating Leadership will be indicate by Consultative Behavior, Pay attention/ to subordinates value, Delegation/empowerment, Joint Decision/Sharing Responsibilities, and Intrinsic Motivation. Laissez- Faire Leadership will be indicated by Empathy, Awareness, Persuasion, Listening, and Stewardship. Transactional Leadership is by Management by exception, Contingent reward, and Contingent punishment. Transformational Leadership is by Idealize Influences, Intellectual Stimulation, Individualized consideration, and Inspirational Motivation. 25

40. 3.10 Validity In a pilot research, the methodology, parameters, and materials utilized in the full-scale investigation was determined. According to Mertler (2018), a pilot test is critical for identifying flaws in the study design and making necessary adjustments to ensure that the data acquired is accurate and dependable. When it comes to instrument validity, the term refers to how accurately a measuring instrument measures what it is meant to (Yin, 2013). Content validity testing was utilized to determine the instrument's validity in this research. Indicators or substance of a certain idea was assessed to see how well they represented the data acquired using a particular instrument (Lewis, 2015). An experienced university supervisor and other advisors was brought in to make sure that the questions tested or measured what was intended. 3.11 Reliability After the data had been coded and entered into SPSS version 23, a test for reliability had been carried out. Reliability is the degree to which a measurement can be repeated and provide the same findings. For this study, a Cronbach's alpha coefficient, a common measure of internal consistency, was determined. Scale correlations may be evaluated using Cronbach's alpha, a reliability metric that measures the correlation between item answers produced from the scale. The value of this variable ranges from 0 to 1. (Shelby, 2011). 3.12 Ethical Consideration Before the actual data collection and conduct ethical clearance and again obtain permission for this study from Gage university College of Management and business administration The study participants‟ involvement is based on their willingness and informed written consent obtained from every respondent who agreed to participate in the study. 26

41. CHAPTER FOUR DATA PRESENATATION, ANAYISIS AND DICUSSION 4.1 Introduction This chapter presents and analyzes data collected from the participants. Selected demographic characteristics of sample is presented and descripted in this chapter. Findings about the relationships/effects of leadership styles on employee’s job satisfaction and relevant statistical analysis to answer the research questions also be presented and analyzed. The study used correlation analysis to measure the degree of association between the variables under consideration. Regression Analysis is also used to test the effect of independent variable on dependent variable. 4.2 Demographic Characteristics of Respondents In this section, personal and job related profile of respondents is presented. The personal and job profiles of the respondents are analyzed as per their gender, age range, year of experience, educational level, position and marital status. Descriptive statistics are performed on the demographic variables as a means of describing the respondents. Data collected through questionnaires and interview that related to the determinate impacts of employees job satisfaction are presented and analyzed concurrently. Moreover, Correlation Coefficient and regressions were analyzed through it. The total number of questioner that distributed was 234 out of it 224 was properly filled and returned finally used for analysis purpose. And 10 questioners are not responded Out of the total of 234 questionnaires that were distributed to the selected sample of employees 224 (95.72%) properly filled questionnaires were collected and used for the analysis. Data collected from the target population was analyzed using SPSS version 26. As a result of this, the responses of the participants regarding the independent and dependent variables were summarized using the mean and standard deviation whereas the demographic profile of the respondents is summarized using frequencies and percentage. In addition, regression analysis was used to identify the effect of independent variable on the dependent variable. 27

42. Table 4.1: gender of respondent gender of respondent Frequency Percent Male 120 53.6 Female 104 46.4 Total 224 100.0 Source: Own Survey Data (2024) According to the above table 4.1, from the total sample male respondents were 120 (53.6%) and 104 (46.4%) of them were female. This implies that there are unbalanced employees regarding gender. Table 4.2: age of respondent age of respondent Frequency Percent 18-25 136 60.7 26-30 64 28.6 31-50 24 10.7 Total 224 100.0 Source: Own Survey Data (2024) According to variable two 136 (60.7%) of the employment were between 18-25 years old and 64 (28.6%) of them are between 26-30 years old and 24 (10.7%) of them were between 31-50 years old. This result show that almost (89.3%) sum of 136 (60.7%) and 64(28.6) of the employee are young. Table 4.3: experience of respondent experience of respondent Frequency Percent 1-5 144 64.3 6-10 64 28.6 >10 16 7.1 Total 224 100.0 Source: Own Survey Data (2024) According to the above table 4.3, 144 (64.3%) of the respondents have the experience of less than 5 years and 64 (28.6%) of them were working between six to ten years and only 16 (7.1%) of them were serving the institution more than eleven years. This result revealed that more of the employees have least service year. Table 4.4: educational level 28

43. educational level of respondent Frequency Percent degree 208 92.9 masters 16 7.1 Total 224 100.0 Source: Own Survey Data (2024) According to table 4.4, 208 (92.9%) of them have the qualification of degree and 16 (7.1%) of them have qualified as Master’s Degree. This revealed that more of the employees have qualified with degree program and the least qualified are master’s program. Table 4.5:position of respondent position of respondent Frequency Percent officer 184 82.1 coordinator 16 7.1 manager 24 10.7 Total 224 100.0 Source: Own Survey Data (2024) Regarding position in the company 184 (82.1%) of them are officers and 24(10.7%) are managers and 16 (7.1%) of them are coordinators. This result implies that officers are more and coordinators are least in number. Table 4.6: marital status of respondent marital status of respondent Frequency Percent single 176 78.6 married 48 21.4 Total 224 100.0 Source: Own Survey Data (2024) In the Variable six of the above table 176 (78.6%) of the employee are living alone and 48 (21.4%) of them are married. This result show that more of employments are living alone and least of them are married because of un-researchable cases in this study. 4.3 Descriptive Statistics of the Variables The descriptive statistics was used to examine the mean and standard deviation of the responses of respondents on the MLQ and MSQ. The MLQ scale contains 22 questions that ask 29

44. the respondents their perception in the five dimensions of Leadership styles. Table 3.2 clearly stated which question states what kind of leadership style. The MSQ contains the 14 items/factors that determine employees‟ job satisfaction. Table 4.7: The descriptive statistics of the study variables Descriptive Statistics N Minimum Maximum Mean Std. Deviation Transformational 224 1.50 5.00 4.3482 .67245 Leadership Transactional Leadership 224 2.20 4.60 3.8000 .44500 Laissez-fair Leadership 224 1.00 4.67 3.5952 .71070 participative Leadership 224 1.33 4.33 2.9524 .81693 Supportive Leadership 224 1.33 4.33 2.7024 1.15845 Job Satisfaction 224 3.07 4.57 3.9388 .41774 M=Mean score SD= Standard Deviation Source: Own Survey Data Analysis Result (2024) The above table 4.7, indicates dominant leadership style used by the leaders in Ethio Telecom, mean scores of all the dimensions of leadership styles were computed. It shows that, the highest mean score was that of transformational leadership style (M= 4.348, SD= 0.67245) followed by transactional (M= 3.8, SD= 0.445), laissez-fair leadership style is the third (M= 3.595, SD= 0.710), supportive leadership is the fourth (M= 2.95, SD= 0.817) and Participative leadership is the least applicable in the institution by leaders with (M= 2.7024, SD= 1.158). 30

45. From this one can conclude that the dominant leadership styles were transformational followed by transactional leadership styles. Thus, the data shows that transformational leadership style was the most frequently used style followed by transactional leadership style. Therefore, it can be concluded that the dominant leadership style was transformational leadership style. On the other hand employee of Ethio Telecom of the study region are satisfied on their job by their leaders with the value of (M=3.9388, SD= .4177). This result shows that employee are satisfied with the indicated mean value from the total rating scale of 5, this indicated that almost 68% of the employee are enough satisfied on their job because of the cooperation leaders. 4.4 The Relationship between Leadership Styles and Employee Job Satisfaction The correlation analysis result was performed to see the association between Leadership style and job satisfaction. Therefore, the correlation analysis revealed the relationship between leadership styles with overall job satisfaction factors. If the correlation result lies between -1 and 0, the two variables are negatively related. But if the correlation result of the two variables lies between 0 and 1, the two variables are positively related. Furthermore, according to Field (2005) general guidelines correlations of 0.1 – 0.29 are considered small, correlations of 0.30 – 0.49 are considered moderate and correlations above = > 0.5 are considered large. The correlations of the variables are shown in Table 4.8; however, each variable correlates perfectly with itself, as evidenced by the coefficients of +1.00 at the intersection of a particular variables‟ row and column. Correlation coefficients say nothing about which variable causes the other to change. Although it cannot make direct conclusion about causality, we can take the correlation coefficient a step further by squaring it (Field, 2005). The correlation coefficient squared (known as the coefficients of determination, R2) is a measure of the amount of variability in one variable that is explained by the other. For this research work, the Pearson correlation coefficient was computed to determine the degree, strength and directions of association between leadership styles and employee job satisfaction in Ethio Telecom of South East Region of Addis Ababa. 31

46. Table 4.8: Correlation of Leadership styles and employee job satisfaction Variables Transformational Transactional Laissez-faire Participative Supportive Transformational 1 .830 1 Transactional .246 .310 1 Laissez-faire Participative .183 .480 . 420 1 Supportive .133 .209 . 245 .810 1 Job Satisfaction .598 .490 .175 .112 .086 1 *Correlation is significant at 0.05 level (2-tailed) r= person correlation coefficient Source: Own Survey Data Analysis Result (2024) According to the above Table 4.8, the relationship between leadership styles as transformational, transactional, laissez-fair, participative and supportive with employees job satisfaction (r=.598, n=224, p<0.05, r=.490 n=224, p<0.05, r=.175, n=224, p<0.05, r=.112, n=224, p<0.05, r=.086, n=224, p<0.05) respectively. This result shows that transformational type of leadership has strong positive relationship with employee job satisfaction, transactional types of leadership styles has moderate positive relationship with employee job satisfaction and laissez-fair, participative and supportive types of leadership styles have small positive relationship with employee job satisfaction respectively. It mean that leaders these follow transformational style have directly relationship with their employments job satisfaction in the Ethio telecom of South Eastern Region of Addis Ababa and employment was satisfied small within leaders of laissez-fair, participative and supportive styles in the South Eastern Region of Addis Ababa Ethio telecom. 4.5 Multiple Regression Analysis The multiple regression analysis was applied to evaluate the impact of leadership styles (independent variables) on employees’ job satisfaction (dependent variable) in for this research to test the impact of leadership styles on employment job satisfaction in Ethio telecom of South and East Region of Addis Ababa. According to (Aron, 1994) regression analysis is a statistical method used to predict, inference, and hypothesis testing and modeling of causal relationships to examine the relationship between dependent variable and independent variables. 32

47. 4.5.1 Multiple Regression Assumptions 4.5.1.1 Normality Test Like most statistical analysis which examines both dependent and independent variable this research need to use parametric statics methods such as histogram, normal Q _ plots and box plots to indicates whether those variable are approximately normally distributed or not. According to C.R. KOTHARI (2001) in many knowing the shape of the distribution curve is crucial to the use of statistical method in research analysis since most methods make specific assumptions about the mature of the distribution curve. But if the curve is distorted (whether on the right side or on the left side the data was asymmetrical distribution which indicate that there is skewness which is a measure of asymmetry and shows the manner in which the items are clustered around the average. As per Osborne and Waters, (2002) Regression analysis technique variables are assumed to normal distributions but it does not describe which variables. Histogram is a tool used to test the normal distribution of statistical data. When histograms are close to zero it is assumed that the data is normally distributed for the dependent variable. Nevertheless, histogram was appear to show normal distribution if skewness and kurtosis do not near to zero. In reality data do not show to have perfectly normal distribution. Skewness and kurtosis are checked for normality. Skewness shows if the data is positively or negatively skewed in the term of the response. According to the information in figure 4.1 below indicated that the skewness and kurtosis are not far from zero or between them the zero value is indicated. In this case the research data show distribution is approximately normally disturbed. 33

48. Figure 4.1 Histogram regression of standardized residual of leadership style and employee job satisfaction 4.5.1.2 Multi-Co linearity Test As per Belsley et al., (2001) the existence of correlations among different predictors is called in case multi –colinearity. In cases of a perfect correlation between two or more predictors), multi-colinearity can indicate that no unique least squares solution to a regression analysis can be computed and the variance inflation factor is one known measure of multi-colinearity. Multi-collinearity statistics show Variance Inflation factors (VIFs) ranged from 1.489 to 5.990 while tolerance figures ranging from 0.167 to 0.672. These statistics recommend that multicollinerarity not suspected among the independent variables. As per Field (2005) multicollinearity would be suspected if tolerance figures are below 0.10 or if VIF statistics are 10.0 or higher. 34

49. Table 4.9: The Multi collinearity test distribution result Collinearity Statistics Model Tolerance VIF (Constant) Transformational Leadership .180 5.564 Transactional Leadership .167 5.990 Laissez-fair Leadership .672 1.489 participative Leadership .214 4.683 Supportive Leadership .233 4.294 a. Dependent Variable: Job Satisfaction 4.5.2 Linearity Assumptions The model that shares the response Y to the predictors X1, X2, X3... XN is assumed to be linear in the regression parameters (Chatterjee and Hadi, 2012). This means that Standard multiple regression can only precisely estimate the relationship between dependent and independent variables if the relationships are linear in nature. As in the equation: Y=B0 + B1X + B2X +B3X + B4X + B5X this regression equation is still a linear regression equation because Y is modeled as a linear function of the parameters. According to the information in figure 4.2 below indicated Normal P-P Plots show that this assumption had been met for this study. Figure 4.2: Normal P-P Plot of dependent variable employee job satisfaction 35

50. 4.6 Regression Analysis As per (James and Geoffrey, 2000) The Durbin-Watson statistic will permanently have a value between 0 and 4. No correlation is expected between dependent and independent variable if value of Durbin- Watson becomes 2 , Values from 0 to less than 2 shows positive autocorrelation between dependent and independent variable and if values and when the value of Durbin-Watson ranging from 2 to 4 designate negative autocorrelation between dependent and independent variable. Durbin-Watson test for auto correlation of the residual from the regression analysis is acceptable within the range of 0 to less than 2 that is 1.805. Table 4.10: Regression Model Summary Std. Error of the Model R R Square Adjusted R Square Estimate Durbin-Watson .699a 1 .488 .477 .30218 1.805 a. Predictors: (Constant), Supportive Leadership, Transformational Leadership, Laissez-fair Leadership, participative Leadership, Transactional Leadership b. Dependent Variable: Job Satisfaction 4.7 ANOVA of Leadership styles and Employee job satisfaction Based on the ANOVA table the result of this study revealed that data gather from the respondents indicated that there is positive significant regression among the dependent and independent variable at a value of p 0.000 with is less than 0.05 level of confidence. So the ANOVA result coefficient of determination was significant as evidence of F ratio 41.636 with p-value 0.000 < 0.05 (level of confidence). This indicate that no matter the degree of influence difference (Supportive Leadership, Transformational Leadership, Laissez-fair Leadership, participative Leadership, Transactional Leadership) have strong influence on employee job satisfaction in Ethio telecom of South and East Region of Addis Ababa. Hence this model is appropriate to predict employee job satisfaction in Ethio telecom of South and East Region of Addis Ababa the above leadership style. 36