Effect of Leadership Styles on Employees’ Motivation: The Case of Selected Multi- National Corporations in Addis Ababa
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Date
2025-03-01
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AAU
Abstract
Thi s st udy is depl oyed t o exami ne t he effects of leadershi p styl es on e mpl oyee moti vati on wit hi n
si x sel ect ed multi nati onal corporati ons ( MNCs) locat ed i n Addi s Ababa, Et hi opi a. The pri mary
obj ectives i ncl ude i dentifyi ng t he leadershi p styl es practiced, exami ning t he component s of
leadershi p styl es t hat si gnificantl y i nfl uence moti vati on, assessi ng t he rel ati onshi p bet ween
transf or mati onal, transacti onal, and l aissez-fai re leadershi p st yl es wit h moti vati on, and
i dentifyi ng t he domi nant leadershi p styl e f or enhanci ng e mpl oyee moti vati on. A survey was
di stri but ed t o 154 e mpl oyees, wit h 138 f ully compl et ed responses anal yzed usi ng SPSS Versi on 24.
To address t his concern, on t he t heoretical literat ure revi ew t ouches Trait, Behavi oral and
Conti ngency or sit uati onal approach t hat are rel at ed t o leadershi p styles and regardi ng t he
dependent vari abl e motivati on Abraha ms Masl ow Hi erarchy of need t heory and expect ancy
t heori es were discussed. The fi ndi ngs i ndi cat e t hat transf or mati onal leadershi p, wit h di mensi ons
such as i dealized i nfl uence and i nspirati onal mot ivati on, has t he most si gnificant positive effect
on e mpl oyee moti vati on, foll owed by transacti onal leadershi p. On t he cont rary Laissez-f aire
leadershi p exhi bited a negati ve rel ati onshi p wit h moti vati on. Multi pl e regressi on anal ysis
confir med t hat leadership st yl es account f or 74. 3% of t he vari ance i n e mpl oyee moti vati on, wit h
transf or mati onal leadershi p e mergi ng as t he domi nant styl e. The st udy hi ghli ghts t hat
organi zati onal politics and bi as associ at ed wit h leadershi p di mensi ons, particul arl y i dealized
i nfl uence and i nspirational moti vati on, may hi nder f air promoti ons. Empl oyees report ed
satisf acti on wit h benefits and promoti on opport unities but i ndi cat ed areas f or i mprove ment i n
skills devel opment and work activities. Recommendati ons i ncl ude impl e menti ng unbi ased
perf or mance eval uati ons, enhanci ng i nt er-department al communi cati on, and i nvesti ng i n st aff
trai ni ng. Fut ure research coul d expl ore leadershi p st yl es' effects on other sect ors, such as
healt hcare or banki ng, and exami ne cult ural infl uences on moti vation wit hi n MNCs wit h
organi zati onal politics as a medi at or.
Key words: Multi-nati onal Corporati ons (MNCs), Leadershi p styles, Transacti onal,
Transf or mati onal and Laissez f air, Empl oyees` Moti vati on.