The Effects of Ieadership StyIe on EmpIoyee Motivation in SeIected OiI SuppIier in Ethiopia
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Date
2026-06-02
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Addis Ababa University
Abstract
This study investigated the effects of leadership styles on employee motivation in a selected oil supplier in Ethiopia. The objective was to determine how transformational and transactional leadership behaviors relate to and predict employee motivation, and to provide evidence-based recommendations for leadership and human resource practice. A quantitative cross-sectional survey was administered to a sample of 239 employees; 230 valid questionnaires were returned (96% response rate). Respondents were profiled by gender, age, education, marital status and work experience. Leadership styles and employee motivation were measured with standard Likert-scale items. Descriptive statistics, Pearson correlation and multiple linear regression (enter method) were used to analyze relationships and predictive contributions. Assumptions for regression (linearity, multicollinearity, normality, homoscedasticity) were checked and met. Descriptive analyses showed generally high mean scores for transformational (aggregate mean = 3.705), transactional (aggregate mean = 3.883) leadership items, and for employee motivation (aggregate mean = 3.801). Correlation analysis revealed strong, positive and significant relationships between each leadership style and employee motivation (Transformational r = .781, Transactional r = .643; p < .01). Multiple regression indicated that the two leadership styles collectively explained 68.2% of variance in employee motivation (R = .826, R2 = .682, F(2,226)=161.48, p < .001). Transformational leadership was the strongest unique predictor (B = .428, Beta = .504, p < .001), followed by Transactional (B = .240, Beta = .212, p < .001) .The findings demonstrate that leadership style is a major determinant of employee motivation in the studied organization. Transformational leadership has the largest effect. Organizations should therefore prioritize transformational leadership development while retaining clear transactional systems. One key actionable recommendation: leadership development programs emphasizing transformational competencies should be implemented immediately
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Keywords
leadership styles, employee motivation, selected oil supplier in Ethiopia, Transformational leadership, Transactional leadership, Laissez-faire leadership