The Effect of Leadership Style on Organizational Performance: The Case of National Oil Ethiopia PLC. NOC

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Addis Ababa University


The main objective of the study is to investigate the effect of leadership style on organizational performance in the case of NOC. The study applied descriptive research design to identify and evaluate the relationship between leadership style and organizational performance. Both quantitative and qualitative research approaches were used to collect data through the utilization of a questionnaire in the form of Likert scale and open ended questions for an interview. A total of 165 questionnaires were distributed at head office NOC to respondents and 160 of them were collected back. The finding of the study revealed that participative, transformational and transactional leadership styles had strong influence on organizational performance while laissez-faire leadership style and autocratic leadership style had low role in influencing organizational performance. With Results from Pearson’s Product Moment Correlation Coefficient, there existed positive significant correlation between organizational performance and transformative leadership, with the level of correlation (R=.737**), Autocratic leadership (R=.492**), transactional leadership (R=.667**), laissez-faire leadership (R=.369**), and participative leadership (R=.392**) are all rising in popularity. Therefore based on the finding, the researcher recommends, the management of NOC to focus on encouraging self-management, initiate the ability to take the right risks, motivate employee to make difficult decisions by their own, share collective organizational consciousness. Furthermore the management of NOC should develop the qualities that elicit the desired performance from the team by motivating them externally, being practical, soften resistant to change by fair and reasonable reward, by also discouraging independent thinking, rewarding performers that are performance oriented



Participative leadership style, autocratic leadership style, transformational leadership style