Effect of Leadership Style on Organizational Performance in Addis Ababa No.2 Medium Tax Payer’s Branch Office

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Addis Ababa University


Organizational performance can be affected by a number of aspects which results externally from the macro economy environment or internally from its own factors. The one internal factor which is addressed in this study is leadership style in which the leaders display and demonstrate while managing their organization. Three dimensions of leadership styles Autocratic, Democratic and Laissez-fair, were under study with the case institution, Addis Ababa No.2 medium Tax payers branch office in order to investigate their effects of on organizational performance. Descriptive explanatory research design was applied with qualitative and quantitative approach. A total of 198 respondents were selected randomly from the total employee population to acquire their response to the questionnaire which is derived and adopted from previous studies on the same subject matter. After the responses collected a descriptive statistic was performed by using SPSS 25 to find out, the mean, standard deviation and regression analysis of it. The results of the SPSS reveal the perception of the three dimensions of leadership which are the independent variables and the perception of organizational performance, the dependent variable of this study. Democratic leadership style has the highest mean other than the two leadership styles, and organizational performance is affected 10.1% by the combinations of the three leadership styles. Based on the analysis, in this study, Democratic and Laissez-Fair leadership styles have a significant effect on organizational performance, whereas, Autocratic leadership style which have a p-value> 0.005 have no an effect on organizational performance. Finally based on the finding and the summary of the study a recommendation is suggested in addition suggestion for future research has forwarded



Autocratic Leadership style, Democratic Leadership style, Laissez-faire leadership style