The Effect of Leadership Styles on Organizational Performance: A Case Study on Tracon Trading PLC

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Addis Ababa University


The purpose of this study was to examine the relationship between leadership styles, limited to autocratic, democratic, and laissez-faire; and organizational performance in the case of Tracon Trading PLC, Head Office in Addis Ababa, Ethiopia. This research was conducted using the quantitative approach with data collected using a questionnaire; specifically, with the collection of 148 questionnaires. The data analysis was performed using descriptive statistics and regression analysis using SPSS V20. The results showed that the relationship between democratic leadership style and organizational performance was statistically significant and positive. On the other hand, autocratic and laissez-faire leadership styles were found to be both statistically significant with a negative relationship on organizational performance. Inferring from findings, it is recommended for the organization to use the autocratic leadership styles in clerical departments, the democratic leadership for brainstorming idea sessions, and the laissez-faire leadership for the Real Estate sector in the organization



Autocratic leadership style, democratic leadership style, laissez-faire leadership style