THE EFFECT OF TRANSFORMATIONAL LEADERSHIP STYLE ON

EMPLOYEE ORGANIZATIONAL COMMITMENT: THE CASE OF THE

CASE OF TIRET AND ITS COMPANIES

A Proposal submitted to Department of MBA, Yom Postgraduate

College in partial fulfillment of the requirements for the Degree of
Masters in Business Administration

By
Abay Demelash

Advisor: -Melaku Debas(Assi Prof)

Mar, 2023 G.C

Bahir Dar

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 Table of Contents

Chapter One.............................................................................................................................................1
1.1. Background of the study.................................................................................................................1

1.2. Statement of the problem...............................................................................................................4

1.3. Objective the study.........................................................................................................................5

1.3.1. General Objective........................................................................................................................5

1.3.2. Specific objective.........................................................................................................................5

1.4. Hypotheses of the study.................................................................................................................6

1.5. Significance of the Study.................................................................................................................6

1.6. Scope of the Study..........................................................................................................................7

1.7. Organization of the study................................................................................................................7

Chapter Two............................................................................................................................................8
2. Related Review Literature..................................................................................................................8

2.1 Introduction.....................................................................................................................................8

2.1.1 The concept of leadership.............................................................................................................8

2.2. The Emergence of Leadership Theories..........................................................................................9

2.3. Full Range Leadership Model (FRLM)............................................................................................11

2.4. Transformational Leadership........................................................................................................13

2.5 Transactional Leadership...............................................................................................................14

2.6 Laissez-Faire leadership.................................................................................................................15

2.7 Theoretical Perspective..................................................................................................................16

2.8 Empirical Evidences........................................................................................................................17

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 2.9 Organizational commitment..........................................................................................................17

2.10 Transformational leadership style and Organizational commitment relationships.....................19

2.11 Conceptual framework................................................................................................................20

2.1.12 Summary...................................................................................................................................21

Chapter Three........................................................................................................................................22
3. RESEARCH METHODOLOGY..............................................................................................................22

3.1 Introduction...................................................................................................................................22

3.2. Research Design...........................................................................................................................22

3.3 Data Type and Sources...................................................................................................................22

3.4. Sampling technique and sample size determination.....................................................................23

3.5 Variables of the study....................................................................................................................24

3.6. Data Gathering Instruments..........................................................................................................25

3.6.1 Multifactor Leadership Questionnaire (MLQ Form 5X)...............................................................25

3.6.2 Organizational Commitment Questionnaire (OCQ).....................................................................25

3.7. Reliability and validity of the Research instrument......................................................................26

3.8 Data analysis method plan.............................................................................................................27

3.9 Model specification........................................................................................................................28

3.10 Research Ethics............................................................................................................................29

Chapter One

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1.1. Background of the study
The success of an organization depends on the hard working, loyal and involved managers and
employees. In this modern era, where world has become a global village, organizations are considered
to be competitive on the basis of competence of their human capital, which gives competitive edge
due to its uniqueness, is one of the resources that work as a pillar for an organization (Holland P. C.,
2007)
Organizational commitment is the loyalty of employee to their organization and is a continuous
process, in which the employees are also participating in declaring their attention on the existence and
the success of the organization (Luthans, Organizational Behavior, New York: McGraw Hill., 2005).
Organizational commitment consists of three components which are: (1) affective commitment: the
unity and objective of company’s values; (2) continuance commitment: the willingness to stay together
in the organization; and (3) normative commitment: the readiness to work hard in the name of
organization.

Due to their impact on performance and the success of an organization, organizational commitment and
leadership have received a lot of attention in workplace studies. Different studies showed leadership to
have a significant influence on organizational commitment (Lork&Crawford, 1999,2001)If a leader and
his style are seen as trustworthy, employees are willing to follow that leader in accomplishing the
organization’s goals. This leads to positive results for the organization which in time affect the
organizational commitment.
Among different kind of leadership styles transformational leadership is a modern approach towards
leadership. Transformational leadership has been (Hall, 2008) defined as a system of changing and
transforming people. Burns (1978) will be the first person who gave the concept of transformational
leadership. He claimed that transformational leadership is observed when leaders encouraged followers
to boost up the level of their morals, motivation, beliefs, perceptions, and coalition with the objectives
of the organization. Some of the basic characteristics of transformational leadership are inspirational,
in that the leader can inspire workers to find better ways of achieving a goal; mobilization, because
leadership can mobilize people into groups that can get work done, and morale, in that
transformational leaders raise the well-being and motivation level of a group through excellent rapport.
They are also good at conflict resolution. The advantage of transformational leadership style is
excellent in communicating new ideas, good at balancing short-term vision and long-term goals and,
experience in building strong coalitions and establishing mutual trust, and they have integrity and high

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emotional intelligence (empathy with others)” (Shamir, 1993)

Transformational leadership focuses on a different way of leading, which is needed in a changing

organization. Individual attention and individual talents of employees is crucial so that organizations
can benefit from it. Every person is eager to learn, but employees also need the space and chance to
start with. The use of transformational leadership creates that space. At its core, transformational
leadership involves motivating followers to transcend their immediate self-interest “for the sake of the
team, the organization or the larger polity” (Shamir, House, and Arthur, 1993). As noted by (Pandey,
2010) this emphasis on the mission may make transformational leadership naturally suited to Tiret and
its company, whose employees are inherently required to see beyond self-interest to the well-being of
the larger community. (Wright and Pandey, 2010) noted that the mainstream leadership literature is
pessimistic regarding the potential for transformational leadership behavior in public organizations
compared to private ones. These negative predictions are based on the fact that public organizations
rely heavily on bureaucratic control systems (Riggo, Transformational Leadership , 2006)

Ethiopia’s economy is among the developing economies of the world. With increasing level of
development and the working environment has becoming more competitive, (World Development
Indicators database, World Bank 2015. For this country social and business enterprise have a great
contribution for its developmental progress which is different from public organizations business
enterprises in respect of their organizational objective and mission. Among this Tiret and its company
is one of the social and business enterprise in Amhara Region established on by the Laws of Ethiopia.
It can engage in sustainable income generating activities that are incidental to alleviate poverty and to
intend to the achievement of its socio-economic development of the country. Creating job
opportunities, transferring technology and taking a share in any investment to escalate the business of
the company are considered as its objectives. Besides it has a social responsibility for the community,
that is why; the company gives a prior attention for job opportunity to youths. The company also
supports the region socio economic development through industrialization in the Region. This is, of
course, done not only in the Amhara Region but also included other part of the country. TIRET will be
established in 1988. It will be recognized as ceaseless charity organization declared in civil code
number 483 up to 506 registered in Amhara National Regional State charity founding proclamation
number 194/2004 E.C( (Office, 2016)Tiret Established book publisher 2016 . The mission of this
organization is to strive to be an investment institution with a considerable contribution to the growth

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and prosperity to industrial transform of their region as well as the country by creating profitable and
competitive enterprises/company and using part of their profits for engendering social development
and reinvestment. Then, to achieve the above objective and mission, leadership have lion share rather
than other component, such finance, technology, strategy and structure.

The resource and property of TIRET is not for Administrators, not for rivals. No one who wrestle to
get from this resource. This property is, therefore, for Amhara National Regional State People. Never
this resource emceed to the hand of individuals. It directly enters in to TIRET stock for re-investment,
(Tiret Established book publisher 2016).

Any income and profit or property generated using these resources do not go into the hands of
individuals; it shall irrevocably be used for Investment to bring about sustainable socio-economic
development to the people of the Amhara National Regional State and servicing of debts for same
purpose, (Tiret Established book publisher 2016).
TIRET is engaged in investment in all sectors of the economy, establishing different services and
manufacturing enterprises and being a major shareholder in each or in joint venture in some. Currently
TIRET has 21 operational enterprises, major shares in some publicly traded companies and 11 projects
at different stages. Similarly, the company will increasingly establish different companies and projects.
Tiret Corporate have 12,296 employees from those 6,861 permanents and 5435 temporary employees.
So Tiret corporate is very huge endowment in the region (Tiret, 9 month report, 2018)That is why I
have preferred transformational leadership style rather than other leadership style.
Transformational leadership naturally suited to the business enterprise like Tiret corporate, whose
employees are inherently required to see beyond self-interest to the well-being of the larger community.
So this study helps the management to understand employees’ commitment level and leadership
impacts on their commitment. Because the main interest of this study is to investigate the influence of
transformational leadership style on the organizational commitments of Tiret and its companies.

1.2. Statement of the problem

In any given discipline, the success of a venture can nearly always be traced directly back to the vision
and would have been the leadership. Therefore, having effective leadership styles for the organization
to retain competent employees is crucial to its survival. (Brockner, 1992)) recommended that the

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ability of an organization, to successfully implement business strategies, to gain a competitive
advantage and optimize human capital, largely depends, among other factors, on the leadership styles
that encourage employee commitment. Among those styles transformational leadership, is a best
approach that enhanced interpersonal relationship between supervisor and subordinate. This leadership
style is a way to create higher level of organizational commitment of employees.
(Collins, 2008) suggested that employees develop global beliefs of perceived organizational and
perceived supervisor support. Due to the norm of mutual relationship, this support makes the
employee feel obligated to exhibit beneficial organizational attitudes (commitment). Also (Mohamed,
2009) depicted that employee commitment reflects the quality of the leadership in the organization.
Therefore, it is logical to assume that transformational leadership behavior would have a significant
relationship with the development of employee commitment.
Many of the previous researches have suggested a positive direct relationship between
transformational leadership styles and employee commitment. To mention some of these,
transformational leadership style leads to boost up organizational strengths and increasing level of
organizational commitment in workforce. There is a connection between transformational leadership
with behavior and job, such as job satisfaction and organizational commitment (B. J. Zhu, W. Koh, and
(B, 2004). (Tennakoon, 2009)also indicated that ethical leadership behavior has a positive association
with employees’ organizational commitment. (Nyengane, transformatioanl leaders are able to influnce
employees organizational commitment, 2007)also indicated that transformational leaders are able to
influence employees’ organizational commitment by promoting higher levels of intrinsic value
associated with creating a higher level of personal commitment on the part of the leader and followers
to a common vision, mission, and organizational goals. Also (Avolio, 2004)discovered that
transformational leadership is generally associated with employee commitment though it is limited to
only one variable of leadership styles excluding others (transactional & laissez-faire leadership).

Even though different studies showed that there is a positive influence of transformational leadership on
organizational commitment in certain organization leadership, has been a major concern in many
governmental and other business enterprises of our country. Rechard (2006) stated that Ethiopian
government failed to achieve the goal of growth and transformation plan in all aspects as lack of
effectiveness, in the areas of leadership is a common problem in most public service organizations and
business organizations’ of Ethiopia. As a result, this study would have been trying to assess the

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influence of transformational leader ship style on the organizational commitment of the employees of
Tiret and its company. Because of, in Tiret and its company transformational leadership style is not
effective on employee’s organizational commitment in different aspects such as Individual
consideration, intellectual stimulation, inspirational motivation and idealized influence leadership
approach. As it is stated in the assessment main problem of Tiret and it is companies, the leader
cannot give quick response as per request, they cannot communicate with their employee to solve the
problem at the right time, they cannot give awareness to employees about sense of ownership and the
employees are not satisfying about their leadership.by this result employee’s organizational
commitment are low in Tiret and it is companies ( (assessment, Tiret Employee satisfaction assessment
, 2017).

1.3. Objective the study

1.3.1. General Objective

The general objective of the study is to investigate the effect of transformational leadership styles on
employees’ organizational commitment.

1.3.2. Specific objective

The study has the following specific objectives;
1. To examining the combine effect of transformational leadership style and employees’
organizational commitment towards the Tiret and its company.
2. To investigate the effect of relationship individual consideration with transformational
leadership styles on organizational commitment of employees in Tiret and its company.
3. To examining the effect of intellectual stimulation with transformational leadership styles on
organizational commitment of employees in Tiret and its company.
4. To assess the effect of inspirational motivation with transformational leadership styles on
organizational commitment of employees in Tiret and its company.
5. To investigate the effect of relationship idealized influence with transformational leadership
styles on organizational commitment of employees in Tiret and its company.

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1.4. Hypotheses of the study
The proposed study tests the following hypotheses:

Hypothesis 1: The current state of transformational leadership style and employees’ organizational
commitment towards Tiret and its company can be considered as weak.

Hypothesis 2: There is a positive and significant relationship between individual consideration

leadership style and organizational commitment of employees in Tiret and its company

Hypothesis 3: There is a positive and significant relationship between intellectual stimulation

leadership style and organizational commitment of employees in Tiret and its company.

Hypothesis 4: There is a positive and significant relationship between inspirational motivation and
idealized influence leadership style and organizational commitment of employees Tiret and its
company.

Hypothesis 5: There is a positive and significant relationship between idealized influence leadership
style and organizational commitment of employees Tiret and its company.

1.5. Significance of the Study

The study will have many significances. Firstly, of this study will show the influence of
transformational leadership styles on employees’ organizational commitment of Tiret and its company.
As a result, it will be important for the leaders of Tiret and its company, it provides a lot to those
strategists (CEO and Managers) at the corporate as well as it is companies, and to reenact new
guidelines, rules, regulations, and laws to solve such problems that affect employee organizational
commitment in the Business organization. Secondly, the findings of this study would add to the
wealth of knowledge in other leadership and employee commitment studies. It would have been
helpful for individuals who want to conduct further studies in related topics and other organizations
those faces similar problems. Inevitably, this study would have been contributed to the growing body
of research on antecedents to leadership styles and organizational commitment by examining the
component of transformational leadership styles and its impact on organizational commitment.

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1.6. Scope of the Study
The main focus of this study would have be assessing the influence of transformational leadership
styles on organizational commitment in Tiret and its companies. Tiret has 20 companies and 11
projects. This study, however included Tiret head office and its three company around bahir dar (BDC
Construction, Tana communication and Tekrarwa Plastic Product Manufacturing). In the study the
employees and leaders of Tiret head office and the selected three companies participated. This,
therefore, any term found in the study interpreted as the influence of transformational leadership styles
on organizational commitment in Tiret and its companies. There are independent and dependent
variables such as inspirational motivation, idealized influence, individual consideration and intellectual
stimulation and organizational commitment.

1.7. Organization of the study

This research will be organized into five chapters. The first chapter is generally about introduction
which consists of the background of the study, statement of the problem, objectives of study,
hypotheses of the study, significance of the study, the scope of the study and organization of the
paper. Chapter two will deal with review literatures and conceptual frame work and empirical
evidences are provided about factors of leadership styles in detail. Chapter three will present research
methodology where data sources, data collecting procedures, sampling size and methods of data
analysis are presented. Chapter four will include the presentation, analysis and interpretation of data.
Chapter five offers conclusions and recommendations based on the preceding analysis of survey
findings. Finally, a reference and appendences of the study will be annexed.

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 Chapter Two
2. Related Review Literature

2.1 Introduction
This chapter presents review of literatures related to this study. Pertinent to this study. Specifically,
this chapter begins with a conceptualizing the transformational leadership. Then, organizational
commitment and its components have been discussed. Finally, discussions and findings of previous
research studies have been provided to illustrate the relationship between transformational leadership
style and employee’s organizational commitment.

2.1.1 The concept of leadership

Leaderships can be many facets and they differ in effectiveness in terms of consequences of their
actions towards internal and external stakeholders. Since organizations today are faced with many
challenges, especially with the constant changes in technology, economic, social, political and legal
conditions and internal and external processes, flexibility is required in resource utilization and in the
promotion of continuous learning (James & Collins, 2008; (Mckiernan, 2009)Therefore, there is a
need for leaders in organizations to contribute not only in terms of knowledge or ideas but also in
making right decisions and responding to the changes. Transformational leadership style has been
proven to be the most effective style of leadership (Hassan, 2014)Transformational leadership serves
to change the status quo by articulating to the followers the problems in the current system and a
compelling vision of what a new organization could be.
Leadership has existed for as long as people have interacted, and it is present in all cultures no matter
what their economic or social makeup. Although leadership is an age-old concept, it remains a
complex term that researchers and scholars argued with it continuously. One of the main reasons is the
extensive number of definitions for this term. It is commonly punned that there are nearly as many
definitions of leadership as there are researchers and commentators. As cited in (Trottier T., 2008).
some researchers and commentators rely on narrow definitions for ease of communication (e.g.,
leadership is the act of getting other people to do what they would not otherwise willingly do (Bennis,
1959)or for specific research interests (e.g., the investigation of power relationships) (Raven,

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1959)Leadership is a relationship between those who aspire to lead and those who choose to follow.
Leadership is not just the province of people at the top. Leadership can occur at all level and by any
individuals. Leadership is the art or process of influencing people so that they will strive willingly
and enthusiastically towards the achievement of the organizational goal. … (koontz, 1984)
Leadership is a process giving purpose (meaningful direction) to collective effort, and causing
willing effort to be expended to achieve purpose… (Jacques, 1990)

The earlier definitions identified leadership as a focus of group process and movement, personality in

action. The next type considered it as the art of inducing compliance. The more recent definitions

conceive leadership in terms of influence relationships, power differentials, persuasion, influence on

goal achievement, role differentiation, reinforcement, initiation of structure, and perceived attributions

of behavior that are consistent with what the perceivers believe leadership to be. Finally, Jacques

(1990) concluded that as leadership may involve all these things. Therefore, in this study, leadership

is conceptualized in the organizational context that is related to the person who is appointed by the

organization or owner to follow up the whole or sub activities of the organization as well as the

subordinate’s report to whom in the context of a work place relationship.

2.2. The Emergence of Leadership Theories

The earliest theories of leadership focused on the performance of great men. For instance, “without

Moses, the Jews would have remained in Egypt and without Winston Churchill the British would

have given up in 1940” ( (Burgoyne, 2001), Analysis of such heroic tributes gave rise to the Great

Man Theory of Leadership, which contends that leaders are born, not made. This theory posited that

certain individuals are endowed with leadership traits that cannot be learned (Perren & Burgoyne,

2001).

The are views of the leadership that reveals an evolving series of' schools of thought' from “Great
Man” and “Trait” theories to “Transformational” leadership (see table 2.1 below). Whilst early
theories tend to focus up on the characteristics and behaviors of successful leaders, later theories
begin to consider the role of followers and the contextual nature of leadership.

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 Table 2. 1 theories of leadership

Great Man Based on the belief that leaders are exceptional people, born with innate qualities,
Theories destined to lead. The use of the term ‘man’ will be intentional since until the latter
part of the twentieth century leadership will be thought of as a concept which is
primarily male, military and Western. This led to the next school of Trait Theories.

The lists of traits or qualities associated with leadership exist in abundance and
continue to be produced. They draw on virtually all the adjectives in the dictionary
which describe some positive or virtuous human attribute, from ambition to zest
Trait Theories for life.

These concentrate on what leaders actually do rather than on their qualities.

Behaviorist Different patterns of behavior are observed and categorized as
'Styles of leadership’. This area has probably attracted most attention from
Theories practicing managers.

Situational This approach sees leadership as specific to the situation in which it is being
Leadership exercised. For example, whilst some situations may require an autocratic style,
others may need a more participative approach. It also proposes that there may be
differences in required leadership styles at different levels in the same organization.

Contingency This is a refinement of the situational viewpoint and focuses on identifying the
situational variables which best predict the most appropriate or effective
Theory leadership style to fit the particular circumstances.

Transactional This approach emphasizes the importance of the relationship between leader and
followers, focusing on the mutual benefits derived from a form of 'contract' through
Theory which the leader delivers such things as rewards or recognition in return for the
commitment or loyalty of the followers.

The central concept here is change and the role of leadership in envisioning and
Transformational implementing the transformation of organizational performance.

Theory
Source: (Bolden, theory of leadership , 2003)

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Each of these theories takes a rather individualistic perspective of the leader, although a school of

thought gaining increasing recognition is that of “dispersed” leadership. This approach, with its

foundations in sociology, psychology and politics rather than management science, views leadership

as a process that is diffuse throughout an organization rather than lying solely with the formally

designated ‘leader’. The emphasis thus shifts from developing ‘leaders’ to developing ‘leader full

’organizations with a collective responsibility for leadership (Bolden, transformational Leadership,

2003)

2.3. Full Range Leadership Model (FRLM)

The FRLM describes a full range of influencing styles from ‘non- leadership ’to powerful

transformational leadership behaviors. The model captures different kinds of behaviors which make a

difference to outcomes for associates of the leader. In other words, the range of behaviors starts with

transformational leader behaviors to transactional leader behaviors reaching to the lowest leader

interaction of laissez-faire leader behaviors (MLQ, undated; (Bass, 2003).

A leader may employ both styles at different times or in differing amounts at the same time.

Considerable recent research provides evidence that shows transformational leadership as eliciting

extra effort and performance from followers, over and above that expected in an exchange

relationship with a purely transactional leader. The authors' argument is that organizations should

move in the direction of more transformational qualities in their cultures while also maintaining a

base of effective transactional qualities (Bass & Avolio, 1993).

(Trottie, 2008) suggest that Full Range Leadership theory of Bass is a strategic organization

development intervention, designed to enhance the impact of leadership on employee commitment.

Also the same authors emphasized that as Bass’s full range leadership model is an important part of

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 the leadership research as well as it presents researchers with a theory that can be empirically tested

and provides insight in to the duality that leaders face in current organizational settings.

Although multifactor theory is probably the most widely cited and comprehensive theory, leadership is

often conceptualized with in behavioral domains varying from non-leadership, or laissez-faire, to

transactional leadership, which hinges on rewards and punishments, to transformational leadership,

which is based up on attributed and behavioral charisma ( (Bass and Avolio, 1993)as cited in

(Bučiūnienė & Škudienė, , 2008).

FIgure2 1: Bernard Bass’s Revised Full Range Leadership Model

Laissez-Faire leadership (LF)

Acts non-involved, displays indifference, overlooks achievements, and ignores problems.

Transactional Leadership Elements

Management by exception, passive (MBE-P): Only intervenes when standards are not met. Management by
exception, active (MBE-A): Monitor follower performance and takes immediate action when deviations occur.

Contingent reward (CR): Clarifies what needs to be done and exchanges psychic and material rewards for
services rendered.

Transformational leadership Elements

Individualized consideration (IC): develops, coaches, and teaches each follower.
Idealized influence, attributed (II-A): instills pride and builds trust.
Idealized influence, behavior (II-B): emphasizes collective sense of mission, and talks about values
and beliefs.
Intellectual stimulation (IS): Stimulates followers to view the world from new perspectives;
Encourages problem solving, critical thinking, and creativity.
Inspirational motivation (IM): expresses enthusiasm, optimism, and confidence.

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2.4. Transformational Leadership
The transformational leadership paradigm has rapidly become the choice for current research and
application of leadership theory (&Riggo, 2006). Transformational leadership focuses more on change,
and inspires followers to “commit to a shared vision and goals for an organization or unit, challenging
them to be innovative problem solvers, and developing followers’ leadership capacity via coaching,
mentoring, and provision of both challenge and support” (Riggo, Transformationala leadership , 2006),
Historians have long recognized that the concept of leadership exceeds a mere social exchange
between leader and followers. Supporting this notion, Bass and Riggo (2006) state “leadership must
also address the follower’s sense of self-worth to engage the follower in true commitment and
involvement in the effort at hand” (p.4). Transformational leaders accomplish this by employing the
four behavioral components synonymous with transformational leadership practices. These
components, often referred to the Four I’s by (Leithwood, the compenents, often referred to the Four
Is, 1994)), are as follows: (a) individual consideration, (b) intellectual stimulation, (c) inspirational
motivation, and (d) idealized influence.
Individual consideration. By acting as a coach or mentor, transformational leaders pay special
attention to each follower’s needs for achievement and growth. Individualized consideration occurs
when new learning opportunities are created in conjunction with a supportive climate. In their
demonstration of individual consideration, the transformational leader is an effective listener, and
recognizes and is accepting of employee’s individual differences. Two-way communication is
encouraged, and interactions with followers are personalized. An individually considerate leader
will delegate tasks as a means of developing followers. Delegated tasks are monitored to determine
whether the followers need additional direction or support and to assess progress; however, the
followers do not feel they are being checked on or monitored (Bass &Riggo, 2006).
Intellectual stimulation. Transformational leaders encourage innovation and creativity by questioning
assumptions, reframing problems, and approaching old situations in new ways. In addition, leaders
who practice a transformational leadership style solicit new ideas and creative solutions to problems
from followers, who are included in the process of addressing problems and finding solutions. When
individual members make mistakes, the transformational leader does not publicly criticize them nor
are their ideas criticized because they differ from the leaders’ ideas (Bass &Riggo, 2006).
Inspirational motivation. Transformational leaders demonstrate behaviors that inspire those
around them by providing meaning and challenge to their followers’ work. They also arouse team

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spirit, enthusiasm and optimism. Transformational leaders involve their followers by clearly
communicating stated expectations they followers to meet and also demonstrate commitment to
goals and a shared vision. These leaders articulate a compelling vision of the future ((Bass
&Riggo, 2006)
Idealized influence. Transformational leaders demonstrate behaviors that allow them to serve as role
models for their followers. In addition to admiring, respecting, and trusting them, followers tend to
identify with the leaders and want to emulate them. Followers view their leaders as having
extraordinary capabilities, persistence, and determination. In addition, leaders who exhibit idealized
influence are willing to take risks and are consistent. They can be counted on to do the right thing as
they demonstrate high standards of ethical and moral conduct (Bass &Riggo, 2006).
As has been shown through the discussion of literature thus far, transformational leadership has been
recognized as a powerful model of leadership in the military, political, and industrial organizational
environments (Bass &Riggo, 2006). However, evidence from compelling research shows that
transformational leadership is important and is a powerful tool for fostering group goals and evoking
positive changes in the educational field.

2.5 Transactional Leadership

A "pure" transactional style focuses on everything in terms of explicit and implicit contractual

relationships. All job assignments are explicitly spelled out along with conditions of employment,

disciplinary codes, and benefit structures. Self-interests are stressed. Employees work as

independently as possible from their colleagues. Cooperation depends on negotiations not problem

solving or a common mission. There is little identification of the employees with the organization, its

mission or vision. Superiors primarily are negotiators and resource allocators (Bass and Avolio, 1993).

Transactional leadership is based more on "exchanges" between the leader and follower, in which

followers are rewarded for meeting specific goals or performance criteria (Trottier et al., 2008; Bass et

al., 2003). Rewards and positive reinforcement are provided or mediated by the leader. Thus

transactional leadership is more practical in nature because of its emphasis on meeting specific targets

or objectives (dinger, 2007)’An effective transactional leader is able to recognize and reward

16
followers' accomplishments in a timely way. However, subordinates of transactional leaders are not

necessarily expected to think innovatively and maybe monitored on the basis of predetermined criteria.

Poor transactional leaders may be less likely to anticipate problems and to intervene before problems

come to the fore, whereas more effective transactional leaders take appropriate action in a timely

manner (Bass et al., 2003).

2.6 Laissez-Faire leadership

Both the transformational and transactional leaders are described as leaders who actively intervene and

try to prevent problems, although they use different approaches. When researching these two active

forms of leadership, one finds that they are often contrasted with the third style of leadership, called

laissez-faire leadership as cited in (Škudienė, 2008)2008). James & Collins (2008) describe the laissez-

faire leader as an extreme passive leader who is reluctant to influence subordinates ’considerable

freedom, to the point of handing over his/her responsibilities. In a sense, this extremely passive type of

leadership indicates the absence of leadership.

Laissez-faire leadership style has a negative impact on followers and associates-opposite to what is

intended by the leader-manager. There are many behaviors that represent laissez- faire leadership as a

“do nothing” or “hands-off” approach. Such behaviors include tying away from employees, shirking

supervisory duties, and being “inactive, rather than reactive or proactive” (MLQ, undated).

Laissez-faire leadership should not be confused with democratic, relations participative or considerate
leadership behavior. Nor should it be confused with delegation or management by exception.
Delegation implies the leader’s active direction of a subordinate to take responsibility for some role
or task. The leader who practices management by exception allows the subordinate to continue on
paths that the subordinate and the leader agreed on until problems arise or standards are not met, at
which time the leader intervenes to make corrections.

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2.7 Theoretical Perspective
transformational leader is a person who stimulates and inspires (transform) followers to achieve
extraordinary outcomes (Coulter, 2007).he pays attention to the concern and developmental needs of
individual followers; they change followers’ awareness of issues by helping them to look at old
problems in a new way; and he is able to arouse, excite and inspire followers to put out extra effort to
achieve group goals. Transformational leadership theory is all about leadership that creates positive
change in the followers whereby they take care of each other's interests and act in the interests of the
group as a whole ((Warrilow, 2012)The concept of transformational leadership will be introduced by
(Burns, 1978)in his descriptive research on political leaders, but its usage has spread into
organizational psychology and management with further modifications by B.M Bass and J.B Avalio
( (Sosik, 2002),
Transformational leadership enhances the motivation, morale, and performance of followers through
a variety of mechanisms. These include connecting the follower's sense of identity and self to the
project and the collective identity of the organization; being a role model for followers that inspires
them and makes them interested; challenging followers to take greater ownership for their work, and
understanding the strengths and weaknesses of followers, so the leader can align followers with tasks
that enhance their performance.
(Warrilow, 2012)) identified four components of transformational leadership style:
1) Charisma or idealised influence: the degree to which the leader behaves in admirable ways and
displays convictions and takes stands that cause followers to identify with the leader who has a clear
set of values and acts as a role model for the followers.
(2) Inspirational motivation: the degree to which the leader articulates a vision that is appeals to and
inspires the followers with optimism about future goals, and offers meaning for the current tasks in
hand.
(3) Intellectual stimulation: the degree to which the leader challenges assumptions, stimulates and
encourages creativity in the followers - by providing a framework for followers to see how they
connect [to the leader, the organization, each other, and the goal] they can creatively overcome any
obstacles in the way of the mission.
(4) Personal and individual attention: the degree to which the leader attends to each individual
follower's needs and acts as a mentor or coach and gives respect to and appreciation of the
individual's contribution to the team. This fulfills and enhances each individual team members' need
for self-fulfillment, and self-worth - and in so doing inspires followers to further achievement and
growth.

18
2.8 Empirical Evidences
Empirical evidence also shows that transformational leadership is strongly correlated with employee
work outcomes such as: lower turnover rates, higher level of productivity, employee satisfaction,
creativity, goal attainment and follower well-being (Eisenbei and (Boerner, 2013); (Morales, 2008)
(Colquitt, 2006); Keller, 1992).
Many previous studies applying a direct effect approach to investigate the effect of transformational
leadership on empowerment used different samples, such as 152 employees from various industries
in Turkey (Qzaralli, 2002)), and 197 undergraduate university students in Canada (Kline,
2008)These studies reported that the ability of leaders to properly implement transformational style
(i.e., intellectual stimulation, individualized consideration, individualized influenced attributed, and
individualized influence behavior) had increased followers’ organizational commitment.
Several previous studies applying a direct effect approach to examine the effect of transformational
leadership on organizational commitment used different samples, such as 228 employees in three
different US organizations (simon, 1994) and 1,376 nurses in some US health organizations (Bycio
et al., 1995), sales people group in certain US organizations (Dubinsky et al., 1995). These studies
found that the ability of leaders to properly use transformational behaviors (i.e., intellectual
stimulation, individualized consideration, individualized influenced attributed, and individualized
influence behavior) had been a major determinant of organizational commitment.

2.9 Organizational commitment

Organizational commitment is defined in multiple ways. Organizational commitment refers to
the employee’s emotional attachment to, identification with, and involvement in the organization and
it is generally considered as a three dimensional construct comprising affective commitment,
continuance commitment and normative commitment Bohemian, (2006). (Muchinsky, 2003)) addeds
that the concept of organizational commitment refers to the extent to which an employee feels a sense
of allegiance to his or her employer organization. (Werner, 2007)indicates “an employee who is
engaged to the organization is emotionally, cognitively and personally committed to the organization
and its goals by exceeding the basic requirements and expectations of the job”.

19
 Affective Commitment
Affective commitment is the kind of commitment that cause workers to become closer to organization
emotionally and feel them happy because of being part of organization (Wiener, 1982). According to
Meyer & Allen affective commitment reflects the worker’s depictiabllity of himself inside
organization and participation to the organization. Affective commitment is workers’ identification
with organization’s interior activities and stick to these activities. In other words workers’ acceptance
of organization as a part of their family and loyalty to the organization (Bobbie, 2007). Affective
commitment is achieved when individual and organizational values and congruity resulting happiness
of workers. Workers emotional commitment establishes when they observe personal and
organizational values match. A worker having emotional commitment becomes very happy for being
inside the organization and do not think leave from organization as a result of feeling a part of
organization (Meyer & Herscowitch, 2001).
Continuance Commitment
Continuance Commitment is workers continue to organization membership and commitment because
of personal expectations and profits. As it is called rational continuance in literature, it is awareness of
worker for the cost of leaving from organization (Chen&Francesco, 2003). It is based on profit
between worker and organization. It is the need of staying in organization after assessing/measuring of
his/her investment to organization (Bergman, 2006). In other words, it is the possible loss of material
that force worker to stay in organization. In that sense worker thinks that leaving from organization
will pay much to himself/herself. Some of them prefer to stay in organization because of not to find
new work or lack of qualification. And some think there’s no alternative because of personal or family
problems Continuance commitment can be described as workers’ belief about cost of leave from
organization will be high for them. As for the other reasons, workers stay on the organization because
of some social, physiological and economic reasons such as; fear not to find a better job,
unwillingness to leave from friends, unwillingness to move in a new place, family issues, money loss
etc. (Allen & Grisafe, 2001).

Normative Commitment
Normative Commitment is to prefer to stay on the organizations because of past relations. This
commitment is consisting of on a compulsory basis. Worker’s feelings are because of the trainings or
good relations is the cause of this commitment. In other words, since worker beliefs that to stay in the

20
organization is some kind of responsibility, this commitment is different from other two. Normative
commitment is affected by organizational culture, age, education, serving period (Dordevic, 2004). As
a conclusion, affective commitment is come out because person want, continuance commitment come
out because profit requires it, and normative commitment come out because of ethical and moral
issues (Will beti, 2002).
Given this, one can argue that organizational commitment is an attitude about an employee's loyalty
to his organization and is an ongoing process through which organizational participants express their
concern for the organization as well as its continued success and wellbeing.

2.10 Transformational leadership style and Organizational commitment

relationships
According to (Nyengane, 2007)employee commitment reflects the quality of the leadership in
the organization. Therefore, it is logical to assume that leadership behavior would have a significant
relationship with the development of organizational commitment. Previous researches suggest a
positive direct relationship between leader ship behavior and organizational commitment.
Transformational leadership is generally associated with desired organizational out comes such
as the willingness of followers to expend extra effort (Bass, 1985). A willingness to expend extra
effort indicates some degree of commitment. Contingent reward behavior that represent transactional
leadership that has been found to be reasonably associated with performance and work attitudes of
followers although at a lower level than transformational leadership behaviors.
A relationship between commitment and leadership style has been reported in the organizational
and management literature. Nyengane (2007) reported a positive relationship between leader support
and commitment. In three separate studies, (Popper,, 2000) Popper, Mayseless and Castelnovo (2000)
in Nyengane (2007) found evidence to support the hypothesis that a positive correlation existed
between transformational leadership and attachment. Kentand Chelladurai (2001) found that
individualized consideration has positive correlation with both affective commitment and normative
commitment.

Moreover (Hayward, 2004)also found that transformational leadership has moderate positive
correlation with affective commitment.in this study, lower correlation coefficients between
transformational leadership and normative commitment will be found. No correlation will be
found between transactional leadership and affective, normative and continuance commitment.

21
According to Walumbwa and Lawler (2003), there is considerable research available suggesting that
the transformational leadership style is positively associated with organizational commitment in a
variety of organizational settings and cultures. Nyengane (2007) indicated that transformational
leaders are able to influence employees’ organizational commitment by promoting higher levels of
intrinsic value associated with creating a higher level of personal commitment on the part of the leader
and followers to a common vision, mission, and organizational goals.
Transformational leaders influence followers’ organizational commitment by encouraging them to
think critically by using novel approaches, involving followers indecision-making processes and
inspiring loyalty while recognizing and appreciating the different needs of each follower to develop his
or her personal potential (Nyengane, 2007). By encouraging followers to seek new ways to approach
problems and challenges and identifying with followers’ needs, transformational leaders are able to
motivate their followers to get more involved in their work, resulting in higher levels of organizational
commitment (Lawler, 2003) .This view will be supported by prior research that showed that
organizational commitment will be higher for employees whose leaders encouraged participation in
decision-making (Nyengane2007), emphasized consideration (Walumbwa&Lawler,2003) and will be
supportive and concerned for their followers’ development (Allen & Meyer, 1990).

2.11 Conceptual framework

The conceptual relationship between transformational leadership and employee’s organizational
commitment is directly related as the cause and effect relationship look in the diagram below, Here
transformational leadership and its four dimensions such as Individual consideration, intellectual
stimulation, inspirational motivation and idealized influence are working as independent variable while
organizational commitments are working as dependent variable. The model is showing that
transformational leadership is positively affecting employees’ organizational commitment, on the basis
of which hypothesis 2, hypothesis 3, hypothesis 4 and hypothesis 5 are derived.

22
Independent Variable dependent Variable
. Individual consideration

(develops, coaches, and teaches each

follower)
Intellectual stimulation (Encourages
problem solving, critical thinking, and
creativity)
Employees Organizational
commitment
Insparational motivation (expresses
enthusiasm, optimism, and confidence)

Idealized influnce (instills pride and

builds trust, sense of mission, and talks
about values and beliefs.)

Employee perspective
(eduction,age,marrial status and
Frang benefits(incentive))

FIgure2 2. Conceptual model of the relationship between transformational leadership and employee
organizational commitment (Riggo, 2006)

2.1.12 Summary
In this chapter, a review of literature pertinent to theories of transformational leadership and
organizational commitments are presented. Literature documenting the influences and relationship of
transformational leadership styles and organizational commitments are emphasized as this literature is
relevant to this study.

23
 Chapter Three
3. RESEARCH METHODOLOGY

3.1 Introduction
This part of the study deals with the research design and methodology of the study. It includes the
research design, target population, sample and sampling designs, data collection instruments, methods
of data analysis, and data quality assurance of the study.

3.2. Research Design

This study will be carried out at Tiret and its companies. Quantitative research methods will be used in
the study through close ended questionnaires. Based on the purpose, the study will be descriptive in
nature because, this type of study will be conduct to provide detailed description about the existing
phenomena and to justify current condition with the intent of employing data and whenever possible to
draw conclusion from the fact discovered (Kothari, 2004)). The company is selected on purposive basis
as location of the companies have found a place where the researcher has lived that is Bahir Dar.

3.3 Data Type and Sources

In order to generate relevant data for this study, both primary and secondary data sources will be
considered. According to (Biggam, Succeeding with your Master’s Dissertation: A step-by-step
handbook. London: McGraw Hill., 2008), primary data are the information that the researcher finds
out by him/herself regarding a specific topic. The main advantage with this type of data collection is
that it is collected with the research’s purpose. This means that the information resulting from it is
more consistent with the research questions and purpose. The data that will be collected by the
researcher will be directly linked with this study that provides the researcher with important
information.
As this study is basically empirical in nature, primary data will be gathered from employees (Biggam,
Succeeding with your Master’s Dissertation: A step-by-step handbook. London: McGraw Hill., 2008)
and their leaders/supervisors to answer the above questions. Hence, the more emphasize will be
inclined to the primary data source. The closed ended questionnaires which are designed on an ordinal
scale of measurement basis will be used to collect primary data, so that the variables could be ranked
to measure the degree of their strength or the agreement or the disagreement of the respondents with
the variables.

24
 Secondary data will serve researchers with the opportunity to better understand and explain the
research problem. Thus, it is very important to start a review of the existing data with a clear mindset
of what it is that one wants to accomplish with the study. This helps the researcher to save time and
effort because he/she can easily discard data that have no relevance for its own study. This can result in
information that can only be used partially for a specific study.
The secondary data is also will be used to get better insight on the research topic, to establish the
viable platform for the theoretical framework constituting the bases of this research, and to design the
sample frame and questionnaire for retrieving the primary data. Another advantage of using secondary
data is its comparability character. The researcher will use it to validate and compare the data get
through questionnaire to existing literature and articles.

3.4. Sampling technique and sample size determination

The total number of Tiret companies is twenty. Thus the researcher selected Tiret head office and its three
companies through lottery method. (BDC Construction plc, Tekrarwa Plastic Product Manufacturing plc
and Tana Communication plc) will be included. And the researcher will chose the respondents from the
selected companies through purposive sampling methods. Thus the professionals and leaders of each
companies and head office of Tiret will be included nonprofessional of the companies will be excluded.
Therefore, from total 379 population size, 176 professionals and 82 leaders will be selected as the sample of
the study, 258 professionals and leaders of companies and head office will be the total respondents of the
study. This sample subjects will be by using census method (Yates, 1949) common sampling methods for
censuses and surveys). Thus, censes technique generally will be applied in order to obtain full information.
Under this technique population of the study will be divided into two: professionals and leaders. In the
study professionals refer are employees hired by the companies and head office to serve in the front line and
directly communicate and observe the leader’s leadership style whereas leaders refer any person who is
hired in the companies and the head office in any position to control and supervise the overall operation of
the companies and head quarter. The selection of the sample would have been limited to professionals and
leaders. Because, the objective of the study will be only investigating the effect of transformational
leadership styles on employees’ organizational commitment from professionals and leader’s perspective
due to some difficulties in getting complete data base of all employees of the companies and head office.

25
 Sample that will be taken from Tiret main office and its three companies.

S.n Stratum Position No of Sample (s) No of Respondent’s Percentage

o

1 Tiret Main office Employees 87 78 89.65%

Leaders 41 39 95.12%

2 BDC Construction plc Employees 31 19 61.29%

Leaders 13 12 92.31%

3 Tekrarwa Plastic Product Employees 28 16 57.14%

Manufacturing plc
Leaders 13 12 61.29%

4 Tana Communication plc Employees 30 18 60%

Leaders 15 13 86.66%

SubTotal Employees 176 131 74.43%

Leaders 82 76 92.68%

Total 258 207 80.23

Source: Tiret Corporate Nine Month Report (2022)

Table3. 1Distribution of Samples

3.5 Variables of the study

Dependent variable; the dependent variable of the study is organizational commitment.

Independent variables; the independent variable of the study is transformational leadership style with

its components of individual consideration, idealized influence, inspirational motivation and

intellectual stimulation.

Demographic or control variables; The demographic variables of the study are age, gender, years of

service in the organization, educational status, positions, family size, fringe benefit and marital status

in the organization.

26
3.6. Data Gathering Instruments
For the purpose of this study a quantitative methodology involving a close-ended

questionnaire will be used as the measuring instrument. The close-ended questionnaires can be

administered to groups of people simultaneously, since they are less costly and less time-

consuming than other measuring instruments. Two separate instruments, namely multifactor

leadership questionnaire (MLQ) and organizational commitment questionnaire (OCQ), will be

used in this research to obtain quantitative information on transformational leadership style and

employees’ organizational commitment respectively.

3.6.1 Multifactor Leadership Questionnaire (MLQ Form 5X)

The Multifactor Leadership Questionnaire (MLQ) has been improved and tested since 1985 with the
result that many versions of the questionnaire have been developed. It is formulated from the Full
Range Leadership Model consisting of transformational, transactional, and laissez-faire leadership
behaviors with nine subscales. (&Avolio, 1995) [as cited in Bass et al., 2003], presented the MLQ
Form 5X with nine subscales of leadership styles.
Participants will be asked to judge the extent to which their leader engaged in specific behaviors
measured by the MLQ. The items of the questioner will be rated using a 5-point Likert scale labeled as
0 = strongly disagree, 1 = disagree, 2 = neither agree nor disagree, 3 = agree, 4 = strongly agree, High
score shows high effectiveness of leadership style perception while low score implies low
effectiveness perception in the scale.

3.6.2 Organizational Commitment Questionnaire (OCQ)

For this study the (Mayer's, 1990) OCQ is selected as the measure of employees’ organizational
commitment. This Organizational Commitment Questionnaire consists of three dimensions as
“Affective commitment”, “Continuance commitment” and “Normative commitment”. The selected
OCQ is a self-scoring questionnaire and the responses to each of items are rated using a 5-point Likert
scale labeled as 0 = strongly disagree, 1 = disagree, 2 = neither agree nor disagree, 3 = agree, 4 =
strongly agree. High score shows high employees’ organizational commitment perception while low
score implies low perception in the scale.

27
Examples of items from the OCQ questionnaire include:
(a) Affective commitment - I feel a strong sense of belonging to this organization;
(b) Continuance commitment - It would be very costly for me to leave this organization right now;
(c) Normative commitment - I would feel guilty if I left my organization now.

3.7. Reliability and validity of the Research instrument

Reliability refers to the extent to which a scale produces consistent results if repeated measurements
are made on the characteristics (&charles, Reliability and validity of the Research instrument ,
1995).As such, reliability has to do with the extent to which measures obtained by using a particular
instrument are free from error. This means that a highly reliable test or set of observations or
questionnaires conducted today will produce the same data tomorrow (assuming nothing has changed),
or two observes using the same observation schedule will report the same data. There are a number of
coefficients of reliability that can provide the researcher with a check on the quality of an instrument.
The consistency of the questionnaire [Test] items score remains same can be determined using
Cronbach’s alpha test-retest, this characteristic of the instrument is stability. Dealing stable measure
results in same answers over and over. The degree of stability is positively correlated with the degree
of reliability, higher degree of stability results in higher degree of reliability, means that the results are
repeatable Charles (1995).
In this study, in order to test the reliability of the research instruments, a pilot test will be carried out
before the final survey commenced. The testing of the research instruments will be an important step in
the study in order to establish the content validity of the questionnaires as well as the reliability of
instrument. The sample size for the pilot study will be used about 20 respondents from Tiret corporate
leaders and employees. The overall closed questionnaires will be tested by using Cronbach’s alpha.

3.8 Data analysis method plan

To determine the level of the organization transformational leader ship style and employee’s
commitment the studies will use descriptive statistic mean and standard deviations while for the
purposes of testing the research hypotheses, the research will use inferential statistical techniques.
According to (Sekaran, 2003) “inferential statistics allow researchers to infer from the data through
analysis the relationship between two variables; differences in a variable among different subgroups;
and how several independent variables might explain the variance in a dependent variable

28
For the purposes of determining whether a statistically significant relationship exists between
transformational leader ship style and employee’s organizational commitment, the study will use the
Pearson Correlation Coefficient and to determine the effects of organization transformational leader
ship style on employee’s organizational commitment the study will be used regression analysis. The
Pearson Correlation Coefficient will be used statistics for obtaining an index of the relationships
between two variables when the relationships between the variables are linear.
Multiple regressions are a multivariate statistical technique that is used for studying the relationship
between a single dependent variable and several independent variables. It provides a method to predict
the changes in the dependent variable in response to changes in more than one independent variable.
Hence, it allows the researcher to determine the relative importance of each predictor as well as to
ascertain the collective contribution of the independent variables (Sekaran, 2003).
The collected data will be processed with the help of SPSS Version 26.0 software package. This is due
to the fact that the software package would have been reduce time, cost and the researcher’s burden.
The necessary steps such as questionnaire checking, editing, coding, transcribing, and data cleaning
statistically adjustment of data are made before analyzing the data.

3.9 Model specification.

Based on the conceptual relationships described earlier, this paper models employee’s commitment as
functions that determined by transformational leadership style variables Given the nature of the data
which is ordinal and categorical, SPSS version 26 and regression techniques will be used to analyze
the data. Drawn from regression, an empirical model used to test the effect of transformational
leadership style on employee’s commitment.
The regression model, to associate and identify the causes and effect relation between transformational
leadership style and employee’s organizational commitment, the study will use linear regression model
as presented below
Y=c+cx1+cx2+cx3+cx4
Y= organizational commitment
C= constant coefficient,
X1= Idealized influence transformational leadership style
X2= Inspirational motivation transformational leadership style
X3= Individual consideration transformational leadership style
X4= Intellectual stimulation transformational leadership style

29
The collected data will be processed with the help of SPSS Version 20.0 software package. This is due
to the fact that the software package would have been reduce time, cost and the other researcher’s
burden.

3.10 Research Ethics

According to (Creswell, 2003) “as researchers anticipate data collection, they need to respect the
participants and sites for research.” Research code of ethics is a set of guideline that states the
standards and operating procedures for ethical practices by the researchers. Some of the ethical issues
that arise during the research stage should be considered.
They should obtain informed consent from participants, giving consideration to harmful information
being disclosed during data collection.
In the analysis and interpretation of quantitative data, issues of good ethics will be also considered and
researcher should follow Protecting the anonymity of individuals, roles and incidents in the study
project, discarding of data after a given period of time so that it does not fall into wrong hands,
providing an accurate account of the data analyzed, use unbiased language when describing
participants, do not suppress, invent, or falsify findings, report the details of the research fully and
honestly.

30
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Appendices
Appendix 1: Table for Study Variables

Instruments Variables Sub-Variables Indicators

Variables For Organizational Commitment

Organizational Commitment Organizational Affective Commitment Question 1,4,9,10

Questionnaire Commitment
Continuance Question 2,3,5,6
Commitment

Normative Commitment Question 7,8,11,12

Variables For transformational Leadership Style

Multifactor Leadership transformational Idealized Influence Question1,3,4,5,9,11,23,24,25,26,31

Questionnaire Leadership
Inspirational Motivation Question10,14,15,16,17,18,19,20,

21,27,30

Intellectual Stimulation Question 2,6,7,28,29,32

Individual Consideration Question 8,12,13,22

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Appendix 2: Operationalization of Transformational Leadership Styles and Employee Organizational

Commitment

Transformational Leadership Style Operationalization

 Idealized Influence: instills pride and builds trust, emphasizes collective sense of mission, and

talks about values and beliefs.

 Inspirational Motivation: expresses enthusiasm, optimism, and confidence.

 Intellectual Stimulation: encourage problem solving, critical thinking, and creativity.

 Individualized Consideration: develops, coaches, and teaches.

Employee Organizational Commitment Operationalization

 Affective Commitment: wants to stay with the organization and feels emotionally attached.

 Continuance Commitment: needs to stay with the organization because the cost of leaving is

too high.

 Normative Commitment: feels obligated to stay with the organization because it is the moral

and right thing to do.

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Appendix 3: Questioners

Questionnaires

Questionnaire 1-Demographic Questions (Leaders and Employees)

The following questions concern your position and other personal information. Completion of this information is

voluntary and its confidentiality is assured. No individual data will be reported.

THANKYOU!

1. What is your Sex?

Male

Female

2. How long have you worked for the current organization?

In Months In Years

3. What is your Age Group?

Under 26 46 to 55

26 to 35 56 to 65

36 to 45 66 and above

4. What is your highest level of Education?

College Diploma Master's degree

Bachelor's degree Doctorate degree or professional degree

Some master's credits, no degree

5. What is your marital status?

Married Unmarried
Other________________________

6. How many of your family Size?

A. One B. Two C. Three D. Four E. Five &Above

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7. How is your Fringe Benefit in the organization?
A. Satisfied B. unsatisfied

Questionnaire 2-Employee/leader Opinion Survey‐Multifactor Leadership Questionnaire (MLQ)

I am graduating class MBA student of 2023 at Yom Postgraduate College. Thus, you are being requested to

participate in a survey to provide your organization with leadership styles related information that will help

improve the working environment for employees. Participation in this survey is voluntary and no individual data

will be reported. If you are un sure or do not know the answer, leave the answer blank. Please indicate the extent

of your agreement or disagreement with each statement by circling a number from 0 to 4. Whatever information

you give me is strictly confidential and could be used for academic purpose only. I would like to thank you in

advance for your indispensable cooperation.

0 1 2 3 4
Strongly Strongly
Disagree Disagree Neutral Agree Agree

Weight
No. Leadership components 0 1 2 3 4
1 Empowers people to do what is right
2 Recognizes and supports new ideas
3 Gets people involved in decisions
4 Creates in others a sense of ownership
5 Uses the word "We" instead of "I"
Believes that real learning and growth take place
when people explore and in the process also make
6 mistakes
7 Is quite open and receptive to new ideas
Has care and concern for individuals' work as well
8 as his personal problems
9 Builds team spirit
10 Fosters collaboration on common goals
11 Strengthens people by giving power away
12 Genuinely cares about others

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 Encourages personal development of group
13 members
14 Is forward looking /sense of direction
15 Uses graphic concepts to describe
16 Has visions /dreams of what can be
17 Treats organizational members like his brothers
18 Has a clear image of the future
19 Expresses enthusiasm for his /her vision
20 Values and appreciates individual work
21 Doesn't lose balance in the face of calamities
22 Has sense of self - determination /self confidence
23 Keeps his /her level of energy up high
24 Model of persistence and perseverance
25 Maintains focus and constancy of purpose
26 Uses examples that others relate to
27 Explains why she /he is doing what she /he is doing
28 Knows his /her audience when speaking to
29 Talks about principles or values behind decisions
30 Sets example by behaving consistently with vision
31 Stands up for his /her beliefs taking risks
32 Publicizes people's successes

Questionnaire 3- Employee/leader Opinion Survey‐Organizational Commitment Questionnaire (OCQ)

Please indicate the extent of your agreement or disagreement with each statement as objectively as you can by

40
circling a number from 0 to 4. Whatever information you give me is strictly confidential and could be used for

academic purpose only, so please respond honestly. I would like to thank you in advance for your great

cooperation.

0 1 2 3 4
Strongly Strongly
Disagree Disagree Neutral Agree Agree

No. Organizational commitment components Weight

0 1 2 3 4
1 I feel like part of the family at this organization.
Too much of my life would be disrupted if I decided that I wanted to leave
2 this organization now.
I would not leave this organization right now because of what I would stand to
3 lose.
4 This organization has a great deal of personal meaning for me.
5 It would be very costly for me to leave this organization right now.
For me personally, the cost of leaving this organization would be Far greater
6 than the benefit.
Even if it will be to my advantage, I do not feel it would be right to leave my
7 Organization now.
8 I would violate a trust if I quit my job with this organization now.
9 I feel a strong sense of belonging to this organization.
10 I feel emotionally attached to this organization.
11 I would feel guilty if I left my organization now.
I would not leave this organization right now because I have a sense of
12 Obligation to the people in it.

Thank you again!

Appendix -4

Budget that the researcher used to undertake the study

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 Unit
No Item Quantity Unit cost Total Cost
Measurement

1 A4 Paper Desta 4 155 Birr 620.00

2 Pen Number 5 5 Birr 25.00

Printing and adjusting Service Number 200 1Birr 800.00

3 Internet Hrs 60 18 Birr 1080.00

4 Photocopy Number 1000 50 Cents 500.00

6 Binding and finalizing Number 4 300 1200.00

7 Other service Cost(Contingency - - - 3000.00

cost ,Coffee and tea data collectors)

Total Cost 7,225.00

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