Anuar Negussie Asfaw
Anuar Negussie Asfaw
September, 2019
Jimma, Ethiopia
Jimma University
Collage of Business and Economics
Masters of Business Administration
This Research is my original work and has not been presented for a degree in any other
university.
This Research has been submitted for examination with my approval as university supervisor.
First and for most I would like to Glorify Almighty God for helping me through the entire
situation I passed in doing this research.
First is Dr. Chalchissa A.(PhD), Associate Professor, My advisor.it is through his invaluable
insights, guidance and critique that this research work is complete and co advisor Ms.
Lelissa K. (MA) for all limitless efforts in guiding me during the research study. I would
also like to appreciate my beloved wife at work for her encouragement, support and invaluable
advice.
Likewise, I would like to extend my gratitude to the School of Graduate Studies of Jimma
University College of business and economics for allowing me the opportunity to advance my
studies. In addition; I would like to express my sincere gratitude to all who have given me
assistance in obtaining the information and data related to this research study work.
ABSTRACT
The purpose of the study was to assess the effect of leadership style on project performance of
construction project manager in kaffa zone, to achieve this objective, relationship between
components of leadership style, Leadership Experience to construction project performance
were analyzed. This study focused on ongoing public construction projects in kaffa zone,
SNNP/Ethiopia. The study respondents comprised construction project managers, project team
members and community leaders in ongoing construction projects of kaffa zone. The study used
a descriptive survey design targeting a population 65 ongoing projects within the study area.
Questionnaire were administered to at least for one project manager, one project team member,
one community leader from each project selected from the sampled 56 projects identified using
stratified random sampling technique. Questionnaires had both open and closed ended
questions. A pilot test was done and a reliability test score was 0.805. Data analysis was
performed using SPSS version 20.the study used simple descriptive statistics. The results were
presented in frequencies distribution tables, percentages and charts. The finding of the study
conclude transformational leadership style had the most influence on performance of
construction projects on kaffa zone with aggregate mean of 3.62.Leadership experience was the
second with aggregate mean of 3.55. Transactional leadership style had the least influence on
performance of construction projects on kaffa zone with aggregate mean of 3.01. In conclusion
the study found that majority of a project experience significant budget and time over run and it
can be conclude that project objective achievement and beneficiary satisfaction was the most
important parameter of project performance on kaffa zone. The study also found that although
transformational leadership style to be the best it is imperative for project managers to adopt
individual aspects of transactional leadership styles with significant influence to project
performances in order to improve performance of construction projects. The study recommended
that managers adopt transformational leadership style and project managers experience that
support by leadership skill have a great impact to ensure effective performance of projects. The
study also recommend transactional leadership styles compromising using motivations like
reward and recognition schemes for their workers to have some level of job satisfaction. The
study suggested further studies to be done on number of organization and can enlarge a bigger
sample data size in different industries such as travel, banking and hospitality on aspects of
projects performance and leadership styles.
1. Introduction
1.1 Background
Construction companies must utilize planning, organizing, leading and controlling, known as the
four basic management functions. Project managers should possess these functions in order to
successfully manage projects. Researchers in construction management unequivocally reiterated
the fact that project managers is one of the most important success factors of projects. Little
attention has been given in the leadership issues in construction despite the fact that there is so
much literature and research in other industries.
“Leadership is a key factor for success in any activity that involves collaboration among a group
(or groups) of people. The construction industry has a greater need for leadership than any other
field of endeavor. Public procurement in Nigeria, in the recent past, lacked transparency, with
inflated contract cost, use of processes that were discretionary and abuse of public power”
(Ameh, 2014).Skipper and Bell (2006a) in studying leadership in the construction noted that
there is recognition in the construction industry for the need to improve leadership skills in the
construction industry.
Study of leadership style and their effectiveness in managing projects is quite relevant to
construction industry because construction managers have to wear different hats at different
circumstances. Project managers to face many challenges and problems concerning leadership
skills, the type of leadership style to use, and how to control the various aspects of project
management (Berg & Karlesen, 2007)
The project manager is one of the main parties in the role of the construction industry. Based on
the studies that have been made between the success and failure of the company, the success of a
project is dependent on the performance of a construction project manager (Intan Bayani
etal.,2015).
According to Mazlan Ismail and Mohammed Syazli Fathi (2014) ,with the increasing importance
of leadership in project-based organizations, innovative leader is essential for the sustainable
development of construction projects. Leadership has been identified as one of the factors that
contribute to construction organization success. Effective leadership is essential in any company
to achieve organizational goals and promote individual professional achievement. Leadership is
important in all fields of human endeavor. The leadership role is critical for the smooth running
of an organization and without strong leadership the organization may lose its direction, in
particular when trying to achieve its target. Leadership has a direct impact on effective employee
engagement.
The project manager is one of the main parties in the role of the construction industry. Based on
the studies that have been made between the success and failure of a company, the success of a
project is dependent on the performance of a construction project manager (Intan Bayani et
al., 2015). The effectiveness of project managers in managing finances, schedule, quality, and act
as the main liaison with the success of project.
(Hillebrandt, 2000) noted that the construction industry has a greater need for leadership than
arguably any other industry. Many reasons support this concept and it is manifest in the nature of
the construction projects, and constructed products. If one word could describe the essence of
construction management it is responsibility since project leaders are responsible for all that
happens in a construction project. This does not mean that the project leader should or could do
everything associated with the project; but it does mean that they have ultimate responsibility for
the project. In other words, the buck stops with the project leader. Since construction projects are
large and technically complex and they involve a combination of specialized skills. Likewise,
construction teams are not only large but are also multidisciplinary and the members are from
several different construction disciplines and this makes good leadership style vital in this
industry.
There are various ways in which the effectiveness and performance of leadership can be
measured. However the most used measures of effectiveness is the extent to which the leader
attains the set goals (Hyvari 2006 & Andersen 2006). Project leaders mostly take someone else’s
vision and carry it out, it is imperative that they are able to comprehend the basic concept that is
being developed. In other cases, project leaders develop the vision and sell their idea to the
funding sources. The ‘how’ aspect of project leadership has to do with the leader’s technical
expertise that is being brought into the project through personal knowledge and experience or by
recruiting competent team members who have the expertise. For example, “a number of
subcontractors work on large projects, which makes it necessary for the leader to organize and
schedule the work of various team members while providing a motivating work environment.
The leader must be constantly aware of criteria that should and will be used to measure project
success. Continuous assessment and monitoring of performance are a critical component of the
delivery of the finished product” (Morris and Pinto, 2004).
In a similar study by Fraser (2000) project managers who scored high on the effectiveness scale
favored team -style leadership where as those who followed a production style leadership scored
the lowest of all.
Lapp, 2009 defined leadership as a combination of skills and experience while employing the
necessary control measures in the most appropriate style to oversee successful project
performance. An organizational setting requires the leader to use his experience and skills in
directing his team towards success
The aim of the study was to investigate the manager‟s approach to leadership in construction
industry. This was done by focusing on the actual leadership styles of Project managers in the
construction industry. Differences on the leadership behavior that may come with experience in
the industry and length of service in the company they are working with was also investigated
separately.
(Piyush, Dangayach and Mittal, 2011), while discussing various leadership factors in context of
organizational variables, suggested the need to explore the aspects of leadership with emphasis
on skills, experience and leadership styles in order to achieve success in project based
organizations. Walker and Walker (2011) stressed the need of reexamination of the skills,
amount of experience and leadership styles required by project manager to deliver projects
successfully
Construction project is one the major sector in Ethiopia that contributes to the overall national
economy of the country. Therefore, efforts gear towards enhancing the efficiency of the
construction industry of Ethiopia in terms of improving on construction management techniques
and leadership style is worthwhile and will contribute to better performance of the industry.
As the parts of Ethiopia construction industry, Kaffa Zone has recently begun to develop and it
has limited or No academic research in the field of leadership styles in the industry and its
influence on project performance.
Given the types of problems facing project managers, the question involves how to solve these
problems, and how to obtain the knowledge and skills needed to solve them.
Therefore, With regard to this research, the prevailing leadership styles in the construction
industry in Kaffa Zone and their influences on project performance will be assessed.
2. LITERATURE REVIEW
2.1 Leadership
The literature riches with the definition of leadership indicated in study of Skipper, C., & Bell, L.
(2006) which reveals that a leader is not the person who leads people, but the person that people
will follow. Leaders are people who recognize what needs to be done and derive changes. They
find new directions, adjust, inspire and motivate individuals, share the vision of the organization
and where is it heading and build effective teams. They also share decisions with the team, act as
a mentor, train employees and delegate tasks appropriately to the right people.
The most effective definition of leadership is presented by Cole (1996) which states that
leadership as a dynamic process in which individuals influences others to contribute to the
achievement of the group tasks. Although there is no universal definition, one key aspect is that
leadership is a process hence time is needed for a leader to influence subordinates in the desired
way.
In contrast, leaders often put many of the same skills and interests to good use but often to better
effect because they focus on areas such as discovering solutions (not problems), managing
changing conditions; excelling in spite of organizational structure; and inspiring personnel
to achieve their goals. Leaders achieve objectives through energized and excited
subordinates who share their passion, vision, and direction. Good leaders feel comfortable
challenging the status quo and finding efficient - as well as long term - solutions to
challenges. (Mawson, 2001)
The literature is rich in determining the factors affecting the choice of leadership style and their
development. However, in the real world it has been noted that no particular leadership style is
exerted by a manager but is a combination of leadership styles. There are many factors which
determine/affect the application of a leadership, as described below.
According to (Kimberley Leonard, 2020), several factors influence leadership styles of managers
including the personality traits of the leader, how the leader was mentored, the employees'
personalities, and the type of task at hand.
Internal factors that influence management styles include all aspects of personality. A
competitive person is inclined to become a pacesetter, trying to show the team that high-levels of
output are possible. A leader who feels that he does his part by paying salaries and expects
employees to produce or get out tends to lean more toward a coercive leadership style.
Assessing dominant leadership styles is important to determine when to alter the style. To
describe the factors that will influence the choice of leadership styles of behaviors in workplace
situations, it is important to examine yourself in your interactions with your organization.
How the leader was mentored could affect his leadership style. A manager who comes up
through the ranks of the company in a coaching environment with a mentor who took him to
meetings or reviewed calls and appointments for ways to improve may approach his team in the
same manner. If that same manager was cultivated in a more democratic environment where
management sought the opinions of the team, the manager might see this as the key to success,
since it was a key to his rise to leadership.
Not everyone responds to leadership styles in the same way. Someone who is timid might be
overwhelmed by a coercive or even a pacesetting leader. This person might constantly wonder if
his job is in jeopardy or feel he will never be able to measure up to the greatness shown by the
pacesetter.
Business leaders have started employing personality tests for both managers and employees to
understand better how they mix. This way manager can understand things like how a competitive
employee should be pushed in peer comparisons to find his highest levels of success.
Some tasks require a certain type of leadership style. It doesn't behoove a manager to take on a
democratic leadership style if he is conducting a meeting for insubordination with an employee.
He may need to use a coercive style depending on the severity of the infraction.
While the democratic or affiliate approaches may work for brainstorming and creative tasks,
these could hinder the leader from establishing a clear vision and direction for the company. This
situation would benefit from an authoritative approach.
(Yukl, 1994) lists the following factors as determinants of leadership style: level in the authority
hierarchy, function of the organizational unit, size of the organizational unit, task characteristics
and technology, lateral interdependence, crisis situation, stages in the organization life cycle and,
finally, subordinates’ competence and performance.
Leadership skills are a major factor that differentiates between effective leader and manager.
Moreover, any deficiency in technical skill can be recovered by developing effective leadership
skill also, effective leadership is highly attached to peoples life and the quality of relations
developed by leader in summary there are different opinions about effective leadership and the
convergence point among these opinions is people oriented and accommodated with the
surroundings environment as a key factor for success Hassan and Abduselam (2016).
There are several styles of leadership such as: autocratic, bureaucratic, laissez-faire,
charismatic, democratic, participative, situational, transactional, and transformational
leadership (Mosadeghrad 2003b). Not everyone agrees that a particular style of leadership will
result in the most effective form of organizational behavior. Different styles are needed for
different situations and each leader needs to know when to exhibit a particular approach.
Democratic leadership styles confer final authority on the group. A leader adopting this
style function as collectors of group opinion and take a vote before making a
decision.
The participative style has also been referred to as trickle-up leadership because the leader
accepts suggestions for managing the operation from group members. Welcoming ideas
from below is considered crucial because as technology evolves and organizations
decentralize, front-line workers have more independence and responsibility. These workers
are closer to the market, closer to seeing how the product is used, and closer to many
human resource problems.
The following statements seem to encapsulate the essence of participative leadership. The
participative style is often conceived largely in terms of a „system of values‟ governing
behavior, with a commitment to full and free communication, a reliance on consensus rather than
on the more customary forms of coercion or compromise to tackle and manage conflict, and an
atmosphere that permits and encourages emotional expression as well as a healthy attitude
to work (Bennis, 1966).
It is argued that, as the individual moves from the infant end of a personality continuum
(basically dependent and submissive, with few and shallow abilities and a short time
perspective) to the adult end (endowed with relative independence, autonomy, self-control,
many abilities and a few in depth, and a long time perspective), then we have to create
conditions to permit self-regulation, self-evaluation, self-adjustment, and participation in the
setting of goals. By doing so, it is alleged; we bring about an improvement in productivity and
attitudes (Argyris, 1973). Dubrin (2004) further adds that the participative style encompasses the
teamwork approach. Predominant behaviors of participative leaders include coaching team
members, negotiating their demands and collaborating with others. This style is well
suited to managing competent people who are eager to assume responsibility.
Such people want to get decision making, participative leadership works well with the
new breed of managers and professionals.
Critics of the participative leadership school (Crozier, 1964; Struass, 1968; Stace and
Dunphy, 2001) present number of reservations:
There is a tendency to place overwhelming emphasis on personal coordination and
control to the detriment of bureaucratic or impersonal control techniques.
The important role played by bargaining and the use of power in interpersonal
relationships is overlooked.
The democratic or participative style is conceived largely in terms of group harmony and
compatibility between personal goals and organizational goals, but the importance of
organization structure is neglected.
Although generally people would like to exercise some degree of control over
their own environment, they may fear the participation process because it threatens
their integrity and independence, or they believe they will be controlled to some extent
by other participants.
It often results in extensive and time-consuming team meetings and committee work.
Sometimes participative leadership is carried to extremes. Team members are consulted
about trivial things that management could easily handle independently.
Transactional leadership style indicate that project leader allocate roles, provides clear
instructions, psychological rewards, active vigilance and prompt intervention to correct mistakes
so as to ensure that the projects team meet their desired goal in their specific construction phase
in project
Transactional leadership underlies most leadership models, which focus on exchanges between
leaders and followers (Price, J. J., 2009). It is an extrinsic-based motivation process by which
leaders achieve their goals, while followers receive external rewards for job performance. An
example of this type of leadership is the manager who offers rewards, such as promotions, extra
pay, or time off, for employees who surpass their goals.
Transactional leadership is about power to perform certain tasks and reward or punish according
to employees’ performance. If employees perform well, the leader will reward them, but if their
performance is not as expected, they will be punished. Transactional leadership behaviors
include interactive goal setting, contingent material reward, contingent personal reward and
personal recognition (Northouse, P. G., 2000).
2.1.3.3 Transformational Leadership
During the recent years, the transformational leadership theory has gained popularity.
Accumulating empirical evidence that transformational leadership substantially influences
employee’s performance and organizational level outcomes (Avolio et al., 1999, Lowe et
al., 1996) has stimulated engagement with the theoretical underpinnings of transformational
leadership.
Recent developments in leadership theory have shifted interest from earlier theories of
charismatic leadership, that viewed the leader as extraordinary and the followers as dependent on
the leader (Yukl, 1998), to neo-charismatic theories (Conger and Kanungo, 1998; Shamir et
al., 1993) and transformational leadership theory (Bass, 1985), which are concerned with the
development and empowerment of followers to function independently.
The focus on transformational leadership is on what the leader accomplishes, rather than on the
leader’s personal characteristics and his or her relationship with group members. The
transformational leader moves group members beyond their self-interests for the good of the
group, organization, or society. In contrast, the transactional leader focuses on more routine
transactions with an emphasis on rewarding group members for meeting standards (contingent
reinforcement). Extensive research has been carried by Bernard. M Bass (1985) as he
describes the transformational leader as one who empowers followers, and motivates them to
perform beyond their expectations and work on transcendental planes and collective goals
instead of focusing solely on immediate personal interests.
Shahin, Amany and Wright (2004), states that Transformational leadership occurs when one or
more persons engage with others in such a way that leaders and followers raise one another to
higher levels of motivation. The concepts of transformational and transactional leadership were
later applied to organizational leadership by Bass (1985).
However, Bass took a different view from Burns concerning the relationship between
transformational and transactional leadership. Whereas Burns saw transformational and
transactional leadership as two mutually exclusive forms of leadership, Bass argued that the
same leader could exhibit both patterns of leadership.
In the initial version of his theory, Bass (1985) identified two types of transactional leadership
(contingent reward and management-by-exception) and three forms of transformational
leadership (charisma, individualized consideration and intellectual stimulation). This theory
was later revised by Avolio et al. (1991) that identified four aspects of transformational
leadership, which they called the four I‟s. The concepts of individualized consideration and
inspirational motivation were retained, but the concept of charisma was replaced by the
concepts of idealized influence and inspirational motivation. The theory was further modified by
Bass and Avolio (1993), who identified seven leadership factors based on a higher order factor
analysis of the earlier version of their multifactor leadership questionnaire (MLQ). These
seven factors were categorized into active and passive categories. The active dimension included
the four I‟s of transformational leadership and contingent reward, whilst the passive dimension
consisted of management-by-exception and laissez-faire. However, Bass and Avolio (1994)
distinguished between active and passive forms of management-by-exception, making eight
factors in all. Definitions of these eight factors are given in Table 2.2.
Table 2.2 Factors of Transformational and Transactional Leader ship (Bass and Avolio 1994)
Mazlan Ismail & Mohamad Syazli Fathi(2018) found that Transformational Leadership,
Transactional Leadership, Full Range Leadership, Servant Leadership, Contextual Leadership,
Safety Specific Transformational Leadership and Charismatic Leadership are leadership styles
practiced in construction project. Different leadership styles generating different consequences
on construction project performance and achievement. Project manager needs to use different
leadership styles at different stages of project life cycle. Leadership is not “One size fits all”
concept. The success of any project-based organization relies on the leadership styles practiced
by the leaders. The project success partially depends on the manager’s leadership style.
Leadership style is view as the combination of trait, characteristics, skill and behaviors.
Leadership is key factor impacting construction safety. Safety leadership is key contributing
component to commonness of accident and injuries in construction project. There is only one
approach to reduce human errors and injuries in construction project are by adopting effective
safety leadership. Further study focus on the influence of Safety Specific Transformational
Leadership style’s trait, characteristics, skill and behaviors on reducing the accident and injuries
in construction project is recommended.
Different authors have proposed different ways to measure project performance (Wong &
Wong, 2007; Lin & Kuo, 2007). How well projects can achieve their objectives is an
indicator of organizational performance as suggested by Vankatraman and Ramajan (1986).
Further Vankatraman and Ramajan (1986) identified ten different types of performance
measurement and narrowed down to three main dimensions: financial performance, business
performance and organizational effectiveness. Lin and Kuo (2007) proposed project
performance based on humanistic performance factors which consist of employee retention and
motivation and market performance factors which consists of sales, profit margin and
customer satisfaction. Naumann and Gael (1995) stated than employee and customer
satisfaction are among a firms key performance measures that could lead to behaviors and
according to Spector (1997) could lead to better organizational functioning.
Kloppenborg and Opfer (2012), in a detailed review of project management research, found
that the focus of project management research in the 1960s to 2000s concentrated on the
elements of planning and scheduling. In the 2000s the emphasis was in the area of
scheduling, control, and automated tools, which led to research in the area of life cycle
costing and risk management planning. In the late 2000s research into team building and
leadership emerged (Shenhar & Dvir, 2007). The emphasis placed on leadership and human
relations contributed to increased efficiency in addressing the problems encountered in the
project process (Johnson, 2009). The development of better processes and the organizing of
teams more effectively resulted from an increased emphasis on leadership and human
resources (Kloppenborg & Opfer, 2012).
Achieving successful project outcomes require the combination of technical and leadership
competencies (Zimmerer & Yasin, 2008). Many project management processes and
techniques (planning, scheduling, control, and automated tools) exist for tracking and
measuring the technical elements of projects. The processes and methods do not generally
track or measure leadership skills of managing people such as communication, building
relationships, resolving conflict, and team engagement or motivation (Kloppenborg & Opfer,
2012). It is believed that leadership competencies are required to enable project management
to effectively use human resource skills to improve project outcomes (Schmid & Adams,
2008).
Transactional leader emphasizes on achieving project goals at all cost. Bass (1990)
identified the transactional leadership style that focuses on the achievement of project
team’s tasks. The members of the project team are motivated through contingent rewards
for meeting targets, mistakes are also punished by withholding rewards. Transactional
leaders also apply the principals of management by exception by taking corrective actions
when tasks do not follow the planned critical path. Some forms of transactional leadership
can lead to mediocrity especially when the leader applies a lot of passive management by
exception and only intervenes when processes and standards for completing tasks are not
followed. Transactional leaders may resort to threats and disciplinary actions against team
members to bring team performance up to standard. Such drastic measures according to
(Bass, 1990; Bass et al, 2003; Deal and Kennedy, 2000) are ineffective and counterproductive in
the long term.
Bass, (1990) debates whether the drivers of motivation in transactional leadership are the
promise of reward or the avoidance of a penalty. He argues that the aforementioned element
depends on whether the leader has any influence to determine rewards and
penalties and whether an employee wants a reward or fears the penalties.
In project management, Keegan and Den Hartog (2004) model prefers transformational
leaders over transactional leaders, but were unable to find any significant link between
transformational leadership style and performance of projects. Aga (2016) in his study on
transactional leadership and performance of projects on 224 development projects in
Ethiopia found contingent reward aspect of transactional leadership to have a positive
influence on performance of projects with clear goals. The study based performance of
projects on supervisory ratings which is prone to biases. The study ignores other
components of transactional leadership style and only choses to focus on contingent
reward.
Tabassi and Babar (2010) study conducted among 220 respondents in contracting firms
to establish relationship between leadership style and project implementation in Iranian
construction industry found transformational leadership style as mostly preferred in
Iranian construction sector. The study was done in large construction companies and its
findings were not consistent with Becker and Huselid (1998) suggestion that project
managers tend to have high relationship behavioral characteristics when the task given is
less intricate. Furthermore, the study was conducted among project contractors leaving
out the project personnel perspective.
Kariuki (2015) assessed the influence of leadership style, team commitment, project
characteristics on the project implementation. The study was conducted among project
managers and project team members from 102 water and sanitation projects in Kenya.
The study findings show that transactional leadership style accounted for 12 percent
variance in project time performance and therefore the study encourages adoption of
transformational leadership style which has tendency to lead to higher level of project
performance. The results were consistent to findings of Kibuchi (2012) that found a
significant relationship between human psychological factors and performance of projects
in housing construction projects in Kenya. Kariuki (2015) study was based on construction
projects in the water sector hence need to undertake study in the housing construction
sector.
2.4 Relationship between leadership characteristics and project success
/failure
Substantial research indicates that a leader and his style being perceived as trustworthy lead to
positive outcomes for the organization, which eventually affects the project success and failure.
Turner & Pearce (2011) were of the view that the leadership style and competencies’ of leaders
are key to successful performance in business; which have been confirmed by other scholars to
have a correlation between these and the performance of organizations and companies.
According to Jarad G. H (2012), the team is equally important for project success. The
collaboration within the team and the performance of each individual team member as well as the
performance of the team as one unit are critical factors for project success. Without a performing
team it is difficult to secure project success, and for a leader to have a performing team, the
leaders have to ignite the fire of performance and set boundaries within the team for it to
function. In addition, leading a project towards success requires the manager to get the work
done by the team members efficiently and effectively. The entire process requires the leader to
have a clear vision, clarity in reasoning, practical in scheduling and the ability to attract a
talented and efficient team. This, together with the application of a leadership styles brings about
project success.
Rewards Achievements
Prevent Mistakes
Reacts to Problems if Serious
Absent when Required
Avoids Involvement
Performance of Project
Transformational Leadership Style
Project Completion within
Moral and Ethical Standards Time, Budget and Quality
Power and Confidence
Awareness on Important Issues Beneficiary Satisfaction
Teaches and Coaches
Different Abilities
Leadership Experience
Figure 2 Map of Southern Nations, Nationalities and Peoples Region, Kaffa Zone (source google
map)
Research design gives a comprehensive outline for data collection in an empirical research
project. It aims to answer precise research questions, test specific hypothesis and specifies
the process of data collection, the process for developing the instrument and the sampling
procedure Bhattacherjee (2012).
This study adopted descriptive survey. Descriptive survey is appropriate for this study since
it involves fact – findings by asking questions administered through questionnaires to a
large team who are required to describe the state of affairs as is at that particular time and
the findings presented using statistical methods (Kothari, 2004; Mugenda and Mugenda,
2003 and Cooper and Schindler, 2003).
The literature review and data collection by questionnaires and interview about the projects was
conducted. The collected questionnaires were analyzed using excel and SPSS v20. By using this
design, the researcher was able to find answers to questions by analyzing specific variable related
to project performance.
The study was conducted from end of October, 2019G.C. to September 2020G.C
Road Projects 4 4 5 2 4 15
Building
Projects 3 6 8 3 6 23
URRAP 4 4 4 3 3 14
Water Projects 5 5 3 2 3 13
Total 16 19 20 10 16 65
N= Total population
Therefore, the total number of respondents in this study was 56 respondents; this represents
86.15% of the Target Population
Total 65 56
Source: Researcher (2019)
3.7 List of Variables
Independent Variable
Transformational Leadership Style,
Leadership Experience
Dependent Variable
Project Performance
Data collection tools were adapted after review of relevant literatures and used. Data collection
was free from bias and all collected data’s were included in the output.
The study applied both qualitative and quantitative approaches for data analysis. Qualitative data
was analyzed through content analysis and presented in form of explanatory notes while
quantitative data, was analyzed trough descriptive statistics such as frequencies, percentages,
means and standard deviations and presented in the form of tables and charts
……………………………………………………..
…………………………………………………
12%
%age of Returned
Questioner
%age of Non Returned
Questioner
88%
From this analysis, it can be inferred that the response rate of the study was very good, since
rate of return of 50% is considered sufficient, 60% is good, 70% and above is very good
according to Mungenda and Mungenda (2003).
4.2Demographic and General Information
The study targeted Project Managers, Project Team Members, community leaders and project
beneficiaries of ongoing housing Projects of kaffa zone. The demographic characteristics of
the respondent were investigated in the first section questioner. The demographics captured
age of respondents, gender, level education, amount of experience.
Gender of Respondents
33%
Male
Female
67%
From the findings, the study involved both male and female respondents and out of 49
respondents, majorities were male, representing 67.3% while the female counter parts were
32.7%
60.00%
50.00%
40.00%
30.00%
20.00% 16.33% 16.33%
10.00%
0.00%
Master's Degree Bachlor Degree College Diploma
Level of Education
30.00% 26.53%
25.00%
18.37%
20.00%
14.29%
15.00%
10.00%
5.00%
0.00%
2 to 4 years 5 to 7 years 8 to 10 years Above 10 years
Time in Years
The findings indicates that 18.37% of the respondents had worked in organization for 2 to 4 years;
40.82% of the respondents had worked in organization for 5 to 7 Years; 26.53% of the respondents
had worked in organization for 8 to 10 years; 14.29% of the respondent had worked in organization
above 10 Years and there is no respondents that had below 2 year experience .the findings indicate a
population of matured experience on managerial position and duration of construction projects.
The data analysis from the stratified sampling conducted revealed that, 30.61% of the
respondents were project managers (Resident Engineers); 36.73% of the respondents were
project team members;16.33% of the respondents were community leaders while 16.33% of
respondents were represented project beneficiaries in the survey.
The high representations of project managers (Resident Engineers) and project members (site
engineers, construction engineers, office engineers and assistance resident engineers) was
inevitable as this are the very key professionals usually engaged in the management of
construction projects in kaffa Zone.
The reliability of the data was analyzed by using Statically Package for Social Sciences
version20 (SPSS v20). SPSS v20 was used to run the value of Cronbach‟s alpha and the
results for transactional leadership styles, transformational leadership styles and leadership
experience are as shown in Table4.2. The values show that, all are reliable because, they are
greater than 0.4 and its normal range of Cronbach’s coefficient alpha value between 0.0 and
+ 1.0, according to Hammad, 2013.
Table 3: Cronbach's Alepah for Questinnaires Reliability
Cronbach's
Alpha
S.No. Independent Variables Cofficent No. of Items
1 Transaction Leadership Styles 0.395 4
2 Transformational Leadership Styles 0.804 4
3 Leadership Experience 0.586 5
To estimate the extent to which the respondents agreed with the effect of project management
leadership styles on project Performance of construction projects of Kaffa Zone, an analysis was
done and the findings are presented on Table below
Little Extent 3 6%
Total 49 100.0
Source: (Survey Data, 2019)
From the findings, 22% of the respondents agreed the effect was to very great extent; 41% of the
respondents acknowledged that the effect was to a great extent; 31% of the respondents indicated
that the effect was to a moderate extent while only 6% indicated the effect was of little extend.
It can be conclude that all respondents thus agreed the project management leadership style
affect the performance of construction projects on kaffa zone.
4.5Transactional Leadership style and Project Performance
Table 5: Transactional Leadership Style and Project Performance
Table 5 shows that transactional leadership is applied moderately by project managers with
aggregate mean 3.01 Manager Track’s mistakes for each staff and Penalizes when they reaches a
certain threshold. (mean 3.29); managers give a clear reward for each schedule (mean 3.14);
Project Managers is always absent when needed to attend to important project matters (2.86)
Project Managers delays to respond to Problems (mean 2.76); from statements, projects manager
tracks mistakes and penalties, managers give a clear reward for each schedule have a mean of
3.29 and 3.14 respectively. The mean of mean is calculated to identify items that have significant
influence on performance of projects .means that are higher in value to the mean of means are
significant with strength determined by their value. In this regard Manager Track’s mistakes and
Penalizes when they reach a certain threshold had the strongest significant influence to the
project performance. Managers give a clear Reward for each schedule had significant influence
on project performance respectively. The study did not find significant influence of the following
aspects to project performance: Project Managers is always absent when needed Project
Managers delays to respond to Problems.
Leadership Experiance on
Performance of Project
27%
Yes
No
73%
Findings indicate that majority of the respondents (73.5% agreed that leadership experience
affects project performance of construction projects on kaffa zone while 26.5% indicated that
leadership experience does not affect the performance of construction projects of kaffa zone. This
is in line with Ehrenberg & Smith (2000) findings in their Human Capital Theory, suggest that
leaders make investments of experience in them, which provides accumulation of both technical,
and workforce knowledge and skills and will enhance their ability to influence teams and
eventually organizational performance. This particular hypothesis can be recognized by the
survey conducted in three construction departments specifically in UAE by Randaree &
Chaudhry (2012), according to the survey most of the respondents also cited that with the
experience of leaders, they are more effective in maintaining projects and also in managing the
team to perform effectively
The following statements were presented to the respondents to establish the extent to which
they agreed with statements on leadership experience on project performance of construction
of kaffa Zone. The findings presented in the table below
Table 8: Statements on Leadership Experience and Project Performance of kaffa Zone construction
projects
Average 30 61.22%
Poor 7 14.29%
Total 49 100%
From the findings, 4.08% of the respondents rate the performance of construction projects on
kaffa zone excellent; 61.22% acknowledge the rate of performance of construction projects
average; 20.41% indicated that the rate of performance of construction projects below
average and 14.29% agreed that the rate of performance of construction projects were poor.
The performance of construction projects on kaffa zone was assessed by using budget, time,
project objectives and satisfaction of projects beneficiaries an analysis was done and the
findings are presented on Table below and using stated statements that presented to the
respondents to establish the extent to which they agreed with the statements on performances
of construction projects on kaffa zone. Where: Scale 1 = (SD) Strongly Disagree 2= (D)
Disagree, 3= (N) Neutral, 4= (A) Agree, 5= (SA) Strongly Agree
Table 10: Statements on performance of construction projects
Std.
statements Mean Deviation
Projects on Kaffa Zone are Completed within 2.22 1.026
the budget
Project on Kaffa Zone Completed with Time 2.31 0.962
Project Objectives are Achieved 3.00 0.957
Project Beneficiaries are Satisfied 2.98 1.09
Mean of Means 2.62
Source: Survey Data (2019)
Based on the above result shown on the Table, it is apparent that the mean response ratings
for more than half of the respondents’ response were above average with an overall average
mean score of about 2.62. From the total of 4 statements stated above, only two of them had
a standard deviation less than 1.0 indicating some level of agreement among the respondents’
ratings. According to the survey, the most highly-agreed point or statement is that project
objectives are achieved and project beneficiaries are satisfied in construction projects of kaffa
zone with means of 3.00 and 2.98 respectively however in the statement that indicate project
beneficiaries are satisfied, few of the respondents had variations’ in the rating of their level of
agreement with standard deviation greater than 1.0.
Pallant J. (2005) informs that the p-value is the probability of obtaining a test statistic result
of at least as extreme or as close to the one that was actually observed, assuming that the null
hypothesis is true. Researchers often “reject the null hypothesis” when the p-value turns out to be
less than a predetermined significance level, often between 0.05 or 0.01. For this study, the p-
value for the leadership style practices was benchmarked at 0.01 in order to obtain a statistics
significance of the variables being studied. Also, the correlation coefficient (r-value) can range
between ±1.0. A coefficient of +1.0 is a “perfect positive correlation”, meaning that changes in
the independent item will result in an identical change in the dependent item (for example, a
certain leadership style will result in project success). A coefficient of -1.0, a “perfect negative
correlation,” means that changes in the independent item will result in an identical change in the
dependent item, but the change will be in the opposite direction. A coefficient of zero means
there is no relationship between the two items and that a change in the independent item will
have no effect in the dependent item.
Findings in the table below present the associations between Transactional leadership styles,
Transformational leadership styles, Leadership Experience and Project Performance on Kaffa
Zone.
Correlations
Project Performance on Transactional Transformational Leadership
Kaffa Zone Leadership Style Leadership Style Experience
Where by
While β1, β2 and β3 are coefficients of Xi variables and ɛ is the error term.
Regression diagnostics tests were performed to evaluate the measurement model for
multicollinarity and results from the analysis suggested that the variables used in research were
reliable (R2=0.101, F=10.047, p=0.000).
Model Summaryb
Model R R Square Adjusted R Square Std. Error of the Estimate
The model summary table reports the strength of the relationship between the model and the
dependent variable. R, the multiple correlation coefficient, is the linear correlation between the
observed and model-predicted values of the dependent variable (R=0.633). Further, 40.1%% the
observed variations in project performance is explained by Transactional leadership style,
Transformational leadership style and leadership experience (R2=0.401) as shown in the table
above. The implication is that 59.9% per cent of the changes in project performance can be
attributed by other fact.
Table 13 ANOVA Results
ANOVAa
Model Sum of Squares Df Mean Square F Sig.
Regression 13.691 3 4.564 10.047 .000b
1 Residual 20.441 45 .454
Total 34.133 48
a. Dependent Variable: Project Performance on Kaffa Zone
b. Predictors: (Constant), Leadership Experience , Transformational Leadership Style, Transactional
Leadership Style
The result of ANOVA test show that the F value 10.047 with a significance of p value =0.000
which was less than 0.005, meaning that there is a significant relationship between Transactional
leadership style, Transformational leadership style ,leadership experience and performance of
construction projects of kaffa zone. F calculated (F computed) is greater than the critical (F
tabulated) (10.047>0.67), this showed that the overall model was statistically significant at 5%
significance level.
Regression analysis further performed to determine the effect of Transactional leadership style,
Transformational leadership style and Leadership Experience on project performance of
construction projects of kaffa zone based on the above model. Results are presented in table 14.
Coefficientsa
Model Unstandardized Coefficients Standardized t Sig.
Coefficients
B Std. Error Beta
(Constant) .531 .559 .950 .347
Transactional Leadership
.297 .104 .413 2.864 .006
Style
1
Transformational
.334 .132 .336 2.536 .015
Leadership Style
Leadership Experience -.042 .111 -.048 -.376 .034
a. Dependent Variable: Project Performance on Kaffa Zone
The regression model provides statistical control through which the study established the effect
of each predictor variable. Holding all variables at zero will result in a positive performance of
kaffa zone construction projects equal to 0.531. In a similar way, reducing all other independent
variables to zero, a unit change in Transactional leadership style will result in 0.297 increments
in positive performance of construction projects on kaffa zone. The findings indicate 0.334
increments in performance of construction projects on kaffa zone when all other independent
variables are reduced to zero with only a unit change in Transformational leadership style.
Finally, a unit change in leadership experience will yield 0.42 decrements in performance of
construction projects of kaffa zone when all other predictor variables are held constant at zero
these refer leadership experience is found to have a negative significant impact on performance
of construction projects on kaffa zone.
The results also show that the coefficients for each variable are non- zero. This therefore means
that all the independent variables affect the response variable. However, since the p-values for
transactional leadership style, transformational leadership styles and leadership experience are
less than 0.005, thus all predictors are very significant on performance of construction projects of
kaffa zone. Which was supported by researcher (James T ,2018 ) indicate that 42.7 % of the
variance in TPI was explained by project manager’s transformational leadership style while
model 2 shows that 53.2 % of the variance in project time performance was explained by both
transformational and transactional leadership style.
The finds of this study also in line with previous research studies (Wang, et al., 2010; Obiwuru,
et al., 2011). As per the literature review, transformational leadership helps in establishing a
value system along with providing the employees an opportunity to develop their skills and
abilities and leadership styles contribute effectively in determining the organizational
performance. Which was again supported by Ebrahim H., 2018 on result of Pearson correlation
the transformational leadership style (β = 0.032; t= 0.276; P=0001) were found to have a positive
relationship with organizational performance
Further findings obtained that both transformational and transactional leadership style accounts
for a higher explanatory power are in line with findings by Felfe, et al. (2004) who had
established that both transformational and transactional leadership styles aspects can be adopted
by a leader based on the task at hand. However on the other hand, leadership experience and
leadership control have positive impact of performance of CI (compassion international) projects
(FAITH NZIVA MARY, 2018), which contradicts the results of the survey. This space can be
further researched in the future by gathering more evidence.
Chapter Five
The summary of findings will follow the order of research objectives. The basic purpose of
the study was to Assess Project Managers Leadership Style on Construction Project
Performance: A Case of Kaffa Zone, SNNP/Ethiopia. The study adopted a descriptive
research design with target population of 65 from which a sample size of 56 respondents was
selected using Krejcie & Morgan scale. Data was collected by use of questionnaires and
analyzed by use of descriptive statistics. The findings of the study according to the research
objectives were as follows:
Based on the study, majority of the respondents (73.5% agreed that leadership experience
affects project performance of construction projects on kaffa zone while 26.5% indicated that
leadership experience does not affect the performance of construction projects of kaffa zone.
The study established that a minimum year of a project leader is not required for
implementation of construction project on kaffa zone with mean of 2.82 that is lesser value of
min of mean 3.55. However Project leaders experience is reflected by the quality of work and
Leadership past involvement leads to effective performance of construction projects on kaffa
zone with min 4.00 and 3.84 respectively.
When asked to measure the extent at which the response on the effect of leadership
experience on performance of construction projects was: 16.33% to very great extent;
40.82% to a Great extent; while 30.61% to a moderate extent and 12.24% to little extent.
Thus majority of the respondents thus agreed on great extent on leadership experience affect
the project performance of construction projects on kaffa zone.
Basic purpose of this research study was to assess project managers’ leadership style on
construction project performance of kaffa zone
Findings of the study show that majority of a project experience significant budget and time
over run. From the study findings it can be conclude that project objective achievement and
beneficiary satisfaction was the most important parameter of project performance on kaffa
zone.
The study concludes that leadership style has a significant effect on project performance
specifically, found that transformational leadership style had the most significant influence
on project performance and it is the most preferred by employees of construction projects on
kaffa zone. However it’s imperative for project managers to adopt aspects of both
transactional and transformational leadership styles with significant influence to project
performances in order to improve performance of construction projects
The research results found that leadership experience had a large effect on project
performance of construction projects on kaffa zone. The respondents further agreed that
Project leaders experience is reflected by the quality of work and Leadership past
involvement leads to effective performance of construction projects on kaffa zone.
The study concludes that there is a significant relationship between transactional leadership
styles, Transformational leadership styles and Leadership Experience and Project
performances of construction projects on kaffa zone.
4.4 Recommendations
On the basis of findings and conclusions drawn from the study, the following
recommendations are proposed.
Project managers and other professionals working in the construction industry should
understand that leadership is important in construction project and should apply principle of
leadership to get better performance of a project.
The study recommended that managers adopt transformational leadership style and project
managers experience that support by leadership skill have a great impact to ensure effective
performance of projects.
Project managers should lead by being model of moral and ethical standards to be emulated
by team members. Managers should encourage their teams to find solutions to challenging
problems within a project.
The study suggest emphasis be given to the experience of project staff to ensure projects are
effectively executed in order to fully meet set objectives
Regular leadership training should be prepared for managers to improve their leadership
styles
Project managers should have some motivations like reward and recognition schemes for
their workers to have some level of job satisfaction.
Future research could widen the number of organization and can enlarge a bigger sample data
size in different industries such as travel, banking and hospitality
Further study focus on the influence of Specific Transformational Leadership style’s trait,
characteristics, skill and behaviors on construction project is recommended.
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APPENDIX –I: Questionnaire
Introduction Letter
Jimma, Ethiopia
Dear Sir/Madam,
I request for your assistance in gathering data for this study which is purely academic. The
questionnaire should only take a few minutes of your time and your participation is voluntary.
Your completion and return of the questionnaire will constitute your implied consent. Your
response is very important to the success of this study. All information will be kept completely
confidential your identity will not be given to anyone.
Thank you for the valuable time and information provided in this study.
Yours faithfully,
The aim of this questionnaire is to gather information about Assessment of Project Managers
Leadership Style on Construction Project Performance a Case of Kaffa Zone. Please to answer
the question truthfully.
20-29 years [ ]
30-39 years [ ]
Where, Use the Scale 1 = (SD) Strongly Disagree 2= (D) Disagree, 3= (N) Neutral, 4= (A)
Agree, 5= (SA) Strongly Agree
Statements relating to transactional leadership styles SD-1 D-2 N-3 A-4 SA-5
I. The manager gives a clear reward scheme for each
scheduled task in the project.
II. The manger tracks mistakes for each staff and penalizes
when they reaches a certain threshold.
III. The project manager delays to respond to problems
occurring in the project.
IV. The project manager is always absent when needed to
attend to important project matters.
Statements relating to transformational leadership styles SD-1 D-2 N-3 A-4 SA-5
V. The manager displays power and confidence while
administrating project activities.
VI. The manger arouses awareness about important tasks and
schedules in the project.
VII. The project manager encourages the team to look at
problems from different dimensions.
VIII. The project manager appreciates our different abilities and
therefore provides individualized attention to staff.
10. In your opinion does leadership experience affect the performance of construction project
of kaffa zone?
Yes ( ) No ( )
If yes explain
………………………………………………………………………………………………………
……………………………………………………………………………………………
11. To what extent does leadership experience affect the performance of construction project
of kaffa zone?
Very great extent ( )
Great extent ( )
Moderate extent ( )
Little extent ( )
Not at all ( )
12. Indicate your level of agreement with the following statements to the effect of leadership
experience on performance of construction project on kaffa zone
Where, Use the Scale 1 = (SD) Strongly Disagree 2= (D) Disagree, 3= (N) Neutral, 4=
(A) Agree, 5= (SA) Strongly Agree
Statements relating to transformational leadership styles SD-1 D-2 N-3 A-4 SA-5
I. A minimum year of a project leader is required for
implementation of construction project on kaffa zone.
II. Project leaders experience is reflected by the quality of
work
III. Leadership past involvement leads to effective performance
of construction projects on kaffa zone
Part E: Performance of construction Project on kaffa zone
13. Generally how do you rate the performance of construction project on kaffa zone?
Excellent ( )
Average ( )
Below average ( )
Poor ( )
14. Indicate your level of agreement with the following statements relating to performance
of construction project on kaffa zone
Where, Use the Scale 1 = (SD) Strongly Disagree 2= (D) Disagree, 3= (N) Neutral, 4=
(A) Agree, 5= (SA) Strongly Agree
Statements relating to transformational leadership styles SD-1 D-2 N-3 A-4 SA-5
I. Projects on kaffa zone are completed within the budget.
II. Project on kaffa zone completed with time
III. Project objectives are achieved
IV. Project beneficiaries are satisfied
Thank for your time
APPENDIX II- SAMPLE OF SPSS DATA COMPUTATION
ONTHE ANALYSIS