The Impact of Transactional and Transformational Leader on Organizational Performance - The Case of Selected Ethiopian Companies

In the literature, there are various approaches of leadership (also called styles or theories) identified as distinct ones. The two most referred ones are transformational and transactional leadership approaches. This research compares and contrasts the two theories of leadership in terms of their impact on IT supported organizational performance. The main objective of the study is to assess the extent they are practiced and their impact on performance. A survey will be made on selected companies to assess how subordinates will evaluate their leaders in terms of the attributes of the two styles of leadership. Questionnaires based on the Likert scale will be used to gather relevant data for the study. A model which has been developed based on the framework of Thite will be used to test the hypotheses forwarded. The research will contribute significantly by providing new insight into how a leader’s style will influence organizational performance in an Ethiopian context.