Leadership Dynamics and Conflict Resolution Strategies: A Case of Enterprise and Industry Development Sectors in Ethiopia

Abstract

This study sought to uncover the connection between leadership practices and conflict resolution methods favored by leaders in Ethiopian businesses and industries. Data for this research were gathered through a questionnaire completed by participants themselves, consisting of two parts: one evaluating leadership styles and the other assessing conflict resolution strategies. The study included 255 respondents, and the data were analyzed using independent sample t-tests and correlational analysis. The results revealed a notable disparity between how leaders perceive their own leadership styles and how their subordinates perceive them. Leaders tended to rate their leadership styles highly across all dimensions of transformational leadership and contingent reward style of transactional leadership. In contrast, their subordinates rated them more favorably in terms of idealized influence within transformational leadership and the contingent reward aspect of transactional leadership. Among the three leadership styles examined, a strong positive correlation was found between transformational leadership style and the collaborating conflict resolution strategy. Additionally, a positive correlation was found between transactional leadership style and the collaborating conflict resolution strategy. On the other hand, a negative correlation was found between laissez-faire leadership style and both the dominating and compromising conflict resolution strategies, it is crucial for leaders to consistently exhibit all aspects of these leadership characteristics for the adoption of various conflict resolution strategies.