Eefects of Leadership Styles on Employee Prformance

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This chapter covers the background information of the study, statement of the problem by the researcher and objectives of the study to be attained. It also covers the research questions, significant of the study as well as the scope of the study and its limitations.

There is an ongoing problem about leadership styles and its impact on various aspects of employee performance and their work-related health. It has been suggested that leadership factors had an influence on the employee performance, although relationship between leaders and subordinates has gradually been more focused; but it is still scientifically unclear as to what extent and in what ways leaders influence the employee’s performance. The leader can be described as a possessor of the tools to create and change the structure and culture within an organization.

The structural changes have led to new demands on employees’ flexibility and ability to handle changes, which is referred to as a heath risk (Aronson & Sjogren, 1994).

With the ever changing business landscape of more and innovative competitors, most service firms recognize the need to introduce innovations and new technologies within their organizational processes to stay in the market, or retain their competitive advantage compared to their rivals.

An attempt was made to find out the correlation between leadership style of mangers and performance and satisfaction of managers and followers. Democratic/participative leadership style involves employees in decision making process (determining what to do and how to do it) to attain the organization goals.

Using this style is not a sign of weakness, rather is a sign of strength that our employees will respect. This is normally used when you have part of information, and your employees have other parts. Note that a leader is not expected to know everything. This is why you employ knowledgeable and skilful employees. Using this style is of mutual benefit. It allows them to become part of the team and allows you to make better decisions.

A democratic leadership style will lead to the use of non-controlling tactics of influence in which managers and employees discuss work-related issues. It is also effective for the performance evaluation as illustrated below:-

1.1.1 Diagram showing performance evaluation.

The relationship between leadership style and employee performance has been a subject controversy by researchers (Nwadian 1998 and Adeyeni 2006). The controversy was centered on whether or not the leadership style influences the level of job performance among employees.

Common observation shows that leadership style could perhaps have serious impact on human relationship hence affected the employee performance. For the purpose of high performance of employees and subordinates there was the need of using effective leadership style and also important. Research also described that effective leadership styles can enhance the employee performance and commitment with their job. So the execution of leadership styles is one way that with use of different leadership styles, leaders can construct commitment and job satisfaction of employees that increase their performance.

The general purpose of the study was to establish the relationship between employee’s performance and leadership style. The specific objectives of the study were: i) To identify the extent of democratic leadership style used in the organization. ii) To determine the indicators of employee performance. iii) To establish the relationship between democratic leadership style and employee performance.

The study covers the questions which are from the objectives so that it answers them appropriately....
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