Abstract:
The purpose of this study was to investigate the effect of leadership styles on employee performance. The research questions that were used to guide this study are as follows: To what extent does directive leadership style affect employee performance? To what extent does supportive leadership style affect employee performance? To what extent does participative leadership style affect employee performance? To what extent does achievement- oriented leadership style affect employee performance? And lastly, how does company culture moderate between leadership styles and employee performance?
The research was guided by positivism philosophy and a descriptive correlational design was used to conduct the study. The population was made up of 84 senior managers who report directly to the CEOs of the 13 companies that won COYA during the year 2010 to 2013. A census was used to draw the sample size. The data collection instrument used in this study was a questionnaire. Data was then analyzed using descriptive and inferential statistics. The descriptive included frequencies and percentages whereas inferential analysis included Pearson Correlation, Linear Regression, Chi square and ANOVA. Thereafter, Statistical Package for Social Sciences (SPSS) was used in the analysis.
A chi square test of independence examined the effect of directive leadership style on employee performance and obtained a value of x^2(3, N=69) =10.948, p>.05. The results of the regression indicated that directive leadership style had no significant effect on employee performance (R2= -.184, F(2.036) = 27.801, p>.05), based on this, the study accepted the null hypothesis.
A chi square test of independence examined the effect of supportive leadership style and employee performance and obtained a statistically significant value of x^2 (3, N=69) =2.661, p< .05. The results of the regression indicated that supportive leadership style had a significant effect on employee performance (R2= .119, F(2.125) = 2.406, p<.05). The predictor variable indicated that 11.9% of variance in employee performance was due to supportive leadership style. The result showed that supportive leadership style significantly affects employee performance, based on this, the study rejected the null hypothesis.
A chi square test of independence examined the effect of participative leadership style and employee performance and obtained a statistically significant value of x^2 (3, N=69)
v
=2.231, p< .05. The results of the regression indicated that participative leadership style had a significant effect on employee performance (R2= .232, F(1.065) = 2.406, p<.05). The result showed that participative leadership style was a strong predictor of employee performance. The predictor variable indicated that 23.2% of variance in employee performance was due to participative leadership style, based on this the study rejected the null hypothesis.
A chi square test of independence examined the effect of achievement oriented leadership style and employee performance and obtained a statistically significant value of ^2 (3, N=69) =8.773, p<.05. The results of the regression indicated that achievement oriented leadership style had a significant effect on employee performance (R2= .343, F(1.065) = 2.406, p<.01). The predictor variable indicated that 34.3% of variance in employee performance was due to achievement oriented leadership style, based on this the study rejected the null hypothesis.
The study concluded that high employee performance is achieved when leaders apply the directive style based on the situation at hand; also that high employee performance is achieved when leaders use the supportive leadership style by taking keen interest in matters concerning employees. High employee performance is also achieved when participative leadership style is applied by involving employees in decision making. Lastly, the study concluded that high employee performance is achieved when achievement oriented leadership style is used by setting clear reward systems and encouraging employee independence.
The study recommends that directive leadership should only be used in a cautious way. Companies should apply supportive leadership style by showing strong concern for their employees. The study also recommends that companies should also apply participative leadership style by involving employees in decision making. Lastly, the use of achievement- oriented leadership style should focus on creating a working reward system. Finally the study recommends that further research be carried out on the same topic but focusing on companies from a specific industry and those that didn’t win the award.