INFLUENCE OF LEADERSHIP STYLE ON EMPLOYEE
PERFORMANCE: A CASE OF MEMBERSHIP
ASSOCIATIONS IN KENYA
1.1 Background of the Study
Leadership has various definitions one of which is the process in which one party influences the
activities of an individual or a group of individuals into achieving certain set goals or objectives
(Northouse, 2014). The leadership of any given organization is required to direct and influence the
employees and members of the organization towards the attainment of the set organizational goals
(Shuck & Herd, 2012). The leadership of any given institution or organization is also mandated with
the development of policy and the administrative systems of the organization. The policies put in
place helps leaders and those in management to make informed decisions regarding employee
development, motivation and rewards based on the underlying systems and values which positively
translate to improved employee performance and ultimately organizational performance. The
leadership system of any given organization is responsible for the performance of employees and
the overall business needs of the organization (McCall, 2010).
Leadership styles have a huge impact in influencing the commitment of employees in any given
organization and their performance (Springer, 2013). There are various leadership styles that
contribute to improving organizational performance, productivity, and the capacity to overcome
leadership challenges encountered in organizations. These leadership styles include
transformational, transactional, autocratic, bureaucratic, charismatic, delegative also known as
laissez-faire and participative. The integration and cross functionality of the various styles of
leadership allows the leader to connect the performance of the organization and employee with
the purpose in which the firm intends to pursue general (Springer, 2013).
Transformational leaders have been known to motivate and encourage change in the individuals
whom they manage (Ghasabeh, Soosay & Reaiche, 2015). Despite Leadership characteristics,
leaders must demonstrate effective leadership. Effective leadership has been known to involve
having the expertise to direct, persuade and inspire employees and others to work hard to achieve a
common goal of the organization (Yukl, 2012). Northouse (2010) also perceived transformational
leadership as having the skill to understand and apply the leadership behaviors necessary to boost
employee engagement and satisfy the overall stakeholders of the organization. Transactional leaders
are concerned with the completion of tasks and performance of employees.
According to Smith, Eldridge and DeJoy (2016), transactional leadership has been used as a
corrective approach by management and has two dimensions: contingent reward and
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management by exception (active and passive). Autocratic leadership styles allow a leader to
indicate clear expectations and define outcomes of an employee. Having one leader in an
autocratic leadership style can at times turn out to be successful in situation when a leader is
more knowledgeable in team setting. Although this may be an efficient strategy in instances
where there are time constraints, creativity is usually sacrificed since input from the team is
limited. The autocratic leadership style is also used when team members need clear guidelines.
Bureaucratic leadership pertains to organizational leadership through a formal set of structures.
Policies and rules have been known to form a clear set of expectations and show a certain chain
of command (Nielsen & Moynihan, 2017). Charismatic leadership can be defined as a setting
whereby a leader uses his or her communication skills, persuasiveness, and charm to influence
others. laissez-faire leadership is a delegative leadership style focuses on delegating initiative to
team members and can be a successful strategy if team members prefer engaging in work
individually. Participative leadership styles are rooted in the democratic theory. The importance
is to involve all team members and employees in the decision-making process so that they feel
included, engaged, and motivated to contribute to the overall organization performance (Rich,
2013).
According to Shamaila (2012), employee performance are all the activities expected of an
employee and the way in which these activities are assessed on quarterly, bi- annual basis to
enable management to identify areas for improvement in the organization. This can be noted
through ability and innovation as opposed to lack of communication to the team members,
absence, and adherence to company policies. It is also often taken as employee satisfaction
whereby once the employee is glad about his/her job, the performance index goes up and incase
of dissatisfaction then performance consequently falls. Job satisfaction is the feelings that an
employee has towards their job and the level of satisfaction that staff attain from the different
roles that they play in a corporation. It is merely the perception of staff that the job provides
things that are vital for them like wages, promotional opportunities, career growth and
employee benefits (Wen, Ho, Kelana, Othman & Syed, 2019).
Globalization today has forced and shifted how business and companies operate in the world, an
increase in competition has encouraged companies to transform their businesses and
productions hence encouraging employees’ performance (Bonsu & Twum-Danso, 2018). Such
organizations at the global market level are most concerned with their performance due to high
competition in the market and as such, companies and organizations are constantly focused on
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progressing, setting strategic objectives, and expanding their operations. However, there are
various factors influencing and driving organizational performances, with leadership and
leadership styles being a factor influencing the performance of employees in such global
organizations.
Today, the global business orientation has become increasingly competitive, and the
management’s leadership style is gaining importance to drive employees’ efficiencies and
productivity levels. Employees are known to be the key drivers or engine of the organization.
Managers are expected to demonstrate good leadership that can boost employees’ performance
and direct followers to achieve organization goals. A number of global studies have discussed
the impact of leadership styles on employee performance. In Asia, Wang, Tsui and Xin (2010)
analyzed 125 Chinese firms to study the role of leadership styles on employees and thus
organizational performance. The study in Asia identified two types of leadership behaviors
namely relational behave or and task behavior. In that study, performance was measured as
profitability, sales growth, market share, and competitive status. They found that leadership
styles were directly related to employee performance.
In Indonesia, Holbert, Madhakomala, Saparuddin and Timotius (2021) noted that the role of the
leader is to give clear direction, influence behavior of the employees, create proper working
environment that is satisfactory to the employees and will result in improved outcomes. Similarly,
Bastari, Eliyana and Wijayanti (2020) revealed that the transformational leadership style helps in
uniting subordinates, changing beliefs and attitudes and influencing goals in a manner to meet and
surpass personal and organizational goals. Support from leaders motivates staffs and improves their
work output. Zamin and Hussin (2021) argue that the adopted leadership style and work climate
impact commitment levels of the employees and influence job performance. The reviewed
university lecturers in Indonesian public institutions were able to improve their job performance and
commitment levels when the leaders provided a good work climate and gave clear directions,
support and adequate resources. Further, Fiaz, Su, Ikram and Saqib (2017) analyzed 548
participants in Pakistan to study the role of leadership on employee performance and in their study;
employee performance was measured in terms of innovation propensity. Their study found that
leadership styles were key in enhancing employee performance.
In Africa, Mohammed, Yusuf, Sanni, Ifeyinwa, Bature and Karim (2014), used the path- goal
theory of leadership to study the relationship between leadership styles and employee
performance. Their study focused on selected business organizations in the capital territory of 3
Abuja, Nigeria. The study was carried out to determine the relationship between leadership
style and employee performance in the identified organizations in which the findings showed
that there was a significant relationship between leadership style and employee performance in
an organization. This study observed that leaders and leadership style in organizations affected
the ability of their employees to achieve corporate goals and objectives (Menz, 2012). The
study recommended that for maximum employee performance to be attained, a good reward
system must be put in place. The research concluded that leadership has a significant effect on
employee performance and organization growth (Northouse, 2014).
In Kenya, Otieno, Waiganjo and Njeru, (2015) used the path-goal theory to study the relationship
between leadership styles and employee performance in Kenya’s horticultural sector. The study had
the objective of establishing the relationship between employee communication, involvement,
relationship, and performance and then determining the moderating effect of leadership styles on the
employee performance in the horticultural sector in Kenya. The study found that employee
engagement by the leadership was one of the best leadership strategies used by organizations in the
horticultural sector to improve their performance.
In the hospitality sector, (Wanjala, 2014) in a study on the influence of leadership style on
employees' job performance looked at the case of Safari Park hotel. The purpose of the study was to
investigate the leadership styles of managers and how it affected employee performance. The study
found out that the democratic and transformational leadership styles were prevalent at the Safari
Park Hotel more than the autocratic leadership style. The study revealed that the leadership style of
a manager directly affected the employee job performance either negativelyor positively. It was also
argued by Ng’ethe, Namasonge and Mike, (2012) that the role of leaders and their leadership styles
are crucial in employee retention. This assertion is on the notion that leadership styles can either
motivate or discourage employees, which in turn causes increase or decrease in employee
performance and propensity for retention in the organization. A professional body, institute or
society is usually a non-profit organization seeking to further a particular profession, the interests of
individuals engaged in that profession and the public interest.
Professional associations can exist in local, state, national and global levels. Many professions have
professional associations, which were traditionally formed to help establish the legitimacy of
members within a specialized professional field for example accounting, law, medicine,
engineering, and architecture among others. There are potential member benefits of belonging to a
professional association such as networking, access to career opportunities, access to grants,
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professional development, training, and socializing. Associations are frequently regarded
individually in the context of the industry, profession or they represent. There are numerous
associations in the local and global sphere in Kenya, Africa and beyond to bear. According to
the (KNQA, 2021) statistics, there are twenty-seven professional bodies and Associations that
are registered with them and operate in the country and regulate the training and conduct of
their members.
Some associations have legal mandate which is established under the Kenyan law such as the
boards of registration, while other associations represent members of the profession only. Since
publishing of those statistics (KEPSA, 2021) and (APSEA, 2021) have since recognized other
associations who are their professional members. KNBS (2021) and MOIK (2021) indicated
that they are yet to gather more insights on the total number of associations in Kenya. The
Keysectors in which these associations and boards operate in are Agriculture, Tourism, Health
and Manufacturing, Transport and Infrastructure, Information and Communications
Technology, Financial Services and Building and Construction (National Treasury, 2021)
These associations and boards of registration are governed by the Board of Directors and
Council members and operations carried out by the secretariat who are the employees led by the
Chief Executive Officer, Liaison Officer or National Officer. Boards of Registration recognized
include Kenya Engineering Technology Registration Board, Kenya Veterinary Board, Media
Council of Kenya, Medical Practitioners and Dentists Board, Nursing Council of Kenya,
Pharmacy and Poisons Board, Board of Registration of Architects and Quantity Surveyors,
Clinical Officers Council, Council for Legal Education, and Engineers Board of Kenya, Kenya
Tourism Board, Real Estate Agents Board among others. Although limited research has been
done to ascertain how many associations there are in Kenya, this study will focus on only sixty
such institutions as a case study and will try to draw as much information from each regulated
sector which will be highlighted by the statement of the problem and will only cover the
relevant leadership styles applicable to membership associations.
1.2 Statement of the Problem
Leadership styles determine the level of staff participation in the decision-making process and
the way an organization is run administratively although the definition of leadership styles has
evolved over time (Mat, 2008). Organizational leaders are expected to carry out tasks with few
resources to the maximum level to maintain the competitive edge and sustain the profitability of
the organization. Donna (2011) indicated that managers should use their leadership style to
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motivate employees and to achieve organizational goals. Team leaders are believed to play a
big role in shaping the team’s norms, helping teams cope with their environments, and
coordinating and agreed upon action. Employee performance on the other hand includes
executing defined duties, meeting deadlines, employee competency and effectiveness and
efficiency in doing work. Various organizations need strong leadership styles that stimulate
employee performance (Kendra, 2013).
Over the years, leadership has presented a major challenge to practitioners and researchers alike
(North house, 2013). The term leadership is a highly valued phenomenon that is very complex
and is a process that is like management in many ways as it involves influence and requires
working with people, which the management requires as well (North house, 2013). Lockwood
(2007) asserts that a manager’s leadership style can support employee performance but can
affect them either positively or negatively. Leadership is not what they call a one size fits all.
Often, a manager must adapt their style to fit a situation or a specific group of people in an
organization and therefore it is useful to gain a thorough understanding of various leadership
styles; after all, the more approaches and leadership styles the manager is familiar with, the
more tools they will be able to use to lead effectively (Murray, 2013).
In Africa, research done based on available literature was that African leaders were terribly
ineffective and adapted very poorly to the demands of an increasingly complex globalized
economic system (Ochola, 2007). Edoho (2007) declared that until African countries develop
the managerial capacities of their leaders, (both within the public and private sectors) progress
on the continent may remain, illusive. Leadership development has therefore brought about a
policy interest during the past three decades, guided by the view that more African leadership
styles should encourage better employee performance for more efficient and effective
organizations (Doucet, Fredette, Simard & Tremblay, 2015).
Studies carried out by Kuria, Namusonge and Iravo (2016) on the effect of leadership on
organizational performance in the health sector in Kenya indicated that leadership influences the
relationship between employee participation and organizational performance and in conclusion,
leadership was observed to influence employee performance in the health sector in Kenya. Koech
and Namusonge (2012) also conducted a study on the effect of leadership styles on organizational
performance among State Corporations in Kenya. These studies findings showed that there was a
positive and negative correlation between performance and leadership style in various sectors; the
data was limited and inconclusive. Conceptual gaps were created since leadership style effect
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was not assessed with employee performance. Otieno and Njoroge (2019) study was on
leadership styles and employee performance, a case of Technical University of Kenya. The
results showed that transformational leadership was mostly applied followed by transactional
leadership while laissez-faire and autocratic styles were the least adopted. As a case study, the
application of the findings may be limited to the specific study area, thus creating
methodological gaps.
The divergent perspectives outlined above invite continual debate and research in Kenya and
Africa with more insights on different industries across the continent. Research must improve
insight into how management should behave as leaders and the implications of their leadership
styles on employee performance (Mwaisaka, K'Aol & Ouma, 2019). The Research therefore
argues in favor of a stronger positioning of leadership styles on the management research
agenda. It does so by reviewing some of the studies already published in the area and drawing
attention to some current knowledge gaps in the literature.
1.3 General Objective
The general objective of this research was to investigate the influence of leadership style on
employee performance in Kenya, A case study of Membership Associations in Kenya.
1.4 Specific Objectives
The study was guided by the following specific objectives:
1.4.1 To establish the extent in which transformational leadership style influence employee
performance in membership associations in Kenya.
1.4.2 To establish how transactional leadership style influences employee performance in
membership associations in Kenya.
1.4.3 To assess how participatory leadership style affects employee performance in
membership associations in Kenya.
1.4.4 To highlight how autocratic leadership style affects employee performance in
membership associations in Kenya.
1.5 Significance of the Study
1.5.1 Membership Associations
The Management of membership associations would be interested in finding out if leadership styles
affect the performance of the employees. The present study findings have been significant in
number of ways. It has contributed to the body of knowledge by investigating the effects of
leadership styles to increase the performance of employees in membership associations in Kenya.
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That said, the study proposes that the findings would help leaders in such organizations in
Kenya, Africa and beyond to bear.
1.5.2 The Employees
The employees would want to know how leadership styles affect their performance. Given that
leadership styles have a big impact on organizational employee performance, the research study
breaks down leadership styles into various dimensions, group orientations and centers of power
existing within an organization that have an influence on employee performance. Further, the
study extends the existing research in this area by focusing on the impact of these leadership
styles on employee performance and ultimately the organization.
1.5.3 Academicians and Researchers
There could be a number of academicians and researchers who would like to know what
leadership style that suitable in the management of employees in the organization and their
relevance and sustainability in the ever-changing workplaces. Researchers and academicians
will benefit from this research through the information provided which can be used in future
works to extend a pool of knowledge from the findings.
1.6 Scope of the Study
The study was conducted in Kenya and limited to the population of Nairobi area due to most
membership associations having their main offices in Nairobi area which is easily accessible by
the researcher. The respondents were drawn from the three-tier level of staff at secretariat which
comprised of employees in Top Level Management, Middle level management and lower level
of these firms. Geographically, the study was conducted in Nairobi because majority of the
firms had been headquartered there and this made it easier in terms of data collection. The study
was conducted in the month of January, 2022.
1.7 Definition of Terms
1.7.1 Leadership Style
Leadership Style is described as the manner and approach of providing direction, implementing
plans, and motivating.
1.7.2 Transformational Leadership Style
Transformational leadership style focuses on developing the followers and considering their needs.
The managers that focus on transformational leadership focus particularly on developing the overall
value system of the employees, development of moralities, skills and their motivation level.
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1.7.3 Transactional Leadership
Transactional Leadership encapsulates a leader who is always willing to give something in
return for work done. This can include a few things like promotion, pay raise, performance
reviews, new responsibilities etc.
1.7.4 Participative Leadership
Participative leadership is concerned by taking into consideration the inputs and ideas of
subordinates. Later, these contributions will be given specific evaluation before making the final
decision. This type of leadership focuses on setting high and challenging goals for subordinates
to ensure their continuous improvement.
1.7.5 Autocratic Leadership Style
Autocratic Leadership Style: In this leadership style, the authoritarian leadership style is
characterized by the highest degree of control of the leader and very limited followers’ input.
1.7.6 Employee Performance
Employee performance is defined as the successful completion of tasks, responsibilities or
assignments by a selected employee or group of employees based on set performance objectives
and indicators of efficiency and effective utilization of available resources.
1.8 Chapter Summary
The chapter has introduced the study. It has brought to light the background and the reasons for
the study as well as the justification and significance of the study. It has also highlighted the
research questions that are guided by the research, which is in line with the significance of the
study, which is the influence of leadership style on employee performance in Kenya. Chapter
two will be literature review based on the purpose and the research questions in chapter one.
Chapter three will examine the research design and methodology and chapter four presented
results and findings of the research. Lastly chapter five will present the summary, discussion,
conclusion, and further recommendations.
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