LEADERSHIP STYLE ON EMPLOYEE PERFORMANCE
SUMMARY, DISCUSSION, CONCLUSIONS, AND RECOMMENDATIONS
5.1 Introduction
The objective of the study was to examine the influence of leadership style on employee
performance in Kenya, A case study of Membership Associations in Kenya. The chapter
summarizes the main findings according to the study objectives. Moreover, the conclusion of
the study has been given, culminating with the suggestions and recommendations of points that
would require further research.
5.2 Summary
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. The
study was guided by the following specific objectives; to establish the extent in which
transformational leadership style influence employee performance to establish how
transactional leadership style influences employee performance, t o assess how participatory
leadership style affects employee performance, a nd to highlight how autocratic leadership
style affects employee performance in membership associations in Kenya.
The research design applied for this study was descriptive design and in particular, survey design.
The total number of the population is 700. The sampling frame of this study is a list of top
management, middle level management and lower-level employees of secretariats of membership
associations who are about seven hundred in number. Stratified random sampling was used and
narrowed down to simple random sampling technique to ensure that every individual has an equal
chance. The sample size for the study was 210. The data collection method that was used for the
research was primary data collection. Data preparation was done on the completed questionnaires
by editing, coding, entering, and cleaning the data before processing. There are measures of
central tendencies such as mean, mode and frequencies which was used in form of descriptive
statistics. This study employed the Pearson’s correlation analysis as well as linear regression
analysis to verify the results between the independent and dependent variables to determine
whether there was a relationship between the two.
The first objective the study was to determine the extent in which transformational leadership
style influence employee performance and the average mean for this was 3.225 and standard
deviation of 0.935 indicating respondents agreeing with most of the statements. Leaders instil
pride in other employees for being associated and the mean of 3.122 and standard deviation of
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1.016 was revealed. A Pearson Correlation was performed, and the result of the Pearson
correlation test as show a correlation (r (148) = 0.806; p<0.05) between transformational
leadership style influence employee performance. The findings imply that transformational
leadership style is positively correlated to employee performance. Based on the multiple
regression results, transformational leadership style was significant (p<0.05).
The second objective the study was to determine how transactional leadership style influences
employee performance and the average mean for this was 3.149 and standard deviation of 0.946
indicating respondents agreeing with most of the statements. Leaders express satisfaction when
employees meet their goals and expectations a mean of 3.284 and standard deviation of 0.857
was reported. A Pearson Correlation was performed, and the result of the Pearson correlation
test show a correlation (r (148) = 0.868; p<0.05) between transactional leadership style
influence employee performance. The findings imply that transactional leadership style is
positively correlated to employee performance. From the multiple regression results,
transactional leadership style was significant (p<0.05).
The third objective the study was to determine how participatory leadership style affects employee
performance and the average mean for this was 3.063 and a standard deviation of 1.039 indicating
respondents agreeing with most of the statements. It is appropriate for leaders to inspire their
subordinates, as well as stimulate their intellect and a mean of 2.878 and a standard deviation of
0.975 was shown. A Pearson Correlation was performed, and the result of the Pearson correlation
test show a correlation (r (148) = 0.735; p<0.05) between participatory leadership style influence
employee performance. The findings imply that participatory leadership style is positively
correlated to employee performance. The findings from multiple regression indicated that
participatory leadership style had significant effect on employee performance (p<0.05).
The fourth objective the study was to determine how autocratic leadership style affects employee
performance and the average mean for this was 3.118 and standard deviation of 0.987 indicating
respondents agreeing with most of the statements. Leaders go beyond their own self-interest for the
benefit of the employees with a mean of 3.135 and a standard deviation of 0.893 and those leaders
specify the importance of having a strong sense of purpose for others a mean of 3.169 and a
standard deviation of 0.979 was shown. A Pearson Correlation was performed, and the result of the
Pearson correlation test show a correlation (r (148) = 0.863; p<0.05) between autocratic leadership
style influence employee performance. The findings imply that autocratic leadership
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style is positively correlated to employee performance. On overall, autocratic leadership style
was significant (p<0.05).
5.3 Discussion
5.3.1 Transformational Leadership Style and Employee Performance
The findings revealed that leaders instil pride in other employees for being associated and
display a sense of pride and confidence in my work ethic and they also go beyond their own
self-interest for the benefit of the employees. This concurs with the findings of Burns (1978)
who noted that ttransformational leaders likely foster competence need satisfaction by
providing challenges while also showing confidence in and enhancing followers’ abilities
through coaching and role modeling. Magasi, (2021) notes that leaders in any section or
department in an organization need to empower employees and foster the learning, creativity,
and innovation environment as the preconditions for enhanced employees’ performance. It is
further supported by Kimani (2021) who argued that transformational leadership encourages
loyal followers who give results. Leaders must be encouraged to use this management style.
Leaders specify the importance of having a strong sense of purpose for others and that they
emphasize the importance of having a collective sense of vision and mission. This is further
echoed by the findings of Bolkan et al. (2011), who argued that team spirit is aroused. Kimani
(2012) adds to this by saying that leaders should promote team work and be ready and willing
to step in for one another where one is not able to participate so that the gap is not noticed by
customers. Enthusiasm and optimism are displayed; leaders get followers involved in
envisioning attractive future states. This is supported by Rouche et al. (1989) who established
that transformational leaders work with their employees and encourage their followers by
influencing their beliefs, values, attitudes and behaviour. Further, Bolkan et al. (2011), noted
that whenever team spirit is aroused, enthusiasm and optimism are displayed; leaders get
followers involved in envisioning attractive future states; leaders create clearly communicated
expectations that followers want to meet and demonstrate commitment to goals and the shared
vision.
Transformational leaders motivate their followers in such a way that it goes beyond the usual
rewards and monetary exchanges. This is supported by Bolkan et al. (2011) who noted that by
using inspiration, transformational leaders’ express confidence in followers and their shared
vision. Through the content of this vision and behavior that is consistent with the vision,
inspirational leaders energize followers to exert extra effort in challenging situations. Bolkan
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et al. (2011) noted that through this leadership style, followers are encouraged to try new
approaches, and their ideas are not criticized because of their differences from the leaders’ ideas.
Further, Ayiro (2014) argued that transformational leaders both encourage and motivate their
followers to be innovative and analytical which promotes follower initiative and liberty,
independence in tackling issues, and active thinking. These leaders create clearly communicated
expectations that followers want to meet and demonstrate commitment to goals and the shared
vision. Transformational leaders express confidence in followers and their shared vision. Through
the content of this vision and behaviour that is consistent with the vision, inspirational leaders
energize followers to exert extra effort in challenging situations. This is in line with the findings
of Bass and Riggio (2010) who noted that followers are treated individually to raise their levels of
maturity and to enhance effective ways of addressing their goals and challenge. In this leadership
dimension, a two-way exchange in communication is encouraged, and management by walking
around workspace is often practiced.
The findings showed that leaders express confidence and encourage employees to achieve their own
individual goals and they examine critical assumptions made to establish whether they are
appropriate. This is in line with the recommendations of Hater and Bass (1988) who noted that
transformational leaders are likely to foster competence need satisfaction by providing challenges
while also showing confidence in and enhancing followers’ abilities through coaching and role
modeling. This is affirmed by Rouche et al. (1989) who noted that transformational leaders work
with their employees and encourage their followers by influencing their beliefs, values, attitudes and
behaviour. Such leaders suggest new ways of how assignments can be completed and further they
seek different perspectives when solving problems. Leadership spends time coaching and mentoring
other employees and they consider an individual as having different needs, abilities, and aspirations
in the team. Tajasom et.al, (2015) noted that in transformational leadership styles have given
evidence that when a leader employs transformational leadership style, it results in the emotional
attachment of the followers or employees towards the leader. The findings are supported by Ayiro
(2014), who argued that leaders with this trait stimulate and encourage creativity in their followers.
When the leader arouses followers to think in new ways and emphasizes problem solving and the
use of reasoning before acting. Transformational leaders both encourage and motivate their
followers to be innovative and analytical which promotes follower initiative and liberty,
independence in tackling issues, and active thinking (Bolkan et al., 2011). Followers and colleagues
are developed to successively higher levels of potential. Individual consideration is practiced when
new learning opportunities are created along with a
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supportive climate. Sosik and Jung (2010) noted that inspirational leaders energize followers to
exert extra effort in challenging situations besides championing collective action and team
synergy. Individual differences in terms of needs and desires are recognized. In this leadership
dimension, a two-way exchange in communication is encouraged, and management by walking
around workspace is often practiced.
The findings showed that that transformational leadership style is positively correlated to
employee performance. This is supported by Bolkan et al. (2011), who noted that
transformational leaders both encourage and motivate their followers to be innovative and
analytical which promotes follower initiative and liberty, independence in tackling issues, and
active thinking. The study established that coefficient of correlation R was 0.806 an indication
of strong positive correlation with the study variable. The study further established that adjusted
R2 was 0.647 which translates to 64.7%. Therefore, 64.7% changes in employee performance
are caused by transformational leadership style in member associations. The findings are
supported by Khan et al. (2020) who they explored how various dimensions of leadership style
are being used to measure organizational effectiveness. The results confirmed that the five
dimensions of transformational leaders and overall transformational leadership style
significantly affect the employee’s job satisfaction, whereas the moderating effect of the
organizational learning culture on any of the said relationships was found insignificant.
The findings are supported further by Donkor et al. (2021) investigated the psychological
mechanisms that cause the influence of transformational and transactional leadership on
employee performance. The results indicate that organizational commitment positively
moderates transformational leadership while transactional leadership does not. We realized that
when transformational leadership is high, organizational commitment goes up, thereby
increasing employee performance. Further Kimani, (2021) established the influence of
transformational leadership styles on performance. The findings denote a positive relationship
between performance and transformational leadership style. Moreover, responsive and
supportive transformational leadership behavior has a positive impact on organizational growth.
The study recommends that leaders need to adopt transformative leadership to achieve
organizational performance.
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5.3.2 Transactional Leadership Style and Employee Performance
The results showed that leaders express satisfaction when employees meet their goals and
expectations. The same sentiments were echoed by Yulk (2007) who noted that ttransactional
leaders‟ focus is to maintain the status quo and they are oriented to enhance the present way of
doing things. Transactional leadership involves two major dimensions namely task orientation
and people orientation (Bass and Avolio, 2003). Nevertheless, it is very difficult to find fully
task oriented or people-oriented leaders. Instead, we find leaders with a combination of both
characteristics. Leadership discusses in specific terms who is responsible for achieving
performance targets and they make it clear what one can expect to receive when performance
goals are achieved. This conforms to Yulk (2007) who asserted that transactional leadership
style is one leadership style that emphasizes on transaction between leaders and subordinates.
Leaders provide others with assistance in exchange for their efforts and that they direct their
attention toward failures to improve on their standards (Brahimet al., 2015).
The findings showed that leaders keep track of all mistakes whether mine or that of other
employees and they focus attention on irregularities, mistakes, exceptions, and deviations from
standards. Leaders concentrate their full attention on dealing with mistakes, complaints, and
failures. Rowold (2014) asserts that the leader holds the employees accountable regardless of
resource availability or competency. The transactional leader develops a vision, sells the vision
to the employees, and leads the way to the accomplishment of that vision Success is determined
by the leader having enough power and strength to have the employees perform the duties
required of them. Leaders do not intervene in organizational issues until they become serious
and that they avoid getting involved when important issues arise regarding employees. Leaders
avoid making decisions and responding to urgent questions and finally they delay making
important decisions when the need arises. The findings are in agreement with that of
Kuppelwieser (2011) who reported that the transactional leaders are mostly concerned with
upholding of the status quo‖ for their respective organizations. Transactional leaders have been
identified to inaugurate routine requirements and ascertain they are achieved within a given
time frame, limiting the contentment of workers and fashion low amounts of employee
obligation and satisfaction. This conforms to the findings of Kuppelwieser (2011) who reported
that the transactional leaders are mostly concerned with upholding of the status quo for their
respective organizations.
The results showed that transactional leadership style is positively correlated to employee
performance. The study established that coefficient of correlation R was 0.868 an indication of
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strong positive correlation with the study variable. The study further established that adjusted
R2 was 0.753 which translates to 75.3%. Therefore, 75.3% changes in employee performance
are caused by transactional leadership style in member associations. The findings are supported
by Kabiru, and Bula, (2020) who investigated the influence of transactional leadership styles on
employee performance in selected commercial banks. The study established a positive
significance influence between transactional leadership style on employee performance. The
study concluded that through transactional leadership employees are motivated to become more
productive and efficient team members.
The findings are further supported by Kalsoom et al. (2018 who examined the impact of
transactional leadership and transformational leadership on employee performance. The
findings of the study reveal that transactional leadership has significant relationship with job
performance. However, the study used convenience sampling method which is highly
vulnerable to selection bias. Same to the findings of Asiimwe and Sikalieh (2016) who explored
the relationship between transactional leadership style and SMEs Growth in the Top 100 SMEs
and indicated that transactional leadership style and SMEs growth had a strong positive and
significant correlation (r= 0.702, p =0.007), and a positive and significant relationship.
5.3.3 Participatory Leadership Style and Employee Performance
The findings showed that it is appropriate for leaders to inspire their subordinates, as well as
stimulate their intellect. This is in line with the findings of Sarti (2014) who established that in
participative leadership, the leader boosts its subordinates to express their ideas and suggestions
to enhance organizational productivity. It is proper for subordinates to share ideas and opinions,
as well as partake in decision-making processes. Providing guidance without pressure is the key
to being a good leader and Leaders should constantly communicate and show support to
employees (Yulk, 2014). The employees are given and trusted with appropriate information
regarding company matters affecting the organization. Poor leadership rescinds the human spirit
to work and their level of commitment which is essential to ensure to boost organizational
productivity (Robbins, 2014). A participative environment allows employees to vote, and the
majority obtained influences the course of action. The findings of (Yulk, 2014) revealed that
organizational outcomes as well as human outcome reduces because of poor leadership and the
consequences come out as employee stress, disenchantment, lack of creativity, cynicism high
employee turnover, and low productivity. According to Joashi and Roh (2011), noted four
participative methods which a participative leader may use, they include decision making,
problem solving and team building. Decision making involves the ability for a manager to trust
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their employees to make sound decisions. Most organizations allow for sound decision making
to be done through committee action. Committees are a vital mean of continually gaining inputs
from many employees and committee board members and most organizations have certain
departmental committees that continuously deal with problems facing the organization as well
as employees. This is in line with Strom, et al., (2013) who asserted that participative leadership
is a style comprising of shared decision-making among leaders and group members as well as
the promotion of the interest of each member of the group through the adoption of social equity.
The results of the study showed that employees are given and trusted with appropriate
information regarding company matters affecting the organization and participative leadership
is inappropriate because they are focused on productivity. These findings contradict those of
Belias and Koustelios (2014) who noted that participative leadership is the most effective style
of leadership characterized by increased employee morale, high productivity, and better
contribution from group members. Participative leadership is the most effective style of
leadership characterized by increased employee morale (Hendriks & Karsten, 2014). Leadership
may result in communication failure and uncompleted projects and that leader asks for
information and insights that will improve the quality of their responsibility of their employees.
The results is in agreement with that of Clark, (2013) who noted that many people like working
in a leadership structure that promotes thoughtful discussions and collaborations. The reality is
that most organizations, if not all, lend themselves to democratic leadership style. However,
there are groups of people who value less participative style of leadership. For them,
participative leadership is inappropriate because they are focused on productivity. Belias and
Koustelios (2014) assert that participative leadership is the most effective style of leadership
characterized by increased employee morale, high productivity, and better contribution from
group members. It is a style of leadership that is trusted with creative solutions to problems and
better ideas that contribute to organizational growth.
The findings showed that participatory leadership style is positively correlated to employee
performance. The study established that coefficient of correlation R was 0.735 an indication of
strong positive correlation with the study variable. The study further established that adjusted R2
was 0.540 which translates to 54.0%. Therefore, 54.0% changes in employee performance are
caused by participatory leadership style in member associations. The findings are in agreement with
that of Zandi et al. (2019) on the impact of Participative leadership style and employees training on
organizational productivity. The result shown most significant and effective variable is participative
leadership which affects the organizational productivity more. All the variables
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have significant and positive effect on organizational productivity, but participative leadership
is more influential. Further support is the findings of Akpoviroro et al. (2018) who examined
the effect of participative leadership style on employee’s productivity. The research indicates
that exist a positive relationship between participating leadership style and employee’s
productivity. Also, the result shows that participatory leadership style can be used as a
motivational tool for workers.
5.3.4 Autocratic Leadership Style and Employee Performance
The findings showed that leaders go beyond their own self-interest for the benefit of the
employees and those leaders specify the importance of having a strong sense of purpose for
others. Leaders emphasize the importance of having a collective sense of vision and mission.
Leaders concentrate their full attention on dealing with mistakes, complaints, and failure.
Tesone, (2010) noted that most micromanagers are autocrats with a compelling need to control
every activity within their jurisdiction. In the autocratic leadership style, the leaders are the sole
determinants of decisions, and their employees follow. It is a very popular style among leaders
and comes naturally to bring in many benefits, thus many managers start to lead using this style
and try to improve on it when pursuing their own development. The style is used when leaders
inform their employees what they want done and how they want it achieved, without being
advised in return by their subordinates.
The findings showed that leaders do not intervene in organizational issues until they become
serious, and leaders avoid getting involved when important issues arise regarding employees.
Employees are given and trusted with appropriate information regarding company matters
affecting the organization. Participative leadership is inappropriate because they are focused on
productivity and leadership is the most effective style of leadership characterized by increased
employee morale. Lehner, (2014) note that leadership style is often assessed as unpleasant,
dominant, and insensitive. The anti-social skills possessed by the authoritarian leader often led
to resistance among employees because they feel subordinate. The feedback this leader gives to
their employees is often negative, not very constructive and is sometimes accompanied by
anger. It is evident that various theories concerning leadership styles have focused on
authoritarian styles against democratic ones.
The results revealed that autocratic leadership style is positively correlated to employee
performance. The study established that coefficient of correlation R was 0.863 an indication of
strong positive correlation with the study variable. The study further established that adjusted R2
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was 74.3 which translate to 74.3%. Therefore, 74.3% changes in employee performance are
caused by autocratic leadership style in member associations. The findings concur with
Bhargavi and Yaseen (2016) who suggested that the autocratic leadership style has a positive
impact on the organizational performance. This leadership style is more suitable when the
projects are to be completed within provided deadlines. Further Igbaekemen and Odivwri
(2015) also conducted a study on the impact of leadership styles on the performance of the
organizations. The author stated that an autocratic leader is the one who determines the
activities, techniques and policies to the employees and expects the employees to follow the
same. In addition, such leaders do not have much faith on their followers.
The findings disagreed with that of Al Khajeh, (2018) examined the impact of leadership styles
on the organizational performance. The focus was on six major leadership styles -
transformational, transactional, autocratic, charismatic, bureaucratic, and democratic. The
findings showed that charismatic, bureaucratic, and transactional leadership styles have negative
relationship with organizational performance. Transformational, autocratic, and democratic
leadership styles, on the other hand, had a positive relationship with the organizational
performance. Another study that disagreed is that of Chua, Basit, and Hassan, (2020) examined
the impact of leadership style on the employee's performance. The result shows that the
autocratic and democratic leadership style has a positive and significant impact on employee
performance. However, we found that the laissez-fair leadership style has no significant
influence on employee performance. Acccording to Ojelade et al. (2020) in their study which
focused on the impact of autocratic leadership style on job performance of subordinates They
noted that autocratic leadership style, however, shows a significant negative impact on
employee performance. This style of leadership tended to have work groups that were less
productive, and subordinates showed a high degree of dissatisfaction on the job. Therefore,
autocratic leaders tend to limit the performance of subordinates.
5.4 Conclusions
5.4.1 Transformational Leadership Style and Employee Performance
The study concludes that ttransformational leaders foster competence need satisfaction by
providing challenges while also showing confidence in and enhancing followers’ abilities
through coaching and role modeling. Leaders specify the importance of having a strong sense of
purpose for others and that they emphasize the importance of having a collective sense of vision
and mission. In member associations the leaders get followers involved in envisioning attractive
59
future states of their organization, they also create clearly communicated expectations that
followers want to meet and demonstrate commitment to goals and the shared vision.
5.4.2 Transactional Leadership Style and Employee Performance
In conclusions ttransactional leaders focus is to maintain the status quo and they are oriented to
enhance the present way of doing things. Leaders keep track of all mistakes whether mine or that of
other employees and they focus attention on irregularities, mistakes, exceptions, and deviations
from standards. Leaders concentrate their full attention on dealing with mistakes, complaints, and
failures. Transactional leader develops a vision, sells the vision to the employees, and leads the way
to the accomplishment of that vision Success is determined by the leader having enough power and
strength to have the employees perform the duties required of them.
5.4.3 Participatory Leadership Style and Employee Performance
The study concludes that it is proper for subordinates to share ideas and opinions, as well as partake
in decision-making processes. Providing guidance without pressure is the key to being a good
leader. The employees are given and trusted with appropriate information regarding company
matters affecting the organization. Employees noted that participative leadership is the most
effective style of leadership which is characterized by increased employee morale, high
productivity, and better contribution from group members. It is a style of leadership that is trusted
with creative solutions to problems and better ideas that contribute to organizational growth.
5.4.4 Autocratic Leadership Style and Employee Performance
Leaders go beyond their own self-interest for the benefit of the employees and those leaders
specify the importance of having a strong sense of purpose for others. Employees are given and
trusted with appropriate information regarding company matters affecting the organization.
Autocratic leadership style is a very popular style among leaders and comes naturally to bring in
many benefits, thus many managers start to lead using this style and try to improve on it when
pursuing their own development. The style is used when leaders inform their employees what
they want done and how they want it achieved, without being advised in return by their
subordinates.
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5.5 Recommendations
5.5.1 Recommendation for Improvement
5.5.1.1 Transformational Leadership Style and Employee Performance
The study recommends that leaders in any members association must empower employees and
foster the learning, creativity, and innovation environment as the preconditions for enhanced
employees’ performance. Member associations should embrace transformational leadership and
sound policies that will strengthen their position as a fundamental sector in generating human
capital for the country’s developmental and economic needs as well as the development of
training programs in leadership skills and competences in transformational leadership for the
leaders of enterprises.
5.5.1.2 Transactional Leadership Style and Employee Performance
The study recommends that leaders in the member associations should invite staff to engage in
objective setting to discuss what the bank wants their staff to accomplish and offer them a
chance to share their thoughts. Management of member association’s organization should
motivate and influencing subordinates by exchanging reward with a particular performance.
5.5.1.3 Participatory Leadership Style and Employee Performance
The study recommended that every organization should adopt participatory leadership style as it
boosts employee morale and enhance organizational productivity. Participatory leadership style
can be used as a motivational tool for workers and directly influences employee performance.
Organizations use the leadership style that enhances the capabilities and abilities of the people.
5.5.1.4 Autocratic Leadership Style and Employee Performance
It is recommended that leaders in the member associations and managers should combine
various leadership styles in proportions that produce a positive result when administering their
leadership duties. The style is used when leaders inform their employees what they want done
and how they want it achieved, without being advised in return by their subordinates. Leaders
could adopt innovative strategies using suitable leadership style in order to achieve work
performance at the very best level as well as to gain long-term success.
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5.5.2 Recommendation for Further Studies
The study recommends that further studies can be done to determine the relationship between
leadership traits on employee performance of Membership Associations in Kenya. The case
study focused on the influence of leadership styles on employee performance of Membership
Associations. It is therefore recommended that a similar study be replicated in other
organizations.
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