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Relationship Between Leadership and Employee Performance

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Published: Thu, 09 Aug 2018

The purpose of the study was to examine the effect of leadership on employee performance considering the five factors of leadership development that are coaching, training and development, empowerment, participation and delegation. Therefore these form the independent variables that are affecting employee performance which is the dependent variable. The hypotheses stated in the study are relating leadership to employee performance considering these five different factors. Since this whole study revolves around the importance of leadership development and its impact on employee performance, the relationship between these variables of leadership with the employee performance have been studied and researched upon. Exploratory research is done and a convenience sampling technique is used. Questionnaires were also circulated and SPSS-14 is used for data analysis. Pearson Correlation and Regression analysis is also performed. The study proved a strong positive relationship between leadership development with employee performance. A manager must possess leadership qualities in order to conform to the performance standards set by the company. All the six hypotheses established are accepted and are positively related to employee performance, with training and development the strongest variable of leadership impacting employee performance.

Vigoda-Gadot, Eran. 2005-2006. Leadership Style, Organizational Politics and Employees’ Performance: An Empirical Examination of Two Competing Models. This study aims to investigate the role of organizational performance as a mediating factor between leadership style and the employees’ performance. Therefore, the independent variable is leadership; the dependent variable is employee performance whereas organizational performance is a mediating variable. Questionnaires were circulated and a survey was taken. A Multifactor Leadership Questionnaire measure was used. Exploratory Factor Analysis and a correlation analysis were also done. The study has six hypotheses. One hypothesis states that transformational and transactional leadership are positively related with in-role performance and OCB (Eran, 2006), another state that transformational leadership will have a stronger relationship with and more influence on formal performance and OCB than transactional leadership (Eran, 2006). Another hypothesis is that perceptions of organizational politics are negatively related to employee’s in-role performance (Eran, 2006). Also, there is a hypothesis that perceptions of organizational politics mediate the relationship between transactional and transformational leadership, on one hand, and in-role performance and OCB on the other (Eran, 2006). It was also tested whether the relationship between leadership and performance was direct or indirect. A positive relationship was found between transformational leadership and performance; however transactional leadership and performance had a negative relationship. Conclusively, organizational politics has been considered an influential mediator between leadership and performance. According to the study, transformational leadership has a more direct positive effect on employees’ performance.

Hayward. A. Brett. (2005). Relationship between Employee Performance, Leadership and Emotional Intelligence in a South African Parastatal Organization. This study was conducted to examine the relationship between leadership, emotional intelligence and the performance of employees. Thus, the two independent variables are leadership and emotional intelligence whereas the dependent variable is employee performance. A sample of 160 leaders and 800 raters was taken and a statistical analysis was done using the Multifactor Leadership Questionnaire measure and the Emotional Competency Profiler. A linear regression was run and a correlation analysis was carried out. Four different hypotheses were formed but two of them are important for my study. First, there is no significant positive linear relationship between employee performance and an emotionally intelligent transactional leader (Brett, 2005) and that there is a significant positive linear relationship between employee performance and an emotionally intelligent transactional leader (Brett, 2005). The second hypothesis states that there is no significant positive linear relationship between employee performance and an emotionally intelligent transformational leader (Brett, 2005) and that there is a significant positive linear relationship between employee performance and an emotionally intelligent transformational leader (Brett, 2005). The results show that there is a significant linear relationship between employee performance and an emotionally intelligent, transactional leader. However, a significant linear relationship between employee performance and an emotionally intelligent transformational leader does not exist and also that there is insufficient evidence to indicate that. This whole study and its findings are, however, contradictory to other studies that have been conducted that show a positive relationship between employee performance and a transformational leader.

A. Oluseyi, Shadare and Hammed, T. Ayo 2009. Influence of Work Motivation, Leadership Effectiveness and Time Management on Employees’ Performance in Some Selected Industries in Ibadan, Oyo State, Nigeria. The purpose of this study was to evaluate the influence of the three independent variables; work motivation, leadership effectiveness and time management, on employee performance that is the dependent variable. A total of 300 staff members were selected through stratified random sampling and the data was collected through Work Motivation Behavior Profile, Leadership Behavior Rating Scale and Time Management Behavior Inventory. A multiple regression was run and correlation matrix was used. The study answers the three basic research questions. First, the relationship is identified between each independent variable and employee performance. Also, the composite and relative effect of each of these variables on employee performance is analyzed. The results show that each of the three independent variables have a positive and significant impact on employee performance, with leadership effectiveness showing the strongest correlation, followed by work motivation. Therefore leadership plays a vital role in enhancing the performance of the employees.

Sribenjachot, Suteera. 2007. Impact of Leadership Style on Follower Performance in Direct Selling Industry in Thailand. This study inspects the impact that transactional and transformational leadership has on performance. Both leadership styles have different effects on performance. Performance is the dependent variable which is influenced by the leadership style which is the independent variable. Another variable is defined as ‘leader outcome’ that is influenced by the leadership styles and impacts performance. A survey research design of Multifactor Leadership Questionnaire (MLQ) was used. The date was collected through MLQ-5X. Path analysis was performed and a statistical program known as ‘Analysis of Moment Structure’ was used. Several hypotheses were formed; transformational leadership has no effect on follower performance (Suteera, 2007), transactional leadership has no effect on follower performance (Suteera, 2007), transformational leadership has no effect on leader outcome (Suteera, 2007), transactional leadership has no effect on leader outcome (Suteera, 2007) and leader outcomes have no effect on follower performance (Suteera, 2007). The results show a negative relationship between transactional leadership and performance, and no relationship between transformational leadership and performance. Both leadership styles have a positive impact on leader outcome, and that outcome affects the performance of the followers or the employees.

Amran G. Tiena and Kusbramayanti, Putri. 2007. Leadership and Organizational Culture Relationship Analysis on Job Performance and Satisfaction using SEM (Structural Equation Modeling) at Pt. Carita Boat Indonesia. This study aims to examine the direct influence of leadership and organizational culture on job performance and its indirect impact on job satisfaction. Also, it studies the impact of job performance on job satisfaction. Therefore, all these elements of the study form the basic variables. A survey was taken and data was collected through questionnaires. A sample of 100 workers was taken. Structural Equation Modeling was used for the analysis of the data. The study has four hypotheses. The quality of employee job performance is positively influenced by leader-member relations (Tiena and Putri, 2007). The quality of employees’ job performance is positively influenced by organizational culture (Tiena and Putri, 2007). The quality of working satisfaction is positively influenced by performance (Tiena and Putri, 2007). The results show that leadership has a positive influence on the quality of performance and that in turn has a positive effect on work satisfaction. Leadership also has an impact on work satisfaction and it motivates an employee. The leader-member relationship influences both leadership style and employee job performance.

Goh Yuan Sheng Victor, Geoffrey N. Soutar. 2005. The Role of Ethical Behaviors in the Relations between Leadership Styles and Job Performance. This study relates the three elements of leadership styles, ethical behaviors and job performance. The two leadership styles, transformational and transactional, are discussed and their relationship with performance is studied. Ethical behaviors that include deontology and teleological ethics are also examined. This article reviews how the leaders use these ethical values and form judgements. Therefore these ethical values play a mediating role in forming the relationship between leadership (independent variable) and employee performance (dependent variable). The measures used were the Multifactor Leadership Questionnaire, Role-Based Performance Scale and Analysis of Moment Structure. A path analysis was performed and a variance-covariance matrix was used. The study has six hypotheses. Transformational leadership is positively associated with employee’s job performance (Soutar and Victor, 2005). Transactional leadership is positively associated with employee’s job performance (Soutar and Victor, 2005). Transformational leadership is positively associated with Deontological ethical approach (Soutar and Victor, 2005). Transactional leadership is positively associated with Teleological ethical approach (Soutar and Victor, 2005). Deontological ethical approach will mediate the relation between Transformational Leadership and employees’ job performance (Soutar and Victor, 2005). Teleological ethical approach will mediate the relation between Transactional Leadership and employees’ job performance (Soutar and Victor, 2005). The results of the study show that ethics are a defining element of leadership. Leaders must be ethically responsible and this ethical behavior is an important mediating factor between leadership styles and performance of the employees.

Mahmmod A. Bodla and Hussain , Ghulam. 2010. Need for Leadership: Empirical Evidence from Pakistan. This study was conducted to focus on the moderating role of the need for leadership on the relationship between leadership and the subordinates’ outcomes or employees’ performance. Thus leadership and its characteristics are once again the independent variable, with subordinates’ outcomes and employees’ performance being the dependent variables. Need for leadership is the moderating variable between the two. The followers’ need for leadership is determined and based on that a particular leadership style is adopted, which results in required performance by the employees. Various leadership characteristics are defined and their relationship studies. A sample of banking officers was used from 550 different branches of banks and questionnaires were distributed for the collection of data. A statistical analysis was performed using the multiple regression. There was one main hypothesis of the study; need for leadership will moderate the relationship between leadership characteristics and subordinates work outcomes (Bodla and Ghulam, 2010). The results show that need for leadership is important and it must be understood before implementing any leadership practices. On various grounds, the need for leadership has been considered as a substitute of the relationship between leadership and performance.

Dr. Mohammed S. Chowdhury and Nurul A. Mohammed. 2000. Relative Importance of Employee Values, Attitudes and Leadership Behaviors in Employee Motivation. An Empirical Investigation. Employee motivation is one factor that influences the performance of the employees. That motivation is derived from various other factors. This study is therefore conducted to look at the importance that those factors such as values, attitudes and leadership behavior have in influencing employee work motivation and performance. Intrinsic and extrinsic motivation is defined and various styles of leadership are considered. Employee motivation is therefore the dependent variable and the independent variables are employee values, attitudes and leadership behavior. The data was collected through questionnaires constituting a sample of 140 employees. Statistical analysis was performed and a regression was run. Various techniques were used to measure the different variables. The study has four hypotheses. The greater the extent to which the key values are perceived to exist in the organization, the greater will be the employees’ intrinsic motivation (Chowdhury and Mohammed, 2000). The greater the extent to which key job attitudes are perceived to exist in the organizations, the greater will be the employees’ intrinsic motivation (Chowdhury and Mohammed, 2000). The greater the extent to which positive achievement motivation behavior of the leader is perceived to exist in the organization, the greater the job satisfaction and extrinsic motivation (Chowdhury and Mohammed, 2000).The greater the extent to which arbitrary and punitive behavior is perceived to exist in the organization, the greater the job dissatisfaction and de-motivation of the employees (Chowdhury and Mohammed, 2000). The study concludes that the values and attitudes of employees influence the intrinsic motivation of employees while leadership behavior affects the extrinsic motivation of employees.

Cyril H. Ponnu and Tennakoon Girindra. 2009. The Association between Ethical Leadership and Employee Outcomes – the Malaysian Case. This research was carried out in order to determine the association between ethical leadership behavior and employee outcomes. It has considered two basic outcomes, that of organizational commitment and trust in leaders. These factors eventually affect the work performance of the employees. The independent variable is the ethical leadership behavior whereas employee organizational commitment and employees’ trust in leaders are the dependent variables. A sample of 172 managerial employees was taken. The different measures used were the Ethical Leadership Scale, Organizational Commitment Questionnaire and the Trust Scale. A correlation analysis was done and the data was also analyzed using SPSS version 14.0. the study has two hypotheses. There is a significant relationship between ethical leadership behavior and employee’s organizational commitment (Ponnu and Girindra, 2009). Ethical leadership behavior is positively associated with employees’ trust in leaders (Ponnu and Girindra, 2009). The first hypothesis was held true. There was a significant and a medium positive relationship between the two variables. The second hypothesis was also held true as the two variables showed a strong positive relationship. Therefore, ethical leadership has a positive effect on both organizational commitment of employees and their trust in leaders. Hence, it can also be concluded that these employees will eventually perform better and work towards achieving the goals of the organization.


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