Review of the Literature: A Global Perspective on the Impact of Leadership Styles on Organizational Performance
Author(s)
Download Full PDF Pages: 09-21 | Views: 214 | Downloads: 66 | DOI: 10.5281/zenodo.7529446
Volume 11 - December 2022 (12)
Abstract
For the reason that it is widely presumed that the effectiveness of a leader has a significant impact on organizational performance, this, has led to heightened research focused on the relationship between leadership and organizational performance. Similarly, the purpose of this study was to investigate the theoretical aspects of this concept, evaluate various leadership styles, and examine evidence regarding the efficacy of leadership styles in optimizing organizational performance. Qualitative Content Analysis was used to analyze relevant journal articles, government publications and books in order to achieve three main goals: (1) exploring the concept of organizational performance in relation to leadership; (2) identifying methods for measuring organizational performance at its core; and (3) evaluating the effects of different leadership styles on organizational performance. The results indicate that the charismatic leadership style is the most effective when compared to other approaches in that it can increase employee morale and productivity, thereby improving overall organizational performance. Correspondingly, the transformational and democratic leadership styles are found to improve organizational performance. Furthermore, it is established that the situational leadership style is effective when it employs either the charismatic, transactional, and or transformational leadership approach. Therefore, this study recommends that leaders ought to: (1) utilise feedback from subordinates to assess their leadership impact; (2) reflect on their leadership journey; (3) use leadership assessment tools to identify their strengths and weaknesses for growth opportunities; and (4) employ leadership styles that maximize employee engagement and productivity preferably the charismatic leadership style.
Keywords
Leadership; Leadership Styles; Leadership Assessment; Organizational Performance
References
i. Adams, B., & Adams, C. (2009). Transformation, Leadership Excellence, vol. 26, no. 2, pp. 14-15.
ii. Adebakin, O. I., & Gbadamusi, E. A. (1996). The practices of organizational leadership. Ibadan. Adeogun printing press.
iii. Amabile, T. M., & Khaire, M. (2008). Creativity and the role of the leader, Harvard business review, vol. 86, no. 10, pp. 100.
iv. Amos, T., Ristow, A., & Staude, G. (1999). Transformational Leadership and Organizational Effectiveness in the Administration of Cricket in South Africa. South African Journal of Business Management, 30, a749.
v. Arnold, H. J., & Feldman, D. C. (1986). Organisational behaviour, new behaviour. New York: McGraw Hill Book Company.
vi. Ayman, R., & Korabik, K. (2010). Leadership, American Psychologist, vol. 65, no. 3, pp. 157-170.
vii. Bass, B., & Avolio, B. J. (1994). Improving Organizational Effectiveness Through Transformational Leadership. London: SAGE Publications.
viii. Bhargavi, S., & Yaseen, A. (2016). Leadership Styles and Organizational Performance. Strategic Management Quarterly, 4(1), pp. 87-117.
ix. Boyatzis R., Goleman. D., & McKee, A. (2002). Primal leadership: Realizing the power of emotional intelligence. Harvard Business School Press.
x. Boulter, J. (2010). Recovery Leadership. Leadership Excellence, vol. 27, no. 1, pp. 13-13.
xi. Brown, T. (2009). Leadership in challenging times. Business Strategy Review, vol. 20, no. 3, pp. 36.
xii. Bryman, A. (1992). Charisma and Leadership in Organizations. Sage, London.
xiii. Cantrell, R. S., Fredendall, L. D., & Laohavichien, T. (2009). The effects of transformational and transactional leadership on quality improvement. Quality Management Journal, vol. 16, no. 2, pp. 7-24.
xiv. Chich-Jen, S., Mei-Ling, T., & Wang, F. J. (2010). Effect of leadership style on organizational performance as viewed from human resource management strategy. African Journal of Business Management, 4(18), pp. 3924-3936.
xv. Choi, S. (2007). The lessons of exemplary models for democratic governance. International Journal of Leadership Studies, 2(3), pp. 243-262.
xvi. Claudia, F. (2022). Comparing Different Leadership Styles. https://study.com /academy/lesson/comparing-different-leadership-styles.html
xvii. Coetzee, M., & Mitonga-Monga, J. (2012). Perceived leadership style and employee participation. African Journal of Business Management, 6(15).
xviii. Courtright, S. H., Oh, I.S., & Wang, G. (2011). Transformational leadership and performance across criteria and levels: A meta-analytic review of 25 years of research. Group & Organization Management, 36(2), pp. 223-270.
xix. Cooke, R. A., Klein, A. S., & Wallis, J. (2013). The impact of leadership styles on organizational culture and firm effectiveness: An empirical study. Journal of Management & Organization, 19(3), pp. 241-254.
xx. Creswell. J.W., & Creswell, J.D. (2017). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches. 4th Edition, Sage, Newbury Park.
xxi. Den H, D. N., Greembaum, R., Folger, R., & Piccolo, R. F. (2010). The Relationship between Ethical Leadership and Core Job Characteristics. Journal of Organizational Behavior, 31, 259-278. https://doi.org/10.1002/job.627
xxii. Dixon, M. L., & Hart, L. K. (2010). The impact of path-goal leadership styles on work group effectiveness and turnover intention. Journal of Managerial Issues, vol. 22, no. 1, pp. 52-69.
xxiii. Eisenbeiss, S., van Knippenberg, D., & Boerner, S. (2008). Transformational leadership and team innovation: Integrating team climate principles. Journal of Applied Psychology, vol. 93, no. 6, pp. 1438.
xxiv. Ejiofor, P. (1989). Foundation of business administration. Onitsha Africa Feb. Publishing Limited. Leadership on organisational performance in Nigeria.374. Published with open access at journalbinet.com EISSN:2412-8279, © 2019 The Authors, Review paper.
xxv. Elenkov, D. S. (2002). Effects of leadership on organizational performance in Russian companies. Journal of Business Research, 55(6), pp. 467-480.
xxvi. Folarin, K. (2021). Leadership Styles, Organizational Performance and Effectiveness among Sub- Saharan African Employees. American Journal of Leadership and Governance, 6(1), 24 - 36. https://doi.org/10.47672/ajlg.743
xxvii. Folan P., Browne, J., & Jagdev, H. (2007). Performance: It’s Meaning and Content for Today’s Business Research, Computers in Industry, vol. 58, no. 7
xxviii. Giri, V. N., & Santra, T. (2010). Effects of job experience, career stage, and hierarchy on leadership style. Singapore Management Review, vol. 32, no. 1, pp. 85-93.
xxix. Gavrea, C., Ilies, L., & Stegerean, R. (2011). Determinants of organizational performance: The case of Romania. Management & Marketing, 6(2), pp. 285-300
xxx. Germano, M. A. (2010). Leadership Style and Organizational Impact. http://alaapa.org/newsletter/2010/06/08/spotlight/
xxxi. Gardner, K. H., & Matviak, I. (2022). Performance Management Shouldn’t Kill Collaboration. https://hbr.org/2022/09/performance-management-shouldnt-kill-collaboration
xxxii. Igbaekemen, G. O., & Odivwri, J. E. (2015). Impact of leadership style on organization performance: A critical literature review. Arabian Journal of Business and Management Review, 5(5), pp. 1-7.
xxxiii. Iqbal, N., Anwar, S., & Haider, N. (2015). Effect of leadership style on employee performance. Arabian Journal of Business and Management Review, 5(5), pp. 1-6
xxxiv. Judge, T. A., & Piccolo, R. F. (2004). Transformational and Transactional Leadership: A Meta-Analytic Test of Their Relative Validity. Journal of Applied Psychology, 89(5), 755–768. https://doi.org/10.1037/0021-9010.89.5.755
xxxv. Lebas, M. J. (1995). Performance Measurement and Performance Management, International Journal of Production, vol. 41, no. 1-3
xxxvi. Messick, D. M., & Kramer, R. M. (2004). The psychology of leadership, New Perspectives and Research. London: Longman Publishing Co.
xxxvii. Muijs, D. (2011). Leadership and motivation, New York: Random House. Retrieved from: https://www.researchgate.net/publication/303758160_Leadership_and_Motivation
xxxviii. Mullins, L. J. (2002). Management and organizational behaviour, (5 th Edition) Britain: Pearson Educational Ltd.
xxxix. Rachin. (2001). Impact of leadership on organization. New Jersey: Prentice Hall Inc.
xl. Stogdill, R. M. (1948). Personal Factors Associated with Leadership: A Survey of the Literature. Reprinted in Bass, B(Eds), Bass, B.M., Stogdill (1990), Handbook of Leadership: Theory. Research and Managerial Applications (3rd Ed), New York: Free Press. J. Psychol., 25: 35-71
xli. Suri, S. (2016). Influence of Leadership Style on Employee Motivation and Performance. International Journal of Research in Management, 5, 65-71.
xlii. Tandoh, V. (2011). Effect of Leadership Behaviours on Employee Performance in Guinness Ghana Breweries Limited. Ashanti: Kwame Nkrumah University of Science and Technology. https://doi.org/10.4102/sajbm.v30i1.749
xliii. Vigoda-Gadot, E. (2012). Leadership style, organizational politics, and employees' performance: An empirical examination of two competing models. American Journal of Business and Management, 36(5), pp. 661- 683.
xliv. Wholey, J. S. (1996). Formative and Summative Evaluation: Related Issues in Performance Measurement, American Journal of Evaluation, vol. 17, no. 2.
xlv. Qiu, J.H. (2008). The Executive Leadership and Performance Management. Taipei: Showwe.
xlvi. Zhu, X. W. (2002). The impacts of leadership, member satisfaction, and teamwork quality on team performance: An example on ERP project team, Taoyuan, Taiwan: National Central University.
Cite this Article: