UNIVERSITY OF SOUTH WALES
Masters of Business Administration
Research Methods (R-23682-2243191-9404)
Tutor: Dr. Bashkim Isufi
SUMMATIVE ASSESSMENT 1
Leadership Style and its Impact on Organizational Performance
Augustina Mary Akintolu
Student ID: R1701D2243191
8th January 2022
2
Abstract
Most organizations exist to make a profit and sustain their existence among competitors because
of their employee’s performances and their leaders. While investors and business owners crave
returns on their investment and sustainability of the organization, both the tangible and intangible
assets, as well as its leaders, contribute to the factor that ensures continuity. The style of
leadership practices by leaders of an organization influences the performance and growth of a
business. The objective of this study was to examine the leadership style of Bridge clinic and its
impact on its organizational performance. Three leadership styles, transformational,
transactional, and laissez-faire style of leadership were evaluated to measure organizational
performance. A structured Multifactor questionnaire was designed for the research and the
quantitative analysis method was adopted from the data collected. 41 questionnaires were
received out of which 34 were correctly filled. SPSS was applied to evaluate the result,
hypotheses were assessed using linear regression and Pearson correlation at 0.01 and 0.05 alpha
level of significance and findings review that transformational leadership style is present in the
structure of Bridge Clinic and closely followed by transactional style of leadership that is seen in
current and expanding businesses. A Laissez-Faire leadership style may be required in some
instances and can only be for a limited period. The suggestion from the study is that
organizations should adopt a more transformational style of leadership as this has a considerable
impact on the performance of an organization.
Keywords: Leadership style, transformational leadership, transactional leadership, laissez-faire
leadership, organizational/employee’s performance, bridge clinic
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Table of Contents
Abstract…………………………………………………………………………………...2
Chapter 1.0: Introduction………………………………………………………………..7
1.1. Statement of Research Problem….………...…. …………………………..7
1.2. Research Objectives……………………………………………………….8
1.3. Research Question…………………………………………………………9
1.4. Hypothesis of the Research………………………………………………..9
1.5. The Importance of the Study………………………………………………9
Chapter 2.0: Literature Review…………….…….………………………………….…..11
2.1. Summary………………………………….………………………………..11
2.2. Definitions………..………………………………………………………...11
2.2.1. Leadership and Leadership Style…….…………………………………..11
2.2.2. Transformational Leadership……………………….……………………13
2.2.3. Transactional Leadership………………………………………………...13
Contingent Reward………………………………………………………14
Active Management by Exception……………………………………….14
Passive Management by Exception………………………………………15
2.2.4. Laissez-faire Leadership………………………………………………….15
2.2.5. Organizational Performance………………………………………………15
2.3. Theoretical Framework……………………………………………………..16
Chapter 3.0: Research Methodology…………………... ………………………………...19
3.1. Introduction ……………………………………….…..................................19
3.2. Research Design…………………………………………………………….19
3.3. Population of the Study…………... ………………………………………..19
3.4. Sample Size and Sampling Techniques ……………………..…………..…20
3.5. Variables and Measurement Techniques …………...……………………...20
3.6. Questionnaire Design………………………………………………………20
3.7. Ethical Factors………………………………………………………...……20
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Chapter 4.0: Analysis and Finding………………………………...................................21
4.1. Introduction………………………………………………………………..21
4.2. Data………………………………………………………………………..21
4.2.1. Distribution by Age……………………………………………………...21
4.2.2. Distribution by Gender………………………………………………….22
4.2.3. Distribution by Length of Service……………………………………….22
4.2.4. Distribution by Department……………………………………………...23
4.2. Multiple Regression Analysis……………………………………………..23
Chapter 5.0: Conclusion and Recommendation….……....................................................27
References ……………………………………………………………………………….28
Appendix………………………………………………………………………………….32
Research Questionnaires………………………………………………………………....33
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List of Figures
Fig. 1. The key Elements of Leadership…………………………………………12
Fig. 2. Framework……………………………………………………………….18
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List of Tables
Table 4.1. Data…………………………………………………………………..21
Table 4.2. Distribution by Age………………………………………………….21
Table 4.3. Distribution by Gender………………………………………………22
Table 4.4. Distribution by Length of Service…………………………………....22
Table 4.5. Department of Respondents…………………………………………23
Table 4.6. Regression Model Summary…………………………………………24
Table 4.7. Anova…………………………………………………………………24
Table 4.8. Coefficients……………………………………………………………24
Table 4.9. Alpha…………………………………………………………………..25
Table 4.10. Correlations…………………………………………………………..25
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Chapter One
1.0. Introduction
The name leadership has been used on different people irrespective of the role. It can be
someone who holds a government post, a religious body, or a business leader. The coordination
of every partner or team member of an organization to achieve progressing growth as a result of
uniformity of objective is the responsibility of the leader. Leaders exist to improve harmony,
give strength, and encourage prosperity among members of a community. The leader promotes
cooperation among members; takes responsibility for both success and failures then gives
commendation well deserved to team members.
In the business world of today, every organization, aspire to remain competitive among its peers,
and with the help of leaders who understand the concept of leadership the business will be able
to withstand the wave. These leaders are the manager or supervisors of the business organization
who provide directives and support towards achieving organizational objectives.
1.1. Statement of Research Problem
The importance of leaders in every organization cannot be over-emphasized as they contribute to
the success of the most significant assets (people) of every organization; “the main drivers of
every organization are the employees, they give life to the organizations and provide goals”
(Shafie et al., 2013). Jaramilo et al., (2005) explained that organizations encounter various
objections to strive while the competitive environment of these present-day requires a wellconstructed blueprint to achieve an improved organizational performance to remain competitive.
Like notable fertility clinics, Bridge Clinic has grown from a single clinic to have two more
branches in Abuja and Port-Harcourt, and a second clinic in Lagos. While also still striving to
remain the best in the field of fertility medicine. The researcher sought to understand the
continuous decline in the performance of its employees. The leadership style of an organization
influences every employee irrespective of the level of the employee. In the past two years, just a
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few staff of Bridge Clinic got extra pay for performance from meeting the annual target of the
organization.
The performance of employees falls largely on the leadership of every organization. Employee
performance is the accomplishing of assigned tasks or duties; contribution to team success that
translates to organizational performance is visible through the leadership style. In other words, a
leader carefully chooses to coach or train followers with different skills to carry out willingly and
with eagerness the objectives of the organization (Winton and Patterson, 2006).
Organizational objectives are achievable when there is the availability of all resources like
people, tangible asset, data, and finance that makes up an organization.
In the same vail, organizational performance is the combination of efficiently using all available
resources of the organization to achieve its objectives. In other words, to maximize profit and
remain competitive in the market. A leader provides a conducive environment as well as
formulate a plan directed to achieving the objectives of the organization that improves
organizational performance. These performances are then measured using financial and nonfinancial Indicators, client satisfaction surveys, and market share to quantify performance.
The justifiability and efficiency of leadership on the performance of an organization can be
observed and studied brought forward by scholars in the past but, some other researchers believe
that there is no relevance on the impact of leadership and organizational performance. There
exist disparity and unresolved questions that made the researcher examine the effect of
leadership styles on organizational performance.
1.2. Research Objective
This study objective is to evaluate the impact of the three main leadership styles on
organizational performance in the case of Bridge Clinic and its staff. The specific objectives
examined in this study are as follow:
(i) To assess the impact of transformational leadership on the performance of the staff in the
clinic
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(ii) To assess the impact of transactional leadership on the performance of the staff in the clinic
(iii) To assess the impact of laissez-faire leadership on the performance of the staff in the clinic
(iv) To assess the relationship of leadership style and organizational performance
1.3. The Research Questions
To achieve the objectives of these studies, the following research questions need to be answered:
(i) In what way does transformational leadership style impact the performance of employees of
Bridge Clinic?
(ii) In what way does transactional leadership style impact the performance of employees of
Bridge Clinic?
(iii) In what way does laissez-faire leadership style impact the performance of employees of
Bridge Clinic?
(iv) In what way do leadership styles influence organizational performance?
1.4. Hypothesis of the Research Work
H1: There is a significant positive relationship between organizational performance and the
transformational style of leadership.
H2: There is a positive relationship between organizational performance and the transactional
style of leadership.
H3: There is no significant relationship between organizational performance and the laissez-faire
style of leadership.
H4: There is a positive relationship between leadership style and organizational performance.
1.5. The Importance of the Study
The study will benefit researchers and students in the future in understanding the impact of the
various leadership styles and their influence on organizational performance. In addition, the
findings from the study will help the management of Bridge Clinic to come up with training
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needs and sessions that will help leaders and leaders in the making to acquire leadership skills
that will impact organizational performance.
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Chapter Two
Literature Review
2.1. Summary
This section of the study reviews literature from previous researchers on the topic and acts as a
guide. The framework for the research was developed using two variables; dependent and
independent variables to achieve its research objectives.
2.2. Definitions
2.2.1. Leadership and Leadership Styles
Different researchers have come up with various definitions of a leader but there is still no one
accepted definition yet. According to Stogdill (1974) “there are almost as many definitions of
leadership as there are persons who have attempted to define the concept”. Leadership is a
distinguishing character or a unique quality a person possesses to dominate another person or a
group of people to obey or act in a purposed situation. Leadership spread across delegating,
assigning responsibility, and authority (Talat et al, 2015). A leader is there to direct, and
influence others like employees to achieve departmental and organizational objectives. Kumar
(2014), explained that “leadership is a process by which a person influences others to accomplish
an objective and directs the organization in a way that makes it more cohesive and coherent”
(P.441).
Binfor et al (2013) describes leadership as a mutual relation between a leader and a follow, that
is not enforced but an agreement with all parties involved. Wang et al (2005) are also in
agreement with the definition of leadership that involves the mutual agreement between both
parties (leader and follower) where there is an exchange of ideas in the relationship to meet
organizational objectives. Thus, the presence of a mutual relationship between the leader and the
follow impacts organizational performance.
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Leadership according to Colley et al (2004), is the organizational structure where the followers
and its resources are coordinated in a way of achieving business objectives. Memon (2014)
affirms that leadership is an act where a person has an influence on the behaviors and thoughts of
others, responsible for directing employees for the organization, being able to view what lies in
the future, and having strategies in place. Lussier and Achua (2009) explained that leadership is a
way of influencing both followers and leaders to accomplish organizational goals. Lussier and
Achuna (2009) in their book described the five primary elements of leadership as illustrated
below
Fig 1. The key Elements of Leadership
Influence
Leaders Follower
Leadership
Change
Organizational
Objectives
People
Source: Adapted from Lussier and Achua (2009) page 7.
Researchers have come up with different leadership styles, and every organization has its
peculiar styles. The transformational leadership style explained by Memon (2014) is an act of
providing a stipulated direction, planning and implementing as well as motivating followers.
Therefore, there is no size fit all type of leadership style for every organization instead, a style
that is considered suitable to achieve organizational performance. Glantz (2002) affirmed that a
leader must at all-time be able to comprehend the circumstances, establish the prerequisite and
identify a leadership style that fits to achieve its organizational performance. Leadership style is
then a combination of all behavior or quality, skills adopted by a leader to influence its followers.
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2.2.2. Transformational Leadership
Over two and a half decades ago, various researches have come to the limelight on
transformational leadership style. According to Buns (1978), the transformational leadership
style is “one or more individuals who engage with others in a way that leaders and follows raise
one another to higher levels of motivation and morality”. Bass 1985, 1996 as cited by Murphy &
Drodge 2004 expressed that transformational leadership is the ability for a leader to motivate its
followers to ascend above individual objectives for the good of the organization. Thus, the
transformational leadership style focuses on the interrelation between leaders and followers
which is completely different from the transactional leadership style.
Transformational leadership style encourages trust among followers, promotes mutual respect,
loyalty and is motivated to do more than expected. Transformational leadership style is more
personal to the follow and leaders and their moral values cannot be negotiated. Bass (1990)
identified four behavioral components of transformational leadership; they are charisma,
intellectual stimulation, inspirational motivation, and individual consideration.
2.2.3. Transactional Leadership
As the name implies, this leadership style accentuates transactions connecting the leader and
subordinate. Transactional leadership focuses on the compliance by the followers to the
instructions of leaders irrespective of the followers' consent or passion for the job. House and
Aditya (1997) affirm that in the transactional leadership style, leaders inspire their subordinates
or employees by providing rewards and giving punishment as the case may be. A transactional
leader focuses solely on the organizational objectives and if those objectives are well understood
by the employees while all likely impediments to the objectives are eliminated.
The transactional style of leadership comprises constructive and corrective behaviors of
members where employees are motivated based on their interests. Constructive behavior of the
transactional leadership style takes the form of contingent reward, while corrective behavior
takes the form of management by exception (active) and management by exception (passive)
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(Bass 1999). Therefore, transactional leadership management by exception is either passive or
active. Active management by exception involves putting standards in place for effective
implementation and compliance.
Transactional leadership style can affect performance either positively or negatively since
leaders motivate employees and influence through the exchange of rewards for performance.
Leaders in transactional leadership reward when employees deliver on duties or agreements and
punish when unable to deliver. In other words, this leadership style entails constant supervision
and monitoring for nonconformance and necessary correction when an error occurs. The contrast
between passive and active management by exception depends solely on the involvement of the
leader. In management by exception or passive, the leader gets involved when there is a problem
in the process and not when the process is running smoothly. While in an active form of
leadership, the leader is constantly checking and monitoring the performance of its followers and
employees to take charge of any nonconformance and make necessary correction as the process
continue.
Contingent Reward
This form of reward is based on an agreement between the leader and the employee, and consent
is agreed upon to deliver on the organizational objectives before the reward is granted. This
agreement clearly outlines all objectives expected and the reward obtainable when objectives are
accomplished.
Active Management by Exception
The leader here constantly checkmates on the followers during the process to make sure
employees are working to deliver on the organizational objectives while nonconformance attracts
punishment.
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Passive Management by Exception
This leader only is involved when a problem comes up due to no defined standard or process
stipulated. This form of management has no laydown agreement between the leader and the
employee.
2.2.4. Laissez Faire Leadership
The name Laissez-faire is a French word that means, “Let things go their way”. Laissez-faire
leadership as explained by Asare (2012), states that leaders assign responsibility to their
subordinates to make the decision and take control of all processes, actions, and achievements. A
laissez-faire leader states goals expected to the followers, they are allowed to accomplish these
objectives with their knowledge and skills while the leader expects to provide necessary
resources to achieve these objectives (Unsar, 2014). This leader makes little or no intervention in
the process of its subordinate and avoids taking responsibility.
Nahavandi (2000) states that a laisser faire leader is there to give instructions only and leave the
directing to the employees thus, employees become unorganized and discouraged which leads to
low productivity in the workplace. This type of leadership harms the organizational objectives
has important decisions are left to the subordinate. Laisser faire leadership is referred to as nondirectional leadership, where the leader has complete trust in their subordinate believing they can
utilize their experience and skills in getting the work done.
2.2.5. Organizational Performance
Organizational performances include the result or output of an organization surpassing the set
target or objectives. Koontz & Donnell (1993) explained that organizational performance is the
accomplishment of set objectives from the development of effective strategies for growth and
development, providing quality goods and services, increase in the market share, and profit
maximization and market retention. In addition, measurement of performance can include net
profit, revenue, and the organization's past performance. This performance is measured either
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objectively through actual numbers or subjectively through organizational perception (Pizam &
Ellis, 1999).
Understanding the impact of organizational performance in this modern fiercely competitive era
is essential since the majority of researchers have concluded that leadership is also a prerequisite
for an organization to remain competitive. Thus, effective leadership is a prerequisite for the
development of management as a tool for a competitive organization to remain market leader and
performance (Avolio, 1999; Lado, Boyd and Wright, 1992; Rowe, 2001). The requirement of
tangible resources such as land and capital and intangible resources such as information and
employees by an organization for effective performance and profit maximize in this present day
is essential.
A transformational leader is responsible for the provision of vision for the organization as well as
for motivating employees to achieve challenging goals that result in an improved profit, while
transactional leadership subjects rewards and incentives to the meeting of organizational
objectives. Organizational performance, therefore, is a survival and profitability game in every
organization. The team leader plays an important role in effective organizational performance as
they are in charge of the creation of a learning environment for their subordinate and encourage a
competitive culture in the organization to promote collaboration among members to improve
profitability (Guzzo and Dickson, 1996).
Darcy and Kleinder (1991), Hennessey (1998), and Saari et al (1988) all affirmed that the
constant change in process and from the extraneous organization could be made up for through
training and development of leaders to acquire new skills to withstand the frequent challenges of
a competitive organization. Based on the study and recommendations by various researchers, it is
presumed that there is a correlation between leadership and organizational performance.
2.3. Theoretical Framework
Organizational leaders always put in place a vision and mission for their business and envisage
the future of the organization. The goals and objectives of the organization are carved from the
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vision and mission statement, thereafter leaders select teams that undergo training and
development, to achieve the organizational objectives. The measurement of these goals and
objectives achieved is referred to as organizational performance. Organizational performance is
the effective ways the strategies put in place by the leaders to achieve the objectives of the
organization were utilized. Apart from the well-planned vision and mission of an organization,
the leadership style of a leader plays a vital role in organizational performance.
Transformational, transactional, and laissez-faire styles are one of the most practice styles of
leadership in organizations. Transformational leaders have visions for the organization and they
put in place tactical plans for the continuous growth of the organization, communicate or share
ideas on the objectives, inspire members, continuous follow-up for engagement, and
perseverance (McShane and Von Glinow, 2000). Givens (2008) affirmed that studies have
reviewed followers of transformational leadership records a high-rise in motivation among
members and job satisfaction. There is an existence of trust and confidence between leaders and
followers in transformational leadership, which also motivates employees to improve
organizational performance.
Transactional leadership is quite different from transformational leadership, this leadership style
attaches rewards to the achievement of organizational performance. Leaders here hope for
compliance by followers to process stipulated in exchange for rewards without giving
motivation. Boehnke et al (2003) state that transactional leaders only focus on having employees
deliver on the goals and objectives of the organization. This leadership style is more effective on
a short-term project and not a long-term goal.
Organizational performance is the output of an organization’s goals and objectives by the
employees. According to Brynjolfson (1993), Atkinson and Brown (2001),
confirmed that organizational performance is important in the manufacturing and service
industry. Stafford & Miles (2013) states that the ability of an organization to achieve its vision
and missions is through a strong management and governance board, and a committed team to
achieve its goals and objectives. The research conducted focuses on the impact of leadership
style on organizational performance.
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Fig 2. Conceptual Framework
Independent Variable
Leadership Styles



Transformation
al
Transactional
Leissez Faire
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Dependent
Variable
Organizational
Performance
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Chapter Three
Research Methodology
3.1. Introduction
This study will examine the relationship between the independent variables of the three
leadership styles; transformational, transactional, and laissez-faire styles and the dependent
variables organizational performance. The study evaluates the impact of leadership style on
organizational performance using Bridge clinic as a case study, sample size, and the research
design.
3.2. Research Design
The research work is focused on the employees of Bridge Clinic to analyze its leadership style
and the impact on organizational performance. Previous studies by various researchers were
reviewed with that relevance were considered for this research purpose. The use of questionnaire
design was used to obtain positive responses from respondents. Bass and Avolio’s 2004
Multifactor Leadership Questionnaire (MLQ) standard instrument utilized for the leadership,
transformational, transactional, and Laissez-Faire outcome. A total of 41 respondents of the staff
were needed to fill the questionnaire rating on a scale 5 point Likert scale where 1 stands for
strongly disagree and 5 stands for strongly agree. All hypotheses assumed were assessed at 0.01
and 0.05 alpha levels.
3.3. Population of the Study
The research was carried out among the doctors, nurses, embryologists, client relations, and the
finance team of Bridge Clinic who are also part of the leadership and decision-making team in
the three locations.
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3.4. Sample Size and Sampling Techniques
A sample size of 41 employees filled the questionnaire from five departments of the organization
and all data was retrieved. All retrieved data was then analyzed using statistical package for the
social sciences (SPSS), factor analysis, the means of variables, regression analysis, correlation,
and reliability test was used to evaluate the relationship between the independent and dependent
variables, and results put forward in tables.
3.5. Variables and Measurement Techniques
The questionnaire was composed by the researcher to obtain data on the age, gender, and length
of service of all respondents in the organization. This feedback helps to comprehend the
background of all respondents that help in the evaluation. The independent variables leadership
styles – transformational, transactional, and laissez-faire were evaluated so also the dependent
variable – organizational performance using the 5point Likert scale.
3.6. Questionnaire Design
The questionnaire used for this research was in five sections, where section A introduces the
researcher, section B comprised of statements to obtain information on employee insight on the
leadership style in use by team leads, section C captures the organization performance, section D
looked at the demographic of all respondents and section E appreciated all the respondents.
3.7. Ethical Factors
Consent was obtained from all respondents who participated in the study, and all data received
was treated with the utmost confidentiality.
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Chapter Four
Analysis and Findings
4.0. Introduction
Analysis of the research with the sample demographics and findings of the research to the
objectives are all discussed in this chapter.
4.1. Data
The table below represents the data retrieved from all respondents with questionnaires that were
properly filled and those that were not complete or some questions committed.
Table 4.1. Data
Questionnaire
Frequency
In percentage
Valid Questionnaire
34
19.5
Lost Questionnaire
7
56.10
Total
41
100
Source: Field Data (2021)
4.1.1. Distribution by Age
The table below represents the age distribution of all respondents who participated in the study,
and the analysis review the age bracket of 36 – 45years has the highest of 53.7% (22)
respondents and the least age bracket is 56 – 65years 4.9% (2).
Table 4.2. Distribution by Age
Years
Frequency
In percentage
25 - 35
9
22
36 - 45
22
53.7
46 - 55
8
19.5
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56 - 65
2
4.9
Total
41
100
Source: Field Data (2021)
4.1.2. Distribution by Gender
The table below represents the gender distribution of all respondents who participated in the
study and the analysis review that Bridge Clinic has more females than males in its organization.
The female represents 70.73% (29) while the male represents 29.27% (12). This means that
Bridge clinic has more female employees than males in its organization and is not a fair
representation.
Table 4.3. Distribution by Gender
Sex
Frequency
In percentage
Male
12
29.27
Female
29
70.73
Total
41
100
Source: Field Data (2021)
4.1.3. Distribution by Length of Service
The table below represents the length of service of all respondents at Bridge Clinic and the
analysis review there is staff retention in the organization. Service year 6 – 10years (23) has the
highest frequency in the table and the least in 16 – 20years (2). This confirms that most of the
respondents were in a capacity to give an honest and fair evaluation of the leadership style of the
organization.
Table 4.4. Distribution by Length of Service
Service Year
Frequency
In percentage
2-5
8
19.5
6 - 10
23
56.10
11 - 15
8
19.5
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16 - 20
Total
Source: Field Data (2021)
2
41
4.9
100
4.1.4. Distribution by Department
The table below represents the department of all respondents at Bridge Clinic and the analysis
review more nurses participated in the study with 29.3%(12) and the least was the finance team
with 12.2%(5).
Table 4.5. Department of Respondents
Department
Frequency
In percentage
Doctors
8
19.5
Nurses
12
29.3
Embryologists
8
19.5
Client Relations
8
19.5
Finance
5
12.2
Total
41
100
Source: Field Data (2021)
4.2. Multiple Regression Analysis
The multiple regression analysis was carried out to test the relationship between independent and
dependent variables. The analysis review that transformational leadership style and transactional
leadership style with B = 0.898, p = .000 and B = 0.0468, p = .000 both has positive and obvious
impact on organizational performance. On the other hand, Laissez-faire leadership style with B =
-0.0297, p = .000 has a negative effect on organizational performance. Independent variables are
significant at 0.01 with F = 18.366, p = .000, and the impact on the dependent variables by the
independent variables is seen in the table below.
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Table 4.6. Regression Model Summaryb
Model
R
R Square
Adjusted R Square
Std. Error of the
Estimate
1
.1325a
.1055
.1045
.06822
a. Predictors: (Constant), Transactional , Transformational, and Laissez faire
b. Dependent (Variable): Business Performance
Source: Field Data (2021)
Table 4.7. ANOVA b
Model
Sum of
Df
Mean Square
F
Sig.
18.366
.000a
Square
Regression
9.230
0.5
18.46
Residual
5.361
32
.168
Total
14.591
32.5
c. Predictors: Transactional ,Transformational, and Laissez Faire
d. Dependent (Variable): Business Performance Coefficientsa
Table 4.8. Coefficients a
Model
Unstandardized
Standardized
Coeffici.
Coeffici.
B
Std.
t
Sig.
Beta
Error
Constant
0.187
.0478
Predictors
.090
.007
Transformational .0468
Transactional
-.030
.351
.000
.096
2.060
.000
.009
.0392
.829
.000
.007
-.035
-.726
.000
Laissez Faire
Dependent (Variable): Business Performance
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Table 4.9. Alpha
Variables
Total
Alpha
Numbers
Transformational Leadership
4
.140
Transactional Leadership
3
.086
Laissez faire Leadership
3
.117
Organizational Performance
5
.147
Table 4.10. Correlations
Transformational
Transformational Pearson
Laissez
Org.
faire
Perform.
45**
-.057**
.128**
000
000
000
34
34
33
34
45**
1
-.056
.071**
000
000
1
Transactional
Corr.
Sig. 2tailed
Total
Transactional
Pearson
Corr.
Sig. 2-tailed 000
Laissez Faire
Total
34
34
33
34
Pearson
-.057**
-.056**
1
-.073**
Sig. 2-
000
000
Total
33
33
33
33
.128**
.071**
-.073**
1
Sig. 2-tailed
000
000
.168
Total
34
34
33
Corr.
000
tailed
Org. Performance Pearson
Corr.
** Significant correlation at 0.01
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26
The leadership styles presented in this study show transformational and transactional styles both
have a positive impact on organizational performance while the Laissez-faire style has a negative
impact on the performance of an organization. The transformational style of leadership
encourages employees to operate at their best and organizations that practice this style influence
members in achieving organizational performance. Likewise, organizations that practice
transactional leadership style motivate employees with rewards for good performance and
punishment for not performing. Both leadership styles have a positive impact on organizational
performance.
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Chapter Five
Conclusion and Recommendation
This research was to study the impact of leadership styles on organizational performance in
Bridge Clinic, a fertility clinic in Nigeria. The findings from the study review transformational
leadership style have a significantly positive impact on organizational performance.
Transformational leaders are those who promote change by encouraging employees in their
behavior to the achievement of organizational performance (Trmal, Bustamam, and Mohamed,
2015). Avoilo (1999), McShane, and Von Gilinow (2000) supported this statement, that
transformational leaders have visions towards the growth of their organization, they strategize by
making plans for future development, exchange information with those responsible and through
employee commitments and dedication to achieve organizational objectives.
The research also concluded that transactional leadership style has a positive impact on
organizational performance but is not as significant as transformational leadership style. This
leadership style only motivates its employees with rewards when organizational goals and
objectives are achieved and punished when not achieved. The transactional style of leadership
focus on the task assigned to employees.
Whereas laissez-faire leadership style has a negative impact on organizational performance and
as studied by previous literature online. A laissez-faire leader does not accept responsibility but
rather leaves it to employees without communicating or providing a strategic plan for its
followers thereby leaving leadership to unskilled employees.
The researcher recommended that for organizations to achieve better performance and to remain
competitive in their space they need to adopt a transformational leadership style. An organization
should invest in the training and development of its employees to acquire the necessary skills to
develop leadership competency in its employees.
In addition, the researcher recommends that there should be an excellent relationship between the
management team and its employees. This will give confidence in employees and will motivate
them to do their best towards the achievement of organizational performance.
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APPENDIX I
QUESTIONNAIRE – PART A
Masters of Business Administration
Department of Business Management
University of South Wales
December 6th, 2021
Dear Respondent,
INTRODUCTION
I am a master’s student in the above named institution carrying out a research on “Leadership
style and its impact on organizational performance”. This study is part of module
requirement of partial fulfillment for the award of Masters of Business Administration (MBA) of
the university.
I request you kindly respond to all questions on the survey form as sincere as possible and will
only take a few minute to complete. All information provided will be treated with utmost
confidentiality and, will be used for the purpose of this research only.
Sincerely,
Augustina Akintolu
(Researcher)
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QUESTIONNAIRE PART B
GENERAL INFORMATION
INSTRUCTION: Kindly tick (✓) as appropriate and comment where necessary.
1. Sex: (a). Male [ ]
(b). Female [ ]
2. Age: (a). 25 – 35 [ ] (b). 36 – 45 [ ] (c). 46 – 55 [ ] (d). 56 and above [ ]
3. How long have you worked with Bridge Clinic: (a) 2 - 5 [ ] (b) 6 - 10 [ ] (c) 11 – 15 [ ]
(d) 16 – 20 [ ]
4. What department do you work? (a) Doctors [ ] (b) Nurses [ ] (c) Embryologists [ ]
(d) Client Relations [ ] (e) Finance [ ]
QUESTIONNAIRE PART C
LEADERSHIP STYLE
The statement below are for the purpose of assessing the leadership style of your direct team lead
and supervisor, kindly assess yourself against each statement to indicate your level of agreement
or disagreement where the rating is a range of 1 – 5.
Kindly indicate by ticking (✓) as appropriate where “5 = Strongly Agree (SA)”,
“4 = Agree (A)”, “3 = Neutral (N)”, “2 = Disagree (D)” or “1 = Strongly Disagree (SD)”.
Transformational Leadership
1
2
3
4
5
1
2
3
4
5
1. I have complete trust in my supervisor
2. My supervisor always lead by example
3. My supervisor encourages us to think outside the box
4. My supervisor encourages us to accomplish our goals
Transactional Leadership
1. My supervisor communicate with us on projects
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2. My supervisor is there when problem arises
3. My supervisor do not encourage subordinate to take
initiative
Laissez-faire Leadership
1
2
3
4
5
2
3
4
5
1. My supervisor gives freedom to perform my work
2. My supervisor will rather delegate to avoid difficult task
3. My supervisor allows freedom to appraise myself
QUESTIONNAIRE PART D
ORGANIZATIONAL PERFORMANCE
Organizational Performance
1. Does the organization meets its financial target
2. How do you assess the quality of your job in the
organization
3. Do supervisors delegates task/projects to subordinate
4. How do you rate your productivity
Thank you.
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