Abstract:
This study investigated on the impact of leadership styles on the organizational performance
at the National Social Security Funds Regional Headquarters in Arusha City, Tanzania.
Specific Objectives were three, to identify leadership styles employed in managing
organizational performance of NSSF in Arusha headquarter, to establish the employees’
perceptions on the organizational performance of the NSSF in Arusha headquarter and to
establish the effect of leadership styles on the organizational performance of the NSSF in
Arusha headquarter. The study employed the correlational descriptive research design
through which the leadership styles and the organizational performance were described
through descriptive statistics and then a hypothesis was tested through the regression
analysis to establish the impact of leadership styles on the organizational performance. Data
was obtained through a questionnaire to which employees were given to fill. Due to the fact
that the total population constituted a small number, all the 60 employees were involved in the
study by filling the questionnaire. The study established that three leadership styles namely
transformational, transactional and Laissez Faire existed in the organization. The
organizational performance was found to be excellent as the organization accomplished
institutional objectives as planned. Duties were easily accomplished because of laid down
procedures, customers’ needs were met on time, tasks were achieved on time and the
organization functioned smoothly with minimum internal conflicts. There was an existing
positive relationship between the organizational performance and the following leadership
styles: Transformational and Laissez Faire. While transformational leadership accounts for
13.7%, laissez faire leadership accounts for 11.8%. The model explained 25.5% and therefore
it was a significant predictor of the organizational performance. Based on the conclusions of
the study, the researcher recommends that since transformational and laissez faire leadership
are significant predictors for organizational performance, leaders in the organization under
investigation should be encouraged to increase the use of transformational and laissez faire
leadership styles for effective organizational performance to be realized. Since the model
explained for only 25.5% on the role of leadership towards the organizational performance,
there is a need to conduct another study so as to determine other factors that may contribute
toward the organizational performance.