Effect of Leadership Styles on Employees’ Job Performance in Banking Sector

Abstract

ABSTRACT Leadership styles significantly influence employee behavior, motivation, and performance within an organization, shaping the overall work environment and effectiveness of teams. This study assessed effects of leadership styles on employees’ job performance in banking sector. A Case of NMB Kinondoni branch. The following objectives were thus incorporated; to examine the effect of democratic leadership style on employees’ performance at NMB Kinondoni branch, to determine the effect of autocratic leadership style on employees’ performance at NMB Kinondoni branch and to measure the effect of Laissez-faire leadership style on employees’ performance at NMB Kinondoni branch. Mixed research approach was used, whereas a sample size of 60 respondents, including employees at NMB, Kinondoni branch availed themselves for the study. Data collection tools included questionnaires, interview and documentary review. Quantitative data was analysed using mathematical procedures for descriptive statistics, whereas, qualitative data was analysed thematically. The study findings revealed that the effect of democratic leadership style on employees’ performance at NMB Kinondoni branch was informed by employees’ job satisfaction, team collaboration and decision making involvement at an average mean of 4.10, denoting strong agreement with the statement. Also, the findings revealed that the effect of autocratic leadership style on employees’ performance at NMB Kinondoni branch was highly determined by employee motivation and morale, workplace job satisfaction, all which had an average mean of 4.00, which indicate a strong likely event of autocratic leadership not being a priority. The findings further revealed that leizzer-faire leadership style such as employee accountability and initiative, work performance and goal achievement scored mean of 4.1, indicating that lezzer-faire kind of leadership is not common among employees’ performance. Based on these findings, the study recommends that programs should cover key aspects of leadership, including individualized consideration, intellectual stimulation, inspirational motivation, and idealized influence.