Abstract:
The study sough to investigate the effect of leadership style on employee performance at selected
Institutions in Arusha. The study had three specific objectives namely; to identify the leadership
style used in selected Institutions in Arusha, to find out the effects of existing leadership style
towards performance of employees in selected Institutions in Arusha and to explore how negative
effects experienced by employee in selected Institutions in Arusha can be addressed. The study
used case study research design and the mixed approach so as to collect both numerical and
narrative data. The study used simple random and purposive sampling technics. Moreover the
study used interview and questionnaire as data collection methods. Data were collected from 66
respondents from selected Institutions in Arusha, Descriptive statistics such as frequencies and
percentages were used to analyse data. Contigency and Situation theory, Trait and Behaviour
theory also Transformation and Transactional theory is used relate with this study. Findings
revealed that democratic leadership was seen to exist at selected institutions in Arusha The study
further revealed that respondents perceived the type of leadership that exist at selected
institutions as good. The study also indicated that the existing type of leadership affected the
employee’s performance both positively and negatively. Finally the study found that there are
various measures that can be used to address the negative effects caused by the existing type of
leadership. The study concluded that democratic style of leadership was dominantly used at
selected Institutions in Arusha. It was also indicated from the study employees were satisfied with
the leadership style existed at institutions because the leadership style existed promoted
employees performance. Recommendation was made that to in order to solve negative effects of
leadership style existed at selected institutions, leaders should be flexible and should choose the
best style in relation to the nature of employees. The study highlight that there should be regular
training for leaders on how best they can use various leadership styles to enhance employee’s
performance. The study explains that leaders should be flexible enough to change their leadership
styles to fit the needs of the organization
