Effective Leadership Style and Organizational Performance

Student: Chizoba Okeke (Project, 2025)
Department of Business Administration
University of Benin, Benin City, Edo State


Abstract

Effective leadership is paramount for organizational success, particularly in today's dynamic and competitive business environment. The increasing demand for innovative and adaptable leaders necessitates a deeper understanding of the impact of different leadership styles on organizational performance. This quantitative study investigates the relationship between four leadership styles (autocratic, democratic, laissez-faire, and transformational) and organizational performance, exploring the underlying mechanisms and contextual factors that influence this relationship. A survey of 350 respondents from the University of Benin (UNIBEN), University of Benin Teaching Hospital (UBTH), Chicken Republic, Nadia Bakery and Stop-to-Shop was conducted, and the data were analyzed using SPSS including Cronbach's alpha, ANOVA analysis, and regression analysis. The results show that all four leadership styles have a significant impact on organizational performance, with transformational leadership emerging as the most significant predictor. Notably, the findings suggest that transformational leaders who foster a culture of innovation, empowerment, and collaboration are more likely to drive organizational success. The study's findings provide valuable insights for organizations seeking to cultivate effective leadership approaches that drive success. This research contributes to the existing body of knowledge on leadership and organizational performance, offering practical implications for leaders, managers, and policymakers. Moreover, the study's results highlight the need for organizations to invest in leadership development programs that focus on building transformational leadership capabilities.

Keywords
effective leadership style organizational performance