Literature Review
The primary duty of leadership is to improve its workforce’s moral character and productivity, which eventually results in an improvement in the organization’s production graph. Leadership is now generally acknowledged and scientifically supported. Organizations consider leadership development as a critical strategy to improve employee performance and obtain additional advantages, such as strategic edge. Inept or careless leaders can destroy a corporation, yet people who climb to positions of power typically commit the same errors and fall into similar traps. Thus, the connection between leadership development and worker performance has drawn much scholarly interest.
The leadership style in use has a significant impact on employee performance. For instance, a study on the effects of leadership styles on worker performance was carried out by Beauty and Aigbogun. The research looked for leadership philosophies that would be appropriate for Turnall Holdings Ltd. in Zimbabwe to achieve this goal (Beauty and Aigbogun, 2022, 301). The paper primarily focused on the effects of transformational, transactional, and laissez-faire leadership styles on employee performance despite the fact that this research also plans to examine authoritarian and participatory leadership. The findings showed that the performance of employees was greatly improved by both transformational and laissez-faire methods (Beauty and Aigbogun, 2022, 301). Leaders must inspire followers to perform to the best of their ability for the success of the business, while simultaneously giving them the freedom to make decisions and carry them out as they see appropriate to increase employee performance. As a result, employees are more motivated to perform well since they feel like a part of the business. This is used in this study to demonstrate the beneficial effects of specific leadership philosophies and to establish the significance of leadership in influencing employee performance. Yet, just one organization, which could have been culturally biased, was subjected to the quantitative technique. This study used a hybrid approach of research with a sizable sample size to fill this gap.
Leadership development directly affects employee performance, which contributes to the achievement of the business as a whole. These results are consistent with Ebrahim Hassan’s research on the influence of leadership philosophies on organizational performance.Ebrahim concentrated on the effects of authoritarian, democratic, charismatic, and bureaucratic leadership styles on organizational performance in addition to the three leadership styles already mentioned (Hassan et al., 2018, 2172). Employee opportunity, a sense of belonging, and participation in decision-making are all vital components of a leadership style. The analysis of the quantitative data obtained showed that there was both a positive and a negative correlation between the organizational performance and the chosen leadership aspects (Hassan et al., 2018, 2172). The goal to have a high turnover rate was stimulated by transactional, charismatic, and bureaucratic leadership. The democratic, transformational, and autocratic leadership styles, however, encouraged the staff to do better than was expected of them. The majority of this is consistent with rising motivation and employee participation in leadership. The study did not, however, examine the variables that influence the application of these leadership models, which are included in the research’s findings.
Further to leadership style, other elements can have an impact on staff performance. They include organizational structure and motivation. These elements go full circle and are heavily influenced by the kind of leadership used. For instance, if leadership enhances organizational structure or motivates employees. Fahmi and Krisna contend that achieving organizational goals in the best and most efficient way possible requires the use of the appropriate approach to maximize performance (Fahmi and Lima Krisna, 2021, 927). It should be noted how important employees are to the business. The organization automatically knows the traits of employees, their decision-making processes, and other aspects that affect their conduct in the workplace by knowing the factors that determine performance. Considering the views of specialists, it can be argued that a company’s primary factor is performance (Fahmi and Lima Krisna, 2021, 927). The study came to the conclusion that while bad employee performance would also have a detrimental effect on the success of the firm, strong employee performance will precede positive outcomes in the business development of the organization.
Organizational structure also has a crucial effect in employee performance since it defines two important criteria without which it would be difficult to assess employee performance. According to a recent research study, leadership and communication channels are these aspects (Saadouli and Al-Khanbashi, 2021, 1446). Employees would not be able to match tasks to supervisor expectations without effective authority channels. This is similar to how employees would be tortured by confusing responsibilities and assignments and inconsistent information flows in the absence of effective communication channels (Saadouli and Al-Khanbashi, 2021, 1446). Consequently, via the definition of roles and tasks, a clear authority structure enhances performance. Yet in order to arrive at the study’s result, Fahmi and Krisna simply paid attention to three factors: motivation, performance, and organizational culture. This research tries to explore other factors including staff participation and attitudes.
Employee performance is greatly influenced by their attitudes. Affective commitment, acceptance of rising performance standards, and competency development are all included in this. Organizations may then use methods that support good employee attitudes in order to improve employee performance. The social exchange theory may be used to assess employee commitment to the organization’s objective in this context. According to the social exchange hypothesis, the organization must offer fair compensation and a positive work environment in exchange for the employees’ faith in the company. Employee return is impacted if there is inadequate organizational engagement in this area. Khoreva offers insights into the fundamental mechanisms through which leadership development methods are translated into desired employee attitudes using this theory as a foundation. The study’s findings demonstrate that companies may anticipate induced commitments from staff members who participate in leadership development activities to accept higher performance standards and to gain pertinent abilities (Khoreva, 2016, 543). This is consistent with research by Sulantara et al. that suggests a favorable relationship between leadership style and organizational commitment and employee performance. The research also acertains that competence influences employee performance favorably (Sulantara et al., 2020, n.p). Thus, leaders provide employees more advantages or respect than burdens or expenses in exchange for the workers’ assistance in achieving the objectives of the company. The study, however, neglects to take into consideration the fact that the connection between employee views and leadership development approaches changes with time. This study examines this evolution by examining the popular leadership philosophies today.
There must be a social connection between leaders and workers in addition to the relationship between leadership development and employee attitudes. Relationships are crucial because they influence the workplace. Employee performance rises in a positive relationship-driven workplace environment, but productivity falls in a toxic workplace setting. Social networks also offer the chance for information to be exchanged. Yet, social capital, respect, and norms, which serve as functional components, substantially influence the extent to which data is shared. The flow of additional knowledge is facilitated by mutual trust between people, whereas norms control and affect the conduct involved in this exchange.
The social capital hypothesis is applicable in this situation. According to this idea, social connections are assets that can promote the growth and social dimension. For instance, a steady workplace environment may foster professional success and the growth of highly prized and productive abilities and output. Consequently, any aspect of a social interaction that promotes reproduction may be referred to as social capital. Swanson et al. developed and tested a model for expatriate general managers based on this theory, embracing the ideas of leader competence, sharing of knowledge, employee performance, and loyalty. The research acknowledged knowledge sharing as a crucial social resource for businesses that boost employee productivity and organizational success (Swanson et al., 2020, 92). The performance of an organization as well as an individual is favorably impacted by social capital.This is consistent with a study that looked at corporate citizenship behavior and employee performance within transformational leadership (Qalati et al., 2022, 1134). The results of the study showed that keeping people on board and keeping them engaged improves organizational performance as well as employee performance.
The social capital theory was also used in this case to demonstrate how the relationship between superiors and subordinates empowers the latter. Then, in accordance with this idea, organizational and transformational leadership was used (Qalati et al., 2022, 1134). This is because these leadership philosophies encourage employees to engage in voluntary tasks, and whether or not employees will partake in voluntary behaviors depends on the relationship between leaders and employees. Results showed that this eventually enhances performance and promotes the growth of enterprises both locally and abroad. Nevertheless, Swanson et al. concentrated on two broad characteristics in order to create a compact model because there are several alternative classifications of leader competencies in earlier studies (Swanson et al., 2020, 92). They include person-related leader capabilities as well as leader competencies linked to the workplace. A leader’s values, drive, temperament, and other individual qualities are referred to as person-focused competencies. Job-related competency refers to a leader’s effectiveness in carrying out the responsibilities assigned to their position. Results indicate that work-related skills are favorably correlated with employee productivity and person-related leadership competencies are positively connected with knowledge sharing (Swanson et al., 2020, 92). The study, however, employed a survey methodology, which prohibits the establishment of cause-and-effect correlations. This study makes an attempt to close this gap by identifying the factors that influence a leader’s personal and professional capabilities and how they affect employee performance in accordance with the social capital theory.
It is advised that moderate autonomy and efficient supervision be implemented at work in order to preserve effective human resources utilization and excellent levels of staff work involvement and performance. Employing managers with strong leadership abilities is advised as a way to improve organizational engagement and performance. These competencies connect to both the individual and the work, as addressed by Swanson et al. The finest leaders have a combination of integrity, delegation skills, communication, self-awareness, thanks, and learning agility. Team members seldom get the chance to suggest ideas, which reduces the need for competent leadership, despite being in the company’s best interests. How leaders make judgments and carry out their jobs reveals their level of competence. These choices mostly relate to the leadership stance they take. The effects of authoritative and laissez-faire leadership styles on worker performance were studied by Ullah et al. The developed hypotheses were that leadership has a positive and substantial effect on staff performance and that leadership has a significantly positive impact on employee job participation (Ullah et al., 2022, 184). Another theory put out was that there is a direct correlation between employee engagement and performance. Only authoritative leadership impacts on employee engagement were revealed by the regression analyses. According to the research, an authoritative leadership style affects the productivity and morale of the workforce (Ullah et al., 2022, 184). Therefore, there is a direct correlation between job participation and job performance at work. Moreso, leadership techniques and team-building exercises frequently improve workplace cooperation. Employee participation will lead to better performance across the board for the whole workforce. Employing managers with strong leadership qualities can help therefore help organizations become more engaged and perform better. The investigation, however, was restricted to simply quantitative information. For more accuracy, this study will use a variety of research techniques.
This study’s main goal is to investigate the connection between employee performance and leadership development. Iskamato et al. conducted a study to examine the connection between leadership and worker performance at an Indonesian manufacturing company. Results showed that a leadership variable correlates to differences in employee performance indicators by 30.5%, with other factors influencing the remaining 69.5% of the variance (Iskamto, 2021, n.p). They include aspects of organizational culture, social capital relationships, and employee motivation, attitudes, and engagement. The resultant t value of 5.339 shows that there is a correlation between leadership and improved employee performance (Iskamto, 2021, n.p). As a result, the earlier study on the subject gives a wide array of data on how employee performance is influenced as well as assistance in identifying potential improvements.
Variables
Several dependent, independent, and moderating factors will be developed for the theoretical framework in order to perform the study. Employee performance is a dependent variable, while leadership development is an independent variable. These two variables were chosen in order to examine their connection, i.e., how the implementation of leadership development will affect employee performance. The techniques that will be used to examine the link between these two variables are also identified. The present research makes it clear that there are factors that have been recognized as influencing the employee’s. As a result, the impact of leadership development on employee performance will be assessed using the independent variables of motivation, employee attitudes, employee engagement, organizational structure, and social capital relationships.
Employee Performance and Motivation
Idha Fahmi confirms that employee performance may be strongly impacted by motivation. Employee performance will improve if the leader can remain devoted to boosting employee motivation at work. As a result, there exists a direct relationship between motivation and employee performance.
Employee Performance and Attitudes
Employee dedication to their goals and competency development are involved in this. According to Khoreva, emotive leadership induces a commitment to accept escalating performance standards (Khoreva, 2016, 543). Employee attitudes therefore have a direct relationship with staff performance.
Employee Performance and Involvement
According to Ullah et al., effective leadership uses strategies like team development. Teamwork among employees improves collaboration at work and, in turn, productivity (Ullah et al., 2022, 183). As a result, there exists a direct relationship between employee performance and involvement.
Performance of employees and organizational culture.
Fahmi and Krisna demonstrate the critical role organizational leadership commitment has in regulating the relationship between workplace culture and worker performance. Employee performance is increased when an organization’s culture is favorable, whereas productivity is decreased when an organization’s culture is poisonous (Fahmi and Lima Krisna, 2021, 927). As a result, there is a direct relationship between employee performance and organizational culture.
Employee Performance and Social Capital Relationship.
According to Swanson et al., social relationships between managers and staff members promote information exchange. This in turn raises employee productivity (Swanson et al., 2020, 92). Thus, there exists a positive relationship between employee performance and social capital relationship.
Reference List
Beauty, M. And Aigbogun, O. (2022). Effects of Leadership Styles on Employee Performance: A Case Study of Turnall Holdings LTD, Harare. International Journal of Academic Research in Business and Social Sciences, 12(1), pp.290-303. DOI:10.6007/IJARBSS/v12-i1/12037.
Fahmi, I. And Lima Krisna, N. (2021). A review literature employee performance model: motivation, leadership style and organizational culture. Dinasti International Journal of Digital Business Management, 2(5), pp.923–934.
Hasan, E., Khajeh, A., Abu, M. And Asaari, H. (2018). Impact of Leadership Styles on Organizational Performance. Journal of Human Resources Management Research, 2018(2166-0018), pp.2166–2184. Doi:10.5171/2018.687849
.Iskamto, D., Srimulatsih, M., Budi, P., Sekolah, A., Ilmu, T., Riau, E., Ghazali, L., Hazimi, N., Foziah, M., Arifin, J. And Talib Bon, A. (2021). Analysis of Relationship between Leadership and Employee Performance at Manufactur Company in Indoenesia. [online] Available at: http://www.ieomsociety.org/singapore2021/papers/593.pdf.
Khoreva, V. (2016). Leadership development practices as drivers of employee attitudes. Journal of Managerial Psychology, 31(2), pp.537–551. Doi:10.1108/jmp-03-2014-0091.
Qalati, S.A., Zafar, Z., Fan, M., Sánchez Limón, M.L. and Khaskheli, M.B. (2022). Employee performance under transformational leadership and organizational citizenship behavior: A mediated model. Heliyon, [online] 8(11), p.e11374. Available at: https://reader.elsevier.com/reader/sd/pii/S2405844022026627?token=5972FD3D39D8C0D6916B008B8F3883B53E08008929C9119764F0D3E666AE4F6E4FFE7B1807519A57E85A21C03DB2F87C&originRegion=eu-west-1&originCreation=20221113232346.
Saadouli, N. And Al-Khanbashi, M.Y.O. (2021). Evaluation of factors affecting employee performance: The case of government employees in Oman. Management Science Letters, pp.1443–1450.
Swanson, E., Kim, S., Lee, S.-M., Yang, J.-J. And Lee, Y.-K. (2020). The effect of leader competencies on knowledge sharing and job performance: Social capital theory. Journal of Hospitality and Tourism Management, 42(1), pp.88–96.
Ullah, M., Alam, W., Khan, Y., Joseph, V., Syed, U., Farooq and Noreen, S. (2022). Role of Leadership in Enhancing Employees Performance: A Case Of Board of Intermediate and Secondary Education, Peshawar. Journal of Contemporary Issues in Business and Government, [online] 28(1), p.2022. Available at: https://www.cibgp.com/article_16747_1ea0e8557ffdeb708ff2b561bfe4405d.pd.
Sulantara, I.M., Mareni, P.K., Ketut Setia Sapta, I. And Suryani, N.K. (2020). The Effect of Leadership Style and Competence on Employee Performance. European Journal of Business and Management Research, 5(5).
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