An assessment of leadership styles on organizational performance : A case study of the national board for small scale industries, Accra

Abstract

The objective of the study was to assess the effect of leadership styles on the performance of employees at the National Board for Small Scale Industries, (now Ghana Enterprise Agency). The main objective was to ascertain the effect of leadership styles on the performance of the organization. The specific objectives that guided the study were: to establish the existing leadership style, the relationship between the leadership style and job performance, and to examine the effect of the leadership styles on employee performance at the Ghana Enterprise Agency. The study adopted a cross-section descriptive survey design where self-administered questionnaires were used to collect primary data through an internet-mediated questionnaire. The study used descriptive statistics and deductive approach in its interpretation of the findings. The study showed that all three (3) leadership styles (autocratic, democratic and laissez-faire) exist in the administration of the Ghana Enterprise Agency. However, the study showed that democratic or transformational leadership is the most common style at the agency, followed by transactional or autocratic leadership style and, laissez-faire leadership style. Overall scores showed that democratic leadership style has a strong effect on the performance of employees. The results suggest that superiors in organizations need to practice more of transformational leadership style in their dealings and adopt autocratic style where the need arises, as different situations require different leadership styles. Supervisors are encouraged to know when to apply a specific leadership style in a given situation.