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Writer's pictureGerry Savage, MBA

The Impact of Leadership Style on Employee Performance, Commitment, and Motivation

Effective leadership is crucial for organizational success in today's dynamic business environment. The article "The Impact of Leadership Style on Employee's Performance, Commitment & Motivation," by researchers from D Y Patil University, offers insightful findings on how various leadership styles affect employee outcomes.


Understanding Leadership Styles


Leadership is more than a title; it’s about inspiring and guiding a team toward achieving common goals. The study explores four main leadership styles:


  1. Transformational Leadership: This style is characterized by leaders who inspire and motivate employees through a compelling vision and personal attention. Transformational leaders focus on the individual growth of their team members, fostering an environment of trust and respect. Employees under transformational leadership often feel more motivated and committed, viewing their leader as a role model.

  2. Transactional Leadership: Here, the focus is on supervision, organization, and performance. Transactional leaders motivate employees through a system of rewards and penalties, aiming to maintain the status quo. While this style can lead to job satisfaction, it often results in lower levels of commitment and innovation.

  3. Delegative (Laissez-Faire) Leadership: This style allows employees to make decisions, with leaders providing support and resources. Delegative leadership can lead to increased innovation and personal growth, as employees have the freedom to explore new ideas. However, it requires a high level of trust and confidence in the team’s abilities.

  4. Authoritarian Leadership: Often seen as a top-down approach, authoritarian leaders maintain control over all decisions, offering little input from employees. While it provides structure, it can lead to lower employee satisfaction and creativity, as team members may feel undervalued and disconnected.


The Research Findings



The study, conducted with employees in Mumbai and Navi Mumbai’s FMCG, IT, and Banking & Finance sectors, utilized surveys to gather data on how these leadership styles impact employee outcomes. The findings highlight:


  • Transformational Leadership emerged as the most effective style, significantly boosting employee motivation and commitment. Employees under transformational leaders reported higher job satisfaction and were more inclined to go above and beyond in their roles.

  • Transactional Leadership was associated with adequate job satisfaction but did not encourage long-term commitment or innovation.

  • Delegative Leadership fostered creativity and personal responsibility, with employees feeling empowered to contribute to organizational goals.

  • Authoritarian Leadership was the least favored, with employees showing lower levels of satisfaction and creativity due to the restrictive nature of the style.


Implications for Organizations


The research underscores the importance of adopting a leadership style that aligns with organizational goals and employee needs. Transformational leadership, in particular, stands out for its ability to enhance employee engagement and performance, driving organizational success. Leaders should focus on building trust, encouraging open communication, and supporting employee development to foster a motivated and committed workforce.


Effective leadership is a critical determinant of organizational performance. The Four Pillars Consulting Group was founded on fundamental leadership principles, including Honesty, Integrity, knowledge, and Genuine Interest in People. Learn more about implementing the right leadership style in your organization to unlock the full potential of your employees, team members, or sales team and pave the way to sustained growth and success.



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