Impact of leadership styles on employee perromance: a review of literature

Abstract

The business researchers are interested in identifying what leadership styles result in positive outcomes in organizations. From the work of the researchers, many theories and approaches have been developed time to time. This paper provides a literature review of transformational and transactional leadership styles and its impact on employee performance. The review outlines the major leadership theories and provides a framework for understanding the body of knowledge. Transformational and transactional leadership theories are discussed in detail in order to provide a specific leadership theoretical framework for this study. Empirical findings related to the study variables are discussed based on the literature. The review of literature shows that the leaders are perceived effective when they use transformational and transactional leadership styles together. Further several studies identified that, compared to transactional leadership, transformational leadership has more impact on employee performance. However, there is a gap in the current literature examining the effects of transformational and transactional leadership styles on employee performance in the Sri Lankan context. The review results would bring a platform for the future researchers to concentrate on the applicability of the theory in various sectors in Sri Lanka.

The effect of performance appraisal on job performance in governmental sector: The mediating role of motivation

“…Vast number of articles and studies have discussed the impact of leadership on employees' job performance and motivation. The most comprehensive discussion that shed light on this phenomenon was conducted by Raveendran and Gamage ( 2018). They found that the style of leadership affects the performance of the employees.…”

Leadership styles and organizational citizenship behavior: a review of literature

“…By going through the past studies, it is clear that several intervening variables are taken into consideration by researchers. Gamage (2014), Sulaiamn (2014), Rodrigues and Ferreira (2015), Martinez et al,2018, Jameel et al (2021, Raveendran and Gamage (2021) and Dedci, Hadzaihmetovic and Mujezinovic (2022) analyzed the direct relationship of transactional and transformational leadership styles and OCB and concluded dissimilar findings. Others, for example, Nugraha (2021), Asgari, Mezgineiad and Taherpour (2020), Saira, Mansoor, Ali (2021), Nasar and Arar (2019),Dartey-Baah, K., & Addo, S. A.…”

The Impact of Leadership Styles on the Job Satisfaction of Employees in a Garment Factory of Sri Lanka

“…Even though many scholars have addressed the impact of leadership styles on the job satisfaction of employees in different manner, literature on this topic in the context of Sri Lanka has not sufficiently developed. There are only few studies covered the subject of leadership in Sri Lanka, particularly limiting to few sectors (Raveendran and Gamage, 2018). As cited by Raveendran and Gamage (2018), they are the studies such as the impact of transformational and transactional leadership styles on various outcomes like knowledge creation in Sri Lankan Software Industry (Athukorala, Perera and Meedeniya, 2016), employee performance in banking industry (Chamika and Gunasekara, 2016) and union and organizational commitment in public sector organizations in Sri Lanka (Dhammika, Ahmed and Sam, 2013).…”

“…There are only few studies covered the subject of leadership in Sri Lanka, particularly limiting to few sectors (Raveendran and Gamage, 2018). As cited by Raveendran and Gamage (2018), they are the studies such as the impact of transformational and transactional leadership styles on various outcomes like knowledge creation in Sri Lankan Software Industry (Athukorala, Perera and Meedeniya, 2016), employee performance in banking industry (Chamika and Gunasekara, 2016) and union and organizational commitment in public sector organizations in Sri Lanka (Dhammika, Ahmed and Sam, 2013). Therefore, this study attempts to fill that gap of the knowledge by addressing how leadership styles affect job satisfaction of the employees, particularly in a garment factory in Sri Lanka.…”