IMPACT OF LEADERSHIP ROLES ON EMPLOYEES’

PERFORMANCE

Bilal Dojky (35952)

Mudassir Vayani (35953)

Sumit Kumar (28019)

Michelle Marian Victor (39098)

A Thesis
Submitted in partial fulfillment of the requirements
For the degree of Bachelors of Business Administration to
Office of Research, Innovation & Commercialization
(formerly IQRA University Research Centre - IUORIC)
IQRA University, Main Campus, Karachi.
 ACKNOWLEDGEMENT

This research report is dedicated to our family, friends, and professors for their unwavering

support and encouragement throughout the Semester. Firstly, we would like to thank ALLAH SWT

& then to our instructor Dr. Asad Rind and Dr. Agha Amad Nabi for being fantastic mentors. It was

the unending answers of questions and the tireless support that has encouraged us to come up with

our research. He stepped up at the right time where the most of us were not really known to this

subject in accordance with the professionalism and took on the responsibility of guiding us in the

right direction. Furthermore, Sir has pushed us to think outside the box and challenged us to look

beyond what is right in front of us. Without his kind & generous efforts, we would not have been

able to complete this project. For these reasons and many more, we will be forever grateful of you

Sir.

i
 Abstract

The motive of this study is to review how leadership roles impact employee performance do.

This research assists us to review how these factors can positively or negatively impact performance

using a set of variables. The model that helps determine the correlation consist of three independent

variables transformational, servant and ethical leadership and one dependent variable that is

employee performance. To measure the impact of leadership roles on employee performance a

questionnaire was filled out by professionals of various business domains. A sample set of around

200 individuals in Karachi, Pakistan was selected. This sample set served as the corner stone of this

research study and was tested using SPSS. The results of the test show correlation between the

variables of the research model proving the impact of different leadership styles and its impact to

drive employee performance and ability. The study proved that there is a significant relationship

between the three leadership roles and employee performance.

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 Table of Figures

Figure 1: Research Model ................................................................................................................. 132

iii
 List of Tables

Table 1: Table of independent variable .............................................................................................. 12

Table 2: Table of Descriptive Statistics .............................................................................................. 15

Table 3: Table of Correlation .............................................................................................................. 16

Table 4: Model of Regression ............................................................................................................. 17

Table 5: Table of Coefficients ............................................................................................................ 18

Table 6: Table of Anova Analysis ...................................................................................................... 18

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 Table of Contents

ACKNOWLEDGEMENT ................................................................................................................... I

ABSTRACT ........................................................................................................................................ II

TABLE OF FIGURES ...................................................................................................................... III

TABLE OF TABLES........................................................................................................................ IV

CHAPTER 01: INTRODUCTION .................................................................................................... 1

1.1 Overview: ....................................................................................................................................... 1

1.2 Problem statement ........................................................................................................................ 2

1.3 Outline of the study....................................................................................................................... 2

1.4 Keywords ....................................................................................................................................... 2

1.5 Background, Objective and Significance of the Study: - .......................................................... 2

1.5.1 Objective. ................................................................................................................................. 2
1.5.1.1 General Objective. ................................................................................................................. 2
1.5.1.2 Specific Objective. ................................................................................................................ 3
1.6 Background of the study ............................................................................................................. 3
1.7 Significance of the study ............................................................................................................. 4

1.8 Research Questions ....................................................................................................................... 4

1.9 Objective of the Reasearch ........................................................................................................... 5

CHAPTER 02: LITERATURE REVIEW ....................................................................................... 6

Transformational Leadership & Employee‟s Performance:.............................................................. 7
Ethical Leadership & Employee‟s Performance: .............................................................................. 8
Servant Leadership& Employee‟s Performance: .............................................................................. 8

2.1 Hypothesis: .................................................................................................................................... 8

CHAPTER 03: RESEARCH METHODS ...................................................................................... 10

3.1 Research Approach ..................................................................................................................... 10

3.2 Research Design .......................................................................................................................... 10

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3.3 Sampling Design .......................................................................................................................... 10
3.3.1 Target Population ................................................................................................................... 10
3.3.2 Sample Size ............................................................................................................................ 10
3.3.3 Sampling Technique ............................................................................................................... 10

3.4 Procedure ..................................................................................................................................... 10

3.5 Instruments of Data Collection .................................................................................................. 11

3.6 Research Model Developed: ....................................................................................................... 13

3.7 Statistical Technique ................................................................................................................... 13

CHAPTER 04: RESULTS ............................................................................................................... 14

4.1. Introduction ................................................................................................................................ 14

4.2 Descriptive Statistics ................................................................................................................... 15

4.3. Correlation.................................................................................................................................. 16

4.4. Regression ................................................................................................................................... 17

4.5 Anova ........................................................................................................................................... 18

4.6 Summary ...................................................................................................................................... 19

CHAPTER 05: CONCLUSION AND RECOMMENDATION ................................................... 20

5.1 Introduction ................................................................................................................................. 20

5.2 Research Question 1 ................................................................................................................... 20

5.3 Research Question 2 ................................................................................................................... 22

5.4 Limitations ................................................................................................................................... 23

5.5 Future Recommendation ............................................................................................................ 23

5.6 Conclusion ................................................................................................................................... 23

REFERENCES .................................................................................................................................. 25

APPENDIX ‘A’ ................................................................................................................................. 27

vi
Questionnaire .................................................................................................................................... 27

vii
 Chapter 01: Introduction
1.1 Overview:
An employee, is a personnel who invests energy (physical and mental) for the attainment of

organizational goals. (Sihombing 2018). According to (Malthis and Jackson, 2001) employees are

committed to the organization when and if their needs are fulfilled. Human force is one of the basic

elements of the company to that lead towards progression and stability. Therefore, more attention is

given to their well-being and retention which further helps and allows increased performance.

Effective transformational leadership is incredibly necessary to boost the performance of

employees. Leadership therefore, plays a crucial role in employees' success. With each passing day,

the role of managers have become tough and managers are facing new and increasing challenges to

cope with today's advanced and competitive setting. Organizations essentially would like input from

their workers in the style of new concepts and thoughts to boost innovation and improve the

effectiveness of the organization, (Hsin-Hua Hsiung 2012).

Authentic leadership emphasizes once managers build a true and honest relationship

supported their true values and beliefs, workers shows their interests in their responsibilities which

ultimately, improves worker performance (Walumbwa et al,2008). per Shalley et al. (2009) "When

workers are given self-reporting authority, this brings them to psychologically believer in the innate

power and authority they possess as individuals which results in apprehending their tasks well hence

performing better. The suggestion is that the leadership is especially crucial as a result of they need

to pursue structure goals remaining within the social setting of the organizational context (e.g., Bass

1990; Stogdill 1950; Bryman 1996; House 1971).

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 1.2 Problem statement
The leadership gap has been a global issue since years for organizations. As of this

shortcoming, businesses have not been competitive and efficient as the growing intense competition

demands. Innovation is crucial and the growing demand for innovation in this global world makes it

need essential. (Smith and Tushman, 2010). In order to accelerate employee performance and help

them innovate in a fierce knowledge-based work-environment, attention has been paid to the role of

managers as a leader. (Piccolo and Colquitt, 2006; Podsakoff et al., 2003; Wang et al., 2005). Hence,

this research aims to find out how the leadership styles (Transformational, Servant, and Ethical)

spontaneously affect the potency and effectiveness of employees in the organizations.

1.3 Outline of the study

This study examined the impact of worker‟s action of under different leadership designs. The

recognition that outlines what is seen and thought of in the development of an organization as a

central part. As transformational leadership has completed an extremely essential job in raising the

execution of staff for the satisfaction of association, since quite a while past and everlastingly saw

completely as a key issue at every end by pioneer. This leave a positive effect on employee‟s ability

to learn and commitment from servant, transformational and Ethical leadership on Employees limit

and ability.

1.4 Keywords
Transformational Leadership, Ethical Leadership, Servant Leadership, Employee Performance

1.5 Background, Objective and Significance of the Study: -

1.5.1 Objective.
1.5.1.1 General Objective.
The general objective of this research is to undermine whether these factors

(Transformational, Ethical, and Servant Leadership) affect the performance of the employee in

contributing to the goals of the organization.

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 1.5.1.2 Specific Objective.
The specific objectives of this study were:

To determine whether Transformational Leadership is mandatory for or towards employees.

To determine whether the leadership role has the potential to influence the outcomes.

1.6 Background of the study

Avolio, Waldman, and Yammarino, (1991) did the research for the first time in 1991 on

transformational leadership and how effective this leadership style is and the important role it plays

in an employee‟s increased productivity and efficiency. Generally, transformational leadership is

exhibited to a greater degree at the top end of organizations, particularly organizations that select

leaders based on their ability to change and improvise their work units. However, transformational

leadership has also been observed at lower organizational levels, including the level of project

leaders, who are not in management positions. Moreover, through this research it is concluded that

transformational leadership is significant in every organization for better functionality of human

resource but the traditional transactional leadership has an upper hand in the organizations as it is

thought to be a more practical approach in comparison to transformational leadership.

The growth of a business is dependent on the performance and commitment of its

employees. Commitment and loyalty could be built through retaining them in the organizations

providing them with the benefits. If the needs of employee are fulfilled, they tend to have a greater

sense of commitment towards the organization (Mathis and Dan Jackson, 2001). Personnel who use

all their physical and mental abilities benefiting and complying with the rules and regulations of the

organization. (Hasibuan, 2005) play a vital role in progress and development. Thus, commitment and

intrinsic motivation in employees‟ is an indirect part of their performance. The substantial growth of

every company is based on its strong hierarchical system, particularly its strong leadership. (Gibson

et al., 1996, p. 7).

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With today‟s competitive world where people are finding more comfort in their daily lives, the

service industry is flourishing. Service is one major constituent of servant leadership which extends

its roots in customer support and the service-oriented industry. (Greenleaf, 1977) And for that, only

leaders can accommodate with core service required, using their ethical standards. (Greenleaf, 1977).

Servant Leadership creates employee satisfaction and enhances organizational performance.

The factors on which focused in this study are basically the factors which would affect employee

performance under the leadership supremacy.

1.7 Significance of the study

There is an argument that whether or not these factors are directly proportional to employee

performance. It is only after conducting a questionnaire test that an educated judgment can be

advised to support the statement. This statement leaves much to be desired, and it is incumbent upon

this to be further investigated and validated as to whether employee performance is affected.

The motive of the research is to clarify and clear the doubt and this research will be helpful to both

the private and public sectors in helping recruiting, performance assessment and mostly training and

development decision-makers.

To address this issue, employee data is to be collect that will eventually cover up the opinion of

the entire hierarchy, which will give us a clear picture of what a leader can do to achieve its short

and long goals.

1.8 Research Questions

The research will identify whether there are any factors that are affecting employee

performance through different aspects of leadership or not. It will tell us whether:

 What is the relationship between leadership role and employee performance?

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 How transformational, ethical and servant leadership directly impact on employee‟s

performance in an organization?

1.9 Research objective

 To explore the relationship between leadership role and employee performance.

 To explore the impact of transformational, ethical and servant leadership on employee‟s

performance in the organization.

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 Chapter 02: Literature Review

Employees follow leaders to realize goals. This marks an impression on worker performance

and productivity. An honest leader sets a transparent vision by influencing workers to know and

settle for the longer-term on the organization. Leadership is a very important management trait that

helps maximize power and achieve structured goals. A leader is the one who starts the work himself

first setting the parameters, policies and procedures. A leader motivates the workers with monetary

and non-monetary rewards getting quality work delivered whole heartedly by the subordinates.

Leadership is a powerful the method used to lead others. The research paper knows quite many

leadership designs that have been supported by number of followers. The most relevant leadership

vogue depends on leadership performance.

The leadership designs that have been used during this analysis are:

• Transformational Leadership

• Servant Leadership

• Moral/Ethical Leadership.

Why were these leadership roles selected?

• Transformational leadership vogue results a style that is patterned clearly within the organization.

Scholars have considered transformational leadership as positive indicator of employee‟s

performance.

• Researchers suggest that moral/ethical leadership help in managing conflict in corporations. This

particular type of leadership is distinct from other varieties of leadership and has the potential to

influence a vital work force.

• Servant leadership helps in evaluating the employee attribute and engagement in an organization. It

6
empowers the staff through development and trust.

Transformational Leadership & Employee’s Performance:

A summary about the topic i.e. Leadership role in workers‟ accomplishment, different types

of leadership include a positive or negative impact on workers‟ accomplishment, finding out and

analyzing how leadership effects the staff performance. There are a few independent variables and a

dependent variable. Transformational leadership and moral leadership are independent variables.

Reviewing few articles, a piece of writing "Transformational and Transactional Leadership and

Followers' accomplishment Goals" which states that transformational leadership is not at all

associated with performance goals (Hamstra, Nico, Barbara and Kai 2014).

Moreover, another study expresses that transformational leadership wasn't associated with

the followers' performance goals. (Hamstra & et all 2014). Transformational leaders effectively

inspire, motivate, stimulate and have interaction with the participants (e.g., followers) by serving as

a role model for moving from vision to the actual outcome, they supply effective ideas and concrete

suggestions to point out what a team‟s strategy should be to achieve the outcomes. There are four

elements to transformational leadership, generally observed as the four I's that is ideal influence, the

leader acts as a perfect role model for the followers, inspirational motivation, leaders that have the

flexibility to inspire and encourage their followers through a vision that they preset. Individualized

consideration, transformational leaders demonstrate real concern for the requirements and feelings of

their followers.

Intellectual stimulation, the leader challenges its followers to be innovative and artistic, they

encourage their followers to challenge the established order. Transformational leadership could be

smart leadership style however it's not applicable in everywhere, moreover, in line with this this

leadership vogue doesn't have positive affect on employee's productivity. Transformational

leadership is completely associated with a promotion focus, that successively is coupled to inflate

7
the ability as an outcome, each directly and indirectly via engagement within the totally different

stages of the artistic method (Henker, Sabine River & Danu 2015).

Ethical Leadership & Employee’s Performance:

Ethical leadership is the second dependent variable; moral leadership is a leadership that's

directed by respect for ethical beliefs and values and for the dignity and rights of others. Therefore, it

is associated with ideas like trust, honesty, though, charisma, and fairness. This analysis contributes

to the growing literature associated with moral leadership and regulative focus by testing the planned

mediating and alleviative relationships. Moral leadership plays a vital role in creating a positive

impact on employee's performance (Neubert, Cindy and James 2013). Also, they stated, “Despite

hefty growth in analysis associated with moral leadership, additional analysis is critical given the

importance of moral leadership to organizations.”

Servant Leadership& Employee’s Performance:

Servant leadership is the third dependent variable; Servant is completely different from

ancient leadership wherever the leader's main focus is that the thriving of their organization. A

Servant Leader shares power puts the requirements of the workers initial and helps individuals

develop and perform as extremely as potential. The themes unconcealed servant leadership

absolutely influences worker engagement whereas causative to employee loyalty to the geographical

point. Servant leadership empowers workers through development and trust. It places worth on

individuals by serving their wants and building their confidence (Keith, 2012). Servant leadership

could be a type of leadership that emphasizes serving others, like workers (Greenleaf, 1977). Servant

leadership will facilitate form employees' service-oriented values and behaviors, citing the tendency

of followers to emulate their leaders as an associate instructive mechanism (Graham, 1991).

2.1 Hypothesis:
H1: There is a significant relationship between Transformational Leadership and Work

8
Performance.

Transformational Leaders sometimes sets goals and creates Vision for everybody thus it provides a

sense of direction to each worker on however they'll contribute towards the Organization. This ends

up in the higher performance of workers.

H2: There is a significant relationship between Servant Leadership and Work Performance.

Servant Leaders focus on the needs of others before they contemplate their own. This offers

associate intense feeling to the worker that the opposite person is listening and cares for him. This

creates a decent atmosphere and ultimately, will increase the worker performance.

H3: There is a significant relationship between moral/ethical Leadership and Work

Performance.

Ethical Leaders care and respect other workers‟ worth and Morals. This makes the worker feels that

their dignity is safeguarded and rights are protected. Their Honesty and dedication will increase so,

leading to higher performance.

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 Chapter 03: Research Methods

This chapter defines the methodology employed in this analysis to hold out the results. This chapter

contains the methodology of information assortment, sampling technique, sample size, analysis

model, etc.

3.1 Research Approach

To measure the relationship between Leadership roles and Employee Performance,

inferences are drawn based on primary data collected through questionnaire.

3.2 Research Design

The aim of the study is to measure the relationship between Leadership roles and Employee

Performance. This research, will use a quantitative approach to determine the correlation between

independent variables (Transformational, Servant and Ethical Leadership) and dependent variable

(Employees Performance). The logic for using this quantitative approach is due to the data being

collected through questionnaires, as this data is in numeric form. This is a preferable method as the

study is using close-ended questions that will give us more reliable collection of data. By using this

correlation design, it will be helpful in finding out whether the relationship between the independent

variables and dependent variable is positive or negative. Moreover, experimental groups will be used

3.3 Sampling Design

3.3.1 Target Population

For this research, the target population includes employees of the private organizations.

3.3.2 Sample Size

A sample size of 200 respondents are considered for this study.

3.3.3 Sampling Technique

To select the participants for this study the quota sampling of non-probability sampling

technique is applied.

3.4 Procedure

10
 An individual overview procedure is connected and Questionnaire are to be utilized

as an instrument to gather the information through a meeting with the respondents for having an

individual gathering to fill the research question paper.

3.5 Instruments of Data Collection

Questionnaires are used as an instrument for Data Collection. The instruments are

within a type of a Closed-ended form. Answers are recorded in the Likert five-point scales.

Strongly agreed = 5 Agree= 4 Neutral= 3 Disagree= 2 strongly disagree= 1

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Table 1: Table of independent variable

S.no. Variables Authors Relationship

1 Transformational Leadership Hamstra,Nico,Barbara and Kai (2014) Positive
2 Transformational Leadership Henker,Sabine River& Danu (2015) Positive
3 Servant Leadership Hsiung (2012) Positive
4 Servant Leadership Sihombing,Endang,Mussadieq (2013) Positive
5 Servant Leadership Keith (2012) Positive
6 Ethical Leadership Gu,Thomas,Tang,Wang (2015) Positive
7 Ethical Leadership Neubert,Cindy,James (2013) Positive
9 Transformational Leadership Sabir,Adil,Muhammad (2011) Positive
10 Transformational Leadership Paracha,Adnan,Anam (2012) Positive
11 Transformational Leadership Babic,Jana,Violeta (2014) Positive
12 Transformational Leadership Choudhary,Syed,Arshad (2012) Positive
13 Servant Leadership Choudhary,Syed,Arshad (2012) Positive
14 Ethical Leadership Bello (2012) Positive
15 Ethical Leadership Cheng, Shu-Ching,Jyh-Huei (2015) Positive
16 Ethical Leadership Yang, Hua (2016) Positive
17 Servant Leadership Eva,Sen,Daniel,Andrew (2016) Positive
18 Servant Leadership Asadi Shahnawaz,Oualid(2018) Positive
19 Ethical Leadership Shafique,Bashir,Masood(2018) Positive
20 Ethical Leadership Chadee (2017) Positive
21 Servant Leadership Rivkin, Stefan& Klaus (2014) Negative

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 3.6 Research Model Developed:
Figure 1: Research Model

Ethical Leadership

Servant Leadership Employee

Performance

Transformational
Leadership

3.7 Statistical Technique

Regression is utilized as the statistical technique to evaluate results of the collected

questionnaires. The type of regression is multi-linear because more than one independent variable is

used in this model.

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 Chapter 04: Results
4.1. Introduction
This chapter focuses on the results that are obtained from IBM SPSS statistics. The first step

was analysis of the data through „descriptive statistics‟. With the help of descriptive statistics the

mean, standard, skewness and deviation, variance kurtosis of the independent variables; were

calculated in relation to the dependent variable i.e. Employees Performance. Moving ahead, the

relationship between the dependent and independent variable was evaluated by applying correlation

statistics and then multiple linear regression analysis was used to find out whether the hypothesis is

accepted or rejected for this research. This chapter further aims on informing about the positive and

negative relationship between the dependent and the independent variables. Moreover, the chapter

focuses on showing the efficacy of the entire research which was based on the primary source of

collection of data i.e. through questionnaires evaluating performances of employee in light to their

leadership styles.

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 4.2 Descriptive Statistics
Table 2: Table of Descriptive Statistics

Std.
N Min Max Mean Var Skewness Kurtosis
Dev
Std. Std.
Stats Stats Stats Stats Stats Stats Stats Stats
Error Error
-
3.666 0.719 0.51 1.16
Employees Performance 210 1 5 0.68 0.168 0.334
67 59 8 9
9

-
Transformational 3.834 0.658 0.43 2.48
210 1 5 0.96 0.168 0.334
Leadership 13 49 4 9
2

-
3.447 0.582 0.33 1.52
Servant Leadership 210 1.25 5 0.23 0.168 0.334
6 02 9 1
5
-
3.804 0.695 0.48 1.62
Ethical Leadership 210 1 5 0.83 0.168 0.334
76 15 3 9
5

Valid N (listwise) 210

 The results, showed the mean of Employee performance to be 3.667 and standard deviation was

0.71958 which concluded to 71.958%, which means that the data collected is deviating about

71.958% from the mean value, which is not a good indicator

 The mean of transformational leadership is 3.834 and the standard deviation is 0.65849 which is

calculated to 65.849%, which means that the data collected is deviating about 65.849% from the

mean value, which again is not a good indicator.

 The mean of servant leadership is 3.4476 and the standard deviation is 0.58202 coming up to

58.202%, which means that the data collected is deviating about 58.202% from the mean value,

which is not a good indicator.

15
 The mean of ethical leadership is 3.8047 and the standard deviation is 0.69514 bringing it up to

69.514%, which states that the data collected is deviating about 69.514% from the mean value,

which is also not a good indicator.

4.3. Correlation

Table 3: Table of Correlation

Employees Transformational Servant Ethical

Performance Leadership Leadership Leadership

Employees Pearson 1 .596** .369** .606**

Performance Correlation

Sig. (1-tailed) .000 .000 .000

N 210 210 210 210

Transformational Pearson .596** 1 .423** .563**

Leadership Correlation

Sig. (1-tailed) .000 .000 .000

N 210 210 210 210

Servant Leadership Pearson .369** .423** 1 .326**

Correlation

Sig. (1-tailed) .000 .000 .000

N 210 210 210 210

Ethical Leadership Pearson .606** .563** .326** 1

Correlation

Sig. (1-tailed) .000 .000 .000

N 210 210 210 210

**. Correlation is significant at the 0.01 level (1-tailed).

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 4.4. Regression
Table 4: Model of Regression

Model Summary
Adjusted R Std. Error of
Model R R Square
Square the Estimate
1 .686a .470 .463 .5274525580
26148
a. Predictors: (Constant), Ethical Leadership, Servant
Leadership, Transformational Leadership

This table of model summary derived from regression analysis providing the values of R and

R2. The value of R evaluates the relationship between the dependent and the independent variables.

However, the value of R2 explains the change in the dependent variable due to a significant change

in the independent variable. In the model summary, the value of R is 0.686 which indicated the value

to be < 0.5 inferring that the relationship between the dependent and the independent variable is

weak. On the other hand, the value of R2 is 0.470 which is 47% which show that the change in the

dependent variable due to change in the independent variable in only 47% which represents a

nominal relationship between the two.

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 Table 5: Table of Coefficients

Coefficients

Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) .313 .269 1.162 .247
Transformational .369 .070 .338 5.236 .000
Leadership
Servant Leadership .126 .070 .102 1.804 .073
Ethical Leadership .396 .064 .382 6.189 .000

a. Dependent Variable: Employees Performance

Table 4.4 mentions and displays the negative or positive relation between the independent variable

(Transformational, Servant and Ethical Leadership) and the dependent variable i.e. Employees

Performance. According to Table 05 the sig values of Transformational and Ethical leadership are

below then 0.05, which infers that there is a positive relationship between two of the independent

variables i.e. transformational and ethical leadership and the dependent variable. Lastly, presenting a

negative relationship between servant leadership and dependent variable.

4.5 Anova

Table 6: Table of Anova Analysis

ANOVA
Model Sum of Squares df Mean Square F Sig.

1Regression 50.912 3 16.971 61.000 .000b

Residual 57.310 206 .278

Total 108.222 209

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a. Dependent Variable: Employees Performance

b. Predictors: (Constant), Ethical Leadership, Servant Leadership, Transformational Leadership

The figure 4.5 of Anova exhibits and explains the statistical significance of the whole model. Since

the sig value is 0 which is less than 0.5. It concludes that this model is statistically significant.

4.6 Summary
After a thorough analysis the following conclusions were drawn: the relationship between

the dependent and the independent variables are statistically significant. The deviations of data

between each single independent variable (Transformational, Ethical and Servant Leadership) and

the dependent variable; Employees Performance shows an evident impact of each independent

variable on the dependent variable. In view of the descriptive statistics data, the idea is affirmed

that the resulting positive relationship can be quantified to something statistically viable hence the

accepting the hypothesis suggested in Chapter 3.

The goal of the research was to establish a relationship between the dependent and the

independent variables. Hence, the descriptive statistics and ANOVA have proved to be a

considerable basis to conclude that the results of the suggested thus provides grounds for

sustainable relationships between variables set out to investigate and conduct this research. The

lower value of ANOVA from 0.05 accepts the hypothesis and the multiple linear regression

techniques. This proves the research to be fit and its variables significantly related fulfilling the

purpose of this research.

19
 Chapter 05: Conclusion and Recommendation

5.1 Introduction
The central purpose was to identify and determine the existent relationship between the

dependent and the independent variable. Moreover, the further concern of this research was to

analyze which factors are affecting employee‟s performance at their work place. Employee

performance refers to the effectiveness and efficiency at their work place to achieve organizational

goals. In this process a leader plays a vital role through his leadership style i.e. Transformational,

Servant and Ethical style of leadership. To evaluate the results, three questions were proposed in

order to test the authenticity of the research. However, the research suggests that two factors i.e.

Transformational & Ethical Leadership have a positive impact on the dependent variable i.e.

Employees Performance. The research outcome has evaluated that there is a significant relationship

between the factors and employee performance at their respective work place. Hamstra, Nico,

Barbara and Kai (2014) and Bello (2012) is a supporting context which states that there is a positive

relationship between the said dependent and independent variables.

5.2 Research Question 1

What is the relationship between leadership role and employee performance?

Employee performance is critical to the overall success of the company. A motivated

workforce is crucial for any organization. Increasing employee performance is the key ingredient to

a successful organization. Leaders use leadership strategy to motivate employee‟s performance.

Leadership styles include Transformational, Ethical and Servant Leadership styles. Our results

conclude that leadership role has a positive or significant impact on employees performance and this

result is identical to the research of (Hamstra,Nico,Barbara and Kai 2014). Leadership is a very

important management trait that helps maximize power and achieve structure goals.

Transformational leadership on the other hand also has a positive or significant impact on employee

20
performance and this result is identical to the research of (Henker,Sabine River& Danu 2015).

Ethical leadership also positively impacts employee performance and this result is identical to the

research (Shafique,Bashir,Masood 2018). Servant Leadership therefore has shown a negative or

insignificant impact on employee performance and this result is identical to the research of (Rivkin,

Stefan& Klaus 2014).

Table 7: Table of Correlation

Employees Transformational Servant Ethical

Performance Leadership Leadership Leadership

Employees Pearson 1 .596** .369** .606**

Performance Correlation

Sig. (1-tailed) .000 .000 .000

N 210 210 210 210

Transformational Pearson .596** 1 .423** .563**

Leadership Correlation

Sig. (1-tailed) .000 .000 .000

N 210 210 210 210

Servant Leadership Pearson .369** .423** 1 .326**

Correlation

Sig. (1-tailed) .000 .000 .000

N 210 210 210 210

Ethical Leadership Pearson .606** .563** .326** 1

Correlation

Sig. (1-tailed) .000 .000 .000

N 210 210 210 210

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 5.3 Research Question 2

How transformational, ethical, and servant leadership directly impact on employee’s

performance in an organization?

Leadership styles include a positive and negative impact on employee working in an organization.

Transformational leaders effectively inspire, motivate, stimulate and have interaction, leaders serve

as a role models from vision of organization to outcomes. Transformational Leaders encourage

followers to view problems from new perspective and provide support and encourage employees to

achieve their desired goals (Paracha,Adnan,Anam 2012). Ethical leadership possess characteristics

like integrity, caring, openness, honestly and collective information. Ethical leaders respect the

ethical beliefs and values and for the dignity and rights of others. Ethical leadership plays a vital role

in creating a positive impact on employee performance (Neubert, Cindy& James 2013). Servant

Leaders slows individuals to develop and perform to the extent of their potential. Sometimes servant

leadership has a negative impact on employee‟s performance it is related to employee emotion, ego

and psychological strain (Rivkin, Stefan& Klaus (2014)

Table 8: Table of Coefficients

Coefficients

Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) .313 .269 1.162 .247
Transformational .369 .070 .338 5.236 .000
Leadership
Servant Leadership .126 .070 .102 1.804 .073
Ethical Leadership .396 .064 .382 6.189 .000

22
 5.4 Limitations
In this research, a few limitations faced were; the questionnaires used for data collection

might not filled appropriately, there is no surety that the respondents filled out the questionnaires

authentically with diligent reading and addressing the questions or not, which leads us to the

possibility of inaccurate data and misleading results. Moving ahead, the sample size was below 300

which means that the research was restricted to a specific number of respondents. Which concluded

that the sample size was less and study was limited to only a few individuals. Lastly, most of the

respondents did not want to reveal their employers name as to have a negative image about

organization‟s behavior towards their employee.

5.5 Future Recommendation

The study offers recommendations that the research can be conducted at a higher level,

pertaining to specific sectors, evaluating how each leadership style effects different sectors of the

economy. The sample size of the research can be increased in order to get a much closer picture and

more authentic results of the selected variables. Moreover, this research can be conducted on

provincial basis, comparing the impact and mindset of the people of each province in Pakistan.

There is still a requirement to create and justify the relationship between the independent and

dependent variable.

5.6 Conclusion
According to the results of the research, the conclusion drawn is that there is a positive effect

of Transformational and Ethical leadership on employee performance. But one of the independent

variables i.e. Servant leadership has a negative and insignificant impact on employee performance.

The goal of the research has always been to understand what drives and motivates employees to

achieve organizational goals. The study was able to conclude that a leader plays a vital role to

23
encourage employees to enhance performance through their leadership styles. The results from the

research shows a positive and significant impact that a leader has and the strong and effective change

he can make on the employee mindset and performance. This study provides an insight into

leadership styles and the factors affecting employee performance.

24
 References
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413-425

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(October 2014), pp. 453-464

Qinxuan Gu, Thomas Li-Ping Tang, and Wan Jiang, Journal of Business Ethics, Vol.

126, No. 3 (February 2015), pp. 513-529

Nils Henker, Sabine Sonnentag, and Dana Unger, Journal of Business and

Psychology, Vol. 30, No. 2 (June 2015), pp. 235-247

Giles hirst, rolf van dick and daan van knippenberg, Journal of Organizational

Behavior, Vol. 30, No. 7 (October 2009), pp. 963-982

Mitchell J. Neubert, Cindy Wu, and James A. Roberts, Business Ethics Quarterly,

Vol. 23, No. 2 (April 2013), pp. 269-296

Hsin-Hua Hsiung, Journal of Business Ethics, Vol. 107, No. 3 (May 2012), pp. 349-

361

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11, No. 2 (Sep. 1966), pp. 238-263

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54 No. 3, 2016 pp. 357-374

Nathan Eva, Sen Sendjaya, Daniel Prajogo, Andrew Cavanagh, Mulyadi Robin,(2018)

"Creating strategic fit: Aligning servant leadership with organizational structure and strategy",

Personnel Review, Vol. 47 Issue: 1, pp.166-186

Sandra Gutierrez-Wirsching Jacqueline Mayfield Milton Mayfield Wei Wang,

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(2015),"Motivating language as a mediator between servant leadership and employee outcomes"

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Wladislaw Rivkin, Stefan Diestel and Klaus-Helmut Schmidt German Journal of Research in

Human Resource Management pp. 52-72.

Imran Shafique, Bashir Ahmad, Masood Nawaz Kalyar, (2019) "How ethical leadership

influences creativity and organizational innovation: Examining the underlying mechanisms",

European Journal of Innovation Management, DOI 10.1108/EJIM-12-2018-0269

Sahat Sihombing, Endang Siti Astuti, Mussadieq Mussadieq, Djamhur Hamied, Kusdi

Rahardjo, "The effect of servant leadership to rewards, organizational culture, and its implication to

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26
 Appendix ‘A’
Questionnaire
Dear Respondent:
The questionnaire is about “Effect of leadership on employee performance”. The entire information share by

you will be considered as highly confidential and will not be disclosed to anyone. I highly appreciate your

efforts for responding to this questionnaire.

(Tick only one in each case)

No. Strongly Disagree Neutral Agree Strongly

Please select your desired response
Disagree Agree
as to what are you feeling currently

1. I am satisfied with the specified

policies and the procedures in my
office.
(Hamstra et.al, 2014)

Office policies regarding attendance

2. makes me punctual.
(Hamstra et.al, 2014)
Effective policy making is best
3. example of transformational
leadership.
(Hamstra et.al, 2014)
Employer's effective policies creates
4. a good participative environment in
office.
(Hamstra et.al, 2014)
5. Policies and procedures specified in
my office are inconceivable. (GILES
HIRST,2009)
I experience too much burden and
6. feel exhausted over the policies of
the teacher.
(GILES HIRST,2009)

Factors which cause the low level of

7. motivation can be improved to
increase the level of motivation.
(Hsin-Hua Hsiung,2012)
I am satisfied with my leader's
8. governing style.
(GILES HIRST,2009)

27
 My leader encourages employees to
9. think out of the box.
(Hsin-Hua Hsiung,2012)
10. Leader always empower employees.
(GILES HIRST,2009)

Employer motivates employees to

11. work differently and be creative at
studies.
(Mitchell J. Neubert,2013)
My leader respect my ethical values
12. and beliefs.
(Mitchell J. Neubert,2013)
Better performance increases level of
13. self-esteem.
(Hsin-Hua Hsiung,2012)
14. Better performance increases
level of self-esteem.
(Paracha,2012)
15. My performance usually generates
favorable outcome. (Qinxuan,2015)

 Name --------------------------

 Gender: Male [ ] Female [ ]

 Email : ---------------------------------------------------

28
Impact of leadership on employee performance

ORIGINALITY REPORT

12
SIMILARITY
% 6%
INTERNET SOURCES
1%
PUBLICATIONS
14%
STUDENT PAPERS
INDEX

PRIMARY SOURCES

www.emeraldinsight.com
Internet Source %

Submitted to University of Fort Hare

Student Paper %

Submitted to Higher Education Commission Pakistan

Student Paper

Submitted to University of Huddersfield

Student Paper %

Submitted to Hong Kong Baptist University

Student Paper %

Submitted to Northcentral
Student Paper %

Submitted to DeVry University

Student Paper %

Submitted to Intercollege
Student Paper %

journals.sagepub.com
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