Sugandha Agarwal / Leadership Style and Performance of Employees / 1 - 14

ISSN: 2089-6271 | e-ISSN: 2338-4565 | https://doi.org/10.21632/irjbs

Vol. 13 | No. 1

Leadership Style and Performance

of Employees

Sugandha Agarwal
European International College, Al Karamah Street, Abu Dhabi, United Arab Emirates

ARTICLE INFO ABSTRACT

Keywords: Leadership is an important aspect as it usually enables the employees

Leadership, of the organizations to work efficiently and effectively. The current
Democratic leadership,
study assesses the relationship between leadership style(s) and
Transformational leadership,
Performance of employees, the performance of employees working in the banking sector of the
Positive Relationship United Arab Emirates (UAE). This quantitative study is conducted with
a sample of 200 employees from 5 different banking institutions of the
Kata Kunci:
Kepemimpinan, UAE using simple random sampling techniques. SPSS version 21 was
Kepemimpinan demokratis, used to analyze the data. The results highlighted that democratic and
Kepemimpinan transformasional,
transformational leadership have a significant positive relationship
Kinerja karyawan,
Hubungan yang positif with the performance of employees with a p-value of 0.00, P<0.05.
The Cronbach’s alpha was measured between the ranges of 0.7 to 0.8
which is an acceptable range. It is proven that democratic leadership
and transformational leadership styles are significant for the banking
sector which helps to achieve its goals and enhance the performance
of employees.

S A R I PAT I

Kepemimpinan adalah aspek penting organisasi karena biasanya

memungkinkan karyawan bekerja secara efisien dan efektif. Sekarang
studi ini menilai hubungan antara gaya kepemimpinan dan kinerja
karyawan yang bekerja di sektor perbankan Uni Emirat Arab (UEA).
Penelitian kuantitatif ini dilakukan dengan sampel 200 karyawan dari 5
lembaga perbankan berbeda di UAE menggunakan teknik pengambilan
sampel acak sederhana. SPSS versi 21 digunakan untuk menganalisis
data. Hasilnya menggarisbawahi bahwa demokrasi dan kepemimpinan
transformasional memiliki hubungan positif yang signifikan dengan
kinerja karyawan, dengan nilai p 0,00, P <0,05. Alfa Cronbach diukur
antara kisaran 0,7 hingga 0,8 yang merupakan rentang yang dapat
diterima. Terbukti bahwa kepemimpinan yang demokratis dan gaya
kepemimpinan transformasional sangat penting bagi sektor perbankan,
Corresponding author: yang membantu mencapai tujuannya dan meningkatkan kinerja
drsugandhaagarwaal@gmail.com karyawan.

© 2020 IRJBS, All rights reserved.

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International Research Journal of Business Studies | vol. XII no. 01 (April - July 2019)

INTRODUCTION are various types of the leadership styles which

Leadership is considered as one of the important include autocratic leadership, transformational
factors which plays vital role in the productivity leadership, transactional leadership, democratic
and success of the organization. The leaders who leadership and participative leadership. The
don’t have the ability to lead the people effectively leadership style which are chosen to be focused
can never be successful and therefore cannot lead upon in the undertaken study are transformational
their subordinates well. So it is highly advisable for leadership and participative leadership styles and
the organization to have the right type of leaders in assessing their association with the performance
order to promote the efficiency and the productivity (Anderson & Sun, 2017).The reason behind focusing
in the organization (Mussolino & Calabrò, 2014). specifically upon these leadership styles is that
The leadership can be influenced by different these styles are the most widely used leadership
factors in an organization. The major effect is of styles around the world and when the new type
the culture and the value system of the organization of ideology is developed with the help of the
which makes one organization different from the research, it can help the style of the leadership to
other. The type of leadership needed in one type be verified for bringing success to the organization.
of organization might not be needed in another Thus the undertaken research is to determine
type of organization and it can be assessed by the the influence of the participative leadership style
goals and vision of the organization (Amanchukwu, and transformational leadership style on the
Stanley, & Ololube, 2015). The current research performance of employees associated with banking
will be focusing on the leadership style in the UAE sector of the UAE (Frankel & PGCMS, 2019). The
banking sector and will assess as which leadership present study would contribute to gauge whether
style suits the organization needs better in terms of participative and transformational leadership styles
influencing the employees’ performance (Anderson reflect any impact on the employees’ performance;
& Sun, 2017). if there is the impact, then it is significant or not,
and at the same time it will also evaluate the level
The role of leadership in an organization is of variation in the performance caused by adopted
important as it helps in the creation of the vision, leadership styles.
mission, and establishment of objectives, along
with designing the policies and strategies in order LITERATURE REVIEW
to achieve the objectives of the organization in an This section discusses the different studies and
effective and efficient way. Also, the leadership theories to elaborate the leadership styles and their
helps in the direction and coordination of the role and impact on the performance of employees.
organizational activities. In the present time, many There are number of leadership styles which have
organizations are facing problems which are been discussed in the literature. However, not all
related to the unethical practices in organization, the styles fit in all the situations and hence, different
also causing poor performance and high labor factors determine the use of the leadership style
turnover. One of the possible reasons behind this is in organization (Arnold, Connelly, Walsh, & Martin
the ineffective leadership (Amanchukwu, Stanley, Ginis, 2015).
& Ololube, 2015). Some of the organization take
leadership styles seriously which are used by their One of the leadership styles is autocratic leadership
manager to find the problems and resolve them where the leader has the central position in terms of
better. Based on this notion, the present study aims leadership and authority. Under this leadership style,
to determine the relationship and impact of the the leader holds all the authority and responsibility
leadership style on the performance of employees and decisions are made without any participation
working in the banking sector of the UAE. There from the subordinates and hence, employees

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 Sugandha Agarwal / Leadership Style and Performance of Employees / 1 - 14

have to merely follow them without sharing their attempts to fill the gap between the desired level of
concerns and apprehensions. The decisions are state and the practical level of state. The change is
taken at the higher level and only communicated one of the prime aspects and well incorporated in
to the subordinates thus there is no flexibility to this type of leadership. Also, the strategic thinking is
review the decisions further. Policies, strategies pre-requisite for such leadership style (Asrar-ul-Haq,
and procedures are drafted by the leader and & Kuchinke, 2016).
there are barely any situations where the voice and
opinions of other employees is heard or considered Leadership style can also be transformational in
(Mussolino & Calabrò, 2014). nature, this type of leadership relies on taking the
initiative and hence, is practiced by the leaders
Another type of the leadership style is the democratic for the group, organization and employee working
leadership which is considered to be one of the for, with and under them. The leader motivates
most widely considered leadership style across the employees to work towards the personal and
the globe. In this type of leadership the other the organizational goals on an ongoing basis.
employees are given the equal chance to contribute Also, for this type, the tasks set is challenging and
to the decision making. The central position is held performance is focused as well. These types of
by the leader himself but the decision making is leaders are the ones whose commitment level
delegated to the subordinates in order to enhance is very high and they have a huge number of
the contribution and association of the employees followers to appreciate and appraise their qualities.
with the organization (Cooper, 2015). The leader is The empowerment of the employee is the main
responsible for the final decision but the delegation objective of transformational leaders (Asrar-ul-Haq,
of authority is observed. It is noticed that employees & Kuchinke, 2016).
under such leadership style exhibit high level of
energy and ensure more efficiency while executing Team leadership is another type of leadership
assigned duties. (Koohang, Paliszkiewicz, & where the leader is one who determines the
Goluchowski, 2017). Such leadership promotes the course of actions to be taken for accomplishing
efficient and free flow of communication in all the the designated work and hence, plan the future
directions and from top to bottom, bottom to top of the team as well. The plan is then followed by
and in the vertical and horizontals manner as well. the subordinates firmly and leader monitors the
Number of traits such as- fairness, creative nature, working performance of them. The vision for this
courage, honesty and intellect are appreciated type of leader is to inspire and also to have the
when the qualities of democratic leaders are strong sense of purpose as well (Urick, & Bowers,
assessed (Amanchukwu, Stanley, & Ololube, 2015). 2014). Team leaders put all the efforts and heart in
the planning and supporting their team in achieving
Strategic leadership is one more style to lead the set targets. The team work is highly promoted
and deal with the people. The main goal of this and a cooperative and collaborative relationship
leadership style is to ensure high performance of is built among the employees (Vito, Higgins &
the team and the organization. This leadership is Denney, 2014).
not confined to only the head of the company, it
assumes that all the employees are strategically Another type of leadership which is widely practiced
important and can become the leaders as well. The these days in the era of globalization is the cross
leader aims at exploring the creative and innovative cultural leadership. Such leadership style is about
possibilities to ensure positive and significant being more sensitive to the needs of culturally-
impact on the employees’ performance by bringing diverse work force. Such leaders embrace all
more participation of the subordinates. The leader the cultures with due consideration (Masa’deh,

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International Research Journal of Business Studies | vol. XII no. 01 (April - July 2019)

Obeidat, & Tarhini, 2016). The leader values the On a primary level, in an organization group
cultural diversity to promote diverse ideas and the of people come together to work and perform
genuine talent of employees without being culturally towards the same goal and the objective. The
biased. When an organisation operates in the global goals and objectives are same for the organization
market or has the workforce coming from different but could be different for the different people as
countries with diverse cultural and religious beliefs, well. The organizations usually have the standard
such leadership contributes quite effectively to goals and they can be achieved by being the part
help them to adjust themselves according to the of the organization. It is also argued in the available
situation and need of the organization (Anderson literature that organizations are known as the social
& Sun, 2017), which in turn, ensures better output entities and hence, have the directive regarding
and creativity in the performance. every function and also have structure which makes
all the organization different from one another.
Coaching leadership is another kind where the Also the organizations have the coordinated
leader believes in giving the coaching and mentoring activity system and is linked to the external system
the subordinates working for them. The leader acts of environment as well (Birasnav, 2014). The
as a teacher and supervises the performance of organizations usually exist when the people work
employees. The leader can be operational in all towards the same goal in the same manner and
types of the settings and hence, the main objective some of the essential functions are performed
is to improve the performance of employees so as together as well. It is also argued that change is one
to ensure organisational success. The leader helps major aspect which takes place in the organization
the employees to improve their skills by motivating and can affect all the processes of the organization
them, inspiring them (Wang, Waldman, & Zhang, as well (Hurduzeu, 2015). Along with that it can
2014) and also by boosting their morale to work also be argued that leaders is very important with
better towards improved performance. regard to functions of the organization as they plan
the policies, strategies; supervise the performance
Charismatic leadership style is another form where of employees and monitor the functions of the
the leader’s power are revolutionary and hence, the organization (Neubert, Hunter & Tolentino, 2016).
focus of the leader in on transforming the values and
beliefs of the followers (Harwiki, 2016). There are The available researches discuss about the fact
number of qualities the leader has, one of those is that different type of the organizations have the six
the power to influence others, to prepare the others basic parts which include the top management,
to achieve their goals and to be able to change the which resides on the top of the organization, the
attitude of people as well (Anderson & Sun, 2017). middle management which works in the middle
One more leadership style is the visionar y level of the organization, technical core which
leadership. The visionary leader recognizes the works all the basic and important work of the
fact that the vision is the primary need of an organization (Wang, Sui, Luthans Wang & Wu,
organization and at the same time it is not necessary 2014).There are also the technical support groups
that vision is conceived by the top management where the researcher, analyst and engineers etc.
only or the strategic team. Such leaders have the work in the organization and the focus of this
high vision and possess the ability and competence part is on the controlling and planning of the
to transform the vision into reality by reflecting technicalities of the organization. Another one is
due dedication and assurance for recognising the the administrative support stand which do a lot of
efforts of the employees following them (Yahaya, work including mailing, maintenance and clerical
& Ebrahim, 2016). duties for the organization and in the core of the
organization lies the ideology and hence, this is

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the part where the values, traditions and beliefs of The theoretical base achieved from the reviewed
the organization lies and it makes it different from literature and understanding of the concepts so far
the other organizations (Almatrooshi, Singh, & contributed to propose following hypotheses:
Farouk, S2016). It can also be argued that different
part of the organization join together to make an H1: The democratic leadership reflects significant
organization and hence, impact the performance positive impact on the performance of
of the employees and organisational outcomes to employees.
a good extent (Zimmermann, Hill, Birkinshaw & H2: The transformational leadership has significant
Jäckel, 2017). positive impact on the performance of
employees.
The point of leadership is imperative to be
contemplated in the distinctive association with METHODS
the employees and the work force due to different This section of the undertaken study discusses the
reasons. The reasonableness of the leadership style research method and how different strategies of
to the kind of association it has been working with methods are used to realize the objectives of the
is one of them. There are diverse leadership styles research.
that exist and have distinctive qualities. (Fu & Desh-
pande, 2014). All these diverse sort of administration Research methods are the basic prototypes where
are connected to various authority styles relying the theoretical values are assessed and hence,
upon the kind of association, the way of life and research method talks about the ways through
the structure of association. Qualities, convictions, which specific paradigm are followed and give the
culture and the structure which decide the need of generalization about results. The present research
the association and furthermore, characterize the uses the descriptive study method (Jackson,
kind of leadership style will be reasonable for the 2015). The cross sectional design is followed to
association (Arnold, Connelly, Walsh, and Martin collect the primary data (Duncan & Fiske, 2015;
Ginis, 2015). It tends to be contended in the writing Agarwal & Al-Qouyatahi, 2017).
that leadership can have the distinctive sort of way
of life or the structure when the vision, objectives For the present study, quantitative method which
and the kind of ventures are extraordinary and relies on the usage of survey-questionnaire tool for
consequently, the administration in this situation collecting the large amount of data in small amount
would accord these elements as well. At that of time and covering the larger area as well. Another
point, when the administration is connected by reason for the use of this method is that it can be
the qualities, convictions, structure and the way of reapplied and hence, the reliability and validity of
life of the association, the association thrives and the data becomes quite high (Blumberg, Cooper
furthermore, the efficiency is upgraded in return & Schildler, 2014). The objectives of the current
(Nanjundeswaraswamy and Swamy, 2014). The research matches the objectives of the quantitative
development of the association gets augmented method so it is feasible to apply this method as it will
when the leadership style well suits the hierarchical help in establishing and assessing the relationship
objectives and target. The sort of the leadership style between the undertaken research variables (Smith,
applies causes the association with employees to 2015; Bowling, 2014).
comprehend the requirements of the representa-
tives, and diverse division working in the association Both primary and secondary data is used for the
in a manner giving them better environment for research. A structured questionnaire is designed
the execution of assigned duties and raise the bar and drafted by taking into account the objectives
of their performance (Frankel and PGCMS, 2019). of the research, experience of researcher and

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International Research Journal of Business Studies | vol. XII no. 01 (April - July 2019)

also, the understanding developed by reviewing SPSS version 21 is adopted to analyse the collected
the already available literature for gathering the data. Various type of analysis is carried out. For the
first-hand primary data (Taylor, Bogdan & DeVault, demographics, the descriptive analysis is done
2015). For getting access to the secondary data the and hence, graphs and tables are made. While for
research largely relies upon the internet, journals, the main questions, the inferential statistics and
books, newspaper and other secondary sources relationship tests are run between the variables.
(Jackson, 2015; Hair, Wolfinbarger, Money, Samouel, Correlation and Regression analysis is done to
& Page, 2015). measure the relationship between the variables.
Along with that Cronbach’s alpha (Tavakol &
The domain of the present study is primarily UAE as Dennick, 2011) is also determined to check the
the researcher currently belongs to the UAE, thus, reliability and consistency of the data.
have access and possess the understanding of the
local market to a good extent. For the current study, RESULTS AND DISCUSSION
the target population is the employees of the five This chapter aims at discussing the results and
large banking institution of the UAE. A sample of 200 findings of the research process. By employing the
employees is selected by using simple random sam- SPSS 21 version the descriptive, as well as inferential
pling technique (Taylor, Bogdan & DeVault, 2015). statistics, are developed in the form of given tables.

Descriptive Analysis of Demographic Profile:

Table 1. Demographic Statistics

Gender
Frequency Percent Valid Percent Cumulative Percent
Male 150 75 75.0 75.0
Valid Female 50 25 25.0 100.0
Total 200 100 100.0

Age
Frequency Percent Valid Percent Cumulative Percent
20 but less than 30 102 51.0 51.0 51.0
Valid 30 or more 70 35.0 35.0 86.0
3.00 28 14.0 14.0 100.0
Total 200 100.0 100.0

Experience
Frequency Percent Valid Percent Cumulative Percent
less than 5 years 94 47.0 47.0 47.0
Valid more than 5 years 106 53.0 53.0 100.0
Total 200 100.0 100.0
Education
Frequency Percent Valid Percent Cumulative Percent
Bachelors 102 51.0 51.0 51.0
Masters 22 11.0 11.0 62.0
Valid Diploma 18 9.0 9.0 71.0
Phd 58 29.0 29.0 100.0
Total 200 100.0 100.0
Source: author’s own compilation from primary data

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Reliability Analysis Reliability Analysis of Impact of Leadership styles

Reliability Analysis of Democratic Leadership on Employees’ Performance
Style
Table 4. Reliability Statistics
Table 2. Reliability Statistics
Cronbach's Cronbach's No. of
Cronbach's Cronbach's N of Items Alpha Alpha Based on Items
Alpha Alpha Based on Standardized
Standardized Items
Items .755 .765 5
.840 .861 5

Table-4 shows the alpha reliability coefficient of the

scale used in the study. Here, the Cronbach’s alpha
Table 2 shows the alpha reliability coefficient of the value is .765 which is acceptable range.
scale used in the study. The Cronbach’s alpha for
the democratic leadership scale is 0.861 which is Correlation Analysis
an acceptable range. Table-5 reflects the output of employing the
correlation test between the study variable
Reliability Analysis of Transformational Leadership which exhibits that the democratic leadership is
Style highly positively related to the transformational
leadership (r=.510**, p<.01). Also, the democratic
Table 3. Reliability Statistics leadership has the positive association with the
employees’ performance (r=.529**, p<.01); and
Cronbach's Cronbach's N of Items
Alpha Alpha Based on the transformational leadership is highly positively
Standardized correlated with the impact on the performance of
Items employees (r=.532**, p<.01).
.827 .834 5

The Cronbach’s alpha for the transformational

leadership is 0.834 which is again an acceptable
range.

Table 5. Correlation Statistics

Democratic Transformational Impact on employee

leadership leadership performance
Democratic Pearson Correlation .510** .529**
leadership Sig. (2-tailed)
N
Transformational Pearson Correlation .532**
leadership Sig. (2-tailed)
N

**. Correlation is significant at the 0.01 level (2-tailed).

Source: author’s own compilation from primary data

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International Research Journal of Business Studies | vol. XII no. 01 (April - July 2019)

Regression Analysis
Democratic Leadership Style and its Impact on Employees’ Performance:

Table 6. Model Summaryb

Model R R Adjusted Std. Error Change Statistics Durbin-Watson

Square R Square of the R F Change df1 df2 Sig. F
Estimate Square Change
Change
1 .529a .280 .273 3.26141 .280 38.104 1 98 .000 1.855
Source: author’s own compilation from primary data
b
Dependent Variable: Impact on the Employees’ Performance

Table 7. ANOVAa

Model Sum of Squares df Mean Square F Sig.

Regression 405.302 1 405.302 38.104 .000b
1 Residual 1042.408 98 10.637
Total 1447.710 99
Source: author’s own compilation from primary data
a
Dependent Variable: Impact on employees’ performance
b
Predictors: (Constant), Democratic leadership

Table 8. Coefficients

Model Unstandardized Standardized T Sig. 95.0% Confidence Correlations

Coefficients Coefficients Interval for B
B Std. Beta Lower Upper Zero- Partial Part
Error Bound Bound order
(Constant) 6.381 2.193 2.909 .000 2.028 10.733
Democratic .612 .529 6.173 .000 .809 .529 .529 .529
leadership .099 .415
Source: author’s own compilation from primary data

Table-6 shows the model summary of the impact of on performance of employees of banking sector is
the main criterion variable which is impact on the measured.
performance by the predictor which is democratic
leadership. The output highlighted that the result The table-8 shows how much the democratic lea-
is significant at.00 and the value of R square came dership and the impact on the employees’ perfor-
out to be .273 which means it explains the 27.3% mance correlate with the each other how much lea-
variance in the data. dership contributes to the performance. The value
of B is 0.612 which shows that it can show increase
The table-7 shows the results of the ANOVA test in unit of 100 as there will be increase of 61.2 while
which reflects the overall significance of the results. applying this to employees’ performance. The value
The value of the p is 0.00 for the model and is less of t is 6.713 which is more than 1.96 and hence, is
than 0.05ban hence, the significant relationship more than acceptable value of 6 and also the value
between the democratic leadership and its impact of p is 0.00 which makes it significant model.

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 Sugandha Agarwal / Leadership Style and Performance of Employees / 1 - 14

Table 9. Residuals Statisticsa

Minimum Maximum Mean Std. Deviation N

Predicted Value 13.7273 21.6863 19.7700 2.02335 100
Std. Predicted Value -2.986 .947 .000 1.000 100
Standard Error of Predicted Value .326 1.032 .441 .134 100
Adjusted Predicted Value 13.2521 21.8551 19.7831 1.99234 100
Residual -8.72729 5.98710 .00000 3.24490 100
Std. Residual -2.676 1.836 .000 .995 100
Stud. Residual -2.821 1.852 -.002 1.011 100
Deleted Residual -9.69798 6.09447 -.01315 3.35040 100
Stud. Deleted Residual -2.928 1.876 -.007 1.025 100
Mahal. Distance .002 8.919 .990 1.611 100
Cook's Distance .000 .443 .017 .063 100
Centered Leverage Value .000 .090 .010 .016 100
Source: author’s own compilation from primary data
a
Dependent Variable: Impact on Employees’ Performance

Transformational Leadership Style and its Impact on Employees’ Performance:

Table 10. Model Summarya

Model R R Adjusted Std. Error Change Statistics Durbin-

Square R Square of the R Square F df1 df2 Sig. F Watson
Estimate Change Change Change
1 .532a .283 .276 3.25458 .283 38.676 1 98 .000 2.032

(Source: author’s own compilation from primary data)

a. Predictors: (Constant), Transformational leadership

Table-11 ANOVAa

Sum of Squares df Mean Square F Sig.

Regression 409.665 1 409.665 38.676 .000b
1 Residual 1038.045 98 10.592
Total 1447.710 99
(Source: author’s own compilation from primary data)
a. Dependent Variable: Impact on Employees’ Performance
b. Predictors: (Constant), Transformational leadership

The table-9 shows the value for the cook’s distance on the performance by the predictor which is
highlight that how much the impact predictable transformational leadership style. The statistics
variable has on the outcome variable. And in the highlighted that the result is significant at.00 and
present study it is used to see the unusual outliers the value of R square came out to be .532 which
and influencing factors of the data. The above table means it explained the 53.3% variance in the data.
shows the residual statistic where the maximum
value for the cooks distance is .443 which is below The table-11 shows the results of ANOVA test which
the 1 and hence it shows that there is no problem shows the overall significance of the results. The
in the data of the study. value of the p is 0.00 for the model and is less than
0.05ban hence, the significant relationship between
Table-10 shows the model summary of the impact the transformational leadership and its impact on
of the main criterion variable which is impact performance of employees is measured.

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International Research Journal of Business Studies | vol. XII no. 01 (April - July 2019)

Table 12. Coefficients

Model Unstandardized Standardized T Sig. 95.0% Correlations

Coefficients Coefficients Confidence
Interval for B
B Std. Beta Lower Upper Zero- Partial Part
Error Bound Bound order
(Constant) 10.341 1.551 6.668 .000 7.263 13.418

Transforma- .488 .078 .532 6.219 .000 .332 .644 .532 .532 .532
tional leader-
ship
Source: author’s own compilation from primary data

Table-13 Residuals Statisticsa

Minimum Maximum Mean Std. Deviation N

Predicted Value 13.7570 22.5422 19.7700 2.03421 100
Std. Predicted Value -2.956 1.363 .000 1.000 100
Standard Error of Predicted Value .326 1.020 .439 .138 100
Adjusted Predicted Value 13.2947 22.7360 19.7790 2.00613 100
Residual -8.75700 6.33845 .00000 3.23810 100
Std. Residual -2.691 1.948 .000 .995 100
Stud. Residual -2.833 1.968 -.001 1.011 100
Deleted Residual -9.71120 6.47344 -.00899 3.34553 100
Stud. Deleted Residual -2.942 1.998 -.003 1.022 100
Mahal. Distance .006 8.738 .990 1.581 100
Cook's Distance .000 .437 .017 .062 100
Centered Leverage Value .000 .088 .010 .016 100
Source: author’s own compilation from primary data
a
Dependent Variable: Impact on Employees’ Performance

The table-12 shows how much the transformational value for the cooks distance is .437 which is below
leadership variable and impact on the employees’ the 1 and hence, it shows that there is no problem
performance correlate with the each other. The in the data of the study.
value of B is 0.488 which illustrates that it can show
increase in unit of 100 as there will be increase MANAGERIAL IMPLICATIONS
of 48.8 while applying this to performance of The growth of the organization increases when the
employees. The value of t is 6.21 which is more leadership style well suits the organizational goals
than 1.96 and hence, is more than acceptable and objective. The type of the leadership applied,
value and also the value of p is 0.00 which makes helps the organization to understand the needs of
it significant model. the employees working in the different departments
and at different levels. Thus, providing them with
The table-13 shows the value for the cook’s distance the better environment for the performance and
which highlights how much the impact predictable motivate them towards achieving the goals as well.
variable has on the outcome variable. And in the The topic of leadership styles is important to be
present study it is used to see the unusual outliers studied in the different sectorial and organizational
and influencing factors of the data. The above table contexts because of the various reasons. One of the
shows the residual statistic where the maximum reasons is the suitability of the leadership style to

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 Sugandha Agarwal / Leadership Style and Performance of Employees / 1 - 14

the type of the organization it has been operating. they implement on the people working under or
There are different types of the leadership styles with them. The leadership style is appropriate for
which exist and have the different type of values the organization on the basis of the function, their
as well. All these different type of leadership are scenario and the people working under them.
applied to different type of the organization, the Moreover, the environment, values and culture of
culture and the structure of the organizations. the organization are the factors which determine
Values, beliefs, culture and the structure are the the style of the leadership to be applied on the
factors which determine the need of an organization organization and help the organization to achieve
and also define the type of leadership style which their goals and objectives.
will be appropriate for the better employees’
performance leading towards organizational On the basis of the findings of the study, some
accomplishments. The present study is relevant and recommendations are given for the future perspec-
significant because of the various reasons. One of tive. Assuring the training and development of the
the primary significance is the insight it is providing employee regarding the leadership style exercised
for the leadership style of the leaders working in in the organization. This would help the employee
the banking industry which is one of the prime to understand the perspective of the leader without
industries in the service sector of an economy. even telling and would prepare them for the bigger
Therefore, the outcomes of this research determine picture and for the larger scale of work. Considering
the significance of the leadership style in a specific the findings of the present study the focus should
setting. Also, the knowledge gap would be filled as be on the promotion of the democratic leadership
there is hardly any study conducted earlier related style where the employee have a say in the decision
to the leadership in the context of the United Arab making process and also the participation is more,
Emirates and hence, this would prove to fill the which makes them motivated for the task assig-
knowledge gap and would add on the literature for ned to them. Free flow of the communication in
such topics in the region. The research process will the organization should be carried out, it means
also give an insight for making the leadership style communication should be facilitated in the entire
better and to mend the associated factors related manner to make sure the sharing of information
to it as well which includes the employee attitude, is done in the right way and communication faci-
rate of success and other subjective issues. . litation should be recommended so that clarity of
objectives can be witnessed. The transformational
CONCLUSION leadership programs should be introduced in the
The study has described the role of the democratic organization; it will help the employee to be creative
leadership and the transformational leadership and to be innovative in their own way. The trans-
which has proven to have the significant relationship formational leadership helps the organization to
with the performance of employees of the banking not only achieve the goals but help the employee
institutions so it concludes that focusing on these to move towards their career goals as well. It is
styles of the leadership in the banking sector can also recommended to conduct the seminars on
prove to be of beneficial to a considerable extent. the importance of leadership and how it impacts
Both the proposed hypotheses are accepted. the performance of employees and organisation
Leaders in an organization are the people who at large. This would give insight to the employees
use their authority in the company using different and leaders and hence will lessen the gap between
leadership styles to lead others. The research on the them and move them consensus.
leadership styles have been conducted since a long
time and they can be different from one another on Limitations And Future Research Directions
the basis of the authority they exercise and skills Each research has certain confinements; the

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International Research Journal of Business Studies | vol. XII no. 01 (April - July 2019)

undertaken study is additionally no special case to fair opinion about current leadership style they are
this. These deficiencies served as a course to lead exposed with. Cross-sectional fashion of the
towards improved future work. Future researchers examination might encourage controlled investigate.
might consider a bigger sample size for progressed Utilizing a longitudinal approach may moreover
understanding of the connection between the address the association between leadership styles
dependent and independent variables. The time and employees’ performance execution over a
and the resources allocated were limited which period of time and done with a few arbitrator or
posed challenge for gathering the primary data from mediator variable (s). Since the attempted study
a large number of respondents. Future researchers focuses upon the banking sector of the UAE,
can allocate more time to encounter this issue. therefore, the assumption of the results to other
There is always the possibility of biasness of countries is inhibited to some extent. Future studies
researcher while analyzing the data because of the could approach the countries within a similar region
subjectivity. Information bias might also exist due or the other to measure the linkage and impact of
to the lack of cooperation form the respondents understudy variables which are leadership styles
especially when it comes to share their frank and and employees’ performance.

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 Sugandha Agarwal / Leadership Style and Performance of Employees / 1 - 14

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