Contribution of leadership styles to organizational performance in the South African banking sector

Masa Sylvester Motadi
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Masa Sylvester Motadi: University of Venda

International Journal of Research in Business and Social Science (2147-4478), 2024, vol. 13, issue 5, 310-323

Abstract: The main aim of this study was to assess the efficacy of different leadership styles on the performance of organisations in the banking sector of South Africa. The outcomes are expected to be utilised in order to construct leadership development initiatives, which will facilitate the cultivation of leadership competencies that contribute to the success of a company. The research conducted a synthesis of 50 empirical studies through the use of secondary source content analysis. A one-sample t-test was used to assess the presence of a statistically significant association between organisational success and a manager's lifestyle. A unidirectional analysis of variance (ANOVA) was conducted to determine the correlation between different leadership styles and organisational performance. The Pearson's Correlation Coefficient was employed to examine the correlation between leadership styles and organisational performance. Research has confirmed that Transformational leadership has a positive impact on financial success, customer satisfaction, and staff engagement. Transformational leaders foster innovation and exceptional performance through their inspiring vision and tailored assistance. Transactional leadership ensures operational stability and adherence to regulations, but it does not have a substantial impact on staff engagement and innovation. Servant leadership emphasises the establishment of a supportive work environment through the enhancement of staff morale and customer service. An optimal approach for enhancing organisational performance in the South African Banking sector is to adopt a well-rounded strategy that incorporates transformational, transactional, and servant leadership principles. The Transformational leadership style has been determined to be the most effective in the banking sector, as it has shown the highest improvement in organisational performance. Banks executives and managers should consider embracing transformational leadership, cultivating innovation, and allocating resources towards staff development. Key Words:Transformational Leadership, Transactional Leadership, Servant Leadership, Organizational Performance, South African Banking Sector, Employee Engagement, Customer Satisfaction

Date: 2024
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