THE EFFECT OF LEADERSHIP STYLES ON EMPLOYEE PERFORMANCE IN NONPROFIT ORGANIZATIONS: A CASE OF SIKYOMU DEVELOPMENT
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Date
2025-09-18
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Uganda Christian University
Abstract
The study aimed at examining the effect of leadership styles on employee performance in nonprofit organizations: a case of Sikyomu Development. It specifically focused on; examining the
relationship between transformational leadership and employee performance, establishing the
relationship between autocratic leadership and employee performance, and exploring the
relationship between laissez-faire leadership and employee performance in Sikyomu
Development.
The study was conducted utilizing a cross-sectional study design, with both quantitative and
qualitative research methods used. Data was obtained by questionnaires and interviews, and both
basic random and selective sample approaches were used. The study also included a sample size
of 40 respondents who are top management and lower-level employees of Sikyomu Development.
The study findings revealed that transformational leadership enhances workers' performance and
motivation at Sikyomu Development Organisation (r = .644**, p < .05) by encouraging individual
recognition, participation in decisions, vision, teamwork, and innovation. In contrast, autocratic
leadership lowers performance (r = -.556**, p > .05) according to over-controlling, low
communication, and reduced employee autonomy, even though it offers quick decision-making
and oversight for lower-skilled workers. Laissez-faire leadership had a generally positive but
multi-faceted effect on performance (r = .623**, p < .05), since providing autonomy and decisionmaking freedom enhances independence, self-confidence, and innovativeness among selfmotivated employees, but ambiguity and inconsistent performance among less regimented
employees.
Finally, the study recommended the need for Sikyomu Development to enhance transformational
leadership, reduce overreliance on authoritarian methods, use laissez-faire leadership with caution
and guidance, establish leadership programs, and implement systematic feedback and appraisal
systems to promote employees' motivation, creativity, accountability, and overall performance.
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Undergraduate Research