Abstract:
Employee performance has been found to be largely dependent on leadership styles adopted by leaders of various organisations notably Cummins Ghana. This study, therefore, examined the effect of leadership styles on employee performance at Cummins Ghana. More specifically, the study investigated the various leadership styles adopted at the company and how transformational and transactional leadership styles influence employee performance. This quantitative study adopted the explanatory design and underpinned by Fielder’s contingency theory of leadership. Based on the census technique, primary data was gathered from 150 members using structured questionnaires. Accurate and reliable data was obtained from 143 respondents with a response rate of 95.3%. This data was processed using the IBM SPSS Statistics version 24 and analysed using both descriptive (mean and standard deviation scores) and inferential (linear regression) statistical tools. The study found transformational. People-oriented and democratic leadership styles as the most adopted styles at Cummins Ghana. Also, both transformational and transactional leadership styles were found to significantly enhance employee performance at the company. It is recommended to the management of Cummins Ghana that they should develop comprehensive policies and also device strategies aimed at promoting employee development such that the policies should centre on regular employee training packages and career development programmes.
