Mohammed Hussan

Rokshana Pinky

IMPACTS OF LEADERSHIP STYLE ON EMPLOYEE'S PERFORMANCE

Thesis
CENTRIA UNIVERSITY OF APPLIED SCIENCES
Degree Programme
March 2023
ABSTRACT

Centria University Date Author

of Applied Sciences March 2023 Mohammed Hussan,
Rokshana Pinky
Degree programme
Business Management
Name of thesis
IMPACTS OF LEADERSHIP STYLE ON EMPLOYEES PERFORMANCE
Centria supervisor Pages
Maria Timo-Huhtala 62 + 4

Leadership style refers to how a leader deals with his subordinates and gets the task done. In the past,
leaders used an authoritative leadership style, considered the only way to deal with employees.
However,leadership style can lead to better employee performance if adequate according to the job.
Research indicates that when a leader respects the employees and deals with them by giving them
respect, the followers are more likely to perform better. Today, true leaders valuetheir employees and
make policies and procedures that facilitate them and allow them to work better. Flexible work
timing, work-from-home opportunities, and other similar facilities are provided to the employees to
ensure they can work more productively.

This research examines leadership style and its influence on employee performance in various types
of organizations in various locations. This study also demonstrates how improved employee
performance leads to overall corporate success.

In this study, a quantitative research design with a well-structured questionnaire was used. It
concentrated on the presentation and the analysis of the results. A questionnaire containing questions
was uploaded on wapprapol and 40 persons responded.

Key words
Employee’s performance, Leadership style, Profitability, Transactional leadership, Transformational
leadership
ABSTRACT
Table of Contents

1 INTRODUCTION ...............................................................................................................................1

2 DIFFERENT TYPES OF LEADERSHIP ........................................................................................6

2.1 Leadership Style and Employee Performance ...........................................................................6
2.2 Literature Review .........................................................................................................................8
2.3 Transformative and Transactional Leadership .........................................................................9
2.4 Leadership and Contentment in One’s Work .........................................................................11
2.5 Leadership based on transformation and the performance of employees ............................13
2.6 Transactional leadership and evaluation of how well employees carry out their
responsibilities ............................................................................................................................14

3 JOB SATISFACTION ......................................................................................................................15

3.1 The Level of Employee Satisfaction ..........................................................................................15
3.2 Leadership Style and Organizational Performance ................................................................19
3.3 Providing Specifies Regarding Leadership ..............................................................................22

4 METHODOLOGY AND DATA ......................................................................................................24

4.1 Population ...................................................................................................................................24
4.2 Sample .........................................................................................................................................24
4.3 Establishment of Indicators by Variable..................................................................................25

5 RESULTS...........................................................................................................................................26
5.1 Presentation and Analyzing the Result ....................................................................................26

6 DISCUSSION AND CLARIFICATION .........................................................................................39

6.1 How Important It Is to Have Good Leadership ......................................................................39
6.2 A way to lead that brings about a change in the situation ......................................................40
6.3 Theories X And Y Respectively .................................................................................................44
6.4 Performance of the Employees ..................................................................................................44
6.5 The Effectiveness of the Workforce and Various Styles of Leadership ................................44

7 SUMMARIZATION AND CONCLUSION ...................................................................................46

7.1 Recommendation for Future Work ..........................................................................................46

REFERENCES ......................................................................................................................................48

APPENDIX 1: QUESTIONNAIRE.......................................................................................................1

APPENDIX 2 ...........................................................................................................................................5

FIGURES
FIGURE 1: Leadership style and employee performance ..................................................................9
FIGURE 2: Theoretical Framework ...................................................................................................16
FIGURE 3: Leadership style has a significant impact on organizational success ..........................28
FIGURE 4: It is important for a leader to inspire and motivate subordinates to work effectively
.................................................................................................................................................................29
FIGURE 5: It is a good idea for a leader to reward subordinates on a periodic basis ...................30
FIGURE 6: Another wonderful option for a leader is to officially celebrate an employee's
birthday ..................................................................................................................................................31
FIGURE 7: A leader should make all decisions on his or her own and rarely seek input from
followers .................................................................................................................................................32
FIGURE 8: Workers should share their thoughts with the leader, which may assist the
organization to achieve its aim more readily ......................................................................................32
FIGURE 9: Leaders should distribute greater authority to their subordinates .............................33
FIGURE 10: It is the responsibility of an excellent leader to inquire about the well-being of their
employees ...............................................................................................................................................34
FIGURE 11: If necessary, the leader must arrange for a loan from the organization for
employees based on their working ability ...........................................................................................35
FIGURE 12: To increase organizational productivity, leaders must motivate their employees ...36
FIGURE 13: A correct leadership style contributes to the organization's profit maximization ...36
FIGURE 14: A poor leadership style results in the misallocation of precious resources ...............37
FIGURE 15: Immoral industrial practices are encouraged by poor leadership ............................38
FIGURE 16: The Domains of Leadership ..........................................................................................39

TABLES
TABLE 1: Gender Respondents ..........................................................................................................26
TABLE 2: Age of Respondents ............................................................................................................27
TABLE 3: Length of employment, Respondents ...............................................................................27
TABLE 4: Position Holding .................................................................................................................28
 1

1 INTRODUCTION

Leadership is the fundamental basis of the company, and researchers argue that if the leadership is
accurate, it can motivate and guide employees, increase work efficiency and create an environment of
innovation inside and outside the entity. This criterion will be incomplete if it is relegated that
leadership within the business context is based on the fact that leadership is born with the person
capable of naturally influencing the actions of the members of the work team and forming a profile
that allows control. Feelings, affections, abilities, skills and intellect bring harmony, productivity,
effectiveness and efficiency to the company (Pratama, 2022). Controlling all these aspects means
positive results for the organization since the behaviours and traits connect with the subordinates'
behaviour. Public affairs experts state that leadership in organizations is directly related to mandatory
authority, turning authoritarianism into an easy and correct path for society; because they believe that a
good leader is one who vociferates or commands the most.

Consequently, leaders rarely work hard, much less admit their mistakes and flatly avoid improving
their strategies, preparing more for the area in which they work or making the right decisions
according to the needs of internal and external customers (Sougui, 2015). This theory is extremely well
supported by the research on leadership, which uses surveys to show that persons in positions of
authority lack the qualities of leadership, leading to a lack of cooperation in complex situations
involving processes, norms, and behaviour (Saleem, 2014). The absence of leadership within the
companies creates consequences that affect the results of the goals and objectives. Therefore,
companies that maintain good leadership consider that they directly help employees and assume
responsibility in each of the organizational departments, granting specific results in the short term. The
work environment is made up of a series of factors, both physical and emotional, that affect the
behaviour and performance of the organization's human talent. Superiors have good work behaviour in
the evaluated institution; however, 50% of respondents classify leaders as authoritarian bosses who
designate high levels of pressure on human talent, while the other 50% of the sample considers that
there is a hierarchical group that demonstrates attitudes, competencies, and actions of volumetric
leaders and Futurists ready for collaboration and understanding with their workers (Alheet, 2021).
Despite the significance of SMEs, their employees' lack of dedication results in low productivity; this
is a result of managers' incorrect management of situations and a lack of leadership, which results in a
poor work environment that demotivates their employees. Considering this issue, it aims to provide the
 2

organization with new guidance on what leadership style should be used to improve the work
performance of its human resources (Obasan, 2014).

In order to address the research question, "How do employees perceive the impact of the leadership
style on their performance and how does leadership influence job performance. This study will look at
the topic.

This study will follow a quantitative approach following the surveys, that will be carried out with the
personnel involved; middle managers, to identify leadership styles for sustainability variables to
managers. An investigation was conducted and developed in a theoretical framework with a statistical
tool that allowed us to observe the situation of the company. Contingency and behavioral theories will
be incorporated to investigate the impact of leadership style on employee performance. Employee
performance is affected by the type of leadership that is being applied within the company by
managers. It is a question that is answered exactly once the results obtained have been analyzed in this
investigation. It can be observed that the leadership applied by the managers of this company has not
been the most suitable for the development of good environment employment, affecting the
performance of talented staff in the execution of their activities.

An investigation has been conducted and developed in the theoretical framework with a statistical tool
that allowed to observe clearly the situation of the company. Job performance is affected by the type of
leadership applied within the company by managers, and it is a question that is answered precisely.
Once the results were obtained, they have been analyzed in this investigation. It can be observed that
the leadership applied by the managers of this company have not been the most suitable for developing
a good environment of employment, affecting the performance of talented human in the execution of
their activities. It is intended to give the company a new direction on what leadership style must be
applied to achieve a better work performance of its human talent and the improvement of a good work
environment, together with the participation of its managers (Pratama, 2022).

According to jones (2019), employee performance is established as the ability of an individual to

produce, manufacture and execute tasks quickly, with less effort and increased quality. Apart from
 3

this, organizational diagnoses were created that evaluate each employee's performance and potential
regarding the activities he carries out within the company. They are those actions or behaviors
observed in employees that are relevant to the organization's objectives. It is appropriate to highlight
that the aforementioned goes hand in hand with the performance evaluation that ends up being an
instrument pertinent to improving capital results.

Employees' performance is essential because respect for corporate rules is increased due to the partial
recognition of employees who deserve a salary increase. It helps in the diagnosis of the selection of
positions, promotions, or dismissals. It helps in planning in decision-making that optimizes
professional capacities. It enables one to perceive the errors in the design of the job or position more
clearly. It helps in the mastery of demanding external situations and respect for family problems. To
measure employees' job performance, the following points must be taken into account: self-assessment
of performance by the worker, ability to adapt to technological changes, problem-solving skills, and
organization in the execution of activities (Garcia and Martinez, 2020). Therefore, the development of
good work performance practices strengthens the entity's work environment. Work stress can cause
anxiety, irritability and sadness, and the exacerbation of various emotions. In addition to these
emotional reactions, we can detail other symptoms: lack of performance, physical and mental
exhaustion and so forth.,. When this pathological condition is prolonged and intense, it can generate
mental disorders and other health. Work capacity manifests itself in the attitudes carried out by the
worker in an organization expressed through your experience, knowledge, skills, or intelligence that is
reflected in a given work area. The ability to participate in capacity building and skills that an
employee enhances via open, direct communication; on this basis, employees will know themselves,
resulting in social harmony and personal excellence. The actions of the work environment will be
developed so that the organization achieves its practical objectives which will allow for measuring
each worker's performance. Age, sex, and employee identification with the company are all factors that
are taken into account when determining behavior and characteristics presented by the employee in the
workplace for the accomplishment of the objectives and goals set for its purpose (Saleem, 2014).

There is a correlation between the motivation projected by the leader and an organizational climate
satisfaction, which indicates that when the leader promotes the improvement of the quality of
performance, employees will feel that their work helps improve the quality of the organization
(Bass,1990). Effective leadership has a significant impact on various dimensions of job performance,
 4

particularly on motivation. When there is a good leadership style in place, it allows for efficient and
effective task execution by staff members within an organization. The effort that employees put into
their work is directed towards the organization's success, with a sense of responsibility and a focus on
fulfilling their role within the company. This is reflected by the positive outcomes of good leadership
practices (Avolio & Yammarino,2002).

Based on the analysis of the managerial mesh of Blake and Mouton, where the different styles of
leadership, together with the advantages and disadvantages of it. It is intended to give the company a
new direction on what leadership style must be applied to achieve better work performance of its
human talent and the improvement of a good work environment, together with the participation of its
managers (Alheet, 2021).

The aim of this paper is to analyze the solution that a company adopts to determine which leadership
style best fits its daily activities. Depending on the correction made, the company may adopt a
leadership style that is vigorous in conflict resolution, which can increase job performance in the
future. Achieving cooperation harmoniously among colleagues is an important task in human
resources. As Saleem (2014) stated, a positive work environment strengthens the entity's work
environment, and there is a correlation between the motivation projected by the leader and
organizational climate satisfaction, which indicates that when the leader promotes the improvement of
the quality of performance, employees will feel that their work helps improve the quality of the
organization.

The association above must always be a double track, seeking not only the benefit of the company but
also that of its creators. In this perspective, leadership plays a fundamental role because, depending on
how to manage an organization, cooperation between leaders and followers can contribute in an
effective way to achieving the goals and objectives of the organization throughout its history (Sougui,
2015).

The style of the managers identified in the company is determined and authoritative, as this is the
dominant style; this style of leadership is determined because managers make all the decisions in the
company, good and bad, they control the work, they cause that the workers cannot participate in
decision-making decisions, does not show sufficient motivation. The level of work performance of
workers in the company is low, and we can affirm that the low level is due to the leadership of the
 5

manager of the company affecting good productivity, communication, and motivation of employees.
The data indicated that the leadership's influence levels were low based on the elements of motivation,
communication, and commitment that the leaders of executive areas must possess, which affected the
development of the tasks, administrative skills, skills, and quality of work as part of job performance.

According to Saleem (2014), the manager of any organization must practice a participatory leadership
style, also called commitment fully. This style can increase job performance by balancing adequate
training and worker acceptance, thus maintaining a high focus on people and results. It is
recommended that future work define leadership styles in the participation of followers assigned to all
functional areas, to strengthen or counteract perceptions of collaborators analyzed. Additionally,
further investigation is necessary to determine the impact of leadership on the effects of organizational
transformation, such as employee performance, innovation in change, organizational culture, mental
health, and other factors that are directly influenced by the leadership style of managers towards their
staff.
 6

2 DIFFERENT TYPES OF LEADERSHIP

There are multiple typologies of leadership styles. However, the importance of distinguishing four
dimensions of leadership has been determined: authoritarian leadership, participative leadership,
collaborative leadership, and transformational leadership (Smith, 2010). These are dimensions that are
not mutually exclusive. The participative leadership style is characterized by the leader considering the
employees' opinions and asking for feedback. Similarly, leaders ask for advice from their subordinates
when finding a solution to any problem. An authoritarian leadership does not consider followers'
values or ask them for direction (Mohiuddin, 2018).

The collaborative leadership style means that leaders and followers work as a team and try to resolve
the problem together. The transformational leadership style is one where the leaders inspire the
followers to adopt a specific pattern of working (Ilham, 2017).

2.1 Leadership Style and Employee Performance

Studies that have related the decision-making process to decision outcomes have adopted different
ways of defining and measuring such outcomes. However, it is possible to classify the definition and
measurement of the results of the decision-making process into three categories: decision formulation,
decision implementation, and organizational effectiveness. Concerning the formulation of the decision,
the investigations focus on measuring the results of the process through the rigor of the decision, the
number of alternatives generated, the quality of the solutions developed, the achievement of the
objectives, the value of the decision, among other similar aspects (Memon, 2014).

In turn, it is possible to find research in which there are both formulation elements and decision
implementation aspects. The implementation of the decision is a visible result of the decision-making
process. However, together with considering variables such as the level of development reached by the
determination, the commitment, adherence, understanding, and affective acceptance achieved by the
decision, and the perception of success or failure of the decision, it is necessary to incorporate into the
analysis other implantation variables such as trust, obedience, social harmony and satisfaction with the
results. On the other hand, like the present work, some investigations link the decision-making process
directly and immediately with the effectiveness or performance of the organization (Garcia, 2018).
 7

Among these studies, there are works in which performance or effectiveness is measured through
subjective indicators, objective indicators and a combination of objective and subjective indicators. As
an example of the first case, it is suggested that the participation of mid-level managers in
formulatingand implementing the strategy is positively related to the organization's performance.

In this research, the organization's performance is measured through a subjective index that assesses
global effectiveness, competitive position, return on assets, operational efficiency, global financial
performance, and growth rate. Along the same lines, it is suggested that consensus in strategic
decision-making impacts the organization's performance only when the defined business strategy is the
differentiation strategy. For researchers, the firm's performance arises from the subjective assessment
of the research participants about the firm's adaptability, efficiency, and effectiveness (Udovita, 2020).
Similarly, it is postulated that a high level of consensus does not necessarily lead to a good
performance of the organization; in this sense, the consensus seems to be a necessary condition but not
sufficient for the company's success. The authors measure organizational performance according to a
relative assessment of firm performance compared to the implementation of firms operating in the
same industry concerning profitability and sales (Baig, 2022).

On the other hand, many investigations have used objective measures to measure organizational
performance. For example, it is concluded that team size has a more positive influence on performance
in turbulent environments than in stable environments and that the centralization of decisions
adversely affects the organization's performance. In this research, the organization's performance is
measured by return on assets, sales, and equity. Similarly, it is concluded that functional and
educational heterogeneity influence the organization's performance. The authors establish that the
market share growth and the increase in profits measure the organization's performance.
Another example in this direction is the research, which discovers that rationality has positive effects
on the organization's performance, the more dynamic and less hostile the environment. The authors
measure the organization's performance by a set of objective indicators: return on assets, sales, and
sales volume. Similarly, it is found that there is a positive relationship between the degree of
agreement in the teams that make decisions and the organization's performance. Organizational
performance is explicitly measured by return on assets (Smith & Johnson, 2018). Finally, it is worth
mentioning that some investigations have combined subjective indicators with objective indices to
measure the organization's performance (Lee et al., 2015) For example, a model is built which explains
that the centralization of power and conflict gives the bases of political behavior in organizations. For
 8

the authors, the performance of the organization is measured by the subjective assessment on a
numerical scale made by the top management regarding the performance of the company; the
comparative classification of the evaluation of the performance of the firm in comparison with the
assessment that the top manager has made about the performance of the competition; In addition,
objective measures such as sales growth and profitability are considered.

The same goes for a model that establishes the strategic priorities for businesses working in fast-paced
situations. The organization's effectiveness is measured through the subjective assessment made by the
primary manager compared with other firms in the industrial sector. Still, objective measures such as
sales and profitability are also considered. The present investigation constructs a subjective measure of
effectiveness, emphasizing the distinctive features of public organizations. In specific terms, a set of
factors were used, such as user satisfaction, satisfaction of Ministries and Sponsors, satisfaction of
officials, positioning and relative position of the organization, and economic, financial, and budgetary
performance. Regarding each factor, its level of importance and achievement was detected in such a
way as to build a relative index of effectiveness (Guterresa, 2020).

2.2 Literature Review

According to Abutabenjeh et al., (2018), the setting in which organizations have functioned throughout
the past few decades has been characterized by unexpected and unplanned changes, resulting in
organizational instability. Therefore, for firms to survive in the global market, they must quickly adapt
to new changes. In addition to becoming "one of the most representative components of the dynamics
that distinguish the modern organizational environment," this factor is prompting organizational theory
and practice to become increasingly preoccupied with the issue of leadership (Jones, 2016, p. 35). As a
result, it appears that businesses have concentrated on leadership as a source of competitive advantage.

Regarding the aforementioned, there is a consensus that the quality of an organization's leadership will
have a substantial impact on its success or failure. Therefore, it should come as no surprise that, in
today's corporate climate, a major percentage of the annual budget is allocated to the development of
managers in order to aid them in becoming effective subordinate leaders (Johnson & Smith, 2019).

Leadership is a topic that has garnered a significant amount of research in the field of social
psychology of companies, as it is considered an essential aspect of the success and operation of firms.
 9

The definition of leadership is "the capacity to influence a group to achieve its objectives" (Northouse,
2016, p.6). A review of the literature conducted using EBSCO data manager and the keywords
"leadership" and "psychology," limited to scientific publications between 2010-2016 and the present,
yielded 1,751 references to the issue (Akca, 2017).

The ability to differentiate between effective and ineffective leaders, as well as leaders and non-
leaders, has also been examined by scholars. Transformational and transactional styles of leadership
are among the most well-known typologies in this regard and will be analyzed further in this study due
to their relevance (Bass & Riggio, 2019).

2.3 Transformative and Transactional Leadership

It is vital to note that, over the past two decades, have matured and acquired a considerable body of
research, with the transformational style as one of those that have had the greatest influence on the
leadership literature and accumulated the most empirical proof (Avolio and Yammarino, 2013).
Similar to past studies, it has been proven that this variable is a powerful predictor of organizational
and individual performance indicators (Figure.1).

FIGURE 1: Leadership style and employee performance

Now, Ali et al., (2013) distinguish the two and incorporate both concepts into their theory of political
 10

leadership. He says that the contribution leaders and followers make to one another distinguishes
transactional from transformative leadership styles ( Figure.1). Transformational leaders create a
purpose that transcends short-term objectives and focuses on higher-order internal demands. In
contrast, transactional leaders focus on the efficient allocation of resources. In other words, the
transactional leader provides followers with what they want in exchange for what the leader desires,
whereas the transformational leader aids followers in discovering their needs (Ali et al., (2013).

Ali et al., (2013) advance their theory of transformative leadership by integrating a range of additions
and adjustments to Burns' method. First, Bass disputes Burns' claim that the two mentioned leadership
philosophies represent the poles of a continuum (where a leader with high transformational strategies
was expected to have low levels of the other behaviors), arguing that these concepts are distinct and
that the most effective leaders combine the two. Second, Ali constructed his theoretical framework by
differentiating eight qualities, of which three pertain to the transactional approach. These criteria were
based on the observable qualities of both forms of leadership.

As previously indicated, transformational leadership has four dimensions. Charisma, or idealized

influence, measures the extent to which a leader emphasizes trust, takes a stand on contentious issues
and situations, emphasizes the value and purpose of commitment, is aware of the moral ramifications
of his actions, and establishes an emotional connection with his followers (Bass and Riggio, 2006).
Inspirational motivation is the extent to which a leader can develop a compelling future vision, drive
his followers to reach ambitious goals, talk with passion and optimism, and inspire and encourage
people around him. Intellectual enlightenment is distinguished by testing presumptions, taking
chances, and requesting ideas from followers; creative leaders inspire and foster innovation in their
subordinates. Finally, individualized consideration represents the amount to which a leader considers
people as separate individuals, taking their needs, talents, and aspirations into account. It also displays
their ability to listen carefully, provide direction, and impart knowledge. It is vital to underline that
these traits have been supported by multiple investigations.

In contrast, the transactional approach employs three separate sorts of techniques (Alqatawenh., 2018.)
Contingent reward refers to the extent to which a leader creates constructive and good transactions or
exchanges with his followers in exchange for their effort, i.e., they ensure incentives for exceptional
performance and recognize accomplishments. Management by exception, on the other hand, initially
referred to the extent to which a leader takes corrective action in relation to the consequences of
transactions with his subordinates. However, (Al-Sada, 2017). offered adequate evidence to separate
 11

Active and Passive management via an exception. The decision of the leader to act at a specific point
divides them from one another. This strategy's trades are designed to aggressively persuade followers
to avoid making blunders. Active leaders watch the actions of their followers, forecast possible
problems, and take remedial action before their escalation. Practitioners of passive management wait
until issues occur before taking action.

Amussah, (2020) refers to the laissez-faire or non-leadership style as a non-Intervention Policy, which
results in the absence or avoidance of leadership; that is, they shirk their responsibilities, wait to make
decisions, and don't show up when needed. Even though this method partially resembles management
by passive exception, it suggests a lack of leadership (transformational or transactional), thus it should
be addressed differently than other transactional features.

The transformative, transactional, and laissez-faire notions have been separated intellectually. The
multifactor leadership questionnaire was developed researchers by as the first instrument to measure
them. This is one of the most widely used instruments for measuring transformative leadership. It is
vital to note that various research and reformulations have explored its psychometric features and
factorial structure since its introduction. In light of this scenario, a modified version of the multifactor
leadership questionnaire (MLQ) form 5X was used for this inquiry (Bass and Avolio, 2003).

In contrast, Multiple studies have investigated the relationship between transformative and
transactional leadership styles and organizational qualities and indicators. Research has demonstrated
that these leadership styles are positively associated with attributes such as motivation, job satisfaction
among followers, leader satisfaction, leader performance, group or organizational performance, and
team efficacy. Consequently, transformative and transactional leadership styles have become the
dominant approaches in leadership research (Andersen, 1995; Judge & Piccolo, 2004; Yukl, 2010)

2.4 Leadership and Contentment in One’s Work

Armstrong (2005) the attitude toward one's work that has garnered the greatest attention from
researchers is that of job contentment, also known as employees’ performance and job satisfaction.
Although systematic research into its existence and origins did not begin until the 1930s, many authors
had already investigated different employee attitudes towards a variety of disciplines of work. For
instance, one of the first subjects that were discussed was how to lessen the effects of exhaustion. After
 12

that, they moved on to investigating subjects such as the length of working hours and breaks.

Regarding the conceptual delimitation of this phenomenon, it is important to note that job satisfaction
is an attitude and that while many definitions of attitudes have been proposed, the majority of them
have placed an emphasis on the affective component of attitudes, which refers to the emotions or
feelings that are evoked in response to the attitudinal object, but have neglected to take into account
the cognitive (beliefs about the positive or negative characteristics of the attitudinal object), as well as
the behavioral (refers to behaviors or past experiences related to the attitude object). Because of this, a
revised definition has been proposed in recent years that seeks to investigate this mindset more
comprehensively, that is, by taking into account the cognitive component (Basias et al., 2018). This is
because it seems logical to consider that job satisfaction is dependent on how people feel and think
about their work. According to this point of view, the term "workplace burnout" refers to "an internal
condition that is reflected positively or negatively by the emotive and/or cognitive appraisal of work
experiences"(Maslach and Jackson, 1981). The behavioral reactions that are determined as a result of
this evaluation are not considered to be a part of the definition because they are frequently considered
to be a byproduct of job satisfaction.

On the other side, authors like Basias et al., (2018); Armstrong (2005); Amussah (2020) contend that a
broader viewpoint is required, describing it as a person's attitude or a mixture of attitudes toward their
experience and work setting. These authors believe that a more holistic perspective is necessary. These
perspectives may be generalized about employment or may be directed toward particular aspects of it.
According to the definition provided by Basit (2020), job satisfaction is a multidimensional construct
that encompasses specific components of job satisfaction related to payment, work, supervision, career
opportunities, perks, organizational practices, and connections with coworkers.

It is important to keep in mind that a person's work entails much more than the obvious activities of
shuffling documents, waiting for customers, or driving a vehicle; it also includes dealing with
customers, colleagues, and bosses, adhering to organizational rules and customs, meeting performance
criteria, and so on. As a result, the definition of satisfaction as a general attitude is broad. This is why it
is important to know that a person's work entails much more than the obvious activities as a
consequence of this, both points of view have the potential to help deliver a more complete picture of
job satisfaction.
 13

These new models take into consideration not only the psychological component of the process but
also the individual's relationship with many aspects of their environment (Bass, 1990). In this way,
those who argue that job satisfaction is a matter of personality are opposed by authors who argue that
what influences the degree of satisfaction is the individual's interpretation of the circumstances of the
job, and their work environment, an interpretation that includes both personal and environmental
factors. In this way, those who argue that job satisfaction is a matter of personality are opposed to
those who argue that job satisfaction is a matter of personality.

2.5 Leadership based on transformation and the performance of employees

According to Bass (1990), the goal of transformational leadership is to shift people's hearts and minds,
extend their vision, insight, and knowledge, and clarify their motivation to produce conduct that is
compatible with values and principles. This can be accomplished by changing people's hearts and
minds, expanding their vision, insight, and knowledge, and clarifying their motivation. In the long run,
this will result in ongoing transformation as well as self-perpetuation. According to multiple empirical
studies (Hater and Bass 1985; Burns 1978; Avolio and Howell 1993; Bass 1990), leadership styles
affect employee performance. Very effective leaders outperform weak leaders, and transformative
leadership produces significantly greater performance than other leadership styles. According to
Brand, Heyl, and Maritz (2000), there is still ongoing study being conducted in the service, retail, and
industrial industries, as well as in the armed services of the United States, Canada, and Germany,
which demonstrates that leaders who adopt transformational leadership have very little impact on the
performance of their subordinates when compared to the actual victories of transformational leaders.
In addition, transformational leadership boosts employee performance in the field (Bass, 1985) as well
as in the laboratory (Frost and Howell, 1989). According to Avolio and Bass (1990), leaders who
practice transformational leadership assist their people by providing support and encouragement,
creating a vision, generating emotion and identification, and assisting them in comprehending
circumstances from a new point of view. According to Suharto (2005), employing even more typical
transformational leadership practices will significantly boost the performance of psychologically
empowered subordinates.
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2.6 Transactional leadership and evaluation of how well employees carry out their
responsibilities

Transactional CEOs motivate their workers in a variety of methods, claim Riggio and Bass (2006).
Management by exception and dependent compensation are two of these tactics. When a prize is
contingent, it means the leader has committed to fork over a specified sum of money in return for the
accomplishment of a given task or assignment. MBE can be active (MBEA) or passive (MBEP),
however transactional leadership is most frequently associated with active MBE. Both active and
passive MBE is possible. By employing active MBE, the leader keeps an eye on what's happening and
takes the necessary action to prevent errors and deviations from the specifications.
Excellent leadership, in the opinion of McGrath and MacMillan, is the key to even greater levels of
performance when there are more obstacles to overcome (2000). The findings of studies by
Yarmohammadian, (2006) and Spangler (2005) all show that transactional leadership motivates staff to
perform better at work. According to Bass (1985), transactional leadership is in charge of setting
requirements for the caliber of employees' work. Because the benefits are conditional, employees must
meet certain performance standards and fulfill their tasks to get full reimbursement for their expenses.
The amount of money an employee makes and the amount of effort they put into their work is related
to each other.
 15

3 JOB SATISFACTION

According to Spector (1997), job satisfaction is defined as "a favorable emotional state that people get
from their work or occupational experiences." According to Spector, a person's degree of job
satisfaction directly correlates with how happy or unsatisfied they feel about their jobs
(Yarmohammadian, 2006). In a recent study, Bushra and coworkers (2011) defined job satisfaction as
how people feel about their jobs or workplaces as a result of their experiences. Zogning,(2017) claims
that a number of variables, such as compensation, benefits, recognition of accomplishments,
communication, working conditions, job significance, independence, coworkers, relationships,
employment with a reputable company, job security, workplace flexibility, supportive management,
and genetic factors, can have an impact on an employee's level of job satisfaction Yukl, (2006). The
findings of Zogning,(2017) indicate that one of the most important factors affecting people's level of
job satisfaction is how leadership is exercised.

3.1 The Level of Employee Satisfaction

Numerous studies have shown that the ability of leaders to reform organizations and improve the
contentment of employees is of significant importance (Avolio & Bass, 1991; Judge et al., 2004). The
positive relationship between transformative leadership and employee happiness has been shown
through a variety of empirical studies. In their investigation, Sulieman Ibraheem and his associates
(2011) found a link between transformative leadership and one's level of professional fulfillment.
Additionally, Bateh and Heyliger (2014) thought that transformational leadership and employee
happiness were related. Therefore, transformational leaders must promote and foster the innovative
ideas of their team members.

Contrary to CEOs who are disinterested or uninvolved, transformational leadership may result in
higher levels of contentment among employees (Metwally & El-bishbishy, 2014). Experts in the field
believe that a leader who is only concerned with the performance of his or her followers and who pays
no attention to the performance of his or her employees will not be able to get the best performance
from those people (Cumming et al., 2010). Givens (2008) asserts that transformational leaders
motivate their followers to put in more effort by sharing a common vision for their future growth and
fulfillment.
 16

Hongnou et al. discovered that transactional leadership has a strong and positively associated
association with job satisfaction (2014). Effects might be observed in areas including achievement,
acclaim, money, progression, working circumstances, and relationships with coworkers. In a previous
study, Rizi et al. (2013) discovered a link between transactional leadership and job satisfaction.
However, other experts believe that transactional leadership is not the main element that affects how
happy employees are with their jobs. The results of Ali et al. (2013) indicate that there is no significant
relationship between levels of job satisfaction and a transactional style of leadership.

The goal of this study is to examine the various leadership philosophies used in the Swedish fast-food
sector, including transformational and transactional leadership, as well as how these philosophies
affect employee productivity and well-being. Additionally, this study aims to look into how the
leadership styles of transactional and transformational leaders affect how much employees enjoy their
jobs.

The study's second goal was to explain and compare the two different leadership philosophies in order
to ascertain whether or not they each contributed to higher or lower levels of employee happiness and
productivity.

Independent Variable Dependent Variable

Transformational Employee
Leadership Performance

Transactional Employee's
Leadership Satisfaction

FIGURE 2: Theoretical Framework

 17

It is important to highlight the most recent, extensive, and comprehensive meta-analysis that Yukl,
(2006) has conducted among the previous research done in this area. This research examines the
relationship between transformational, transactional, and laissez-faire leadership styles and six
leadership characteristics, including follower happiness with their job and contentment with the leader.
This investigation was made possible through the compilation of a significant number of previous
studies on the topic. The authors came to the conclusion that a transformational strategy has a link with
employee job happiness whilst a transactional style has a relationship with employee job happiness and
both of these relationships are significant (Zogning, 2017). Another significant finding is the
correlation between these two types of leadership and the level of satisfaction that followers have with
their leader. Thus, the relationship between the transactional style and the aforementioned variable is
discovered, as is the level of interaction between the transformational style and pleasure with the
leader. Also discovered is the level of interaction between the transactional style and pleasure with the
followers. It is important to note that the correlations are reasonably significant, even though there are
slight variances in the feature to which satisfaction points are given. This indicates that skilled
leadership is very important. It is important to note that the correlations are reasonably significant,
even though there are slight variances in the feature to which satisfaction points are given. This
indicates that skilled leadership is very important.

A comparable meta-analysis was carried out by Yarmohammadian (2006), who investigated the
association between the consideration and structure dimensions, as well as follower satisfaction with
their work and satisfaction with the leader. There was a link of 0.46 between consideration and a
follower's pleasure with his employment, while there was a correlation of 0.78 between satisfaction
and the leader. Both of these values, 0.22 and 0.33, were significant in the structure initiation analysis.
In two earlier pieces of research, Wilson (2014) and Wikaningrum et al., (2018) found that the first
was the most influenced by the behaviors of the boss on three desirable organizational results in
employees, namely satisfaction, organizational commitment, and productivity. These three results are
all desirable for an organization. The results of multiple regression analyses in the study conducted by
Wilson (2014) were as follows: 29%, 22%, and 9%.

On the other hand, although leadership has a significant impact on job satisfaction, as shown by the
research that was presented, it should not be used randomly. Instead, it should be adapted to the
requirements of the situation at hand and evaluated to determine which leadership style or styles are
most effective in that particular setting. According to Wendy Oliver (2021), leadership needs to be
 18

educated and retrained to incorporate leadership styles into their managerial skills. This is completely
doable given that leadership is a set of practises that can be seen and trained and that have a significant
impact on the success of an organization.

As a consequence of this, it was able to conclude that leadership would function as a predictor of
factors connected with organizational performance, specifically, contentment. Instead of having direct
implications on factors such as performance and productivity, extra-role behaviors, absenteeism, and
turnover, which would otherwise result in significant costs for the organization, if it is well evaluated,
it will have the potential to have positive benefits, which may or may not be evident. These potential
benefits will be preferable to the direct implications of these factors, which would otherwise result in
significant costs for the organization. On the other hand, job satisfaction may have a moderating link
between leadership behaviors and "potential effects," which is a matter for more research. This is
something that needs to be investigated.

Considering everything that has been discussed up to this point, the objective of this study was to
verify, using a sample from Chile, the substantial theoretical-empirical links between transformational
and transactional leadership and satisfaction and the environment of the organization. In a similar vein,
evidence was found to support the relationships between structural contemplation and initiation, as
well as satisfaction and organizational climate. Because the majority of research is carried out in the
United States, it is difficult to find studies that examine the relationship and potential repercussions of
these variables in the context of a national organizational setting, let alone locally, as is the case with
(Arica Verawati et al., 2020).

Leadership behavioural Theories of the past traditional behavioral concepts evolved as a reaction to the
failure of the characteristics approach, which claimed that particular qualities and personal features
distinguished outstanding leaders from ineffective ones (Northouse, 2019). According to this
theoretical-experimental tendency, a leader is distinguished by their behaviors. The practical result of
the existence of these separate behaviors was that leadership could be taught.

In particular, the 1940s were defined by a major emphasis on leadership. Thus, in the late 1940s, a
group of Ohio University researchers led by Vecchiotti, (2018), who were dissatisfied with the
outcomes of trait approach studies, uncovered behavioral indications of effective leadership. Despite
researching over a thousand behavior characteristics over an extended period, they ultimately
discovered that only two accounted for the majority of the leader's behavior. Structure The term
 19

"initiation" refers to the supervisor's (leader's) encouragement of or definition of the group interactions
that are intended to achieve the goal. Consideration relates to the level to which the leader exhibits
concern and respect for his followers, seeks their well-being, and communicates gratitude and support.
According to the conclusions of this study, an effective leadership style is marked by high
Consideration and Structure scores. Prior to the emergence of the transformational leadership theory,
however, these two dimensions dominated the study. Vecchiotti, (2018) suggested that Structure
Consideration and Initiation have been demonstrated to be among the most effective leadership
principles.

Literature indicates that the most commonly used instruments are the Leader's Behavior Description
Questionnaire (LBDQ) by Tsigu, (2015); Tahir et al., 2018 is the best indicator of Consideration and
Structure. The Leader's Behavior Description Questionnaire (LBDQ) is comparable to the original
form which was selected for the current experiment. Examining these principles, the selection criteria
that made this alternative the best choice was its application simplicity (it contains fewer reagents than
form XII) and psychometric properties that fulfilled the requisite standards.

A recent meta-analysis will next be described, which summarises research that investigated the
association between these two dimensions and six Leadership qualities (Singgih et al., 2020).
Consideration was positively and highly associated with five of the six variables, including follower
work satisfaction, follower pleasure with the leader, follower motivation, leader performance group,
and leader effectiveness. In turn, structure exhibited positive and significant connections with leader
satisfaction (0.33), motivation (0.40), leader performance (0.24), group performance (0.30), and leader
effectiveness (0.33). (0.33). (.39). According to the findings of the study, both strategies account for a
large amount of the diversity in leadership criteria (Singgih et al., 2020).

3.2 Leadership Style and Organizational Performance

At the turn of the 20th century, personalities such as Likert and McGregor introduced the concept of
"organizational climate" (also known as work climate) in response to a growing interest in studying
how managers and organizational managers created the climate in which subordinates carried out their
tasks, how they did it, the degree to which they were competent in their execution, and the extent to
which the actions they carried out exerted a positive impact on the organization (Gomes et al., 2016).
In this regard, it is crucial to mention that, since that time, it has been feasible to anticipate the strong
 20

relationship that existed between leadership and climate, even to the extent of damaging the
organization's overall performance.

In contrast, the idea of "work climate" refers to "environmental variables consciously understood by
the persons who work in enterprises, which are subject to organizational management and which
translate into customs and patterns of behavior" (Litwin & Stringer, 1968). In turn, Ramli, (2019)
describes the climate as "the perceptions shared by members of an organization on its official and
informal policies, practices, and activities."

On the other hand, it has been proven that the foundations of a good work environment are related, in
general, to the organization's adequate performance and, more particularly, to the indicators of work-
life balance, social benefits, job satisfaction, and managerial quality, among others leadership style
(Boyd & Gumpert, 1983). Regarding the latter, it is suggested that it is so significant that it is
undoubtedly the component that has the biggest effect on the climate. According to this same
perspective, the leadership style will affect the climate, which in turn will affect creativity and
production. Transformational leaders, for instance, build intimate relationships with their subordinates,
marked by a small power distance and individualized consideration of their members' needs and
talents, to give challenging and compelling incentives. Values like trust, honesty, openness, and
reciprocal concern, as well as the depth of verbal communication between leaders and members,
sustain these links (Ramli, 2019). Furthermore, with exceptional interpersonal relationships,
transformational leaders impart a vision to their subordinates and increase their devotion to the goal.
These would result in openness and proximity, which should have a considerable impact on the
perceived climate.

As a result, previous approaches make it clear that leadership is, without a doubt, a variable that has a
significant influence on the climate, and that this would correspond to a set of shared perceptions.
However, Berg et al., (2008) propose that the organizational climate would be a socially constructed
and shared representation of those aspects of the work environment that information about the specific
behavioral roles that are rewarded and supported in any given organization. As a result, the most
essential perceptual markers are official and informal policies, as well as organizational practices and
processes. This notion symbolizes the contemporary strategy of climate research, which is related to
individual qualities rather than broad indices. These specific indicators provide convergent
assessments of important employee impressions of policies, practices, and processes.
 21

An intriguing study that links the two variables mentioned in this section is one done by the Chilean
enterprise (Bateh & Heyliger, 2014), which involves climate monitoring and evaluation. The findings
revealed a significant percentage of increase in factors considered favorable in the workplace, such as
job satisfaction, a decrease in stress, and an increase in leadership, which was represented in a decrease
in accident rates, an increase in productivity, and a decrease in days not worked.

Based on evidence indicating the importance of transformational leadership in R&D contexts, Rizi, et
al., (2013) conducted an investigation in Israel that examined the relationships between leadership
styles - transformational, contingent reinforcement, and management by exception, among others - and
climate quality in R&D and administrative contexts. The data reveal that transformative leadership in
the context of teams and research and development (R&D) units substantially explains climate quality,
but contingent reinforcement and management by exception failed to attain statistical significance.
These data indicate the significant impact that supervisors' transformative tactics have in this type of
setting. In low-level environments (administrative, human resources), the transformational method was
able to account for climate quality to a lesser extent than in the preceding context. Contingent
reinforcement performed it as well, although with a weaker indication.

The connection between the style of a leader, how well personnel performs their jobs, and how
satisfied they are in their positions has been confirmed by these findings, supporting the role of
transformative leadership in R&D environments and remaining consistent with Rubin's et al. (2010)
prior meta-analytic findings. There is a variety of ways to lead, each of which has its impacts, which
often have either an indirect or direct influence on how the entire crew behaves and thinks. The
behavior that develops as a direct result of transformational leadership has a fruitful connection to the
variables that determine the outcomes (Bass & Riggio, 2006). On the other side, leadership based on
transactional relationships is detrimental to the organization's long-term health. The fast-food
company's employees are significantly more self-motivated, creative, and adept at working well as a
team as a direct result of the transformational leadership that has been implemented there.
Transactional leadership, on the other hand, is superior to transformational leadership in terms of its
ability to boost organizational identity and work satisfaction (Saravo et al., 2017). According to the
findings of their study, Saunders et al., (2012) concluded that the style of leadership is more significant
in the food business or the service sector since it has the potential to influence the expansion of the
economy.
 22

This research focuses mostly on the function that different styles of leadership play within an
organization as well as the several components of leadership style that have an impact on the level of
happiness and productivity that employees experience in every sector. According to the findings of the
research conducted by Shafique et al., (2018), transformational leadership enables all members of an
organization to better adapt to change. The feelings that employees have towards their job
performance, the leadership of the company, and the productivity of the business are impacted by both
transactional and transformational styles of leadership. In addition, the fundamental concept that
underpins the Full Range Leadership Model is that inspired leaders may effectively bring about change
in an organization by utilizing a variety of distinct leadership philosophies. Because of this, employee
performance goals are frequently connected to various kinds of leadership. It provides workers with a
favorable opportunity to put in more effort and follow the attributes of effective leaders in the most
effective manner. In the fast-food business, the employment of transformational leadership styles has a
beneficial impact on the degree to which followers are prepared to put planned efforts toward
achieving long-term success. The performance of a firm can be improved when employees put in more
effort than is required by the organization (Avolio & Yammarino, 2013). This leads to an increase in
the productivity of the employees, which in turn leads to an improvement in the performance of the
company. Leadership styles are selected based on what has required as well as the nature of the
problem or circumstance. Furthermore, the research does a great job of examining a wide range of
various factors that affect how leaders perform. Another excellent technique to get more understanding
of the subject being studied is to recognize the several unique theoretical views that have been offered
in this research.

3.3 Providing Specifies Regarding Leadership

The ability of a manager to inspire employees to perform their duties competently and with self-
assurance, which is beneficial for the organization as a whole, is commonly considered to be an
essential quality of leadership. They are more likely to do well in their jobs if they are provided with
clear instructions and assistance from higher-up management. (Vecchiotti, 2018). Additionally, the
actions that a leader takes cause others to recognize what must be done and come to a consensus
regarding how to complete the task at hand. In addition to this, it motivates people to work together as
well as independently to accomplish the same objectives (Yukl, 2006). On the other hand, Andersen
 23

(1995) asserts that leadership has a significant role in determining how efficiently an organization
functions. According to Andersen (1995), if leadership behavior is the most significant factor, strategic
planning, investments, product development, and marketing are of less importance.

According to Stogdill (1974), the number of different ways to describe leadership is equal to the
number of different persons who have attempted to define it. When you take a closer look at the
various definitions of leadership, you'll notice that character is the aspect that stands out as being the
most significant. It would appear that there is some wiggle area in terms of adapting to the challenges
of today. According to Memon (2014), leadership is "the means by which a person influences the
behavior, ideas, and attitudes of others by being responsible for the firm's direction and the
responsibility for how others see what's ahead and how to get there." In other words, leadership is the
responsibility of being responsible for how others see what lies ahead and how to get there.
"Leadership is the process of getting other people to work toward a goal and managing an organization
in a way that makes it stronger and more unified," writes Kumar. "Leadership is the process of getting
other people to work toward a goal" (2005). According to Kumar, these goals are attainable through
the application of leadership characteristics such as values, beliefs, character, knowledge, ethics, and
abilities.

According to Tsigu et al. (2015), leadership is a behavior that is required of its followers and
incorporates responsibility, authority, and delegating power to other individuals. According to him, the
primary responsibility of a leader is to steer, direct, and inspire followers toward the accomplishment
of both the followers' objectives and the organization's overall objectives.
 24

4 METHODOLOGY AND DATA

The information for this thesis will be obtained from primary sources through the application of
surveys and the collection of information that rests in the organizations, and the secondary sources will
come from the theoretical approach, through various authors. For the research, the managerial, middle,
and operational levels of the companies under study have been considered, since they are directly
linked to the variables and their components. Surveys were carried out with the personnel involved;
middle managers to identify leadership styles and interviews for sustainability variables with
managers. Financial, legal, and internal regulatory information was analyzed and collected to feed the
study variables and correlate their incidence.

The questionnaires are prepared by the scales and subscales of the variables to be investigated; which,
as mentioned, have been carefully studied and validated in other study samples, and also have
endorsements that guarantee their authenticity, therefore, the results should not be mistrusted.

The data collection and processing process had 3 stages; the first by determining leadership styles, the
second by measuring the level of implementation of the dimensions of sustainability, and the third when
carrying out the process of correlation between variables of which data is evidenced and analyzed in the
next chapter.

4.1 Population

"The population universe is the set of individuals and objects about which you want to know
something in an investigation." (Obasan, 2014). In this way, the population involved in the
investigative process has been established at managerial, media, and operational commands of the
companies.

4.2 Sample

Since the population is finite and consists of no more than one hundred individuals, the research study
does not require a sample calculation. Furthermore, the researcher has access to all the necessary
resources needed for data collection and analysis. This provides a unique opportunity for the
researcher to conduct a thorough examination of the population, without the need to select a sample.
 25

As a result, the findings of the study are likely to be highly accurate and representative of the entire
population. Additionally, this approach allows for a comprehensive understanding of the research
topic, as all data from the entire population can be analyzed. However, it's important to acknowledge
that this approach may require more time and resources compared to using a sample, as the researcher
needs to collect and analyze data from the entire population. Nonetheless, this research methodology is
appropriate for the study, given the finite size of the population and the availability of resources.
Overall, the use of a non-sampling approach in this study ensures a comprehensive and in-depth
analysis of the population, contributing to the validity and reliability of the research findings.

4.3 Establishment of Indicators by Variable

It is understood by the deductive process, through which the concept that is found on a theoretical level
is reached by the concept that is found on an empirical level. It is an important step in the development
of the research. The next stage is to make the variables operational, quantifiable, or at the very least
recordable in reality. This has been made possible by analyzing the literature, whose goal was to
establish the dimensions of the variables included in the research.
 26

5 RESULTS

The findings of the study indicate that effective management has a significant bearing not only on the
percentage of employees who remain with an organization over the course of time but also on the
amount of work they produce and the degree to which they are pleased with their jobs in general. In
addition to that, it is a factor that contributes to the organization's overall success. To investigate the
factors that contribute to increased interest in work among employees, the purpose of the empirical
study was to investigate, how leadership style impacts employee performance. According to the results
of the research, both transactional and transformational leadership styles have an effect on the
individuals who are employed by the organization. This effect can be positive or negative. In order to
pique the interest of workers in the day-to-day operations of a company, one must resort to the
aforementioned leadership strategies.

5.1 Presentation and Analyzing the Result

This section contains the results of the survey, which was completed via an online survey
questionnaire. To increase the credibility of this poll, the questions were posted on waprapool, which is
run by Centria University of Applied Sciences. Tables and figures are used to present the data. This
survey was split into two halves. The tables cover generic questions, and the figures cover the
important questions that demonstrate the influence of leadership styles on employee performance
through motivation.

TABLE 1: Gender Respondents?

TABLE 1: Gender Respondents

Gender Respondents Percentages

Male 29 72.50%
Female 11 27.50%
Others 0 00.00%
Not to prefer 0 00.00%
Total 40 100.00%
 27

Table 1 shows that 29 of the 40 people in the sample are male (72.50%), 11 are female (27.50%), and
the remaining people (0.00%).

TABLE 2: Age Respondents?

TABLE 2: Age of Respondents

Age Respondents Percentages

Below 20 years 5 12.50%
21 to 30 years 20 50.00%
31 to 40 years 15 37.50%
41 years+ 0 00.00%
Total 40 100.00%

Table 2 shows that 5 respondents are under the age of 20 out of 35 people, accounting for 12.50% of
the sample size. 21 to 30 years old range, 20 respondents, accounting for 50.00% of the sample size.
31 years to 40 years old 15 people account for 37.50% of the total. 41+ years range, no people
participated, accounting for 0.00%.

TABLE 3: Length of employment of respondents

TABLE 3: Length of employment, Respondents

Length of Employment Respondents Percentages

Less than one year 13 32.50%
1 to 5 years 24 60.00%
6 years to 10 years 2 05.00%
11 years+ 1 02.50%
Total 40 100.00%

Table 3 shows 13 people that constitute 32.50% of the sample size and have been with the company
for less than one year. 24 respondents, 60% of the sample total, have worked here from between one
 28

and five years. 2 people constitute 5.00% of those working between 6 and 10 years. 1 respondent, or
2.50%, has worked for the firm for 11 years or more.

TABLE 4: Position holding.

TABLE 4: Position Holding

Position Respondents Percentages

Manager 2 05.00%
Supervisor 2 05.00%
Employee 30 75.00%
Prefer not to answer 6 15.00%
Total 40 100.00%

Table 4 two managers represent account for 5% sample. Two supervisors account for 5% sample
size. Thirty employees account for 75% of the sample. 15% of the sample came from prefer not to
answer.

FIGURE 3: Leadership style has a significant impact on organizational success

 29

Figure 3: This graph depicts the data from 40 respondents who shared their thoughts. 18 agreed, which
is 45%, and 20 strongly agreed, which is 50%. On the negative side, 1 person said they disagreed,
which is 2.50%, and 1 person said they strongly disagreed, which is 2.50%.

According to this scenario, 95% of people chose the positive answer to this statement and 5% chose
the negative answer.

FIGURE 4: It is important for a leader to inspire and motivate subordinates to work effectively

Figure 4: This graph represents the responses of 40 people who volunteered their opinions. 19 agreed,
or 47.50% and 19 strongly agreed, or 47.50%. On the negative side, 0 respondents stated they
disagreed (0%), while 2 said they strongly disagreed (5%). In this instance, 95% of participants
selected the positive option on this statement, while 5% chose the negative one.

As a result, this claim is now widely accepted as true and right.

 30

FIGURE 5: It is a good idea for a leader to reward subordinates on a periodic basis

Figure 5 represents the responses of 40 people who volunteered their opinions. 24 agreed, or 60% and
15 strongly agreed, or 37.50%. On the negative side, 0 respondents stated they disagreed (0%), while 1
said they strongly disagreed (2.50%). In this instance, 97.50% of participants selected the positive
option on this statement, while 2.5% chose the negative one.

The end result is that this claim is now widely accepted as true and correct.
 31

FIGURE 6: Another wonderful option for a leader is to officially celebrate an employee's

birthday

Figure 6: This graph represents the responses of 40 people who volunteered their opinions. 20 agreed,
or 50%, and 13 strongly agreed, or 32.50%. On the negative side, 7 respondents stated they disagreed
(17.50%), while 0 said they strongly disagreed (0%). In this instance, 82.50% of participants selected
the positive option on this statement, while 17.50% chose the negative one.

The result is that this claim is now widely accepted as true and correct.
 32

FIGURE 7: A leader should make all decisions on his or her own and rarely seek input from
followers

Figure 7 represents the responses of 40 people who volunteered their opinions. 13 agreed, or 32.50%,
and 10 strongly agreed, or 25%. On the negative side, 15 respondents stated they disagreed (37.50%),
while 2 said they strongly disagreed (5%). In this instance, 57.50% of participants selected the positive
option on this statement, while 42.50% chose the negative one.

The result is that this claim is now accepted as true and correct.

FIGURE 8: Workers should share their thoughts with the leader, which may assist the
organization to achieve its aim more readily
 33

Figure 8 represents the responses of 40 people who volunteered their opinions. 15 agreed, or 37.50%,
and 22 strongly agreed, or 55%. On the negative side, 2 respondents stated they disagreed (5%), while
1 said they strongly disagreed (2.50%). In this instance, 92.50% of participants selected the positive
option on this statement, while 7.50% chose the negative one.

As a result, this assertion is now commonly regarded as accurate and truthful.

FIGURE 9: Leaders should distribute greater authority to their subordinates

Figure 9 represents the responses of 40 people who volunteered their opinions. 21 agreed, or 52.50%,
and 9 strongly agreed, or 22.50%. On the negative side, 10 respondents stated they disagreed (25%),
while 0 said they strongly disagreed (0%). In this instance, 75% of participants selected the positive
option on this statement, while 25% chose the negative one.

Due to this, the claim is now generally acknowledged to be factual and truthful.
 34

FIGURE 10: It is the responsibility of an excellent leader to inquire about the well-being of their
employees

Figure 10 represents the responses of 40 people who volunteered their opinions. 24 agreed, or 60% and
16 strongly agreed, or 40%. On the negative side, 0 respondents stated they disagreed (0%), while 0
said they strongly disagreed (0%). In this instance, 100% of participants selected the positive option on
this statement, while 30% chose the negative one.

The result is that this claim is now widely accepted as true and correct.
 35

FIGURE 11: If necessary, the leader must arrange for a loan from the organization for employees
based on their working ability

Figure 11 represents the responses of 40 people who volunteered their opinions. 20 agreed, or 50%,
and 14 strongly agreed, or 35%. On the negative side, 5 respondents stated they disagreed (12.50%),
while 1 said they strongly disagreed (2.50%). In this instance, 85% of participants selected the positive
option on this statement, while 15% chose the negative one.

This has caused the remark to be generally accepted to be truthful and true.
 36

FIGURE 12: To increase organizational productivity, leaders must motivate their employees

Figure 12 represents the responses of 40 people who volunteered their opinions. 14 agreed, or 35%,
and 23 strongly agreed, or 57.50%. On the negative side, 1 respondent stated they disagreed (2.50%),
while 2 said they strongly disagreed (5%). In this instance, 92.50% of participants selected the positive
option on this statement, while 7.50% chose the negative one.

As a result, this assertion is now acknowledged as being factual and accurate.

FIGURE 13: A correct leadership style contributes to the organization's profit maximization
 37

Figure 13 represents the responses of 40 people who volunteered their opinions. 22 agreed, or 55%,
and 17 strongly agreed, or 42.50%. On the negative side, 0 respondents stated they disagreed (0%),
while 1 said they strongly disagreed (2.50%). In this instance, 97.50% of participants selected the
positive option on this statement, while 2.50% chose the negative one.

As a result, this assertion is now commonly regarded as accurate and truthful.

FIGURE 14: A poor leadership style results in the misallocation of precious resources

Figure 14 represents the responses of 40 people who volunteered their opinions. 18 agreed, or 45%,
and 16 strongly agreed, or 40%. On the negative side, 6 respondents stated they disagreed (15%),
while 0 said they strongly disagreed (80%). In this instance, 85% of participants selected the positive
option on this statement, while 15% chose the negative one.

As a result, this assertion is now acknowledged as being factual and accurate.

 38

FIGURE 15: Immoral industrial practices are encouraged by poor leadership

Figure 15 represents the responses of 40 people who volunteered their opinions. 22 agreed, or 55%,
and 13 strongly agreed, or 32.50%. On the negative side, 4 respondents stated they disagreed (10%),
while 1 said they strongly disagreed (2.50%). In this instance, 87.50% of participants selected the
positive option on this statement, while 12.50% chose the negative one.

This has resulted in an increasing acceptance of the assertion as true and correct.
 39

6 DISCUSSION AND CLARIFICATION

There are three parts to leadership: the leader, the people who follow the leader, and the relationship
between the leader and the people who follow the leader (Figure.16). For each level, you need to do a
separate analysis. There are many ways to pay attention to the leader, all of which are based on the
leader's traits and actions. On the other hand, the main focus of the empowerment model is on the
follower, while the main focus of the leader-member interaction model is on the connection. The
situational approach puts more emphasis on how the three parts of the leadership process work
together.

FIGURE 16: The Domains of Leadership

6.1 How Important It Is to Have Good Leadership

The most important aspect of a leader in an organization is how they act, according to Akca's (2017)
research. This is especially true in the fast-food industry, where most CEOs use methods that help their
companies grow. Researchers have looked into the different leadership styles to figure out how to
improve employee performance and happiness while also running all operations and activities well.
Transformational leadership is the type of leadership that is most common in the modern world.
Leaders are in charge of getting their teams to care more about the organization's growth. It has been
decided that this is one of the most important leadership styles because it motivates and inspires people
 40

to come up with new ideas and make improvements, both of which will help define and grow the
future success of the organization. Shafique, Kalyar, and Ahmad (2018) say that the style of leadership
improves employees' morale, job performance, and motivation in a number of ways. One of these
strategies is to connect the sense of self that employees have with important projects that define the
organization's values and vision.

It has been decided that the best kind of leadership is called "transactional leadership." This is because
transactional leadership puts most of its focus on how well the organization does and how well the
people who work there do their jobs. In the food industry, giving workers incentives and rewards
motivates them to work harder, which helps the organization reach its goals and objectives. Effective
leadership and management in the context of an organization mean carrying out operations and tasks
according to plans and making sure they are done in a way that helps the organization reach its goals.
On the other hand, most people agree that the leaders of a group are the most important part of that
group because they can get each member to move in the right direction. There is no reason to think that
good managers also make good leaders. On the other hand, managers who know how to run their
teams well are the ones whose teams produce the best work (Singgih et al., 2020). Ko and Kang's
(2019) research shows that managers and leaders are different in many ways. The majority of the
characteristics that are shared by managers and leaders have been identified. Because of this, managers
who are also good leaders are more likely to be able to simplify the management process.
Organizations are now more receptive to making changes more frequently because of the various
changes that have made the domestic or global market more uncertain. They are also conscious of the
necessity to make changes more frequently.

6.2 A way to lead that brings about a change in the situation

The transformational leadership style emphasizes the development and satisfaction of employees,
which will contribute to the expansion of the organization (Nguyen et al., 2017). Strong leadership can
also increase the motivation of the staff. It makes it simpler for lower-level employees and higher-level
employees to communicate with one another. Having employees who understand the goals of the
business is good for the business and gives the employees a sense of worth (Jones, 2019). According to
Alqatawenh (2018), transformational leadership occurs when leaders seek to help their people and get
them to look beyond their individual needs. This lets the employees concentrate on what the
 41

organization as a whole needs. Leaders who change their organizations can motivate their followers
and take care of their emotional needs. Additionally, it piques the employees' desire in expanding their
knowledge.

Also, people are happier with their jobs because of it. It increases people's productivity and may make
it easier for them to keep their jobs. Employees benefit from transformational leadership because it
helps them become more motivated, gain new skills, and become better at what they do.
Transformational leadership also makes the organization as a whole better at what it does. Busari et
al.(2019), say that a person's sense of self-definition and fulfillment are linked to their transformative
leadership. Transformational CEOs might make it possible for people to grow and contribute to the
success of the organization.

When people have stable jobs where they can use their skills, they get both material and nonmaterial
benefits. But doing so makes people want to work harder and stay motivated, which could lead to them
getting tired and unhappy with their jobs. This means that it will cost more to replace employees and
train new ones (Kark, VanDijk, and Vashdi, 2018). This style of leadership creates the best conditions
for getting things done. It gives the organization a clear, compelling vision, which makes the
organization as a whole more effective. People are no longer motivated to do their best job as a result
of this type of leadership. Hence, employees are dissuaded from going above and beyond what is
required of them, which also prevents them from going above and beyond. Also, this style of
management could cause problems for the employees, like not paying them enough for their overtime.
How a leader acts affects how much work gets done and how happy the workers are.

Job satisfaction in the food industry has been put into a number of different categories because it
shows how much most food industry workers enjoy their jobs and how happy workers make a
company more productive, giving it a competitive edge. Managers in the fast-food industry use good
leadership skills with their subordinates in a variety of situations to help people succeed and make
improvements within the organization. People are most likely to be motivated to do good work by their
supervisor, connections with other individuals, a favorable working environment, favorable
administration and policy, and monetary compensation.

According to the research done by Guhr, Lebek, and Breitner (2019), each person has a unique set of
goals that drive them. This is especially true if managers in the food industry think that performance,
 42

job satisfaction, and effort are all directly linked. In this industry, good performance leads to higher
pay, so managers may think that performance, job satisfaction, and effort are all linked. In addition, the
incentives that are provided to workers can be altered to cater to the requirements of the individual
workers. This might be enough to get them to work hard and give the company a competitive edge in
the food market. It has been found that the way leaders act is the single most important factor in
figuring out how happy workers are with their jobs (Lee et al., 2018). Because the majority of workers
in the food industry are subordinates who must follow orders from their superiors, the kind of person
their boss is often dictating how the workers respond to questions. Productivity and pleasure among
workers can be influenced by factors such as the nature of leadership at an organization, the culture of
the workplace, and the social ties that exist within the workforce. There is a strong correlation between
the potential quality of the relationship between leaders and subordinates and how employees feel
about themselves, how successfully they perform their tasks, and how happy they are while they are at
work. Ramli (2019) discovered that workers are more content when their supervisors are helpful or
compassionate towards them, as opposed to when their supervisors are critical or don't care about them
as individuals. Some of the hardest jobs are in the food industry.

leaders who act in a way that is detrimental to and unhelpful to their followers. Suppose that the
members of your staff struggle to evaluate their own work and identify ways to become more effective
by implementing strategic initiatives. They would like, given the circumstances, for their leaders to
provide them with the necessary guidance and commands to follow. When CEOs and their teams act
badly toward each other, both employee turnover and productivity as a whole go down (Mishra et al.,
2018). When you use the skills and actions of transformative leadership, it's easier to keep employees
from leaving. Transformational leadership styles have been shown to have the biggest effect on how
happy employees in the food industry are with their jobs and on the quality of the work they do.
Transformational leadership is good for everyone because it improves employees' working conditions,
makes it easier for them to meet requirements, and makes them more successful.

Harrison's research from 2018 shows that the behavioral leadership theory puts a lot of weight on how
leaders respond, both behaviorally and cognitively, to the needs of their employees and the conditions
in the workplace. Behavioral theory, which is also called "style theory," says that a person can become
a leader based on how willing they are to learn, not on how they were born. Because it helps explain
how leaders act in different situations and says that a leader's behavior is the best way to predict how
well they will do their job, the behavioral leadership theory puts a lot of weight on the different ways
leaders can act. The most successful theory about how people learn is the one that puts more weight on
 43

what they do than on what they are born with. Based on patterns of behavior, which have been put into
groups by the theory of behavior, strong leadership styles have been found. There weren't many ideas
about how to become a leader, like becoming a tyrant, focusing on the task at hand, or putting the
needs of the people first. A lot can be learned about the success of an organization from how its leaders
act and what decisions they make. The behavioral hypothesis is true in a lot of different ways. Leaders
can pick and study the different steps they need to take to build the types of leaders that will help them
come up with the first and most important criteria for work happiness. It enables one to transform
oneself and adjust easily to a wide variety of circumstances. Also, many models of good leadership say
that anyone can be a leader. But most people who study behavioral theory think that it gives people
more freedom because it tells them in great detail how they should act in different situations. There is a
connection between behavioral theory and a variety of different theories regarding leadership (Brohi et
al., 2018). (Brohi et al., 2018).

Several different research projects have used the idea of traits to look into different types of leadership.
Lieven et al. (2018) take on trait theory is that leaders are born with their traits and don't learn them
through experience (2018). Verawati and Hartono (2020) agree that people are born with traits that can
help tell who will be a leader and who won't. Among these qualities are: Dan (2019) says that the word
"trait" means a person's different thoughts, personalities, and other characteristics. Leaders are people
who have grown emotionally and are sure of themselves and full of life. Mazaheri (2020) says that
people who have these traits are more likely to do well in leadership positions.

The next part of the argument states that some individuals possess the necessary social skills to
comprehend particular circumstances and respond appropriately. A significant number of people have
investigated the significance of traits. They have been able to utilize it to determine the exact
fundamental characteristics in people that are caused by terrible leadership. On the other hand,
Medvedev et al. (2017) state that this method received a great deal of criticism since it did not have a
good set of characteristics that might differentiate leaders from followers. There was one person who
possessed everything desirable. Also, rather than concentrating on what makes a successful leader, the
researchers examined a variety of concepts and the impacts of various leadership philosophies on
particular issues.
 44

6.3 Theories X And Y Respectively

In the year 1960, McGregor presented the world with two different leadership theories, which he
referred to as X and Y. Both theories assume that workers adhere to certain characteristics. According
to Theory X, workers abhor their jobs and will go to great lengths to avoid them because there are
insufficient levels of motivation and accountability (Zogning, 2017). In addition, dissatisfied workers
have been linked to poor management practices and a tendency on the part of supervisors to
micromanage the actions of their employees, both of which contribute to the inefficiency of the
workforce. Employees, following Theory Y, can function effectively if the appropriate environment
and platform are made available to them. Managers are in charge of making ensuring that workers are
paid fairly for their contributions (Tahir and Iraqi, 2018). It's possible that workers will be unhappy
with the hierarchy and the way leaders are behaving. The manager is responsible for inspiring the team
to complete the organization's aims. In addition, workers need to have a sense of calm and safety in the
workplace, and they should receive adequate training to ensure that they have the skills necessary to
help the business accomplish its objectives. In addition, once the staff has accomplished the goals that
have been set for them, they should be given the awards that are rightfully theirs.

6.4 Performance of the Employees

A person's ability to perform all of their assigned jobs in a manner that is in line with the standards set
forth by the organization is one definition of employee performance (Amussah, 2020). The efficiency
of the workforce and the development of the organization are two factors that might contribute to
determining whether or not a leader is effective enough. (Amussah, 2020). According to Rizi (2013), a
worker's overall performance can be affected by their behavior on the job, which is easy to observe and
evaluate. This is something that can be easily observed. According to Rizi, "an individual's
contribution to the fulfillment of corporate goals and objectives" is the definition of employee
performance.

6.5 The Effectiveness of the Workforce and Various Styles of Leadership

 45

According to McGrath and MacMillan, there are substantial correlations between effective leadership
practices and the performance of both workers and organizations (McGrath and MacMillan, 2000). It
is often believed that implementing an extremely effective leadership plan is an excellent way to
expand management while also providing a reliable competitive advantage. The vast majority of
studies have shown a significant correlation between leadership style and staff performance.
According to the points of view of academics, various approaches to management and leadership could
either positively or negatively affect the performance of the workforce.
 46

7 SUMMARIZATION AND CONCLUSION

The study found that transformational leadership is the most effective type of leadership. The
correlation method was used to figure out how accurate the numbers were. The study's results show
that there is a strong link between a leader's philosophy and the overall level of engagement shown by
their employees. Managers and supervisors have increasingly important tasks to do as the workplace
becomes more demanding. Many businesses find it hard to build long-lasting relationships with their
employees based on trust and dependability. Most of the time, this is hard to do. Building the
relationships that are needed takes a lot of time and work. Leaders are responsible for making sure that
every person on their team stays excited and motivated. Eliyana and Ma'arif (2019) say that the first
thing a leader should do is make sure that everyone on their team knows what the organization's
mission and goals are. Tell them about the values your company stands for and what makes it different
from other companies in the same field. There's no point in trying to make them look different from
who they are. It would be great if the people on the staff tried to set themselves apart from each other
and from the general public as a whole. Some people may think this is strange, but it will make many
people more interested in becoming managers.

People tend to look up to their leaders and want to be just like them in many ways. It is the
responsibility of leaders to instill a sense of loyalty in the members of their teams. Imagine a
workplace in which those in positions of authority are promoted from among the ranks of the
employees. As a consequence of this need, they must physically attend each and every business
meeting. Those in leadership positions owe it to others who look up to them to provide an example of
excellence and develop their own distinctive strategies for handling problems. When analyzing the
correlation between the activities of a leader and the level of satisfaction experienced by their
workforce, it is essential to take into consideration the context in which the observation was made.
Eliyana and Ma'arif (2019) say that the opinion of a single person is not enough to tell whether or not
an employee is happy with their job. It is now feasible to provide a plausible response to the topic of
how the leadership of a firm influences the level of contentment experienced by its workforce.
Employees are far more content with their jobs when their supervisors are skilled at what they do.

7.1 Recommendation for Future Work

 47

There have been two ideas for what could be studied. The qualitative analysis could find out if these
kinds of leadership actions affect how well employees did their jobs and how happy they were with
their jobs. This would let the researcher see patterns in how well employees do their jobs and how
happy they are with their leaders. Also, since interviews are used to understand a personal event or
experience (Hammarberg, Kirkman, and de Lacey, 2016), this method would allow the researcher to
find out more about people's experiences with the organization's leadership, management,
communication, and training, and why workers find them helpful. Also, it was said before that a
number of participants were worried about time, organization, and stress. Because of this, a company
needs to have one style of leadership, which is better for the industry as a whole to improve employee
performance and satisfaction. This could give us even more interesting information about how this
kind of leadership affects the fast-food industry as a whole and show us where else we need to
improve.
 48

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 APPENDIX 1

APPENDIX 1: QUESTIONNAIRE

1. Name?
［……………………………………………… ］

2. Are you a student or a worker?

o Student. ［ ］

o Employee. ［ ］

o Student and Employee (Both). ［ ］

o Prefer not to answer. ［ ］

3. Sex?
o Male. ［ ］

o Female. ［ ］

o Other. ［ ］

o Prefer not to answer. ［ ］

4. Age?
o Below 20 Years. ［ ］

o 21 to 30 years. ［ ］

o 31 to 40 years. ［ ］

o 41+ Years. ［ ］

5. Length of Employment?
o Less than 1 Year. ［ ］

o 1 Year to 5 Years. ［ ］

o 6 years to 10 years. ［ ］

o 11+ years. ［ ］

6. Position Holding?
o Manager. ［ ］

o Supervisor. ［ ］

o Employee. ［ ］
 o Prefer not to answer. ［ ］

APPENDIX 2/2

7. Leadership style has a significant impact on organizational success.

o Agree. ［ ］

o Strongly Agree. ［ ］

o Disagree. ［ ］

o Strongly Disagree. ［ ］

8. It is important for a leader to inspire and motivate subordinates to work effectively.

o Agree. ［ ］

o Strongly Agree. ［ ］

o Disagree. ［ ］

o Strongly Disagree. ［ ］

9. It is a good idea for a leader to reward subordinates on a periodic basis.

o Agree. ［ ］

o Strongly Agree. ［ ］

o Disagree. ［ ］

o Strongly Disagree. ［ ］

10. Another wonderful option for a leader is to officially celebrate an employee's birthday.
o Agree. ［ ］

o Strongly Agree. ［ ］

o Disagree. ［ ］

o Strongly Disagree. ［ ］

11. A leader should make all decisions on his or her own and rarely seek input from followers.
o Agree. ［ ］

o Strongly Agree. ［ ］

o Disagree. ［ ］

o Strongly Disagree. ［ ］
 APPENDIX 3/3

12. Workers should share their thoughts with the leader, which may assist the organization achieve
its aim more readily.
o Agree. ［ ］

o Strongly Agree. ［ ］

o Disagree. ［ ］

o Strongly Disagree. ［ ］

13. Leaders should distribute greater authority to their subordinates.

o Agree. ［ ］

o Strongly Agree. ［ ］

o Disagree. ［ ］

o Strongly Disagree. ［ ］

14. It is the responsibility of an excellent leader to inquire about the well-being of their employees.
o Agree. ［ ］

o Strongly Agree. ［ ］

o Disagree. ［ ］

o Strongly Disagree. ［ ］

15. If necessary, the leader must arrange for a loan from the organization for employees based on
their working ability.
o Agree. ［ ］

o Strongly Agree. ［ ］

o Disagree. ［ ］

o Strongly Disagree. ［ ］

16. To increase organizational productivity, leaders must motivate their employees.

 o Agree. ［ ］

o Strongly Agree. ［ ］

o Disagree. ［ ］

o Strongly Disagree. ［ ］

APPENDIX 4/4

17. A correct leadership style contributes to the organization's profit maximization.

o Agree. ［ ］

o Strongly Agree. ［ ］

o Disagree. ［ ］

o Strongly Disagree. ［ ］

18. A poor leadership style results in the misallocation of precious resources.

o Agree. ［ ］

o Strongly Agree. ［ ］

o Disagree. ［ ］

o Strongly Disagree. ［ ］

19. Immoral industrial practices are encouraged by poor leadership.

o Agree. ［ ］

o Strongly Agree. ［ ］

o Disagree. ［ ］

o Strongly Disagree. ［ ］
 APPENDIX 2

APPENDIX 2

Independent Variable Dependent Variable

Transformational Employee
Leadership Performance

Transactional Employee's
Leadership Satisfaction
APPENDIX 2/2