Effects of Transformational And Transactional Leadership Styles on Employee Performance: A Comparative Study of Selected Nigerian Organizations

ABSTRACT            

This study examines the effects of transformational and transactional leadership st}les on employee performance· A comparative study of selected Nigerian organizations. The study sought to establish if transformational leadership attitudes can produce better performance among employees relative to transactional leadership. Data were collected using Bass and Avolio (1985) 's Multifactor Leadership Questionnaire (MLQ-5X) survey. The total population of study obtained fi�om the three organizations was 4220. Out of this population, 1500 copies of the Questionnaire were administered randomly to these organizations. Only 898 useable Questionnaire were employed. Using correlation and regression analysis, as well as Analysis of variance, the results showed that: (a) transformational leadership style has impacted more on two organizations (Kaduna Refinery & Petrochemical Company, and Federal Polytechnic Nasarawa) in terms of employees ' performance variables of teamwork and job satisfaction than the transactional leadership style,· (b) Transactional leadership practice was more effective in two organizations (Dangote Cement Company Plc, and Federal Polytechnic .Nasarawa) for employee commitment and (c) Transformational leadership style worked relatively better for the communication and innovation variables in Dangote Cement Company; while transactional leadership style worked better for the communication and innovation variables in Kaduna Refinery and Petrochemical Company. The study concluded that transformational leadership style positively influence employees' performance in these organizations more than the transactional leadership on the comparative basis. The study recommended more use of transformational leadership to boost: teamwork and job satisfaction in Kaduna Refinery and Petrochemical Company as well as Federal Polytechnic Nasarawa; communication and innovation in Dangote Cement Company, Obajana; and Employee commitment in Kaduna refinery. On the other hand, transactional leadership style should be used more to boost: teamwork, job satisfaction, and employee commitment only in Dangote Cement Company,· communication and innovation in Kaduna refinery,· and employee commitment in Federal Polytechnic Nasarawa.