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Nigeria Journal of Management Sciences (NJMS), Benue State University

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A Comparative Analysis of the Effect of Transformational and Transactional Leadership on Employee Performance in Manufacturing Companies

1.Ogbe, Abel L. O, 2.Dr. Dedekuma S. E: Department of Business Administration Delta State University Abraka


This study was designed to compare the effect of transformational and transactional leadership styles on employee productivity, performance, satisfaction and organizational goals. The study was carried out in a medium and small manufacturing company, Beta-Glass Ughelli, Delta State. The study adopted the survey research design and the convenience sampling method was used. A sample size of two hundred and eleven (211) respondents was used according to Taro Yamani (1984). The questionnaire was used to elicit information from respondents using the modified Likert scale five point rating scale. The data obtained from the field was analyzed using the descriptive statistics and the Statistical Package for Social Science (SPSS) version 21. The multiple regression analysis was used to test the hypotheses. Findings from the study indicates that significant relationship exist between transformational leadership (B= .561, P = 0.01), transactional leadership (B= .116, P=0.02) and employee's performance in manufacturing industries, but the transformational leadership prove to be more effective and efficient and predictive of employee's performance. The study concluded that the style of leadership prevalent in the organization determines how productive employees will become. The study recommends that leaders should be inspirational in leading and encouraging employee to make the most of their skills and capacity to their job by involving them in planning and decision making processes.

Key words: Transactional leadership, transformational leadership, employee performance, organizational goals.

To get access to the full text of this article: Faculty of Management Sciences, Benue State University, Makurdi, Nigeria.

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