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Transformational and Transactional Leadership Styles and Employee Performance in Public Sector Organizations in Africa: A Comprehensive Analysis in Ghana

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  • Francis Donkor
  • Isaac Sekyere
  • Frank Akwasi Oduro

Abstract

The purpose of this research is to investigate the psychological mechanisms that cause the influence of transformational and transactional leadership on employee performance. Based on employee stewardship theory (EST) and social exchange theory (SET), an organizational commitment was selected as a perfect moderating variable to conduct the study. The data were collected from sixteen (16) organizations in the public sector of Ghana, consisting of 330 full-time employees. The results indicate that organizational commitment positively moderates transformational leadership while transactional leadership does not. We realized that when transformational leadership is high, organizational commitment goes up, thereby increasing employee performance. On the other hand, when transactional leadership goes up, organizational commitment decreases, causing employees performance to dwindle. Therefore, transactional leaders should augment their approach with transformational leadership to increase employee performance. This research offers practical implications relevant to provide strategies for leaders to PSOs to influence employees to perform beyond the limit.

Suggested Citation

  • Francis Donkor & Isaac Sekyere & Frank Akwasi Oduro, 2022. "Transformational and Transactional Leadership Styles and Employee Performance in Public Sector Organizations in Africa: A Comprehensive Analysis in Ghana," Journal of African Business, Taylor & Francis Journals, vol. 23(4), pages 945-963, October.
    • Handle: RePEc:taf:wjabxx:v:23:y:2022:i:4:p:945-963
    DOI: 10.1080/15228916.2021.1969191
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    Cited by:

    1. Syamsul Hadi & Ana Faridiana & Kusuma Chandra Kirana & Ambar Lukitaningsih & Christina Heti Tri Rahmawati & Eni Purnasari & Nabila Wahyuningtyas, 2024. "Political Skill and Transactional Leadership on Employee Performance: The Mediating Effect of Organizational Work Culture," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 112-129.
    2. Wayu Eko Yudiatmaja & Roy Valiant Salomo & Eko Prasojo, 2023. "Fostering Innovative Behavior of Millennial Public Employee Through Leadership Styles and Organizational Trust," SAGE Open, , vol. 13(2), pages 21582440231, June.

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