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Writer's pictureGerry Savage, MBA

The Impact of Leadership Style on Employee Commitment and Performance

Updated: Oct 9

Leadership style is critical in shaping an organization’s success and influencing employee behavior. Research consistently shows that effective leadership directly impacts not only employees' performance but also their commitment to the organization. A well-suited leadership style can significantly boost organizational commitment, resulting in higher employee loyalty, reduced turnover, and enhanced performance.

Leadership’s Role in Employee Commitment

Leadership is not just about giving orders; it inspires, guides, and empowers employees to work towards common goals. According to Kreitner and Kinicki, leadership is the process where an individual influences others to achieve collective objectives. When leadership style aligns with employees' needs, it fosters a positive working environment, boosting commitment and performance.

Studies by Walumbwa, Lawler, and Sartika have proven that leadership style positively and significantly affects organizational commitment. This is because employees feel more valued and motivated when their leaders provide the right blend of direction and support. When leadership is executed effectively, employees are more likely to trust their leaders and remain committed to the organization's mission.


Leadership Styles and Their Impact

Transformational, transactional, and laissez-faire leadership styles affect employees in unique ways. Transformational leaders, for example, inspire employees to go beyond their personal interests and work toward the organization's greater good. This approach has been found to create deeper employee commitment compared to other styles.

Competence is another key component tied to leadership and organizational commitment. Leaders who demonstrate knowledge, expertise, and the ability to make informed decisions encourage employees to follow their example. By developing competencies aligned with organizational goals, leaders improve their performance and that of their team.


What Employees Need from Their Leaders

For leaders to truly impact employee commitment and performance, they must:

  1. Communicate Clear Goals: Employees need a clear vision and direction to understand how their work contributes to organizational success.

  2. Provide Support and Development: Offering resources and opportunities for professional growth fosters a sense of belonging and commitment.

  3. Inspire and Empower: Leaders who encourage innovation and independent decision-making cultivate a motivated and loyal workforce.

  4. Build Trust: Trust is the foundation of strong leadership. Employees who trust their leaders are likelier to stay committed to the organization.


In conclusion, leadership style is vital in shaping organizational commitment and performance. Leaders who align their style with the needs of their team, build trust, and foster competence create an environment where employees thrive, resulting in long-term success for the organization.


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