The Effect of Transformational, Transactional, and Laissez-Faire Leadership Styles on Employees’ Level of Performance: The Case of Hospital in Oromia Region, Ethiopia

Abstract

Purpose

Poor performance of health service providers has a negative impact on the ability of health systems to produce desired outcomes. Lack of suitable and impactful leadership hinders employee performance in terms of providing a high standard of care. There is a paucity of evidence on the effect of leadership style on employee performance in the current study setting. Hence, this study sought to assess the effect of leadership styles on employee performance in hospitals in the Oromia region, Ethiopia, from August 1 to October, 30, 2021.

Methods

A cross-sectional study was conducted using a sample of 41 hospitals and 412 employees, selected by stratified sampling from hospitals in the Oromia region. The data were collected using self-administered questionnaires. They were then coded and entered into the Epi-Info-7.2. software, and exported to SPSS-20 for analysis. The participants’ characteristics were analyzed and summarized using descriptive statistics. Employee performance was rated as low, average or high, and estimated by proportion along with a 95% confidence interval (CI). The association between leadership styles and the level of employee performance was modelled using ordinal logistic regression. The magnitude of association was estimated by odds ratio with a 95% CI. Statistical significance was set at p < 0.05.

Results

Employees had an increased odds of being a high performer when they experienced the following leadership styles: transformational with idealized influence (AOR=1.70; 95% CI: 1.12, 2.64), intellectual stimulation (AOR=1.60; 95% CI: 1.04, 2.48), laissez-faire approach (AOR=2.49; 95% CI: 1.71,3.62), effectiveness in terms of frequently fulfilling employees’ job-related needs (AOR=2.09; 95% CI: 1.20,3.63), and the exertion of extra effort in motivating them (AOR=2.11; 95% CI: 1.22, 3.68).

Conclusion

Among leadership styles, transformational with idealized influence and intellectual stimulation, laissez-faire approaches were significantly associated with employee performance. However, transactional leadership was not significantly associated with employee performance.

Keywords:

• employee performance
• Ethiopia
• hospital
• Oromia
• leadership styles

Abbreviations

AOR, Adjusted Odds Ratio; CR, Contingency Reward; COR, Crude Odds Ratio; GDP, Gross Domestic Product; IC, Individual Consideration; II, Idealized Influence; IM, Inspirational Motivation; IS, Intellectual Stimulation; MBE, Management by Exception; MLQ, Multifactor Leadership Questionnaire; MMR, Mothers Mortality Rate; NGO, Non- Governmental Organization; OR, Odds Ratio; UWES, Urchtect Work Engagement Scale; WHO, World Health Organization.

Data Sharing Statement

The data for the current study were obtained from the study participants and are available, upon formal request, from the principal investigator, Dr. Zeleke Amana.

Ethics Approval and Informed Consent

The research was carried out as a component of a doctoral dissertation offered as a collaborative postgraduate program by Vision International University, USA, and Grace Graduate School, Ethiopia. In Ethiopia, the institutional ethical board of the educational program’s host institutions grants ethical permission for research undertaken by PhD students who enroll in postgraduate programs from different affiliations. Hence, the ethical approval was obtained from the Institutional Ethical Review Board (IERB) of Vision International University, USA, and Grace Graduate School, Ethiopia. Subsequently, a letter of cooperation was obtained from the Oromia Health Bureau and submitted to the concerned institutions, including hospitals. The participants were informed and requested to participate in the study using a written consent form constituting the required ethical principles. Accordingly, participants were informed about the objectives of the study and the benefits and risks of participation. The autonomy of the participants was exercised by ensuring their right to refuse to participate in the study or to discontinue the interview process at any time. Participants’ confidentiality was ensured by avoiding any unique identifiers that could potentially disclose their information. The collected data will not be used for any other purpose except for the objectives of this study.

Acknowledgments

We gratefully acknowledge Vision International University, USA in collaboration with the Grace Graduate School for providing indispensable support for this crucial study. We also acknowledge the Oromia Health Bureau for other necessary support as needed. Moreover, all healthcare providers working in the selected hospitals and participants are acknowledged for their genuine cooperation during the entire course of the study.

Author Contributions

All authors made a significant contribution to the work reported, whether in the conception, study design, execution, acquisition of data, analysis, and interpretation, or in all these areas, took part in drafting, revising, or critically reviewing the article; gave final approval of the version to be published; have agreed on the journal to which the article has been submitted; and agree to be accountable for all aspects of the work.

Disclosure

The authors declare that they have no competing interests.

Additional information

Funding

There is no funding to report.