Abstract: The main purpose of this study was to examine the effect of leadership styles on employee’s performance in insurance companies in Rwanda because it’s believed that most employee’s exhibits poor performance because of bad leadership style practiced in the organization. This was achieved with the help of three specific objectives namely; to examine the effect of directive leadership style on Sonarwa’s employee performance; to assess the effect of supportive leadership style on Sonarwa’s employee performance and to evaluate the effect of Participative Leadership style on Sonarwa’s employee performance. The research is beneficial to the researcher, government and Sonarwa in specific and JKUAT. The researcher reviewed both theoretical and empirical literature on the effect of leadership behavior on employee’s performance of organization around the world. The researcher used descriptive method of study based on qualitative and quantitative approach in order to get better analysis of the study. The population size was 130 and sample taken is 98 respondents. Both primary and secondary sources with their relevant tools like questionnaire and documentary analysis in order to come up with required data. The data was processed by SSSP software but analyzed using frequency/percentages, mean and standard deviation. The relationship between the variables will be established by use of Anova table in establishing relationship. In the findings it was established that Sonarwa uses different leadership styles like directive leadership style where the managers clearly tell employees what is expected of them in their work and employees do not question, subordinates are required to follow the laid down rules and regulations, the company management provides work Schedule for employees to follow, the managers delegate responsibilities and management receives reports on a regular basis from all employees. They also use Supportive leadership where by the managers treat employees with respect, management recognize the best performing employees, Sonarwa managers helps employees to overcome problems that stop them from carrying out their tasks, employees are given opportunities to attend relevant trainings and conferences and lastly employees are well compensated for their work. And participative leadership style whereby managers explains to the employees the importance of their input in decision making, employees are consulted by the leadership before making key decisions, all decisions made by leadership are shared in a timely manner with the employees and leaders listen receptively to the ideas and suggestions of employees. This was justified by Anova table listed in 4.13 which showed the relationship between leadership style has significant effect on employee’s performance whereby the respondents N is 98 and the significant level is 0.01, the results indicate that independent variable has positive high correlation to dependent variable equal to .85.6** and the p-value is .000 which is less than 0.01. When p-value is less than significant level, therefore researcher conclude that variables are correlated and null hypothesis is rejected and remains with alternative hypothesis. This means that there is a significant relationship between leadership style and employee’s performance. We can therefore conclude leadership style has significant effect on employee’s performance in Insurance Companies in Rwanda.
Keywords: Directive Leadership, Employee Performance, Insurance company, Leadership Style, Participative leadership: Supportive leadership.
Title: THE INFLUENCE OF LEADERSHIP STYLES ON EMPLOYEES PERFORMANCE OF INSURANCE COMPANIES IN RWANDA
Author: Eliphaz Gasasira, Dr. Jaya Shukla, Ngusale Vincent
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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