General studies There are number of evidences depicting that the employee performance depends upon the leadership behavior. Many sociologists identifies transformational leadership is the best among all and it suits for modern organizations. Modern business environment requires the kind of leadership style which increases employee performance and empowers employees to achieve the organizational goals. Many persons concluded that transformational type of leadership is better than transactional leadership as this do not give much importance to employee performance. The transformational leadership correlates with employee satisfaction and good organization performance. In any organization, if the leadership style …show more content…
The effect of leadership styles on employee performance in public vs. private sectors in India are examined by Raja and Palanicahmy. This study found that there is a linear relationship between employee performance and transformational leadership with sufficient evidence. This study also found some negative relationship with employee outcomes in Laissez-Faire leadership. A number of studies have been conducted on the effects of leadership styles on employee performance as leader and leadership styles play a crucial role in the recent studies. After all the studies Rossol et al concluded that transformational leadership styles have more positive effect on employee performance than transactional leadership. Their study explored that the impact of transactional leadership was not much stronger as compared to transformational leadership on job performance and this leadership can perform better in highly organic …show more content…
Many reviews suggested that both the transformational and transactional leadership styles are positively related to employee performance. From the review of literature it is evident that the research evidence on the effect of leadership style on employee performance that leadership style can explain significant number of performance outcomes at individual organizational level. In the research on leadership styles and employee performance while some are reporting the negative relationship, others have reported positive ones. It is evident that evidence from banking sector is lagging