LEADERSHIP STYLE AND ORGANIZATIONAL PERFORMANCE OF REMITTANCE COMPANIES IN MODADISHU-SOMALIA

Abstract

The purpose of this research was to examine the effect of leadership style on organizational
performance in remittance companies in Mogadishu-Somalia. The general objective of the study
was to establish the effect of leadership style on organizational performance in remittance
companies in Mogadishu-Somalia. The leadership style drivers will select for the study, and
which will form the specific objectives of the study are to determine the effect of Autocratic
leadership style, Democratic leadership style, Transactional leadership style, and
transformational leadership style on the performance of the remittance companies in MogadishuSomalia. The study discusses three theories, and they are: systems theory organization, Agency
theory and stakeholder theory. The study will adopt quantitative research with the specific
research design being a descriptive design. The population of the study is the classified
remittance companies locate in Bakara market, and they are 15 remittance companies in Bakara
market, the employees worked that 15 remittance companies are 402 employees. The sampling
frame is 402 employees in 15 remittance companies arising from the sample size of 200
employees will extensively surveyed to ascertain the influence of leadership style drivers on their
performance. The sampling technique use will be purposive sampling. Primary data will collect
by use of questionnaires which are administered through drop and pick method. Data screening
will be done to identify any missing data and it will be further test for reliability and normality.
Data will be analyzing using SPSS version 22. Descriptive statistics e.g standard deviations and
inferential statistics such as Pearson‟s correlation, ANOVA and multiple regression analysis will
be used for further analysis. The study results revealed that the manager does not explain his
actions to employees in the organization and only directs the employees to perform duties as
instructed. The study established that the manager takes decisions arbitrarily and that the
manager believes that employee will work best in a situation where they are given clear and
direct instruction on their job. The study concludes that the firms‟ staffs are, despite being
supervised closely, given enough freedoms and space to make their own decisions on how to
best execute given functions. The management involves employees in every decision-making
process affecting their jobs. The managers derive joy in helping their employees and
transforming them morally and professionally. The study concludes that the manager views
employees as having different needs, abilities, and aspirations and works towards individualized
attention through listening to individual needs. The researcher recommends that the management
of the organizations should always endeavor to explain their actions to employees emphatically