The effects of leadership style on individualsÕ motivation and performance in the South African banking sector

Abstract

Leadership in organisations, and its effect on motivation and performance has been researched extensively for decades. Research has shown that leadership influences employee motivation and performance and that effective leadership in organisations can lead to a motivated workforce that enhances performance for the success of organisations. However, there has been limited research done on effective leadership at South African banks, and the effect of that leadership on employee motivation and performance. There is also a lack of empirical research on leadership, motivation and performance of senior managers and executives in the South African banking sector, a group considered important given the fact that they are responsible for the operational performance of their organisations. This study looks at the effects of leadership behaviours in the South African banking sector, and their influence on the motivation and performance of a diverse group of senior managers and executives, with a view to expanding the body of knowledge on the subject. A qualitative study involving interviews of senior managers and executives from the South African banking sector is undertaken. The study findings suggest that there are a number of dominant leadership styles in the South African Banking sector, and the respective traits are found to have both positive and negative impacts on motivation and performance of individuals.