Abstract:
The purpose of this study was to examine the effect of perceived leadership style as independent
variable and its implication on the level of employees' motivation as a dependent variable. The
dimensions are Transformational leader ship style and Transactional leadership style dimension
and considering Laissez faire leadership style for both transformational and transactional
leadership dimension. A quantitative approach and across sectional survey design was used to
gather data pertaining to the impact of effective leadership on employee motivation for the
purpose of the research objectives and a multiple linear regression analysis research design
were used in this study. Nine hypothesis were proposed to test the relationship between the
transformational, transactional and laissez fair leadership style dimensions and employee
motivation. The research instrument was a structured questionnaire. The Multifactor Leadership
Questionnaire (MLQ) was adapted to measure the different dimensions of transformational
leadership style while motivation was measured using seven motivational drivers (Motivation
potential assessment(MPA)-(wonderlic/www.wonderlic.com/)itemsdrawn from preexisting
questionnaires. The questionnaires contain different elements drawn from the full range
leadership development model, developed by Bass and Avolio(1995) MLQ)and employees
motivation from seven motivational potential assessments. The findings of the study revealed that
Intellectual stimulation, idealized influence behavioral dimensions of transformational leadership
style and management by exception active and laissez faire leadership dimensions of
transactional leadership style were found to be significantly related to motivation. It is
recommended that they adopt a transformational leadership style rather than transactional or
laissez-faire styles to enhance employee’s motivation consistently and efficiently; which will in
turn generate higher quality performance on the employee’s part and boost business performance
and the leaders should avoid any laissez-faire behavior.