The effect of leadership styles on organizational culture and employee performance

This thesis examined the interrelated subjects of leadership styles, organizational culture, and employee performance, which are critical factors for organizations. Specifically, it assessed the impacts of leadership styles and organizational culture on employee performance and further explored the mediating role of organizational culture in this relationship. A relational screening model-based quantitative research design was employed. The sample comprised 320 employees from organizations across various sectors in Turkey. Data were obtained via online survey forms and analyzed with IBM SPSS 26.0 and AMOS 24 software packages. Research revealed that leadership styles and organizational culture explained a 29% variance in employee performance. Among the leadership styles examined, only autocratic leadership was observed to directly and positively influence employee performance at a statistically significant level, whereas democratic, laissez-faire, transformational, and transactional leadership styles did not demonstrate significant direct effects. Findings revealed that organizational culture exerted a significant and positive direct influence on employee performance. Leadership styles were also found to account for 47% of the variance in organizational culture. However, democratic and laissez-faire leadership styles did not exert significant effects on organizational culture, whereas autocratic leadership was linked to negative outcomes, and transformational and transactional leadership positively influenced organizational culture. Findings revealed that autocratic, transformational, and transactional leadership styles indirectly influenced employee performance through organizational culture, and these influences were statistically significant. While autocratic leadership exerted a negative indirect influence, transformational and transactional leadership styles generated positive indirect influences. Keywords: Leadership, Organizational Culture, Performance, Employee, Organization