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Impact of Transactional and Transformational leadership on NGO Performance in Masvingo Province-Zimbabwe

Impact of Transactional and Transformational leadership on NGO Performance in Masvingo Province-Zimbabwe

Pamire Jongwe

Catholic Diocese of Masvingo, Masvingo 15B Glyntor Road, Clovelly, Masvingo, Zimbabwe

DOI: https://doi.org/10.51244/IJRSI.2025.12020015

Received: 25 January 2025; Accepted: 30 January 2025; Published: 28 February 2025

ABSTRACT

This article examines the impact of transactional and transformational leadership styles on non-governmental organization (NGOs) performance in Masvingo Province-Zimbabwe. The research used a descriptive quantitative design. The study used a quantitative approach to survey participants from the NGOs in the region and the respondents were the leaders and the management in this sector. 64 leaders and management of all the twenty-four (24) NGOs actively operating in Masvingo Province were included and were stratified into two strata according to nature of business, The findings indicate a positive impact of transactional and transformational leadership styles on organisational performance. However, the study shows many related leadership challenges that includes; failure to embrace upward feedback, failure embrace change management strategy, unclear grievance handling procedures, high Staff turnover and unclear communication channels. The study recommends that leadership need to be hybridised with sustainable approaches such as capacity building workshops for leaders, implementation of staff retention programs and most significantly there is need to adopt both transactional and transformational leadership styles in the NGO sector.

Keywords: Transactional leadership, Transformational leadership, Non-Governmental Organisation, Performance, Masvingo Province.

INTRODUCTION

Non-governmental organisations play an important role in the economic and social systems of many countries, mainly those in the developing world. This paper evaluates the role of NGOs in development and community support in Masvingo Province. In many developing countries like Zimbabwe, the decline of development institutions has resulted in a vacuum that NGOs have stepped into as surrogate service providers (Mapfumo, 2023). Shava (2021) argue that there seem to be few clear guidelines about the role of NGOs in relation to their client population and about the kinds of dialogue, cooperation, and monitoring that need to be established. Hence, Dube (2020) claims that there is a need for developing country governments and international aid mechanisms to reassess their relationship with NGOs and to facilitate structures that encourage NGOs to be accountable and effective instruments of development and social change. The paper analyses how leadership styles affect organizational performance within Non-Governmental Organizations. Specifically, the study aims to investigate the influence of transactional and transformational leadership styles on the performance of Non-Governmental Organizations in Masvingo Province. According to Nielsen et al.  (2019), transactional and transformational leadership styles represent two distinct approaches to leadership within organizations. The authors explain that transactional leadership focuses on exchanges between leaders and followers, emphasising the importance of rewards and punishments to motivate performance. Leaders using this style set clear expectations, provide feedback, and use contingent rewards to encourage desired behaviors. In contrast, transformational leadership inspires and motivates followers by appealing to higher ideals and values (Cho et al., 2019). Kajongwe and Chirovamavi (2020) found out that transformational leaders often exhibit charisma, vision, and the ability to empower and develop their team members. They aim to create a shared vision, foster innovation, and promote a culture of continuous improvement within the organisation. Chitiga (2018) points out that both styles have their unique strengths and are effective in different contexts, offering leaders versatile tools to influence and guide their teams towards success. In their study Beauty and Aigbogun (2022) posit that transactional leadership in NGOs often facilitates efficient day-to-day operations through clear expectations and rewards, while transformational leadership inspires a sense of purpose and dedication among members, fostering innovation and sustainable impact.

There exists a notable gap in comprehending the distinct impacts of transactional and transformational leadership within the NGO sector in Masvingo Province. This study endeavors to evaluate the degree to which these leadership styles influence organisational performance in NGOs in Masvingo Province. By elucidating this relationship, it is anticipated that informed recommendations can be formulated to improve leadership practices in the context of Masvingo Province’s NGOs. This research aims to address this gap by offering empirical data on the pivotal role played by these leadership styles in shaping organizational outcome.

LITERATURE REVIEW

This section explores existing literature on the impact of transactional and transformational leadership styles in enhancing NGO performance.

Transactional leadership style

Transactional leadership involves an exchange between leaders and followers (Badarai et al., 2023). The exchange of abilities, information, resources, or effort between leaders and their subordinates is the main focus of transactional leadership. In order to achieve a particular result, this leadership style places a higher priority on personal interests and external motivation. It uses a system of rewards and penalties to accomplish short-term objectives. Purwanto et al. (2020) describes transactional leadership, as leaders providing followers with something they desire in exchange for what the leaders seek. This leadership style is typically centered around the exchange of tangible rewards for commendable efforts, fostering a relationship where leader and follower engage in various forms of trade or exchange, whether economic (like wages or job opportunities), social (such as promotions), or psychological (like friendship). Lai (2011) cautions that this approach can have negative repercussions; if followers come to expect rewards solely for performance, they may neglect tasks without incentives.

Badarai et al. (2023) further explain that transactional leaders motivate their subordinates through contingent rewards, corrective actions, and enforcing rules, primarily addressing the physical and security needs of their team members. While transactional leadership can encompass certain values, these values primarily pertain to exchange processes such as honesty, responsibility, and reciprocity. Lumbantoruan et al. (2020) indicate that the relationship between transactional leaders and their subordinates is characterised by three key elements: understanding the desires of subordinates and clarifying the rewards aligned with meeting expectations, exchanging efforts made by subordinates for rewards, and being attentive to the personal interests of subordinates as long as these interests correspond to the value of their contributions.

Additionally, Badarai et al. (2023) delineate the defining characteristics of transactional leadership into two main aspects: contingent rewards, where leaders communicate the actions required by subordinates to earn specific rewards and ensure that these rewards are received in exchange for their efforts, and exception management, where leaders proactively oversee the performance of their subordinates and promptly address any errors to maintain efficiency and effectiveness

Transformational Leadership Style

Transformational leadership goes beyond merely managing day-to-day tasks (Kotamena, 2020).  Transformational leaders inspire and motivate followers towards a common vision and collective goals. According to Nazim (2016), transformational leaders have the ability to create a compelling vision of the future, instill a sense of purpose and meaning in their followers, and empower them to reach their full potential. These leaders are known for their charisma, intellectual stimulation, individualised consideration, and inspirational motivation, traits that help cultivate a culture of innovation, growth, and organisational excellence.

 Kotamena et al. (2020) suggest that transformational leaders play a crucial role in fostering a positive organisational culture and driving high levels of employee engagement and commitment. By encouraging creativity, challenging the status quo, and promoting a shared vision, transformational leaders can inspire their teams to surpass expectations and achieve exceptional results (Budur, 2020). This leadership style is particularly effective in times of change and uncertainty, as transformational leaders have the ability to adapt, communicate effectively, and mobilize their followers towards common objectives, fostering a sense of unity and purpose within the organization.

Transactional leadership and NGO performance

Transactional leadership plays a pivotal role in influencing the performance dynamics within NGOs (Njeru,2022). Mapfumo (2023) points that transactional leadership is characterised by the establishment of clear expectations, delineation of roles, and setting of specific goals for employees. This structured approach not only enhances task performance (Munene & Nyaga, 2021) but also facilitates goal achievement within the organization. Demir and Budur (2019) inform those rewards and incentives in exchange for meeting predetermined objectives, transactional leaders effectively motivate employees to deliver results efficiently.  Demir and Budur further explain that the reward-based system serves as a mechanism to drive short-term performance metrics and ensures the timely completion of tasks, thereby contributing to the overall operational effectiveness of NGOs (Badarai, 2023). Furthermore, Munene and Nyaga (2021) argue that monitoring and controlling mechanisms inherent in transactional leadership practices aid in risk management within NGOs, ensuring that operations are conducted effectively and potential risks are identified and addressed promptly.

According to Njeru (2022), transactional leadership exerts a significant influence on employee engagement and job satisfaction levels. Through the provision of contingent rewards and corrective actions, transactional leaders incentivize employees to excel in their roles, leading to heightened job satisfaction and a greater sense of commitment towards the organisation’s objectives (Kajongwe, 2020). However, it is imperative to acknowledge that an exclusive reliance on transactional leadership may present limitations (Michael et al., 2021). While this leadership style can drive short-term performance outcomes and facilitate task completion (Munene & Nyaga, 2021), it may not necessarily foster a culture of innovation, creativity, or sustainable organizational growth (Mapfumo, 2023). To achieve enduring performance excellence in NGOs, a judicious blend of transactional and transformational leadership approaches is often advocated. Such an integrated leadership strategy strikes a balance between task-oriented management practices Njeru (2022) and inspirational leadership, thereby promoting employee development, fostering collaboration, and enhancing organisational adaptability to drive sustained performance outcomes in the NGO sector (Michael et al., 2021).

Transformational leadership Style and NGO performance

Transformational leadership is a critical factor influencing the performance and effectiveness of NGOs (Razzaq, 2020). Ali et al. (2020) record that within the context of NGOs, transformational leaders play a pivotal role in inspiring and motivating their teams towards a shared vision and common goals.  Dube (2020) posits that by articulating a compelling vision of the future, instilling a sense of purpose and meaning in employees, and empowering them to reach their full potential, transformational leaders create a culture of innovation, growth, and excellence within the organisation. According to Badarai et al. (2023), charismatic and inspirational qualities of transformational leaders, along with their ability to stimulate intellectual growth and provide individualised consideration to team members, foster a work environment that encourages creativity, collaboration, and high levels of employee engagement. Research has indicated that transformational leadership in NGOs is associated with increased employee commitment, job satisfaction, and organisational citizenship behaviors, which in turn positively impact overall performance outcomes (Shava, 2021).

Furthermore, the transformative impact of transformational leadership on NGO performance extends beyond individual-level outcomes to encompass broader organisational effectiveness. Transformational leaders within NGOs are adept at fostering a positive organisational culture that values innovation, adaptability, and continuous improvement (Lumbantoruan et al., 2020). Michael (2021) assume that by challenging the status quo, encouraging a shared vision, and promoting a climate of open communication and collaboration, transformational leaders can drive organisational change and enhance operational efficiency within NGOs. Micheal further explains that their ability to inspire and motivate employees to go above and beyond their regular duties contributes to enhanced team cohesion, improved decision-making processes, and a greater focus on achieving the organisation’s mission and objectives (Mapfumo, 2023). Ultimately, the visionary and inspirational leadership provided by transformational leaders in NGOs plays a crucial role in driving sustainable performance outcomes, fostering a culture of excellence, and ensuring the long-term success and impact of the organisation’s initiatives and programs.

METHODOLOGY

Research Paradigm

According to Taherdoost (2022), a research paradigm is a way of examining social phenomena from which particular understandings of these phenomena can be gained and explanations attempted. They are like “colored glasses” that govern how we view the world, what we believe is the best way to study the world, and how we structure our thoughts and our observations (Pervin & Mokhtar, 2022. The research used positivism philosophy. Positivism is a research paradigm grounded in the belief that knowledge should be derived from observable phenomena and empirical evidence, emphasizing objectivity, measurable data, and scientific methods. Positivism is an epistemological position that advocates working with an observable social reality. The emphasis is on highly structured methodology to facilitate replication, and the end product can be law-like generalisations similar to those produced by the physical and natural scientists (Iovino& Tsitsianis, 2020). Likewise, Gupta and Gupta (2022) state that the positivist researcher will be likely to use a highly structured methodology in order to facilitate replication. Furthermore, the emphasis was on quantifiable findings that landed to statistical analysis using the SPSS data analysis software. A standard questionnaire for management and employees was developed.

Research Paradigm

As discussed within the research paradigm framework emphasising positivism for quantitative research, this study adopted a descriptive survey research design to investigate the impact of transactional and transformational leadership styles on NGO performance in Masvingo Province. The utilisation of quantitative method in this research design was deliberate, aiming to quantitatively assess the influence of these leadership styles on NGO performance. The selection of a descriptive survey design was strategic as it enabled the collection of data from a large number of respondents, offering a comprehensive understanding of how transactional and transformational leadership impact organisational performance. Noteworthy researchers such as Luoma & Hietanen (2024), Pilcher & Cortazzi (2024) and Tanjung et al. (2024) advocate for the merit of quantitative research methods due to their objectivity, reliability, precision, capacity for analyzing significant sample sizes, and ability to generate results that are generalisable and reproducible. These characteristics render quantitative methods particularly effective for hypothesis testing, trend identification, and informing decision-making processes.

Population and Sample

This study focused on registered NGOs in Masvingo Province which operate in various fields including, poverty alleviation, peace building, and livelihoods. The selected participants were requested to respond to structure questionnaire. 64 leaders and managers of all the twenty four (24) NGOs actively operating in Masvingo Procvince were included and were stratified into two strata according to nature of business.

Data Collection

Primary data collection involved self-administered questionnaires distributed to NGO leaders and management. The questionnaires comprised Likert-scale queries aimed at evaluating participants’ perspectives on the impact of transactional and transformational leadership style on NGO performance in Masvingo Province.

Data Analysis

The collected data underwent analysis utilising descriptive statistics, encompassing frequency counts and percentages. Statistical techniques were applied to ascertain the correlation between transactional and transformational leadership and NGO growth, with the findings presented through tables and figures.

RESULTS

Transactional Leadership Style

Transactional leadership sub- variables considered in the study were; contingent reward, management by exception (passive) and management by exception (active). These measures were calculated based on SPSS coding of responses. Responses were based on a 5 point modern Likert-scale ranging from 1 to represent strongly agree, 2- agree, 3- neutral, 4- disagree, and 5- strongly disagree.

Contingency reward

The results in table 1 below shows that about 46.9% of the respondents agreed that leaders motivate their subordinates through telling them what to do and they want to be rewarded for their work. Literature also recognised that the relationship that evolves between the leader and the follower is based on bargaining exchange or reward systems (Badarai, 2020). In contrast to this sensation, the majority 67.2% disagreed that they do not provide rewards if subordinates meet their goals. In addition, the majority 64.1% agreed that they clarify the responsibility for achieving targets. Thus, despite the fact majority of these organisations do not provide rewards to their subordinates, they largely show resemblance of contingent reward characteristics since only one aspect deviated from the assertion.

Table 1: Contingent reward

Strongly Agree Agree Not Sure Disagree Strongly Disagree
Count Row N % Count Row N % Count Row N % Count Row N % Count Row N %
We tell subordinates what to do if they want to be rewarded for their work 11 17.20% 30 46.90% 6 9.40% 13 20.30% 4 6.20%
We provide rewards if subordinates meet their goals 2 3.10% 7 10.90% 3 4.70% 43 67.20% 9 14.10%
We clarify the responsibility for achieving targets 4 6.20% 41 64.10% 6 9.40% 10 15.60% 3 4.70%

 Management by exception (passive)

In applying this approach, it was expected that leaders in NGOs were also managing by exception through attending only to exceptionally important matters. Thus, management by exception (passive) refers to leader styles where the leaders only intervene when problems arise, (Singh et al., 2021). It is defined as a technical method of management that enables managers to focus their attention on the most critical areas of control in the firm and allows lower-level employees to accomplish different routine works. Thus, it is a principle of reciprocal leadership which means that the leader must not interfere in the work unless he notices deviations of the subordinates from the established rules and standards, and the intervention of the leader should only be focused on correcting the deviations or to make the employees achieve the required levels and standards (Raveendran, 2021).

Accordingly, table 2 below shows the responses from NGO Leaders in respect to Management by exception (passive). It indicates that the majority of them 51.6% are satisfied when subordinates meet agreed standards, 50% confirmed that they only take action when things go wrong and lastly 48.4% said, if things are working they do not change anything. It therefore, implies that it provides the leaders with opportunity and time to think and plan new projects and programs by using an advanced management style based on trust, credibility and self-control that empowers subordinates to participate in decision-making.

Table 2: Management by exception (Passive)

Strongly Agree Agree Not Sure Disagree Strongly Disagree
Count Row N % Count Row N % Count Row N % Count Row N % Count Row N %
We are satisfied when subordinates  meet agreed standards 33 51.60% 27 42.20% 1 1.60% 2 3.10% 1 1.60%
We only take action when things go wrong 15 23.40% 32 50.00% 6 9.40% 7 10.90% 4 6.20%
If things are working, We don’t change anything 31 48.40% 18 28.10% 8 12.50% 5 7.80% 2 3.10%

Management by exception (Active)

 Literature highlights that management by exception (active), refers to leaders who actively monitor the work of followers and ensure that the standards set are met (Hilton et al., 2021). This is where leaders observe and monitor for any mistakes or that happen and apply corrective action once the problem happen. This type of a leader will ensure that policy is understood clearly and followed while closely monitoring them to ensure that any gaps are quickly resolved if not prevented. The results in table 3 below indicates that the majority of the respondents 40.6% do not take action before problems are chronic, although this was highly unexpected, and again 68.8% do not work out agreements together with subordinates, even though 51.6% confirmed that they monitor performance and keeps track of mistakes. Therefore, on this aspect, the leaders’ practices fall short of the requirements of a transactional leader on two critical areas.

Table 3: Management by exception (Active)

Strongly Agree Agree Not Sure Disagree Strongly Disagree
Count Row N % Count Row N % Count Row N % Count Row N % Count Row N %
We take action before problems are chronic 9 14.10% 9 14.10% 5 7.80% 26 40.60% 15 23.40%
We work out agreements with subordinates 6 9.40% 4 6.20% 5 7.80% 44 68.80% 5 7.80%
We monitor performance and keeps track of mistakes 8 12.50% 33 51.60% 9 14.10% 7 10.90% 7 10.90%

Transformational Leadership Style

Fundamentally, it was expected that if Leaders in NGOs shows a high level of concern for people it will facilitate multiple level of performance in response to the need of the changing work environment. Additionally, these are the leaders which are pertinent to the social sector such as NGOs because of the trying nature of the non-profit world. Incorporated in this type of leadership style are various kinds of behavioural components such as idealized influence, inspirational motivation, intellectual stimulation and individual consideration (Manley, 2024). The analysis was also framed under these specific sections and presented hereunder.

 Idealised Influence

According to Akpan (2023), idealised influence encompasses behaviours that instill pride in followers for being associated with the leader often connoted to charisma. It therefore indicates that a leader will go beyond their individual self-interest for the greater good of the group and make personal sacrifices for others’ benefit and is able to reassure others that they can overcome obstacles. The results in table 4 below shows some resemblance of this type of a leader under the idealised influence factor in the NGO sector, given that the majority 60.9% agreed that they instill a sense of pride in subordinates, also 59.4% also confirmed that they always consider the moral and ethical consequences of our decisions and lastly, 64.1%  emphasises the importance of having a collective sense of mission to their subordinates.

Table 4: Idealised influence

Strongly Agree Agree Not Sure Disagree Strongly Disagree
Count Row N % Count Row N % Count Row N % Count Row N % Count Row N %
We instil a sense of pride in subordinates 17 26.60% 39 60.90% 5 7.80% 2 3.10% 1 1.60%
We always consider the moral and ethical consequences of our decisions 24 37.50% 38 59.40% 2 3.10% 0 0.00% 0 0.00%
We emphasise the importance of having a collective sense of mission to our subordinates 41 64.10% 21 32.80% 2 3.10% 0 0.00% 0 0.00%

 Inspirational Motivation

The inspirational motivation factor considers leaders who talk positively about the future and express a persuasive vision for that future. These are the leaders who talk about what needs to be accomplished, but express confidence that those goals will be achieved. Chua and Ayoko (2021) note that person who uses inspirational motivation also creates an exciting image of what is essential to consider and encourages a sense of team spirit, creating general enthusiasm especially towards difficult challenges.

It was also expected that this factor is inculcated in NGOs, where enthusiasm and motivation are also needed in order to maintain optimism throughout all levels of the organisation. Notably, the factor was also positively established among the leaders who participated in the study. Thus, the results in table 5 below indicates that the majority of the respondents inspire their subordinates as part of motivation given that 65.6% agreed that they articulate a compelling vision of the future to their subordinates, 53.1% also strongly agreed that they help subordinates to find meaning in their work and lastly, 56.2% said they expresses with confidence that goals will be achieved.

Table 5: Inspirational Motivation

Strongly Agree Agree Not Sure Disagree Strongly Disagree
Count Row N % Count Row N % Count Row N % Count Row N % Count Row N %
We articulate a compelling vision of the future to our subordinates 18 28.10% 42 65.60% 4 6.20% 0 0.00% 0 0.00%
We help subordinates to find meaning in their work 34 53.10% 26 40.60% 2 3.10% 2 3.10% 0 0.00%
We expresses with confidence that goals will be achieved 36 56.20% 27 42.20% 1 1.60% 0 0.00% 0 0.00%

Intellectual Simulation  

The results in table 6 below also suggests that the respondents utilise intellectual stimulation which encourages non-traditional thinking and suggests new ways of looking at how to complete assignments. Literature also confirms that this factor of transformational leadership is engrained naturally within the social sector because employees are often attracted to certain non-profits because they are cognisant of the direct impact they can make, (Chua & Ayoko, 2021).  These are the leaders who seek differing perspectives when solving problems, and gets others to look at those problems from a different angle as well.

Notably, most of the respondents 51.6% said they always seek differing perspectives when solving problems, 65.6% also noted that they provide subordinates with new ways of looking at how to complete puzzling assignments and 56.2% emphasised that they always encourage our subordinates to think more creatively. Thus, they displayed the great degree to which they represent behaviours of intellectual simulation.  Accordingly, the results shown below:

Table 6: Intellectual Simulation

Strongly Agree Agree Not Sure Disagree Strongly Disagree
Count Row N % Count Row N % Count Row N % Count Row N % Count Row N %
We always seek differing perspectives when solving problems 26 40.60% 33 51.60% 5 7.80% 0 0.00% 0 0.00%
We provide subordinates with new ways of looking at how to complete puzzling assignments 15 23.40% 42 65.60% 7 10.90% 0 0.00% 0 0.00%
We always encourage our subordinates to think more creatively 36 56.20% 27 42.20% 1 1.60% 0 0.00% 0 0.00%

 Individualised Consideration

These transformational leaders who display individualised consideration spend time coaching and teaching their followers, and in doing so, promote self-development. They treat others as individuals, rather than simply group members, and identify the differing needs, abilities, and aspirations for those individuals and individualized consideration listen to others’ concerns and help others to develop their strengths, (Chua & Ayoko, 2021). Again, the results in table 7 shows that these characteristics also largely exist among the respondents except on one aspect where 51.6% of the respondents highlighted that they do not give personal attention to subordinates who seem rejected. However, 57.8% confirmed that they give careful attention to working conditions of employees and Additionally, 57.8% said agree that spend time teaching and coaching employees.

Table 7: Individualised Consideration

Strongly Agree Agree Not Sure Disagree Strongly Disagree
Count Row N % Count Row N % Count Row N % Count Row N % Count Row N %
We give personal attention to subordinates who seem rejected 5 7.80% 7 10.90% 5 7.80% 33 51.60% 14 21.90%
We give careful attention to working conditions of employees 27 42.20% 37 57.80% 0 0.00% 0 0.00% 0 0.00%
We spend time teaching and coaching employees 17 26.60% 37 57.80% 6 9.40% 4 6.20% 0 0.00%

ORGANISATIONAL PERFORMANCE

According to Alkandi and Helmi (2024), leadership styles influence organisational performance. The researcher sought to establish the impact of leadership on organisational performance in NGOs of Masvingo Province. Accordingly, 6 sub-variables were considered in an attempt to establish the performance of NGOs in Masvingo District and the results are shown in table 8 below.

Table 8: Organisational Performance

Strongly Agree Agree Not Sure Disagree Strongly Disagree
Count Row N % Count Row N % Count Row N % Count Row N % Count Row N %
The Organisation is able to effectively use resources 50 78.10% 14 21.90% 0 0.00% 0 0.00% 0 0.00%
We have undertaken all our programmes with much success 24 37.50% 25 39.10% 4 6.20% 5 7.80% 6 9.40%
We timeously respond to the needs of our stakeholders 31 48.40% 28 43.80% 4 6.20% 1 1.60% 0 0.00%
We have developed a strong network with our partners 25 39.10% 30 46.90% 6 9.40% 2 3.10% 1 1.60%
Our performance has guaranteed us constant access to funding 24 37.50% 37 57.80% 1 1.60% 2 3.10% 0 0.00%
The employees  are motivated 44 68.80% 19 29.70% 1 1.60% 0 0.00% 0 0.00%

The results in table 7 above show that the majority 78.1% of the respondents noted that their organisations are effectively use resources, 39.8% confirmed that they have undertaken all  programs with much success, 48.4% also highlighted that they timeously respond to the needs of the stakeholders, 46.9% said they have developed a strong network with their partners, 57.8% confirmed that their performance has guaranteed them constant access to funding and lastly, 68.8% highlighted that employees are well motivated. This shows that these organisations are

being effectively managed by their leaders. This concurs with Jongwe et al. (2024) who posits that management skills positively influences organizational growth.

INFERENTIAL STATISTICS

Reliability Test

For any research data to be reliable, the data has to have a high degree of internal consistency. The research used the Cronbach alpha to estimate the reliability of the data and the level of internal consistency and reliability of the scale used by the research. The research had a Cronbach alpha figures which were high indicating that there was a high degree of reliability and internal consistency of the data used in the research and hence this provides a good justification for reliance on the analysis of the data used by the research. A Cronbach alpha of 0.60 or 60% as a minimum level is acceptable (Osman, 2021). The results are shown in table below:

Table: 9 Cronbach Alpha Reliability Statistics

Variable Number of items Cronbach’s Alpha
Transactional Leadership 9 0.851
Transformational Leadership 0.884
Organisational performance 6 0.782

HYPOTHESES TESTING

The purpose of this study is to asses empirically the impact of leadership style on organisational performance and consequently Chi-square tests were done to test the hypotheses under consideration and the results are shown below:

H1 There is a positive significant relationship between transactional leadership style and organisational performance in NGOs.

The results in table 10 below shows that the p-value 0.002 is less than 0.05, we therefore accept the H1 and conclude that there is a positive significance relationship between transactional leadership style and organisational performance in NGOs.

Table 10: Hypotheses H1

Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 16.506a 4 0.002
Likelihood Ratio 21.689 4 0
Linear-by-Linear Association 1.165 1 0.28
N of Valid Cases 64
a. 6 cells (60.0%) have expected count less than 5. The minimum expected count is .88.

H2 Transformational Leadership style and organisational performance are positively related

Again, the results shows that Transformational Leadership style and organisational performance are positively related given the p-value .003 is less than .05 at 5% significance level. We therefore accept H2 and conclude that there was statistical evidence of the relationship from the study.  The results are shown in table 14 below:

Table 11: Hypotheses H2

Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 15.808a 4 0.003
Likelihood Ratio 17.834 4 0.001
Linear-by-Linear Association 12.337 1 0
N of Valid Cases 64
a. 7 cells (70.0%) have expected count less than 5. The minimum expected count is .22.

According to the results of this study, both transactional leadership and transformational leadership has a positive relationship with organisational performance. The study findings reaffirm Krasniqi et al. (2024) who found that that transactional and transformational leadership has a positive relationship with organisational performance, although they also noted that the impact is comparatively less for transactional than transformational leader. The results shows that leadership styles have a pronounced effect on organisational performance in NGOs. Thus, the performance of an NGO is directly relational to leadership styles.

LEADERSHIP RELATED CHALLENGES AND SUGGESTED SOLUTIONS

The leaders were also asked to respond on the leadership related challenges they were facing and the results in table 15 below indicates the major challenges highlighted by the respondents. Notably, the percentages show a segment Leaders who stated that challenge and they do not add up to 100% because each respondent mentioned more than one challenge. The most significant challenges indicated were unclear grievance handling procedures and high staff turnover. This concurs with Ratnasari et al. (2020) who established that unclear grievances handling procedures leads to high staff turnover.

Table 12: Challenges

Challenge Valid Percentage
Factor 1 Failure to embrace upward feedback 17%
Factor 2 Failure embrace change management strategy 23%
Factor 3 Unclear grievance handling procedures 97%
Factor 4 High Staff turnover 91%
Factor 5 Unclear communication channels 33%

The respondents were also asked to make suggestions to overcome leadership challenges in NGOs. Table 11 shows the major suggestions were mentioned by the respondents and the results indicate that capacity building workshops are of paramount importance in enhancing the performance of leaders in NGOs.

Table: 11 Suggestions

Suggestions Valid Percentage
1.      Capacity building workshops for leaders 93%
2.      Implement staff retention programs 53%
3.      Realign the systems based on the operating environment 21%
4. Addressing the Skills gap 5%

METHODOLOGICAL LIMITATIONS AND FURTHER RESEARCH

Despite the valuable insights provided by this study, there are several methodological limitations that can be considered. One limitation is the sample size and geographical focus of the study—limited to Masvingo Province—may not fully represent the experiences of NGO owners in other regions, potentially limiting the generalisability of the findings.

Further research could address these limitations by expanding the sample size to include NGO owners from diverse regions and industries in Masvingo Province. Longitudinal studies could also provide more insights into the long-term impact of technical skills on NGO growth, particularly in relation to other factors such as management practices and access to resources. Additionally, future research could explore the effectiveness of specific technical training programs and their alignment with industry needs, to better understand how technical skills can be tailored to drive NGO growth.

In summary, while the study provides valuable insights into the perceived impact of transactional and transformational leader styles on NGO growth in Masvingo Province, it also reveals several limitations that could influence the findings. By acknowledging these limitations and pursuing further research, policymakers and NGOs support organizations can better understand how transactional leadership skills affect NGO performance in Masvingo Province

CONCLUSION

This study concludes that transactional and transformational leadership styles significantly influence NGO performance. While many participants acknowledge the importance of these skills, the other half perceive limited or no impact. The divergence in perceptions suggests that there are other leadership styles, such as servant leadership, charismatic leadership, democratic leadership, laissez-faire leadership, authentic leadership, visionary leadership, and adaptive leadership, that are equally critical in shaping NGO performance (Badarai, 2023).

PRACTICAL IMPLICATIONS INCLUDE:

   Leadership Training Programs:

  • Organisations can design leadership training programs that encompass a variety of leadership styles to cater to the diverse needs and preferences of employees. By offering training in servant leadership, charismatic leadership, democratic leadership, and other styles, NGOs can empower leaders to adapt their approach based on the situation and the team dynamics.

Tailored Leadership Development Plans:

  • Understanding the significance of multiple leadership styles, NGOs can create tailored leadership development plans for individuals at different levels within the organisation. This approach can help nurture a well-rounded leadership team capable of leveraging various styles to enhance organisational performance and meet the evolving challenges faced by the NGO.

Further research is needed to:

Comparative Analysis of Leadership Styles in Different NGO Contexts:

  • Conducting a comparative analysis of how various leadership styles impact NGO performance in different contexts and regions could provide valuable insights. This research could delve into the cultural, economic, and social factors influencing the effectiveness of leadership styles within NGOs operating in diverse environments.

Longitudinal Study on the Evolution of Leadership Styles in NGOs:

  • A longitudinal study tracking the evolution of leadership styles within NGOs over time could offer a deeper understanding of how leadership practices adapt to changing organizational needs and external factors. By examining the long-term effects of different leadership styles on NGO performance, researchers can uncover trends and patterns that contribute to sustained organizational success.

AUTHOR

Rev. Fr. Emmanuel Pamire Jongwe is a dedicated academic and researcher currently pursuing his PhD at the University of South Africa (UNISA). With a robust background in finance, management, and education, Pamire has made significant contributions to the field of business and entrepreneurship. Fr. Jongwe’s research interests and passions lie in financial management, entrepreneurship, leadership, counseling and SMME development. He is particularly enthusiastic about entrepreneurial skills, microfinancing, and business management.

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