Effect of Leadership Styles on Gen-Z Work Performance: An Empirical Analysis

Abstract

The main purpose of this paper is to examine the relationship between leadership styles and Gen-Z workforce performance. A disproportionate stratified random sampling technique was used to select respondents from private secondary schools in Ogun State, Nigeria. Given a sampling frame of 1300 Gen-Z employees, this study adopted Cochran (1977) sample size method to analyse 279 usable questionnaires. The proposed structural model was assessed through established GOF indices. While specified hypotheses were tested using SEM. Findings show that confirmatory factor analysis reduced the measurement model to 20 items. In addition, the structural model showed GOF indices of χ² / df ratio (438.572 / 166) = 2.642, RMSEA (0.053), TLI (0.901), and CFI (0.907). SEM hypotheses testing revealed that transformational leadership styles do not only have positive path estimates, but also established practical and statistically significant relationship with Gen-Z workforce performance. Contrary to previous research, laissez-faire leadership style was found to be positive and significant with Gen-Z performance. Perhaps, due to the autonomy it accorded Gen-Z cohort to handle tasks without interference. This style makes Gen-Z feel respected and empowered. However, transactional leadership style reported a different outcome. Transactional leadership style was found to be positive, but its path estimate was not practical and statistically significant (β = 0.07, p = 0.120) with Gen-Z work performance. Hence two out of three specified hypotheses were accepted. This paper has it contributions. By implication, its outcome addressed some equivocal issues in leadership literature. Theoretically, it extends body of knowledge on empirical linkage between leadership styles and the digital natives (Gen-Z). Also, the paper impliedly suggests to CEOs / HR / management experts on formulating and implementing policies that will motivate, inspire, and retain Gen-Z in their organisations. Practically, the established relationship between laissez-faire leadership style and Gen-Z cohort suggests that Gen-Z can practically come on board with their ideas and work as ally with their leaders towards achieving the overall organizational goals. There are limitations which may have biased the outcome of this study. Hence, potential areas for further studies have been highlighted.