Abstract
Employee performance in four-star hotels in Arusha has been inconsistent, partly due to varying managerial leadership styles. This study investigates the effects of these leadership styles on employee performance in Arusha City Council. The research is grounded in a positivist philosophy, utilizing a mixed-methods approach with a dominant quantitative descriptive design based on multiple linear regression. The study draws upon key leadership theories, including transformational and transactional leadership theories, and examines the impact of specific leadership styles: democratic, autocratic, and laissez-faire. Stratified random sampling was employed to ensure representation across various departments, targeting a total population of 287 employees, with a final sample size of 167 participants. Data were collected using questionnaires and analyzed through descriptive and inferential statistics with the aid of SPSS (version 20). Notable hotels included in the study are Mount Meru Hotel, Arusha Serena Hotel, and Kibo Palace Hotel. Regression analysis indicated that all leadership styles significantly affect employee performance, with democratic leadership having the most positive impact. The study concludes that contingent leadership is essential for creating a work environment conducive to better performance in four-star hotels.
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