Impact of transformational and transactional leadership on organizational performance

The study investigated the impact of transformational and transactional leadership styles on performance of manufacturing organizations in Cross River State of Nigeria. The objectives of the study are; to determine the relationship between transformational leadership style and organizational performance; to determine the relationship between transactional leadership style and organizational performance. Cross sectional survey design was adopted. The population of the study was made up of senior and junior workers of the three selected organizations in Cross River State. Systematic sampling technique was employed in selecting the organizations from the list of registered companies in the state. A sample size of 286 was drawn from the population of 1005 through application of Taro Yamane formular. Questionnaire was the main instrument for data collection and was designed in a 5- point Likert scale format supported with personal interview. The data collected were analysed with descriptive statistics, while the corresponding hypotheses were tested with Pearson Product Movement Correlation Coefficien at 0.05 alpha level. The findings indicate that there is significant positive relationship between transformational leadership style and organizational performance; there is a significant relationship between transactional leadership style and organizational performance. Thus, it was recommended that managers should adopt a leadership style that will enable him or her to successfully integrate and maximize available resource within the internal and external environment for attainment of organizational and societal goals.