The effect of leadership styles on employee’s performance in Ethiopian sports organizations with mediating and moderating roles

Ethiopian sports organizations are currently facing significant leadership challenges that have hindered their effectiveness and competitiveness. In international competitions such as the Olympics, the once dominant position of Ethiopia sports has been increasingly threatened, with a declining trend in athletic performance. A key issue contributing to this decline is the appointment of non-professionals to critical leadership positions, a consequence of ineffective leadership practices. This has negatively impacted athletic performance. The lack of transparency in leadership election processes, as exemplified by the recent activities within the Ethiopian Olympic Committee, has generated uncertainty and dissatisfaction among employees. Furthermore, allegations of nepotism and favoritism in athlete selection have eroded trust in leadership, as athletes have raised concerns about biased criteria influencing their opportunities to compete fairly^1,2. These issues have significantly affected employee performance (EP) and the overall development of sports in Ethiopia. Currently, Ethiopia’s economy is underdeveloped, resulting in a scarcity of financial resources dedicated to the development of sports organizations. This, in turn, has made it difficult to cultivate outstanding sports management talents, and many leaders of sports organizations exhibit a lack of professional expertise and managerial competence. On the other hand, Ethiopia faces complex political dynamics nationally, with notable issues of opacity in the election and appointment processes within sports organizations. The election and appointment processes are often irregular and insufficiently monitored. Consequently, the leaders selected often lack specialized knowledge or backgrounds in sports management, which hinders the formation of effective management within sports organizations. Within this context, laissez-faire leadership (LF) has become the predominant leadership style within Ethiopian sports organizations.

In today’s highly competitive environment, organizations are increasingly aware of the vital importance of enhancing employee performance to achieve their objectives. Effective leadership plays a crucial role in shaping subordinate job performance, as human resources are identified as a key asset that can enhance outcomes and provide a competitive advantage^3,4,5. Research consistently demonstrates a strong correlation between different leadership styles and employee performance, highlighting how leadership influences productivity, motivation, and job satisfaction (JS)^3,6. Leadership was defined as the process of guiding and influencing others to achieve specific organizational goals within a given timeframe⁷. This involved motivating and directing employees to promote job satisfaction and enhance performance^8,9. Leadership effectiveness is measured by the enhancement of employee performance and the achievement of organizational objectives³.

Organizations that failed to ensure job satisfaction often struggled to remain competitive, as lower performance standards impeded success¹⁰. Leaders who empower employees through increased responsibility, involvement in decision-making, and delegation contribute to higher job satisfaction^11,12. Conversely, poor administrative practices, such as unfair recruitment and poor working conditions, led to job dissatisfaction¹³. Leadership styles significantly influence employee performance, where effective styles can enhance productivity and foster innovation¹⁴. Selecting the appropriate leadership style is essential for motivating employees and achieving organizational objectives, as different situations may require different approaches³. Therefore, developing a flexible leadership model tailored to the specific needs of both leaders and employees is crucial for achieving optimal performance^15,16.

Effective leadership is critical for achieving organizational goals within sports organizations¹⁷. Strong leadership is crucial for improving organizational performance by navigating challenges, inspiring change, and fostering environments that encourage learning and adaptability among teams¹⁹. Scott¹⁷ highlighted that transformational leadership (TFL) can inspire and motivate team members, leading to better outcomes, while laissez-faire leadership style may be less effective in addressing the unique challenges faced by sports organizations. To achieve the desired outcomes, leaders within sports organizations need to effectively manage employee emotions, communicate well, and align their efforts with strategic objectives¹⁸, motivating employees, managing change, and fostering a shared vision⁹. Thus, the ability to foster motivation, collaboration, and engagement among team members exemplifies the critical role of effective leadership in enhancing overall performance. Hence, this study aims to investigate how different leadership styles (transformational, transactional, and laissez-faire) impact employee performance in Ethiopian sports organizations.

Literature review

Leadership style

Several studies have explored leadership styles’ impact on organizational and individual success. Jamaludin¹⁵ and Van Wart¹⁶ emphasized effective leaders’ ability to benefit both followers and organizations. Effective leadership not only enhanced the quality and efficiency of goods and services but also fostered employee cohesion and personal development, thereby augmenting job satisfaction and providing clear organizational direction and vision¹⁶. Various leadership theories have been scrutinized, positing various perspectives on traits, behaviors, adaptability to situational factors, and distinct leadership styles¹⁷. Transformational leadership, introduced by Bass¹⁸ and applied in sport⁷, inspired followers to surpass expectations through charisma, personalized attention, and cognitive enhancement¹⁹. Transactional leadership (TCL), as conceptualized by Burns²⁰, relied on a system of offering incentives or punishments based on individuals’ work performance²¹. Conversely, laissez-faire leadership, consistently described as ineffective and dissatisfactory, was highlighted by Judge and Piccolo²² and Bass² for its adverse impact on subordinate effort, performance, job satisfaction, and perceived leader effectiveness. Studies have indicated that transformational leadership was effective in cultivating team cohesion, organizational learning, and employee engagement, while transactional leadership focused on short-term goal achievement through rewards and punishment^23,24,25,26. Moreover, other research has emphasized that the effectiveness of organizational outcomes hinges significantly on the presence and influence of robust leadership, which facilitates the development of aligned leadership strategies¹⁷. Transformational leadership is characterized by leaders who, through charismatic influence, inspirational motivation, intellectual stimulation, and individualized consideration, make employees aware of their responsibilities and the significance of their tasks. This leadership style addresses higher-level employee needs and empowers them to fully realize their potential to achieve peak performance, thereby fostering the mutual growth and transcendence of both the individual and the organization. Ethiopian sports organizations are still in their early stages of development and need to adopt an effective leadership approach that can help them navigate current challenges, improve employee performance, and thus promote sustainable and rapid organizational development. This will, in turn, strengthen the overall capacity of Ethiopian sports organizations and help them adapt to the ever-changing landscape of sports.

In recent years, there has been significant progress in the study of organizational leadership within the field of sports management. Kang et al.²⁷ introduced the concept of shared leadership and elaborated its particular value and importance in sports development and peacebuilding. Kim et al.²⁸ investigated the relationship between authentic leadership, as demonstrated by coaches, and the well-being of athletes within sports teams. Lee²⁹ examined the impact of servant leadership displayed by managers in college sports organizations on the achievement of organizational development goals. Additionally, Swanson et al.³⁰ identified and constructed the foundational structures of implicit leadership theories in basic-level sports management.

Employee performance

Employee performance was a crucial factor impacting organizational profitabilit³¹. Anggarwati and Eliyana³² delineated employee performance as the measure of accomplishment in fulfilling work tasks and aligning with organizational expectations, policies, and role requirements. Muzakki et al.³³ further described employee performance as the result of an employee’s activities over a specific period compared to predetermined criteria, standards, and targets. Performance is a multidimensional construct that encompasses three fundamental dimensions. The first, task performance, refers to the execution of assigned responsibilities and the achievement of job-specific objectives. The second, adaptive performance, involves the ability of employees to effectively navigate and respond to dynamic and evolving situations by demonstrating flexibility, resourcefulness, and problem-solving capabilities. Lastly, contextual performance encompasses behaviors such as teamwork and helping colleagues, contributing to a positive work environment and overall productivit³⁴. Task performance specifically relates to the execution of designated job duties and responsibilities outlined in the job description, requiring cognitive prowess and primarily supported by task-specific knowledge, skills, and habits³⁴. Leadership task performance includes setting strategic goals, upholding standard performances, motivating and guiding staff, and providing recognition, inspiration, and constructive feedback^35,36. Adaptive performance denotes an individual’s capacity to adapt and modify their behavior in response to changing work circumstances. It entails effectively handling volatile work situations and adjusting interpersonal behaviors to harmoniously collaborate with a diverse range of coworkers³⁴. Contextual performance encompasses proactive actions that extend beyond the explicit specifications outlined in the job description yet contribute positively to the organization’s environment and culture³⁴. Such behaviors encompass volunteering for additional tasks, assisting colleagues, and fostering a positive attitude, even if not explicitly outlined in their job descriptions³⁴.

Job satisfaction

Job satisfaction is characterized as an individual’s emotional response or reaction to various aspects of their work and job environment³⁷. It is impacted by a range of factors including achievements, benefits, compensation, communication, working environment, job importance, autonomy, interpersonal relationships, organizational reputation, feedback, job stability, flexibility at work, team dynamics, managerial support, and even genetic predispositions^38,39. Job satisfaction serves as a critical metric for assessing employees’ overall contributions in the workplace and their inclination to remain with or depart from the organization. By comprehensively gauging the determinants of job satisfaction, organizations can bolster employee morale and achieve favorable outcomes⁴⁰. Job satisfaction is conceptualized through nine distinct dimensions, each representing a different aspect of the work environment. Pay refers to financial compensation, while promotion opportunities signify the potential for career advancement. Supervision reflects the quality of oversight and leadership provided by managers. Fringe benefits include supplementary perks and non-salary incentives. Contingent reward focuses on recognition and rewards tied to performance. Operating conditions encompass the physical and procedural environment that affects employee comfort and productivity. Co-worker relationships shape the social atmosphere in the workplace, and the nature of the work itself contributes to an employee’s overall sense of fulfillment. Lastly, communication satisfaction pertains to the effectiveness and clarity of information exchange within the organization’s structure³⁷.

Education level

Education has a pivotal role in human development, as highlighted by various authors and institutions. UNESCO⁴¹acknowledged its significance in enhancing economic growth, poverty reduction, and social development. Durkheim⁴² emphasized education’s role in socialization and the transmission of cultural values, underlining its fundamental nature. Piaget⁴³ and Vygotsky⁴⁴ contributed from a psychological perspective, asserting that education promoted cognitive development, equipped individuals with essential skills, and facilitated social interaction and higher-order thinking. Furthermore, many researchers have examined the association between education attainment and various aspects of performance and employee commitment toward the organization. Rahman⁴⁵ found that profession and educational competence had a positive correlation with teacher performance, highlighting the importance of continuous competency development. Similarly, Ng and Feldman⁴⁶ emphasized the need to consider diverse job-related behaviors beyond core task performance, offering implications for recruitment, training, and organizational policies. Ariffin and Ha⁴⁷ suggested that workers with higher education levels exhibited stronger commitment to the organization, particularly in affective and continuance dimensions, indicating the significance of education in understanding commitment levels. Bakan⁴⁸ revealed that employees with higher education levels showed greater organizational commitment, particularly those with university degrees. Additionally, González⁴⁹ found that employees with lower education level displayed higher organizational commitment, possibly due to increased gratitude for job security.

Relations between leadership style and employee performance

Research has consistently demonstrated that competent leadership significantly enhances job performance, such as Knowledge-oriented leadership⁵⁰. However, despite the constructive relationship between leadership effectiveness and performance, numerous survey findings have indicated that insufficient leadership, characterized by tyrannical or passive behaviors, persists as a barrier to employee performance^51,52. Effective leadership, fostering commitment, and enhancing motivation are crucial for improving performance and productivity in sports organizations. Research on sports leadership underscored its critical importance and the inherent complexities within the sports industry. Barbuto¹⁷ and Kent⁷ investigated diverse leadership styles and their impact on employee motivation and organizational commitment. Similarly, the study underscored the crucial significance of understanding how the intricate facets of transformational leadership contribute to shaping and predicting the overall performance of employees within organizational settings⁵³. Wondirad⁵⁴ highlighted the importance of implementing appropriate leadership styles in the organization for achieving success. Milhem³³ investigated how employees’ perception of their leaders’ transformational style impacts their engagement. Matzler⁵⁵ explored how trust among colleagues affects satisfaction and loyalty among employees in sports organizations. Pushpanathan⁵⁶ delved into leadership’s broader impact on organizational performance, underlining the leaders’ important role in driving performance outcomes. Huml et al.⁵⁷ and Weerakoon⁵⁸ examined how employees in sports organizations deal with management issues, pointing out the importance of good leaders in handling these complexities. Euchner⁵⁹ underscored the strategic decision-making required in sports team relocations to manage relationships between teams and communities. Chelladurai and Kerwin⁶⁰ discussed the multifaceted nature of human resource management in sports, involving diverse stakeholder management and goal alignment. Arnold, Fletcher, and Molyneux⁶¹ emphasized effective leadership in high-performance sport settings. Shilbury⁶² and Forster⁶³ also explored sport governance’s complexities, reinforcing the need for leaders to understand regulatory and political landscapes. Effective leadership in sports requires adaptability, combining different types of leadership approaches according to situations and audiences, ultimately motivating employees, encouraging commitment, and improving organizational success.

Relations among job satisfaction, leadership style, and employee performance

Exploring diverse leadership styles has unveiled their significant impact on employee satisfaction and organizational loyalty, underscoring the pivotal role of adaptability in leadership approaches to cultivate a positive work environment. Jalal⁶⁴ elucidated a notable positive correlation between intellectual stimulation and job satisfaction. Similarly, Avolio and Bass⁶ demonstrated how principals’ transformational leadership styles directly and indirectly influenced teachers’ job satisfaction through their perceptions of their roles. Brown et al.,⁶⁵ discerned that job satisfaction plays a crucial role in mediating the relationship between leadership style and employee performance. Employees with higher levels of job satisfaction tend to exhibit better organizational performance. This accentuated how leadership styles shape employee satisfaction and commitment, as noted by Fornell⁶⁶ and Gan and Voon⁶⁷. Additionally, Luu⁶⁸ and Fornell⁶⁶ extolled the efficacy of the transformational approach in augmenting employee satisfaction, motivation, and innovation. While both transformational and transactional leadership styles contribute to organizational success, Gan⁶⁷ contended that transformational leadership excels in enhancing employee satisfaction, motivation, and innovative thinking. Bennett⁶⁹, Choi et al.⁷⁰, and Laohavichien et al.⁷¹ further advocated for integrating both leadership approaches to enhance organizational effectiveness and employee satisfaction. Whereas transformational leadership fosters innovation, motivation, and long-term vision, transactional leadership ensures operational efficiency through goal-setting, rewards, and accountability. However, solely relying on one style may not consistently fulfill all employees’ needs, as individual preferences and motivations often vary. According to Jansen et al.²⁴, transformational leadership encourages new and innovative exploration, while transactional leadership supports refining and exploiting existing innovations. In addition to exploring the relationship between leadership styles and employee performance, this study also examined whether job satisfaction acts as a mediator in this relationship, meaning that whether leadership styles influence employee performance through their impact on job satisfaction within Ethiopian sports organizations. Additionally, the study explored how education level moderates the relationship between leadership styles and job satisfaction, indicating that the effectiveness of different leadership styles may vary according to employees’ educational backgrounds. The outcomes were expected to enrich academic discussions and furnish practical insights for leaders within Ethiopian sports organizations.

Based on the information above, the research questions outlined were as follows:

1. (1)

   Which type of leadership style is predominantly adopted in Ethiopian sports organizations: transactional, transformational, or laissez-faire?

2. (2)

   To what extent do leadership styles influence employee performance in Ethiopian sports organizations?

3. (3)

   How does job satisfaction mediate the relationship between leadership styles and employee performance?

4. (4)

   To what extent does education level moderate the relationship between leadership styles and job satisfaction among employees in Ethiopian sports organizations?

Conceptual framework and hypothesis

The findings from the aforementioned literature review present potential influence relationships among the variables. Effective leadership styles are very essential for organizational success, as they play a significant role in influencing employee motivation, job satisfaction, and dedication to the organizational work environment⁷². Organizations around the world make substantial investments in leadership training to enhance employee performance and organizational resilience⁷³. Successful leadership plays a crucial role in motivating employees, enhancing their determination, and promoting the long-term sustainability of organizations⁵⁶. In contrast, ineffective leadership can negatively impact employee job performance⁷⁴. Based on the above information, the conceptual framework for the study was developed (Fig. 1).

Conceptual framework and research hypotheses.

H1

Employees within Ethiopian sports organizations predominantly exhibit transformational leadership style, in comparison to transactional and laissez-faire styles.

H2

Leadership style has a positive and significant influence on employee performance.

H3

Leadership style has a positive and significant impact on job satisfaction.

H4

Job satisfaction has a significant impact on employee performance.

H5

Job satisfaction mediates the relationship between leadership styles and employee performance.

H6.Education level moderates the connection among leadership styles and Job satisfaction.