INFLUENCE OF LEADERSHIP STYLES ON MOTIVATION AND PRODUCTIVITY OF EMPLOYEES: A STUDY ON CHINESE IT FIRMS

Abstract

In today's rapidly changing society, IT enterprises continue to develop invincible and IT enterprise managers are responsible for taking corrective initiatives to avoid future problems. In an organization, leadership style is a key factor to improve employee performance and promote organizational innovation culture, which plays a crucial role in every organization and business. The purpose of this study is to help improve employee performance through effective leadership in Chinese IT enterprises through the mediating role of organizational innovation culture. In this study, the researcher uses quantitative methods to analyze and process the data collected through the questionnaire. The study discusses in detail the effects and influence of the two leadership styles, namely transformational leadership and transactional leadership on employee performance. The results depict that transformational leadership has a significant positive influence on employee performance and organizational innovation culture, while the influence of transactional leadership is weak in comparison to that of Transformational leadership. Finally, it is suggested that in order to improve the transformational leadership, especially in the IT industry, which is constantly changing and innovating, the firm needs to be constantly stimulating innovation and change of employees. The enterprise needs to adapt to the development of the times and improve the performance of employees, thereby enhancing the core competitiveness of the enterprise.