Leadership Approaches on Employees Performance in Microfinance Banks in Rwanda: A Case of Copedu Plc Microfinance

Abstract

Leadership effectiveness depends on effective management, as organizational success depends on employee performance and leader/supervisor. The study was directed to assess the influence of leadership approaches on employees’ performance in microfinance banks in Rwanda. Research on leadership theories, including Douglas McGregor's X-Y, Fiedler's Contingency Theory, Trait Theories, Behavioral theories, and Charismatic Leadership, will benefit researchers, Copedu Plc, MKU University, Rwanda government, and public in general. The research design was descriptive. While the target population was 48 employees of Copedu Plc the sample, size was the same since the population was too small. The data was collected and analyzed using the Statistical Packages for Social Sciences (SPSS) Version 23, to show mean, standard deviation and percentages. The researcher used correlation coefficient to determine the relationship between variables while the regression analysis was to determine the influence of leadership approaches on employees’ performance in microfinance banks in Rwanda. The findings showed that majority of the respondents agreed that change leadership styles can adapt employees working environment leading to decision-making as team and minority disagree and implied that change leadership styles can adapt employees working environment. Majority of the respondents agreed that involve employees in decision making improves morale and employees flexibility decision making in microfinance and minority of respondents disagree with statement. This implied that involving employees in decision-making improves morale. Regression analysis on transformational leadership, p-value was .699 which was greater than the 0.05 set as standard significance levels. This means that null hypothesis stated that there is no significant influence of transformational leadership on employees’ performance of Copedu Plc, was accepted and goes by the null hypothesis, which states that the independent variable has doesn’t have influence employees’ performance in terms punctuality and good time management, creativity and innovation and ability to perform efficiently. Researcher recommends management delegating empowers to employees for trust, professional development, and situational leadership. Keywords: Leadership Approaches, Employees Performance, Microfinance Banks, Copedu Plc Microfinance, Rwanda.