THE EFFECTS OF TRANSFORMATIONAL AND TRANSACTIONAL LEADERSHIP STYLES AND REWARD MANAGEMENT PRACTICES ON EMPLOYEE PERFORMANCE: A STUDY OF SELECTED ETHIOPIAN PUBLIC UNIVERSITIES
DOI:
https://doi.org/10.69980/4wcjw870Keywords:
Transformational Leadership, Transactional Leadership, Reward Management Practices, Employee Performance, Ethiopian Public UniversitiesAbstract
This study examines the effects of transformational leadership style, transactional leadership style, and reward management practices on employee performance in selected Ethiopian public universities. The study is situated within the distinctive organizational and professional context of Ethiopian higher education, where academic and administrative employees work within formal bureaucratic structures as well as professional and collegial arrangements. A mixed-methods explanatory sequential design is used, with quantitative survey data analyzed using descriptive statistics, Pearson correlation, and multiple regression, followed by qualitative inquiry to explain the quantitative findings. Transformational and transactional leadership are examined using the Full Range Leadership Theory, while reward management practices are treated as an additional organizational factor. Employee performance is the dependent variable. The findings indicate that transformational leadership, transactional leadership, and reward management practices are significantly associated with employee performance in Ethiopian public universities. While transformational leadership serves as the primary driver by inspiring motivation, innovation, and shared commitment, transactional leadership plays a supporting role by offering structure, clarity, and accountability. Furthermore, implementing fair and transparent reward systems encompassing both financial and non-financial recognition is vital for sustaining long-term employee motivation and ensuring alignment with institutional goals.
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