A dissertation submitted in partial fulfillment of the requirements for the master of business administration in corporate management of Mzumbe University
This study investigated the effects of leadership styles on performance of soft drink industry with a case study of Zanzibar Bottlers Company Limited. By using survey design a representative sample of 150 respondents out of 890 populations was obtained. The study also focused on the probability sampling through stratified random sampling in selecting key informants.
The methods of data collection involved both primary and secondary sources with respect to this study. Primary data were collected by using an interview, focus group, a structured Multifactor Leadership Questionnaire (MLQ) administered on respondents developed by Bass (1990) and author’s own developed questionnaires, whereas documentary review was used in secondary method.
The Statistical Package for Social Sciences (SPSS) software was used to analyze the data where simple frequencies and percentages and multiple regressions were specified, estimated and evaluated.
The findings revealed that there was a significant relationship between transactional leadership style and transformational leadership style on the organizational performance since the multiple regressions for both leadership styles against organizational performance showed 47.7% of positive effect.
This study concluded that; transactional leadership style had a strong significant positive effect on performance as if it bears more relevance in explaining performance in soft drink industry than transformational leadership style, and this were from 33.00% and 21.30% of the performance effect respectively.
Following these results the study therefore, recommends that ZBCL should adopt full transactional leadership style rather than to emphasize much on contingent rewards and strategize to transit to transformational leadership style as their enterprises develop, grow and mature.