The Effect of Effective Leadership on Employee Performance at Africa Inland Church, Tanzania, Diocese of Mwanza

Abstract

This paper reviews effective leadership as a critical determinant of organisational success in any institution, considering that it not only influences spiritual guidance but also employee performance and institutional sustainability. The study examines the effect of effective leadership, measured through leadership styles, leadership training, and leadership conflict, on employee performance in faith-based organisations. To achieve this objective, the authors carried out a survey study at the AICT Diocese of Mwanza. A mixed-methods approach was used, combining survey data from 246 employees and qualitative interviews with church leaders in 2023. The findings revealed that leadership styles, particularly democratic leadership, had the strongest positive influence on employee performance, with leaders who inspire, motivate, and provide individualized support significantly enhancing productivity. Leadership training also contributed positively by improving employee skills, motivation, and decision-making abilities, although its effect was moderate. However, the leadership style, leadership training, and leadership conflicts together explained 30% of the variation in employee performance, indicating that other external factors also play a role. Based on the study findings, the authors conclude that leadership styles play the most significant role in influencing employee performance, with leadership training and conflict management also contributing notably as well. Different leadership styles have fluctuating impacts, while the effectiveness of a leader in one situation may not translate to another. Transformational leadership, focused on inspiration and motivation, is frequently linked with positive outcomes, i.e., increased job satisfaction and performance. On the other hand, leadership training equips leaders with the skills to improve communication, problem-solving, and conflict resolution, which in turn catalyze employee performance.