Examining the Effects of Leadership Styles on Organizational Performance: A Case Study of Trade Kings Zambia

This study examined the effects of leadership styles on organizational performance at Trade Kings Zambia, a leading firm in the fast-moving consumer goods (FMCG) sector. Despite the recognized global importance of effective leadership in driving innovation and productivity, many organizations in Zambia continue to struggle with aligning leadership approaches to desired performance outcomes. A descriptive research design was adopted, integrating both quantitative and qualitative methods to provide a comprehensive understanding of leadership dynamics within the organization. The study targeted employees and managers across four key departments, production, sales and marketing, human resources, and administration. Using stratified random and purposive sampling, a total of 100 participants were selected, comprising 80 respondents who completed structured questionnaires and 20 managers who participated in key informant interviews. Quantitative data were analyzed using SPSS, applying descriptive statistics, chi-square tests, and correlation analysis, while qualitative data were thematically analyzed. The findings revealed that transformational (38.8%) and democratic (25.0%) leadership styles were predominant at Trade Kings Zambia, reflecting a participatory and motivational culture. Statistical analysis confirmed a significant relationship between leadership style and organizational performance (χ²(12) = 29.276, p = 0.004), with transformational and democratic leaders strongly correlated with high motivation, teamwork, and innovation. Transformational leadership showed strong positive correlations with motivation (r = 0.812) and retention (r = 0.801), while democratic leadership correlated positively with teamwork (r = 0.702) and retention (r = 0.721). Transactional leadership demonstrated moderate effects on productivity, whereas autocratic and laissez-faire styles exhibited negative associations with performance indicators. The qualitative findings reinforced these results, highlighting that departments led by visionary and participative managers experienced greater cohesion, morale, and output. Overall, the study concludes that Trade Kings Zambia’s success is driven by a hybrid leadership model that blends transformational and democratic traits, complemented by transactional discipline. This combination promotes innovation, collaboration, and operational efficiency while maintaining accountability. The study recommends reinforcing transformational and democratic leadership practices through leadership training, participatory decision-making, and recognition-based motivation systems to sustain competitiveness and employee engagement.