IMPACT OF LEADERSHIP STYLE ON ORGANIZATIONAL PERFORMANCE

The performance of organizations, particularly in the banking sector, is heavily influenced by leadership effectiveness. In Nigeria, many banks have faced challenges such as high employee turnover, unethical banking practices, and financial distress, which may be linked to ineffective leadership styles. This study examines the impact of Transformational, Transactional, and Laissez-Faire leadership styles on organizational performance in selected banks in Osun State, Nigeria. A descriptive research design was employed, and 98 respondents from five banks participated in the study. Data were collected using structured questionnaires and analyzed with SPSS, with hypotheses tested through linear regression analysis. Findings revealed that Transformational and Transactional leadership styles significantly enhance organizational performance, with transformational leadership driving employee motivation and innovation, while transactional leadership ensures structure and accountability. Laissez-faire leadership also showed a relationship with organizational performance, but excessive autonomy led to reduced oversight and lower efficiency. The study recommends that banks adopt a balanced leadership approach, integrating transformational leadership to inspire employees, applying transactional leadership to maintain operational efficiency, and ensuring that laissez-faire leadership does not undermine performance. These strategies will improve employee engagement, productivity, and overall bank performance. This research contributes to the understanding of leadership dynamics in the Nigerian banking sector and offers valuable insights for managers, policymakers, and future researchers. Keywords: Leadership, Leadership Styles, Transformational Leadership, Transactional Leadership, Laissez-Faire Leadership, Organizational Performance.