IMPACT OF LEADERSIIIP DEVELOPMENT ON EMPLOYEE PERFORMANCE: A STUDY ON LARGE TYRE MANUFACTURING INDUSTRY IN SRI LANKA.

Abstract

The study was intcnded to examinc the impact of leadership development on employee performance in large scale tyre manufacturing industry in Sri Lanka. This study was carried out considering five factor's of leadership development such as empowerment, training and development, coaching, participation and delegation. Further it was found that the combined effect of these identified five factor's have an impact on employee performance. Though, five factors have an impact on employee performance, other leadership development factors can have an impact on employee performance such as: attitude, commitment, motivational factors, and trust in the organization, and also factors like as compensation, reward and bonuses etc. can also increase the employee performance either short term or long term. The five variables collectively as leadership development factors prove a synergic effect and increase the overall employee performance. The policy alternative should be that organizations must be cleared about the learning requirement of the employees. All the hypotheses developed in this study were accepted and were positively related to employee performance. Findings reveal that there is a significant and positive impact among leadership development and its dimensions with employee's performance. It is concluded that participation has the highest impact on employee's performance and empowerment has the least impact on employee performance.