Impact of project managers’ leadership style on employee performance in a construction company in Cape Town

Abstract

There is currently a lack of research detailing how project managers’ leadership styles impact the performance of employees of construction companies in Cape Town. Our aim, through this thesis, was as follows: to investigate whether or not project managers’ leadership styles have an impact on employee performance in Cape Town’s construction industry; to ascertain the extent of the impact (and better understand the correlation between different leadership styles and performance outcomes); to develop a management framework to improve leadership quality, and, in doing so, provide tools to improve employee performance. To achieve these research objectives, the researcher developed a structured questionnaire to gather data on the impact of construction project managers’ leadership styles on employee performance. A total of 456 questionnaires were distributed at construction sites across Cape Town. Of these, 377 were duly completed, resulting in a respondent rate of 82.68%. Responses were then analysed by the researcher using an ANOVA test (with the descriptive and regressive methods), as well as a post-hoc test (using the Bonferroni Method), and correlation analysis. The results revealed there to be a statistically significant positive relationship between Cape Town project managers’ leadership styles and the performance of subordinate employees on construction job sites. Using this information, the researcher developed a conceptual framework with leadership quality development tools and recommendations to assist project managers and organisations in improving employee performance and leadership. It highlights the importance of using leadership quality development tools such as training and development, empowerment, coaching, participation, and delegation to improve employee performance. It also details specific and strategic means to implement these recommendations. We believe this research provides valuable insight into the impact of project managers’ leadership styles on employee performance in the construction industry in Cape Town. It provides details on how construction project managers’ leadership is perceived, as well as its impact on employee satisfaction and performance. The research will contribute to project managers’ leadership development to help improve previous shortcomings and foster a mutually beneficial work environment where all can thrive.