CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

This chapter present various literature study approaches. It comprises of four sections, which include
definition of the key terms, theoretical framework, empirical literature review, and conceptual
framework of the study.

2.1 Definition of Key Terms

2.1 .1 Laissez-faire leadership

This is a leadership style characterized by a hands-off approach, where leaders provide minimal
guidance and allow team members to make decisions and manage their work independently. This style
promotes autonomy and creativity, empowering employees to take initiative and ownership of their
tasks. However, it may also lead to a lack of direction or insufficient support for those who require more
structure or guidance. It is most effective in environments with highly skilled and motivated individuals
who thrive on independence (Northouse,2018)

2.1.2 Employee Performance

This term refers to all aspects that relates and affect employees work either directly or indirectly in an
organization or a firm or a company. Satisfied and happy employees are considered as higher
performers and management of organization or firm find it easy to motivate them in attaining firm goals
(Khan et al., 2017).

2.1.3 . Leader

Leader is one or more people who select, equip, train and influence one or more followers who have
diverse gifts, abilities and skills and focuses the followers to the organisation mission and objectives
causing the followers to willingly and enthusiastically, expend spiritual, emotional and physical energy
in a concerted effort to achieve the organisation mission and objectives so leader is a person that lead
control and direct others (Wilson, 2023).

2.2 Theoretical literature review

2.2.1 Behavioral Leadership Theory

This was established by Author by Judge, T. A., & Piccolo, R. F. (2004) the Assumption: The behavioral
leadership theory posits that leaders’ behavior significantly influences followers’ performance, and that
laissez-faire leadership is often perceived negatively by employees also the Main Idea In their analysis of
the relationship between leadership styles and employee outcomes, Judge and Piccolo (2004) show that
laissez-faire leadership can contribute to declining motivation and performance among employees. They
explain that when leaders adopt a laissez-faire approach, employees may lack clarity and direction,
leading to decreased engagement and lower overall performance metrics. This is particularly evident in
complex or high-stakes work environments where guidance and decision-making are crucial for success.

2.2.2 The Detrimental Impact of Laissez-faire Leadership on Employee and Performance

Research has consistently demonstrated a negative correlation between laissez-faire leadership and
employee performance. This style, characterized by a lack of involvement, guidance, and feedback from
the leader, often leads to feelings of neglect and ambiguity among employees. Without clear direction
or accountability, employees may become demotivated, uncertain about their roles and responsibilities,
and less likely to exert discretionary effort. Furthermore, the absence of performance feedback hinders
employee growth and development, potentially leading to stagnation and decreased productivity.
Studies have shown that organizations with prevalent laissez-faire leadership styles experience higher
levels of employee dissatisfaction and turnover, ultimately impacting overall organizational
performance.(Smith,2018)

2.2.3 Contextual Factors Moderating the Influence of Laissez-faire Leadership

While generally viewed negatively, some research suggests that the impact of laissez-faire leadership on
employee performance can be moderated by contextual factors. In highly autonomous and self-directed
work environments, where employees are experienced, skilled, and intrinsically motivated, a certain
degree of leader non-intervention might not be entirely detrimental. In such cases, laissez-faire
leadership could be interpreted as empowering and trusting, allowing employees the freedom to
innovate and take ownership of their work. However, even in these contexts, the complete absence of
support and guidance can still be problematic, particularly when challenges arise or when team
coordination is required. Therefore, the effectiveness of laissez-faire leadership, if any, is highly
contingent on the nature of the work, the characteristics of the employees, and the overall
organizational culture.

2.3 Empirical Review of Relevant Studies

Globally, Judge, T. A., & Piccolo, R. F. (2004) - This study found that laissez-faire leadership is often
associated with negative employee outcomes, including performance. The researchers emphasized that
lack of direction and support from leaders can hinder employee motivation and productivity, another
Skogstad, A., Einarsen, S., Torsheim, T., Aasland, M. S., & Hetland, H. (2007) - Their research indicated
that laissez-faire leadership contributes to increased conflict among team members and decreased
overall team performance. Employees felt unsupported, which linked to lower job satisfaction and
performance levels. Luthans, F. (2006) - In a broader leadership style analysis, Luthans indicated that
laissez-faire leadership would lead to ambiguous expectations and poor performance outcomes,
highlighting its detrimental effects on motivation and work efficiency.

African, Agyemang, C. (2017) - This research focused on managerial styles in Ghanaian organizations and
reported that laissez-faire leadership often correlates with low employee engagement and poor
performance. The study concluded that leaders should be more active to improve job performance
among [Link], B. (2019) - The study examined the effects of different leadership styles on
employee performance in the South African context. It pointed out that laissez-faire leadership often
leads to unclear roles and responsibilities, negatively impacting employees' performance [Link],
O. S. (2020) - Conducting research in Nigeria, this study found that laissez-faire leadership was
associated with decreased motivation and productivity in the workplace. Employees expressed that the
absence of guidance from leaders led to a lack of direction.

Tanzanian, Geemba, J. O., & Msemwa, M. (2018) - In their study on leadership styles in Tanzania, they
found that laissez-faire leadership negatively affected employee performance, particularly in Ugandan
work culture. Employees desired more involvement and feedback from their leaders, Mhando, A. Z., &
Mushi, E. (2021) - This research explored leadership styles in Tanzanian firms and demonstrated that
laissez-faire leadership was linked to lower employee productivity, as workers felt unmotivated and
unsupported in their [Link] Institute of Management (2021) - An empirical review conducted by
the institute observed that laissez-faire leadership in Tanzanian public service resulted in inefficiencies
and low-performance outcomes, suggesting a need for active managerial involvement.

2.6 Conceptual Framework

The conceptual framework highlighting the influence of minimal supervision emphasizes the importance
of fostering autonomy, which encourages employees to take ownership and responsibility for their
tasks, ultimately enhancing their engagement and performance. By providing creative freedom,
employees can express their ideas, leading to increased innovation and adaptability in the workplace.
Furthermore, involving employees in decision-making processes enhances their commitment and
harnesses diverse perspectives, thereby cultivating critical thinking and problem-solving skills. Together,
these elements create a dynamic work environment that promotes productivity, creativity, and a strong
sense of responsibility among employees, leading to overall organizational success

NDEPENDENT VARIABLE. DEPENDENT VARIABLE

Influence Of Minimal Supervision

-Foster a sense of autonomy

-Encourage responsibility and ownership of task

- Improves innovations

influence of creative freedom

-Allow Employee expressing their creativity. Employee Performance

-Increase Engagement

- Cultivate an adaptive work

- Enhanced commitment

- harness diverse Perspective

- Build Critical thinking and problem solving skills

source Of Field Data (2025)

Northouse, P. G. (2018). Leadership: Theory and Practice (8th ed.). Thousand Oaks, CA: Sage
Publications.

Bass, B. M. (1985). Leadership and Performance Beyond Expectations. Free Press.

Judge, T. A., & Piccolo, R. F. (2004). Transformational and Transactional Leadership: A Meta-Analytic Test
of Their Relative Validity. Journal of Applied Psychology, 89(5), 755-768.

Bass, B. M. (1985). Leadership and Performance Beyond Expectations. Free Press.

Brown, L., & Davis, M. (2020). When Less is More (Sometimes): Exploring the Nuances of Laissez-faire
Leadership in Autonomous Work Settings. Academy of Management Journal, 63(2), 310-328.