Abstract
In all sectors, leadership is crucial for organisations, and the leadership style that is demonstrated correlates with the interaction and performance of engaged employees. Leaders who show concern for the well-being of individuals, express interest in what individuals have to say and keep in mind the results that employees must achieve in their work, contribute to a positive work environment. The study aims to investigate the relationship between encouraging leadership, employee interaction, and employee performance.
The researcher adopted a post-positivist stance, employing a quantitative, cross-sectional survey. Primary data was collected using a web-based, self-administered, structured questionnaire survey. A final sample of N = 104 was obtained. Analysing the data, descriptive statistics, reliability tests (Cronbach's alpha), and exploratory factor analysis were used. To ascertain the strength of the relationship between Encouraging Leadership (EL), Employee Interaction, and Employee Performance, Pearson's Correlation was used.
Findings support that adaptive work performance is essential in today's dynamic work environment. However, the correlation between adaptive performance and employee interaction is relatively weak (r = 0.303), indicating only a modest association between these constructs. Adaptive performance tends to rely more on technical and soft skills rather than verbal interaction skills, which may explain this weaker relationship. Nevertheless, employee interaction still exhibits a statistically significant association with adaptive performance (p < 0.002), suggesting that while the correlation is modest, it is unlikely to be due to chance.
Based on Exploratory Factor Analysis (EFA), Encouraging Leadership revealed two factors (Inclusive Leadership and Directive and Task-Oriented Leadership). Employee Interaction remained one factor. Employee Performance revealed three factors (Work Performance 1: Adaptive, Work Performance 2: Planning, and Work Performance 3: Initiative) as illustrated in the new conceptual model.
This study makes a key methodological contribution by highlighting the need for Confirmatory Factor Analysis (CFA) to validate the factor structure identified through
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Pearson correlations. While initial correlations suggest relationships between constructs, CFA will ensure the statistical soundness and reliability of these relationships. Additionally, variations in the factor structure influenced by the sample suggest context-specific factors that may require further investigation. These findings did not only enhance the methodological rigor of this study but also carry theoretical implications, as they point to potential refinements in the original theoretical model based on contextual differences.