The effects of leadership styles on organizational performance of the insurance industry in Zimbabwe: The case of FBC insurance

Abstract

The studyexplored leadership styles employed bymanagement in theFBCInsuranceCompany,with the aim of categorizing these and assessing the effect they have on the performance of the insurance firm. Utilising positivism research philosophy, the.studywas quantitative. in approach. It had all the employees of FBC Insurance in all three branches of the firm in Harare, Bulawayo and Mutare asthe population of the study. These were divided into Senior Management, Junior Management and General Employees with the senior and junior management being regarded as the leaders while the general employees were the followers. All management staff of 41 constituted the sample hence 41 questionnaires were distributed. It isthe finding of the research that FBC Insurance management rarely uses one main type of leadership style, but utilises a mix of leadership styles constituted of Autocratic, Democratic, Bureaucratic, Transformational and Transactional leadership styles. The. study. also establishedthattheperformance of an insurance firm is not onlyinfluenced. by the.style of leadership employed by the firm’s management. As such, FBC performance is not hinged on the leadership styles employed by its management, but on other varying factors. The study recommends that FBC Insurance management defines their overarching style that management follows. It also recommendsthat FBC Insurance management bear in mind that management affectsthe employees’ performanceandhencetheoverallprofitabilityofthefirm.