Examining the relationship between leadership styles and employee motivations among Generation Z employees in the private sector

Abstract

As Generation Z enters the workforce, organisations are challenged to reassess how leadership practices and workplace environments influence employee motivation. This dissertation examines the relationship between leadership styles; transformational, transactional and laissez-faire, and work motivation among Generation Z employees within the private sector. Framed by the Self-Determination Theory, which identifies autonomy, competence, and relatedness as core motivational needs, the study explores both the leadership approaches and workplace factors that this generational cohort values most. A quantitative research design was employed, using a structured questionnaire administered to 111 participants ages 18 to 27. Data analysis included descriptive statistics, Friedman and Wilcoxon tests, and Spearman’s correlations. The results revealed that transformational leadership demonstrated the strongest positive association with motivation, affirming its alignment with Generation Z’s preferences for purpose driven, empathetic, and development-oriented leadership. Transactional leadership showed a moderate association, while laissez-faire leadership was least effective. Contrary to initial hypotheses, autonomy and work-life balance were not the highest-rated motivators. Instead, flexibility and support for personal commitments emerged as the most valued workplace factors. These findings suggest a broader conceptualisation of autonomy among younger employees, where flexibility and emotional support are perceived as more impactful than independent decision-making alone. The study makes both theoretical and practical contributions. It extends Self-Determination Theory by illustrating how its constructs manifest differently in younger generational contexts. The research also offers evidence-based recommendations for organisational leaders and policymakers, including the promotion of transformational leadership training, flexible work arrangements, and well-being initiatives. Ultimately, the findings underscore the need for adaptive, values-driven leadership to engage and retain the emerging workforce.