The Impact of Leadership Style on Employee Stress and Employee Performance in the Saudi Market

Leadership quality is a key factor of organizational performance and the health of employees. Stress among employees has risen as a critical issue in the Saudi market, where organizations are experiencing grand changes induced by Vision 2030. The present study explores the way Saudi organizations deploy different styles of leadership to reduce stress and maximize employee performance. A quantitative approach was applied to investigate employee productivity and stress levels under transformational, autocratic, and servant leadership styles. The findings indicate that transformational and servant leadership styles are significantly associated with lower employee stress levels, whereas autocratic leadership increases stress. Moreover, employee stress is shown to mediate the relationship between leadership style and performance. These results provide practical recommendations for Saudi business leaders to enhance workplace well-being and organizational effectiveness.