The Impact of Leadership Style on Organizational Performance

The Impact of Leadership Style on Organizational Performance

Abstract

Leadership is one of the most important factors of an organization's success or failure. A leader's leadership style is the way he or she directs and motivates others to accomplish corporate objectives. The purpose of this research is to investigate the effect of leadership styles on organisational performance. Transformational, transactional, authoritarian, charismatic, bureaucratic, and democratic leadership styles were highlighted. 

This study has provided deep insights into leadership styles; democratic, transformational, bureaucratic, and autocratic leaderships have a positive impact on organisational performance, whereas charismatic and transactional leaderships have a negative impact on organisational performance because they do not provide employees with opportunities and freedom. Primary and secondary research were performed in this study. The main study was conducted utilising a quantitative methodology and a survey instrument based on a survey questionnaire.

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Introduction

Leadership in an  is critical in terms of creating a vision, mission, determining and establishing objectives, designing strategies, policies, and methods to achieve organisational objectives effectively and efficiently, as well as directing and coordinating efforts and organisational activities (Xu & Wang, 2008).

High-quality leadership is required to accomplish the goal and vision while also dealing with changes in the external environment (Harris, et al., 2007). Many businesses are now dealing with issues such as unethical activities, excessive worker turnover, poor financial performance, and so on. This may be attributed to a lack of good leadership.

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Conclusion

The effect of leadership styles on organisational performance was the subject of this research. Only six kinds of leadership styles were studied: transformational, transactional, democratic, charismatic, bureaucratic, and autocratic. Transformational, autocratic, and democratic leadership styles were discovered to have a positive influence on organisational performance, whereas transactional, charismatic, and bureaucratic leadership styles were discovered to have a negative influence on organisational performance in the organizations studied. According to the findings of this research, organisational performance is linked to leadership style, and both have a good and negative effect on performance.

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