How Leadership Affects Organizational Performance in Australia

Running head: RESEARCH IN BUSINESS
Research in Business
Name of the Student
Name of the University
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1RESEARCH IN BUSINESS
How leadership affects organizational performance in Australia?
Problem statement
The Australian economy has enjoyed a significant amount of economic growth due to a
huge supply of resources. However, in recent years, the Australian economy is found to be
slowing down. Some of the chief reasons encountered behind this drastic change are weakening
of the employment growth and high attrition rate of employees from major organizations. As a
result of these factors, a significant drop in the productivity of the organization and confidence of
consumers has dropped. According to the Australian economists, this period of Australian
organizations of slow economic growth is going to last longer than expected (Lawn, 2013).
Along with that, a huge amount of new challenges for the managers and leaders of the
organizations as a result of these downfalls in Australian economy has been predicted. The
question that whether the huge attrition is related to the inefficiency of leadership in the
organizations has arisen. For large organizations, the influence of leadership is considered to be
greatly significant (Prior et al., 2013). However, it has been found that the effect of leadership is
not studied in terms of performance variance in the organization. When it comes to small-scale
industries in Australia, the scenario found is almost the same as the large organizations.
Excessive employee attrition has resulted in depletion in the productivity of the small scale
industries in Australia (Morris et al., 2014). Therefore, it has become a crucial necessity to find
out the root of the issue to enhance the productivity of Australian organizations.
Aims and objectives
The aim of this research paper is to assess and evaluate the impact of leadership in
developing the performance of the employees. The objectives of the research are as follows:

2RESEARCH IN BUSINESS
1) Determine the impact of leadership on the motivation of the employees
2) Determine the impact of leadership on employee retention
3) Examine the importance of transformational and transactional leadership styles to
enhance the performance of the employees.
4) Developing effective strategies for Australian Organizations to incorporate effective
leadership styles to enhance overall organizational performances.
A brief methodology
In order to accurately assess the variables associated with the leadership of the managers
and chief executives of the Australian Companies that is imposing an effect on the overall
performance of the organization, the mixed methodology has been chosen to conduct the
research. The mixed methodology can be defined as the research method that involves both
qualitative and quantitative analysis for collecting, analyzing and integrating the data (Creswell,
2014). While quantitative analysis of data involves close ended interviews and surveys,
qualitative data analysis involves reviewing of literature written by other researchers that are
associated with the research issue along with conducting an open-ended interview with the
chosen samples.
Sampling
Sampling can be defined as the method of selecting units that include organizations or
people from the population associated with the research issue so that far result can be obtained.
Sampling is of two types, namely, probability and non-probability sampling (Cooper, Schindler
& Sun, 2016). To conduct this research, Probability sampling will be done. On the basis of sales,
profit margins and overall yearly revenue, 5 organizations have been selected in order to conduct