Impact of Leadership Styles on Organizational Performance

Research Project
What extent can leadership styles impact on
organisational performance

Chapter 1: INTRODUCTION..........................................................................................................3
Aim of the study.....................................................................................................................4
The aim of the current research work is to investigate and analyse the influence that
leadership styles could have on organisational performance.................................................4
Objectives of the study...........................................................................................................4
Background of the Study.................................................................................................................4
Research questions.................................................................................................................5
Rationale..........................................................................................................................................5
Literature Review.............................................................................................................................6
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................11
CHAPTER 4: DATA ANALYSIS AND FINDINGS...................................................................13
CHAPTER 5: CONCLUSION AND RECCOMMENDATIONS................................................21
REFERENCES..............................................................................................................................23

Chapter 1: INTRODUCTION
In any organization leaders helps to communicate the vision, mission and objectives of company
to employees. They provide direction and motivate every individual to work towards
accomplishment of goals of organization (Sousa and Rocha, 2019). Leadership plays important
role for any organization irrespective for their size and scope, as with help leaders company can
have clear communication with employees and can provide them a clear as well as compelling
direction. It is essential for an organization to understand the importance of leadership provide
training then coaching to leaders in order to implement appropriate form of leadership style
according to the situation and behaviour of employees (Peker, Inandi and Gilic, 2018).
Leadership styles is mainly a leader’s methods which help them to motivate people implement
plans and provide direction. With efficient leaders characteristics a leader can implement
leadership style as per the situation and can further overcome complex situations in define an
effective manner. With help of taking appropriate form of leadership style leaders can have a
tendency to manage employees work in an effective manner and further provide them guidance
and motivation to fulfil overall objectives of organization. Efficiently proper and efficient
knowledge of leadership styles benefit leaders to utilise their skills experience and capabilities
effectively and provide organization benefit in terms of long term growth and lower staff
turnover. With the help of effective promote leadership style organization can manage overall
goals and objectives efficiently and confirm to provide guidance to employees efficiently. It is
important leader to understand behaviour of employees and have knowledge of all the form of
leadership style in order to utilise accordingly. This research report analyse the influence that
leadership style can have on forms of organization. In addition to this discussion has been
conducted on the impact of transformation, transactional, autocratic leadership style on the
performance of organization. Research also identifies the impact of leadership styles on overall
performance of company with the help of literature review analysis.

Aim of the study
The aim of the current research work is to investigate and analyse the influence that leadership
styles could have on organisational performance.
Objectives of the study
 To study the association amid transformational leadership style and performance of the
company
 To examine the association amid transactional leadership style and performance of the
company
 To scrutinize the association amid laissez fair leadership style and performance of the
company
 To analyse the relationship among autocratic leadership style and performance of the
company
 To analyse the impact of these leadership styles on the performance of the organization
Background of the Study
Leadership styles plays important role for every business sector around the globe. With the
help of taking advantage of different type of leadership styles such as
transformational,transactional,laissez fair and autocratic leadership Style Company can
significantly enhance their performance. However it is essential to implement the appropriate
form of leadership style according to the company culture trend and situation. It is essential for
leaders within organization to analyse behaviour of employees company vision, mission and
situation in order to implement the use of appropriate form of leadership style. Present research
study is being duly designed to evaluate and analyse the influence of leadership style on
performance of company. This research outlines the manner in which different type of leadership
styles can help organization to maximise their performance in a well defined and effective
manner.
Research questions
The current research work is going to answer some of the important research questions and these
are:
 What is the impact of autocratic leadership style influence organizational performance?
 What is the impact of laissez fair leadership style influence organizational performance?

 To what extent does not the transactional leadership style influence organizational
performance?
 To what extent does not the transformational leadership style influence organizational
performance?
 What is the impact of leadership styles on a company’s performance?
Rationale
It is essential for all organization irrespective of its size and scope to have strong leadership
practices within organization. Leadership style impact each and every business sector around the
globe and negligence of selecting appropriate form of leadership style can cost a company in
terms of decreasing performance and productivity of both employees and organization. As the
present study is aimed to investigate and analyse the influence of leadership style up on
organization performance it is essential for companies to implement appropriate and effective
form of leadership style according to the situation. This will help leaders to bring best out of
employees while enhancing overall productivity of company. This research is being undertaken
with the help of systematic literature review that significantly helps in analysing viewpoint of
various authors, generals and online article in order to understand the influence of leadership
style upon performance and productivity of organization. Furthermore it has been underlined that
present research is significantly helpful for all companies in every industry and will help them to
conduct their business operations and enhance their performance while managing employees.
Furthermore it has been underlined that this research duly explains the impact of leadership style
on various business sectors and do not directly conducted on any particular industry. Along with
this present research is effective for leaders within organization as it allow them to understand
the importance of leadership style and practices according to the situation. Present research is
also conducted to duly evaluate impact of transformational,transactional,laissez fair and
autocratic leadership style upon the performance of organization. Present research is also
practical for future researchers as well as student as it provide detailed information associated to
the impact of leadership style on business organization performance. This research enhances
researcher ability and enhances their skills and knowledge to conduct future research efficiently.
Literature Review
Impact of autocratic leadership style influence organizational performance

As per the view point of Solihah, Budiawan and Nugraha, 2021 Autocratic leadership is also
defined as authority leadership style. In this form of leadership leaders have control over all the
decision making and in this there is a little input from group members. In simple terms leaders
with authoritative leadership style make choices based on their judgement and ideas and rarely
accept advice from other team members. With the help of this form of leadership style
organization can have advantage in terms of having fast crisis management benefits (Alrowwad
and Abualoush, 2020). With the help of having autocratic leaders who is well equipped to deal
with challenging or pricing situation organization can significantly manage complex issues and
can handle problems in an effective manner as comparatively to other form of leadership style.
With the help of this style leaders can undertake faster decision and can fulfil organizational
goals and objectives in time effective manner. This leadership style also helps in removing
pressure on employees. Erdem, 2021 states that with the use of personal experience autocratic
leaders provide step by step instruction to team members which helps employees to have a clear
direction and a path to fulfil overall goals and objectives in a best manner. It helps in improving
overall revenue of employees. Furthermore it has been underlined that with the help of having
this form of leadership style organization can fulfil short term results in an effective manner.
While it has been identified that sometime autocratic leadership create lack of trust as in this
form of leadership style decision making another important aspects are depends upon leader it
also increases burden for the leader and affect employees innovation creativity (Peker, Inand and
Gilic, 2018). Thus from the above mentioned analysis it has been identified according to some
authors autocratic leadership style have positive influence on organization performance as it
allow leaders to overcome complex situation with their experience, talent and skill. While to
some authors states that this form of leadership styles affect innovativeness and creativity of
employees and also lead towards lack of trust among them.
Impact of laissez fair leadership style influence organizational performance
As per the viewpoint of Donkor and Zhou, 2020 laissez fair leadership style is a fairly self
explanatory form of leadership in which leaders have an attitude of trust and reliance on
employees. In this form of leadership style leaders trust abilities and have confidence on
employees. With the help of this form of leadership style organization can measure create
retention from their workforce as employees who trusted feel confident to perform the roles and
responsibilities and also wants to stay within organization. This form of leadership style makes