Comparing Leadership Styles in Public and Private Sector Organizations in the UK

The provided content discusses various aspects of leadership, including different types of leadership styles such as autocratic, democratic, laissez-faire, transactional, and transformational. It also touches on the concepts of OCEAN personality traits and the McKinsey 7s model. Additionally, it explores the differences between public and private organizations in terms of their leadership approaches.

Organizational behavior
Masters Dissertation
RKC, March 2018
Student ID number: 1550809
Module name: Intro, Chapters 1-5 - DRAFT
Assignment title: Masters Dissertation
Assignment deadline:
Effective number of words used:

Contents
Chapter 1: Introduction:..............................................................................................................................4
Background of the Organization:.............................................................................................................5
Background of Research Topic:...............................................................................................................6
Thesis Statement:....................................................................................................................................8
Research Aims and Objectives:....................................................................................................................8
Research Objectives:...............................................................................................................................8
Research Questions:................................................................................................................................8
Scope of Research:..................................................................................................................................9
Limitations of Research:..........................................................................................................................9
Chapter 2: Literature Review:....................................................................................................................10
Styles of leadership:..............................................................................................................................10
The Public vs. Private sector leader:......................................................................................................11
Theories on leadership:.........................................................................................................................13
Summary:..............................................................................................................................................18
Appendix:..............................................................................................................................................19
O.C.E.A.N Big Five Personality Theory:..............................................................................................19
McKinsey’s 7-S Model:.......................................................................................................................21
Chapter 3: Methodology:..........................................................................................................................24
Data Collection Methods:......................................................................................................................24
External and Internal Factors affecting the organization:..................................................................24
Leadership Theories:.........................................................................................................................24
Personality traits of Managers:..........................................................................................................24
Data collection process:.....................................................................................................................24
Data Analysis Methods:.........................................................................................................................25
Secondary Research Analysis:............................................................................................................25
Case Analysis:....................................................................................................................................25
Chapter 4: Results:....................................................................................................................................27
Organizational Situation Analysis:.........................................................................................................27
SWOT Analysis:..................................................................................................................................27
PESTEL Analysis:.................................................................................................................................28
Leadership Traits Analysis:.....................................................................................................................30

Transactional Leadership Theory:......................................................................................................30
Transformational Leadership Theory:................................................................................................30
Behavioural Leadership Theory:........................................................................................................30
Contingency Leadership Theory:.......................................................................................................31
Trait Leadership Theory:....................................................................................................................31
Great Man Leadership Theory:..........................................................................................................31
Strategic Decision-making Analysis:......................................................................................................32
Key Findings:..........................................................................................................................................32
Chapter 5: Conclusions:.............................................................................................................................34
Bibliography:.............................................................................................................................................37
Chapter 1: Introduction:..............................................................................................................................3
Background of the Organization:.............................................................................................................5
Background of Research Topic:...............................................................................................................5
Thesis Statement:....................................................................................................................................7
Research Aims and Objectives:....................................................................................................................7
Research Objectives:...............................................................................................................................7
Research Questions:................................................................................................................................8
Scope of Research:..................................................................................................................................8
Limitations of Research:..........................................................................................................................9
Chapter 2: Literature Review:....................................................................................................................10
Styles of leadership:..............................................................................................................................10
The Public vs. Private sector leader:......................................................................................................11
Theories on leadership:.........................................................................................................................14
Summary:..............................................................................................................................................18
Chapter 3: Methodology:..........................................................................................................................19
Data Collection Methods:......................................................................................................................19
External and Internal Factors affecting the organization:..................................................................19
Leadership Theories:.........................................................................................................................19
Personality traits of Managers:..........................................................................................................19
Data collection process:.....................................................................................................................19
Data Analysis Methods:.........................................................................................................................20
Secondary Research Analysis:............................................................................................................20

Case Analysis:....................................................................................................................................20
Chapter 4: Results:....................................................................................................................................21
Organizational Situation Analysis:.........................................................................................................21
SWOT Analysis:..................................................................................................................................21
PESTEL Analysis:.................................................................................................................................24
Leadership Traits Analysis:.....................................................................................................................25
Transactional Leadership Theory:......................................................................................................25
Transformational Leadership Theory:................................................................................................26
Behavioural Leadership Theory:........................................................................................................26
Contingency Leadership Theory:.......................................................................................................26
Trait Leadership Theory:....................................................................................................................27
Great Man Leadership Theory:..........................................................................................................27
O.C.E.A.N Big Five Personality Theory:..............................................................................................28
Strategic Decision-making Analysis:......................................................................................................29
McKinsey’s 7-S Model:.......................................................................................................................30
Chapter 5: Conclusions:.............................................................................................................................33
Bibliography:.............................................................................................................................................35

Chapter 1: Introduction:
The researcher studies the impact of leadership and strategic decision-making on the growth and
sustainability of an organization. The success of leadership also depends on the context and the scenario
in which the leader is required to offer his leadership. For example, a manager who has worked
previously in a public organization and has been an extremely successful leader in the organization
might not be able to offer the same quality of leadership in a private organizational setup and culture.
This is implied as the work culture of a public-sector organization is entirely distinct from that of a
private firm. This occurs primarily due to the separate business motives of public and private sector
firms. In case of the public-sector organizations the focus of the management is not on the making of
profits. It is rather based on serving the people of the country with a variety of products and services
that will help them in different aspects of life. The idea is to ensure that the services and products those
are offered to the customers are ethical, fair and just because the people of the country are paying taxes
for various products and services that they are purchasing from different private and public-sector
organizations..
The citizens of the country expect that they receive true and fair products and services from the public
organizations in return for the taxes they are paying to the government. Therefore, the management
personnel have the focus to offer the services to the people as per their desired expectations. The public
organizations do not focus much on the profitability and therefore, the minds of the managers are not
too much inclined towards profitability and extreme competition. In case of the private sector firms the
situation is entirely different. The primary objective of a private sector firm is to make profits and ensure
sustainability. The customer service is definitely important to the private sector establishments however
it is not the primary focus of the firm as the objective that gains precedence in case of private sector
organizations is the profit-making. Therefore, it is extremely essential for an organization to understand
the impact of the leadership style on offering prudent managerial decision-making. It is always advisable
for an organization to recruit leaders from the same background for ensuring that the leader is able to
understand the nature of the business and the organizational objectives effectively.
The research questions were developed to address leadership. They are divided into the Primary and the
Secondary Research Questions.

The research focuses on leadership, decision-making, and their impacts on sustainability of an
organization. The research attempts to discover the various traits and characteristics of leadership in
terms of the ways it differs between the managers in the public and private sectors. The researcher also
attempted to determine the impacts of leadership traits on managerial decision-making along with
finding out the impact of managerial leadership on the sustainability of an organization. For this
particular research study, the case of a medical device group has been investigated. The company
manufactures and sells various emergency drugs and medical devices in around the world. The
organization markets its products across all continents with focus on the US, China and a few other
Asian countries. Three years back, the company has entered into a merger with one of its suppliers and
after that some issues have emerged related to the quality of some of the medical products those
needed to be recalled. There was some lack of managerial leadership and effective decision-making that
was observed following the appointment of a new Chief Executive Officer (CEO). A CEO that was
appointed as the head of the newly formed company.
A SWOT Analysis has been conducted by the management in order to identify the major strengths,
weaknesses, opportunities and threats to the organization after the appointment of the new CEO. It
facilitated the findings of the main research. This decision to appoint a new CEO was later on speculated
to be non-effective and counter-productive for the organization. The current CEO belonged to a
governmental organization that was a part of the non-profit seeking sector of the industry. The
individual lacked the managerial leadership and decision-making skills required in a much competitive
private sector. Moreover, the CEO was not a person from the medical background and was not able to
provide an impactful and goal-oriented leadership in this newly formed organization. The leadership
skills nurtured and developed in the public-sector are quite different than those needed to direct a
private sector organization which has more competitive, dynamic, and different work culture. Prior
researches have revealed that qualities and traits of leaders tend to differ across the public and private
sectors because of several factors like difference in business objectives, work culture, employee
relationships and others (Andersen, Public versus Private Managers: How Public and Private Managers
Differ in Leadership Behavior, 2010) This makes it challenging and difficult for a person coming from the
public-sector to provide effective leadership in a private sector organization. This is the same scenario
with the organization referred to in this research.
Background of the Organization:
The organization referred to in this research study is an enterprise that deals with the production and
distribution of various medical devices and emergency medicines across the world such as the US, China,
and many other Asian nations. The medical devices industry is booming across the globe with the
unprecedented growth and advancement in technology in this sector and the market opportunities are
increasing every year as the overall market awareness about healthcare products have increased over
time (Gilani, 2014). The organization has recently undergone a change where it has entered into a
merger and acquisition with one of its American suppliers. This has called for a change in the
management strategies and organizational structure. The new CEO of the organization happened to be
one of the existing shareholders of the company who has been appointed as the CEO based on his warm
relationship with the current management and good reputation. He belonged to a public-sector

organization and lacked the experience and expertise to lead in a private sector enterprise. Moreover,
he was not from the medical background and therefore, there were some emerging issues related to his
style of leadership and organizational decision-making. There have been several issues related to the
quality of some of the products sold by the company of late.
This has been attributed to the lack of proper management and leadership from the top-level
management under the new CEO that has been responsible for lack of adequate employee motivation
and that culminated into some unethical actions taken by some management personnel like purchasing
of low quality of raw materials to enhance profitability. Therefore, the research has been undertaken to
determine the areas where the leadership and management under the new CEO has gone erroneous
and a number of bottlenecks has emerged. Now, the management is thinking of enhancing the revenue
through growth in new market segments by reducing overall cost of sales and raising profitability. The
management also wishes to optimize the marketing and business development departments by creating
a single marketing department serving across all the different territories of the business. The
management has plans to enhance the investment in research and development such that new
technologically upgraded products might be produced and sold in order to achieve growth and
sustainability in the dynamic market environment. The management has also planned for reducing the
production cost and starting up a new production facility in the US and open up new sales branches in
the Indo-China markets
Background of Research Topic:
The research addresses various concepts of leadership, organizational decision-making and
organizational sustainability. The researcher attempted to establish a link between the management
leadership, its impact on decision-making, and the organizational sustainability. This chapter reviews the
concepts in detail.
Organizational Leadership:
Leadership is one of the key elements that determine the future of an enterprise. Every enterprise
requires effective and strong leadership for achieving optimum effectiveness. Organizational leadership
encompasses human psychology along with prudent business tactics. The leadership that is provided by
the management personnel or the managers within the organization needs to be relevant to the current
business dynamics. Leadership should ensure that it is able to guide and motivate the subordinates in
tough times of the organization and yet be able to make the business grow and sustain amidst such
crisis (16 Personalities, 2014). An effective leader should be able to implement proper control and
coordination among the group members such that they obey the instructions. In this regard it should be
understood that organizational leadership is not about dominating and dictating the subordinates. It is
more about offering guidance and direction to the subordinates such that they are able to understand
their respective job responsibilities and able to achieve their individual goals and objectives along with
those of the organization. Therefore, an efficient organizational leader should be a selfless individual
with the focus on being the mentor, role model and the one that leads from the front. This will inspire
the juniors to look up to him and respect him as an able leader in the organization (Management Study
Guide, 2017).

Different forms of Leadership:
Leadership in organizational context can vary by type depending on the personality and attitude of the
leader. The most popular types of leadership are the Autocratic, Democratic, Transactional,
Transformational, Laissez Faire, and Situational. The researcher elaborates on these types later in this
paper.
Differences of Leadership in Public and Private Sectors:
Leadership traits are found to differ across the private and the public sectors. This results from
differences in the goals and objectives of public and private sector organizations. Some of the major
differences include the strategies such as, for a private sector firm, the emphasis is on generating the
maximum possible financial returns on investments for the benefit of the stakeholders (Get Smarter,
2017). In the case of the public-sector organizations, the main business motive is to offer various
products and services for the benefit of the public. Profitability is not the primary objective of this type
of organization. Apart from this, the private sector organizations are found to have more clearly defined
objectives focused on enhancing profitability as compared to the public-sector enterprises where the
clarity of goals and objectives of the employees is much lower (GetSmarter, 2018). This is one of the
prime reasons behind the form of leadership varying between the private and the public sectors. The
other major area of difference between leadership traits in public and private sector organizations is the
stakeholder expectations. In the case of the public-sector organizations, the major stakeholders are the
public or the citizens of the country (J. Dudovskiy , 2013). Their expectation is to make the most efficient
use of the tax money that they are paying to the government. They expect products and services
designed to suit their needs and demands directly from the government. On the contrary, there are
several stakeholders in respect of a private sector firm such as investors, suppliers, employees,
customers, etc. Handling the demands of the stakeholders is much more challenging and requires much
intricate and varied strategy to satisfy the demands of each one of them. Thus, leadership traits and
characteristics need to differ in case of handling stakeholder needs in case of public and private
organizations (Dudovskiy, Leadership Differences between Private and Public Sector Organisations:
literature review, 2013).
Organizational Decision-making:
Decision-making is one of the key functions of a manager in an organization. Some key strategic
decisions are undertaken by the management personnel. The others must be addressed by the
managers on a regular basis in their respective departments within the enterprise. This decision-making
process needs to be done in several phases sequentially in order to ensure that it culminates into a
prudent strategic decision in the end. There are seven steps involved in a prudent decision-making
process. These steps would be discussed in the literature review.
Leadership and Organizational Sustainability:
Modern organizational leadership should culminate into achieving long-term sustainability of not only
the organization but also its various stakeholders. Managerial leaders should play the role of sustainable

leaders. It refers to the managerial decision-making and strategies focused on the well-being of the
various stakeholders such as employees, customers, investors, suppliers, and others. The objective of
this form of leadership is not restricted to profit making and achieving of personal objectives only, but
also achieving a holistic sustainability for the organization and all its stakeholders. An organization
operates within the society and community and therefore, leadership should endeavour to ensure
sustainability and development of the society, community and environment as a whole. This has
become an important aspect of managerial leadership, especially in this era of globalization
(Šimanskienė & Župerkienė, 2014).
Thesis Statement:
The thesis statement for the research aims to validate the expected outcomes of the research. For, this
particular research, the thesis statement is as follows: “Organizational leadership is one of the key
factors that influence the managerial decision-making in order to achieve sustainability of the
enterprise.”
Research Aims and Objectives:
Research Objectives:
The objectives of this research are enumerated as follows:
 Identifying the impact of organizational leadership on prudent strategic decision-making;
 Determining the differences in leadership between a public and private organization;
 Assessing the difficulties those might be faced by a leader from a public organization to lead in a
private work culture;
 Ascertaining the required changed organizational structure to cope up with the changed
organizational strategies; and
 The extent to which successful leadership and strategic decision-making can ensure
organizational sustainability.
Research Questions:
Primary Research Questions:
Is it possible for a manager from a governmental sector who has a combination of traits such as
autocratic leadership style to provide effective leadership in a private sector organization after a
merger?

Can a governmental sector manager succeed in adopting the different business motives of a private
sector organization?
Secondary Research Questions:
The primary research questions has led to the development of the secondary research questions those
are as follows:
 What is the best-suited structure for the company to ensure that it regains the lost stability?
 What are the effective strategies needed to ensure growth and sustainability?
 What are the effective traits and style of leadership for ensuring that the company is able to
achieve the desired targets?
Scope of Research:
The researcher attempts to identify the impact of leadership on organizational sustainability. The aim of
the research was to determine the consequences of difference in leadership styles and traits owing to
the variation in the work cultures between public and private sector organizations (Hansen & Villadsen,
Comparing Public and Private Managers' Leadership Styles: Understanding the Role of Job Context,
2010). The research tried to identify the major causes of differences in leadership between a private and
public-sector organization. Through the course of the research study it has been identified that there are
differences in business objectives between a public and private sector organization (Andersen, Public
versus Private Managers: How Public and Private Managers Differ in Leadership Behavior, 2010). While
the aim of a private sector organization is to achieve sustainability through profitability, the objective of
a public-sector organization is to achieve sustainability through its services to the people and there is no
profitability intent (Flemming, 2016). This is one of the major underlying differences in operating
objectives between a public and private sector organization. The purview of the research consists of an
in-depth analysis of the organization that has included the implementation of the various models and
techniques such as the 7-S Framework, SWOT Analysis, Balanced Scorecard and PESTLE Analysis. The
scope of the research included the analysis of the organizational situation before and after the merger.
Apart from these, the research also encompassed the studies on various theories on leadership such as,
the Great Man Theory, Behavioural Theory, Contingency Theory, Trait Theory, Transactional Theory and
Transformational Theory.
Limitations of Research:
The research had some limitations. Future research should address these issues that might be resolved
in a better manner. For example, one limitation was the lack of existing adequate literature on the
private sector enterprises managed by leaders originating from public-sector backgrounds or vice-versa.
This has been a difficult area for the research study due to which the task of gathering information from
the various literature sources was a challenging proposition the research amidst these limitations has

the opportunity of exploring something new that has not yet been successfully and satisfactorily
explored with conclusive results.

Chapter 2: Literature Review:
The researcher scoured existing literature for authentic and reliable information that served as a
foundation for the study. The literature review helped for the purpose of analysing the case study of the
medical devices group. The analysis of the results was framed on the findings of the literature review.
The literature review includes the various aspects such as leadership differences in between public and
private sector employees as well as theories on leadership and other domains those ensure
organizational growth and sustainability.
Styles of leadership:
Khan and Khandaker (2016) suggest that leadership styles are important aspects for any business
organizations. They differ according to the organizations. Leadership is the skill and the quality that
helps the organizations to grow and develop. The majority of the organizations depend on the
leadership style. Irrespective of the type and the sector of the organizations, leadership is one of the
utmost important aspects. The success of any business depends on the right leadership style. The skills
and qualities of the leaders help the organizations to achieve the desired result and outcomes (Leviticus,
2017). The leadership style depends on many factors. The organizational culture exerts immense
influence on the leadership style. The leadership style makes the employees to work as per the
specifications and requirements (leadershipnow, 2017). The stakeholders who have interests in the
outcomes of the organizations also influence the leadership styles (Cecil, 2013). The leadership differs in
the style and conduct and makes the organizations different. There are basic differences between the
private and public-sector organizations. The private and public-sector organizations differ in the styles of
the leadership and the decision-making process also differ. The aims and objectives of the private and
public-sector are different and that makes the differences in the leadership styles. The ways in which the
organizations belonging to both sectors deal with changes also depend on the styles of leadership. The
researchers have studied the organizations in both private and public-sector to analyze the reasons
behind the differences in the leadership styles in private and public-sector (Khan & Khandaker, 2016).
Dudovskiy (2013) identifies the main difference in the leadership styles and the private and public-sector
organizations lies in their objectives. The profit maximization is the main objective of the private sector
organizations whereas providing different products and services and serving the customers and the
public. The private sector organizations are more inclined in earning more returns in financial terms. The
investors are interested in the returns on their investments. The aims and objectives of the private
sector and public-sector organizations are different. It makes the situations different for different
leaders. The profit maximization is the main aim of the private sector organizations. The stakeholders of
the public and private sector organizations have different expectations when they are associated with
private or public-sector organizations. The stakeholders expect to get higher returns on their
investments. For example, the employees being the internal stakeholders expect fair and desired
compensations and payouts for their efforts in the organizations (Iqbal, Anwar, & Haider, 2015). The
customers expect high quality deliverables at affordable prices. The leadership depends on these
factors. The public-sector organizations are more secured in respect to the job and the employees get

job security more in public sector. The private sector is more competitive. The employees of the private
sector are motivated more by the tangible elements like monetary rewards than the intangible aspects
like that of the public-sector employees (Khuong & Hoang, 2014).
Similarly, the external environment factors affect more the public-sector organizations than the private
sector organizations (Dudovskiy, Leadership Differences between Private and Public Sector
Organisations: literature review, 2013). For example, the changes in the political factors impact the
public-sector organizations more than the private sector organizations. The private organizations
become bound to react to the changes in the political factors. The changes in the economic factors
affect the private organizations more than the public sector. The economic changes impact the decision-
making process and the other related issues. Leadership differences take place because of these aspects
(Dudovskiy, Leadership Differences between Private and Public Sector Organisations: literature review,
2013).
The Public vs. Private sector leader:
Andersen (2010) suggests there are certain differences in behaviors of the managers of the private and
public-sector organizations. There have been studies on the behavioral differences of the managers and
the differences in the leadership styles in private and public-sector organizations. It has been observed
that the transformational leadership styles are more found in case of public-sector organizations
(Reynolds, 2015). The leadership style that the researchers have observed in this case is more inclined
towards the learning and sharing of knowledge so as to transform the employees to be competent and
skilled for the particular jobs profiles. The leadership style that is predominant in the private sector
organizations is more inclined towards relationship management. The managers of the public-sector are
influenced and motivated by the power. The public-sector managers are also intuitive while making
important decisions but the leadership style is more directed towards the changes (Bolden, 2005 ). The
change-oriented style of leadership is more profound in the public-sector organizations. They are more
interested in the achievements and that motivate them the most. From the analysis it can be said that
the leadership styles in public and private sectors are different in respect to the motivations, behaviors
of the managers and decision-making. The organizational differences also contribute to the changes in
the leadership styles and the behaviors of the managers of the public and private sector organizations
(Andersen, Public versus Private Managers: How Public and Private Managers Diff er in Leadership
Behavior, 2010).
Hansen and Villadsen (2010) explain that the public-sector leaders and managers use more participative
leadership styles while the private sector leaders are more inclined towards the directive leadership
styles.. According to the traditional approaches of leadership, the style of leadership often depends
upon the organizational and work culture that is prevalent within the enterprise. The complexities of the
jobs, clarity of the jobs, and autonomy in the jobs also determine the styles of leadership in the private
and the public-sector organizations. In the modern context of business the more popular leadership
style in the private sector is directive leadership (Leviticus, 2017). The managers and leaders of the
private sector set clear objectives and goals for the employees and direct them to achieve the same.
They clearly define the objectives to their subordinates (Bolden, 2005 ). The business leaders following
directive styles expect that the subordinates will understand the expectations of the business leaders

and will abide by them. This style is very similar to that of autocratic style of leadership (Travis, 2017).
The tasks and the responsibilities are initiated by the business leaders and they give the responsibilities
to their respective subordinates. The managers help the subordinates to get the work done by them.
(Parikh, 2016). The changes in the organizational culture also impact the styles of the leadership both in
public-sector and private sector. The rules and the discipline of the organizations also influence on the
leadership styles (Hansen & Villadsen, Comparing Public and Private Managers' Leadership Styles:
Understanding the Role of Job Context, 2010).
Demeter and Țapardel (2013) conducted a study on the leadership of the private and public sectors and
found these two sectors to be more inclined towards the skills and qualities of the managers,
knowledge, core competencies, and personal abilities of the managers. The attitudes of the managers
also exert influence on their leadership styles (Nwlink, 2015). These are important for the enhancement
of the competencies of the managers in the organizations. These elements develop the behavior and
attitudes of the managers. The authors have said that there are not so many differences in the styles of
leadership for public and private sector organizations. The public-sector managers are elected in the
similar way in which the politicians are appointed. Public-sector managers are interested on the
achievements and the ways they can serve the public on behalf of the managers (Iqbal, Anwar, &
Haider, 2015). The managers of the private sector are more interested in the profits and outcomes. The
performances of the managerial personnel in case of the public organizations depend on the abilities to
serve the society and public with the desired deliverables while the private sector managerial personnel
judge the performance on the profits and rewards.
In case of the public-sector the decision-making process of the leaders is based on the hierarchy and on
the conventional approaches whereas the private sector business leaders make the decisions on
participative methods. The private sector managers believe that they are more likely to include the
employees and the members of the organizations in the decision-making process to achieve the success.
They empower the employees and they direct them to achieve the competitive targets and they define
the jobs and objectives in clear terms to the employees. There is autonomy and less complexity in the
managerial functions of the private sector organizations. There is flexibility in the decision-making
process. On the other hand there are more complexities in case of managerial functions of the public-
sector organizations (Cecil, 2013). The management tasks and functions of this sector are more complex
and there are ambiguities. The autonomy is less in case of the employees. The external factors like the
political factors are influential in case of the public sector. The managers believe in directive styles of the
managers (Demeter & Țapardel, 2013).
Michael (2016) found that the public-sector business leaders follow the directive style of leadership. In
reality, leadership style is less effective in getting the things done by the employees. The managers and
the business leaders of the public-sector believe directive style of leadership. The management does not
allow the employees of the public-sector to provide their feedbacks. The performance of the employees
is judged by the ways through which they complete their assigned jobs. The employees in case of public-
sector are found to be unfulfilled and they are not that satisfied by their jobs. They have security in
respect to jobs but they do not have the content that they are expected to have. The private sector
business leaders are more towards developing the motivation and content of the employees (Helmrich,

2016). They provide the employees with clear objectives and expect them to participate in the decision
making process. The private sector managers have more inclination towards keeping the employees
satisfied with different elements of motivation both intrinsic and extrinsic (Alliance , 2017). The
employees of the private sector are found to be more competent and skillful as they are provided with
better training and development facilities.
The private sector business leaders instill the biggest objective of the organizations within the minds of
the employees and let them grow and develop as per the requirement (Post, 2017). It can be said that
the leadership styles help the employees to move to the right directions. The private sector leaders and
managers are found to develop the employees in such a way that they become active contributors
towards achieving the competitive advantages. The employees of the public-sector do not have the
competitive mentality and they work with job security which on hand keeps them satisfied and on other
hand makes them to perform less (MICHAEL, 2016).
Kimberling (2015) identifies the importance to observe the nature of the challenges of the leadership in
both public and private sectors. The leadership styles are affected by the type and nature of the
challenges. There are several cases where the leadership challenges are similar for both the sectors. The
leaders of both public and private sectors face the challenges while balancing the priorities of the
multiple tasks, spanning the boundaries, creating changes, developing transitions in roles, influencing,
interpersonal conflicts, directing through the changes, managing the changes in the organizations,
motivating the employees, leadership on personal grounds, management of talents and balancing
between work life and personal life. These are common issues and challenges that both the private and
public-sector leadership faces. The change management is one of the most important and crucial
challenges that needs to handled with enough care and concern (Hood, ND). The changes in the public
organizations are more influential as compared to that of private sector organizations
(Nanjundeswaraswamy & Swamy, 2014). It is true that the challenges that the changes bring in the
public-sector get exaggerated by the lack of employee motivation and morale and with the rigidity in the
norms and regulations. The public-sector faces the issues of budget constraints and lack of
accountabilities. These are the fundamental challenges that the public-sector leadership faces. The
management sometimes does not define the goals and objectives in clear terms to the rest of the
organizations and that gives rise to different challenges during implementing the changes. Lack of
training of the employees is also another reason that makes the leadership styles to be different.
Moreover the public-sector leadership faces more challenges during the implementation of changes
because of lack of proper motivation of the employees. Job satisfaction is a big term and it does not only
include job security but also many other elements that enhance the job satisfaction. The leadership
styles are required to be effective and suitable for different situations. The private sector leaders are
more effective in managing changes as they believe in defining the objectives and goals to the
employees on clear terms and they also train them (Kimberling, 2015).
Theories on leadership:
Cherry (2017) explains the Great Man Theory of leadership is one of the most important theories that
says that great leaders are not made rather they are born. Thomas Carlyle said that the great men and

leaders are born with the magical qualities of handling any situation with their inherent skills and
magical power. The majority of the leaders who have ruled the world and have inspired the others are
born leaders. It is not possible that an individual becomes an effective leader all of a sudden. The Great
Man Theory says that the divine inspirations of the great leaders are inborn in nature and they give rise
to effective leaders. The success of the organizations in every sector depends on the qualities and
abilities of the great leaders (Johnson, ND). The born leaders also influence the organizational culture.
The great leaders are effective in managing resources especially the human resources in the best
possible ways and they know the ways of leading the people to get the work done by them in a safe and
successful working environment.
The theory has tried to imply that some people are born with the abilities and qualities to rule and to
lead others. They have the aura of inspiring others and they can easily get the loyalty and faith from
their followers. The theory also says that there are certain special attributes that make the leaders
successful and differentiated from the others. They can portray themselves to be different and distinct
from the rest of the world with their magical power. It is true to say that the effective leadership can
change the situations and pave the way towards the success. However, it has been said that there are
many people who do not get the opportunities to prove their leadership qualities and talents and
therefore they cannot establish themselves to be effective leaders. Some have criticized the theory on
the ground that it has focused on the great men who had the opportunities to be great leaders since
their birth (Cherry K. , 2017).
Spahr (2015) describes transformational leadership as one of the most important leadership styles that
impact the organizational outcomes. The transformational leadership is all about bringing in changes in
the organizations, community and the society as a whole. The changes are not easy to be implemented
in the organizations (futureofworking, 2016). The majority of the organizations face challenges in
respect to the changes because of poor leadership styles. The transformational leadership is all about
the making the members of the organizations capable of facing and accepting the challenges and brining
in differences in the organizational culture (Devie, Semue, & Siagian, 2015). The transformational
leadership is crucial in enhancing the capacities and abilities of the team members in getting the
strategic objectives achieved. The transformational leaders are those who make the members of the
teams motivated by being responsive to their needs. The private sector leaders are found to be
transformational as they have the will to bring in changes in the organizations for the good. The
transformational leaders are well aware of the ways of getting things done by the employees and they
are more inclined towards the sustainability and long term achievements (Awamleh, 2005).
Furthermore, transformational leadership style is best at generating new ideas. It also helps to
communicate the new and creative ideas to the rest of the organizations. The transformational leaders
balance between the objectives and goals long term in nature with that of the vision of the
organizations. The trust and integrity between the members are established by the transformational
leaders who are empathetic to the others. In case of bureaucratic structures the transformational
leadership style is not suitable. The private sector is more likely to believe in transformational leadership
style for the long term success (Spahr, 2015).

According to Rouse (2017), the transactional leadership theory deals with that style of leadership that
emphasizes on the outcomes. The transactional leadership style is applicable in the organization culture
where the employees are directed to work for the achievements and they are less motivated. The
transactional leaders set or follow some strict and traditional regulations or ways which they expect to
be abided by the members of the organizations. The reviews of the performances of the members of the
organizations are the base of judging the employees’ performance in case of this leadership style. The
transactional leaders make the employees and the team members to know their jobs. The employees
are motivated either by rewards or penalty. The transactional leaders believe in a structured culture
where the employees have to work and there the liberty of the employees is less. The transactional
leaders are more reactive in nature (Devie, Semue, & Siagian, 2015). This style of leadership can be best
suited for the situations where the leaders can apprehend the issues and become ready to fight back the
issues. The leaders monitor the progress of the teams and the members and also help them with the
structure or the guideline that helps them to achieve the desired success. The motivation of the
employees is not taken with much seriousness in this type of leadership.
However, it can be seen that the transactional leadership style believes that in getting the tasks done by
the employee rewards and penalties or punishments are important. The leaders give rewards and
recognition to the employees who perform as per the expectations or requirements and penalize the
ones who do not perform accordingly. The leaders believe in transactions and achievements. The
leaders expect the workers and the employees to work as per the standards set by them and if the
employees do so they get rewarded or punished if they do not abide by the regulations (Rouse, 2017).
Cherry (2017) explains the trait theory of leadership as one of the common theories of leadership in the
modern business world. The theory has gained its popularity in the twentieth century. It was proposed
by Thomas Carlyle who is considered as the brainchild of this theory (Learning Wales, 2016). The theory
says that there are certain common traits that make an individual an effective leader. The traits vary
from person to person but there are some of the traits which are found to be common for all. The trait
theory says that the effective leaders have common traits like they are intelligent and they have self-
confidence. They have high determination level and they believe in integrity. They are also highly
sociable. The theory says that these are the traits which some individuals are born with. These traits
make the individuals to be effective leaders. According to this theory there are certain traits which
develop certain particular types of behaviors in the leaders. The behaviors that are recognized by the
trait theory are found to be consistent in every situation. The individuals are born with these traits and
they become different from the others because of these traits. This theory is also based on similar belief
that the individuals are born with certain qualities which make them identifiable as effective leaders.
The trait theory of leadership is important in many cases where the organizations have to decide which
style of leadership has to follow (Cherry, 2017).
Kanodia and Sacher (2016) explain that trait theory identifies some of the common characteristics of the
individuals which provide the right answer behind the fact that some are born leaders and they just
need the right opportunity to prove them. It has been seen that not all the individuals can become good
leaders. Few individuals with some common traits and characteristics can become effective leaders. It is
true in every situation. The trait theory highlights the common characteristics of the effective leaders

that make them truly successful. The initiative with which a leader gets the job done, the tenacity of the
leaders and the energy of the leader in every situation makes him or her differentiated and successful
being effective leaders is common. Effective leaders are found to be flexible and creative in nature. They
have the charisma to inspire and impact the others. The emotional intelligence of the effective leaders is
commendable. They know the ways of driving and motivating their subordinates in getting something
fruitful and achieving the desired success. They are full of confidence and they make the others
confident. They are honest and they believe in integrity. These are common types of characteristics that
make an individual successful leader. These are the main aspects being highlighted by the trait theory of
leadership (Kanodia & Sacher, 2016).
Yahaya et al (2012) identify five (5) traits or personalities that build an individual. The main five
personalities or dimensions of personalities form the base of the theories of leadership. The five main
traits or personalities that are found in most of the successful and effective leaders are openness,
conscientiousness extraversion, agreeableness, and natural reactions. These are the main traits that
define an effective leader. The five traits or personalities are termed as Big Five personality traits. These
are mainly highlighted in the OCEAN theory (Positive Psychology Program, 2017). The dimension of
openness means the imaginativeness of the individuals and their openness to experiences. They are
much creative and intelligent. They are perceptive and they have immense analytical power. The
dimension of conscientiousness implies the behaviors that are highly directed towards goals. The
individuals with this dimension are much organized and reliable and they like to take responsibilities.
They are practical and rational by nature. Extraversion means the individuals are much extrovert and
enthusiastic. They are talkative and bold in nature. They are sociable and they can express their
emotional feelings better than others.
The individuals with neuroticism are found to be either instable or stable with calmness. The individuals
can be ruled by the natural reactions like they can lose control on their emotions quite easily. In some
situations they can be calm and relaxed even in situations of stress and crisis. They suffer from sadness
and they are driven by moodiness. An effective leader is found to be emotionally much stable and he or
she can remain relaxed and calm in any situation. The agreeableness makes an individual warm and
polite. They are highly cooperative and they are unselfish in nature. The OCEAN theory or Big Five traits
of personality explain the different characteristics that differentiate an individual from the others
(Kanodia & Sacher, 2016). There is a close connection between the big five traits of personality and the
motivation of the employees and competitiveness which in turn impacts their job satisfaction (Yahaya,
Yahaya, Bon, Ismali, & Noor, 2012).
Derue et al (2011) describes the Behavioral Theory of leadership as dealing with the ways in which the
leaders behave and the functions of the leaders. The theory says that there are certain styles of
leadership which will work but there are certain others which will not work properly. The main functions
of the leaders include the determination of goals, motivating the members of the organizations and
getting the objectives and goals achieved, establishing effective communication and building of teams.
These are the fundamental behaviors of the leaders who are successful and effective. The Behavioral
Theory believes that leadership qualities can be developed and taught it is not mandatory that leaders
have to be born with the traits and qualities for being successful.

The theory highlights ways of developing the leadership qualities and skills so that the business leaders
and managers can respond to the specific situations. The theory has studied the behaviors and attitudes
of the leaders and it analyzes the doings of the leaders. It does not believe that only the individuals who
are born with the qualities can become successful leaders rather it emphasizes that the individuals can
also become successful and effective leaders in course of their personal and professional life either by
self-development or by learning. It also analyzes the relationship and connection between the behaviors
of the leaders and the success that they achieve with these behaviors. It has been observed that the
behaviors of the leaders determine their success of failures. The effective leaders choose the right style
of behaviors for any particular situation to become successful (DERUE, NAHRGANG, WELLMAN, &
HUMPHREY, 2011).
Gupta (2009) identifies the contingency theory of leadership as another important aspect that studies
the leadership components. Fred Fiedler has come up with the theory of contingency in the middle of
1960s. The theory says that there is no specific leadership style that can be proclaimed to be the best.
The effectiveness of a leader depends on the situations and the ways they behave in different situations.
The leadership styles can be either inclined towards the tasks or towards the relationships. The leaders
have to identify the situation and then have to decide for the most suitable style of leadership. There
are different situations in the business world where the leaders have to behave accordingly. The styles
of leadership must be dependent or contingent to the situations both internal and external to the
business organizations. The unforeseen situations must be handled by the leaders with their
effectiveness and that makes them successful. The majority of the leaders have been observed to be
behaving according to the situations. The leaders have to be more responsive to the demands of the
situations. They need to be more careful about the needs of the situations. The leaders who are actually
very successful are found to be very much responsive to the situations. The theory has been analyzed
and has been found that there are some disadvantages like this theory does not focus on the flexibility
in leadership.
The contingency theory is based on three factors like the relationship between the members and the
leaders, structure of the tasks and the authority of the leaders. The leaders have to match with the
situations and have to come up with the right style of leadership. It is the main aspect that makes this
theory so popular. The theory considers the styles of leadership that cannot be modified or cannot be
influenced by anything. The effective leaders know the ways of matching their styles on the situations
rather than they get influenced by any situation and modify their styles of leadership. This is
fundamental difference between the situational and contingency theory of leadership. The leaders know
the ways of making their styles of leading people appropriate with the situations rather than they
change their leadership style with the aim of matching with the situations. The three factors that build
the foundation of the contingency theory are extremely important as they guide the leaders to become
successful (Gupta, 2009).
Jorge, Coelho, Paraizo and Paciornik (2014) identify leadership as one of the most important aspects
that help the business organizations irrespective of the type and sector able to achieve the success and
to become sustainable in the long run. The majority of the business enterprises that succeed and
achieve the competitive advantage are found to be led by effective leaders. The teamwork is another

essential aspect behind the success of the enterprises. The teamwork is essential for the achievements
of the broader goals and objectives of the business enterprises. The leadership styles and effectiveness
of the leaders help in building the teams. The teamwork is needed for the organizations to achieve the
success and desired result of the enterprise. The teams have to be managed well and the members need
to be motivated well so that they get the urge of completing their tasks timely and they contribute their
full efforts. The leaders have the responsibilities of making the teams active and enthusiastic
(Henderson, 2017).
The management of the teams and the teamwork is well observed in the private sector where the
market dynamics are more intense as compared to that of the public sector. The teamwork is highly
appreciated in the private sector as there is huge competition. The internal rivalry among the members
of the teams needs to be prevented and the members have to be taught to think more than their own
objectives and goals. The effective leaders are found to make the members of the teams to think for the
broader vision of the organizations and they try to achieve the goals of the organizations beyond their
own objectives. On the hand it is also true that the members of the business organizations need to be
channelized properly with motivation. The public-sector employees do not get the motivation. The
private sector business leaders are aggressive towards the achievements of the profitability and that
make them to form enthusiastic and energetic teams where the members are highly motivated. They
know their tasks and they are directed towards serving for the achievement of the broader goals and
objectives of the organizations (Herrera, 2001). The productivity of the members of the teams of the
private sector is higher as compared to that of the members of the teams of public sector. The members
of the teams pursue self-investments when they are motivated and this depends on the effectiveness
and efforts of the leaders (Jorge, Coelho, Paraizo, & Paciornik, 2014).
Summary:
There are certain traits that are found in case of both public and private sector leadership. Public and
private sector leaders promote communication to be clear and open, support the individuals, allocate
resources, remove obstacles and promote innovation. The researchers have tried to identify the areas of
differences in the private and public leadership styles and it has been observed that there is no
remarkable difference between these two if the above mentioned five traits are considered. The leaders
of both the sectors are inclined towards the creation of the effective business organizations where the
respective objectives and goals are achieved. The leadership is the quality whether inherent in the
leaders or being developed but crucial for any sector.

Appendix:
O.C.E.A.N Big Five Personality Theory:
This theory is used by many modern organizations in order to understand the personality types of
various employees and management personnel. These are the major underlying characteristic traits
those help to shape up the personalities of individuals. According to this theory there are 5 major
characteristic traits those are considered as big five and are perceived as some of the major traits those
help in the development of leadership qualities in a person. These qualities can be enumerated as
follows:
 Openness- The person must be open to new ideas and be prepared to have new experiences or
in other words he needs to be an imaginative and insightful individual. He must also possess a
variety of interests to be considered as a person with openness.
 Conscientiousness- This trait is represented by having reliability and promptness. The person
needs to be methodical and organized to be considered as one with conscientiousness.

 Agreeableness- This quality is about having warmth, compassion, friendliness, cooperativeness,
sympathy and affection. This helps a person in becoming better at mixing with others and
therefore a good leader should possess this quality.
 Extraversion- This characteristic is considered as one of the most important criterion for an
effective leader. This person demonstrates energy, exuberance and assertiveness. An extravert
is considered to be outspoken and he gets the motivation to act in such a way from the others
he is interacting with, unlike the introverts those are self-driven and get the motive from their
own self.
 Neuroticism- It is the emotional stability of the person. It mainly refers to the level of negative
emotions within the person. Persons those score high in this factor are considered to have
emotional instability and tend to demonstrate negative emotions. The people of this type of
nature are generally very moody and tense (Vision One, 2015).
In the context of the medical devices group it can be said that the CEO of the organization has not
demonstrated any of the big 5 characteristics of an efficient leader with his leadership in the
organization. Therefore, his lack of possessing the abilities and skills of an effective leader is evident
from the analysis of his leadership and personality skills and traits.
The analysis of the strategic decisions can be made with the help of administration of McKinsey’s 7-S
Model.

McKinsey’s 7-S Model:
The model is utilized for identifying the organizational design of a firm by analysing the seven major
internal elements of the organization. These seven factors are categorized into hard and soft factors.
Among the hard factors there are the Strategy, Structure and Systems. In the category of the soft factors
there are Style, Skills, Staff and Shared Values.
1. Strategy- It is referred to as the plan that is implemented by the management for sustaining
competitive advantage in the industry. A prudent organizational strategy should have the
attributes of being a long-term plan, having a strong and well-articulated mission, vision and
values. Strategy needs to be aligned with the key elements of the organization to ensure that
the organization is on the right path to achieve growth, sustainability and competitive
advantage.
2. Structure- It refers to the organizational structure such as the various divisions, departments
and units those are present within the organization. It consists of the reporting hierarchy and
therefore pertains to the accountability of the employees to each other in terms of their
positions in the organizational structure.

3. Systems- They consist of the daily activities, processes and functions of the organization and
consist of the decision-making processes of the management. This area is affected by the future
change strategies of the firm and the managers should focus on this area when the firm is going
to embrace a change in its operations or structure.
4. Skills- These refer to the various expertise and abilities of the employees of the organization.
These depict their levels of competencies. In times of organizational change, the management
should be prudent and diligent enough to understand those new skills which are required to be
adopted by the organization in line with its new structure or strategy.
5. Staff- The staffs refer to the old and new employees those are working in the organization.
When the organization is going to undertake a change management strategy then the
management should effectively assess the required number of staffs for each position of the
company. It consists of all the strategies and policies required to be adopted by the
management for recruiting, training, motivating and rewarding the employees effectively.
6. Style- The style of the organization represents the ways in which the firm is managed and
controlled by the management personnel in the top level of the organization. It also accounts
for their ways of interaction, their actions and attitudes of the management in terms of their
leadership qualities.
7. Shared Values- The shared values form the integral part of McKinsey’s 7-S Model. These are the
basic rules, regulations, principles and standards those are the one and the same for each of the
employees of the organization. These form the basic foundation of every organization. The
management should be able to ensure effective control and management systems so that all the
employees abide by the organizational norms and policies. The shared values should be adhered
to at every stage of the organizational functioning (Jurevicius, 2013).

Chapter 3: Methodology:
The research methodology implemented for this research was the secondary data analysis collected
through review and comparative analysis of various literature Invalid source specified.. A case analysis
was also used to understand the topic from the practical, more in-depth perspective.
Data Collection Methods:
The research encompassed the review of various sources of literature and secondary data. The data was
collected from the internet and electronic databases to identify the strategic differences in leadership
between managers in private and public sector Invalid source specified..
External and Internal Factors affecting the organization:
As a part of the research methodology, the McKinsey’s 7-S Model was implemented on the organization
along with SWOT and PESTLE Analysis in order to understand the various external and internal factors
affecting the operations of the organization before and after the merger. The organization was analysed
in terms of its differences prior to the merger and also after the merger. The changes were assessed
along with their reasons of occurring. A review of leadership was undertaken for identifying the types
and traits of different leaders Invalid source specified..
Leadership Theories:
Several theories on leadership such as Transactional, Transformational, Behavioural, Contingency, Trait
and Great Man Theory were reviewed in order to find out the essence of these leadership styles on the
organizational strategic outcomes and sustainability Invalid source specified..
Personality traits of Managers:
The O.C.E.A.N Big Five Personality Model was also administered for identifying the personality type of
the manager. The other tool that was implemented was to analyse the strategic decision-making process
of the management before and after the merger.
Data collection process:
The data were collected from the company through undertaking an investigation on the company for
gathering of information related to the various strategic decisions of the organization prior to the
merger. The information was gathered from the management that the company was performing well
before the merger as it was one of the leading medical equipment suppliers in Israel and also across
various countries in the world. The merger was undertaken in order to consolidate the various activities
of the organization from being a centralized one to a more decentralized structure such that the work
process becomes much easier for the employees working in different departments of the organization.
The information gathered also encompassed the various strategic decisions undertaken by the
management after the merger that led to the downfall of the quality of some of the products of the
company due to which one of its products had to be recalled. It was also learnt during the phase of the
data collection that there were some unethical business practices adopted by some of the managers in
the different departments of the organization that led to the purchase of inferior quality of raw

materials which were used to manufacture the products. It led to so much of customer dissatisfaction
that the reputation of the company was at stake and there was the need for a quick review of the
situation along with plausible solutions to improve the situation.
Data Analysis Methods:
Secondary Research Analysis:
The analysis of the data was undertaken by the application of various analytical tools and models such
that the research questions are satisfactorily answered. The analysis was undertaken in a qualitative
form in order to appear to the expected outcomes of the research. Various models such as McKinsey’s
7-S Model, PESTLE and SWOT Analysis have been conducted on the organization in order to determine
the various factors acting upon the organization and its environment. The PESTLE Analysis has been
undertaken for assessing the overall situation of the country in terms of conducting the business
activities and for identifying the ways in which all those factors have affected the business operations.
Case Analysis:
The analysis has focused on the situation of the company before and after the merger. The objective of
the analysis was to determine the strategic decision-making process of the managers before and after
the company entered into the merger with its supplier. The leadership quality of the management under
the new CEO was also analysed in order to determine his success as one of the top management
personnel that could take the organization in the right direction.
The analysis of the leadership traits of the new CEO was important because it was essential to
understand the effect on his leadership style as he has been from a government organization and he has
been appointed as the CEO of this private organization in the case study. In majority of the cases it has
been observed from the literature review that it is a challenging task for the leader if there is an
alteration in the sector from the public to the private and vice-versa. The public sector organizations
operate with different business motives as compared to the private sector organizations those have
diverse business objectives than those of the public or government organizations. Thus, it is quite
obvious that a person coming from a government sector organization will find it a challenging and
difficult task to provide effective leadership in a private sector organization. In this connection it is
important to mention that although it is difficult initially for a person coming from a government sector
to provide effective leadership in a private sector organization, yet with time and will the leader can be
successful in learning the organizational work culture and work processes such that he can understand
the basic differences in the operational objectives of the private sector organization and the public
sector organization from where he originates.
The analysis also constituted of two different scenarios those might be faced by a personnel in the
management of an organization either in the public or private sector if he is made to offer leadership in
the opposite sector. One scenario might encompass that the personnel that has been selected for the

management position lacks the basic qualities of leadership as some persons do not possess any quality
of leadership because they are just not suited to lead an organization at a responsible management
position. These people will not succeed in leadership whether they are made to lead in a public or
private sector organization. This does not mean that these employees are unworthy of working in the
organization. They might be really talented and skilful employees those can be real assets for the
organization, however, they are devoid of any leadership quality that is a totally different quality that is
possessed by some people only. It comes naturally to some people and they are true leaders who can
guide an organization and its employees in the right direction.
However, it is also true that through leadership that comes naturally is a thing that is priceless for the
leader and his subordinates as he will undertake prudent strategic decisions such that the organization is
headed in the right direction towards the achievement of its objectives. But, for many other people
leadership has to be learnt, developed and nurtured by observing others and through effective
leadership development programs and mentorship sessions conducted by some of the existing
personnel working in some department of the organization who has the reputation of being an effective
leader in the organization. The employee who aspires to become an effective leader should also possess
the determination and the conviction to learn from his or her own experience. The person needs to have
the determination and perseverance to learn from the others and try to improve his or her own
leadership skills by conducting self-assessment from time to time as to the areas where there are
improvements and the areas where there are still perceived weaknesses in the leadership offered by the
personnel. Finally, it is on the leader himself to develop himself accordingly so that he can nurture and
control his own attributes, traits and characteristics. This way, a person can develop his leadership skills
and traits and achieve success in the long run within the organization. In the context of the said case
study, the analysis has also been undertaken for analysing the degree of determination of the CEO as
the leader in the organization to find out if he possessed the desire and zeal to succeed as a leader in
the long run, even though initially he has met up with some strategic failures.

Chapter 4: Results:
The results derived from the various analyses, models, and tools are discussed. The results are organized
into the following sections …..
Organizational Situation Analysis:
At first the analysis was conducted for understanding the internal and external factors of the
organization for assessing the areas of strengths and weaknesses of the company post the merger. For
better analysis of the reasons of the product recall and some management indecisions that has created
the situation of lack of profitability and loss of reputation for the medical devices provider., it was
decided by the management to undertake as SWOT Analysis.
SWOT Analysis:
The SWOT Analysis Model was for identifying the key strengths and weaknesses of the organization
post the merger and the appointment of the new CEO whose efficiency as a leader has been under
question. The SWOT Analysis is considered one of the most popular and effective methods for
determining the strengths and weaknesses internal to the organization (Widler, n.d.). The tool also
identifies the opportunities and threats external factors to the organization. The SWOT Analysis for the
organization in question has revealed the following results:
Strengths
 The company is considered as one of the
most reputed medical devices and
emergency medicine suppliers in Israel.
 The organization is also extremely well-
known round the world in countries such
as the US and in the Indo-Chinese
regions.
 The company has built on its good
reputation and before the merger with
the supplier in 2014, the management
was known to be quite efficient and
effective from the perspectives of
leadership and strategic decision-making
due to which the enterprise not only
expanded in the domestic market but
was also successful in selling its products
in foreign markets.
 The brand has achieved a unique
position in the market owing to its years
of successful products and services those
were considered to be of the highest
possible qualities and the after sales
services were also impeccable.
Weaknesses
 In the post-merger scenario, the
company has lost much of its old
reputation of being a top-notch provider
of quality medical devices and
emergency medicines owing to some
organizational changes and management
alterations.
 Under the newly appointed CEO, the
company has been operating for two and
a half years after the merger has taken
place but in August 2016, the company
had to recall one of its core and most
reputed products as a result of
malfunctioning of the device as
complained by several customers.
 On an in-depth analysis of the root cause
it was identified that the prime reason
for such malfunctioning was the inferior
quality of raw material purchased that
was used in the production.
Opportunities Threats

 There is sufficient scope for
improvement in the domain of offering
effective leadership from the top and
middle level management personnel.
 The CEO of the firm who has already
been in the organizational management
for the past two and a half years has the
opportunity to develop his leadership
skills manifold such that the recent
disaster is not repeated in future.
 The CEO should undertake more prudent
decision-making and ensure stricter
supervision and control on the
employees by establishing more
decentralized approach rather than an
autocratic centralized business approach
that he has been used to in his past
organization.
 There is opportunity to offer the current
managers and other employees with
leadership development programs such
that leadership skills are nurtured and
inculcated in each of the managers and
employees.
 There should be key performance
indicators for each of the managers and
the employees and HR should
implement strict monitoring and
evaluation of performance through
techniques such as Balanced Scorecard
or even with newer systems of
performance appraisal such as the 360
Degree Feedback System
 The major threat that has concerned the
management of late has been the recall
of one of its prime products from the
market that has also led to the decline in
the market position along with a
plummet in the short-term turnover of
the organization.
 The management decisions those have
led to this mishap are questionable and
can be perceived as threats to the future
of the organization.
 If the management is not able to identify
the exact reasons for such managerial
indecisions and take appropriate actions
to redesign the organizational strategy
and work culture of the company, it will
be difficult for the brand to compete
against its rivals those are fiercely
competitive in the market.
 One of the major reasons for this
situation is debated to be the quality of
leadership that is being offered by the
current CEO who has been from a
government sector background and now
managing an establishment in the
private sector that has completely
different sets of objectives and business
vision, mission and goals.
PESTEL Analysis:
The PESTEL Analysis of Israel has revealed the following information:
 Political- The political scenario refers to the various policies of the Israeli government in relation
to trading and commercial activities by business organizations in different sectors like the
medical and healthcare sector. It also involves the regulations of foreign trade, taxation, and
stability of the government. From this perspective the company has a more or less stable
political environment for conducting its business activities in the domestic market.

 Economic- The economic indicators of Israel depict that the GDP per capita of the country has
been $37, 204 (Focus Economics, 2017). The GDP for 2016 has been $318 billion (Focus
Economics, 2017). Both these figures have increased over that of previous year depicting the
soundness and growth of the economy that is a positive factor for the business. The growth rate
for 2016 has been 4% in place of 2.6% in 2015. Hence, the economic growth and progress of the
country is quite evident (Focus Economics, 2017).
 Socio-cultural- The socio-cultural scenario of Israel consist of issues such as lack of adequate
skilled labour supply. There is lack of overall educational progress as should have been in a
developing country. The country has a young population with stable social structures in general.
There is observance of cultural diversity in the country and most importantly a growing and
developing nation with a progressive cultural outlook. These are positive scenarios for the
business to operate.
 Technological- The country has progressed over the years from the technological perspective.
The government is supportive of new and state-of-the-art technology. There has been increasing
instances of automation in majority of the organizations.
 Environmental- The organization has to abide by the environmental regulations and aim to
achieve sustainability in the long run. For this purpose it needs to function as per the
infrastructure that is made available by the government for the particular industry. There needs
to be proper recycling of the materials those are used in the production of the medical devices.
 Legal- The legal requirements need to be observed by the organization operating in the country
such as complete and authentic registration of the company with the Registrar of Companies.
The Memorandum and Articles of Association should be then provided along with a list of
company’s directors and all the other required documents. The company has to follow the tax
rates levied by the government on various trading activities (Phan, 2015).

Leadership Traits Analysis:
The leadership traits have been analysed for the purpose of identifying the type of leadership provided
by the new CEO. The advantages and disadvantages are discussed below.
Transactional Leadership Theory:
In transactional leadership, the leader enforces punitive measures for lack of performance and at the
same time rewards the subordinates for good performance. This type of leadership is undertaken by the
managers in some organizations. This type of leadership is not often liked by many employees as it
encompasses punishing the employee due to non-achievement of some objectives. In case of the CEO of
the organization in the case study, one cannot observe the traits of a transactional leader as there were
no big rewards for good performances and punishments or negative re-enforcements for lack of
performance. Some managers indulged in unethical activities such as the purchasing of inferior quality
of raw materials in manufacturing one of the core products of the brand.
Transformational Leadership Theory:
Transformational leadership is about ensuring more employee participation in key decision-making
processes. It is adopted by the majority of the leaders in modern organizations those are progressive-
minded and believe that it is essential to empower employees to take decisions. Transformational
leaders emphasize the team-building and collaboration between the different employees in the team
such that they can undertake the required changes to be adopted by the organization for ensuring
adaptability to the changing market dynamics. Transformational leaders are exceptional mentors and
they also lead by example which inspires the followers. In respect to the current CEO of the organization
in the test case, it is not possible to find any trait of transformational leadership otherwise the
organization would not have faced such a debacle regarding one of its major products (Hanks, 2017).
Behavioural Leadership Theory:
The Behavioural Theory of Leadership states that a leader should behave depending on the situation.
The credence that is given in this theory is to the belief that leadership is a quality that can be taught
and nurtured by a person. It is contradictory to the Trait Theory which states that some people are born
to be good leaders and the others cannot be effective leaders. According to this theory behaviours can
be conditioned so that it is possible for a person to develop and nurture leadership skills so as to fit with
the organizational culture and objectives (Institute of Manager and Leaders, 2017).
Even though the employee or the management personnel is not an efficient leader naturally, there is
always the scope and opportunity for him to observe and learn from others so that he can learn the
behavioural traits of a prudent leader. Therefore, the newly appointed CEO of the medical service
company had the opportunity to nurture and develop his leadership skills to cope up with the
requirements of a private sector organization. But, the disaster of product recall that happened in 2016
suggests that there is lack of prudent and ethical leadership from the top-level management that has
instigated the medium-level management to indulge in unethical business practices such as purchase of
inferior quality of raw materials used to manufacture the medical equipment. The lack of intent and
ethics of the newly appointed CEO is evident from the case analysis. The merger happened in 2014. The
new CEO had more than two years of time to develop his leadership and behavioural traits so that he

can adapt with the objectives and processes of a private sector firm. However, the disaster that
happened in 2016 clearly indicated that there has, The CEO may be viewed as not being prudent,
efficient, and honest in his approach towards controlling the operations of the various departments.
Contingency Leadership Theory:
The Contingency Theory of Leadership is the product of an Austrian psychologist named Fred Edward
Fiedler who proposed it in the year 1964 in one of his most famous articles titled “A Contingency Model
of Leadership Effectiveness.” (Leadership-Central, 2016). It considers both the personality and the
situation of the leader under which he has to impart the leadership. According to this theory the kind of
leadership provided by a leader depends on various situations and factors. Some are internal and some
external. The major factors on which the leadership depends are type of the task, personality of the
leader, the composition of the team being led, and other uncertain factors. If the test case is analysed
through the implementation of this theory then one can observe no instance of this form of leadership
from the CEO of the organization (Leadership-Central, 2016). If he had acted on the basis of the
prevailing situation then this calamity would not have occurred in the organization.
Trait Leadership Theory:
In the Trait Leadership Theory, the personality of the leader is identified and certain recurring
behavioural and thought patterns are present. Some of the most common traits or behavioural patterns
are shyness, anxiousness, being open to new ideas, etc. It depends on the existence or non-existence of
some of these traits that the assessment of the personality of an individual can be made. This model is
based on the characteristics of various leaders that have been successful as well as unsuccessful.
Effectiveness of leaders can be predicted with the help of this type of leadership (iedunote, 2017). The
traits of leadership are compared to those of the various potential leaders in the making in order to
determine whether they will succeed or not as leaders in the long run. According to this theory, there
are some major traits that separate a leader from a non-leader. There are six major traits: drive, desire
for leading, self-confidence, integrity and honesty, knowledge, and skills relevant to the job and
intelligence It can be suggested that there is evidence of a lack of effective leadership traits in the newly
appointed CEO. This could be from the difference in background coming from government sector and
not private sector organization, or because of the lack of innate leadership ability or both.
Great Man Leadership Theory:
This theory of leadership originated in the 19th century Thomas Carlyle in 1840 (APSC, 2014). According
to this theory history can be defined by the acts of great men such who have proved to be heroes. The
theory establishes that our history has been shaped by the heroic deeds of great leaders such as
Napoleon, Alexander, Churchill, Roosevelt, Hitler, Mussolini, Stalin and a host of others. These leaders
have used their wisdom, intelligence, charisma and Machiavellianism used the power and authority to
make impacts in the world history (Faversham Stoa, 2017). This theory also puts forward that it is the
personal attribute and a divine inspiration that makes a person a great leader that has contributed
significantly towards the benefit or development of the society or community. So, leadership in this
context is observed as an aggregate of some of the unique unparalleled skills, traits and qualities those
tend to distinguish a leader from a non-leader. If the analysis is based on this type of leadership, then
looking back onto the case of the organization and its CEO depicts no such instances of leadership that is

developed on the premises of the great man theory. The CEO has failed in making the desired impact on
the organization and its future business strategies. This can be due to a host of factors such as personal
lacking of leadership skills or owing to the abrupt change in the sector of his operation from government
to private work culture.
O.C.E.A.N Big Five Personality Theory:
This theory is used by many modern organizations in order to understand the personality types of
various employees and management personnel. These are the major underlying characteristic traits
those help to shape up the personalities of individuals. According to this theory there are 5 major
characteristic traits those are considered as big five and are perceived as some of the major traits those
help in the development of leadership qualities in a person. These qualities can be enumerated as
follows:
 Openness- The person must be open to new ideas and be prepared to have new experiences or
in other words he needs to be an imaginative and insightful individual. He must also possess a
variety of interests to be considered as a person with openness.

 Conscientiousness- This trait is represented by having reliability and promptness. The person
needs to be methodical and organized to be considered as one with conscientiousness.
 Agreeableness- This quality is about having warmth, compassion, friendliness, cooperativeness,
sympathy and affection. This helps a person in becoming better at mixing with others and
therefore a good leader should possess this quality.
 Extraversion- This characteristic is considered as one of the most important criterion for an
effective leader. This person demonstrates energy, exuberance and assertiveness. An extravert
is considered to be outspoken and he gets the motivation to act in such a way from the others
he is interacting with, unlike the introverts those are self-driven and get the motive from their
own self.
 Neuroticism- It is the emotional stability of the person. It mainly refers to the level of negative
emotions within the person. Persons those score high in this factor are considered to have
emotional instability and tend to demonstrate negative emotions. The people of this type of
nature are generally very moody and tense (Vision One, 2015).
In the context of the medical devices group it can be said that the CEO of the organization has not
demonstrated any of the big 5 characteristics of an efficient leader with his leadership in the
organization. Therefore, his lack of possessing the abilities and skills of an effective leader is evident
from the analysis of his leadership and personality skills and traits.
Strategic Decision-making Analysis:
The analysis of the strategic decisions can be made with the help of administration of McKinsey’s 7-S
Model.

McKinsey’s 7-S Model:
The model is utilized for identifying the organizational design of a firm by analysing the seven major
internal elements of the organization. These seven factors are categorized into hard and soft factors.
Among the hard factors there are the Strategy, Structure and Systems. In the category of the soft factors
there are Style, Skills, Staff and Shared Values.
[8.] Strategy- It is referred to as the plan that is implemented by the management for sustaining
competitive advantage in the industry. A prudent organizational strategy should have the
attributes of being a long-term plan, having a strong and well-articulated mission, vision and
values. Strategy needs to be aligned with the key elements of the organization to ensure that
the organization is on the right path to achieve growth, sustainability and competitive
advantage.
[9.] Structure- It refers to the organizational structure such as the various divisions, departments
and units those are present within the organization. It consists of the reporting hierarchy and
therefore pertains to the accountability of the employees to each other in terms of their
positions in the organizational structure.

[10.] Systems- They consist of the daily activities, processes and functions of the organization and
consist of the decision-making processes of the management. This area is affected by the future
change strategies of the firm and the managers should focus on this area when the firm is going
to embrace a change in its operations or structure.
[11.] Skills- These refer to the various expertise and abilities of the employees of the organization.
These depict their levels of competencies. In times of organizational change, the management
should be prudent and diligent enough to understand those new skills which are required to be
adopted by the organization in line with its new structure or strategy.
[12.] Staff- The staffs refer to the old and new employees those are working in the organization.
When the organization is going to undertake a change management strategy then the
management should effectively assess the required number of staffs for each position of the
company. It consists of all the strategies and policies required to be adopted by the
management for recruiting, training, motivating and rewarding the employees effectively.
[13.] Style- The style of the organization represents the ways in which the firm is managed and
controlled by the management personnel in the top level of the organization. It also accounts
for their ways of interaction, their actions and attitudes of the management in terms of their
leadership qualities.
[14.] Shared Values- The shared values form the integral part of McKinsey’s 7-S Model. These are
the basic rules, regulations, principles and standards those are the one and the same for each of
the employees of the organization. These form the basic foundation of every organization. The
management should be able to ensure effective control and management systems so that all the
employees abide by the organizational norms and policies. The shared values should be adhered
to at every stage of the organizational functioning (Jurevicius, 2013).

Key Findings:
Management Issues:
In analysing the test case of the medical devices group where the management decisions were
questionable, especially the leadership and management of the newly appointed CEO, it can be
established that as per the application of McKinsey’s 7-S Model, that there were issues related to the
strategy, structure, style, system, skills, staff and shared values those contributed together in the lack of
proper decision-making and demonstration of poor leadership, management and control. Regarding the
strategy, it can be said that there was lack of effective decision-making and clearly articulated rules and
regulations for the departmental managers and other employees to follow that made it possible for
unscrupulous intentions to creep in. In respect of the organizational structure, it can be said that being
from a government sector, the CEO emphasized on an authoritative and centralized organizational
structure but it proved to be ineffective in the private sector organization.
Laedership Style of Management:
Regarding the style of management and leadership provided by the CEO of the organization it can be
said that there was clearly lack of proper foresight, expertise and skills to lead in a competitive private
sector environment. This continued lack of focus and leadership made it possible for the incident of
purchasing inferior quality of raw materials to happen as many of the managers in different
departments were getting indulgence in unfair and unethical practices. The results were calamitous for
the firm as it had to recall one of its core products owing to malfunctioning due to poor quality of
materials used. In respect of the system within the organization it can be observed that the
organizational change that was proposed could not be successfully achieved so far owing to the faulty
functioning of the top and middle management of the organization. There were plans being made
without proper framework and capacity of execution. In the domain of skills it can be said that the
organization has the required skilled workforce to achieve the targets set as new change management
process however there is lack of leadership and management from the top management personnel like
the CEO who has not proved his worth at the helm of the hierarchy. Shared values are the core of the
business operations that ensure success in an organization but there was lack of sharing of common
values and interests among the managers and employees in different departments of the organization
that made way for ineffective decision-making, control and coordination. All these factors have
contributed in unison to make the new objectives and strategies seem far-fetched under the current
organizational situation.

Chapter 5: Conclusions:
This research suggests that the medical devices group in the test case has been suffering from lack of
effective leadership and decision-making owing to several factors. The prime reason of the leadership
ineffectiveness has been the background of the newly appointed CEO after the merger in 2014. His past
experience was in a government sector and after merger he has been awarded the position of the CEO.
This has led to various conflicts in leadership and decision-making owing to the big differences in the
organizational business motives and objectives between a private and public organization. The private
sector is more inclined towards the maximization of the profits and to achieve the competitive
advantages. It wants to achieve the success and measure it in terms of returns. It is also seen from the
analysis of the literature that the competition level in private sector is much higher. The employees of
the private sector needs to be motivated by both intrinsic and extrinsic elements and need to be
trained. The basic differences in the aims and objectives of the public and private sector make the
leadership needs different for these two sectors. The main objective of the public sector is to serve the
public with the desired deliverables. The leaders in private and public sector work with different
motivation and objectives. They are more likely to achieve the outcomes as determined pre-hand. They
do not put emphasis on the returns and profitability and towards the training development of the
employees. They also do not think much for the motivation of the employees. The competition is less
intense in public sector and hence the leaders handle the challenges differently. So the leaders from the
public sector might not understand the pattern of working in the private sector.
It is also true that there are basic five traits that are found in common among the leaders of both the
private and public sectors. The leaders representing both sectors are responsible for the proper
allocation of resources and coordination among them. They are responsible for the decision making
process. The leaders are also responsible for the delegation of the tasks and making the employees able
to complete the same. The leaders of every sector are responsible for the clear communication of the
objectives and goals of the business to every member of the organization. They apply their authority for
the good of the organizations and for the employees. They direct the employees towards the right path.
They instill confidence within the employees and they can accept the challenges and can make the
members of the organizations to handle the challenges accordingly. These are most common traits of
the leaders who are successful. But it is also true that there are differences in the behaviors and
conducts of the leaders and in their approaches when they work for either private or public sector.
The leaders behave differently as they are channelized by different organizational aims and objectives.
They are responsible for the productivity of the employees and most importantly they have the
responsibility of verifying the deliverables to be as per the expectations of the customers. The outcomes
of the organizations should be able to satisfy the needs and requirements of the customers. The
leadership approaches of the two sectors are different because of their aims and objectives. The private
sector is much responsive to the maximization of the profitability whereas the public sector is more
responsive towards serving the customers with right products and services. The quality of the
deliverables has to be highest in the market to survive the competition. The leaders have to be careful of
the fact that the competitive advantages can be achieved and to do so the deliverables have to be as per

the choice and expectations of the customers. If the customers are satisfied then the volume of sale will
be increased and that will contribute to the maximization of the profitability. The management of the
team and the entire operations of the organizations is another responsibility of the leaders (Goyette,
2016). The employees have to be provided with proper training and development so that they can put
their efforts towards the achievements of the targets of the organizations. The leaders can ensure the
required level of performance from the employees (Sohmen, 2013).
The leaders of the private sector are more interested in the achievements of the tasks. The private
sector leaders want the desired outcomes. On the other hand the public sector leaders are more
interested in building relationship with the members of the organizations and they focus less on work. It
can be harmful for the organizations as the work might not be as per the demands of the customers. The
public sector leaders are needed to get accustomed with the objectives and aims of the private sector
organizational culture and behavior. The leaders need to utilize their skills and qualities on the basis of
the situations. They need to apply their qualities for the best of the situations. They have to be
determined with the objectives of the organizations they are working for. They have to motivate the
employees for the good of the vision and mission of the business organizations. The most important
aspect is that the leaders have to understand the differences in the private and public sector. They have
to understand the basic points of differences and similarities. They have to understand the main
requirements of the business organizations. They have to decide for the right ways of keeping the
employees productive and to keep their performances as per the requirements of the business
enterprises. The private sector leaders are more oriented towards tasks and their members. They always
try balance between the tasks and members of the organizations. This has to be understood by the
leaders.
A leader coming from public sector might face some challenges in the private sector but those
challenges must be handled and managed with the qualities. The leaders are born with some of the
qualities that are inherent and some qualities they have to learn and develop. It has been observed
many times that the leaders of the public sector are more oriented towards their own tasks than that of
the other members of the organizations and they are much higher on establishing relation with the
people. It is important for a leader to balance between the achievements and tasks and the
achievements. They must think about the achievements of the business organizations more than their
own achievements. This can make them successful in true terms. The analytical quality of the leaders is
an important aspect to become successful and to help the organizations successful.
Looking at the prevailing situation in the organization and after a study of the several sources of
literature on various aspects of leadership and decision-making the following recommendations could
be offered to improve the current situation of the organization:
 In order to achieve the desired growth in revenue and market share, the CEO needs to develop
his foresight and other leadership skills. He needs to have the desire to learn and change his
thinking process and style of strategy formulation. He should take the help of other

management personnel and take suggestions and advices from them in order to cope up with
the changed demands of the private sector.
 For achieving overall cost reduction and increasing profitability, the CEO should first of all take
care of the unscrupulous activities and implement strong supervision and control so that no
unnecessary expenditures are incurred or there is no fraudulent misappropriation of funds by
any employee. The organization needs to be decentralized with each department having its own
power and authority like the marketing and sales department. This will enable more employee
empowerment and new innovative strategies could be formulated for achieving success in
dynamic business environment.
 Decrease in the cost of production will help to enhance the profitability and the opening up of
the new production facility should be postponed as of now as it will contribute to a large sum of
investment that in the current organizational context will further add to the misfortune. First of
all, the incident of the product recall should be dealt with by investing more behind research
and development such that the best quality of materials are procured ethically and used in
manufacturing of the products of the business group. Likewise, the planning of opening up new
sales branches in Indo-China markets should be deferred unless the company is able to
recuperate from the disaster of product recall and its profitability reaches a satisfactory level
along with prior reputation.
 The management should undertake more research and development before undertaking key
management strategies such as the appointment of new management personnel. The
backgrounds of such personnel should be effectively analysed so that they are the best choices
for the organization. As for example, it is better to appoint a management personnel from the
private sector for a private organization.

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