Organizational Behavior: Impact of Leadership on Organizational Sustainability

The case study analyzed the organizational changes and leadership styles before and after a merger. The 7-S Model, PESTLE Analysis, and SWOT Analysis were used to identify internal and external factors affecting the organization's operations. Leadership theories such as Transactional, Transformational, Behavioural, Contingency, Trait, and Great Man Theory were reviewed to understand their impact on strategic outcomes and sustainability. Personality traits of managers were assessed using the O.C.E.A.N Big Five Personality Model. The data collection process involved gathering information from the company about its performance before and after the merger. Data analysis methods included secondary research analysis and case analysis to determine the strategic decision-making process of managers and leadership quality of the new CEO.

Organizational behavior
Masters Dissertation
RKC, March 2018
Student ID number: 1550809
Module name: Intro, Chapters 1-3 - DRAFT
Assignment title: Masters Dissertation
Assignment deadline:
Effective number of words used:

Contents
Chapter 1: Introduction:..............................................................................................................................3
Background of the Organization:.............................................................................................................4
Background of Research Topic:...............................................................................................................5
Thesis Statement:....................................................................................................................................7
Research Aims and Objectives:....................................................................................................................7
Research Objectives:...............................................................................................................................7
Research Questions:................................................................................................................................7
Scope of Research:..................................................................................................................................8
Limitations of Research:..........................................................................................................................8
Chapter 2: Literature Review:....................................................................................................................10
Styles of leadership:..............................................................................................................................10
The Public vs. Private sector leader:......................................................................................................11
Theories on leadership:.........................................................................................................................13
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
Results:......................................................................................................................................................21
Conclusions:..............................................................................................................................................21
Bibliography:.............................................................................................................................................21
Introduction:...............................................................................................................................................3
Background of the Organization:.............................................................................................................4
Background of Research Topic:...............................................................................................................5
Thesis Statement:....................................................................................................................................6
Chapter 1: Aims and Objectives:..................................................................................................................7

Research Objectives:...............................................................................................................................7
Research Questions:................................................................................................................................7
Scope of Research:..................................................................................................................................8
Limitations of Research:..........................................................................................................................8
Chapter 2: Literature Review:......................................................................................................................9
Styles of leadership:................................................................................................................................9
The Public vs. Private sector leader:......................................................................................................10
Theories on leadership:.........................................................................................................................12
Summary:..............................................................................................................................................17
Chapter 3: Methodology:..........................................................................................................................18
Data Collection Methods:......................................................................................................................18
Data Analysis Methods:.........................................................................................................................18
Results:......................................................................................................................................................20
Conclusions:..............................................................................................................................................20
Bibliography:.............................................................................................................................................20
Chapter 1: Introduction:
The researcher studies the impact of leadership and prudent 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.
On analysis of the leadership situations tThe research questions were developed to address
leadership.for this particular research. They are divided into the Primary and the Secondary Research
Questions.
Contained in this report are tThe findings from a research study that has been undertaken on the
topicfocuses on of leadership, decision-making, and their impacts on sustainability of an organization.
The research attempts has endeavoured to discoveretermine 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 has 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.
This decision to appoint a new CEO was later on speculated to be non-effective and counter-productive
for the organization. This was because tThe current CEO belonged to a governmental organization that

was a part of the non-profit seeking sector of the industry. Naturally, heThe individual lacked the
managerial leadership and decision-making skills required in a much competitive private sector.
Moreover, the CEOhe was not a person from the medical background and therefore it was quite obvious
that he would not be able to provide an impactful and goal-oriented leadership in this newly formed
organization. because tThe leadership skills nurtured and developed in the public-sector are quite
different than those needed to direct a private sector organization that iswhich has much more
competitive, dynamic, and has a totally different work culture. PriorThe researches haves 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 test researchcase.
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 has delved addressesinto various concepts of leadership, organizational decision-making
and organizational sustainability. The researcher attemptedIt has tried to establish a link between the
management leadership, its impact on decision-making, and the organizational sustainability. This
chapterpart of the research discusses all those reviews the concepts in details.
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 be of vary byious types 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., which we willThe researcher elaborates
on 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 fromis because
there are 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). Whereas, iIn the case of the public-sector organizations, the main business motive is to offer
various products and services for the benefit of the public. and pProfitability 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 those are 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. So, hHandling 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. and tThe others have to be undertakenmust
be addressed by the managers on a regular basis in their respective departments within the enterprise.
This decision-making process needs to be doneundertaken 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. Therefore, mManagerial leaders should play the role
of sustainable leaders. It refers to the managerial decision-making and strategies those are 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.”

Chapter 1: 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 iswill be the best-suited structure for the company to ensure that it regains the lost
stability?
 What should beare the effective strategies that it neededs to undertake to ensure growth and
sustainability?

 What should beare 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. those needed to be considered such that in fFuture research shold
addressworks these issues that might be resolved in a better manner. As fFor example, one of the prime
disadvantages of the research limitation was the absence lack of existing adequate literature sources on
the private sector enterprises those are 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. Apart from this there are
not many cases those are similar to this one due to which it was difficult to understand the similar
outcomes of such a case. Apart from these there were no further limitations for the said research. The
research amidst these limitations has the opportunity of exploring something new that has not yet been
successfully and satisfactorily explored with conclusive results. So, it is prudent to consider this research
study as an effort to collect valid information on the research topic such that future researches can be
undertaken to explore the topic in more details and with the hope that more researches are undertaken
on this extremely important but less explored topic.

Chapter 2: Literature Review:
The researcher scoured existing literature for authentic and reliable information that served as a
foundation for the study. that can be gathered for the research to unfold The literature review helped
and for the purpose of analyzsing 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, some theories
on leadership and other domains those ensure organizational growth and sustainability.
Styles of leadership:
In the opinion of Khan and Khandaker (2016) suggest that, the leadership styles are important aspects
for any business organizations. They differ according to the organizations. The lLeadership 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, the 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).
According to 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. So the lLeadership 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:
According to 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 relationsrelationship management. The managers
of the public-sector are influenced and motivated by the power. and they are intuitive in making
decisions. 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).
In the opinion of Hansen and Villadsen (2010) explain that, the public-sector leaders and managers use
more participative leadership styles. On the other hand,while the private sector leaders are more
inclined towards the directive leadership styles. As per the traditional approaches the leadership styles
depend on the characteristics of the leaders, managers, employees and the job profiles of the
employees. 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).
In the words of Demeter and Țapardel (2013) conducted , thea study has been conducted on the
leadership of the private and public sectors. The management of and these two sectors is 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)(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. TheyPublic-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).
According to Michael (2016) found that, the public-sector business leaders follow the directive style of
leadership. But iIn reality, it is seen that this style of leadership style is less effectivepoor inat 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). Furthermore iIt 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).
According to Kimberling (2015) identifies the , it is importantance 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:
According to 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. ButHowever, 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).
In the view of Spahr (2015), describes transformational leadership asis 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.
On the other hand 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).
According to Cherry (2017) explains, the trait theory of leadership ais 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).

In the opinion of Kanodia and Sacher (2016), theexplain 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. The eEffective 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).
According to Yahaya et al (2012) identify , there are prominentfive (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 much 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).
In the opinion of Derue et al (2011), describes the Behavioral Theory of leadership as dealings 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.
Furthermore, tThe theory highlights that there are 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).
As per the views of Gupta (2009) identifies, the contingency theory of leadership ais 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.
Moreover, tThe 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).
According to Jorge, Coelho, Paraizo and Paciornik (2014), identify the leadership ias 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.

Chapter 3: Methodology:
The research methodology that was implemented for this particular research was the secondary data
analysis that were collected through the process of review and comparative analysis of various sources
of literature Invalid source specified.. Along with it a test case analysis was also used was also
undertaken in order 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 those are available over 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.
Results:
Conclusions:
Bibliography: