The impact of leadership styles on organizational effectiveness

Master's Thesis from the year 2011 in the subject Business economics - Business Management, Corporate Governance, grade: A, , course: Management Sciences, language: English, abstract: The purpose of the dissertation is to analyze the relationship between leadership styles and organizational effectiveness of IT firms in Karachi. After the survey sent in the IT firm in Karachi it has been come into notice that leadership style affects the effectiveness of IT organization.

Four different types of leaders are found which are listed as dictator, democratic, visionary and free rein leader. All these styles have an impact on organizational effectiveness.

Dictator and visionary styles influence positively, whereas others negatively. The visionary or transformational style yield most organizational effectiveness. So this is the best style to be used.

The different dimensions used to define organizational effectiveness in IT industry are employee morale, organizations competitive position, customer satisfaction, management satisfaction, ability to introduce organizational change, market share of the firm.

It is better to use transformational leadership style in most cases but sometimes autocratic style can also be used. Autocratic leadership style should be used when the employee is young/fresh in the industry. They actually need direct guidance and concrete explanation about task.