Leadership Styles and Organizational Effectiveness: A Comparative

Study of Public and Private Organizations

Introduction
Leadership styles have been studied for quite some time and several theories have been presented
regarding the same. Scholars and management experts differ as to what is the most appropriate
leadership style in order to run an organization smoothly. Various arguments have been put
forward defending one style over the rest owing to differences in internal and external factors
concerning the management of an organization. There also have been some key changes that have
occurred in the leadership styles since the start of the 21st century and the same have created an
impact on the evolution of leadership theories. This paper will aim to compare and contrast the
leadership styles in public and private organizations and establish a link between specific styles
and organizational effectiveness. The case in point will be Pakistani organizations whereby
primary research would be carried out to determine the leadership styles being followed and their
impact on the performance of the organization.

Leadership, in broad terms can be defined as approach and manner used to provide direction to the
organization, execute plans, and motivate people (Newstrom, Davis, 1993). In historical context,
Kurt Lewin was the one who carried out the first major study of leadership styles in 1939 (Lewin,
Lippit, White, 1939). As per empirical research and theories presented by various management
gurus, four distinct styles of leadership have been defined which are as follows:

Autocratic or Authoritarian: the leader is in a controlling position and orders employees what
task to perform and how to perform it without asking for theoir opinion or advice. This style is
often used when the leader himself has all the required information that is necessary to solve any
problem at hand, there is shortage of time and the staff is used to following instructions. Ethical
considerations such as the self-respect and sanctity of employees has to be kept in mind while
using this style of leadership in order to prevent any untoward incident of employee demotivation.

Democratic or Participative: In this style the leader provides the employees with an opportunity
to present their opinion in to enhance the decision ma (NWLink, 2019) (WiseToast, 2019) (S.,
2014)king process, but ultimately the final authority lies with the leader. This is generally used
when there is information sharing between the leader and followers and both contribute with their

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opinions. It is argued that this style of leadership results in effective management over the rest as
it allows the leader to make better decisions given the amount of information at hand and the
contribution by the team who will eventually bear the results of the decisions being taken.

Laissez-Faire or Delegative: In this style of leadership, authority to make decisions is delegated

to the subordinates by the leader, however, as the custodian of the organization the leader still
assumes responsibility for all decisions. This style comes into play in organizations where
employees are skilled and motivated and are enthusiastic about taking initiatives on their own
without much direction. They have the managerial capacity and know-how of what tasks need to
be carried out and the most appropriate approaches for carrying out those tasks.

Very often, an effective leadership style involves using a combination of all the above mentioned
approaches according to the situation, nature of employees and the dynamics of the forces involved
between the leader and followers. Major factors that guide regarding the most appropriate style to
be implemented include the time frame available for executing the decisions being undertaken,
level of trust and respect between the leader and employees, skillset and knowledge base of the
employees, type and nature of tasks in terms of structure.

Objectives and Significance

The objectives mainly include drawing a comparison between leadership styles in public and
private sector organizations and their impact on the organizational effectiveness. Specifically, the
paper will aim to:

1. Identify the dominant style(s) of leadership in public organizations.

2. Identify the dominant style(s) of leadership in private organizations.
3. Compare and contrast the leadership styles in public and private sector organizations.
4. Study the impact of the leadership styles on the organizational effectiveness in the public
and private sector.

The above mentioned objectives will provide the reader with an insight into the current leadership
styles being followed in the private and public arena in Pakistan and also help in understanding
the most optimal leadership approaches under various circumstances.

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Research Methodology
Research objectives would be finalized and chapter structure would be decided in the initial phase
of the project. Comprehensive literature review would follow in order to lay the foundation of the
topic being researched and make use of the secondary research available online through scholarly
journals. The design of the primary research study would be initiated whereby a thorough
questionnaire would be drafted and the quality of the questions would be scrutinized. Primary
research would be carried out from the chosen sample out of the population set. One of the prime
target sectors for carrying out the primary research is education whereby private and public
universities will be studied and data will be gathered from the relevant stakeholders through a
questionnaire. After the collection of responses, data would be analyzed through the use of
statistical tools including MS Excel and SPSS. The results would be studied for identifying the
major findings and the preparation of report will be done in light of the results achieved.

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Literature Review Shortlisted Journal Articles
The following articles have been shortlisted for review in the preliminary screening. All of these
relate to the study of leadership styles and their relevance with the organizational effectiveness.
Further, some of the following contain a comparison of private and public organizations in other
parts of the world and the findings can be extrapolated to study the local organizations in Pakistan.
Other relevant articles and published empirical findings will be added in the project at a later stage
if needed. All of the articles are related to the research study and will help in understanding the
dynamics of the current study, identifying the gaps, and providing possible options for future
research.

1. Marc Buelens, Herman Van den Broeck: “An Analysis of Differences in Work
Motivation between Public and Private Sector Organizations”
2. Lauren Pacek: “Fundamental Differences in Leadership in Public and Private
Organizations”.
3. Shalini Garg Shilpa Jain: “Mapping Leadership Styles of Public and Private Sector
Leaders Using Blake and Mouton Leadership Model”
4. Dr. Swapna Bhargavi & Ali Yaseen: “Leadership Styles and Organizational
Performance”.
5. May-Chiun Lo1, T. Ramayah and Hii Wei Min: “Leadership styles and organizational
commitment: a test on Malaysia manufacturing industry”.
6. Ebrahim Hasan Al Khajeh: “Impact of Leadership Styles on Organizational
Performance”.
7. Ali Iftikhar Choudhary, Syed Azeem Akhtar, Arshad Zaheer: “Impact of
Transformational and Servant Leadership on Organizational Performance: A
Comparative Analysis”.
8. Peris M. Koech & Prof. G.S Namusonge: “The Effect of Leadership Styles on
Organizational Performance at State Corporations in Kenya”.
9. Igbaekemen GO* and Odivwri JE: “Impact of Leadership Style on Organization
Performance: A Critical Literature Review”.
10. Emmanuel Ogbonna and Lloyd C. Harris: “Leadership style, organizational culture and
performance: empirical evidence from UK companies”.

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 11. Nanjundeswaraswamy T. S. and Swamy D. R.: “Leadership styles”.
12. Robert B. Kaiser, Bart Craig, Robert Hogan: “Leadership and the Fate of
Organizations”.
13. Megat Zuhairy, Hadijah Iberahim: “Leadership Styles and Organizational Performance
in Construction Industry in Malaysia”.
14. Fenwick Feng Jing, Gayle C. Avery: “Missing Links in Understanding the Relationship
between Leadership and Organizational Performance”.
15. Amal Zada Khan1, Nosheen Adnan: “Impact of Leadership Styles on Organizational
Performance”.

Bibliography
NWLink. (2019, May 20). Retrieved from http://www.nwlink.com/~donclark/leader/leadstl.html

S., N. T. (2014). Leadership Styles. Advances in Management.

Schiffman, L. G. (2015). Consumer Behavior. England: Pearson.

WiseToast. (2019, May 21). Retrieved from Wisetoast.com: wisetoast.com