The Influence of Leadership Styles on Organizational Performance: An In-depth Review of Existing Literature
Zarina(a*), Dr. Ahmad Rizki Sridadi(b). Ajlal Haider(c), Dr. Nasir Ahmad Zargar(d)

Department of Management, Faculty of Economics and Business, Airlangga University, Indonesia

Abstract

This literature study analyzes different leadership styles, including transformational, transactional, situational, and participative, and their effects on organizational outcomes. The study consolidates evidence from various sources to comprehend the impact of these leadership styles on crucial organizational performance domains. Transformational leadership is renowned for its capacity to inspire and drive individuals to surpass expectations, especially in dynamic circumstances that need innovation. Transactional leadership is known for its efficacy in ensuring consistency and adherence, while it may have limitations in fostering creativity. Situational leadership is commended for its capacity to adjust to changing conditions, whereas participative leadership encourages staff engagement, resulting in increased job satisfaction and innovation. The review highlights that the efficacy of each leadership style is contingent upon the company setting, culture, and specific issues encountered. In the end, effective leaders are those who can assess and modify their leadership style to address the changing requirements of their business.
Keywords: Leadership Styles, Transformational Leadership, Transactional Leadership, Situational Leadership, Participative Leadership, Organizational Culture

Keywords: Leadership Styles, Transformational Leadership, Transactional Leadership, Situational Leadership, Participative Leadership, Organizational performance

Topic: Human resources management