A Study of Leadership Styles and Their Impact on Organisational Performance in the Service Sector

Abstract

The leadership style (LS) is crucial for the success of an organisation and is positively correlated with organisational performance (OP). The objective of this study is to examine the current levels of LS and their influence on OP, while also considering the moderating effect of age on the relationship between LS and OP. A purposive random sampling technique was used to select a sample size of 532 employees working in the Telecom sector. The study employed exploratory research methods, descriptive statistics, and statistical tools for data analysis. Exploratory factor analysis, confirmatory factor analysis, and Wilcoxon signed rank test were conducted using AMOS 22.0 and SPSS 23.0. The study found that the transformational leadership style is the most used in-service industries. Additionally, it was observed that this leadership style has a positive effect on organisational performance. The performance of an organisation is positively correlated with LS, particularly for transformational and transactional leaders. The results indicate that age does not moderate the relationship between LS and OP. The additional novel findings were also discussed in the research.