African Journal of Hospitality, Tourism and Leisure (Jan 2020)
Decision making, leadership styles and leadership effectiveness: An amos-sem approach
Abstract
Saudi Arabia is going to change its economy operations represented in the vision 2030 of Saudi Arabia. All sectors are contributing significantly in achieving Saudi Vision 2030. To identify the critical areas and challenges faced by leaders address in achieving vision 2030 of Saudi Arabia is an important task. People of Saudi Arabia are very ambitious to achieve the Vision 2030. The Saudi Government is encouraging its citizens with different benefits to get higher education so that they shall be able to run different organizations in the near future. For this purpose many organizations are playing a significant role in developing leadership skills in their workforce so that they become a more productive workforce in future. How to enhance the leader’s effectiveness i.e. aims, followers and groups, and how effective decision making is an important tool to bring change is used by leaders to solve problems in organizations. A cross sectional study design was adopted. Structured closed ended questionnaires were distributed to collect the data. It was found that there was no issue of CMB and non-response bias. Also CFA results validated the instruments from a Saudi perspective. Relationships between leadership styles, (Full Range Leadership Theory) leadership effectiveness and decision making was found to be significant. Also, regressions results indicated that decision making moderated the relationship between leadership styles and leadership effectiveness. Decision making is an important tool used by leaders in organizations to bring significant results and leaders of organizations can use it to achieve vision 2030 for Saudi Arabia. This study is valuable and is a primary study conducted on leadership issues and challenges faced by Saudi organizations for achieving vision 2030. All the organizations in Saudi Arabia can benefit from the findings of this study as all leaders in all organizations are making critical decisions and need to know how to enhance their effectiveness in organizations so that their plans can be successfully implemented. The results show that transformational leadership is considered to be a very effective style for leaders to adopt.
