Organizational culture influenced by leadership styles: the case of private businesses in Kosovo

Abstract

The characteristics and importance of leadership styles to organizational change are of particular importance for the development of organizational culture. This study aims to test leadership styles and the impact of the correlation between leadership style and organizational culture on the level of employees’ readiness across a range of leadership outcome measures. This study provides empirical evidence for the impact of leadership styles on organizational culture and vice versa. A questionnaire was distributed to 450 employees in private organizations in Kosovo. The obtained results show that organizational culture was a significant predictor for both transactional and laissez-faire leadership styles. Based on the dimensions of organizational culture concerning Kosovar leadership styles (transformational, transactional, laissez-faire), their mutual influence dominates more on one variable and less on any other variable as a measuring mechanism for outputs and their interpretation. The study will help the organizations’ leadership understand that their leading style influences the organizational culture and, as such, the employees’ performance. In Kosovo, the concept of organizational culture concerning Kosovar leadership has not been properly developed, and measures should be taken by private businesses to settle this issue.

Keywords

• culture
• employees
• influence
• leadership
• organizations
• performance