How Leadership Behaviors Affect Organizational Performance in Pakistan

The purposes of this study are to analyze which leadership behavior is most closely related with organizational performances based on both leader’s and employee’s perceived; and to what extent leadership behaviors have impact on organizational performances in public and private organizations. Two questionnaires were developed to capture leaders’ behaviors and employees’ responses. Sample comprises of five hundred managers and five hundred employees of different private and public sector organizations of Pakistan. Correlation analysis and regression analysis are used to analyze relationship and effects of leadership behaviors with and on organizational performances. Results indicate that: firstly, all leadership behaviors are positively interrelated with leader is perceived and employee has perceived organizational performances. Secondly, only monitoring leadership behavior has significant positive impact on leader’s and employee’s perceived organizational performance based on individual analysis; whereas, innovative role modeling, support for innovation, recognition and monitoring leadership behaviors have significant positive impact on leader’s perceived and employee’s perceived organizational performances based on pooled analysis.