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Study area and title

Human resources: Impact of leadership on organization performance  

Problem statement

The aim of this research is to indicate the relationship of leadership styles and organization performance through study of leadership patterns in Telstra

“How leadership styles (transformational and transactional) affect the levels of efficiency and performance in Telstra" - this can be assessed based on variables like leadership style improved and its impact on motivation, organization commitment and overall organization performance (Piccolo, R. F., & Colquitt, J. A., 2006).

Research question

How does the role of moderator or manager (power distance) affect the relationship between leadership and organization commitment?

Literature analysis

Leadership is an extremely important attribute that the present day managers and organizations require. Leaders possess certain special traits which helps them win the admiration and adoration of others. People look up to them as better people and also are motivated to be like them (Muchinsky, P. M.,, 2015).

 Leadership styles do affect organization performance in many ways and so it is very important that there be clear understanding of what elements or traits of each style of leadership results in positive or negative impact (Pieterse, A. N., Van Knippenberg, D., Schippers, M., & Stam, D., 2010). At the same time, it is crucial to consider the relationship between the work environment, the country or culture in which the leaderships style is set up and how it impacts performance (Dessler, Cole Goodman & Sutherland, 2018).
Leadership is thus a trait that helps obtain support for accomplishment of a common goal. Leadership not only motivates people, it also directs people and facilitates the performance of activities required to achieve the common goal and though several other elements change, the basics of leadership remain (Sivanathan, N., Pillutla, M. M., & Murnighan, J. K., 2018). It is crucial to consider how the leadership style can impact organization performance and employee motivation as well as satisfaction levels (Mowday, R. T., Porter, L. W., & Steers, R. M, 2013).

Leadership is formed through attributes and consists of several elements which are formed based on organizational requirement. A single form of leadership may not suit all  situations in the organization and so using aligned and customized leadership techniques is also important in present day business environments which are extremely complex, challenging and competitive. It is crucial to establish better levels of focus on furnishing an organization with leaders who understand organization objectives and can help in building better growth for the organization (Ostroff, C, 2016).

The advantages and disadvantages of leadership depend on the leadership style that is used with the employees in an organization. For example, advocates of directive leadership argue that this style can help to attain challenging goals and achieve high performance rates. In comparison, proponents of participative leadership argue that employees should seek for new challenges and opportunities and learn through acquiring knowledge (Meyer, J. P., & Parfyonova, N. M, 2010).  


A mix of quantitative and qualitative research methods is required for this study. Quantitative methods of research help establish correlation trends and identify how and to what extent do leadership styles impact  motivation, organization commitment and overall organization performance (Hunger, J. D., & Wheelen, T. L, 2017).

Qualitative research is required to understand the impact of leadership styles on variables like motivation and commitment through an overall sense of positivity or negativity. Literature review assists in understanding these elements with greater ease. It also helps focus on building clearer understanding of which of the traits of different leadership styles is responsible for these impact (Muchinsky, P. M., 2015).

Secondary data resources and data

Secondary data has been collected from academic journals. There are essential elements and the leadership styles can be used to create effective levels of business operations. It assists the organization to take futuristic decisions and helps in implementation of the firms’ long term plans or strategies. In this way leadership has also developed into various stages.  Data has been collected with regard to multiple variables like production, motivation and organization commitment levels which enable understand overall organization performance (Griffin R.W., Moorhead G., 2015).


Dessler, Cole Goodman & Sutherland (2018), Management of Human Resources, Sutherland- Second Canadian edition

Griffin R.W., Moorhead G. (2015), Organizational Behaviour: Managing People and Organizations, USA, Routledge


Hunger, J. D., & Wheelen, T. L. (2017), Essentials of strategic management. (4th ed.) Upper Saddle River, NJ: Pearson Education


Meyer, J. P., & Parfyonova, N. M. (2010). Normative commitment in the workplace: A theoretical analysis and re-conceptualization. Human Resource Management Review, 20(4), 283–294.


Mowday, R. T., Porter, L. W., & Steers, R. M. (2013). Employee—organization linkages: The psychology of commitment, absenteeism, and turnover. Academic Press


Muchinsky, P. M., (2015), Psychology Applied to Work: an Introduction to Industrial and Organizational Psychology, Thomson Wadsworth, Belmont, California, United States of America.


Ostroff, C. (2016), ‘The Relationship Between Satisfaction, Attitudes, and Performance: An Organizational Level Analysis’, Psychological Bulletin by the American Psychological Association, 7 (6), 963-974.


Piccolo, R. F., & Colquitt, J. A. (2006). Transformational leadership and job behaviors: The mediating role of core job characteristics. Academy of Management Journal, 49(2), 327– 340.


Pieterse, A. N., Van Knippenberg, D., Schippers, M., & Stam, D. (2010). Transformational and transactional leadership and innovative behavior: The moderating role of psychological empowerment. Journal of Organizational Behavior, 31(4), 609–623.

Sivanathan, N., Pillutla, M. M., & Murnighan, J. K. (2018). Power gained, power lost. Organizational Behavior and Human Decision Processes, 105(2), 135–146.


250 words

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