Moderating Role of Decision-Making Situations between Leadership and Decision-Making in Services Providing Organizations

Abstract

The present research investigated moderating role of decision-making situations between leadership styles and decision-making styles in services providing organizations of Pakistan. The study was based on Full Range Leadership Theory of Bass and Reggio (2006) which comprise of three leadership styles including transformational, transactional, and laissez faire style. The study incorporated five decision-making styles including rational, intuitive, dependent, avoidant, and spontaneous style. The study comprised of three decision-making situations including certainty, risk and uncertainty. Multifactor Leadership Questionnaire, Decision Situations Scale and General Decision-making Styles Questionnaire were administered on 1200 employees. Hierarchical regression analysis revealed that certainty moderated between transformational style and rational style. Uncertainty moderated between transformational style and spontaneous style. Certainty moderated between transactional leadership and rational style. Uncertainty moderated between laissez faire and dependent, avoidant decision-making style. Overall, the present study contributes to style, situational and contingency theories of leadership. Keywords: Decision-Making Situations, Leadership Styles, Decision-Making Styles.