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

Alma Shehu Lokaj,Thelleza Latifi Sadrija

doi:10.21511/ppm.18(3).2020.25

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.

Highlights

Leadership and organizational culture are considered the two most important elements for businesses that claim success and gain a competitive advantage in the market.Leadership and its influence play an important role in economic development, and Kosovo, as a country in transition, Kosovo is facing unprepared leadership and difficulties in finding a successful concrete business model
In Kosovo, very little or no research is devoted to culture and leadership styles and the connections that these together have in the business performance
Research question 3: Is the organizational cul- show that organizational culture can be a factor ture an important predictor for leadership style in little known by private-sector employees

Summary

INTRODUCTION

Leadership and organizational culture are considered the two most important elements for businesses that claim success and gain a competitive advantage in the market. This paper aims to raise awareness of private business leaders in Kosovo on the importance of organizational culture, and in our case, influenced by leadership styles. The study aims to identify the relationships between leadership style and organizational culture in private businesses in Kosovo. By focusing on the three leadership styles and their function in private businesses, expectations Many authors think that the laissez-faire style will be important based on the role of each type negatively influences organizational culture and of leadership as the transformer that drives the or- performance, assuming that laissez-faire style exganization to success by profoundly influencing hibits frequent absence and lack of involvement followers’ beliefs about how to be an organization during critical junctures (Eagly & Schmidt, 2003). Organizational culture is “Culture is a pattern of shared tacit assumptions that was learned by a group as it solved its problems of external adapta-

RESEARCH METHODOLOGY

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CONCLUSION