The Effect of Leadership Styles on Follower Performances and Organizational Outcomes

Abstract

This study is to find out the effect of leadership styles on the organizational outcomes and the mediating role of person-organization values fit. Four main objectives of this study include (1) to determine the effect of leadership styles on the outcomes of the organization, (2) to investigate the relationship between leadership styles and person-organization values fit, (3) to determine the effect of person-organization values fit on the organizational outcomes and (4) to understand the mediating effect of person-organization values fit on the relationship between leadership styles and organizational outcomes. The model was to test empirically on 179 respondents collected from managers and staff members in different companies in Cambodia. From MLQ questionnaire, transformational leadership and transactional leadership were tested to explore the relationship with organizational outcomes and person-organization values fit. At the same time, person-organization values fit was also tested to observe the impacts on outcomes and its mediating effect between leadership styles and organizational outcomes. Based on canonical finding and block regression analyses, the results show that both transformational leadership and transactional contingent reward leadership have positively significant effect on extra effort to work, satisfaction with leader and organizational commitment, which mediated by person-organization values fit. The finding also provided evidence that the relationship between leadership styles—transformational leadership and transactional contingent reward leadership—and person-organization values fit is significant. Furthermore, the analyses also show the significant effect of person-organization value on organizational outcomes. Limitation and directions for leadership research were and contribution of this research was also provided.