Internationale Zeitschrift für Wirtschafts- und Managementwissenschaften

Effects of Leadership Style on Health Care Organizational Performance: A Survey of Selected Tertiary Care Hospital in Karachi, Pakistan

Abstract

Raza Khan, Adeel Bukhari and Zahid Ali Channar

Our study has explored the effects of leadership traits on organizational performance in hospitals and health care industry. The core objective of this study was to examine the effect of leadership traits and behavior on performance of hospitals. Transactional and transformational leadership traits were measured. Transformational leadership traits and performance/results measured relevantly in the study was leaders charisma, individual consideration and their inspirational motivation; extra effort, effectiveness, and satisfaction, in that order. Transactional leadership traits and performance/result variables were positive/contingent incentive or rewards and corrective actions/ management by exception; and effort, productivity and commitment/loyalty, correspondingly. In this study we adapt a survey questionnaire, and employed evaluative quantitative analysis method. Analysis was based on primary data generated through a planned Multifactor Leadership Questionnaire (MLQ) administered on participants. The answers to research questionnaire were scaled on likert’s scale and converted to quantitative data to enable segmentation of the data responses into the independent and dependent variables assumed on leadership traits and connected performance variables. The model which was used in the study was OLS linear regression model to estimate and evaluate the results. The result illustrates that although transformational leadership traits had positive effect on performance but it is insignificant while transactional leadership trait had an important constructive effect on organization and employees performance. The study also analyzed that transactional leadership trait was more suitable in inducing and enhancing performance in hospitals than transformational leadership style and, as a result, transactional leadership trait/behaviors is recommended for the health care organization/hospitals with integral policies and strategies for evolution to transformational leadership style as the hospitals matured, grew and developed.