Effects of Leadership styles on Organizational commitment in Public and Private sectors of Pakistan
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The aim of this thesis is to depict the relationship of leadership styles and organizational commitment in the Pakistani context. In this thesis, exploration of these variables and their effects has been presented. The concept of the whole thesis, the background, and significance of the study is discussed in the first chapter. The problem statement is explained along with the research questions. A brief illustration of the dependent and independent variables is presented. Illustration of all the theories has linked to the thesis. As transformational and transaction leadership is taken in connection with commitment factors, so the description of power distance and motivation for employees is also presented. Transformation leadership is positively linked with motivation whereas, in the transactional approach more power distance is observed. How power distance is associated to these leadership styles and to what extent is it affecting employees commitment is discussed in this thesis. The main aim of the study is to analyze the hypothesis and for that reason a theory is presented to make readers understand the concepts. The research design is explained in detail along with population and sample size. Then idea of the questionnaire development is discussed and that how the interpretation is done. The analysis of data collection is explained with detail with all the frequencies of the demographic details of the respondents. A frequency distribution shows the complete level of respondents’ participation and their respective ages, degrees, departments and gender. The results of regression analysis are correlated with the theories. These results are showing the reliability of hypothesis and that if they are right or wrong. vi From this study, it is concluded that Pakistan is following a high power distance culture in both public and private sectors. Employees in different organizations are bound to work because there are less available alternatives for them. They are not allowed to disclose the insights of their company and management. Employees want to have international standards of management practices and employee empowerment. It is found that transformational leadership is playing a positive role in Pakistani companies and employees in those organizations where leaders are transformational seem to be more satisfied with their jobs than those of transactional leadership. Power distance and motivation is playing an important role in motivating and demotivating people. It was also noticed that people of Pakistan rely more on materialistic rewards than on verbal motivations and this factor shows the overall economic conditions of Pakistan. Because people are not able to meet the basic living expenses if they stop relying on bonuses and appraisals. Therefore, a strong correlation between contingent rewards and performance has been observed. Key words: Transformational leadership, Transactional leadership, Affective commitment, continuance commitment, normative commitment, power distance, Motivation, Public sector, Private sector, Regression, Pakistan, Survey.
Master thesis Business Administration- University of Agder, 2015