Leadership and Organizational Performance

The goal of any organization is not only to survive, but also to sustain its existence by
improving performance. In order to meet the needs of the highly competitive markets,
organizations must continually increase performance (Arslan & Staub 2013). Prior
literature suggests that role of leadership is critically important for achieving the
performance of organizations (e.g. Boal & Hooijberg 2000; Peterson, Smith, Martorana
& Owens 2003). However, the findings of prior studies about the role of leadership in
increasing organizational performance are mixed. Some studies (e.g. Finkelstein &
Hambrick, 1996; Katz & Kahn, 1978; Peterson, Smith, Martorana, & Owens 2003)
suggest that the role of leadership is critically important for an organization to achieve a
high level of performance. However, some other studies (e.g. Pfeffer 1977; Meindl,
Ehrlich & Dukerich 1985) suggest that role of leadership is not so important in achieving
the organizational performance. Therefore, these contradictory findings about the role of
leadership in organizational performance suggest that there is more need to study the
role of leadership in organizational performance. Especially, Wang Tsuil, and Xin 2011
suggest that there is need to study more the role of leadership in organizational
performance because of the limited but contradictory results from previous studies.
Further, much of prior research has focused on the role of leadership in the next of
restaurants (e.g. Vanderslice 1988), and education institutes (Bensimon 1989;
Birnbaum 1990; Neuman 1992; Youngs & King 2002; Weinberg & McDemott 2002).
Therefore, there is a limited understanding about the role of leadership on
organizational performance in the context of customer service sector. Customer service
sector is getting more and more importance in recent years as firms are directing their
attention towards proving quality of service to their customers along with manufacturing.
Therefore, the motivation of present study is to investigate the impact of leadership
behavior on organizational performance in the context of customer service sector.
Different interviews of the regional officers of banks. Telecommunication company,
pharmaceutical company and manufacturing company were recorded and then they
interpreted for the relevant results.