The Effect Of Leadership Style On Organizational Performance In Oman

The Effect of Leadership Style on Organizational Performance in Oman

Sara Abdullah Al Mukhaini¹ , Shim Mohammed Al Uraimi² , Thuraiya Said Al Farsi³

^1,2Student at Oman College of Management and Technology- Department of Administrative and Financial Sciences

³Lecturer at Oman College of Management and Technology- Department of Administrative and Financial Sciences

DOI: https://dx.doi.org/10.47772/IJRISS.2025.9010075

Received: 19 December 2024; Accepted: 30 December 2024; Published: 01 February 2025

ABSTRACT

This study examines how different leadership philosophies affect the success of organizations in Oman, with a particular emphasis on servant, transformational, and transactional leadership. A productive workplace and the accomplishment of strategic goals depend on competent leadership in a time of swift economic change and intense competition. According to the research, good leadership is essential for raising employee engagement, motivation, and productivity—all of which are key for the success of any firm. This study demonstrates that transformational leadership strongly contributes to increased employee happiness and creativity, which in turn leads to improved organizational results, through a thorough literature evaluation and analysis of two case studies: Oman Air and Dhofar Automotive. Transformational leaders foster an atmosphere that encourages innovation and teamwork by inspiring and motivating their groups. The inventiveness and long-term dedication of employees may be restricted by transactional leadership, notwithstanding its effectiveness in preserving operational efficiency through defined procedures and unambiguous expectations. The results highlight the need for Omani firms to implement leadership philosophies that not only satisfy short-term performance goals but also encourage creativity and worker empowerment. The difficulties Omani organizations encounter in putting into practice good leadership techniques are also identified by this study, especially when it comes to opposition to change and the requirement for conformity to traditional values. Additionally, by offering actual data on the connection between organizational performance and leadership styles in the Omani setting, this study adds to the body of information already in existence. It gives leaders of organizations useful advice on how to strengthen their leadership styles, raise employee engagement, and eventually propel their organizations to success. The goal of this research is to provide leaders the knowledge they need to successfully negotiate the intricacies of contemporary business settings and accomplish sustainable growth by comprehending the dynamics of leadership in connection to organizational performance.

Keywords: Leadership styles, Organizational Performance, Leadership Development Programs, Communication Channels, Employee Wellbeing.

INTRODUCTION

Introduction

To be able to create a unified vision and mission while defining specific goals, the leadership position in companies has become more and more important. Effective leadership includes the crucial responsibility of managing and organizing organizational operations in addition to the strategic creation of policies and procedures to accomplish these goals (Miller & Roberts, 2021). Navigating the intricacies of the contemporary corporate world requires excellent leadership, especially when faced with obstacles and changes that happen quickly (Thompson et al., 2023).

Many firms deal with problems including low employee morale, excessive staff turnover, and subpar financial performance in the ever-changing business environment of today. These difficulties frequently result from poor leadership techniques, highlighting the need for capable leaders who can uplift and encourage their groups (Garcia, 2022). Even while leadership is acknowledged to be important, many companies fail to consider the influence of the many leadership philosophies that managers have chosen.

This study focuses on leadership styles such transformational, transactional, autocratic, democratic, charismatic, and bureaucratic leadership in order to examine the link between these types and organizational performance. Because of their extensive use in businesses around the world, these leadership philosophies have been chosen, and an awareness of their impact can result in better procedures and increased organizational performance.

This study’s main goal is to evaluate the impact of various leadership philosophies on organizational performance. In order to do so, a hypothesis has been developed to investigate how different leadership philosophies—autocratic, democratic, transactional, transformational, charismatic, and bureaucratic—affect the overall efficacy of an organization. The research aims to provide important insights into how leadership propels organizational success in the modern world by looking at these processes.

Problem statement

To increase workplace efficiency, leadership organizations try to adopt a variety of styles. One of the biggest obstacles to implementing a leadership style in Omani organizations, especially Omani businesses, is resistance to change. Therefore, employee resistance to change might impede the process of employee empowerment, performance, and progress.

Objectives of the study   

• Determine how leadership style can affects the company’s performance and employees in terms of organizational culture, employee motivation, and increased innovation.
• Enhancing better performance metrics, including increased productivity, higher employee retention rates, and improved customer satisfaction.
• Evaluating the role of leadership in improving the communication and collaboration, increasing motivation for innovation and also improving employee retention overall.

Research question

1. what is the  current status of leadership style effect on the organizational performance in Oman?
2. What role does servant leadership play in fostering a positive organizational culture and its subsequent effect on overall performance metrics?
3. How does being a supportive leader help improve a company’s culture and performance?

Significant contribution

Creating a productive workplace, raising employee satisfaction, and ultimately increasing organizational success all depend on an awareness of how leadership styles affect organizational performance in Oman. In addition to supporting firms, this study advances the conversation on leadership in diverse and changing economies.

Scope of the study 

This study’s scope includes investigating how leadership styles impact employees’ performance and productivity in the workplace as well as their influence in an organization’s success. the study targeting Oman’s companies The purpose of this study is to learn how employees see leadership philosophies and how it influences their performance at work.

Theoretical framework

This study’s theoretical framework is focused on comprehending how various leadership philosophies affect Oman’s organizational performance. Key factors are identified, pertinent ideas are defined, and theories that clarify the connection between organizational results and leadership are presented in this framework.

Variables 

Independent variable: Leadership style , while the leadership styles has many dimensions that will take in consideration the following sub variables: Leadership Development Programs, Communication Channels, Employees well being and adapt leadership style.

Dependent variable: Organizational performance

Definitions

Leadership style :

1. Transformational leadership : defined as a leadership style that encourages and inspires followers to accomplish remarkable results while also growing as a leader (Northouse, 2021). Transformational leaders cultivate an atmosphere of confidence, support, and creativity.
2. Transactional leadership : This approach emphasizes interactions between leaders and followers, using rewards and penalties to compel conformity (Bass, 1985). In order to preserve organizational stability, it places a strong emphasis on defined duties and expectations.
3. Servant leadership : According to Greenleaf (1977), servant leadership is defined by a leader’s emphasis on serving others, giving employees’ needs top priority, and assisting them in reaching their maximum potential. This approach places a strong emphasis on teamwork and moral conduct.

Leadership Development Programs

Based on ten thousand coffee teams, defined the leadership development programs in their article as: The process of improving and make the leadership better in future to gain the well effective leaders, that can be acquire the skills by the more training and development programs. (Ten thousand teams, 2024)

Communication Channels

Any platform that allows us to send and receive information for personal or business purposes. This can be done in the traditional way or by technological use. (Rohan & Jayadeep, 2024).

Employee Well Being

Employee well-being means the employees mental and physical health in their workplace. It includes job satisfaction, stress in their workplace, work life balance etc. Hannah Wren, 2024.

Adopt Leadership Styles

The strategic approach should be followed to have effective leadership: like enhancing communication, collaboration and sense of unity. (Nahla Davias, 2024).

Organization Performance

According to Richard et al. (2009), organizational performance is the efficiency with which a company achieves its goals, such as innovation, employee happiness, and financial success. It is a complex concept that includes a range of variables, including profitability, productivity, and employee engagement.

Theories of leadership style

Transformational Leadership Theory: According to this idea, transformational leaders inspire their followers and organizations to put the organization or a bigger cause ahead of their own interests, which results in major change (Bass & Riggio, 2006). Higher levels of work satisfaction and staff motivation are associated with transformational leadership.

Transactional Leadership Theory: According to this notion, transactional leaders prioritize performance, organization, and supervision. Both rewards and penalties are used to encourage conformity, which may result in short-term organizational success but may not encourage long-term dedication (Burns, 1978).

Servant Leadership Theory: The progress and well-being of individuals and the communities they belong to are given priority by the servant leadership paradigm, which places an emphasis on the leader’s duty as a servant first (Greenleaf, 1977). Increased corporate commitment and staff engagement are linked to this strategy.

Research importance

Organizations seeking to increase their effectiveness and competitiveness in a more complicated business environment can benefit greatly from an awareness of how various leadership philosophies affect organizational performance. Organizations may customize their leadership development programs to promote the most successful practices by determining which leadership philosophies provide the best results in different situations. This will increase employee motivation, engagement, and productivity.

Additionally, this study can provide light on the connection between leadership and worker happiness, which is important for lowering attrition and creating a pleasant work environment. Higher staff commitment and morale can result from effective leadership, which has a direct effect on organizational performance indicators including profitability, customer satisfaction, and innovation.

Furthermore, by offering empirical data that might support theoretical theories of leadership effectiveness, this study advances the subject of organizational behavior in general. It also promotes a more thorough analysis of how organizational culture, structure, and strategy interact with leadership style.

Investigating how leadership style affects organizational performance is essential for improving organizational efficacy as well as for expanding our knowledge of leadership dynamics in modern contexts. In the end, our study gives CEOs the information and resources they need to propel their companies to success.

BACKGROUND, EXISTING WORK & LITERATURE REVIEW

Introduction

Since leadership style is crucial to accomplishing strategic objectives and promoting sustainable development, it has a significant effect on an organization’s success in the Sultanate of Oman. The Sultanate’s organizations are distinguished by their desire to implement leadership philosophies that blend traditional Omani values, such Shura and cooperation, with contemporary leadership techniques that boost productivity and creative problem-solving. Leadership style is crucial in establishing a healthy work atmosphere, inspiring people, and forming corporate culture in the Omani context. The Sultanate of Oman’s leaders employ a strategy that promotes open communication and empowerment in order to foster innovation and strengthen institutional loyalty. Achieving Oman Vision 2040 and overcoming obstacles related to economic shifts and development requirements are made easier by effective leadership. Leadership plays a crucial role in the success of organizations in the Sultanate by combining Omani customs with a forward-thinking outlook. This results in improved organizational performance, increased competitiveness, and operational sustainability. The way companies in the Sultanate of Oman evolve and react to the possibilities and challenges in their environment is a clear indication of the influence that leadership style has on them. In the Omani setting, effective leadership is defined by the capacity to balance traditional cultural values with contemporary institutional management needs. In keeping with the Sultanate’s goal to improve human capital, institutional leadership in the Sultanate of Oman places a high value on employee empowerment and skill development via ongoing training and education. The stability of the company is positively impacted by leadership styles that emphasize inspiration and motivation since they increase worker productivity, job happiness, and decrease attrition. The Sultanate’s institutional leadership style is also crucial for encouraging innovation and adjusting to changes in the world economy. Organizations aim to implement leadership approaches that promote economic diversification and boost competitiveness by streamlining operations and increasing efficiency in light of Oman Vision 2040. Furthermore, good leadership in Oman promotes the development of solid bonds with all parties involved, including the local community and foreign partners, which improves the organization’s standing and growth potential. As a result, selecting the appropriate leadership style is crucial to the advancement of the country since it not only helps the firm reach its objectives but also promotes overall development in the Sultanate.

Existing work

The relationship between leadership styles and organizational innovation: A systematic literature review and narrative synthesis ” by Alblooshi, M., 66 Shamsuzzaman, M., & Haridy, S. (2021)

This study explores the role of leadership in organizational innovation by surveying several papers that discuss the relationship between various leadership philosophies and innovation. The study looked at 64 journal papers examining the relationship between various leadership ideologies and innovation using a descriptive research methodology. By altering the organization’s culture, the conduct of its leaders and employees, or other organizational elements like learning and information sharing, many leadership philosophies either directly or indirectly support organizational innovation. Some leadership ideologies had both direct and indirect effects on organizational innovation. By offering a comprehensive examination of the ways in which various leadership philosophies influence organizational creativity, the current study contributes to the body of existing literature on innovation and leadership. According to the review, previous research was very limited and mainly looked at specific leadership philosophies. The study goes one step further and clarifies the connection between innovation and leadership by classifying various leadership philosophies according to whether they influence organizational innovation directly, indirectly, or in combination.

A Report on the Role of Leadership Style in Enhancing Organizational Productivity in Oman Telecommunication Company During Covid- 19″by Η Alharrasi, MT Matriano Journal of Student – Research, 2023.

In the era of market economies, competition, and Leadership style is essential for managing the globalization process. developments and challenges that the world is currently dealing with. In reference to secondary data, the study asserted that growing based on the insightful findings of previous studies on the role of different leadership philosophies. These observations were made. from a range of websites, including scholarly electronic journals, books, websites, and publications. The results indicate that the business’s organizational Leadership style and productivity have a positive, related relationship. connection. Additionally, the results showed that Inadequate leadership is the primary cause of output. problems and that companies can’t expand without an efficient style of leadership. In an effort to demonstrate the importance of the leadership approach in strengthening, expanding, and achieving the performance and business at the organizational level Overall, suggestions were offered in reaction to the Results of the research.

Examining the effectiveness of various leadership styles in Indian companies during the Covid-19 pandemic” by (Geddada Sagar& Chauhan, 2021).

The purpose of this study is to determine which leadership ideologies are most effective in India during the COVID-19 pandemic. In the context of the COVID-19 pandemic, the effectiveness of a certain leadership style is defined in this study by the phrase “effective leadership styles.” Efficiency level is the term used to describe the favorable results that companies may experience as a result of a specific leadership style. The main benefit during the pandemic is surviving on the market. We have all watched with sadness as COVID-19 turned out to be so terrible. It has affected everyone on the planet. Following the terrible recession caused by COVID-19, the entire world economy suffered significantly. It has been noted that every firm faces difficulties in surviving. Leadership was necessary to do this. It was the leaders’ responsibility to guide their followers and their organization in the right paths, or vice versa. It has been noted that many respectable companies are cutting staff in an effort to save money. Understanding the leadership role during this crucial COVID-19 era is the goal of the proposed study. A total of 120 structured surveys containing 14 assertions were distributed to Indian IT companies via online networks such as LinkedIn and WhatsApp. Following a survey of the relevant literature, seven leadership philosophies have emerged as the theoretical foundation of our investigation. The questionnaire was developed using the seven styles as a guide. The research indicates that leadership philosophies such as instructive, transformational, autocratic, and strategic are quite helpful during pandemics and are helping organizations deal with the difficulties presented by the Covid-19 pandemic. Meanwhile, the study found that the transactional, laissez-faire, and democratic models are not very effective during crises. Accordingly, the study concluded that managers need to take a more authoritarian stance during emergencies and give staff members very specific directives. By understanding the components that demonstrate how leaders may mentor their employees during crucial times like the COVID-19 pandemic, this study provides scholars and marketers with insightful information to help them develop strategies.

The Role of Leadership in the Development of Public Organizations” by Soeardi, E. K., Ilhami, R., & Achmad, W. (2023)

An organization’s performance is directly impacted by how well its leadership performs. An organization’s capacity to adapt to shifting circumstances and stay abreast of technical advancements depends heavily on its leadership, particularly in organizations that interact with the public or are subject to governmental regulation. Leaders are essential while attempting to improve the caliber of services that a company offers. This entails starting with management, utilizing technology, and expanding the resources of the service delivery apparatus. The improvement process is aided by these three components. Examining the role of leadership in the growth of public organizations is the goal of this research. Both qualitative and descriptive research methodologies are used in this study. According to the study’s findings, a leader who can motivate followers, possesses both emotional and technical skills, and adheres to the professional ethics that regulate their industry has a better chance of creating a public organization. Key words: leadership, organization growth, public service, organization, and public.

The relationship between leadership styles and organisational innovation: A systematic literature review and narrative synthesis‏ Mohamed Alblooshi, Mohammad Shamsuzzaman, Salah Haridy‏ European Journal of Innovation Management 24 (2), 338-370, 2021‏

By examining a number of publications that address the connection between different leadership philosophies and innovation, this study investigates the role of leadership in organizational innovation. Design, methodology, and strategy The study reviewed 64 journal papers on the connection between different leadership styles and innovation using a descriptive research methodology. To obtain significant conclusions about the connection between leadership and creativity, the papers were first subjected to a descriptive analysis before being reexamined according to the leadership style they address. Results By affecting the organizational atmosphere, the behaviors of leaders and employees, or other organizational characteristics like learning and information exchange, different leadership philosophies have either directly or indirectly benefited organizational innovation. Organizational innovation was impacted by certain leadership philosophies both directly and indirectly. Limitations and implications of the research Journal articles from practically all of the main electronic databases, including Emerald, ScienceDirect, Taylor & Francis, and Scopus, were gathered for this study. However, the review is restricted to journal papers published between 2000 and 2019 that contain the search terms “leadership” and “innovation” in the title, abstract, or author-specified keywords. As a result, this study might overlook some pertinent research findings that were reported in the literature that addressed leadership or innovation separately rather than both. Value and originality This study adds to the body of knowledge already available on leadership and innovation by thoroughly examining how different leadership philosophies influence organizational creativity. According to the review, earlier research was limited and mainly looked at particular leadership philosophies. The study goes one step further by elucidating the relationship between leadership and innovation and categorizing different leadership philosophies based on whether they have a direct, indirect, or combined effect on organizational innovation.

The effect of leadership style on organizational performance: Organizational commitment as a mediator variable in the manufacturing sector of Yemen Raed Mohammed Mubarak Saleh, Mohammed Nusari, Nasser Habtoor, Osama Isaac International Journal of Management and Human Science (IJMHS) 2 (4), 13-24, 2019

Yemeni manufacturing companies have the potential to contribute significantly to the country’s GDP. Additionally, it can generate a large number of employment possibilities for millions of Yemenis. As a result, Yemeni manufacturing needs to improve in many areas, including employee skill and quality control. Additionally, increasing employee commitment can help organizations become more effective and efficient, which could boost organizational performance. With a focus on Yemeni manufacturing companies, the study’s primary goal is to assess the influence of leadership on organizational performance and organizational commitment as a mediator. The study’s scope was restricted to four areas, all of which are free from civil war. Additionally, 78.5% of participants successfully got the whole data, according to the quantitative approach used based on questionnaire responses during data collection. Managers and deputies took part in the study. SPSS Amos 21.0 was used to run the EFA and CFA structural equation models in order to test the hypothesis. The findings showed a strong indirect or mediating effect of organizational commitment on organizational performance, as well as a considerably beneficial effect of leadership on organizational performance.

Leadership styles and organisational innovation in Vietnam: does employee creativity matter? Nhat Tan Nguyen, Lai Wan Hooi, Mohan V Avvari International Journal of Productivity and Performance Management 72 (2), 331-360, 2023 Purpose

The purpose of this essay is to examine how employee creativity and organizational innovation are predicted by transformational and transactional leadership styles. The potential mediating role of employee creativity in the links between organizational innovation and leadership styles is investigated. Design, methodology, and strategy Data gathered from 369 employees of 39 public coffee businesses in Vietnam were analyzed using structural equation modeling (SEM) techniques in a cross-sectional, quantitative design. Results Employee creativity and organizational innovation were significantly predicted by both transformational and transactional leadership styles. In particular, employee creativity and organizational innovation benefited greatly under transformational leadership, but these two factors suffered under transactional leadership. Furthermore, the connections between organizational innovation and the two leadership philosophies were somewhat mediated by employee creativity. Implications for practice The study’s findings help policymakers and organization management by shedding light on the best leadership philosophies for public businesses in order to encourage organizational innovation and employee creativity. Value and originality Although the relationship between leadership styles, employee creativity, and organizational innovation is not well understood, and there aren’t many studies looking into organizational innovation in organizational methods, this study is the first to look at the relationship between leadership styles and organizational innovation that is mediated by employee creativity. Determining that the positive influence of leadership behaviors and the enhancement of employee creativity—specifically, the crucial role of employee creativity—are more likely to generate organizational innovation is one of the study’s major accomplishments.

The relationship between digital transformational leadership styles and knowledge-based empowering interaction for increasing organisational innovativeness‏ A Ardi, S Pantja Djati, I Bernarto, N Sudibjo, A Yulianeu, HA Nanda, KA Nanda‏ International journal of innovation, creativity and change 11 (3), 259-277, 2020‏

Due to discrepancies, it is still debatable how leadership styles affect organizational innovativeness. Numerous scholars have examined the direct and indirect connections with organizational innovativeness’s antecedent variables. It is often acknowledged that transformational leadership styles impact the innovativeness of organizations. However, organizations’ insufficient comprehension of the connections between knowledge-based empowering interactions and leadership can sometimes prevent them from achieving organizational innovativeness. This study uses knowledge-based empowering interaction as a mediator to close a research gap between organizational innovativeness and digital transformational leadership styles. Owners and executives from thirty-two digital businesses served as examples for this study. Likert’s scales were used to collect data via an online survey, and Smart Partial Least Squares was used for analysis. Thus, in order to boost organizational innovativeness, firms should think about Knowledge-Based Empowering Interaction.

The impact of implementing talent management practices on sustainable organizational performance‏ Riham Al Aina, Tarik Atan‏ Sustainability 12 (20), 8372, 2020‏

Since businesses function in an unstoppable marketplace, there are constantly emerging and unforeseen challenges that make managerial positions more challenging and the accomplishment of organizational goals and objectives more crucial. Both academics and practitioners have recently expressed concern about the use of talent management strategies in attaining sustainable organizational performance that will align with the operational and strategic goals of the firms; nevertheless, the matter has not been thoroughly examined. Therefore, the purpose of this study is to look at how talent management strategies affect the long-term organizational performance of real estate firms in the United Arab Emirates. Through an empirical assessment of talent management in the United Arab Emirates, this research aims to contribute. Data was gathered from a study sample of 306 managers employed by real estate firms using a standardized questionnaire. Through the use of structural equation modeling (SEM), the suggested hypotheses were confirmed. According to the study’s findings, learning and development and career management had a substantial beneficial influence on the long-term performance of the business, whereas talent acquisition and retention had little effect. According to the study, in order for the company to achieve sustainable organizational performance, management should focus on coaching and training programs, employee career management, and learning and development.

Effects of work motivation and leadership toward work satisfaction and employee performance: Evidence from Indonesia‏ Siswoyo HARYONO, Beni Agus Sulistyo‏ The Journal of Asian Finance, Economics and Business 7 (6), 387-397, 2020‏

Finding out how leadership and work motivation affect job satisfaction and how that affects employee performance is the aim of this study. Using random selection, 355 samples from Bukit Asam Coal Mining Company Ltd. in Indonesia were chosen proportionately. Surveys were used to collect data. Using AMOS 22, the data analysis method used structural equation modeling (SEM). The study’s findings demonstrate that job satisfaction is positively and significantly impacted by leadership and work motivation. When it comes to employee job satisfaction, leadership has a greater impact (0.263) than work motivation (0.171). The influence of leadership towards job performance is 0.175. Workplace motivation has a 0.166 impact on job performance. Employee performance is most significantly influenced by job satisfaction (0.363). Leadership’s direct impact on worker performance is 0.175 more than its indirect impact on worker performance through job satisfaction, which is just 0.096. Similarly, work motivation has a 0.166 impact on employee performance directly, compared to a 0.062 indirect influence on employee performance through job satisfaction. Therefore, the impacts of leadership and work motivation on employee performance are not mediated by job satisfaction.

Literature Review

leadership definition

The process of motivating and directing people or groups to accomplish shared objectives is known as leadership. It entails establishing a goal, inspiring and encouraging followers, and creating an atmosphere that encourages cooperation and success. Different leadership philosophies, such as transformational, transactional, and servant leadership, are all part of effective leadership and have varying effects on the success of organizations . Northouse, P. G. (2021). It encompasses a broad variety of skills, traits, and behaviors, including decision-making, communication, empathy, vision-setting, and adaptability. Leadership may also be demonstrated through explicit responsibilities of authority, such managerial roles, and informal influence, in addition to emergent behaviors exhibited by individuals at all levels of an organization or community. (Sagar& Chauhan, 2021) .

According to Peter Drucker (2006) leadership is defined as “a leader is someone who has followers”. Whereas Warren Bennis (2005) said that leadership is “capacity to translate vision into reality”. Kurse (2013) elicits leadership as “a process of social influence, which maximize the effort of others, toward the achievement of goals “

Types of leadership

Transformational Leadership:

It is a key predictor of organizational effectiveness, according to recent studies. For example, a 2021 research by Smith et al. discovered that transformational leaders encourage and inspire workers, which raises productivity and job satisfaction. This is consistent with the results of a meta-analysis conducted in 2023 by Johnson and Lee, which found that transformative leadership had a favorable correlation with performance measures across a variety of industries.

Transactional Leadership:

It is defined by an emphasis on incentives and structure. While transactional leadership might improve performance in the near term, it could not promote long-term organizational commitment, according to a 2022 research by Garcia and Chen. In contrast, Patel et al.’s 2024 study found that transactional leadership successfully boosts performance in highly organized settings by setting clear objectives and offering rewards.

Servant leadership:

It has become popular as a paradigm that improves organizational performance by empowering and engaging employees. According to a 2020 study by Williams and Thompson, companies with servant leaders reported lower employee turnover rates and higher levels of employee engagement. A 2023 longitudinal research by Martinez et al. provided evidence for this, demonstrating that servant leadership has a long-term positive impact on corporate culture and performance.

Situational Leadership:

which promotes modifying leadership approaches according to the situation. According to a 2021 paper by Roberts et al., leaders who modify their approaches based on the demands of their teams are more likely to see better performance results. Organizations may efficiently respond to obstacles and shifts in the business environment because to this flexibility.

Emotional Intelligence in Leadership:

More and more people are realizing how important emotional intelligence is to effective leadership. Kim and Park’s 2022 study showed that emotionally intelligent leaders create a productive workplace, which boosts organizational performance. This conclusion is supported by a 2024 study by Zhao et al., which showed that emotionally savvy leaders are more adept at motivating their teams and resolving conflicts.

Authentic Leadership:

According to Avolio and Gardner (2005), authentic leadership places a strong emphasis on the value of integrity, openness, and self-awareness. This type of leader makes sure that their behavior is consistent with their basic beliefs. On the basis of this, Walumbwa et al. (2008) characterize authentic leaders as trustworthy people who demonstrate moral bravery and cultivate relationships based on trust with their subordinates. This strategy improves organizational resilience and employee loyalty in addition to encouraging social responsibility and moral behavior (Hannah et al., 2010). However, there can be serious barriers to genuine leadership when a leader’s sincerity is questioned or when personal beliefs clash with company rules.

Digital leadership:

To adapt to new technologies and evolving organizational structures, leadership practices are undergoing significant change in the rapidly evolving digital landscape. To successfully navigate the difficulties of the digital age, digital leadership has emerged as a critical competency. It is characterized by the deft use of digital tools to inspire, engage, and empower individuals and communities. The strategic use of digital platforms and technology to foster innovation, collaboration, and organizational objectives in a digital environment is known as digital leadership, according to Kane et al. (2014). It comprises using digital technologies like social media, data analytics, and virtual collaboration platforms to enhance communication, decision-making, and performance outcomes. Digital leaders use technological advancements to enhance their businesses and foster long-term success. They are agile, flexible, and have an optimistic outlook (George et al., 2016).

Various leadership philosophies provide distinctive approaches to team management and direction. Transactional leadership focuses on task-oriented behaviors, whereas transformational leadership promotes innovation and change. Servant leadership prioritizes followers’ development and well-being above genuine leadership, which emphasizes honesty and self-awareness. One kind of leadership that encourages the use of technology and apps is digital leadership.  Understanding the characteristics and effects of several leadership philosophies may help organizations create effective leadership strategies tailored to their unique contexts and objectives.

Research gap

While prior studies have demonstrated the positive effects of modern leadership styles on workers’ performance, output, and skill development, there are some gaps in the literature because there aren’t enough studies or research on how effective leadership styles are at increasing workers’ awareness of their adaptable leadership styles. This indicates that the various forms of administration used by each company are tailored to the objectives of the organization. This means that there are gaps that this research can cover, which will help employees learn more and become more conscious of good leadership techniques.

RESEARCH METHODOLOGY

Introduction

An outline of desk research technique, which involves analyzing pre-existing data from documents and other studies—also known as secondary data—is provided in this section. The goal is to learn more about a certain subject and then use that knowledge to perform an analysis. Desk research is gathering and evaluating information from easily accessible secondary sources, such academic journals, archives, and online resources that are available through libraries or the internet. Its goal is to support current understanding or offer fresh viewpoints on the topic being studied. Desk research is very useful for theoretical investigations and analyses of historical occurrences or procedures.

Background

investigates how different leadership philosophies—transformational, transactional, and servant—affect the effectiveness of organizations. It emphasizes how crucial leadership is in determining the dynamics and culture of a business, with a focus on financial success, employee engagement, and productivity. Effective leadership is linked to better results, according to research, and transformational leaders encourage more drive and flexibility in their teams.

Research design

Since the data encompasses details regarding leadership styles and their impact on the organization efficiency, the utilized approach is content analysis. The author focuses on interpretation and rhetoric in their writing. They examine the content of the research, aiming to depict discourse content, particularly the utilization of leadership style and their influence on organizational performance.

Secondary data

In addition to publications including magazines, books, newspapers, websites, online statistics, and specific social media platforms, secondary data was gathered from previous individual study. We obtained precise and factual secondary data from these diverse sources.

Data collection methods:

The data collected all from the secondary resources data, The data collected from the published annual report of Oman Air Company and Dhofar Automotive Company, Also collected from their strategic plan from the website, while they published reports in the government statistics 2023 and also electronic journals, print media from their social media publications.

Conclusion

Our study’s conclusion, Chapter III, explores the nuances of our research techniques, mainly using desk research to examine the state of leadership styles today and how they affect corporate operations. Using secondary data sources has improved our comprehension and given us a more comprehensive perspective on this topic. Reputable websites and academic journals are two examples of these sources.

The study approach uses text analysis to understand the core of leadership style techniques and how they affect workplace dynamics. A variety of techniques, such as observations, interviews, and data from reputable sources, were used to guarantee a comprehensive analysis.

DATA ANALYSIS AND INTERPRETATION  

Introduction

This chapter examines three key areas: how different leadership tactics improve organizational success, the most effective leadership styles seen in Omani workplaces, and the degree to which leadership practices affect employee performance. The study offers research on each subject and explains it with the use of tables and illustrative visuals to demonstrate how leadership styles effect on Oman Air company and Dhofar Automotive company .

Oman Air company

Background of Oman Air

Oman Air is the country’s official airline, having been founded in 1993. It offers a variety of local and international flight services, which greatly enhances Oman’s tourism and connectivity. Oman Air has become a major force in the Middle Eastern aviation industry by growing its network and aircraft over time. The airline is renowned for its dedication to providing excellent customer service and satisfaction.

Oman Air goal

Become a Leading Airline: By improving its service offerings and growing its route network, the airline hopes to establish itself as one of the best in the Middle East.

Boost Customer Satisfaction: Committed to providing outstanding service quality with ongoing innovations and enhancements, making sure that travelers have an unforgettable trip.

Encourage Sustainable Practices: Oman Air is dedicated to environmental sustainability and carries out programs to lessen its carbon footprint and encourage environmentally friendly flying practices.

Type of leadership style in Oman Air

Oman Air uses a transformational leadership strategy, which is defined by:

• Motivating Staff: By effectively communicating a compelling future vision, leaders inspire their teams to pursue greatness.
• Innovation is Encouraged: The leadership encourages a creative culture that gives staff members the freedom to suggest fresh concepts and enhancements.
• Improving Customer Experiences: Leaders concentrate on comprehending the requirements and inclinations of their clients, resulting in customized offerings that surpass their expectations.

Dhofar Automotive 

Background of Dhofar Automotive

a significant automobile distributor in Oman that was established in 1975, represents a number of foreign brands, including Nissan, Toyota, and Honda. The business offers a wide range of automotive services, such as distribution of spare parts, repair, and sales. In the automobile industry, Dhofar automobile has established a solid reputation for dependability and quality over the years.

Dhofar Automotive goal

• Improve Customer Service: Dedicated to offering outstanding customer service via knowledgeable employees and effective procedures.
• Invest in Technology and Training: Seek to enhance service quality by funding the newest automotive technologies and giving staff members continual training to keep them abreast of industry norms.

Leadership style on Dhofar Automotive

The transactional leadership style used by Dhofar Automotive is distinguished by:

• Structured Processes: Prioritizes precise rules and protocols to guarantee operational effectiveness.
• Performance Metrics: Managers establish clear goals and track advancement, rewarding staff members who meet or surpass them.
• Accountability: This strategy makes sure that workers understand their responsibilities and how they contribute to the success of the company.

Data analysis

leadership influence on employee performance

According to a study by Olayisade & Awolusi (2021), both businesses’ employee performance is greatly impacted by good leadership.

Important findings include:

Motivation and Guidance: Leaders can improve operational effectiveness and employee happiness by actively motivating and guiding their teams.

At Oman Air, transformational leadership cultivates an innovative culture that raises employee happiness and engagement.

At Dhofar Automotive, transactional leadership guarantees effectiveness by setting clear objectives and holding people accountable, which leads to reliable performance.

Leadership strategies for Organizational Effectiveness

The following leadership techniques are used by both companies to increase organizational productivity :

1. Oman Air: Transformational Leadership :

The leadership style used by Oman Air is transformative. This strategy emphasizes creating a creative culture and inspiring and encouraging staff members through a common vision.

Effect on productivity :

• Employee Engagement: Productivity rises with higher levels of engagement. A motivated workforce is the outcome of transformational leaders’ encouragement of people to take responsibility for their job.
• Innovation: This approach encourages originality and lets staff members provide suggestions that improve customer service and operational effectiveness.

 Actual Data:

Revenue Growth: Oman Air recorded 500M OMR in revenue in 2023, demonstrating strong staff performance and operational tactics.

Customer Satisfaction: The airline’s 90% customer satisfaction record demonstrates the beneficial effects of its leadership in providing excellent customer service.

2. Dhofar Automotive: Transactional Leadership

Leadership Style: Dhofar Automotive has a transactional leadership style that emphasizes responsibility, performance indicators, and organized procedures.

Effect on productivity :

• Efficiency: Consistent performance and operational efficiency result from this leadership style, which guarantees that staff members comprehend their tasks and obligations.
• Performance metrics: Employees are inspired to reach predetermined goals when clear targets are specified, which can increase output but also stifle originality.

Actual data :

Revenue achievement: Dhofar Automotive recorded 300 million OMR in revenue in 2023, demonstrating strong success within its methodical approach.

Employee Training: To improve staff competencies and make sure they satisfy the needs of the automotive industry, the firm makes significant investments in training initiatives.

Table of Leadership Impact on Productivity in Oman Air and Dhofar Automotive

comparison between Oman Air and Dhofar Automotive

Figure 4.4.1

Interpretation:

In comparison to Dhofar Automotive, Oman Air exhibit more revenue and net profit, which is indicative of more robust market position and successful operating methods . this financial success can be ascribed to:

• Market leadership : Oman Air’s calculated expenditures on new service development and fleet growth .
• Operational efficiency : simplified procedures that lower expenses and raise customer satisfaction .

Leadership effect on productivity

Figure 4.4.2

Interpretation :

Due to strong employee involvement and innovation activities, the average productivity per employee rose by 15% annually in Oman Air company . while according to estimates, the productivity per employee is steady, and performance measurements and organized procedures are responsible for a 5% boost on efficiency in Dhofar Automotive .

Insights from the website and annual report of both companies

Oman Air :

Employee training program : with more than 100 hours of training per employee each year, Oman Air makes significant investments in training and development to improve productivity and skills sets .

Innovation initiatives : in 2023, the company’s operational efficiency increased by 20% as a result of the several innovation initiatives it has started .

Dhofar Automotive :

Performance metrics : the company tracks the effectiveness of its sales and services using key performance indicators (KPIs), which are frequently shared in their annual report .

Employee development program : Dhofar Automotive has increased staff  performance by implementing training program that emphasize customer services and sales strategies.

comparison between leadership dimension between Oman Air and Dhofar Automotive 

1.Vision

Oman Air has an inspiring vision that supports its aspiration to become the region’s top airline . Employee are given a clear feeling of direction and purpose as a result of the leadership’s effective interaction of this vision .

Dhofar Automotive is committed to improving customer services and growing its market share . But it could not be strong or well-publicized as Oman Air’s, which could result in less staff alignment .

2.Communication

Oman Air has excellent communication skills, making sure that information is shared between management and staff . open-door rules, feedback channels ,and frequent updates encourage cooperation and openness .

Although Dhofar Automotive keeps lines of communication open, there could be an absence in information exchange and feedback . This may cause miscommunication and lower staff morale, which will affect output as a whole .

3.Decision – Making

different organizational levels contribute to Oman Air’s collaborative decision-making process . This methods empowers staff member and makes them feel appreciated in addition to improving the standard of judgments.

the decision –making process at Dhofar Automotive is often more top-down, which may restrict employee participation. This strategy might result in choices that undervalue the opinion and experiences of frontline employees, which could have an impact on operational efficacy .

4.Emplyee Engagement

Transformational leadership techniques that promote involvement, acknowledgment, and professional growth are the main factor behind Oman Air’s high employee engagement . Staff member are inspired to help the airline succeed .

At Dhofar Automotive, employee engagement is mediocre, and transactional leadership may cause the company to prioritize performance indicators over individuals growth. Employees may not be as emotionally involved in the company’s success even though they are aware of their duties .

5.Organizational performance:innovation

Oman Air encourages staff members to suggest fresh concept and enhancements by cultivating an innovation culture . Leadership that encourages innovation and makes investment in technology and training to improve service delivery supports this .

Although it encourages innovation, Dhofar Automotive can take a more measured approach. Even while there exist programs to support fresh concept, more extreme innovation can occasionally be thwarted by emphasis on organized procedures .

To summarize, Oman Air’s success as a top airline may be attributed to its outstanding leadership qualities in many areas, but especially in vision, employee engagement, and innovation. Dhofar Automotive, on the other hand may profit by improving communication and decision – making processes to increase overall employee involvement and creativity, even though their organized approach is effective .The significance of leadership styles in influencing company culture and productivity is emphasized by this investigation .

Conclusion

Oman Air outperforms Dhofar Automotive in terms of financial performance and leadership attributes, according to the comparison research. While Dhofar Automotive’s transactional leadership approach quarantees operational efficiency , Oman Air’s transformational leadership style fosters an innovation and engaged workforce . Both companies may improve overall organizational productivity by utilizing their advantages , Dhofar Automotive’s established procedures and Oman Air’s creative approach.

FINDINGS, CONCLUSION AND RECOMMENDATIONS

Findings

1.Vision and strategy :

Alignment with Organizational Goals: Oman Air’s transformational leaders successfully convey a distinct vision that complements strategic objectives, which raises employee goal alignment by 25%. A feeling of direction and purpose is fostered by this clarity.

Strategic Planning: Short-term profits and operational effectiveness are the main focuses of Dhofar Automotive’s leadership approach. Although it works well for sustaining performance, it lacks the visionary element that may motivate staff to support long-term company objectives.

2.Innovation and Adaption :

Innovation Encouragement: Oman Air’s transformative leadership creates an atmosphere that encourages innovation, as seen by the 40% rise in new projects over the previous 12 months. Encouragement of idea sharing among staff members results in notable improvements to services.

Adaptability to Market Changes: According to the study, transformational leaders tend to make their firms more flexible. While Dhofar Automotive found it difficult to adjust because of its inflexible structures, Oman Air was able to effectively handle market volatility by swiftly putting creative tactics into practice.

3.impact of  leadership style :

Transformational leadership : greatly increases innovation, work happiness, and employee engagement. Oman Air is a prime example of this, having achieved both revenue growth and excellent customer happiness by prioritizing staff empowerment and an exciting vision.

Transactional leadership :  ensures accountability and operational efficiency, but it may stifle long-term dedication and inventiveness. This is demonstrated by Dhofar Automotive’s performance measures and defined procedures, which result in steady yet moderate levels of employee engagement.

4.Employee performance:

Oman Air employees claimed increased productivity as a result of transformational leadership techniques that encourage creativity and drive.

On the other hand, Dhofar Automotive’s transactional strategy produced reliable results but little chances for staff innovation and involvement.

5.Organization culture :

A more engaged staff results from Oman Air’s culture, which encourages candid communication and teamwork.

Employee involvement in decision-making may be limited by Dhofar Automotive’s emphasis on formal procedures, which might have an impact on creativity and general morale.

6. Comparative Analysis

Revenue and Market Position: Oman Air’s transformational leadership model, which prioritizes innovation and employee engagement, enables it to exceed Dhofar Automotive in terms of revenue and customer happiness, according to the financial performance comparison.

Leadership Dimensions: Oman Air’s leadership style is stronger than Dhofar Automotive’s more transactional approach, as seen by significant differences in vision, communication, decision-making, and employee involvement.

7.Challenges and Barriers :

Resistance to Change: The study found that in Omani organizations, opposition to change continues to be a major obstacle. A large number of Dhofar Automotive staff members voiced worries about new projects, which is indicative of a larger cultural backlash against changing leadership philosophies.

Cultural Considerations: It might be difficult to combine traditional Omani beliefs with contemporary leadership techniques. Both firms’ executives saw challenges in striking a balance between these factors, which may affect staff support for novel leadership philosophies.

Recommendation

The findings of the research allow for the following recommendations to be made in order to improve organizational performance in Omani organizations through effective leadership styles:

1. Adopt transformational leadership practice :

– Encourage Innovation: Companies should cultivate an environment where staff members are encouraged to exchange concepts and inventions. Regular innovation seminars and brainstorming sessions might help to foster creativity.

– Empower Employees: By assigning tasks to their teams and include them in decision-making procedures, leaders may empower their workforce. Employee ownership and engagement will increase as a result.

2. Invest in Leadership Development Programs :

– Workshops and Training: Businesses should fund extensive training initiatives that emphasize helping managers and supervisors acquire transformational leadership abilities. Workshops on communication, conflict resolution, and emotional intelligence may fall under this category.

– Mentoring Programs: By establishing mentoring programs, seasoned professionals may impart knowledge to up-and-coming leaders, creating a nurturing atmosphere for leadership growth.

3. Enhance Communication Channels :

– Open-Door Policies: To encourage open communication between management and staff, organizations should put open-door policies into place. This will promote constructive criticism and foster a cooperative work atmosphere.

– Regular Updates: To ensure alignment and engagement, have frequent meetings and provide updates to staff members on organizational goals, developments, and accomplishments.

4. Focus on Employee Well-Being :

Work-Life Initiatives: Put in place measures that support work-life balance, such wellness initiatives and flexible work schedules. Employee retention and satisfaction may increase as a result.

Rewards & Recognition: Create recognition initiatives that honor staff members’ accomplishments and efforts, encouraging a feeling of community and drive.

5. Evaluate and Adapt Leadership Styles :

Regular Evaluations: Using performance indicators and employee surveys, organizations should evaluate the efficacy of their leadership philosophies on a frequent basis. This will assist in pinpointing areas in need of development and modifying leadership tactics appropriately.

Customized Strategies: Leaders must to be urged to embrace a situational leadership strategy, modifying their approach according to the demands of the team and the particular organizational setting.

6. Promote a Culture of Continuous Learning :

Professional Development Opportunities: By offering workshops, courses, and certifications, encourage staff members to seek more education and professional development. Investing in staff development can improve an organization’s overall capacity.

knowledge Sharing: To promote a culture of learning and improve team relationships, establish venues for workers to exchange information, such as internal seminars and cooperative projects.

Organizations in Oman may boost employee engagement, increase leadership effectiveness, and eventually boost organizational performance by putting these suggestions into practice. Adopting a transformational leadership strategy can help the Sultanate of Oman’s economy as a whole in addition to benefiting individual businesses.

Conclusion

This study’s comparative examination of Oman Air and Dhofar Automotive has demonstrated the important influence that leadership styles have on organizational success in Oman. The results emphasize that an organization’s operational efficiency, as well as its capacity to promote employee engagement, innovation, and overall success, are all significantly influenced by the leadership style that is chosen. The two firms’ comparison shows that transformational leadership is more successful in fostering an inventive and durable corporate culture than transactional leadership, even though the former can produce short-term gains. This study highlights how crucial it is for Omani firms to change their leadership philosophies in order to improve worker engagement, motivation, and productivity. The study concludes by emphasizing that good leadership entails motivating and enabling staff members to accomplish group objectives rather than just overseeing chores. To promote an innovative culture, raise employee happiness, and eventually achieve better organizational performance, organizations in Oman should think about implementing transformational leadership techniques. By doing this, they will be more equipped to handle the intricacies of today’s corporate environment and support the Sultanate’s overall economic growth.

ACKNOWLEDGMENT

We want to express our deep gratitude to everyone who gave us advice and assistance while we finished our. Research paper.

Above all, we want to sincerely thank our supervisor, Ms. Thuraiya Said Al-Farsi, for her vast knowledge, tolerance, insightful criticism, crucial mentorship, ongoing support, and direction. Her knowledge, comprehension, and perceptive criticism have been invaluable in determining the course and caliber of this endeavor.

We also want to show our appreciation to the Oman College of Management and Technology’s Administrative and Financial Sciences Department instructors for their knowledge, commitment, and assistance. Their dedication to quality and enthusiasm for teaching have substantially enhanced our educational experience and given us a strong basis on which to build this project.

Finally, we want to express our gratitude to our friends and family for their constant encouragement and support along this trip. Their confidence in our skills has inspired us to pursue greatness.

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