The Decline of Public Sector Organizations and Improvement Through Leadership Style

Abstract

Pakistan has never seen a political and economic crisis before of current magnitude. The public sector needs devoted and successful public managers to improve its performance and to mitigate the effects of the current economic downturn. For this reason, there have also been little efforts carried out by Pakistan's government officials to boost the value of "leadership" in building the “organizational commitment” of Pakistanis. The primary goal of this study is to assess the impact of leadership styles and employee's motivation on the effectiveness of public sector firms. Online surveys were administered to a representative sample of middle managers from six Pakistani public institutions, including “Capital Development Authority (CDA), Islamabad Electric Supply Company Limited (IESCO), Sui Northern Gas Pipelines Limited (SNGPL), National Database and Registration Authority (NADRA), Pakistan International Airlines (PIA) and Capital Hospital”. A quantitative research approach was used in this study, which resulted in the collection of 279 valid structured questionnaire's responses following a purposive sampling method. Data were analyzed using descriptive and inferential statistics. According to the assumptions of the study, inferential statistics based on Pearson's correlation and regression analysis were employed to show the data's relationship and effect. The study’s conclusions showed that improving employee's performance is significantly impacted by both transformational and transactional leadership philosophies. However, it should be highlighted that staff motivation and training moderate this link and increase the impact of leadership on favorable results. It was discovered that while organizational citizenship behavior (OCB) was shown to impact the motivation-performance relationship, it was not found to modify the training-performance link. This suggests that the organization must strongly promote OCB among its staff. These revelations support earlier research and attest to the complexity, adaptability, and influence of leadership on organizational outcomes.