Leadership Styles and Their Impact on Decision-Making Effectiveness in Organizations

Abstract

The paper’s purpose is to analyze the relationship between leadership and decision-making for the sustainable development of organizations. Both components are considered very important processes in organizational management. Leadership and decision-making effectiveness are directly related to the leadership style applied by organizational leaders. For research purposes, the study has adopted a combined methodology, using secondary and tertiary data that are compared with primary data collected in place from the managers/leaders in different organizations in Kosovo. As a tool for the data collection, a questionnaire was drafted and as well we did use semi-structured interviews in several cases. Based on research, the results have shown that the leadership styles with the lowest applicability are autocratic and laissez-faire style, simultaneously these two styles have influenced low decision-making effectiveness, while the most applied leadership style is liberal style followed by democratic style. The application of liberal and democratic style has influenced the increase of decision-making effectiveness in organizations. Also, it has been proven that there is a positive relationship between staff participation in organizational processes, such as problem s olving and decision-making, and decision-making effectiveness.