THE IMPACT OF LEADERSHIP ON ORGANIZATIONAL PERFORMANCE

An organization is considered to be effective if it finds the balance between the demands of various stakeholders (owners, employees, customers, community) and the needs of the employees. We believe that an appropriate leadership style can influence and ensure the prosperity and the economic growth of both the organization and employees. Therefore, the aim of the paper is to explore the impact of leadership styles on the organizational performance. Our main focus is on transformational leadership and its role in facilitating the increase in organizational performance. Transformational leaders inspire individuals within the organizations to work harder and to strive for the highest levels of performance. We begin by underlining the connection between transformational leadership and organizational performance, we provide examples on transformational leadership practices’ impact the organizations and we conclude by making some future research propositions.