Impact of Leadership Styles on Organizational Commitment in Pharmaceutical Companies of Pakistan

Abstract

The basic aim of this research is to examine the association between Styles of leadership (servant leadership and transformational leadership) and organizational commitment. Two hundred (200) questionnaires were distributed and 133 questionnaires were received back depicts 66.5% reply rate. A non-probability convenience sampling technique was used to collect data. This study is limited to the pharmaceutical companies working in Pakistan, and the respondents are employees of pharmaceutical companies working at different hierarchical level of management. Questionnaires were distributed randomly to local and MNC’s pharmaceutical companies. This study used multiple regression models for testing hypotheses. It was found that there is no significant relationship between servant leadership and organizational commitment whereas transformational leadership has significant direct association with organizational commitment. This study has practical implications for management to enhance employees concerns and improve ethical behavior. Moreover management must know that their management style have significant impact on employee’s performance that is associated with firm’s financial performance.

Keywords: Servant leadership, Transformational leadership, Organizational commitment, Pharmaceutical companies