Since different regions and countries have different cultures, it may well be assumed that some of the management styles that are effectively applied in these developed countries may not be effective in less developed countries or in other regions of the world.
While several studies have been conducted to reveal the impact of transformational leadership in developed countries and a few less developed ones, quite a lot remains undone especially in the Middle East which generally has a culture that is different from those of the United States, and most western countries. It is this gap that this study seeks to fill by considering the application of transformational leadership in small businesses in Pakistan. This research will hence focus on transformational leadership and its effects on the performance of a sample of small organizations based in Pakistan.
Since the Middle East is such a large region, and the number of organizations within it is quite numerous, this study will be limited to only small organizations within Pakistan. For the purpose of this research, the terms leadership and management will be considered as synonyms in spite of the differences that may exist between the two terms on strict consideration. The two terms will, in this respect, be used interchangeably without change in meaning.
There are many leadership styles that can be applied by managers and supervisors to achieve organizational goals. Some leadership styles include autocratic, participative and laissez faire. Other leadership styles include transformational, situational and transactional leadership. With respect to personality, one leadership style that is commonly applied in different regions is transformational leadership. Each of these management styles has its advantages and disadvantages and impact organizational performance differently. The following sections are dedicated to describing and discussing leadership, leadership styles and the impact of