Relationship between the leadership style and organizational performance in Hungary

Effective leadership is one of the most essential tools for an organization to sustain its business in the face of problems caused by the global economic environment. Successful managers can influence their employees and motivate them for strengthening organizational performance. The effective leadership style as a unique way of integrating employees with the organization to achieve its vision or goals. The current study provides a deeper insight into the factors of effective leadership style of organizations. The research paper is seeking to examine the relationship of leadership style and organizational performance by quantitative analysis of 376 participants in Hungary. The results showed a correlation between the dimensions of leadership style and organizational performance. It was also found that leadership style predicted organizational performance, which meant a 29% variance in performance. The findings of this study may assist current and future managers who are seeking to improve organizational effectiveness.