THE ROLE OF LEADERSHIP STYLES IN MANAGERIAL DECISION-MAKING EFFECTIVENESS

Abstract

This thesis explores the influence of leadership styles on the effectiveness of managerial decision-making in contemporary organizations. The paper proceeds from the assumption that decision quality is not determined solely by information availability or technical competence, but also by the relational and communicative patterns through which leaders guide interpretation, deliberation, and action. Drawing from leadership theory, organizational psychology, and management studies, the analysis compares authoritarian, democratic, transformational, transactional, servant, and situational leadership approaches. It is argued that leadership style affects the speed of decision-making, the inclusiveness of participation, employee commitment to implementation, and the organization’s capacity for learning. The study demonstrates that no single leadership style is universally optimal; rather, decision effectiveness depends on contextual fit, ethical orientation, and the leader’s ability to integrate authority with reflective dialogue. The paper concludes with recommendations for developing adaptive leadership practices that enhance decision quality in complex institutional settings.