Leadership Style and Organizational Effectiveness in Indian IT and Banking Industry

The attempt here has been to investigate the relationship between perceived leadership style and organizational effectiveness amongst middle level managers of two service sector industries in India. Information Technology (IT) and Banking Industry have been taken-up for the study considering them as the most prominent component of Indian service sector. 200 middle level managers were targeted (100 from IT Industry and 100 from Banking Industry) and a total of 150 responses were collected. The findings of the study confirm the relationship between leadership style and organizational effectiveness. There is a larger effect of perceived participative leadership style on organizational effectiveness in comparison to the instrumental and supportive leadership style.