How Leadership and Behavior Impacts and Improves the Decision-Making in Organizations

Abstract

The purpose of this research article is to analyze the influence of leadership style and behavior on decision-making. In more detail, the impact of leadership style and decision-making skills and competencies on decision-making, respectively on decision-making effectiveness. For the purpose of research, both, quantitative and qualitative methods are applied in the paper. As tool for primary data collection the questionnaire was used and all the data collected were analyzed through SPSS software tool. The research sample consisted from eighty-two (82) respondents-leaders of various businesses in Kosovo. The collected data were analyzed through Statistical Package for the Social Sciences software, respectively through linear regression analysis and other necessary complementary analysis. The findings from the conducted research show that the different leadership styles applied by business leaders have a positive impact on decision-making, namely on the effectiveness of decision-making. According to results obtained, both supportive behaviors and directive behaviors of leaders towards their employees, influence positively the decision-making, depending on the situation with which they face during their work. Meanwhile leaders who possess skills related to decision-making, such as: identifying and analyzing problems, gathering the information necessary to solve problems, generating possible alternatives/solutions, making decisions, the implementation and evaluation of the decisions made, have a higher tendency to be involved in effective decision-making and foster the effectiveness of organizations in general.