IMPACT OF LEADERSHIP ON PERCEIVED ORGANIZATIONAL PERFORMANCE- CASE OF FMCG SECTOR OF KARACHI, PAKISTAN

Abstract

Purpose- The objective ofthe paper is to build a model ofresearch to examine the effect ofstrong leadership on trust and perceived organization functioning and performance. Methodology & Design- Leadership’s six constructs (leadership: leading firm, leadership: influencing people, leadership: leading and motivating self, trust and firm performance) were included in the instrument that was created and given to employees from all management stages in different firms across different sections in Karachi, Pakistan. To test the hypotheses, data collected were examined using path modelling called partial least squares. Findings-The results ofthe study showed positive, direct, and significant relation i-e linear between effective leadership(leading firm, influencing people, motivating self), trust and perceived organization functioning. Limitations- This research have some limitations, Time, Resources and the Information were the most dominant one. Time is the most precious and the limited thing we have in our life. If the study was given more time, resources and information than it will be more accurate. Due to the time and resources limitation we are unable to collect the larger number ofsample size and the length ofthe study is also limited. Recommendations- There could be many important variables that can affect perceived organization performance and are yet to be discovered and studied in detail to examine their impact on perceived Firm Performance as well as on trust. This study can be further examined by using moderating variable such as knowledge management, leadership styles etc. Monitoring for ample highlighting on strategic issues, explanatory process and moderating effects of the situation, the shortcoming, remedies which are useful should be investigated further. Practical Implications- Results suggest that strong leadership (i-e leading firm, influencing people, motivating self), increases the faith and in turn improves organizational performance. Therefore, any firm must make leadership development and training a best leading strategic significance. Originality/Value- Study adds to body ofliterature as it is showing that effective leadership is the cornerstone ofincreased trust and improved organizational performance.