Organizational culture, leadership style and effectiveness: A case study of middle eastern construction clients

During the last few decades, organizational effectiveness has received a great deal of attention in many industrial sectors. As a result, a variety of models have been formulated which measure organizational performance. In the construction industry, two factors have subsequently captured the imagination and interest of researchers and practitioners alike: the culture of the organization and the leadership style of project managers. This focus places a requirement upon construction organizations to recognize and understand their organizational culture, and equally, to clearly communicate it to their employees as part of their capitalist drive of constantly improving performance, productivity and profit. Traditional ways of conducting construction business require a sound understanding of the technical and managerial demands of executing projects, which in turn, places an increased emphasis upon the management and leadership competencies of individual project managers. The purpose of the research is to explore the relationship between organizational culture, authentic leadership style and effectiveness within the context of a case study investigation centred on Middle Eastern construction clients and their project managers. The outcomes of the investigation, which include the presentation of an explanatory model, indicate that organizational culture is directly and positively related to performance and effectiveness, while project managers' leadership style has an indirect relationship to effectiveness. A strong organizational culture is therefore deemed critical to organizational performance.