The Role of Leadership Styles in Enhancing Employee Productivity in Multinational Corporations

Abstract

This paper explores the role of leadership styles in enhancing employee productivity within multinational corporations (MNCs). It examines three primary leadership styles: transformational, transactional, and laissez-faire, analyzing their impact on employee motivation, engagement, and performance. Transformational leadership is identified as the most effective in fostering creativity, innovation, and high employee engagement, particularly in diverse cultural settings. Transactional leadership, while effective in structured environments, has limitations in dynamic MNC contexts. Laissez-faire leadership, though sometimes beneficial in specialized or autonomous teams, generally leads to lower productivity due to lack of direction. The paper concludes that MNCs must carefully choose leadership styles that align with their organizational goals and cultural dynamics to maximize employee productivity and organizational success.