Leadership Styles and Change Readiness in Organizations

Abstract

This study investigates the relationship between leadership styles and organizational change readiness in Pakistani public and private sector organizations undergoing frequent transformations driven by digitalization, regulatory shifts, and post-pandemic adaptations. Employing a quantitative cross-sectional survey design, data were collected from 372 employees and managers across telecommunications, manufacturing, healthcare, and higher education sectors using validated instruments: the Multifactor Leadership Questionnaire (MLQ) to assess transformational, transactional, and laissez-faire styles, and Holt et al.'s Readiness for Organizational Change scale to measure readiness dimensions (appropriateness, management support, change efficacy, personal valence). Results revealed transformational leadership as the strongest predictor of change readiness (β = 0.48), followed by transactional leadership (β = 0.24), while laissez-faire exerted a negative effect. Psychological safety partially mediated the transformational readiness link, and organizational culture and sector moderated relationships, with stronger effects observed in adaptive cultures and healthcare contexts. These findings highlight the primacy of proactive, inspirational leadership in fostering employee beliefs, commitment, and perceived capability to embrace change, while underscoring the need for context-sensitive blending of styles to enhance readiness in developing-country settings. The study contributes to the full-range leadership model by demonstrating its relevance in emerging markets and offers practical guidance for leaders and HR practitioners aiming to reduce change failure rates and build resilient, adaptable organizations amid ongoing volatility.

Keywords: Transformational Leadership, Change Readiness, Organizational Change, Psychological Safety, Pakistan, Leadership Styles