Leadership Style in Relation to Organizational Change and Organizational Creativity: Perceptions from Nonprofit Organizational Members

Abstract

Abstract As the environment within which organizations act continues to change and becomes increasingly competitive, maintaining an organizational climate that supports change and encourages creativity is a key objective for organizational leaders. This article examines the relationship between leadership style (transformational, transactional, laissez‐faire) and members' perceptions of the psychological climate for organizational change readiness and psychological climate for organizational creativity. Results indicate that transformational leaders have a direct positive relationship with psychological climate for organizational change readiness and organizational creativity, while laissez‐faire leaders have a negative relationship.

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