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

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.