INFLUENCE OF LEADERSHIP STYLES ON HUMAN RESOURCE EFFECTIVENESS IN PROJECT-BASED ORGANIZATIONS

Abstract

Project-based organizations (PBOs) represent a dynamic organizational model where leadership plays a pivotal role in aligning human resources (HR) with strategic objectives to achieve project success. This study examines the influence of various leadership styles transformational, transactional, laissez-faire, servant, and digital on human resource effectiveness within PBOs. Drawing upon Social Exchange Theory (SET) and Leader-Member Exchange (LMX) frameworks, the research highlights how high-quality leader-member relationships enhance team performance, motivation, and retention. The study also explores the mediating roles of team-building practices, knowledge management, and ambidextrous leadership in complex and virtual project environments. Findings suggest that transformational and servant leadership styles significantly enhance HR effectiveness, project resilience, and organizational outcomes, whereas laissez-faire approaches often hinder performance. The study emphasizes the critical interplay between leadership, organizational structure, and human capital management for achieving sustainable project success.