How do different leadership styles affect employee motivation in a diverse and multicultural workspace?

Below can be found the Executive Summary of this article written by Liv Heinemann. To read the rest, click here: A Dissertation, Submitted to Regent’s University London

EXECUTIVE SUMMARY

As workplaces become more interconnected, leadership is essential for influencing employee motivation and engagement in diverse workplaces (Cote, 2023). However, current leadership models neglect the contexts in which cultural and industry-specific factors work together to affect leadership effectiveness.

Previous research has focused on leadership styles within homogenous organizational environments (Bass & Avolio, 1993) or has looked at cultural aspects separately, without considering how leadership effectiveness varies across different cultures as well as industries (Harris, 2024). This highlights an important gap in understanding how different leadership styles affect employee motivation in different contexts (Ignicievic, 2025).

Research aim:

The study aims to explore how different leadership styles impact employee motivation in culturally diverse settings.

Research Question:

How do different leadership styles affect employee motivation in a diverse and multicultural workspace?

Research Objectives:

1.To define leadership and identify the various leadership styles.

2.To define motivation in the context of a diverse and multicultural workforce and determine the measurement criteria.

3.To examine the link between leadership styles and employee motivation in multicultural environments.

This research seeks to address this gap by exploring how different leadership styles affect employee motivation in diverse workplaces.The research consists of a mixed-methods approach. Quantitative survey data from 608 employees from various cultural backgrounds has been integrated with insights from 17 interviews conducted with their Leaders. The survey included 64.27% employees, 31.39% team leaders, and 4.34% senior leaders among the respondents. This two-method approach enables a comparison of leadership effectiveness from both employee and leader viewpoints, providing a clearer and more practical understanding of leadership in diverse cultural environments.

The findings show that transformational leadership is the most preferred style, specifically in Europe and North America, where traits of participative and visionary leadership are greatly appreciated. In high power-distance cultures like Asia and the Middle East, transactional and paternalistic leadership models are still prevalent. Differences specific to each industry influence how effective leadership can be. In finance and consulting, a directive and results-driven approach is preferred, while in creative and knowledge-based fields like technology and education, servant leadership tends to be more effective.This research highlights that intrinsic motivators, like trust, autonomy, and purpose, significantly influence employee engagement more than financial incentives do. Employees in education and technology preferred leadership that is driven by purpose, whereas those in finance and consulting valued leadership that is structured and results-oriented.

One important limitation of this study is that it relies on self-reported data, which could lead to bias in the perceptions of leadership effectiveness among employees and leaders. Future research might use observational methods or experimental designs to further validate these findings.

One significant challenge for global leaders is finding the right balance between consistent leadership and cultural adaptability. Leaders often face difficulties in staying true to themselves while also modifying their approach to fit various cultural settings. This research fills this gap by combining cultural and industry-specific factors into models of leadership effectiveness, providing a flexible and responsive framework for managing multicultural teams. This approach expands on Maslow’s Hierarchy of Needs, Herzberg’s Two-Factor Theory, Hofstede’s Cultural Dimensions, and Winkler & Bramwell’s Connectedness leadership framework (2023). It contributes to existing leadership theories by including real-world complexities that have not been explored before. The study offers clear recommendations to create adaptive leadership strategies that improve engagement and inclusivity in diverse teams. Further studies could research further how adaptive leadership strategies affect employee retention and organizational performance long term, specifically in fast changing industries where cultural diversity plays an important role in driving innovation and competitiveness.