The study of effective leadership styles in Mongolian companies

Abstract

The development prospects and economic situation in Mongolia have been analyzed. The issue of the low level of economic freedom due to inefficient management has been identified. It hinders the development of the country as a whole and of individual companies in particular. The research has substantiated that the primary task of the management of companies is to determine the most effective style of leadership, taking into account national peculiarities. A sociological survey has been conducted which has determined the characteristics of personnel management in companies of Mongolia and Europe. The level of employee motivation and competences in Europe and Mongolia has been studied. The results of the questionnaire data processing have shown that the highest level of motivation of employees is in European companies. This indicates a higher level of management compared to Mongolia, which positively affects labor productivity and the efficiency of companies. In Mongolia, the majority of respondents have a medium level of competences, which requires greater involvement of the manager in the formation of a competent and motivated employee. In Europe, the level of competence is high. A high level of competences combined with a high level of motivation indicates the effectiveness of personnel management. Effective leadership styles have been defined by the proposed methodology on the basis of the study of motivation level, employees' competences, company life cycle. Comparison of effective and actual styles of leadership has been made, the causes of their inconsistency and threats to the company efficiency have been revealed. In European companies, a liberal style of leadership predominates, which is justified, since the actual leadership style corresponds to the effective style. In Mongolia, with a medium level of employee motivation and competence, an effective style of leadership for the majority of respondents is the democratic one, while the authoritarian style actually prevails.