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Organizational effectiveness is essential in today’s fast growing organizations where competitiveness is the main feature of the contemporary business. Leadership is the main determinant of organizational effectiveness and is the major identifier of an engaged workforce. The most common leadership style is the Traditional leadership style which is administered in almost all companies of the Petroleum Sector in Egypt with its public companies, joint companies and even part of the investment companies, a leadership style enforcing the concepts of power and authority. The traditional leadership style aims to keep things the same and doesn’t promote the engagement of the employees that is not part of their job descriptions and emerges as a result of personal choices.leadership style applied in the petroleum companies needs to evolve from the traditional approach. It needs to apply leadership styles where the leader is capable of transforming and developing his employees’ behaviors and benefiting from their efforts would achieve positive contribution to overall organizational effectiveness. This should be through adopting an attitude that supports and enhances motivation and performance of his followers allowing them to exceed their own expectations optimizing their performance to achieve such effectiveness.In some cases, transactional leadership is administered where the leader promotes compliance of his followers through both rewards and punishments and is not looking to change the future. This type of leadership focuses on getting the work done by their followers. Transactional leadership works within the organization culture through management by exception to maintain status quo and stress corrective actions to improve performance.


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