While transformational and transactional leadership are key drivers of performance in public organizations, their effects on organizational effectiveness depend on structural conditions. This study examines organizational effectiveness—measured as agencies’ reported goal attainment—and analyzes how the span of control, an indicator of the structural distance between leaders and subordinates, moderates the relationship between these leadership styles and effectiveness. Drawing on panel data from U.S. federal agencies, the analysis shows that transformational leadership is positively associated with effectiveness, whereas transactional leadership is negatively associated with it. Moreover, transformational leadership relates more strongly to effectiveness under narrow spans of control, where supervisors provide more personalized attention, whereas transactional leadership is more effective under broader spans that rely on standardized oversight. These findings clarify how leadership approaches can align with organizational structures to enhance public sector effectiveness.
Lim et al. (Sun,) studied this question.