American Journal of Business Management, Economics and Banking ISSN (E): 2832-8078 Volume 9, | Feb., 2023 P a g e | 33 www.americanjournal.org THE IMPACT OF LEADERSHIP STYLES ON ORGANIZATIONAL PERFORMANCE FOR YEMENI PHARMACEUTICAL COMPANIES: THE MEDIATING ROLE OF JOB SATISFACTION Aziz Abdulla Muthana Hussain, Researcher, Faculty of Business, Amman Arab University, Jordan azizabdulla1990a@gmail.com Malek Alharafsheh Assistant Professor, Business Department, Faculty of Business, Amman Arab University, Jordan, alserhan@aau.edu.jo. malekibrahimalharafsheh@gmail.com. 0000-0001-5952-0156 A B S T R A C T K E Y W O R D S This study aimed to identify the impact of leadership styles on the organizational performance of Yemeni pharmaceutical companies, with job satisfaction as a mediating variable, the study used the Comparative method of previous studies that dealt with the field of research. The study reached a set of results, the most prominent of which were: the existence of an average level for each of the styles of leadership (transformational, democratic, servant, and participatory), and the existence of an average level of organizational performance and job satisfaction in Yemeni pharmaceutical companies. In the light of the results, the study recommended the need for managers in Yemeni pharmaceutical companies to do everything that would increase, develop and improve the practice of transformational leadership because of the features and characteristics that affect the behavior of leaders and their actions with all parties within the company environment, and focus on involving employees in decision-making. The importance of participatory leadership in increasing employees' self-confidence, which in turn is reflected in achieving excellence in performance. Leadership Styles, Organizational Performance, Yemeni, Job Satisfaction 1. Introduction Leadership is one of the basic administrative functions, which makes various efforts towards directing the efforts of individuals working in the organization, in order to achieve specific goals, whether at the level of the worker or the organization (Rahi et al., 2021). Quality in developing administrative work in the organization, and facing internal and external challenges affecting the work of the organization, where the leadership style followed by the leaders of the organization plays the main factor in the success of organizations, because the administrative leader has a prominent role in influencing the behavior of workers, as he is the link between workers And between the plans of the organization and its future perceptions, and the forces that control work problems and solve them, and keeping pace American Journal of Business Management, Economics and Banking Volume 9 Feb., 2023 P a g e | 34 www.americanjournal.org with the surrounding changes and employing them to serve the organization (Al- Samirae et al., 2020; Alomari et al., 2019). In view of the accelerating changes, the leadership of organizations today has had to evolve in accordance with these changes in their internal and external environment. appropriate, leaders and organizations have a variety of styles of leadership, and at the same time these styles may not fit with the organization's environment, or with its employees, and therefore the administrative leader in the organization must follow or have an appropriate style or style of leadership (Berger et al., 2019). Job satisfaction plays an important role in influencing the performance of the organization, through achieving their psychological feeling of contentment, satisfaction and happiness to satisfy needs, desires and expectations with the work itself and the work environment on the one hand, and with confidence, loyalty and belonging to the work and with the relevant internal and external environmental factors and influences on the other hand, In conclusion, the success of the organization is closely related to the members of that organization, the positivity of its members working in it, and the achievement of its goals depends primarily on the leadership style followed by the manager or leader in influencing the direction of the behavior of workers in order to achieve the goals of the organization on the one hand, and influencing the satisfaction of its employees, which It is reflected in their performance, and thus the performance of the organization (Belias & Koustelios, 2014; Lehyeh et al., 2020). Accordingly, this study comes to clarify and demonstrate the impact of leadership styles on organizational performance through job satisfaction as a mediating variable in Yemeni pharmaceutical companies. 2. Previous studies: This part dealt with theoretical literature related to the variables of the study, which are leadership styles and organizational performance among workers in Yemeni pharmaceutical companies. Depending on the method of comparison and through the figure below, we find an explanation of the most important compositions of the study. Figure 1: Study set-up diagram There were many studies that analyzed the phenomenon of administrative leadership, and its impact on various economic aspects, and they agreed among themselves on one thing, which is that leadership has a great impact on the individual and the organization on the one hand, and on society as a whole (Habes et al., 2023). As administrative leadership is linked to directing the behavior of individuals in organizations, coordinating their efforts and balancing their motives And their needs in order to reach the group to achieve the goals of the organization with high efficiency, and to him the success of the institution in achieving its goals and mission is closely related to how the leader manages, and the pattern, method and method of leadership that he exercises, as well as the characteristics, characteristics and qualities of successful leadership that are represented in his personality and his Leadership Styles Organizational Performance Job Satisfaction American Journal of Business Management, Economics and Banking Volume 9 Feb., 2023 P a g e | 35 www.americanjournal.org ability to employ his capabilities towards work Building by building positive human relations between workers, improving their work performance, motivating them to give continuously, and managing the organization's affairs in general (Lehyeh et al., 2020). 2.2 Leadership Styles In this modern era, which is characterized by rapid change and progress at all technological, technical, industrial, economic and other levels, organizations are exposed to environmental pressures that force them to change in all their systems, methods, and administrative and leadership methods in order to keep up with this change (Muhaisen, 2020; Saputra & Mahaputra, 2022). Transforming the direction of work culture from the old to the new, and in this regard it was necessary to address leadership styles in order to understand the complexities and clarity of vision related to the development of organizations (Kesting et al., 2015). Leadership styles are seen as “a combination of various and multiple characteristics, traits, behaviors, and practices that leaders use to interact with their subordinates, and with individuals working in the same organization” (Colquitt et al., 2014). In light of the above, leadership is one of the most important factors leading to improving work efficiency in our social life, and most leaders are fully aware of the importance of the impact of leadership styles on employee satisfaction and the organization's revenues in general. Leadership is the main weapon of the organization, and through it, managers can be able to achieve goals and work productivity for organizations (Choi, 2021). Busari et al., (2020) summarized the types of leadership styles that must be adopted by leaders in light of the data of modern management, and these types will be adopted in the current study as follows: 1- Transformational Leadership Transformational leadership has recently gained attention from writers and administrators, as scholars see transformational leadership as one of the most popular patterns in recent times, as it aims to explain the unusual influences of some leaders on the behaviors of their followers. Transformational leaders are leaders who have the ability to raise the level of motivation. In individuals, and raising the level of their work from the personal level to the collective or organizational level, the fact that the transformational leader can transform the orientations of his followers towards focusing attention on collective interests, which makes them feel effective in serving and achieving the goals of the group and the organization (Habes et al., 2018; Wright et al., 2012). Transformational leadership is defined as "the method adopted by the leader to influence the behavior of his followers, whether they are individuals or groups, in the light of having a clear vision that expresses the organization's mission and goals, in addition to his ability to create excitement among his subordinates in a way that can gain their trust and loyalty" (Dias et al., 2019). The importance of leadership emerges as an idea oriented towards fundamental goals that lies in inspiring workers to work in a harmonious manner with the aim of building an organization based on a value base, by setting values that work to bring about changes in its culture and beliefs, and contribute to setting standards for organizational performance within an integrated and coherent format that makes it capable of responding Effective actors of internal and external changes. Contemporary organizations face, in essence, the needs and desires of their employees and those who deal with them, which requires the presence of leaders who have characteristics, values and beliefs that differ radically from the characteristics of traditional leadership so that they are able to employ effective resources, technologies and information systems (Rey et al., American Journal of Business Management, Economics and Banking Volume 9 Feb., 2023 P a g e | 36 www.americanjournal.org 2019). And the leadership of the organization in all competitive conditions, as the effective organizations are flexible and innovative and adopt clear strategies for change and excellence. Most studies revealed that transformational leadership works by (Uusi-Kakkuri, 2017) Raising performance levels and Effective response to changes in the organizations' work environment, finally Raising the level of confidence of employees in the organization, making them aware of the spirit of citizenship and belonging, and instilling a spirit of motivation in them with the aim of achieving outstanding performance. 2- Participatory leadership Participation is a process through which the individual obtains greater freedom in making decisions within the scope of his work, while it is considered a process of mental and emotional integration of individuals in the conditions of the group that contribute to encouraging them to achieve its goals and share responsibility with them from a behavioral perspective (Banjarnahor et al., 2018). Participatory leadership is defined as "the process of leaders' participation of workers, by delegating leadership tasks, making appropriate decisions at the right time in an atmosphere of mutual respect, constructive cooperation, and proper planning in order to achieve the desired goals” (Rogiest et al., 2018). The importance of participatory leadership appears because of its important role in achieving the goals of the organization. Participatory leadership is considered one of the most important leadership styles due to its benefit from previous leadership styles, and it focused on the participation of employees in decision-making (Sebastian & Moon, 2017). Nyambura, (2021) stressed that the importance of participatory leadership is through its ability to raise the morale of workers, which makes them more cooperative and responsive to orders necessary for implementation. (Rhee & Sigler, 2015) mentioned a number of aspects that highlight the importance of participatory leadership, as follows: 1. Commitment to the principles of participatory leadership in organizations leads to the continuous development of the organization, which ensures its continuity, for its ability to apply the principles of permanent dialogues during decision-making away from the private interests of some of the organization's employees. 2. It is considered one of the most important administrative methods followed by modern organizations, as it meets the needs of advanced organizations and pushes their leaders to assume more responsibilities. In view of the loyalty, trust and mutual respect achieved by participatory leadership between leaders and workers, and workers among each other. 3. Create an atmosphere of agreement and positivity among individuals at all levels within the organization. 4. The tasks of the employees are distributed in a way that guarantees the quality of the organization's outputs, especially by following the principles of leadership distribution among qualified employees, and giving them sufficient powers to achieve the organization's goals. 5. It works to develop the organization faster and better, and achieve competitive advantage at the level of international organizations. 3. Democratic leadership Democratic leadership is a leadership style that depends on the leader’s focus on basic foundations, the most prominent of which are taking into account human relations, participation, delegation of authority, and sound relations with employees and subordinates in the organization, as the practice of American Journal of Business Management, Economics and Banking Volume 9 Feb., 2023 P a g e | 37 www.americanjournal.org democratic leadership contributes to satisfying the needs and desires of workers, and providing them with opportunities to participate in Thinking and expressing opinions in a psychological climate characterized by reassurance and a sense of freedom and comfort, which is reflected in their level of productivity towards work performance (Maloş, 2012). Democratic leadership leads to raising the morale of workers, doubling their productive capacity, as well as stimulating the spirit of initiative to carry out tasks, deeds and responsibilities with dedication, and developing the ability to show a spirit of creativity and innovation. A leader who understands the feelings of workers, is interested in knowing and realizing the problems facing them, and seeks to find appropriate solutions to solve them. the leader who seeks to satisfy the human, psychological and social needs and desires of workers, which drives them. To loyalty to him and to accomplish what he asks of them in high spirits (Kilicoglu, 2018). The tasks or responsibilities entrusted to the employees of the organization, whatever their nature in terms of implementation, are carried out with a high degree of accuracy and speed, as the leader’s relationship is good with the employees, as the effectiveness will be high on their part. Democratic leaders who care deeply about including all team members in the discussion and can work with a small but highly motivated team. The democratic style of leadership is the most effective (Caillier, 2020). 4. Servant Leadership Servant leadership is defined as “a practical philosophy that the leader adopts to support others, and seeks to serve them, by employing all available sources of power and harnessing them to help others” (Lee et al., 2018). Servant leadership is a style of leadership in which the leader seeks to carry out practices and tasks in order to develop individuals in order to develop the organization in the first place, through his use of authority in a fair and transparent manner. To achieve the general interest of working individuals, believing that his success is linked to hard and tireless work for and with others (Aboramadan et al., 2022). The importance of the leader having a servant leadership style is evident in his ability to empower his workers instead of following a method of control and domination with them, in addition to his ability to follow all appropriate means and methods in convincing them of decisions related to work performance instead of following a policy of coercion and repression, as well as encouraging them in a soft and understanding manner. To participate and be creative in performing the tasks and activities entrusted to them, in order to achieve consensus in taking opinions within the work team, as he does not seek to obtain special privileges or personal interests, or to self-ranking, but rather he is always thinking about what is in the interest of the organization, so he always seeks to Consider helping others in pursuit of organizational goals in general (Jorge Correia de Sousa & Van Dierendonck, 2014). 2.2 Organizational Performance The business environment in this modern era is witnessing rapid changes in various fields (Alghizzawi, 2019b), as well as challenges on the local and global scale as a result of technological, economic and knowledge development (Alghizzawi, 2019a). Therefore, the management of organizations must pay attention to following up the organizational performance, as the performance on an ongoing basis needs continuous evaluation in order to identify its strengths and then develop and develop it, and its shortcomings and then correct them in a timely manner (Alawneh & Al-Zoubi, 2020; AlghzawI et al., 2020). Performance is the common denominator of the efforts of individuals working within any organization, and it is an essential concept for business organizations, whatever the nature of their American Journal of Business Management, Economics and Banking Volume 9 Feb., 2023 P a g e | 38 www.americanjournal.org work, as performance is mainly linked to the strength of the organization, and it comes as a result of successful management trends; It looks at optimal performance through emphasizing and insisting on administrative and operational practices that improve the overall performance of the organization (Katzenbach & Smith, 2015). Organizational performance is an organization of all the efforts made by all parties in the organization, whether by management, leaders, or workers and employees, so the concept of performance is important and essential for all organizations in general (Aloisi & De Stefano, 2022). Organizational performance is classified according to a set of criteria, which were identified by (Al- dalahmeh et al., 2018) with the following criteria: 1) Criterion of the internal and external environment of the organization: The performance of any organization depends on the interaction between its internal and external environment, as the performance of the internal environment of the organization is pivotally linked to the quality of human resources performance or technical performance (methods, means, technical and technical methods, tools and mechanisms used in performing work) or financial (output), and everything The organization controls it, influences it, and is also affected by it in terms of all activities and functions, the most important of which are: production, administrative operations, financing, and others. Thus, it is the result of interaction of all types of performance of systems in the organization. As for the performance of the external environment of the organization: it is represented by the performance of all the surrounding factors that affect, in one way or another, the performance of the organization, whether positively or negatively. 2) Time Standard: Performance is classified according to time into the short term and the medium term, each of which relates to several aspects that all contribute to achieving the goals of the organization, so that performance is taken into account in the short term, which is the ability of the organization to generate outputs in accordance with the requirements of the external environment, and the efficiency of Performing work, which is represented in the ratio of inputs and outputs, as well as achieving satisfaction through the interaction of individuals within a specific system, which in turn contributes to achieving psychological and social security for workers within the organization’s environment. to appropriate solutions. 3) Functional Criterion: This criterion is represented in the organization's performance of all aspects related to work performance and the achievement of the goals it seeks, which is represented in the organization's ability to improve its production level, and achieve the satisfaction of its clients, by building reputable relationships between them. In addition to the organization's ability to achieve financial balance, and to build an effective financial structure that achieves the greatest return on it from the benefits of profitability. In addition, the organization's ability to control the required quality standards in its services or products, in choosing the appropriate work method, providing an appropriate work environment, selecting qualified workers, and continuous periodic follow-up and evaluation. American Journal of Business Management, Economics and Banking Volume 9 Feb., 2023 P a g e | 39 www.americanjournal.org 2.3 Job Satisfaction Job satisfaction in the organizational psychology literature is the most extensively researched field, as various methods of employee satisfaction have been found by scholars and facilitated for the management of organizations; Job satisfaction has a direct impact on the level of absenteeism, commitment, performance and productivity of workers (Rahi et al., n.d.). Moreover, job satisfaction improves the level of employee retention and reduces the cost of hiring new employees. Moreover, the result of job dissatisfaction is to increase the cost of recruitment, selection and training, discourage existing employees and reduce the growth of the organization, and the lack of employee satisfaction is reflected negatively on the efficiency of the organization (Al-Shibly et al., 2019; Alghizzawi et al., 2019; Ali & Farooqi, 2014; Alnawafleh et al., 2019). The subject of job satisfaction is one of the important topics that preoccupied the thinking of scholars, specialists, and researchers in psychology and management, and given the psychological, social, and economic returns that accompany job satisfaction, and at the same time it is reflected in turn on the work and job commitment of employees in the organization, satisfaction represents the strongest returns and the greatest influence and is linked to some Personal variables, including the type of motives, needs, incentives, job level, educational level, wages, etc. Also, whenever there is a strong feeling among the worker that his work achieves great satisfaction for his needs, the more his feelings towards work will be positive, and whenever he thinks that his work does not achieve this appropriate satisfaction of his needs, the more he thinks that he His work deprives him of this satisfaction (Mohammed et al., 2022). The importance of job satisfaction lies in what workers with high skills and distinguished competencies become, with what is called complete satisfaction with their presence in the organization and their affiliation with it, to become a title that expresses their job satisfaction, which increases their loyalty and achieves a competitive advantage and value for the organization, as the individual works within his organization between the work group and that In it, the role that he plays is determined, as he works through a set of internal feelings that give a clear picture of satisfaction with the work that he does, and satisfaction is the result of a group of different attitudes that the individual holds towards his profession and towards factors related to it and life in general. Job satisfaction is alongside motivation The level of performance has a clear impact on organizing behavior and organizational commitment within the organization and raising its efficiency (Amin, 2022). 3. Methods The current study followed the approach based on reviewing the relevant previous literature (Alghizzawi et al., 2018; Rahi et al., 2019; Salloum et al., 2021) in research structures related to job satisfaction, leadership, and finally organizational performance. 4. Discussions Through reviewing the previous studies, it is clear that all previous studies are studies that dealt with different topics (Aboramadan et al., 2022; Al-dalahmeh et al., 2018; Ali & Farooqi, 2014; Amin, 2022; Jorge Correia de Sousa & Van Dierendonck, 2014; Lee et al., 2018; Maloş, 2012; Mohammed et al., 2022; Nyambura, 2021) some of which dealt with the issue of leadership styles and job performance, and some of them dealt with the issue of leadership styles and job satisfaction, and some of them dealt with one style of leadership styles and job performance, and some dealt with a group Of leadership styles and job performance, and we note from that that these studies differed in the goal that is only American Journal of Business Management, Economics and Banking Volume 9 Feb., 2023 P a g e | 40 www.americanjournal.org achieved while the current study is unique from previous studies in that it dealt with three variables that have multiple dimensions combined in one topic, which is the effect of leadership styles on organizational performance with the presence of job satisfaction as a mediating variable. 5. Conclusions The leadership patterns at the level of job satisfaction exist in the presence of job satisfaction, where the existence of job satisfaction contributed to explaining the positive relationship between these two variables, and this result explains that the leadership style practiced by the leader in dealing with employees in the company leads to an increase in the level of organizational performance in terms of interest in the level of development. training, efficiency, effectiveness and quality. In other words, the leader’s practice of positive and appropriate leadership patterns in dealing with the employees of the company increases the level of their influence on him and their acceptance to perform their tasks and responsibilities. Work in a spirit of dedication, loyalty and belonging, which makes them work with all their energies towards the performance of their work, in addition to doing everything possible in order to achieve the goals of the company in which they work, and this matter also expresses that these workers have a sense of job satisfaction, as they Leaders' practice of positive leadership patterns with employees increases their level of satisfaction with work in the company, and this also motivates them to be responsible. Jah perform their work in the best way. finally conclude from the foregoing that the leadership style followed by the leader in the organization in general has a significant impact on the performance of the organization. At the same time, the leadership style followed by the leader is the one that contributes to achieving the level of job satisfaction among the employees. The leader is the person directly responsible for dealing with the employees. It is the link between working individuals and the plans of the organization, and it is the basis around which the implementation of procedures and policies in the organization revolves. Therefore, he must adopt leadership practices that support the positive force within the work environment, reduce the negative aspects, and provide workers with all safe environmental conditions that make them feel job satisfaction, and motivate and motivate them to perform their best towards their work in a distinctive way. 6. Recommendation In light of the results reached; The study proposes a set of recommendations, after stating the findings of previous studies that looked at this field. Accordingly, there is a need for managers in Yemeni pharmaceutical companies to do everything necessary to increase the practice of transformational leadership because of its characteristics and characteristics that affect the behavior of leaders and their actions with all parties within the company's environment. 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