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Navigating Leadership in Multicultural Workplaces: The Impact of Transformational, Transactional and Laissez- Faire Leadership on Team Interactions

Cerasoli, Emma LU (2025) SKOM12 20241
Department of Strategic Communication
Abstract
As globalization increasingly shapes modern workplaces, multicultural teams
have become a standard feature. While such teams bring diverse perspectives and
enhance problem-solving capabilities, they also face persistent challenges in
communication, trust, and collaboration. Leadership plays a decisive role in
determining whether diversity fosters synergy or results in fragmentation. This
study examines the impact of transformational, transactional, and laissez-faire
leadership on interactions in multicultural work environments, using trust,
behavioral engagement, and cognitive engagement as key measures. Findings
highlight transformational leadership as the most effective style, as it fosters open
communication, a shared vision,... (More)
As globalization increasingly shapes modern workplaces, multicultural teams
have become a standard feature. While such teams bring diverse perspectives and
enhance problem-solving capabilities, they also face persistent challenges in
communication, trust, and collaboration. Leadership plays a decisive role in
determining whether diversity fosters synergy or results in fragmentation. This
study examines the impact of transformational, transactional, and laissez-faire
leadership on interactions in multicultural work environments, using trust,
behavioral engagement, and cognitive engagement as key measures. Findings
highlight transformational leadership as the most effective style, as it fosters open
communication, a shared vision, and active participation. This leadership approach
cultivates an inclusive and dynamic work environment where diverse perspectives
are integrated, innovation flourishes, and collaboration is sustained. In contrast,
transactional leadership, while providing structure and clear expectations, proves
rigid and limits adaptability, often reducing engagement to passive compliance
rather than proactive collaboration. Laissez-faire leadership, despite encouraging
autonomy, frequently results in disengagement, misalignment, and inconsistent
participation, particularly in teams that require greater direction and support. By
integrating Hofstede’s cultural dimensions and Adler’s cultural synergy model, this
study demonstrates how transformational leadership effectively aligns with the
demands of multicultural teams. The results suggest that organizations seeking to
optimize performance should prioritize transformational leadership strategies that
actively foster trust, enhance engagement, and leverage cultural diversity as a
valuable asset, rather than relying solely on transactional structures or laissez-faire
autonomy. (Less)
Please use this url to cite or link to this publication:
author
Cerasoli, Emma LU
supervisor
organization
course
SKOM12 20241
year
type
H2 - Master's Degree (Two Years)
subject
keywords
multicultural teams, leadership styles, employees, trust, cognitive engagement, behavioural engagement
language
English
id
9187158
date added to LUP
2025-03-28 09:06:43
date last changed
2025-03-28 09:06:43
@misc{9187158,
  abstract     = {{As globalization increasingly shapes modern workplaces, multicultural teams
have become a standard feature. While such teams bring diverse perspectives and
enhance problem-solving capabilities, they also face persistent challenges in
communication, trust, and collaboration. Leadership plays a decisive role in
determining whether diversity fosters synergy or results in fragmentation. This
study examines the impact of transformational, transactional, and laissez-faire
leadership on interactions in multicultural work environments, using trust,
behavioral engagement, and cognitive engagement as key measures. Findings
highlight transformational leadership as the most effective style, as it fosters open
communication, a shared vision, and active participation. This leadership approach
cultivates an inclusive and dynamic work environment where diverse perspectives
are integrated, innovation flourishes, and collaboration is sustained. In contrast,
transactional leadership, while providing structure and clear expectations, proves
rigid and limits adaptability, often reducing engagement to passive compliance
rather than proactive collaboration. Laissez-faire leadership, despite encouraging
autonomy, frequently results in disengagement, misalignment, and inconsistent
participation, particularly in teams that require greater direction and support. By
integrating Hofstede’s cultural dimensions and Adler’s cultural synergy model, this
study demonstrates how transformational leadership effectively aligns with the
demands of multicultural teams. The results suggest that organizations seeking to
optimize performance should prioritize transformational leadership strategies that
actively foster trust, enhance engagement, and leverage cultural diversity as a
valuable asset, rather than relying solely on transactional structures or laissez-faire
autonomy.}},
  author       = {{Cerasoli, Emma}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Navigating Leadership in Multicultural Workplaces: The Impact of Transformational, Transactional and Laissez- Faire Leadership on Team Interactions}},
  year         = {{2025}},
}