AbstractPublic Sector Enterprises are meant for social transformation and stable functioning before globalization era. The scenario has been changed after globalisation in India. Many private players and MNC’s with Direct foreign investments entered into Strategic sector also. Due to this even the core areas in Public Sector domain has been privatised.
Government policies, have made DPSUs to face stiff competition from among them, private sectors and MNCs. A sea change has taken place for the DPSUs also. Accordingly, select DPSU has transitioned from monopolistic environment to competitive environment from private players in the missile manufacturing domain and facing a volatile environment to compete in the competitive environment for its products to deliver to the suppliers at a cost-effective manner. Hence, a need is felt to implement change management practices to augment organizational effectiveness and performance for its sustainability. The researcher thought that Leadership is one of the dominant factors for organizational performance and sustainability. Therefore a case study of a Defence PSU has been undertaken to identify the leadership styles and its relation to organizational performance. The results show that there is a relationship exists between leadership styles and organizational performance.