Employee Perceived Effect of Leadership Training: Comparing Public and Private Organizations

ABSTRACT: This study reports on the effectiveness of a year-long field experiment involving training in transformational and transactional leadership in the public and private sectors. Using before and after training assessments by employees of several hundred Danish leaders, the analysis shows that transformational leadership training is associated with increases in behaviors linked to both transformational leadership and the use of verbal rewards, but only for public sector organizations. There is no impact in private sector organizations. Transactional leadership training appears to be equally effective in stimulating the use of pecuniary rewards in both public and private organizations.