Effect of Leadership Style Toward Organizational Performance: A Case Study of Royal Malaysian Navy

National security is one of the important aspects that Malaysian’s government was extremely concerned. Each year, certain amount of budget is allocated for national defence security purposes either for purchasing new equipments or providing training and development for the military. Many of the officers in military are sent to higher education learning institution to gain knowledge for themselves in order for them to build up their personal characteristic and better manage their followers. As a result, this research will provide depth insight to the importance and effects of transactional and transformational leadership style to the organizational performance. Primary data are collected through semi structured interviews with randomly chosen ship commanding officers. Meanwhile secondary data are collected from various sources such as from Royal Malaysian Navy Inspection Team’s report regarding the performance score of each chosen ship commanding officer. Results obtained shows that the combination of transactional and transformational leadership style’s characteristic achieved higher performance scores. Therefore, Royal Malaysian Navy (RMN) should recognize the leadership style which best fit for ship commanding officers in order to improve the organizational effectiveness, efficiency and performance.