Effective leaders are enablers that directly point to competent and committed employees. The purpose of this study was to investigate the relationship between leadership styles and different types of organizational commitment in the Public Service Organization of Ethiopia: The case of Yeka Sub City Administration of Addis Ababa.
Information was gathered, using two instruments, questionnaire and interview, from a total sample of 297, 40 leaders and 257 employees or raters. Leadership styles were identified as the independent variable and organizational commitment as the dependent variable. Data obtained from each of the research instruments was statistically analyzed, and then triangulated using purposive sampling method from four key interviewees.
Data were analyzed using both descriptive and inferential statistics. Descriptive statistics such as frequency counts, percentages, mean and standard deviations were used while inferential statistics such as t-test and a two tailed Pearson correlation were used.
TABLE OF CONTENTS
ACKNOWLEDGEMENTS
AUTHOR’S BIOGRAPHY
DEDICATION
TABLE OF CONTENTS
LIST OF ANNEXES
ACRONYMS
LIST OF FIGURES
LIST OF TABLES
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study
1.2 Statement of the Problem
1.3 Purpose of the Study
1.4 Objective of the Study
1.5 Research Questions
1.6 Significance of the Study
1.7 Limitation of the Study
1.8 Scope of the Study
1.9 Operational Definition of Terms
1.10 Organization of the Study
CHAPTER TWO: REVIEW OF LITERATURE
2 Introduction
2.0 The Concept of Leadership
2.1 Leadership versus Management
2.2 Leadership Theories
2.3 Full Range Leadership Styles
2.4 Organizational Commitment
2.5 The Three Components of Organizational Commitment
2.6 The Relationship between Leadership styles and Employee Commitment
2.7 Conceptual Framework
CHAPTER THREE: RESEARCH METHODOLOGY
3.0 Introduction
3.1 Description of the Study Area
3.2 Rationale of the Study
3.3 Research Design and Approach
3.4 Operational Definition of Variables
3.5 Sample Design
3.6 Reliability and Validity
3.7 Method of Data Analysis
3.8 Ethical Considerations
CHAPTER FOUR: ANALYSIS, INTERPRETATION AND DISCUSSION OF FINDINGS
4.1 Introduction
4.2 Response Rate
4.3 Validity and Reliability of the Instrument
4.4 Quantitative Data Analysis
4.5 Qualitative Data Analysis
CHAPTER FIVE: SUMMERY, CONCLUSION AND RECOMMENDATIONS
5.1 Introduction
5.2 Reliability of the Findings
5.3 Summery of the Results
5.4 Conclusion
5.5 Recommendations
References
Annex I
Annex II
ACKNOWLEDGEMENTS
Foremost, I would like to thank the God for his love, protection, and blessing me with health life opportunities including the opportunities for this study.
My appreciation and indebtedness goes to Dr. Teshome Tafesse (Associate Prof.), who has been closely following up and giving invaluable direction, help and correction to the proposal up to its accomplishment. Dr., thank you for your guidance, encouragement, and invaluable comments throughout this thesis. I am so honored that you agreed to advise me and I am truly grateful for your positive words of encouragement.
Furthermore, I would like to thank the following individuals, without whom this research would not have been successful:
- All employees from Yeka Sub City Administration who took the time to complete all questionnaires.
- Teshome Mengesha, CEO for commenting both the English and Amharic version of employee Commitment Questionnaire and Multifactor Leadership Questionnaire.
- Demelash Meko for commenting and proofreading the document.
Next thanks will go to change army team members, my dear friends, who are always kind to me and their encouragement and moral support is always before my eyes during my stay at ECSU.
The other most great and sincere thank will go to my life partner Mekedes Tesfaye, who has been drenching my life with unfailing love and passion. Mekedes, you have been patient and courageous when I took your time and being busy with my study times. Last but not least, I am also indebted to my family members, friends and individuals who in one or other way contributed and supported me immensely to complete my education.
AUTHOR’S BIOGRAPHY
The Author was born in 1983 at Meki Town, Dugda Bora Woreda, East Sewa Zone, and Oromia Region. He was attended his Primary education in Meki Elementary and Junior School and Secondary education in Aawassa Comprehensive High Secondary School, Awassa SNNPR. He joined Dilla University since 2005 and took his B.Ed. Degree in Physics, October 24, 2008. He has worked at Southern Nation Nationalities People Region, Sidama Zone teaching physics and City Government of Addis Ababa, Yeka Sub City Administration as teaching physics, school Director, public relation consultant of district 04, Chief Executive of the district and also Head, Chief Executive of the Sub city. Totally he has more than 8 Years Teaching and leadership experiences. He has joined the Institute of Leadership and Good Governance, Ethiopian Civil Service University for his post-graduate studies in Leadership and Good Governance in September 2014.
DEDICATION
I would like to dedicate this research to the spirit of my father and mother, whom I wished they could be with us, may God keep their Soul in Heave; to my child Mariamawit, whom I wish a healthy life.
I would also dedicate this study to my wife, Mekedes Tesfaye, who had supported and encouraged me within this journey.
To the soaring educational institute, Institute of Leadership and Good Governance, that pursues admirable quality and ethical knowledge.
To my ESCU, especially to ILG, colleagues; wishing this research would help us all to achieve a more productive, inspiring and innovative team work environment towards excellence.
ABSTRACT
Effective leaders are enablers that directly points to competent and committed employees. Studies in the organizational psychology and organizational behavior literatures have shown that leadership styles and employee commitment are of major factors to the organizational success or failure. The purpose of this study was to investigate the relationship between leadership styles and different types of organisational commitment in the Public Service Organization of Ethiopia: The case of Yeka Sub City Administration of Addis Ababa. Information was gathered, using two instruments, questionnaire and interview, from a total sample of 297, 40 leaders and 257 employees or raters. Leadership styles were identified as the independent variable and organisational commitment as the dependent variable. Data obtained from each of the research instruments was statistically analysed, and then triangulated using purposive sampling method from four key interviewees. Data were analyzed using both descriptive and inferential statistics. Descriptive statistics such as frequency counts, percentages, mean and standard deviations were used while inferential statistics such as t-test and a two tailed Pearson correlation were used. The t-test analysis showed that leaders and subordinates have almost similar perceptions on leadership styles of Yeka Sub City Administration and indicated that transactional leadership style was the dominant one following the laissez-faire and transformational leadership style respectively. The two-tailed correlation analysis further revealed that there is a positive and moderate significant relationship between transactional leadership behaviors and organizational commitment (continuance commitment and normative commitment) but the relationship was weak with affective commitment. Transformational leadership behavior had a weak but significant and positive relationship with affective, continuance and normative commitments. For laissez-faire leadership style, the correlation analysis results indicated that there was negative and significant correlation between laissez-faire and affective commitment whereas weak and significant relationship with normative and continuance commitment. Finally, this study suggested since the dominant leadership was transactional due to this transactional leadership behaviours do play important roles in determining levels of continuance commitment and normative commitment. However, to have affective commitment within the sub city, leaders could use transformational leadership styles too.
Key Words: Leadership Styles, Organizational Commitment and YSCA.
LIST OF ANNEXES
Abbildung in dieser Leseprobe nicht enthalten
ACRONYMS
Abbildung in dieser Leseprobe nicht enthalten
LIST OF FIGURES
Figure 2-1: Conceptual Framework of Leadership Styles and Employee Commitment
Figure 3-1: Administrative map of Addis Ababa city with its 10 sub cities and 116 woredas
Figure 3-2: A schematic Representation of the general Research Design
Figure 4-1: Distribution of Respondents by Sex
Figure 4-2: Distribution of Respondents by Sex
Figure 4-3 a) Leaders Work Experience on Current Position
b) Employees Work experiences with their respective leader
Figure 4-4 a) Educational Backround of Leaders
b) educational Backround of Employees
LIST OF TABLES
Table 2-1 Comparison between Leaders and Managers
Table 2-2: Transformational Leadership Style
Table 2-3: Transactional Leadership Style
Table 3-1: Dependent and Independent Variables
Table 4-1: Cronbach’s Alpha Reliability Coefficients for MLQ Factors (N=297)
Table 4-2: Cronbach’s Alpha Reliability Coefficients for OCQ Factors (N=257)
Table 4-5: Mean and Standard Deviations of Leadership Styles and Employee Commitment for Employee’s Responses
Table 4-6: T-tests results for the MLQ (leaders and employees) responses
Table 4-7: Leader and Employee Responses T-test - Levene’s test for Equality of Variance
Table 4-8: MLQ (leaders and employees) T-test results for equality of mean scores
Table 4-9: Mann-Whitney U-Test for the leader and employee responses
Table 4-10: Pearson correlation Coefficients between leadership styles and employee commitment dimensions
CHAPTER ONE: INTRODUCTION
This chapter deals with the general background, statement of the problem, purposes discussed in the study, objectives and significance of the study. It also consists of the scope and limitation of the study.
1.1 Background of the Study
Human factors play an important role in the organization’s ability to grow and change continuously. One of these factors is the leadership behavior of the management and how it can affect the employees towards organizational commitment and effective performance. The success of any organization is dependent upon the collection of individuals, including leaders and followers, and the amount of effort each individual puts in to it (Hughes, 2005).
Burns (1978) pointed out that leadership is one of the most observed phenomena on earth, but the least understood. It is often regarded as the most critical factor in the success or failure of an institution (Bass, 1990a). However, leaders must understand their impact on employees, and ultimately the organization. Leaders mobilize employees toward commitment (Gardner, 1990).
While the interest in leadership is growing in its perceived importance to business, the interest in exploring its nature, and attempting to identify what makes for effective leadership, is by no means new (Nave, 2005). Early leadership studies focused on trait and behaviour theories. Trait approach emphasizes attributes of leaders such as personality, motives, values and skills. However, researchers have realized that there is no trait would guarantee leadership success (Yukl, 2010).
Then researchers had turned to study the “behaviour” of the leaders and how this would affect their followers. The success is a joint interaction between them in accordant to the situation; this had led to emergence of “Situational” approach. Situational leadership theory as presented by Hersey and Blanchard which hypothesizes the importance of manager’s relationship orientation and task orientation in conjunction with effectiveness. However, they had modest success in identifying consistent relationships between patterns of leadership behaviour and group performance (Robbins, 1997:419).
New models began to materialize researchers sought to identify characteristics of effective leaders; two prominent theories were: transactional and transformational leadership. Transactional leadership, which is based on exchange, uses reward of punishment as incentives to manipulate followers in to performing tasks (Avolio & Bass, 2002) and served as the basis for the development of transformational leadership (Avolio, 1990). Transformational leadership has been ascribed with effecting change by influencing values, attitudes, and behaviours of others (Avolio & Bass, 2002). Transformational leadership theory has undergone several revisions and expansions were Avolio and Bass (1995) developed the Full Range Leadership Theory (FRLT). According to Antonakis, et al. (2003), the FRLT considered the most recent model of transformational leadership. The FRLT has been deemed more successful in determine effective leadership and include five subscales for transformational, three subscales for transactional and one scale for laissez-faire leadership styles.
With the increased competition and organizational change, the issue of organizational commitment has become an increasingly common construct for inquiry because of the perceived impact a committed employee can have on the organization. In fact, it is believed that members in the organization are more likely to accomplish goals on behalf of their organizations (Cheng, 2003). Committed employees would believe in the organization mission and vision and increase their ability to strive efforts to achieve the organization’s objectives. Many theorists believed that organizational commitment has a substantial impact on employee turnover, productivity, satisfaction and success of both the individual as well as thee organization (Villanueva, 2003:2-3). Studies approved that organizational commitment generates the desire to stay longer, doing their job happily which in turn has an impact on the job satisfaction and job advancement (Chang, etal, 2007, and Cheng, 2003). It has a great impact on the organization outcomes (Wenger, 2004) and improves involvement, commitment and team spirit (Al-Ahmedi, 2004, and Khashaly, 2003).
Therefore, the City Government of Addis Ababa is no exception to the abovementioned environment and as far as the knowledge of the researcher is concerned there is seldom study that is conducted in terms of assessing the relationship between leadership styles and employees organizational commitment in the City Government’s public service organizations. With due respect, this study is going to investigate the relationship between leadership styles and employees commitment to achieve the organizational vision and the larger goal of the second Growth and Transformational Plan of the country.
1.2 Statement of the Problem
Leadership styles have been linked to many organizational issues such as job satisfaction, organizational effectiveness, culture and commitment. The existing literature suggests that leadership critically determine organizational commitment (Avolio, Zhu, Koh & Bhatia, 2004, Chiok Foong Loke, 2001). Having committed employees who are dedicated and motivated towards organizational goals is essential for public service organization in order to enhance their core competencies and gain competitive advantages which can guarantee an organization’s success.
Beside this, employee commitment reflects the quality of the leadership in an organization (Stum, 1990). Organization commitment provides a broad measure of the effectiveness of leadership which offers a way to further explore the subject of leadership and commitment. However, organizations are always looking for the committed human resources in order to achieve its strategic objectives. Specifically, supervisors have the responsibility to emphasize to their subordinates their link and contribution to the success of the organization and to understand the significance of building a positive relationship with their respective subordinates to enhancing the subordinate’s commitment to the organization (Truckenbrodt, 2000).
In African Continent, a study by Garg and Ramjee (2013) conducted on leadership styles and its relationship with organizational commitment in South Africa shows that both transformational and transactional leadership styles positively correlated with organizational commitment but laissez-faire leadership style has negative correlation with affective organizational commitment. (Sameh, 2011) on his part indicated that transformational leadership style has great influence on organizational commitment by creating higher level of value and morale on leaders and followers to common vision, mission and organizational goal. David, N and Gachunga, H. (2015) reported positive correlation between leadership behaviors such as charisma, intellectual situation, individualized consideration, and contingent reward on the one hand, and affective, continuance, and normative commitment, on the other hand.
In Ethiopian context, past study covers different aspects of leadership and its relationship with organizational commitment at private higher education institutions (Temesgen, 2011). This study suggested that there is a positive and significant relationship between leadership styles and organizational commitment. The objectives of private higher education institutions are provision of quality education, research and development and profit making. These institutions have different organizational culture, employees’ incentive strategies, rule and regulations, employment policy. Almost all studies have specific to profit making organizations and the results show that leadership styles have positive relationship with employee’s organizational commitment. However, these characteristics are completely different from public service organization.
Beside this, other study which was conducted at public higher education institute (Feleke, 2010) suggested that transformational and transactional leadership styles had a positive relationship with organizational commitment. However, laissez-faire leadership style had no relationship with organizational commitment. Hence, it was concluded that transformational and transactional leadership behaviors play an important role in developing and improving affective, continuance and normative commitment than laissez-faire leadership style.
However, the only study conducted at the public service organization in Ethiopia by Ahmed Shami (2013: 68-69) explored that from the three types of leadership styles, laissez-faire is the most dominant observed styles in the selected public service organizations and the measure of the relationship between the types of leadership and dimensions of organizational commitment is not deviate from the existing pattern of thinking. Thus the influence of leadership’s styles to employee commitment hasn’t been adequately addressed in public service organization particularly in the City Government of Addis Ababa Yeka Sub City Administration.
City Government of Addis Ababa Yeka Sub City Administration annual reports indicates that the biggest challenges for public services organizations have been to improve the sense of commitment in employees to reduce high rate of turnover, absenteeism and low lob performance. Attracting and retaining competent employees is also the major problem in the organizations. In order to address such challenges, it is necessary to understand the behavior of leader’s leadership styles, dimensions of employee’s commitment and their relationships. Hence, this study would fill the gap on the relationship between leadership styles and employees’ commitment of public service organizations.
Moreover, the researcher also has experience in working on the city government as an office head in Yeka Sub City Administration different public service organizations, and observed some gap of leaders’ leadership styles practices through taking part in different forums that assisted him to understand the challenges of leadership that has been occurred and lack of employees organizational commitment. Hence, the gaps identified by the local studies and the experiences of the researcher call for the researcher to conduct the study and identify the most effective leadership styles which helps to enhances employees’ organizational commitment and need to see the relationship between leaders leadership styles and employees commitment in the Yeka Sub City Administration.
1.3 Purpose of the Study
The focus of the study is to determine the relationship between leadership styles and employees commitment in the public service organizations of City Government of Addis Ababa, Yeka Sub City Administration. It specifically sees to identify the perceived leadership styles used by the Sub City leaders and its relationships with the dimensions of employees’ commitment in the Yeka Sub City Administration. With due respect the outcomes of this study would be suggested as follows:
- It may indicate the general spread in leadership styles of leaders of the Yeka Sub City Administration and compare the difference in leadership styles of the leaders in this study.
- It may investigate the differences in organizational commitment of the employees’ in the Yeka Sub City Administration.
- It may examine the relationship between the top and middle level leaders leadership styles and employees commitment in the Sub City.
- It may help providing constructive suggestions for the concerned bodies to take immediate remedy action to the problem regarding leadership styles and employees commitment.
- It could be used as a reference by other interested body that may need to conduct similar research.
1.4 Objective of the Study
1.4.1 General Objective
The general objective of this study is to investigate the relationship between leadership styles and employee commitment in the Public Service Organizations in Ethiopia the case of City Government of Addis Ababa, Yeka Sub City Administration.
1.4.2 Specific Objectives
The specific objectives are:
1. To identify the leadership styles of the Sub City Administration on the bases of employees perception.
2. To investigate the level and dimensions of organizational commitment of the employees in the Sub City.
3. To examine the relationship between the identified leadership styles and the employees organizational commitment in Yeka Sub City Administration.
1.5 Research Questions
The primary research questions to be addressed in this study are as follows:
1. employees’ perception?
2. organizational commitment in the Sub City Administration?
3. What is the relationship between the identified leadership style and the employees' organizational commitment?
1.6 Significance of the Study
The main theme of this study is to assess the Thus the findings of this study will be useful to the stakeholders including:
- Country: At national level, the finding of the study will help to identify the different practices of leadership styles, dimensions of employees’ commitment and their relationships in the public service organizations which helps to implement government developmental policy and public sector reform program particularly CSRP. Therefore implementation of proper leadership styles will help to improve employees’ commitment and engaged them to implement GTP II effectively.
- Policy makers: Policy makers will use the findings as an input to further revision or replacement and the challenges that deserve the attention of policy makers for future corrective actions.
- City Government: It helps the City administration to identify major leadership styles and different dimensions of employees commitment in the public service organizations so that similar assessments can be conducted in other sub cities in providing more (Ethiopia, 2014) information and it also enables the city administration to know what kind(s) of policies, strategies, and solutions should be framed.
- Yeka Sub City Administration: Basically, the finding of the study expected to give appropriate information for leaders and experts to use the best leadership styles which are suitable to enhance employees’ commitment for effective organizational performance of the Sub City.
- Leaders: the research findings will help the leaders of the sub city to exercise good leadership styles to improve employee’s performance and important to create awareness about the most determinant factors that build organizational commitment at Yeka sub City administration.
- Employees and Customers: The study also have significant to employees through motivating, developing and fulfilling their personal and social needs. Customers of the organization are beneficiary from the study through loyal and committed employees those working for satisfaction of their customers.
- Future researcher : The study also uses as a reference for those who are interested to conduct further study on the problem. It also be an indicative document and may develop empirical data.
1.7 Limitation of the Study
There are some variables, which found to limit the reliability of this study. Lack of financial resources in the field that I can use for literature in specific to the Ethiopian public sector context, shortage of time and lack of sufficient fund may have its own impact. In addition, respondents may be busy due to multiple managerial roles, and lack of a surveying culture in our country may also create a challenge since people are not familiar to filling out questionnaire and cooperating in interview are the expected challenges that can hinder the research.
To overcome the aforementioned limitation the researcher had used apply different mitigating methods such as applying self-administered data collection method to collect data quickly from respondents with in short period of time. Meeting the respondents especially the leaders out of the working times including weekends and the researcher will explain thoroughly the objective in relation with the development of the country.
1.8 Scope of the Study
Even though, City Government of Addis Ababa has ten Sub-Cities and one hundred sixteen Woredas administration of public service organizations, the researcher delimited to Yeka Sub City Administration. This is done because of two main reasons: First, it is believed by the researcher that due to time and resource limitations it is difficult to consider other Sub Cities for the study. Second, as the civil servant the researcher also has experience in the city administration. Thus, it could be convenient to distribute and collect questionnaire and obtain relevant documents in a timely manner. Furthermore, the study mainly focused to investigate on the relationships between leadership styles and organizational commitment in the sub city administration.
1.9 Operational Definition of Terms
This section provides definitions for terms in the thesis that are unusual and those terms used in a specific way per the objective of the study.
City Government : means the Addis Ababa City Government.
Leaders : in this study mean leaders at different level starting from cabinet members to middle level leaders of Yeka Sub City Administration.
Leadership Styles : it is defined as the pattern of behaviour that leaders display in order to achieve organizational goals. For this study, Multifactor Leadership Questionnaire (MLQ) and interview used measure the leadership styles of the sub city administration.
Organizational Commitment: it is defined as a strong desire to remain member of a particular organization, willingness to exert high level of effort, and to accept the value, belief, and goals of the organization to bring desired results. For this study affective, continuance and normative commitments are considered. Organizational Commitment Questionnaire (OCQ) used to measure the three dimensions of organizational commitment.
Public Service Organization : it is an organization within a government system, especially within the civil service
1.10 Organization of the Study
This research consists of five chapters. Chapter one gives the background information and statement of the problem. It covers research questions and hypothesis, objectives, significance, scope and limitation of the study. Chapter two discusses the key concepts of leadership styles and organizational commitment that are used in this research to address the problem in a broader perspective of literature. It develops the theoretical frame work of leadership styles and organizational commitment. Chapter three focus on the research design and methodology. Sampling techniques, sample size, data source and data collection instrument are discussed. Chapter four presents the finding and analysis of the research. Finally, chapter five summarize the main findings in the conclusion part and gives recommendations to assist City Government of Addis Ababa Yeka Sub City Administration in the future.
CHAPTER TWO: REVIEW OF LITERATURE
2 Introduction
This chapter briefly presents literatures related to theories on the concept of leadership styles and organizational commitment. The definition, theories and different models of leadership are explained. Concepts and dimensions of organizational commitment are also looked at. A review of past findings on the relationship between leadership styles and organizational commitment is presented. At the end of the chapter presents the conceptual framework for this study.
2.0 The Concept of Leadership
Unlike well-established disciplines like philosophy, economics or sociology, leadership is an indefinable concept. Burns (1978) cited in Awan and Mahmood (2009) stated that leadership is one of the most observed and least understood phenomena in modern organization. So, it is not surprising that there are a number of possible definitions for leadership. These definitions vary greatly because they focus on different dimensions of the construct.
Some definitions focus on the relationship between desired outcomes and the activities of leaders, some on the relationship between leaders and followers, some on the leadership situation itself, and some on the dynamic interaction of all three. However, Yukl (2010) defines leadership as the process of influencing employees to understand and agree about what needs to be done and how to do it, and the process of facilitating individual and collective efforts to accomplish shared objectives. In other words, leadership is the process of influencing people by providing purpose, direction, and motivation while operating to accomplish the mission of the organization (FM6.22, 2006). Armstrong (2009) regarded leadership is the process of getting people to do their best to achieve desired results. Northouse (2007) defines leadership as a process whereby an individual (leader) influences a group of individuals to achieve a common goal.
From the definition above, there are common terms which are center for all definitions. Defining leadership as a process means that leadership is a transactional event that happens between leaders and their followers. As a process leaders affect and are affected by their followers either positively or negatively. Leadership is about influence means that the ability to influence subordinates in a work or organizational context. Without influence (power), it is impossible to be a leader. Leadership operates in group means that leadership is about influencing a group of people who are engaged in a common goal or purpose. Leadership includes the achievement of goals. Leadership is about directing a group of people towards the accomplishment of a task or the reaching of an endpoint through different ethically based means.
Therefore, for this study leadership is a process of inspiring and influencing people by providing purpose, direction and motivation to accomplish the mission and goals of the organization. Leader is a person authorized to direct, administer, inspires, and influences to accomplish organizational goals at any level of the organization as well as the subordinates report to whom in the context of work place relationship. The key concept in these leadership definitions appears to be a person’s ability to organize their followers and directing them towards a common goal.
2.1 Leadership versus Management
Controversy has arisen over whether leaders are different from managers or they are the same; one opinion argues that the role of management is to promote stability or to enable the organization to run smoothly, whereas the role of leadership is to promote adaptive or usful changes (Schermerhorn, et al, 200:286). Leadership is regarded as the most critical factor in the success or failure of an institution (Bass, 1990a). Leaders must understand their impact on employees, and ultimately the organization.
According to Antonakis et al. consider leadership to be “ purpose driven, resulting in change based on values, ideals, symbols, and emotional exchanges” and “management is objectives driven resulting in stability based rationality, bureaucratic means, and the fulfilment of contractual obligations” (2004:5). This is an interesting contrast: leadership is arguably based on purpose, change, and emotions; in contrast management is based on objectives, stability, and rationality. In specific, what kind of change are they referring to? If their notion of leadership-driven change is defined as managerial change, then it may be a kind of change that is objective and guided towards social stability. If their notion of leadership driven change is defined as ideal-emotion change, then it may be a kind of change that is subjective and guided towards social change. Table (3.1) defines some difference between the two concepts:
Table 2-1 Comparison between Leaders and Managers
Abbildung in dieser Leseprobe nicht enthalten
Source: (Colvard, 2009 and Adayana, 2009)
This raises a concern of another level; how do leadership and management occur in practice? How agents act and how these actions may be conceptualized whether as leadership or as management. There is a fine dividing both. It was noted that literature reviews on leadership studies tend to include works adopting positivist views, which in fact have dominated the field of management studies in the West (Yukl, 2010). We can therefore, conclude that leader’s turn vision into action, while managers complete tasks.
Of course the management function can include problem solving and facilitating meeting as well as the traditional tasks; however, it is not necessary for the same person in a group to exercise all these tasks. Different people can take on parts of the management function. Some of them can do the planning; another person can do budgeting, while a third team member can monitor quality. The team as whole can share responsibility for meeting performance targets (Maccoby, 2000:57).
It is worth noting, however, that managers provide leadership and leaders perform management functions, but managers typically don’t perform the unique functions of the leaders. (Colvard, 2009).
However, the question that may arise: are leaders and managers both essential for an organization? Actually, yes: both are essential for an organization’s prosperity. While leaders develop the vision, managers carry out the vision. Managers should therefore acknowledge the importance of the leadership component of their work and be developed to become leaders who achieve goals (Raubenheimer, 2004)
2.2 Leadership Theories
The concept of leadership has come into view in the era of civilization. Leadership is a process by which a leader motivates or influences others to achieve organization goals. Bolden, Gosling, Marturano and Dennison (2003) argued that the concept of leadership has changed over time. Leadership theories have developed and passed series of 'schools of thought' from “Great Man” and “Trait” theories to “Transformational” leadership (Bolden et al., 2003). Cherry (n.d) argued that interest in leadership increased during the early part of the twentieth century. Early leadership theories focused on what qualities distinguished between leaders and followers, while subsequent theories looked at other variables such as situational factors and skill levels. While many different leadership theories have emerged, most can be classified as one the following major types:
2.2.1 Great Man Theories
Great Man Theories assume that the capacity for leadership is inherent that great leaders are born, not made with certain traits which make them leaders (Cherry, n.d.). This assumption argued that leaders are exceptional people, born with innate qualities intended to lead. These theories often describe great leaders as heroic, mythic and destined to rise to leadership when needed (Bolden et al., 2003). The term "Great Man" was used because, at the time, leadership was thought of primarily as a male quality, especially in terms of military leadership.
2.2.2 Behavioral Theories of Leadership
Behavioral theories of leadership are based upon the belief that great leaders are made, born. Rooted in behaviorism, this leadership theory focuses on the actions of leaders not on mental qualities or internal states. According to this theory, there are behavioral determinants of leadership which can be learned and people can learn to become leaders through teaching and observation (Cherry, n.d.). Bolden et al. argued that these theories concentrate on what leaders actually do rather than on their qualities.
2.2.3 Contingency Theories of Leadership
These theories propose that leaders choose the best course of action based upon situational variables (Cherry, n.d.). Leadership effectiveness depends on a combination of the leader, followers and situational factors. It means that different styles of leadership may be more appropriate for certain types of decision-making. In contingency leadership, for example, the leader is the most knowledgeable and experienced member of a group, an authoritarian style might be most appropriate. In other instances where group members are skilled experts, a democratic style would be more effective. Cherry, (n.d.) also argued that these theories of leadership focus on particular variables related to the environment that might determine which particular style of leadership is best suited for the situation. According to this theory, no leadership style is best in all situations. Success depends upon a number of variables, including the leadership style, qualities of the followers and aspect of the situation.
2.2.4 Transactional Theory
According to Bolden et al. (2003) this approach emphasizes the importance of the relationship between leader and followers, focusing on the mutual benefits derived from a form of 'contract' through which the leader delivers such things as rewards or recognition in return for the commitment or loyalty of the followers. It focuses on the role of supervision, organization and group performance (Cherry, n.d.). These theories base leadership on a system of rewards and punishments.
2.2.5 Transformational Theory
According to Cherry (n.d.) this theory focus upon the connections formed between leaders and followers. Transformational leaders motivate and inspire people by helping group members see the importance and higher good of the task. These leaders are focused on the performance of group members, but also want each person to fulfill his or her potential. Leaders with this style often have high ethical and moral standards. The central concept here is change and the role of leadership in envisioning and implementing the transformation of organizational performance (Bolden et al., 2003).
Each of these theories takes a rather individualistic perspective of the leader, although a school of thought gaining increasing recognition is that of “dispersed” leadership. This approach, with its foundations in sociology, psychology and politics rather than management science, views leadership as a process that is diffuse throughout an organization rather than lying solely with the formally designated ‘leader’. The emphasis thus shifts from developing ‘leaders’ to developing ‘leader full’ organizations with a collective responsibility for leadership (Bolden et al., 2003).
2.3 Full Range Leadership Styles
According to Antonakis, Avolio and Sivasubramaniam (2003) full range leadership theory (FRLT) is one of the new leadership theories proposed by Avolio and Bass in 1991. It describes a full range of influencing styles from non-leadership to powerful transformational leadership behavior. The model consists of three typologies of leadership behaviors: Transformational, Transactional, and non-transactional laissez-faire leadership. They are presented by nine distinct factors comprised of five transformational leadership factors, three transactional leadership factors and one non-transactional laissez-faire leadership (Antonakis, Avolio and Sivasubramaniam, 2003).
Bass (1985) cited in Antonakis et.al (2003) argued that FRLT primarily focused on follower goal and role clarification and the ways leaders rewarded or sanctioned follower behavior. The range of behaviors starts with transformational leader behavior to transactional leader’s behavior reaching to the lowest leader interaction of laissez-faire leader behaviors (MLQ, n,d.).
In general, this FRLT is one of the interventions to improve the impact of leadership style on organizational commitment in organizations. In the conceptualization, MLQ proposed that the three broad categories of leadership styles are better defined by their respective dimensions, described in more detail in the following below.
2.3.1 Transformational Leadership Style
Transformational leadership is the highest level of leadership with regard to activity level and effect on individual, group and organizational outcomes. MLQ (n.d.) described that transformational leadership involves inspiring followers to commit to a shared vision and goals for an organization or unit, challenging them to be innovative problem solvers, and developing followers’ leadership capacity through coaching, mentoring, and provision of both challenges and support. Bass (1999) argued that transformational leadership refers to the leader moving the follower beyond immediate self-interests through idealized influence (charisma), inspiration, intellectual stimulation, or individualized consideration. Yukl (2010) argued that transformational leaders make followers more aware of the importance and value of the work and induce followers to go above self-interest for the sake of the organization. The leaders develop follower skills and confidence to prepare them to assume more responsibility in an empowered organization. The leaders provide support and encouragement when necessary to maintain enthusiasm and effort in the face of obstacles, difficulties, and fatigue. As a result of this influence, followers feel trust and respect toward the leader, and they are motivated to do more than they originally expected to do.
The ultimate goal of transformational leadership is to ‘transform’ people and organization to change, enlarge vision, insight, and understanding; clarify purposes; make behavior congruent with beliefs, principles, or values; and bring about changes that are permanent, self-perpetuating, and momentum building (Bass, 1997). Transformational leaders encourage problem solving in followers rather than constantly providing solutions and directions and a greater pool of knowledge. Bass and Avolio (1994) suggest that a consequence of this behavior is that followers develop the capacity to solve future problems which might be unforeseen by the leader.
Therefore, for this research transformational leadership is the process of influencing and inspiring followers to commit to a shared vision and goals, induce followers to transcend self-interest for the sake of organization and develop followers’ skills and build commitment in order to achieve organizational objectives. Transformational leaders are proactive, raise follower awareness for uplifting collective interests, and help followers achieve extraordinary goals (MLQ, n.d.).
Transformational leaders achieve these maximum results in the organization by employing one or more of behaviors which is presented in the following table.
Table 2-2: Transformational Leadership Style
Abbildung in dieser Leseprobe nicht enthalten
2.3.1.1 Idealized Influence
Idealized influence is characterized by leaders who behave as role models for their followers; they become admired, respected, and trusted. The leader's behavior is consistent, rather than arbitrary, and the leader shares in any risks taken. The leader demonstrates high standards of ethical and moral conduct and avoids using power for personal gain (Avolio and Bass, 1994). Yukl (2010) argued that Idealized Influence includes leading by example and making sacrifices, but this behavior may be used to manage follower impressions and gain their trust rather than to express a leader’s true concern for the mission or subordinates. Bass and Avolio (1990) suggest that leaders demonstrating idealized influence instill pride in their subordinate. As a result of this employees have a high level of trust and confidence in such leaders, tend to adopt their vision, seek to identify with them and develop a strong sense of loyalty to them.
According to Bass and Avolio (1990), Idealized Influence can be classified in idealized influence attributes and idealized influence behavior. Idealized influence attributes occur when followers identify with and follow those leaders who are trusted and seen as having an attainable mission and vision. Idealized influence behavior refers to a leader behavior which results in followers identifying with leaders and wanting to emulate them. The Key indicators for idealized leadership style are those leaders who have demonstrated unusual competence, celebrate followers’ achievements addresses crises ‘head on’ and uses power for positive gain.
2.3.1.2 Inspirational Motivation
Antoniadis et al. (2003) defined inspirational motivation as the ways leaders energize their followers by viewing the future with optimism, stressing ambitious goals, projecting an idealized vision, and communicating to followers that the vision is achievable. Inspirational motivation can be used to increase subordinate commitment to task objectives, even though the leader cares only about self-enhancement and career advancement (Yukl, 2010).
Bass, Avolio, Jung and Berson (2003) argued that leaders behave in ways that motivate those around them by providing meaning and challenge to their followers’ work. Individual and team spirit is aroused. Enthusiasm and optimism are displayed. The leader encourages followers to envision attractive future states, which they can ultimately envision for themselves. The key indicator for this leadership style are those leaders who present an optimistic and attainable view of the future, moulds expectations and shapes meaning, reduces complex matters to key issues using simple language and create a sense of priorities and purpose.
2.3.1.3 Intellectual Stimulation
Intellectual stimulation refers to leader actions that appeal to followers’ sense of logic and analysis by challenging followers to think creatively and find solutions to difficult problems (Bass et al., 2003). It occurs when leaders encourage their followers to be innovative and creative by questioning assumptions, reframing problems and approaching old situations in a new way. Intellectual stimulation also occurs when the leader prompts the followers to provide alternative solutions to the problems and challenges. The result is that followers are encouraged to try new approaches; their ideas are not criticized when they differ from the leader's ideas (Avolio and Bass, 1994).
Yukl (2010) argued that intellectual stimulation can be used to increase creative ideas that will enhance the leader’s reputation. Essentially, ‘intellectual stimulation’ involves the leader
stimulating the followers to think through issues and problems for themselves and thus to develop their own abilities. The Key indicators for this style of leadership are those leaders who re-examine assumption, recognizes patterns that are difficult to imagine, are willing to put forth or entertain seemingly foolish ideas, encourages followers to revisit problems and creates a ‘readiness’ for changes in thinking.
2.3.1.4. Individualized consideration
Individualized consideration refers to a leader behavior that contributes to follower satisfaction by advising, supporting, and paying attention to the individual needs of followers, and thus allowing them to develop and self-actualize (Bass et al., 2003). It can be used in an inauthentic way to build subordinate loyalty (Yukl, 2010). Bass et al. (2003) argued that leaders pay attention to each individual’s need for achievement and growth by acting as a coach or mentor. Followers are developed to successively higher levels of potential. New learning opportunities are created along with a supportive climate in which to grow. Individual differences in terms of needs and desires are recognized. They also demonstrate self-determination and commitment to attaining objectives and present an optimistic and achievable view of the future. The individualized leader demonstrates concern for his or her followers, treats them as individuals, gets to know them well and listens to both their concerns and ideas. This style of leadership is highly recognized as the behaviors exhibited by some of the best leaders. The key indicators of this style of leadership are those leaders who recognize differences among people pertaining to their strengths and weaknesses, likes and dislikes, are an ‘active’ listener, assigns projects based on individual ability and needs, encourages a two-way exchange of views and promotes self-development.
To summarize, the overall characteristics of transformational leadership are first making a compelling case for change. The transformational leader helps to bring about change by making a convincing case for it. Secondly, Inspiring shared vision, seeking broad input, and encouraging everyone to think of a new and better future. Thirdly, change needs to be led. A sense of urgency must be instilled. Collaboration has to be encouraged and the self-confidence of followers’ must be increased. Finally, change needs to be embedded. This is achieved by monitoring progress, changing appraisal and reward systems, and hiring staff with a commitment to collaboration.
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