Impact Of Leadership Styles On Organizational Performance: An Empirical .
IOSR Journal of Business and Management (IOSR-JBM)e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 17, Issue 8.Ver. III (Aug. 2015), PP 31-45www.iosrjournals.orgImpact of Leadership Styles on Organizational Performance: AnEmpirical Assessment of Banking Sector in Jammu and Kashmir(India)Muzaffar Ahmad Sofi1Ph.D Research Scholar, Annamalai University Tamil Nadu, IndiaE.Mail:muzuforyou@gmail.comDr. K. Devanadhen2Abstract: This Study Proposes A Conceptual Model Of The Impact Of Leadership Styles (Transformational,Transactional, Participative, Supportive And Instrumental) On Organizational Performance Of Select BankingOrganizations In Jammu and Kashmir, India. At The Same Time, The Secondary Objective Of This ResearchWork Is To Find Out The Dominance Of The Leadership Styles In The Concerned Banking Companies. TheDescriptive Survey Research Design Was Operated In Order To Accomplish The Above Stated Objectives. TheModel Is Tested On The 290 Respondents Consisting Of Branch Heads, Executive Level And Senior Staff OfBanking Sector Organizations In The State Of Jammu And Kashmir, (India). All The Data Analysis WasOperated Through The Statistical Packages For Social Sciences (SPSS) And Analysis Of Moment Structures(Amos) Version 20. To find the fit Of the Conceptual Model, the Structure Equation Model (SEM) Analysis wasoperated. The Findings Reveal That Only Transformational Leadership Style Has Significant Direct Impact OnOrganizational Performance While Other Leadership Styles Showed Insignificant Impact. Moreover TheTransformational Leadership Was The More Dominant Form Of Leadership Style Prevailing In The ConcernedBanking Organizations of Jammu and Kashmir, India.Keywords:Banking Sector; Transformational Leadership; Transactional Leadership; ParticipativeLeadership; Supportive Leadership; Instrumental Leadership; Organizational Performance;I.IntroductionLeadershipThe Term Leadership Has Been Used In Various Aspects Of Human Behaviour Such As, Business,Academics, Social Work, And Politics. Leadership Is A Complex Issue That Generates Plenty Of Interest AndDiscussion Among Various Readers, Academicians, And Scholars. In A Business Organization, Several VitalTasks Like Creating The Vision And Mission, Determining And Setting The Objectives, Designing ThePolicies, Methods And Strategies To Achieve These Objective Efficiently And Effectively, Directing AndCoordinating The Activities Of Various Departments, Creating Enthusiasm Among The Employees To AchieveThe Vision And Mission And Cope With The Changes In The External Environment Of The Business Can BeSuccessfully Performed Only If There Is Quality Leadership (Robbins, 1993; 2003; Schein, 1992; Schein,2004). A Review Of The Literature On Leadership Suggests That Scholars Do Not Agree On The Definition OfThe Leadership, They Define The Leadership In Different Ways (Barker, 1997). Leadership Can Be Defined AsA Process In Which A Person Tries To Influence, A Set Of Individuals In The Pursuit Of Achieving Individual,Group, And Organizational Objectives. Leadership Is The Ability To Inspire Confidence And Support AmongPeople Who Are Needed To Achieve Organizational Goals (Kim And Maubourgne, 1992). Leadership Is AProcess In Which Pressure Is Exerted Over The People Intentionally, To Guide Structure And Facilitate TheActivities And Relationships In Either A Group Or An Organization (G. Yukl, 2010). One Of The MostRespected Researches On Leadership Is From The Fielder (1996), Which Makes The Statement About TheRelationship Between Leadership And Organizational Performance As; ‘Effectiveness Of A Leader Is A MajorDeterminant Of The Success Or Failure Of A Group, Organization, Or Even An Entire Society. Leadership InAn Organization Is One Of The Important Factors That Play Significant Role In Enhancing Or Retarding TheInterest Of The Individuals In An Organization (Obiwuru, Okwu, Akpa, & Nwankwere, 2011). A ParticularLeadership Style Created And Maintained Within An Organization Is A Key Factor For A Leader To BeSuccessful In Achieving Long Term Goals. Leadership Holds The Pivotal Position In An Organization AndEffectiveness Of A Leader Is One Of The Most Important Determinants Of Success Or Failure Of An1Ph.D Research Scholar, Department of Commerce, Annamalai University, Chidambaram, Tamil Nadu IndiaAssistant Professor, Directorate of Distance Education, Department of Commerce, Annamalai University, Chidambaram, Tamil NaduIndia2DOI: 10.9790/487X-17833145www.iosrjournals.org31 Page
Impact Of Leadership Styles On Organizational Performance: An Empirical Assessment Of Organization, A Group And Even An Entire Country (Fiedler, 1996). Success In An Organization In Terms OfAttainment Of Objectives And Goals Effectively And Efficiently Depends Upon The Managers And TheLeadership Styles They Adopt (Mokgolo, Mokgolo, & Modiba, 2012).There Are Several Theories And Styles Of Leadership Propounded By Different Authors From TimeTo Time. More Recently, the Dominant Topology of Leadership Styles Is Articulated By Bass (1980-1997) andHis Associates, Avolio and Goodheim (1987). It Was Actually The James Macgregor Burns In (1978) WhoWorked On The Leadership And Propounded The Theory In The Form Of Transactional And TransformationalLeadership Styles, But Later Bass And Avolio (1980-1997) Further Developed The Theory. Burns (1978)Defines Transformational Leadership As That Leadership Which Is Able To Lift Followers Up From TheirPetty Preoccupations And Rally Around A Common Purpose To Achieve Things Never Thought Possible. It IsThe Process Of Influencing The Major Changes In The Attitudes And Assumptions Of Organizational MembersAnd Building Commitment For The Organizational Mission Or Objectives (Yukl, 1989). TransformationalLeadership Encompasses Role Modeling, Handling Of Personal Relationships With Subordinates, EffectiveMotivation, Critical Thinking And Effective Supervision For Achieving Higher Standards (Singh & Krishnan,2007). Transformational Leadership Significantly Affects The Organizational Innovation And Creativity AtWork Place, Some Of Which Are Vision, Individual Autonomy, Recognition, Encouragement And AcceptingChallenges (Gumusluoglu, Lale, & Arzu, 2007).Transformational Leaders Are Proactive, Work To ChangeOrganizational Culture By Implementing New And Innovative Ideas, Motivates And Empowers The EmployeesTo Accomplish The Ultimate Targets, By Incorporating New Ideas And Moral Values (B. Bass, 1986).Transformational Leadership Ensures Positive Change In Behavioral Components Which Is Recognized In TheForm Of Improving Performance And Innovation Among The Members Within An Organization (B. M. Bass &Avolio, 1995; Jung, 2001). The Leaders Are Truly Transformational When They Increase The Awareness OfWhat Is Right, Good, Important And Beautiful, When They Help To Elevate Follower’s Needs ForAchievement And Self-Actualization, When They Foster In Followers High Moral Maturity, And When TheyMove Followers To Go Beyond Their Self-Interests For The Good Of Their Group, Organization Or Society(Kavita, 2010). Transformational Leadership Is Based On Five Main Components; (I) Idealized Influence, (Ii)Attributive Charisma (Iii) Individual Consideration, (Iv) Inspirational Motivation And (V) IntellectualStimulation (B. M. Bass & Avolio, 1995; Burns, 1978). By Idealized Influence We Mean Leaders CharismaticActions That Focus On Values, Beliefs And Mission. The Leader Inspires Admiration, Respect And LoyaltyAmong Followers And Makes Them To Accept And Achieve Organizational Mission Collectively. AttributiveCharisma of the Leader States Leader’s Social Charisma and Indicates Perception of the Leader as BeingConfident and Powerful. By Individual Consideration, A Leader Builds Peer Relationship I.E. One To OneRelationship with Subordinates. The Leader Understands and Takes Care Of Followers’ Different Needs,Emotions, Skills and Aspirations. By Inspirational Motivation, The Leader Articulates The Vision Among TheFollowers Makes Them To Accept This Vision, Showing Different Ways To Achieve Organizational Goals AndMakes Them Feel That They Can Achieve It. By Intellectual Stimulation, The Leader Broadens And EnhancesThe Mind Power Of Followers, Makes Them Mentally Prepare For Solving The Business Problems With NewMethods And Innovations (Bass, 1990; B. Bass, 1986).Transactional Leadership Is That Leadership Which Is Based On The Exchange Of Rewards BetweenThe Leader And His Followers. The Crux Of The Leadership Is That It Is Based On Rewards And PunishmentsAnd When Followers Perform Better, They Are Rewarded And When They Perform Poor They Are PunishedIn Some Way Or The Other (Bhat, Rangnekar, & Barua, 2013; Northouse, 2006). The Main Concern Of TheLeader Is Towards The Tasks Required For Achieving Organizational Objectives And There Is No Concern ForThe Upliftment And Development Of Followers (Boehnke, Bontis, Distefano, & Distefano, 2003). The MainObjective Of The Transactional Leadership Is To Make The Followers Fully Understand The Goals To BeAchieved, Remove The Potential Barriers Within The System And At The Same Time Motivate Them To StriveFor Achievement Of Organizational These Goals (House & Aditya, 1997). Transactional Leadership Is BasedOn Three Components; (1) Contingent Rewards: Contingent Reward Is That Leadership Style Which EnsuresMaterial Rewards To The Employees For Their Standard Performance. It Involves The Classification Of WorkRequired To Obtain Rewards And Use Of Incentives And Motivation Forces In The Form Of Rewards ToInfluence Employee’s Actions, (2) Active Management-By-Exception: It Is That Leadership Style Whereby TheLeader Ensures Effective Supervision And Proactiveness In Order To Avoid Mistakes. The Leader ImpliesClose Watch For Checking Deviations Or Mistakes And Takes Remedial Action At The Right Time To EnsureAccuracy As Per Requirement, (3) Passive Management-By-Exception: This Leadership Style Is Considered AsInactive And Some Sort Of Laziness From The Leader Whereby, He/She Interveins Only After FollowersCommit Mistakes Or Behavior Which Is Against The Standards (Bass, 1986; Bass & Avolio, 1995; Bass, 1990).DOI: 10.9790/487X-17833145www.iosrjournals.org32 Page
Impact Of Leadership Styles On Organizational Performance: An Empirical Assessment Of Organizational PerformanceOrganizational Performance Has Become One Of The Multi-Dimensional And Complex PhenomenonIn The Business Literature. Although The Concept Of Organizational Performance Is Very Common In TheAcademic Literature, But There Is No Unanimous Agreement On Its Definition And Measurement . There AreTwo Ways Of Measuring Organizational Performance: Subjective And Objective. Subjective Measures AreNon-Financial Or Non-Economical Indicators Of Performance Measurement Like Sales Growth, Market Share,Employee Satisfaction, Customer Satisfaction, Product Development, Competitive Advantage, CustomerRetention And Some Other Factors. Objective Assessment Is Financial Or Economic Measure OfOrganizational Performance By Using Financial Data Like Profit, Revenue, Return On Investment (ROA),Return On Equity (ROA), And Return On Assets (ROA), Share Price, Liquidity And Operational Efficiency.Subjective Measures Are Based On The Opinion Of The Respondent/ Employees In An Organization To AssessPerformance (Narver & Slater, 1990). There Was An Inconsistent Measurement Of OrganizationalPerformance-Although Most Researchers Measured Organizational Performance By Using Quantitative DataLike ROA, Return On Sales, Return On Assets, Return On Equity, And So Forth (Kotter And Heskett, 1992;Marcoulides And Heck, 1993; Denison And Mishra, 1995; Sorenson, 2002; Rashid, Sambasivan And Johari,2003; Puni, Samuel And Okoe, 2013). However, The Definition Of Performance Includes Both EfficiencyRelated Measures As Well As Effectiveness Related Measures. The Best Criterion For Assessing OrganizationalPerformance Is Next To Impossible (Snow & Hrebiniak, 1980; Cameron, 1986. However, Many Studies ShowA Preference For Subjective Measures During The Assessment Of Business Performance Due To Difficulties InObjective Financial Data. Managers Often Refuse To Provide Accurate, Objective Performance Data ToResearchers. The Availability Of Financial Data Does Not Mean Its Reliability For Objective Assessment,Because The Data Often Do Not Fully Represent Firms’ Actual Performance. It Is Possible That Managers MayManipulate The Data To Avoid Personal Or Corporate Taxes And Even If Transparency Is There, It WillIndicate The Short Term Performance Of The Organization (Dess & Robinson, 1984; Sapiena, Smith, &Gannon, 1988). Further, Performance Measures Such As Profitability May Not Accurately Indicate TheUnderlying Financial Health Of A Company. Profitability May Vary Due To Reasons Such As The Level OfInvestment In R & D Or Marketing Activity That Might Have Longer Term Effects. Last, There Have BeenSeveral Studies That Show A Strong Correlation Between Objective And Subjective Measures (Dess AndRobinson, 1984; Venkatraman And Ramanujam 1986). Some Of The Past Studies Which Have Used TheSubjective Or Perceptual Assessment Of Organizational Performance Are Mentioned As Below: Narver and Slater (1990); Subjective Assessment of ROA for Self and Competitors. Deshpande Et Al. (1993) In 50 Japanese Firms. Subjective Evaluation Of Profit, Size, Market Share AndGrowth Compared To Largest Competitor. Jaworski and Kohli (1993) In USA Subjective Measures-Overall Performance. Slater and Narver (1994) In 81 SBUs. Subjective Evaluation of ROA Relative to Competitors. Greenley (1995a) In 240 UK Companies. Subjective Assessment of ROA, New Product Success and SalesGrowth. Despande and Farley (1993) In Us. Subjective Evaluation of Sales Growth, Customer Retention, Returns onInvestment and Return on Sales. Balakrishnan (1996) In 139 Firms. Subjective Evaluation of Relative Profit, Satisfaction with Profit,Customer Retention and Repeat Business. Deshpande and Farely (1999); Between Indian and Japanese Firms- Subjective Assessment of Profitability,Business Size, Growth and Market Share. Ogbonna and Harris (2000); Among 1000 SMEs of Uk- Subjective Assessment of Customer Satisfaction,Sales Growth, Market Share, Competitive Advantage and Sales Volume. Zhang and Xiancheng (2012); In 25 Enterprises of China- Customer Satisfaction, Market Share, andCustomer Retention. Aziz, Mahmood and Abdullah (2013); Among 5138 SMESs of Malaysia- Subjective Assessment of SalesGrowth, Employment Growth, Market Value, Profitability Overall.All These Above Studies Provide Sound Base And Validity Of Measurement Of Organizational PerformanceThrough Subjective Or Perceptual Assessment. Keeping In View The Nature Of Study And Review OfLiterature, Organizational Performance Was Measured On The Basis Of Subjective Assessment Of 6 FactorsWhich Are As:1. Deposit Growth2. Profitability/ ROA3. Market Share4. Quality Of Products And Services5. Competitive Advantage/ Position, andDOI: 10.9790/487X-17833145www.iosrjournals.org33 Page
Impact Of Leadership Styles On Organizational Performance: An Empirical Assessment Of 6.Employee SatisfactionThe Branch Heads, Executives And Senior Staff Of J&K Bank, SBI, PNB and HDFC Bank WereAsked To Rate Their Organizational Performance Level Regarding These Performance Parameters In A FivePoint Rating Scale, Ranging From (1) Very Low To (5) Very High.Objectives of the Research1. To Identify The Impact Of Transformational, Transactional, Participative, Supportive And InstrumentalLeadership Styles On Organizational Performance In Select Banking Organizations Of Jammu andKashmir, India.2. To Find Out Which Leadership Style Is The Dominant Form Of Leadership Mostly Prevailing In TheBanking Organizations Of Jammu and Kashmir.Research HypothesisKeeping In View The Nature And Objectives Of The Study Following Hypothesis Have BeenFormulated And Will Be Tested With Structural Equation Model (SEM).H1: Leadership Affects Organizational Performance Directly and Significantly.H1a: Transformational Leadership Affects Organizational Performance Directly and Significantly.H1b: Transactional Leadership Affects Organizational Performance Directly and Significantly.H1c: Participative Leadership Affects Organizational Performance Directly and Significantly.H1d: Supportive Leadership Affects Organizational Performance Directly and Significantly.H1e: Instrumental Leadership Affects Organizational Performance Directly and Significantly.Figure 1: Theoretical/Conceptual ModelII.Research MethodologyResearch InstrumentThe Main Purpose Of This Study Is To Determine The Relationship Among Leadership Styles AndOrganizational Performance. This Research Adds To The Existing Body Of Knowledge By Identifying TheSimultaneous Link Among All The Three Constructs And By Assessing Whether Leadership AffectsOrganizational Performance Directly Whether, The Organizational Culture Acts As A Mediating Role BetweenLeadership Styles And Organizational Performance. For This Purpose, A Relevant And Well EstablishedStructured Questionnaire Was Designed For Measuring Leadership Styles, Organizational Culture AndOrganizational Performance In The Sample Organizations. The Formulation And Implementation Of StandardAnd Effective Survey Influence Significantly The Overall Success Of Data Collection And Achievement OfSatisfactory Responses (Churchill, 1991; Dillman, 1978; Faria & Dickinson, 1992). To Ensure The HighContent Validity And Reasonable Response Rates The Survey Was Designed, Formulated And Implemented InA Particular Manner After Taking Into Consideration The Recommendations Of Many Authors. The Method OfFormulating Questionnaire Design, Pilot Surveying And Pre-Notifications And Post- Survey Follow-Ups WasFollowed After Taking Into Consideration The Research Works Of (Churchill, 1991; Conant, Mokwa, &DOI: 10.9790/487X-17833145www.iosrjournals.org34 Page
Impact Of Leadership Styles On Organizational Performance: An Empirical Assessment Of Varadarajan, 1990; Dillman, 1978). One Of The Crucial Aspects Of Survey Design Is The Development OfQuestionnaire(Churchill, 1991).The Leadership Construct Used In This Research Work Is Based On Five Leadership Styles Namely;Transformational Leadership, Transactional Leadership, Participative, Supportive And Instrumental LeadershipWhich Were Incorporated On The Basis Of Pilot Study.After A Deep Review Of Literature On Leadership, It Was Decided To Use Full Range DevelopmentTheory Of Leadership Construct For Transformational And Transactional Leadership Styles Propounded By(Bass And Avolio, 1997). So Multi-Factor Leadership Questionnaire (MLQ) Form 5x Developed By Bass AndAvolio (1997) Was Adopted For The Present Research. Actually These Two Leadership Styles Have BeenOriginated By James McGregor Burns In 1978 And Later It Was Full Developed By Bass In 1985.ThisQuestionnaire Has Gone Through Several Modifications. Bass’s (1986) Initial Multi-Factor LeadershipQuestionnaire (MLQ) Included Five Subscales Of Charisma, Individualized Consideration, IntellectualStimulation, Contingent Reward And Management-By-Exception. Later, Bass and Avolio (1990) Introduced theMultifactor Leadership Questionnaire Form 5R (MLQ Form 5R), Which Contained Six Subscales As: Charisma, Inspirational Motivation, Intellectual Stimulation, Individualized Consideration and Management byException. In 1995, Bass and Avolio Presented MLQ Form 5X. This New Version Of MLQ Consists Of NineSubscales: Idealized Influence (Attributed) Idealized Influence (Behaviors), Inspirational Motivation,Intellectual Stimulation, Individualized Consideration, Contingent Reward, Management By Exception (Active),Management By Exception (Passive), And Laissez- Faire. The MLQ Form 5X Uses 36 Items to Measure theNine Subscales. However, The Instrument Used In The Present Study Is MLQ 5x (1997) By Bass And Avolio.The MLQ 5X Is Based On Three Leadership Styles Namely (1) Transformational Leadership Which ConsistsOf Five Items Or Subscales As; Idealized Influence (Attributed), Idealized Influence (Behaviors), InspirationalMotivation, Intellectual Stimulation, And Individualized Consideration, (2) Transactional Leadership WhichConsists Of Three Items Or Subscales As; Contingent Reward, Management By Exception (Active), AndManagement By Exception (Passive), And (3) Laissez-Faire Leadership Which Is Described As NonLeadership Style I.E. That Leadership Which Offers No Feedback Or Support Has Been Omitted From ThePresent Study As Per The Expert Views And Opinions Taken From The Different Expert People From TheSample Organizations During The Pilot Study. This Scale Contains 32 Items For Measuring TheTransformational And Transactional Leadership Styles. The MLQ Uses Five-Point Likert Scale. ThisLeadership Instrument Has Been Used By Other Researchers Like (Ardichvili & Kuchinke, 2002; Gumusluoglu& Ilsev, 2007; Schimmoeller, 2010; Saad & Mazzarol, 2010; Rukmani, Ramesh, & Jayakrishnan, 2010;Aydogdu & Asikgil, 2011; Belonio, 2012; Fasola, Adeyemi, & Olowe, 2013; Bhat, Rangnekar, & Barua, 2013).It Has Proven To Be An Effective Tool In A Wide Range Of Settings. For Example, It Has Been Applied toStudies in Savings Banks, Community Action Agencies, Offshore Oil Platforms, The United States Army,Chinese State-Run Industry, And the Israel Defense Force Infantry .The MLQ Has Been Employed EffectivelyIn More Than 30 Nations To Measure Leadership (Bass & Avolio, 1995,1997). This Leadership Instrument HasProven Its Reliability And Validity And Has A Track Record Of Being Incorporated In More Than 200Dissertations (Avolio And Bass 2000). Thus, This Research Uses Mlq Leadership Instrument For MeasiuringTrasformational And Trasactional Leadership Styles.For The Measurement Of Other Three Leadership Stryles Namely Participative, Supportive AndInstrumental Leaeadership, The Perceived Leadership Style Of House (1971a,B) Has Been Used For ThePresent Study. This Leadership Instrument Is Actullauy Based On The Earlier Work Of Stogdill (1963). ThisLeadership Scale Has Been Widely Used In Many Reaserch Studies And Is Unanimously Considered As GoodMeasure Of Leadership Style (Teas, 1981; Kohli, 1989; Ogbonna & Harris, 2000). This Instrment Uses FivePoint Likert Sacle Ranging From 1 Strongly Disagree To 5 Strongly Agree And Each Leadership Style OrDimension Is Defined By Four Obsevable Items.Data Collection MethodThe Data Collection Method Used In This Research Work Is Questionnaire Method. A Well StructuredQuestionnaire Was Designed And Distributed Through Face To Face Interaction With Banking SectorEmployees Of Jammu and Kashmir.Sampling DesignSample Survey Was Undertaken By Identifying The Total Number Of Banks Operating In The StateOf Jammu And Kashmir. The Jammu And Kashmir State Has Been Divided Geographically In Two Parts; 1)Jammu And 2) Kashmir As Name Indicates Itself And Each Part Has Been Divided Into Eleven Districts. So, inTotal There Are Twenty Two Districts in the State Of Jammu And Kashmir (Eleven in Jammu and Eleven inKashmir). The Banks Having The Highest Business In Terms Of Market Share And Network Of Branches, AndWere Selected For The Sample. It Was Found That J&K Bank, State Bank Of India (SBI), Punjab NationalDOI: 10.9790/487X-17833145www.iosrjournals.org35 Page
Impact Of Leadership Styles On Organizational Performance: An Empirical Assessment Of Bank (PNB) And HDFC Banks Have The Highest Network Of Businesses And Branches In The ConcernedState And Thus Were Selected As Sample For The Present Study.Sample PopulationSample Population Means The Population From Which The Sample For The Present Research Study IsDrawn. The Population For This Study Consists Of The Branch Heads, Executives And The Senior Staff OfJ&K Bank, SBI, PNB And HDFC Banks Operating In The State Of Jammu And Kashmir.Sampling TechniqueThe Sampling Technique Used In This Study Is Cluster Sampling Technique Which Is ProbabilitySampling Method. The Population For This Study Has Been Divided Into North, Central And South Zones AsAlready Mention That The Jammu And Kashmir State Is Dived To Two Broad Regions Namely Jammu RegionAnd Kashmir Region And Each Region Is Divided Into Eleven Districts Which Make It A Total Of TwentyTwo Districts. So, Both Jammu and Kashmir Region Has Been Divided Into North, Central And South ZonesWhich Makes It Six Zones And From Each Zone One Main District As The Main Town Having The HighestNumber Of Bank Branches Has Been Chosen For Sample Collection. From Kashmir Region, The Baramulla,Srinagar And Anantnag Districts And From Jammu Region, Jammu, Udhampur And Kathua Districts HaveBeen Taken For Data Collection.Data AnalysisAll The Data Analysis Was Operated Through The Statistical Packages For Social Sciences (SPSS)And Analysis Of Moment Structures (Amos) Version 20. To Find The Fit Of The Conceptual Model, The(Structure Equation Model) SEM Analysis Was Used Incorporated By Relevant Statistical Tools For CheckingSome Statistical Assumptions.Refinement and Validation of the ScalePrior To Investigating The Relationship Between Leadership Styles And Organizational Performance,It Was Necessary To Have Purification Of The Scale And As Such Reduce And Streamline The Data As PerRequirement. The Construction Of The Appropriate And Feasible Indices Was Initiated By The Use OfPrincipal Component Analysis With Varimax Rotation. Factor Analysis Was Deemed Necessary AndStatistically Appropriate To Find Out The True Measures Of Leadership Styles And To Ensure That AdoptedMeasures Of Leadership Capture Different Dimensions Of Leadership Style. Consequently, The PrincipalComponent Analysis For Leadership Styles Was Conducted So As To Make An Appropriate And ViableConstructs Of Leadership.Table 1: KMO and Bartlett’s TestKMO Measure Of Sampling AdequacyApprox. 2Bartlett’s Test Of Sphericity2124.6280.874DfSig.3450.000The Above Table Represents the Kaiser-Meyer- Olkin (KMO) Sample Adequacy and Bartlett’s Test ofSphericity. The KMO Test Provides An Index Ranging From Zero To One And It Reaches One When EachVariable Is Perfectly Predicted Without Error By Other Variable. The Value of KMO Sample Adequacy IndexShould Be Above .5 (Under 0.5 Is Unacceptable) and Above 0.8 Is Considered As Meritorious (Hair, Blake,Babin, & Anderson, 2010). As It Is Evident That KMO Index Is 0.874 And Significance Value (P 0.00) WhichIndicate The Sound Criteria For Data Analysis And The Application Of Factor Analysis For The MeasurementScale.Table 2: Principle Component Analysis for Measurement of Leadership after Deleting Of ctor Loadings 0.7090.2580.7100.2680.7350.2570.694DOI: 10.9790/487X-17833145www.iosrjournals.org36 Page
Impact Of Leadership Styles On Organizational Performance: An Empirical Assessment Of 9Lq40Lq41Lq42Lq43Lq44Eigen Value% of VarianceDOI: 10.9790/487X-17833145www.iosrjournals.org37 Page
Impact Of Leadership Styles On Organizational Performance: An Empirical Assessment Of .24Note: The Cross Factor Loadings Less than 0.25 Have Been SuppressedThe Table 2 Represents The Principal Component Analysis Of Dimensions Or Leadership StylesAdapted From Bass And Avolio (1997) And House (1971a). As Expected, This Factor Analysis Leads To TheExtraction Of Five Factor Solutions Which Explain Over 70 Percent Of Variance. The First Component orFactor Solution Loads Very Heavily On the Vector Generating an Eigen Value Of Over Six with Variance Of27.42 Percent. This Factor Comprises Of 17 Items (After Deleting 3 Items) Which Hears Towards TheMeasurement Of Transformational Leadership Style. The Items In This Factor Stand Conceptually ConsistentAnd Easily Interpret Thus Leading Towards The Fit Measure Of Transformational Leadership Style. TheSecond Facto Solution Also Loads Heavily On The Vector Thus Generating An Eigen Value Of Above Four.This Factor Comprises Of 10 Items (After Deleting 2 Items) Accounts For The Variance Of 16.23 Percent AndAppears Perfect Gauge Of Transactional Leadership And Therefore, Considered As A Fit Measure For LabelingIt As Transactional Leadership Style. The Third Leadership Factor or Dimensions Loads Heavily On a VectorGenerating An Eigen Value Of Above Three With The Variance Of 10.14 Percent. The Factor Solution ConsistsOf Four Items With Above 10 Percent Of Variance Appears To Gauge The Participative Leadership AndConsidered As A Fit Measure To Name It As Participative Leadership Style. The Fourth Factor Solution Loadson A Vector Generating An Eigen Value Of Above 2 With The Variance Extraction Of 9.37 Percent. ThisLeadership Factor Is Comprised Of Three Items (After Deletion of One Item) Expresses A Rationale Measure ofLeadership Factor and Thus Considered As A Good Gauge of Supportive Leadership Style. The Fourth As TheLast Factor Solution Also Loads Heavily On The Vector Generating An Eigen Value Of Two. This Factor IsBased On Four Items Which Accounts For The 7.08 Percent Of Variance And Thus, Considered As A GoodMeasure Of This Leadership And Thus A Fit For Labeling It As Instrumental Leadership Style.Table 3: Refinement Scale of Leadership after Deletion of Certain ItemsDimensionItemsTransformational LeadershipLq1Idealized InfluenceLq3(Attribute)Lq4Lq5Lq6Idealized Influence(Behaviour)Lq7Lq8Lq9Lq11Inspirational MotivationLq12Lq13Lq14Intellectual Lq19Lq20Transactional LeadershipLq2
Leadership Styles They Adopt (Mokgolo, Mokgolo, & Modiba, 2012). There Are Several Theories And Styles Of Leadership Propounded By Different Authors From Time To Time. More Recently, the Dominant Topology of Leadership Styles Is Articulated By Bass (1980-1997) and His Associates, Avolio and Goodheim (1987).
particularly leadership. This requires manager to understand the effectiveness and impact of different leadership styles towards employees' performances. ass and Avolio (1994) introduced the Full Range Leadership model (FRL). The model illustrates the most effective leadership styles are transformational and transactional leadership styles.
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This study examined leadership styles in an organisation in the gas industry and how the different leadership styles impact on employees' commitment to the organisation. Specifically, the study sought to determine the relationship between leadership styles and organisational commitment. Over the past decades, several studies examined the
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Feb 07, 2019 · 4.Describe the impact of culture on leadership styles. 5.Identify five leadership styles and their effectiveness in different situations related to CLC. 6.Reflect on the importance of using varied leadership styles to advance and sustain
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