The Impact of Leadership Styles on the Organisation Performance - Research Paper Example

? The Impact of Leadership Styles on the Organisation Performance Abu Dhabi Municipality as a Case Study Table of Contents Introduction 3 Research Questions 4 Research Objectives 4 Significance of the Study 4 Review of Related Literature 5 Theories on Leadership 6 Effects of Leadership on Organisational Performance 7 Theoretical Framework – Multi-Factor Leadership 8 Methodology 11 Research Design 12 Data Gathering Procedures 13 Ethical Considerations 14 Conclusion 14 References 16 List of Figures Figure 1. Factors of the MLQ by Avolio & Bass (1990) 9 Introduction The concept of leadership, particularly leadership in government, has not been entirely understood despite the frequent occurrence of the subject being considered as one of the fundamental elements that can contribute to the success of a government (Hooijberg and Choi 2001). Leadership has been evident for as long as individuals have communicated and interacted; it is present in every culture regardless of social, economic, and political compositions. Leadership development in the public sector is not a new or distinct subject yet there has been a large gap between the actual leadership styles of public leaders on one hand and the needs and interests of the public on the other (Trottier, Wart, and Wang 2008). For instance, there have been considerable complaints regarding the commitment of public leaders toward the essential aspects of public service as well as the citizen’s interests. Consequently, this has resulted to a common response among the community with regards to the need for a certain type of leadership. Leadership plays a critical role in good public governance and should be effectively integrated into the government’s culture (Jaussi and Dionne 2004). Most often, public sector leaders are expected to provide solutions to problems and difficulties that have to be dealt with in a certain environment; equally important is their capability to address and promote public interests (Alonso and Lewis 2001). Leadership also remains to be a fundamental factor that can result to organisational performance and improved capacity for management; moreover, it can significantly contribute to managing human resources, such as through effective recruitment, selection, and training of employees or performance management (Camilleri 2006). Research Questions The current study then aims to answer the following primary questions: 1. What are the leadership styles demonstrated by leaders in the Abu Dhabi municipality? 2. What is the impact of such leadership styles on organisational performance among the Abu Dhabi municipality leaders? 3. What are the ways with which effective leadership can be demonstrated by leaders in the Abu Dhabi municipality? Research Objectives In relation to such questions, the study aims to address the following objectives: 1. To ascertain the leadership styles and characteristics among leaders in the Abu Dhabi municipality; 2. To examine the variables of the Multifactor Leadership Questionnaire (MLQ) such as transformational, transactional, and passive/avoidant leadership, and identify which of these types is/are most evident in Abu Dhabi leaders; 3. To identify the outcomes of leadership based on extra effort, effectiveness, and satisfaction among such businesses; and 4. To provide recommendations with regards to the suitability of leadership styles to the public’s interest in Abu Dhabi. Significance of the Study Effective leadership is a fundamental requirement for the public sector, such as those who perform government duties. A number of researchers have asserted that management, innovation, and initiative are not enough to handle unpredictable change that rapidly occurs. Furthermore, organisational procedures and policies do not produce favorable effects unless leaders are developed as they should hold the values and goals which empower workforce members and enable them to achieve success (Harms and Crede 2010). Leadership can bring about significant changes in the organisational life. Positive outcomes can be attained such as enhanced performance and increased productivity along with an increase in respect, trust and concern within the organisations, to name a few. Therefore, being able to obtain further information on how and why certain leadership styles are adopted as well as the outcomes associated with them can significantly support governments in developing leaders and implementing the proper activities and procedures for them to establish adequate leadership opportunities. Moreover, they can be guided in avoiding negative practices that will yield adverse outcomes on employees. Because the study can contribute additional knowledge concerning leadership styles and approaches, leaders can make certain changes to their attitudes and behaviours to achieve positive outcomes, such as the improvement of performance across and within organisations along with the increased commitment and productivity of members as a long-term outcome. Review of Related Literature Leadership has been investigated by researchers through various perspectives and has been given different definitions. It has been described in relation to personality, behaviour, responsibility, power of influence, or a way of accomplishing goals, to name a few (Kelloway, Barling, Kelley, Corntois, and Gatien 2003). Nonetheless, many of these definitions strongly suggest that leadership plays an essential role in directing individuals in achieving their goals. Studies that focused on leadership have identified a number of leadership styles and approaches that have been widely accepted and used by many businesses of today. For instance, the Multifactor Leadership Questionnaire by Bass and Avolio (1989), a widely accepted instrument, has incorporated a number of leadership styles and outcomes which can be used to determine and evaluate leadership behaviours that exist in both public and private organisations. The following sections will then focus on the concept of leadership by providing an overview of theories on leadership and the impact of leadership on organisational performance along with the variables of the Multi-Factor Leadership Questionnaire, which will be used as the theoretical framework for the study. Theories on Leadership A number of approaches have been drawn out from reviewing these leadership theories, one of which is the traits approach (Mello 2003). Theories of leadership focus on individual traits are those that intend to differentiate the characteristics that separate leaders from non-leaders. This is based on the notion that leadership is inherited and that individuals can be born as either leaders or followers (Mello 2003). Contrary to the trait theories, leadership theories that have taken a behavioural approach explain that leadership is not inborn; rather, it can be taught, learned, and developed (Martin and Epitropaki 2001). The contingency or situational approach, another theory on leadership, asserts that it is necessary for effective leaders to adapt their style in such a way that it becomes consistent with every aspect in the organisational setting, such as the nature of work, and the attributes of the employees who are carrying out the tasks. Moreover, the goal-setting theory focuses more on setting clear and challenging tasks that are coherent with the values of the followers (Paarlberg and Perry 2007); leaders should explain why these employees should carry out the job and how these tasks can be associated with the organisation’s goals. Theories on transformational leadership, particularly that of Bass and Avolio (1989), have been widely used in various studies; these posit that a transformational approach to leadership can provide the most effective outcomes in an organisation. The importance of transformational leadership along with the other variables of the Multi-Factor Leadership Questionnaire will be further discussed in the following sections. Effects of Leadership on Organisational Performance Continual changes that are inherent in the public sector, such as the characteristics required from the labor pool or the availability of resources, have placed a great deal of pressure on government organisation all over the world to strive and do better with regards to employee recruitment, retention, and motivation (Perry, Mesch, and Paarlberg 2006). Despite the large amount of evidence that people are highly motivated to stay committed in serving the public and that such levels of motivation can improve their performance, majority of the efforts toward human resource management have focused on an opposite approach with which financial rewards and autocratic control systems have become the highest priorities (Perry, Engbers, and Jun 2009). One effective means of improving organisational performance is through transformational leadership with which leaders inherently address the needs, wants, and goals of followers (Burns 1978). As this form of leadership is based on values, increasing evidence has pointed out its significant relationship with organisational performance and employee satisfaction in both public (Moynihan, Pandey, and Wright 2009; Trottier, Van Wart, and Wang 2008) and private organisations (Jung and Avolio 2000). For instance, transformational leadership brings about a convincing vision that stimulates strong emotion among the followers; this increases their awareness about idealized goals and motivates them to go beyond their self-interest for the sake of greater objectives. Thus, transformational leadership can significantly raise public service motivations (Moynihan et al 2009). Leadership that promotes person-organisation fit can also bring about better performance among employees. Individuals prefer to work and stay in organisations with which management practices and organisational work are aligned with their individual values (Sekiguchi 2007). Due to the congruence that exists between the values of public sector employees and those of the organisation, employees may tend to improve their performance and stay committed to work (Bright 2007). When employees perceive that there is a consistency between their values and management practices, job satisfaction can increase along with their performance and productivity (Wright and Pandey 2008). Leaders that encourage socialization can increase the affective commitment of their followers toward the organisation, thereby enhancing their performance as well. Through interaction, organisational members can communicate the values that are practiced within their environment and practice how these values are demonstrated through actual behaviour; this way, a satisfactory level of performance is ensured. Followers are also more encouraged to perform well if leaders are able to clearly communicate and express challenging tasks which allows employees are motivated to reach a particular standard (Locke and Latham 2002). Additionally, autonomy within the work setting increases the motivation of public service employees to perform better (Park and Rainey 2008) while empowerment allows the followers to align the practices and policies of the organisation with their individual values. This can consequently result to increased public service motivation, performance, commitment, and satisfaction. Theoretical Framework – Multi-Factor Leadership The leadership factors which are used in the Multifactor Leadership Questionnaire (MLQ) originally developed by Bass and Avolio (1989) based on the transformational leadership theory includes the laissez faire, transactional, and transformational styles of leadership along with the outcomes of leadership. Laissez faire, also referred to as non leadership, demonstrates a behaviour with which leaders avoid participating in work-related issues, such as in the decision making process and establishment of relations with subordinates. Transactional leadership includes a number of leadership styles such as with the use of contingent rewards, as well as active and passive management by exception. Contingent reward is a form of exchange system that relies on bargaining which means that the leader and subordinates create an agreement for both sides to accomplish organisational goals as the leader offers rewards to the followers (Bass 1985). This form of leadership requires that leaders provide clear and detailed explanations of what is expected from these employees and offer recognition once goals have been attained. Figure 1. Factors of the MLQ by Avolio & Bass (1990) Active management by exception sets the standards for what should be observed and what can be considered as ineffective performance; it may also make use of punishments when followers are not able to comply with such standards (Avolio and Bass 1990). This suggests that this leadership approach intends to monitor and correct any error made as often as possible. On the other hand, passive management by exception is applied by leaders who avoid and choose not to set and clarify agreements, and communicate the organisation’s expectations that should be achieved by their subordinates. This form of leadership is unable to address all situations and problems in an effective manner as leaders who make use of this style will become involved only when certain problems come about (Savolainen 2000). Meanwhile, the factors that comprise transformational leadership generally lead to positive long-term effects on both leaders and followers, as concluded by a wide range of studies (Egri and Herman 2000; Bass and Riggio 2006; Wofford, Whittington, and Goodwin 2001). The first factor, which is idealized influence, refer to the charismatic elements which enable leaders to gain a sense of trust and respect from followers, and to be looked up to as positive role models. Second factor is the inspirational motivation with which the behaviour of leaders are able to increase the motivation of their subordinates by incorporating fundamental values, meaning, and challenge in their tasks and goals (Wolfram and Mohr 2009). The next factor, intellectual stimulation, enables leaders to instigate and increase the efforts of their subordinates in becoming creative, innovative, and balanced when it comes to handling work situations. Finally, individualized consideration refers to the component of transformational leadership with which leaders are able to create and reinforce relationships with their followers by recognizing their needs and desires in order to maximize their potential (Eagly, Johannesen-Schmidt, and van Engen 2003). Finally, leadership outcomes identified in the MLQ includes three measurable factors, which include extra effort, effectiveness, and satisfaction (Bass and Avolio 1989). Extra effort demonstrates the leader’s ability to increase the desire of followers as well as their efforts that they place onto work whereas effectiveness refers to the ability of the leader to accomplish the organisation’s goals and objectives along with the work-related needs of the subordinates. Satisfaction expresses the contentment that subordinates feel with regards to their leader’s actions and behaviours (Banerji and Krishnan 2000). Methodology For the current study, the researcher has preferred to apply a mixed methods approach in determining the impact of leadership styles of the Abu Dhabi municipal leaders on organisational performance. A mixed methods research, also known as multimethodology, refers to an approach that combines the collection and evaluation of both qualitative and quantitative data (Creswell 2004). In a mixed research, its quantitative portion utilizes a scientific method that is mainly based on a logical deduction; on the other hand, the qualitative portion makes use of a scientific method with which conclusions can be established through observations. In a quantitative approach, data gathering is based upon exact measurement and data that has been validated, most often, through the use of statistics. Thus, the quantitative approach generates statistical reports that can demonstrate correlations between or among variables (Creswell 2003). In contrast, the qualitative approach makes use of data that can be collected by the researcher through interviews and focused group discussions, to name a few. It is known that both qualitative and quantitative methods each have its own strengths and weaknesses that may significantly affect the accuracy of any study. When doing research, it is important to make use of a mixed method approach for carrying out a detailed study. Using multiple methods when conducting research promotes a more comprehensive study with which processes are viewed from different perspectives (Brannen 2005); moreover, a mixed methods approach also emphasizes one method and validates the reliability of the gathered data. Hence, a mixed research creates a balance between the results of both research methods and reduces the possibility of missing any significant data. The mixed method approach can enhance the interpretation of results by testing the consistency of the findings which have been acquired using various instruments; this approach also allows the researcher to control the causes that may influence the outcomes. All in all, the analysis of our current study can be further improved as different methods are integrated which tend to result to improved results in terms of scope and quality. Research Design The use of case study has been applied in the research as its design. Case study methods often involve several methods for qualitative and quantitative data gathering, As the study is conducted in a comprehensive manner, its level of detail and insight is emphasized as it focuses on one subject and broadly examines it within its context (Gerring 2005). Case studies often allow the researcher to employ a systematic way of looking at occurrences, gathering data, as well as interpreting the results. Consequently, researchers can obtain an increased awareness and understanding of why things happen and what may be relevant to further examine in future studies. Case studies have also been proven to be an useful strategy for developing and testing research hypotheses (Dul and Hak 2008). The current study makes use of both a survey and interview to determine the impact of leadership styles of Abu Dhabi municipal leaders on organisational performance. Data Gathering Procedures Secondary information that is relevant to the topic can be collected through books, journal articles, and other online sources; these can all be combined to come up with a portion on all related information regarding various leadership styles and approaches under the Multi-Factor Leadership Questionnaire as well as their impact on organisational performance. These form the secondary form of gathering data for the research. Through the use of a permission letter, the researcher can ask permission from the local government administrative division of Abu Dhabi with regards to the participation of their members in the study. Once permission has been approved, the researcher will make use of purposive sampling to select 60 participants for the study, all of which should be members of the Abu Dhabi administrative division and has had leadership experience of more than three years to ensure that they have the necessary understanding, knowledge, and skills relating to leadership. Two main instruments will be used in gathering data for the study, survey and interview, with both the quantitative and qualitative approach being applied to the process. The questions will primarily include those from the Multi-Factor Leadership questionnaire that will look into the transformational, transactional, and laissez faire approaches to leadership as well as the outcomes of leadership on effectiveness, extra effort, and satisfaction of employees. The use of these instruments will determine the impact of leadership styles on organisational performance in the administrative division of Abu Dhabi. The responses during the interviews from all participants will both be recorded and written down, and will become the basis for a thematic analysis. Being able to recognize common themes that are present among all responses will allow the researcher to draw out useful conclusions from the qualitative data that has been gathered (Denzin & Lincoln 2003). The second method to be used in collecting data is through the use of questionnaires as a form of survey with which statistical analysis will be utilized to determine correlations between leadership styles and organisational performance. Ethical Considerations An important principle for the research is the use of ethics, such as ensuring the security of all acquired information. Information about the participants will remain confidential while the data they provide will be kept private and secure. Preventing any bias during the research methods, particularly with the interviews, as well as having a high regard and consideration for others is important when undergoing ethical research (Gregory 2003). Participants will also be provided with clear and detailed explanations, and be given the freedom to stop answering the survey or leave the interview if they prefer to do so. Conclusion The mixed-method approach is a means of producing and creative alternatives to traditional or ways of gathering data and analyzing information. The current study will make use of this approach to integrate both the qualitative and quantitative means of collecting and examining information regarding the impact of the leadership styles used by Abu Dhabi municipal leaders on the organisational performance of their division. Available literature will provide secondary data which are relevant to this study. Moreover, primary data will be gathered through the use of survey questionnaires and interviews that will be carried out among the selected sample. Ethical considerations will also be integrated into the process of research. References Alonso, P, and Lewis, G 2001, Public service motivation and job performance: Evidence from the federal sector, American Review of Public Administration, vol. 31, no. 4, pp. 363-380. 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