The Impacts of Transformational Leadership Style on Employee Performance - Research Proposal Example

1.0 INTRODUCTION The main goal of management in an organization is to ensure that corporate goals and objectives are met in an efficient manner (Avolio, 1997). This in essence this means that the manager has a great responsibility in ensuring that their subordinates and other employees get to perform their functions and duties satisfactorily and possibly to their level best. Indeed Hofstede (1977) notes that the management or leadership style of a person is crucial to their organization’s performance. While each management style has its unique benefits and limitations, these are based on certain assumptions (Lowe, 1996). In order to decide on the most effective approach, the manager must consider the experience and skill levels of employees, the kind of work involved, the organization’s environment and the manager’s natural or preferred style (Schriesheim, 1982). While positive leadership commonly give rewards such as independence and training to employees with an aim of increasing employee morale, negative leadership emphasizes giving penalties. A close analysis of the company’s management has revealed that most supervisors in the company have preferred the application of transformational management over other management styles. The impacts of this management style theoretically include improved employee morale and performance according to Bass (1998). It is however unclear whether its application in the company has and will continue to yield positive fruits. It is in this respect that the organization seeks to carry out a research to make certain whether or not the transformational management style is effective in practice as it is claimed to be in theory with regard to this company. 1.1 MAIN OBJECTIVE 1. To determine the impacts of transformational leadership style on employee performance 1.2 SPECIFIC OBJECTIVES 1. To ascertain which management style supervisors in the company apply when dealing with employees. 2. To determine the impacts of various facets of transformational leadership (intellectual stimulation, inspirational motivation, individualized considerations and idealized influence) on employees. 3. To determine the effects of the management style used by the company’s supervisors on employee motivation, commitment, attendance and productivity 4. To determine whether the use of transformational style should be maintained and universally embraced by management or not. 1.3 SCOPE The research will be limited to the company and its employees and will therefore preclude the involvement of other persons or parties. While mention of several management styles will be made, the research will be biased towards the application of transformational leadership vis a vis autocratic leadership. Further, the research will mainly concentrate on determining the effects of supervisors’ application of transformational leadership on employees and their performances at work. In this respect, the research will focus on measuring the impacts of the management style in terms of employee commitment, absenteeism and performance as well as production turnover. 1.4 IMPORTANCE AND BENEFITS OF THE STUDY In appreciation of the fact that management style of an organization’s leadership has significant and measurable impacts on its (the organization’s) performance, there is a need to determine the kind of leadership this organization mainly applies. This study will fill this gap and further reveal the effects of the management style on employees and their general work performance and motivation level. 2.0 LITERATURE REVIEW The management or leadership style of a person is crucial to the organization’s style. In other words, subconsciously or consciously, one’s uses at least one, but in many cases a combination of, management style. What this means is that understanding the leadership style one uses and its impact on employees can help the manager a better and more flexible leader (Sorcher and James 2002). 2.1 LEADERSHIP STYLES Leadership or management style may be defined as he approach and manner of motivating, implementing plans and providing direction to people (Bass, 1997). Management styles are usually based on certain theories and assumptions. This means that one’s management style will be based upon one’s preferences, beliefs and values. Also important in the determination of an organization’s leadership style according to Newstrom and Keith (1993) is the organization’s norms and organizational culture which will encourage certain styles while discouraging the application of others. A research conducted in 1939 led by Kurt Lewis identified a number of styles that may be applied in leadership. The research identified three main leadership styles which included: Authoritarian or autocratic Participative or democratic Delegative or Free Reign Further research conducted by management professionals such as Blake, Mouton’s, Likert, and Daniel Goleman revealed the existence of other management styles which are actually expansions or subsets of the three mentioned above. In general these include: Participative Leadership Quiet Leadership Situational Leadership Transactional Leadership Transformational Leadership Servant Leadership Charismatic Leadership (Kotter, and John, 1999) Other management styles that have widely been condemned for their negative impacts and influences include: Mushroom Management, Kipper management, Micromanagement, Seagull Management and Post-hoc Management. While different management styles may usually be applied in different situations, several factors are considered in choosing the best style to be applied. In order to decide on the most effective approach, the manager must consider the experience and skill levels of employees, the kind of work involved, the organization’s environment and the manager’s natural or preferred style (Lewin, LIippit and White, 1939). Instinctively, the manager may always shift between different leadership styles depending on a number of factors with an aim of improving work performance and organizational efficiency. While positive leadership commonly give rewards such as independence and training to employees with an aim of increasing employee morale, negative leadership emphasizes giving penalties (Skagiwatershed inc., 2008). Penalties include giving unpaid offs, job loss, public reprimand among other reactions. As such, negative approaches are applied on the premise that by frightening employees higher productivity is achieved. Owing to the potentially damaging cost of negative leadership on the human spirit and, by extension, one’s performance at work, the manager must be careful to use the approach. 2.2 TRANSFORMATIONAL LEADERSHIP Transformational management is a style of management that focuses on the creation of value and positive changes in employees (Alimo-Metcalfe & Alban-Metcalfe, 2001). Leaders who apply this style focus on changing their followers towards being helpful, harmonious, mindful and encouraging towards each other according to Einstein and John (2001). The style is known to enhance morale, performance and motivation of the leader’s group. Transformational leadership may be measured by the leader’s influence on followers at the very basic level. Followers develop trust, loyalty, admiration and respect for the manager and will exceed expectations in their activities (Kotlyar and Karakowsky, (2006). Motivation and transformation of followers is achieved through intellectual arousal, charisma, idealized influence, as well as individual consideration (Pielstick, 1998). The leader on their side tries to find new ways of working and makes every attempt to identify new threats and opportunities with an aim of altering the environment and therefore changing the status quo. 2.3 COMPONENTS OF TRANSFORMATIONAL MANAGEMENT Generally, there are four components of transformational management as discussed below: 2.3.1INDIVIDUALIZED CONSIDERATION The leader acts as a coach or mentor by attending to every individual’s needs and concerns (Kotlyar and Karakowsky, 2007). Communication between the two parties is often open and the leader in an empathetic and supportive manner challenges the follower. The individual’s efforts and contributions to the group are celebrated and respect is held supreme. The follower’s will and desires for self development drives them therefore to be intrinsically motivated in their work. 2.3.2 INTELLECTUAL STIMULATION Transformational leaders take risks, solicit ideas from followers and challenge assumptions (Jung and Francis, 2001). They therefore encourage stimulate and creativity in followers nurturing them to develop into independent thinkers. Learning is valued and new experiences are viewed as opportunities to develop the individual and the group in general. Yet again, followers are encouraged to think deeply, ask questions and develop better ways of performing their duties. 2.3.3 INSPIRATIONAL MOTIVATION Transformational leadership through precise and powerful communication, inspiration and motivation challenge their subordinates to adopt high standards, are optimistic about the organization’s future and assign meaning to the work at hand (Einstein and John, 2001). Meaning and purpose therefore provide the drive that keeps the group in forward motion. 2.3.4 ROLE AND IDENTIFICATION MODEL Transformational leaders design the communal purpose, vision, norms and values that bring meaning to work. By planting seeds of pride and mission, followers’ performances are enhanced with the leader being a worthy role model (Jung and Francis, 2001). They therefore internalize goals and attitudes act an in the same spirit even in the leader’s absence. 3.0 METHODOLOGY  During research, it is imperative to apply acceptable methodologies that will in effect reflect the actual state of events in the field. This section is describes how the research will be carried out. The research will be limited to the company and its employees. Further, the research will mainly concentrate on determining the effects of supervisors’ application of transformational leadership on employees and their performances at work. Essentially, the research will especially measure the impacts of the management style in terms of employee commitment, absenteeism and performance as well as production turnover. Since the company’s human resource is divided into work teams, it is important that each of the work teams is represented in the survey. In this respect, each of the company’s ten departments will be represented. A random sample of 100 employees will be used for the survey, ten from each department. This sample will be used as it will reflect the true status of the company. The survey will be conducted using questionnaires. Questionnaires will be used owing to the low costs involved and its convenience compared to other survey methods. Respondents will consist of only the company’s employees all of whom are adults (at least 18 years in age). No secondary sources of data will be used for the study as they are quite inapplicable in this situation. Since all employees understand the English language, the questionnaires will be written in English. Guidance will however be given to respondents whenever necessary with an aim of ensuring that questions are answered clearly and accurately. The study is also expected to reveal the relationship that exists between their supervisor’s management style and work performance and employee motivation. The survey which will embrace all the company’s departments (ten in number) will involve determining first the management style of each department’s supervisor. The departments will be coded with each number 1-10 representing the employee’s department. Management style will be distinctly categorised into four groups with each being assigned a unique value label as follows: Transformational management=1 and Autocratic management =2. Similarly, employees’ motivation levels will be assigned four value labels as follows: Highly motivated =1, Moderately motivated =2, Less motivated =3, and Absolutely unmotivated = 4. Commitment level will be rated by the respondent’s loyalty and devotion to work. Four levels will be used in the measurement of commitment: Highly committed, Moderately committed, Less committed and Absolutely uncommitted. In like manner, employee absenteeism level (which measures level of work attendance) will be measured using four levels: Very low absenteeism =1, Moderate absenteeism =2, High absenteeism =3, and exceptionally high absenteeism =4. While motivation, attendance and other positive attributes may reign high among employees, there is a possibility of having low turnovers which ultimately would be factored in the overall impact of transformational (and/or autocratic) management. This means that employee turnovers must be measured and related to the management style. In this respect, turnovers will be measured in five levels: Exceptionally high =1, Very high =2, High =3, Low =4, and Exceptionally low =5. Owing to the relatively simple nature of the survey and the number of respondents involved, the survey is scheduled to run for a period of ten days with data collection being completed in two days. 3.1 ETHICAL ISSUES Several international standards have been developed aid and guide the performance of research and surveys. Generally these standards are aimed at ensuring that research surveys are practical enough while not infringing on respondents (and other parties) rights. During this research, only scientifically approved, tested and accepted methods will be applied. Respondents will under no circumstance be compelled to participate in the research. In other words, participation will be out of free will and utmost good faith. In order to assure free will participation, each and every participant in the research will personally sign a consent form. This will go a long way in preventing possible litigations against the company. In addition, respondents identities will not be taken; personal identifications will not be required at any point during the research. In other words, the study will be conducted in strict compliance with identity protection research conditions. Owing to the fact that all respondents will be adults there no restrictions related to seeking parents’ or guardians’ consents is anticipated as it normally is when dealing with juveniles and minors. Further, the primary data collected from the survey will be kept secret and only used by the company. Disclosure of any information regarding participants will be forbidden at all costs. In general the study will be performed in strict compliance with internationally accepted procedures, standards and methods. Apart from helping in the avoidance of negative publicity and possible litigations applying such high standards will go a long way in ensuring that the survey gives a truly representative view of the effects and impacts of transformational management on employee performances. 4.0 EXPECTED RESULTS AND DATA ANALYSIS A truly representative picture of the company’s employee performance in relation to transformational management is anticipated with the completion of the research. The data directly drawn from the survey will be tabulated as presented in the table below for easier analysis. Data table 1: Employee performance characteristics S/No. Respondent’s Sex Department code (1-10) Supervisor’s leadership style (1-2) Employee’s motivation level (1-4) Employee commitment level (1-4) Employee absenteeism level (1-4) Employee turnover level (1-5) 1 2 3 to 100 Data gathered from the study will be analyzed to determine if there are any correlations between supervisors’ transformational leadership styles and employee motivational and work performance. Further, regression analyses will be conducted in view of the various variables involved in the study. Once all study activities have been completed in compliance with standards recognized internationally, the results will be viable for use as secondary data for the organization’s future reference. Based on the facts that will be realised from the study’s results, the management will decide on the appropriateness of the management style currently in place. In case the transformational management style does not prove to be adding value, the management will have to instruct the adoption of other more appropriate style(s). In general, it is hoped that the study will give a clear indication of employee satisfaction and performance levels with the status quo. REFERENCES Alimo-Metcalfe, B. & Alban-Metcalfe, J. (2001) “The development of a new Transformational Leadership Questionnaire”, The Journal of Occupational & Organisational Psychology, 74, 1-27 Avolio, B. J. (1997) “The Great Leadership Migration to a Full Range Leadership Development System” In Kellogg Leadership Studies Project, Transformational Leadership Working Papers, The James MacGregor Burns Academy of Leadership. Bass, B.M. (1997) “The Ethics of Transformational Leadership” In Kellogg Leadership Studies Project, Transformational Leadership Working Papers, The James MacGregor Burns Academy of Leadership. Bass, B. M. (1998) Transformational leadership: Industrial, military, and educational impact, Mahwah, NJ: Erlbaum. Einstein, W. O. and John H. H. (2001) “Transforming Leadership: Matching Diagnostics to Leader Behaviors.” The Journal of Leadership Studies 8, no. 1 pp48-60. Hofstede, G. (1977). Culture and Organizations: Software of the Mind, New York: McGraw-Hill. Jung, D. I. and Francis J. Y. (2001) “Perceptions of Transformational Leadership among Asian Americans and Caucasian Americans: A Level of Analysis Perspective.” The Journal of Leadership Studies 8, no. 1: pp3-21. Kotlyar, I. and Karakowsky, L. (2006). “Leading Conflict? Linkages Between Leader Behaviours and Group Conflict” Small Group Research, Vol. 37, No. 4, pp377-403 Kotlyar, I., & Karakowsky, L. (2007). “Falling Over Ourselves to Follow the Leader”, Journal of Leadership & Organizational Studies, Vol. 14, No. 1, 38-49 Kotter, J. P. and John P. K. (1999) What Leaders Really Do. Boston, MA: Harvard Business School Press. Lewin, K., LIippit, R. and White, R. K. (1939) Patterns of aggressive behaviour in experimentally created social climates. Journal of Social Psychology, 10, 271-301 Lowe, K. B. (1996) “Effectiveness Correlates of Transformational and Transactional Leadership: A Meta-Analytic Review of the Multifactor Leadership Questionnaire Literature”, Leadership Quarterly 7, no. 3: n.p. Newstrom, J. W. & Keith D. (1993) Organizational Behaviour - Human Behaviour at Work, New York: McGraw-Hill. Pielstick, C.D. (1998) “The transforming leader: A meta-ethnographic analysis”, Community College Review, 26(3), pp15-34. Schriesheim, C. A. (1982) The Great High Consideration- High Initiating Structure Leadership Myth: Evidence on its Generalizability. The Journal of Social Psychology, April, 116, pp. 221-228. Skagiwatershed inc. (2008) Leadership style. Available http://www.skagitwatershed.org/~donclark/leader/leadstl.html [Accessed 24th October, 2009] Sorcher, M. and James B. (2002) “Are You Picking the Right Leaders?”, Harvard Business Review, 78. APPENDICES APPENDIX 1: MEASUREMENT INSTRUMENT Insert Questionnaire here. APPENDIX 2: SPECIAL FACILITIES AND RESOURCES (IF REQUIRED) SPSS for data analysis Four employees of the company will be involved in data collection. The employees will be go through a short course on how to go about he data collection exercise. A consent form will be signed by respondents to ensure that participation was subject to free will and not coercion. APPENDIX 3: WORK SCHEDULE The following table outlines the activities involved in the research and how time will be spent. Table 1: Work Schedule S/No. Activity Time in Days 1 2 3 4 5 6 7 8 9 10 1 Acquisition of Resources 2 Preparation of research materials 3 Data collection 4 Data analysis 5 Writing of the report 6 Presentation and submission of the report Read More