scholarly journals Leadership Practice for Building Trust of Followers: Decisive Factors of Organizational Performance

2020 ◽  
Vol 3 (2) ◽  
pp. 45-57
Author(s):  
Ba Phong Le ◽  
Quang Thang Tran

Purpose - Leadership plays a decisive role in key organizational outcomes. To investigate the effects of leadership and its mechanism on organizational performance, this paper examined how transformational leadership impacts followers’ trust for improving operational and financial performance in the case of Vietnamese firms. Design/Methodology - This study used the Structural Equation Modeling to assess the correlation among the constructs based on using survey data of 285 employees at 60 manufacturing and service companies. Findings - The findings revealed that employees' trust in leadership acts as a mediating mechanism in the relationship between transformational leadership and organizational performance. The transformational leadership style of leaders has greater effects on financial performance, while employee’s trust has larger effects on operational performance. This study calls attention to the importance of raising employee trust to link transformational leadership and organizational performance. Practical and theoretical implications - From a practical point of view, the paper brings more knowledge and insights for CEO/managers on the right pathway to enhance organizational performance. The paper also provides theoretical initiatives on the leadership theory and the new pathway to promote operational and financial performance.

SAGE Open ◽  
2020 ◽  
Vol 10 (2) ◽  
pp. 215824402092742 ◽  
Author(s):  
Than Thanh Son ◽  
Le Ba Phong ◽  
Bùi Thị Thu Loan

The purpose of this study is to explore the effects of transformational leadership and knowledge-sharing processes on operational and financial performance in Chinese firms. The article applied structural equation modeling to inspect the influence of transformational leadership on knowledge sharing and their effects on organizational performance, based on the data collected from 263 respondents in 112 manufacturing and service companies in China. The findings show that knowledge collecting and knowledge donating mediate the correlation between transformational leadership and two specific aspects of organizational performance. In addition, transformational leadership has a greater influence on financial performance, whereas knowledge sharing is more significantly associated with operational performance. This article highlights the significance of practicing transformational leadership to stimulate individuals’ knowledge-sharing behaviors, which are important prerequisites for improving organizational performance. The article provides clearer understanding for scholars and practitioners about the new and effective pathway to promote firm’s operational and financial performance.


2014 ◽  
Vol 114 (3) ◽  
pp. 740-757 ◽  
Author(s):  
Yi-Feng Yang

This study evaluates the influence of leadership style and employee trust in their leaders on job satisfaction. 341 personnel (164 men, 177 women; M age=33.5yr., SD=5.1) from four large insurance companies in Taiwan completed the transformational leadership behavior inventory, the leadership trust scale and a short version of the Minnesota (Job) Satisfaction Questionnaire. A bootstrapping mediation and structural equation modeling revealed that the effect of transformational leadership on job satisfaction was mediated by leadership trust. This study highlights the importance of leadership trust in leadership-satisfaction relationships, and provides managers with practical ways to enhance job satisfaction.


2021 ◽  
Vol 3 (1) ◽  
pp. 14-21
Author(s):  
Dr. Khan Sarfaraz Ali ◽  
Mezbah Ul Islam ◽  
Tamanna Nowrin Azam ◽  
Wares Ul Matin

In recent years, job engagement has received considerable attention among academic community and business professionals. Still such issue needs to be prioritized in the research especially as it is an essential antecedent of organizational performance. This study aims at examining the relationship between transformational leadership style and organizational performance and to explore whether job engagement can influence on this relationship. Study data were collected from the employees working in a mobile phone company in Bangladesh and collected data were analyzed using SPSS version 20. In order to test the study hypotheses Partial Least Squares-Structural Equation Modeling (PLS-SEM) was used. The result of measurement model indicates that the relationship between transformational leadership style and organizational performance is statistically significant. In terms of mediation effects, job engagement mediates the relationship between transformational leadership style and organizational performance.


FOCUS ◽  
2020 ◽  
Vol 1 (1) ◽  
pp. 28-42
Author(s):  
Sugito Efendi ◽  
Suwardi Suwardi

This study aims to analyze the influence of leadership style, competence, compensation on employee performance and the impact on organizational performance on the employees of the Directorate General of Agricultural Infrastructure and Facilities. This study used a survey method by distributing questionnaires to employees of the Directorate General of Agricultural Infrastructure and Facilities. As the respondent. This research method uses quantitative methods with technical analysis of Structural Equation Modeling (SEM) with the AMOS version 22 application. The research sample used in this study were 158 respondents. The results showed that leadership style, competence and compensation directly had a positive and significant effect on employee performance. Leadership style, competence and compensation directly have a positive and significant effect on organizational performance. Leadership style, competence and compensation indirectly have a positive and significant effect on organizational performance through employee performance.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kyoungshin Kim

Purpose This study aims to introduce adaptive performance as an organizational performance dimension and examine the possible dynamics between the dimensions of a learning organization and adaptive performance. Design/methodology/approach This study used a survey and applied factor analysis and structural equation modeling analysis. Findings The results supported adaptive performance as an organizational performance dimension. Also, the findings of this study empirically proved that perceived knowledge and adaptive performance mediate the positive relationship between a learning organization and perceived financial performance. Research limitations/implications In addition to the current Dimensions of a Learning Organization Questionnaire (DLOQ) studies, this study revealed that adaptive performance, one of the nonfinancial outcomes improved by learning, had a significant effect on financial performance. Also, this study provided evidence of the additional construct validity of the DLOQ, particularly its performance measures. Practical implications This study advises practitioners to take a close look at how learning and organization development activities improve organizational performance overall. Originality/value This study supported a claim that learning and organization development activities in organizations have a strong potential to induce variance in intangible performance.


2012 ◽  
Vol 111 (2) ◽  
pp. 545-564 ◽  
Author(s):  
Yi-Feng Yang

The present paper evaluates the effect of transformational leadership on job satisfaction and change commitment along with their interconnected effects (mediation) on cooperative conflict resolution (management) in customer service activities in Taiwan. The multi-source samples consist of data from personnel serving at customer centers (workgroups), such as phone service personnel, customer representatives, financial specialists, and front-line salespeople. An empirical study was carried out using a multiple mediation procedure incorporating bootstrapping techniques and PRODCLIN2 with structural equation modeling (SEM) analysis. The results indicate that the main effect of the leadership style on cooperative conflict resolution is mediated by change commitment and job satisfaction.


2020 ◽  
pp. 002085232094231
Author(s):  
Koen Migchelbrink ◽  
Steven Van de Walle

Red tape is seen as a destructive organizational force that reduces public officials’ motivation and curtails organizational performance. By increasing the time, cost, and effort required to inform the public and coordinate participation, red tape has also been said to reduce public officials’ positive attitudes toward public participation. However, research on the effects of red tape on public officials’ attitudes toward public participation remains inconclusive. This study examines how the lack of functionality and compliance burden of rules affect public officials’ attitudes toward public participation. Using cross-sectional survey data of n = 862 municipal public officials and a structural equation modeling approach, this study finds that public officials’ perceptions of the lack of functionality of rules are positively associated with attitudes toward public participation, and that perceptions of the compliance burden of rules are negatively associated with attitudes toward public participation. Points for practitioners • Red tape affects public officials’ attitudes toward public participation. • The compliance burden of rules is negatively associated with public officials’ attitudes toward public participation. • The perceived lack of functionality of rules is positively associated with public officials’ attitudes toward public participation. • The effects of red tape are multifaceted and should be examined from a multidimensional point of view.


2021 ◽  
pp. 719-728 ◽  
Author(s):  
Sarminah Samad ◽  
Waleed Abdulkafi Ahmed

While some organizations realize the important role of strategic planning (SP) and leadership in influencing their business performance, it is unknown what SP dimensions and leadership style are required to improve the performance of banking institutions. The purpose of this study is to investigate the effects of transformational leadership (TL) style and SP dimensions (strategic planning level, implementation and barriers) on organizational performance. To this end, a self-administered questionnaire is distributed to a sample of 246 managerial employees from private banks in Yemen. The analysis with structural equation modelling using partial least squares indicates that TL style and SP dimensions significantly influence the performance of Yemeni banks. The results reveal that TL and SP dimensions are profoundly needed to enable Yemeni banks to propel to improved bank performance. The results draw several pertinent implications for decision makers that will help enhance the performance of the banking sector. Limitations from the findings and recommendations for further research are put forward.


Author(s):  
Tuan Luu

Purpose – This inquest into consumer goods companies in Vietnam aims to examine if leadership influences corporate social responsibility (CSR) and emotional intelligence (EI), which in turn influences upward influence behavior. The paper aims to discuss these issues. Design/methodology/approach – Structural equation modeling approach contributed to the analysis of 406 responses returned from self-administered structured questionnaires sent to 690 middle level managers. Findings – From the findings emerged a model of upward influence behavior and its antecedents such as leadership, CSR, and EI. Transformational leadership, ethical CSR, and high level of EI were found to nurture organizationally beneficial upward influence tactics. Originality/value – Through the findings of the study, the insight into the leadership-based model of upward influence behavior underscores the role of transformational leadership style, ethical CSR, as well as team EI in the cultivation of organizationally beneficial upward influence tactics in consumer goods companies in Vietnam business context.


Author(s):  
G. Ngurah Suteja Putra ◽  
I Gusti Ayu Manuati Dewi

This study aims to analyze the effect of transformational leadership and organizational culture on employee performance mediated by job motivation. The population in this study included 134 Civil Servants in the Secretariat of the Bali District/City Election Commission with a total sample of 100 people using the proportional random sampling method. Data analysis techniques were performed using Structural Equation Modeling (SEM) with the Partial Least Square (PLS) approach. Job motivation is able to mediate the relationship between transformational leadership and organizational culture on employee performance partially. The Head of the Secretariat of the KPU of Regency/City in Bali needs to develop a transformational leadership style by providing motivation that inspires subordinates to work better when job motivation increases will be directly proportional to an increase in employee performance. In addition, a strong organizational culture such as information disclosure and participation of all members of the organization in achieving organizational goals can be developed continuously. When job motivation increases, it will encourage employees to improve the quality and timeliness of employees in completing work.


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