scholarly journals Commitment in the German Banking and Consulting Industry: Influence of Different Leadership Styles on Employee Commitment

2021 ◽  
Vol 29 (4) ◽  
Author(s):  
Vinzent Zerner ◽  
Eckhard Marten ◽  
Jens Brandt

Purpose: The success of a firm often largely depends on its employees. Therefore, we propose and test the possibility of influencing affective and normative commitment by transactional, transformational, and passive leadership styles. Implications: Demographic change is progressing slowly but steadily; here lies the crucial point. Our results show that only transformational leadership influences the commitment dimensions positively. That can help make the best use of scarce human resources to remain competitive in the long term. Originality/Value: The article provides new information concerning the relationship between transformational and transactional leadership style and their influence on commitment within the banking and consulting sector of the German service industry. It highlights the need for further research into this topic across industries and demographics. For cross-cultural (USA-Germany) comparisons, the article might help to understand differences and trends within globalization. Methodology: To address this question, we conducted interviews with 197 employees of the financial service sector in Germany to confirm the relationship between leadership styles and employee commitment. In order to verify and extend previous research, we planned an explanatory study. We used the multiple regression analysis to examine this relationship. Findings: The results provide new evidence for German participants, which show (1) that transformational leadership is the “optimum” to facilitate commitment and is completely decoupled from the other leadership styles. (2) Preliminary studies revealed a preference toward transactional leadership, which correlated positively with affective and normative commitment. The present study cannot confirm this correlation. (3) Passive leadership correlates negatively with commitment, which indicates that the avoidance of passive leadership is essential. In sum, the correlation for different leadership styles (except transactional leadership style) is higher than in the preliminary studies. This indicates that the relationship between leadership styles and affective and normative commitment is exceeding the assumptions.

2018 ◽  
Vol 14 (3) ◽  
pp. 82-100
Author(s):  
Saad G. Yaseen ◽  
Saib Al-Janaydab ◽  
Nesrine Abed Alc

The aim of this article is to investigate the relationship between leadership styles, absorptive capacity and firm's innovation in the Jordanian Pharmaceutical sector. It is a knowledge-intensive industry and one where effective leadership has been very substantial. Findings reveal that transformational leadership style and transactional leadership style are antecedents to absorptive capacity and a firm's innovation. The results confirm a significant and direct relationship between both leadership styles and firm innovation, and indirectly through absorptive capacity. Overall, the research's findings provide valuable insights for managers to foster absorptive capacity and innovation of their firms.


2021 ◽  
Vol 3 (29) ◽  
pp. 58-69
Author(s):  
Fahad Alharbi ◽  
◽  
Abdoulrahman Aljounaidi ◽  

This paper aims to investigate the relationship between independent and dependent variables. First relation between transformational leadership and employee performance. The second relation discuss in this paper between transactional leadership and employee performance. Researcher dependent on previous studies to conduct this research. Based on the previous studies reviewed and discussed, the results showed that the transformational leadership style has weak positive role effect on the employee performance inside organisations that they work in. However, the result of previous studies on the transactional leadership style refers to the strong positive role on employee performance in organisations that they work in. Leaders have to enhance the role of transactional leadership styles in organisations that they manage them, to improve and develop the relationship between them and their subordinates in to increase the performance of their employee. Leaders should not follow the transformational leadership style because the results of previous studies are refer to a weak positive role on employee performance , and need more studies on transformational leadership to prove the role of it in different cultures and organisations. For further research in this scope, researcher recommended to conduct research in different cultures or organisations to determine leadership style has strong positive role on employee performance beside transactional leadership.


2013 ◽  
Vol 10 (4) ◽  
pp. 390-399 ◽  
Author(s):  
Jeevarathnam Parthasarathy Govender ◽  
Hari Lall Garbharran ◽  
Roland Loganathan

Research has suggested a relationship between leadership style and job satisfaction. This paper examines this relationship in the context of a developing country, viz., South Africa. The objective of the paper is to assess the relationship between the two variables as well as the influence of biographical variables on leadership style and job satisfaction. The survey was based on the Minnesota Satisfaction Questionnaire and the Multifactor Leadership Questionnaire. The results suggest a significant correlation between the three leadership styles, viz., transformational leadership, transactional leadership and laissez-faire leadership, and job satisfaction. There were no significant differences between the biographical variables and the three leadership styles.


2012 ◽  
Vol 01 (07) ◽  
pp. 100-111
Author(s):  
Obiwuru Timothy C. ◽  
Okwu, Andy T. ◽  
Akpa, Victoria O. ◽  
Nwankwere, Idowu A.

This study has investigated the effects of leadership style on organizational performance in small scale enterprises. The major objective was to determine effect of leadership styles on performance in small scale enterprises. Transformational and transactional leadership styles were considered in this study. Transformational leadership behaviours and performance/outcome considered relevant in the study were charisma, inspirational motivation and intellectual stimulation/individual consideration; and effectiveness, extra effort and satisfaction, respectively. Transactional leadership bahaviours and performance/outcome variables were constructive/contingent reward and corrective/management by exception; and effort, productivity and loyalty/commitment, respectively. The study followed a survey design, and employed evaluative quantitative analysis method. Analysis was based on primary data generated through a structured Multifactor Leadership Questionnaire (MLQ) administered on respondents. Responses to research statements were scaled and converted to quantitative data via code manual developed for the study to enable segmentation of the data responses into dependent and independent variables based on leadership behaviours and associated performance variables. OLS multiple regression models were specified, estimated and evaluated. The result showed that while transactional leadership style had significant positive effect on performance, transformational leadership style had positive but insignificant effect on performance. The study concluded that transactional leadership style was more appropriate in inducing performance in small scale enterprises than transformational leadership style and, therefore, recommended transactional leadership style for the small enterprises with inbuilt strategies for transition to transformational leadership style as the enterprises developed, grew and matured.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Albert Puni ◽  
Sam Kris Hilton ◽  
Benedicta Quao

Purpose While substantial a number of research studies have examined the effect of leadership styles on work-related behaviour, the interaction effect of transactional-transformational leadership on work-related behaviour has been rarely investigated in a developing context. Thus, this study aims to examine the interaction effect of transactional-transformational leadership on employee commitment in Ghana. Design/methodology/approach The study used descriptive and cross-sectional survey designs. Cross-sectional data was obtained from 360 employees in the aviation industry of Ghana and analyzed using descriptive statistics, correlation and hierarchical regression techniques. Findings Transactional leadership style has a significant positive effect on employee commitment. However, when transformational leadership was added on transactional leadership base, there was no augmentation effect of transformational leadership style in predicting employee commitment. The results further indicate that there was a negative interaction effect of transactional and transformational leadership styles on employee commitment. Practical implications The findings imply that organizational leaders can improve employee commitment by purely resorting to transactional leadership behaviours. Leaders can also enhance employee commitment by augmenting transactional leadership behaviours on transformational leadership, as the reverse has no augmentation effect. Originality/value This study considerably complements existing leadership literature by establishing how a transformational leadership style can augment and/or interact with transaction leadership style to influence employee commitment in a developing country.


Author(s):  
Satrijo Budiwibowo

<p>Transactional leadership is described as providing an explanation of employees responsibilities and rewards they can expect if the specified standards is achieved. Transformational leadership approach motivates employees, so that they can thrive and achieve high levels of performance. In addition it is also necessary to support the performance of the good discipline of employees. Broadcasting companies who have employees working on the division of operational and management needed different leadership style to support the realization of optimal performance.</p><p> This study used a qualitative approach. Sample was 136 people who are determined by purposive sampling technique. The research instrument used Likert scale models. Data analysis using validity test, realibitas test, the classical assumption, hypothesis testing, multiple linear regression analysis, analysis of correlation coefficients and determination.</p><p> The results showed that together transactional leadership styles, transformational leadership styles, work discipline affect the performance of the company's employees broadcasting. Partially transactional and transformational leadership style had no effect on performance. And partially work discipline most dominant effect on performance.</p><p> <strong>Keywords</strong>: Influence of Transactional, Leadership Style and Discipline Performance</p>


2013 ◽  
Vol 12 (11) ◽  
pp. 1411 ◽  
Author(s):  
Ajay K. Garg ◽  
D. Ramjee

The influence of leadership style on employee commitment for the organisation has not been adequately addressed in the Parastatal companies in South Africa. A need therefore exists for greater understanding of the relationship between the leadership style and work-related attitudes (such as employee commitment) in order to develop a leadership style that will encourage organisational commitment. This study examined the relationship between leadership style, and employee commitment. Managers and their subordinates participated in the study. 348 questionnaires were distributed, 58 to managers and 290 to their subordinates. Final data for analysis included responses from 197 participants (34 managers, and 163 subordinates). 163 respondents rated their managers leadership behaviour on Bass and Avolios (1997) multi-factor leadership questionnaire (MLQ) and Meyer and Allens (1997) organisational commitment questionnaire (OCQ). A series of statistical procedures were followed to analyse the data. Hypotheses were tested on two levels. First, correlations among managers and subordinates with regard to the MLQ, and then the MLQ versus the OCQ. Results revealed a weak positive yet significant relationship between transformational leadership and affective commitment, normative commitment and continuance commitment. Transactional leadership had a weak but significant positive correlation with normative commitment, and Laissez-faire results indicated a weak negative yet significant correlation to affective commitment and normative commitment. Overall findings from this study suggest that leadership styles do play important roles in determining levels of affective commitment, continuance commitment and normative commitment. This study contributes to the bank of findings relating to the development of leadership and organisational commitment, not only in South Africa, but within the Parastatal organisations in particular.


2018 ◽  
Vol 39 (2) ◽  
pp. 309-323 ◽  
Author(s):  
Muhammad Mustafa Raziq ◽  
Felipe Mendes Borini ◽  
Omer Farooq Malik ◽  
Mansoor Ahmad ◽  
Mehwish Shabaz

Purpose The purpose of this paper is to examine the mediating role of goal clarity in the relationship between leadership styles and project success. The paper draws on full-range leadership theory, and contextualizes leadership styles such as transformational leadership style, and transactional leadership style (active management by exception, and contingent reward) to temporary project environment. Design/methodology/approach Data are collected (in year 2017) from 248 individuals working in ten large project-based organizations from different sectors, each having multiple units in Pakistan. Respondents comprise functional managers and individuals (who have lead or worked on projects), as well as dedicated project managers. Findings Goal clarity partially mediates the relationship between transformational leadership style and project success. However, in case of the transactional leadership style, there is no mediation as transactional leadership style is not associated with goal clarity. Furthermore, contingent reward is positively associated to project success, while active management by exception is negatively associated to project success. Originality/value Research suggests that the underlying mechanisms of the relationship between leadership styles (transactional and transformational) and project success are less clear and need to be further explored. This study contributes to literature by answering such calls, and examines possible underlying mechanisms (i.e. goal clarity) in the relationship between leadership styles and project success.


2021 ◽  
Vol 3 (4) ◽  
pp. 78-86
Author(s):  
Eliza Mwakasangula ◽  
Kelvin M Mwita

Tanzania public sector has been undergoing various reforms to improve public service delivery and employee satisfaction. The government has been trying to improve employee welfare and create conducive work environment for the public servants. Despite the efforts, job satisfaction levels of staff in the Tanzania public sector are generally low and unsatisfactory. The study examined the relationship between leadership styles and job satisfaction in Tanzania public sector. The study intended to achieve two specific objectives. The first objective was to examine the relationship between transformational leadership style and employee job satisfaction. The second objective was to examine the relationship between transactional leadership style and employee job satisfaction. The study used Morogoro Municipal Council as a case study from which data were collected by using a close ended questionnaire from 92 respondents. Descriptive and inferential statistics were employed. The study found that job satisfaction was average among the respondents with mean value of 3.04. Comparatively, transactional leadership mean value was higher (Mean=4.14) than that of transformational leadership (mean=3.28). Regression analysis showed that both transactional leadership style (β=0.585, p=0.000) and transformational leadership (β=0.032, p=0.001) were found to be significant predictors of job satisfaction. The results showed that transformational leadership style had a stronger relationship with job satisfaction than transformational leadership style.


2019 ◽  
Vol 118 (11) ◽  
pp. 323-332
Author(s):  
P. LIBIA

The purpose of this study was to examine the relationships on leadership styles (transformational leadership style, transactional leadership style and laissez-faire leadership styles), and their practices in Chennai corporate hospitals. The success Organizational is too achieving its goals and objectives depend on the leaders of the organization and their leadership styles. The study revealed that the transformational leadership style has a significant, positive relationship on the leadership styles. However, we found that the transactional and laissez-faire leadership styles have a negative relationship to hospital management practices. Based on the results, it is recommended that hospitals recruit leaders with transformational style, and also hold seminars to train current leaders to become more transformational.  


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