LITERATURE the most widely discussed topic by the researchers

LITERATURE REVIEW

Concept of leadership

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Leadership
is as an interpersonal process that involves attempts to influence other people
in attaining organizational goals (Hitt, Michale A.; Black, J. Stwart; Porter,
Lyman W., 2009). The leader is someone who can influence others and at the same
time has managerial authority; leadership is what leaders do (Robbins &
Coultar, 2009). According to Hitt et al. (2009), effective leadership is the
influence that assists a group or organization to perform successfully and meet
its goals and objectives. Leadership continued to be
one of the most widely discussed topic by the researchers from all over the
world (Dvir, T., Eden, D., Avolio, B., & Shamir, B. 2002). Judge, T.A., & Piccolo, R.F. (2004) described leadership as a process to influence people in
order to get desired results. Koene, B. A., Vogelaar, A. L., &
Soeters, J. L. (2002) proclaimed that leadership
plays a vital role in determining the success and failure of a firm. Marie,
K. F. (2008) identified that leaders help to
stimulate, motivate, encourage, and recognize their followers in order to get
key performance results. There are many different styles of leadership.
Mosadeghard (2003) had pointed out following styles of leadership: autocratic,
bureaucratic, laissez-faire, charismatic, democratic, participative,
situational, transactional, and transformational leadership. In this study,
transformational leadership is will be under discussion.

 

Concept of employee job
performance

As organizational performance is used to
view how an organization is doing in terms of level of profit, market share and
product quality in relation to other organization in the same industry so
employees’ performance is considered as how an employee is performing in terms
of quantity and quality of product and service in relation to other employees
in the same industry ( Pradeep, D. D., & Prabhu, N.R.V. 2011).
Organizational performance means the ability of an enterprise to achieve such
objectives as high profit, quality product, large market share, good financial
results, and survival at pre-determined time using relevant strategy for action
(Koontz and Donnell, 1993).  Employee job performance is
the work related activities expected from an employee and how well those activities were executed. Usually business
organizations assess the job performance of each employee on an annual or
quarterly basis. Employee job performance
is the degree to which an employee completes the duties that are required in
order to occupy a given position, which s/he assumes within an organization ( Obasan  &
Hassan ,2014). The performance is usually evaluated by calculating
the values of qualitative and quantitative performance indicators like profit,
cost, and clients. Employees’ job performance is measured by quantity that is
the number of units produced, quality, timeliness, cost-effectiveness,
tardiness etc.

Leadership style

 

Gupta
(1995) proposed that leadership style refers to a person’s behavior. The
behavioral pattern which a person adopts in influencing his followers is known
as the style of his leadership. Different leadership styles exist among teachers
in different situations. Leadership style of a teacher is the outcome of a
teacher’s personality, philosophy, experience, and value system. It also
depends on the type of students and the environment prevailing in organization.
The present study on leadership style and employees’ job performance
concentrates on the two types of leadership styles i.e. transformational and transactional leadership. Transformational and transactional
leadership were first introduced by Burns (1978) in his treatment of political
leadership.

 

Transformational
leadership

Burns
(1978) explained that transformational leadership is observed when leaders
encouraged followers to boost up the level of their morals, motivation,
beliefs, perceptions, and coalition with the objectives of the organization.
Bass (1985) extended Burn’s theory of transformational leadership behaviors
into four parts: individualized
consideration, intellectual stimulation, idealized influence, inspirational motivation.
Transformational leadership focuses on creating a new framework to change the
environment by increasing motivation and morale between the leader and follower
whereas transactional leadership focuses on whether a leader operates within an
existing framework where exchanges take place between the leader and the
follower. If transformational leadership results in followers identifying with
the needs of the leader, the transactional leader gives followers something
they want in exchange for something the leader wants (Kuhnert & Lewis, 1987).
Kent, A. & Chelladurai, P.
(2001) defined
transformational leadership as the process of influencing major changes in
attitudes and assumptions of organizational members and building commitment for
the organization’s mission and objectives. A transformational (extraordinary)
leader raise follower’s consciousness levels about the importance and value of
designated outcomes and ways of achieving them. They also motivate followers to
transcend their own immediate self-interest for the sake of the mission and vision
of the organization. According to Certo and Certo  (2007) transformational leadership is a  leadership that inspires organizational
success by profoundly affecting followers’ belief in what an organization
should be , as well as their values, , such as justice and integrity. This
style of leadership creates a sense of duty within an organization, encourages
new way of handling problems, and promotes learning for all organization
members.  According to Burn (1978) the
four dimensions of transformational leadership are idealized influence,
inspirational motivation, intellectual stimulation, and consideration. Individualized
Consideration Individualized consideration is the
degree to which a leader attends to each follower’s needs, acts as a mentor or
coach to the follower and listens to the follower’s concerns and needs. Intellectual
Stimulation Intellectual stimulation is the generation of new ways of
problem solving through proactive thinking. Such leaders encourage their
followers to be innovative and creative. Inspirational Motivation –
Inspirational motivation means raising expectations and optimism of followers
through providing symbols and simplified emotional appeals Idealized
Influence – Idealized influence is the degree to which a leader acts as a role
model for his followers.

 

Transactional leadership

Jung
and Avolio (2000) described transactional leadership is based on the assumption
that supporters are motivated through a system of rewards and punishment. 
Barbuto (2005) explained the three behaviors that make up the transactional
leadership: contingent reward, management by exception-active, and management
by exception-passive. Bass
(1990a) enumerated transactional leadership as the combination of three
elements namely contingent reward, management by
exception-active, and management by exception-passive. Bass(1985) and
Podsakoff(1990) have identified contingent
reward, which involves leaders clarifying roles and task expectations
and providing contingent rewards on the fulfillment of contractual obligations.
The transactions or exchanges included in contingent reward may include
tangible (e.g., pay increases) or intangible (e.g., recognition) commodities. Management-by-exception (active) –
Management-by-exception (active) refers to a leadership style where leaders actively monitor the work of
their followers, watch for deviations from rules and standards and taking
corrective action to prevent mistakes.
Management-by-exception (passive) –
Management-by-exception (passive) is the degree to which leaders   intervene only when standards are not met or
when the performance is not as per the expectations. They may even use
punishment as a response to unacceptable performance. That is, here leaders wait
until the behavior has created problems before taking action. (Antonakis,
Avolio, & Sivasubramaniam, 2003).

 

Leadership
Styles and Employees’ Job
Performance

 

Prior
research results on the impact of transformational and transactional leadership
styles on employees’ job performance were mixed. For instance, Fernandes & Awamleh (2004) undertook a study on the
impact of transformational and transactional leadership styles on employee’s
satisfaction and performance. The
results of the study revealed a strong effect for transformational leadership
on employees’ performance. Ojokuku, Odetayo and Sajuyigbe, (2012)
conducted a study on the impact of leadership style on organizational
performance with special reference to Nigerian banks. They found that
transformational leadership had positive relationship with performance while
transactional leadership had negative relationship with performance.  Howell and Avolio (1993) also conducted a
study and it confirmed that transactional leadership had a negative impact on
the followers’ job performance. Similarly Bass, (2008) also clarified by a study
that transactional leadership style has a negative impact on employees job performance
and satisfaction.Abdul, Ausnain and Munawar, (2012) examined the impact of
transformational and transactional leadership styles on motivation of employees
in Pakistan and found that both transformational and transactional leadership
styles have positive impact on motivation. Judge and Piccolo (2004) also agreed
that both transformational and transactional leadership have positive
relationship among followers’ motivation. Obasan and Hassan (2014) studied the effect of transformational, transactional and
laissez faire leadership styles on employee performance constructs of
organizational commitment, organizational citizenship behavior and job satisfaction
in the Nigerian public sector. The paper concluded by recommending that
managers should use more of transformational leadership to bring about higher
levels of organizational commitment Schuster (1994) explained that
transformational leadership appeals to higher motivation, while improving the
quality of life for the members of an organization. Transformational leader is
able to motivate his followers, to strive for excellence without the use of
power or authority, by inspiring them through his passion and deep thinking.
Pounder (2008) also explained that the effect of transformational leadership on
subordinates centers on three leadership outcomes: (a) the ability of the
leader to generate extra effort on the part of those being led, (b) subordinates’
perception of leader effectiveness, and (c) their satisfaction with the leader.

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