LEADERSHIP STYLES IN MALAYSIA:
A CASE STUDY OF MIDDLE MANAGEMENT IN TENAGA NASIONAL BERHAD
Wan Ahmad Rudirman Wan Razak Master of Business Administration
International Graduate School of Business Division of Business
University of South Australia
Submitted on this 14 of February in the year 2007 for the partial requirements of the degree of Doctor of Business Administration
UNIVERSFFY O SOU1H AUSTRALIA LIBRARY
"I hereby declare that this paper submitted in partial fulfillment of the DBA degree is my own work and that all contributions from any other persons or sources are properly and duly cited. I further declare that it does not constitute any previous work whether published
or otherwise. In making this declaration I understand and acknowledge any breaches of the declaration constitute academic misconduct, which may result in my expulsion from the program and/or exclusion from the award of the degree"
Name of Candidate
Wan Ahmad Rudirman Wan Razak
Signature of Candidate
Date
14 February 2007
ACKNOWLEDGEMENTS
This dissertation traces a journey covering three years of my life span. Along the way, I have been guided and assisted by a number of people who have added new dimensions
to my understanding of learning and life. Without their support, the completion of this milestone in my life would not have been possible.
I wish to thank my supervisors, Associate Professor Dr. Mohamad Hanapi Mohamad and
Dr. Abu Bakar Sade, for their unwavering support, patience and constructive feedback. I am also thankful to Dr. T. K. Lim, the Leader of DBA Supervisory Panel, for his guidance and words of encouragement.
I am thankful to Dato' Che Khalib Mohamad Noh (President/Chief Executive Officer) and Datuk Azizah Osman (Vice President of Human Resources) of Tenaga Nasional Berhad,
for the opportunity and approval granted in realising this study. A special thank you is dedicated to Muhammad Razif Abdul Rahman (General Manager of Human Resources
Development), Haji Zulkifii Jaafar Sidek and his team as well as the respondents and other staff of Tenaga Nasional Berhad for their support in making this study a reality.
I have a great place in my heart for Associate Professor Dr. Amran Md. Rash i and will be
eternally grateful for his strong and continous support, guidance, optimism and encouragement. I would also like to take this opportunity to convey my special gratitude to Nor Hazlina Mohd Tahir for her assistance throughout this study.
I would like to convey my acknowledgement to my wife Salina Nan who has sacrificed a lot for the past three years, giving up her weekends and vacations to see me through this
journey every step of the way. I am also appreciative of my children Lyana, Farhana, Razin, Raihana and Adlina for their love, support and understanding while I was away to
attend my classes or has locked up myself in study. I also wish to thank my sisters and
brother for their love and support, and for their act of kindness for forgiving me on my inability to attend family gatherings.
Finally, a very special thank you to Mohammad Masroor Ahmed and his wife Farzana Kausar who with great passion and hard work edited this manuscript. Without the support from both of you, this dissertation would not be up to the mark as it is now.
DEDICATION
I am indebted to the two most important persons in this world, my parents; Wan Abd. Razak Wan Ismail and Rakiah Hassan, who will forever be my inspiration. They have provided me with continuous love, support, encouragement and confidence throughout my life.
I
have reached this far mainly because of both of you. Thank you very much.
11
ABSTRACT
The purpose of this study was to investigate the leadership styles and outcomes among Tenaga Nasional Berhad (TNB) middle managers using quantitative method. It has been
theorised that the style of middle management leadership is important for effectively transferring and expanding knowledge and for obtaining effective leadership outcomes.
This revelation provides an impetus for using the Bass' (1985) theoretical approach for determining the middle management perceived style of leadership in TNB, measuring the
effectiveness of the perceived style, determining whether there are style differences, and
analysing any differences in middle management perceived traits. Based on works by
Bass (1985), this study seeks to address the relationship between the independent variables of leadership styles, i.e., contingent reward, management-by-exception (active), management-by-exception
(passive), laissez faire,
idealized
influence (attributed),
idealized influence (behaviour), inspirational motivation, intellectual stimulation and
individualized consideration, and the dependent outcome variables of effectiveness, extra effort and satisfaction. A moderator, comprising of demographic elements, has been used
to analyse the significance of demographic factors in relation to the perceived leadership styles and outcomes. A self administered questionnaire, based on the modified Multifactor
Leadership Questionnaire (MLQ), was used to gather data. Subsequent descriptive and multivariate statistical techniques of multiple regression and product-moment correlation resulted in determining that most of the leadership styles were statistically significant and
correlated positively with the outcome factors excluding Laissez Faire. The best regression model is represented by effectiveness as a function of individual consideration, idealized influence (attributed), inspirational motivation,
intellectual stimulation and
management-by-exception (active) with a coefficient of determination value of 0.669. Analysis of variance (ANOVA) was used for determining differences in perceptions of leadership styles and outcomes based on the demographic background of the TNB middle
managers. These comparisons of the means of groups provided little support for accepting that there was a difference in the perception of leadership styles and outcomes
based on their background. Major implications include the applicability of Leadership Styles' and Outcomes' Model, a questionnaire that was content validated by an expert
panel of academicians and practitioners and statistically reliable policy and practical
implications as well as professional development implications. Further research recommended to explore the areas that are not discussed in the present study.
iv
is
CONTENTS
PAGE
ACKNOWLEDGEMENTS DEDICATION
ABSTRACT
CONTENTS LIST OF FIGURES LIST OF TABLES
xi
LIST OF APPENDICES
xiii
LIST OF ABBREVIATIONS
xiv
CHAPTER 1 1.0
INTRODUCTION TO THE RESEARCH
1
1.1
BACKGROUND AND CONTEXT
2
1.2
SIGNIFICANCE OF THIS STUDY
3
1.3
TRANSFORMATION OF GOVERNMENT-LINKED COMPANIES
5
1.4
A BRIEF OVERVIEW OF TENAGA NASIONAL BERHAD
6
1.4.1
The Importance of Tenaga Nasional Berhad
8
1.5
THE IMPORTANCE OF MIDDLE MANAGEMENT
12
1.6
STATEMENT OF RESEARCH PROBLEM
14
1.7
RESEARCH OBJECTIVES
15
1.8
RESEARCH QUESTIONS
15
1.9
RESEARCH HYPOTHESES
16
1.10
OPERATIONAL DEFINITIONS
16
1.11
RESEARCH METHODOLOGY
18
1.12
ASSUMPTIONS
18
1.13
SCOPE, LIMITATIONS AND DELIMITATIONS
19
1.14
ORGANISATION OF THIS STUDY
20
CHAPTER 2 2.0
REVIEW OF LITERATURE
22
2.1
TYPOLOGIES OF LEADERSHIP
22
2.1.1
Trait Typology
23
2.1.2
Behaviour Typology
27
2.1.2.1 The 6-L Framework
29
2.1.3
Situational Leadership Typology
31
2.1.4
Values-based Transformational Leadership
33
2.1.4.1 Values-based Transformational Theory
35
2.4.1.2 Values and Leadership
36
_
2.1.4.3 Servant Leadership
38
2.1.4.4 Transactional and Transformational Leadership
40
2.2
TRANSFORMATIONAUTRANSACTIONAL THEORIES BY BASS ET AL. 43
2.2.1
Transactional Leadership
45
2.2.1.1 Contingent Reward
45
2.2.1.2 Management-By-Exception
46
2.2.2
47
Transformational Leadership
2.2.2.1 Idealized Influence
48
2.2.2.2 Inspirational Motivation
49
2.2.2.3 Intellectual Stimulation
50
2.2.2.4 Individualized Consideration
51
Passive Leadership
52
2.2.3
52
2.2.3.1 Laissez Faire 2.2.4
53
Leadership Outcomes
2.2.4.1 Effectiveness
54
2.2.4.2 Satisfaction
54
2.2.4.3 Extra Effort
55
2.2.5
Relationship between Leadership Styles and Outcomes
55
2.2.6
Directive-Transaction-Transformational-Empowering Leadership
57
2.3
THE MULTIFACTOR LEADERSHIP QUESTIONNAIRE
58
2.3.1
Criticisms of the MLQ Construct
59
vi
2.3.1.1 Criticism on the High Inter Correlation of Leadership Style Components
59
2.3.1.2 Response to Critique
59
2.3.1.3 Criticism on the Inability to Replicate the Full Range of Leadership Model 60 2.3.1.4 Response to Critique
60
2.3.1.5 Criticism on the Insufficient Items Measuring Actual Leader Behaviour
61
2.3.1.6 Response to Critique
61
2.3.2
Criticism of the Transformational Leadership Concept
62
2.3.2.1 Criticism on the Insufficient Attention to Group Processes
63
2.3.2.2 Response to Critique
63
2.3.2.3 Criticism on the Insufficient Attention to the Reciprocity in the Leader-Follower Dyadic Interaction
64
2.3.2.4 Response to critique
64
2.3.3
64
Research Design Flaws
2.3.3.1 Criticism on the Common Method Bias
65
2.3.3.2 Response to critique
65
2.3.3.3 Criticism on the Over Reliance on Subordinate Ratings
65
2.3.3.4 Response to Critique
66
2.3.4
Criticism on the Ethics of Transformational Leadership
66 67
2.3.4.1 Response to Critique 2.4
CONCEPTUAL MODEL
68
2.5
SUMMARY
71
CHAPTER 3 3.0
RESEARCH METHODS
72
3.1
APPROPRIATENESS OF METHOD
72
3.2
POPULATION AND SAMPLING
73
3.3
QUESTIONNAIRE DEVELOPMENT
74
3.4
VALIDITY AND RELIABILITY OF INSTRUMENT
75
3.4.1
Content Validity
76
3.4.2
Construct Validity
79
3.4.3
Pilot Study
80
3.5
DATA COLLECTION PROCESS
81
3.5.1
On-line Survey
82
VII
3.5.2
Mailed Survey
82
3.6
ANALYSIS OF DATA
83
3.7
RELIABILITY TESTS
84
3.8
FACTOR ANALYSIS
84
3.9
DESCRIPTIVE ANALYSIS
85
3.10
HYPOTHESIS TESTING
85
3.10.1
Single Mean T-Tests
86
3.10.2 Correlation Analysis
86
3.10.3 Multiple Regression Analysis
87
3.10.4 Analysis of Mean Differences
88
3.11
89
SUMMARY
CHAPTER 4 4.0
FINDINGS
91
4.1
EXPLORATORY FACTOR ANALYSIS
91
4.1.1
Exploratory Factor Analysis for Leadership Styles
92
4.1.1.1 Measure of Sampling Adequacy and Population Variance
92
4.1.1.2 Factor Loading
94
4.1.2
Exploratory Factor Analysis for Leadership Outcomes
101
4.1.2.1 Measure of Sampling Adequacy and Population Variance
101
4.1.2.2 Factor Loading
102
4.2
RELIABILITY TESTS
103
4.3
DESCRIPTIVE ANALYSIS
104
4.3.1
Descriptive Analysis of the Demographic Background of TNB Middle Managers
104
Analysis of Transformational Leadership Styles Using Mean and Standard Deviation
106
4.3.2
4.3.3
4.3.4
4.3.5
4.4
Analysis of Transactional Leadership Styles Using Mean and Standard Deviation
107
Analysis of Passive Leadership Styles Using Mean and Standard Deviation
108
Analysis of Leadership Outcomes Using Mean and Standard Deviation
108
NORMALITY TESTS
109
viii
4.5
SINGLE MEAN 1-TESTS ON LEADERSHIP STYLES AND OUTCOMES
110
4.6
INDEPENDENT SAMPLE T-TEST AND ANOVA
110
4.6.1
Function of Department
111
4.6.2
Highest Level of Education
112
4.6.3
Field of Specialisation
113
4.6.4
Unit Attached
114
4.7
CORRELATION ANALYSIS
116
4.8
REGRESSION ANALYSIS
117
4.9
ANALYSIS OF OPEN ENDED ITEMS
122
4.10
SUMMARY
122
CHAPTER 5
5.0
IMPLICATIONS AND RECOMMENDATIONS
125
5.1
SUMMARY OF FINDINGS
125
5.2
IMPLICATIONS
127
5.2.1
Model Development Implications
127
5.2.2
Development of Instrument
130
5.2.3
Policy and Practical Implications
130
5.2.4
Professional Development Implications
132
5.3
RECOMMENDATION FOR FUTURE RESEARCH
134
5.3.1
Comparative Studies on Leadership Styles and Outcomes
134
5.3.2
Typology of Middle Managers
134
5.3.3
Conducting In-depth Studies Using Qualitative Tools
135
REFERENCES
136
APPENDICES
191
ix
LIST OF FIGURES
NO.
TITLE
PAGE
Figure 1.1
Organisational Structure of Tenaga Nasional Berhad
11
Figure 2.1
Srisilpsophon's Transformational Leadership and Performance Outcomes Model
69
Figure 2.2
Preliminary Conceptual Model of Leadership Styles and Outcomes at TNB
70
Figure 5.1
Revised Leadership Styles' and Outcomes' Model
129
x
LIST OF TABLES
NO.
PAGE
TITLE
Table 1.0
Leadership Traits and Skills
27
Table 2.1
Behavioural Indicators of Transformational Leadership
62
Table 3.1
Sample Size for ±5%, ±7% and ±10% Precision Levels Where Confidence Level is 95%
74
Table 3.2:
Number of Items According to Variables
77
Table 3.3:
Summary of research questions, method and research hypothesis
90
Table 4.1:
KM0 and Bartlett's Test
92
Table 4.2:
Communalities
93
Table 4.3:
Extraction Method Using Principal Axis Factoring
95
Table 4.4:
Rotated Factor Matrix - Varimax with Kaiser Normalisation
97
Table 4.5:
KMO and Bartlett's Test
101
Table 4.6:
Communalities
102
Table 4.7:
Extraction Method Using Principal Axis Factoring
102
Table 4.8:
Rotated Factor Matrix - Varimax with Kaiser Normalisation
103
Table 4.9:
Results of Reliability Tests
104
Table 4.10:
Descriptive Analysis of the Demographic Background of TNB Middle Managers
105
Table 4.11:
Descriptive Analysis of Transformational Leadership Attributes
106
Table 4.12:
Descriptive Analysis of Transactional Leadership Attributes
107
Table 4.13:
Descriptive Analysis of Passive Leadership Attributes
108
Table 4.14:
Descriptive Analysis of Leadership Outcomes Attributes
108
Table 4.15:
Analysis of Leadership Styles and Outcomes Using Normality Tests
109
xi
Analysis of Leadership Styles and Outcomes Using Single Mean T-Tests
110
Table 4.17:
Independent Samples Test for Function of Department
111
Table 4.18:
Group Statistics for Function of Department
112
Table 4.19:
Independent Samples Test for Highest Level of Education
112
Table 4.20:
Group Statistics for Highest Level of Education
113
Table 4.21:
Independent Samples Test for Field of Specialisation
114
Table 4.22:
Group Statistics for Field of Specialisation
114
Table 4.23:
Independent Samples Test for Unit Attached
115
Table 4.24:
Group Statistics for Unit Attached
115
Table 4.25:
Correlations
116
Table 4.26:
Variables Entered/Removed
118
Table 4.27:
R2analysis
119
Table 4.28:
ANOVA
120
Table 4.29:
Coefficients
121
Table 4.16:
xii
LIST OF APPENDICES
NO.
TITLE
PAGE
APPENDIX 1
POPULATION OF TNB MIDDLE MANAGERS
191
APPENDIX 2
SUMMARY OF EMPIRICAL RESEARCH ON TRANSFORMATIONAL AND TRANSACTIONAL LEADERSHIP
195
APPENDIX 3
QUESTIONNAIRE EVALUATION SHEET
210
APPENDIX 4
QUESTIONNAIRE EVALUATION PRETEST RESULTS
212
APPENDIX 5
STATISTICAL ANALYSIS ON PILOT DATA
213
APPENDIX 6
QUESTIONNAIRE
218
APPENDIX 7
APPROVAL LETTER FROM TNB
226
APPENDIX 8
APPROVAL LETTER FROM TNB (ENGLISH TRANSLATION)
228
LIST OF ABBREVIATIONS ANOVA
Analysis Of Variance
CEB
Central Electricity Board
CR
Contingent Reward
E
Effectiveness
EE
Extra Effort
GDP
Gross Domestic Product
GLC
Government-Linked Company
Ho
Null Hypodissertation
IC
Individualized Consideration
II
Idealized Influence
ILDP
Individual Leadership Development Plan
IM
Inspirational Motivation
IPP
Independent Power Procedure
IS
Intellectual Stimulation
KPI
Key Performance Indicators
KS
Kolmogorov-Smirnov
LF
Laissez-Faire
MBEA
Management-By-Exception (Active)
MBEP
Management-By-Exception (Passive)
MLQ
Multifactor Leadership Questionnaire
PLC
Performance Linked Compensation
R2
Coefficient of Determination
S
Satisfaction
SMWT
Self-Managing Work Teams
SPSS
Statistical Process For Social Science
STM
Syarikat Telekom Malaysia
TNB
Tenaga Nasional Berhad
UPS
United Parcel Service
VIF
Variance Inflation Factor
xiv
CHAPTER 1
INTRODUCTION TO THE RESEARCH
In a review of recent researches on leadership, effective leadership theories were mainly explored from the perspective of leader's traits, skills, roles and behaviours (Ammeter et al., 2002; Avolio, 2005; Barbuto and Brown 2000; Colvin 1999; Dvir, Kass and Shamir 2004 and Frittz, 2005). Existing leadership traits and behaviours are examined from empirical studies and are presented as differentiated from management functions. Leadership principles are examined
from actual organisational work settings in order to discover what is actually adopted as opposed to the espoused theory (Covey, 1992; Darling, 1996 and Manz, Henry and Sims, 1989).
In the past, leadership studies tend to incline towards a singularity fad of leadership denominated by great man/woman theories, observation towards great leaders, trait theories, behavioural and situational theories. Today's business environment requires leadership to be
viewed differently. It should not be viewed as a single approach or solution to organisational effectiveness but as one process of reaching to that stage. As described by Tichy and Cohen
(1997), leadership is a managerial process that has been identified as one of the tools to achieve competitive advantages in organisations. Even though extensive studies have been carried out to identify the concept of leadership in various contexts and theoretical foundations (Bernard, 1926; Blake, Shepard and Mouton, 1964; Drath and Palus, 1994; Fiedler, 1967; and House and Mitchell, 1974), however, it is a fact that today's demand is not only in taking ideas to
market, but also in responding quickly to the changes, internally and externally, thus forcing the organisations to move faster (Stalk and Hout, 1990).
The researcher feels that contemporary leadership styles based on empirical leadership theories should be discussed from the perspective of task/relationship orientations, managerial roles and
leadership roles as well as transaction based and transformation based styles. Interestingly, there are limited leadership studies on middle managers - a group of employees that plays a
major role in supporting top management. As such, this study seeks to further validate the
© W.A.R. Wan Razak
1
criterion of leadership style adopted by the middle management of an organisation and how these styles affect the employees' performance and outcomes.
1.1
BACKGROUND AND CONTEXT
The researches in the past on organisational effectiveness highlighted the need to understand
the importance of leadership and the acquaintance with their work. Many researches have not clearly defined leadership and the nature of it, i.e. most literature present leadership as being "all
things to all people" (King, 1994), which is irrelevant to many circumstances. On the surface,
previous leadership studies, especially in the early of 20th century, though numerous, are confusing and disorganised (Argyris, 1957; Brayfield and Rothe, 1951; Drucker, 1966; Fiedler, 1967 and Herzberg, 1964; Hollander, 1978 and House, 1996).
The compulsion to have a regular and faster organisational development requires a different approach and set of talents for the leaders of today. These set of talents are positive traits of
people that can be assessed, trained and developed in contributing to the making of a great leader (Homer, 1997). However, traits alone are not adequate for making good leaders. It also depends upon their ability to successfully transform organisations to achieve the best they can for their stakeholders, employees, shareholders, customers and communities.
Massive changes taking place in the workforce require a re-evaluation on the nature of work and
the structure of most organisations. The concepts of leadership also need re-evaluation. Traits
that made leaders successful decades ago may or may not be effective in today's scenario especially when the business world is in a transformation process from an industrial-based economy into an information-based economy (Wilson et al., 1994). Therefore, relying on the talents and intellectual potential of employees in identifying effective leadership is increasingly important for organisational success (Wriston, 1990).
The changes in the business world have transformed the managerial command, which has
eventually expanded across cultures and theoretical beliefs into a more complex nature in tandem with the complexity of the external environment. A better understanding towards the
W.A.R. Wan Razak
2
underlying issues surrounding the emergence of leadership concepts and its transformation is
crucial in reaching at a conclusion of establishing effective leadership in an organisation, thus achieving competitive advantage in the long run.
This research attempts to bring forward the origin of leadership concepts and the reasons behind their formulation and propagation by using a case study. A basic understanding of the
idea behind each presented concept and its evolution will warrant stronger understanding in what leadership is all about and where it is heading in the context of the above scenario. The origins of leadership concepts are explored thoroughly. Relational factors, shifting and impacting the leadership concepts, are probed into and the emergence of concepts, the testing of theories
and the system being practiced are investigated. This research will also seek to identify the leadership typology deemed as relevant to the study. Paradigms of leadership are explored and
mapped into a conceptual framework, with an intention to bridge the existing knowledge gap accordingly.
1.2
SIGNIFICANCE OF THIS STUDY
The last decades have seen major changes and a paradigm shift in organisation theory, management theory and the intellectual constructions through which organisations and leaders as well as managers and individuals working in organisations are appropriately understood. The
value system of society has been changing rapidly and this definitely has had direct effects on
leadership. To this effect, Bullis et al. (1999) argued that leadership knowledge has not been
studied explicitly or systematically. Up until recently, the dominant model for leadership has
been one that stresses simplicity, order, determinism and linearity. Consequently, today's leaders, especially in the West, manifest a moderate tolerance of unequal power distribution in organisations (Certo, 1989).
However, this model has increasingly been coming under fire from various conflicting perspectives. Under the Eastern and African influences, the dominant model of the West is no longer ideal. Organisations are striving for a new model and this has resulted in a shift from the
most individualistic approaches to group approaches for problem solving, models which had
W.A.R. Wan Razak
3
worked in Japan (Drucker and Nakauchi, 1997). Additionally, strong gender values, including traits such as aggressiveness, independence and insensitivity to feelings, have been changing moderately to relationship building, interdependence and concern for others.
The earlier dominant model has proved that organisations seem to be moving away from valuing
economic incentives, organisational loyalty and work related identity. They seem to move towards valuing pursuit of leisure, personal identity and self-fulfilment. With the globalisation in
place, the modern leader must be able to recognise and be sensitive towards these value differences and trends among people at work in order to lead them effectively.
On 31 October 2003, when the fifth Prime Minister of Malaysia took office, he began to lay down administration's strategy for long-term growth and development to take Malaysia much
closer towards realising its goal of becoming a fully developed nation by 20201 without sacrificing traditional Malaysian values. A more holistic and balanced approach has been set to
push forward and enhance Malaysia's competitiveness both regionally and internationally. Various measures have been instituted such as the public service delivery system in earnest by reducing bureaucracy and cutting red tape, upgrading of education system including vocational training to develop sufficient human capital for the nation, intensifying
research and
development activities to become creators of technology, exploration of new resources for economic growth such as modernisation of agriculture and harvesting on the rich biodiversity through the use of bio-technology, developing value added services such as business process outsourcing
and
Islamic financial
and
services
transformation
of Government-Linked
Companies (GLCs), amongst others.2 In doing all this, the private sector would be taking the lead in being the engine of economic growth.
In May 2004, when the Government announced its plan to transform and improve the efficiency and effectiveness of the GLCs, four qualities of leaders were identified as critical in the selection
of the head of GLCs, i.e., integrity and honesty, reasonable intelligence with common sense,
1 Known as 'Wawasan 2020' or Vision 2020, the programme was initiated by the fourth Prime Minister, Tun Dr. Mahathir Mohamad. 2 Prime Minster's speech at the opening of 'The Invest Malaysia 2005 Conference' on 22 March 2005.
© W.A.R. Wan Razak
4
open mindedness and humbleness.3 With this criterion, the concern for leadership becomes the
main focus, thus making leadership study more critical within the context of the transformation of GLCs.
1.3
TRANSFORMATION OF GOVERNMENT-LINKED COMPANIES
In this context, Government Linked Companies are defined as companies in which there is a
major ownership and control either by a Government agency such as Khazanah Nasional, Ministry of Finance (Incorporated), Kumpulan Wang Amanah Pencen or by virtue of a financial or legal exposure such as Permodalan Nasional Berhad, Kumpulan Wang Simpanan Pekerja or Tabung Haji, where the Government guarantees the capita14. The fates of the country and the
GLCs are interdependent. The importance of GLC transformation programme goes beyond the
creation of shareholder value. The speedy GLC transformation would not only help
in
Malaysia's development but also enhance its competitiveness as a place to do business and improve the life quality of the citizens, given the pervasive presence of GLCs in core businesses
such as of electricity, telecommunications, water, postal services, transportation, banking and financial services. Furthermore, GLCs support national development objectives, particularly in terms of participation in key economic sectors and taking the lead in new growth area. Directly or indirectly, the GLC transformation will raise the standards of life and have a positive effect on the rest of the private sector.
In a fast changing environment of international competition and globalisation, the urgency of GLC transformation is underscored by the recognition that GLCs have significant scope to raise
performance levels. Here, the challenge of the government is to remove impediments to performance and provide an enabling environment for all GLC's to perform. It will then rest on the GLCs to take on the challenge of change. As a foundation, together with the announcement
to transform the GLCs in May 2004, the key performance indicators (KPIs) and performance linked compensation (PLC) initiatives were launched together with reforms in board composition
3 As described by the Second Finance Minister of Malaysia during an interview with The Edge dated 30 November 2004. Refer to www.theedgedaily.com 4 Based on the interview with the Managing Director of Khazanah Nasional, as reported in The EdgeDaily on 13 January 2005.
© W.A.R. Wan Razak
5
and senior management changes. In the case of TNB, as one of the main GLC, the new Chief
Executive Officer was appointed on 1 July 2004 to take up the challenge of transformation to make it perform more efficiently by being commercially focused and customer service oriented.
In a very hierarchical organisation as in TNB, being the largest national utility company in
Malaysia, middle management plays an important role in creating stability when trying to embrace changes with the organisation. TNB, being an entity privatised by the government of
Malaysia, had gone through various changes in the management and operational structure in
order to meet the organisational mission and vision whilst at the same time fulfils Malaysia's aspirations.
This leadership study at TNB is long over due as there are few leadership studies on Malaysian
GLCs. Furthermore, there is a pressing need to conduct an evaluation of its leadership styles
and outcomes, so that systematic plans for leadership development among TNB middle managers could be proposed accordingly.
1.4
A BRIEF OVERVIEW OF TENAGA NASIONAL BERHAD
TNB has been in existence for almost five decades. It began, in 1948, as a small electric
company owned by a tin miner to power his mining facilities. Later, it became the Central Electricity Board (CEB), a government department that supplied electricity to three major cities including Kuala Lumpur, the capital of Malaysia. In 1959, when the company widened its span to
the whole of peninsular Malaysia, it was renamed the National Electricity Board (NEB). Through Malaysia's
Incorporated concept advocated by the forth Prime Minister, Dr. Mahathir
Mohammad, several "profitable" government and/or public services departments were
privatised. In 1989, Syarikat Telekom Malaysia (STM) became the first department to be privatised. A year later, NEB was privatised and renamed Tenaga Nasional Berhad. As a government entity for almost five decades and having a long history and tradition prior to privatisation, TNB has tacitly inherited a strong culture of a "technical" but not "business" oriented organisation.
© W.A.R. Wan Razak
6
TNB, now, is the largest electricity utility company in Malaysia with assets worth more than RM63 billion and has approximately 26,989 employees of various job categories ranging from top management executives to manual labour workers.5 There are a total of 1,200 executives and one thousand engineers, of which, more than 90% are electrical engineers. The remaining
workers comprise primarily "non-technical" executives that include accountants, architects, system analysts, and other general administrators. Over time and through promotion exercises,
about 10% of these executives move up to occupy the management positions. Before privatisation, engineers mostly, if not all, filled these top positions. Thus, the government control over NEB for almost fifty years explains the bureaucratic structure and operation of the company
while the highly technically inclined administration mirrors TNB culture as a "technical organisation".
Whether the huge workforce associated with TNB is justified to fulfil the needs of its millions of
customers or not, however, their obligation to connect all customers who request electrical
service in a safe and efficient manner represents a higher responsibility than that normally required of other companies. For example, a large steel manufacturer may close operation and
move to China and leave the company town destitute, but that is not an option for TNB. Jokes
aside, as in the Spider-man6 comic, the classical saying 'with great power comes great responsibilities' is very relevant to the case of TNB.
The privatised TNB saw drastic change in its administration and management. Firstly, the Chief
Executive Officer nominated by the government of Malaysia (the primary shareholder of TNB
and all other privatised organisations) was a non-engineer, an entrepreneur with agricultural
background. Secondly, the public, especially customers and all the stakeholders, almost
immediately upon privatisation, expected TNB to become highly business and customeroriented. Thirdly, to facilitate faster shift in paradigm (which was the rationale and hope of many
members of the "interested party"), the Ministry of Energy, Telecommunication, and Poste introduced competition for TNB. Licences were issued to Independent Power Producers (IPPs)
5 Data obtained from TNB Annual Report 2004. 6 The last few words by Uncle Ben to Peter Parker (Spider-man) before his death. 7 As of 1 November, 1998, the Ministry of Energy, Telecommunication and Posts has been restructured and renamed as Ministry of Energy, Communication and Multimedia.
W.A.R. Wan Razak
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to build and operate their own plants and to compete with TNB in the business of electric power generation. For the past five decades, TNB had been basically holding a monopolistic position in
all three-core business areas: generation, transmission, and distribution/sale of electricity. Therefore, with the introduction of the IPPs in Malaysia's electric utility industry, TNB is left with
strategic advantages only in the latter two businesses. This move also retains TNB from being staying as an integrated company.
The above scenario relates well to the environmental trends such as introduction of new legislations, revised government's policies and introduction of new technologies that demand a
paradigm shift or a major change by TNB in order to achieve competitive advantage. But, in most situations change is not an easy thing to implement. Mark Twain used to say, "The only person who likes change is a baby with a wet diaper!" (cited in Hersey, Blancard, and Johnson
(1996) p. 459). The trends mentioned by Mohrman and Mohrman Jr. (1989), i.e., competition, greater expectations from stakeholders, technological development, and legislative change can be associated directly to TNB under the present situations. These authors further argued that no
organisation is immune from the need to change, especially when they are facing these environmental factors. The difficulty mainly lies in translating environmental change into true organisational change. This multi-step process involves: (1) registering the need(s) for change, (2) developing strategies for change, and (3) designing approaches that can aid in plan making. Unfortunately, as claimed by these authors, most organisations fail to even begin the first step of
the process. Perhaps TNB was more fortunate than others. Recognising this need and taking
advantage of some other environmental pressures, TNB had chosen to embark on using academic intervention as a strategy for the much-needed change. A number of executives and
non-executives were selected to undergo the academic programs organised at its training premise to upgrade their skills and competencies, especially in areas related to management and leadership.
1.4.1
The Importance of Tenaga Nasional Berhad
Over the last couple of decades, Malaysia has transformed tremendously and made significant
progress in terms of development and economic growth. The nation's readiness and ability to
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accept challenges has been fundamental to the overall development of the country, particularly
to the development of electricity supply sector. Since the economic downturn in 1998, the economic growth has improved and as a consequence, the energy demand has also risen. For the financial year 2004, overall electricity consumption has risen to 72,921.4 GWh8, an increase
of 7.6% as compared to the same corresponding period. Furthermore, TNB also recorded total
revenue of RM 17.71 billion as a result of stronger demand for electricity. With a market capitalisation of RM 34.95 billion8, TNB remains to be an important sector in Malaysia's economic growth, given its contribution of more than 5% of the total market capitalisation18 of
Bursa Malaysia (The Malaysian Stock Exchange) and approximately 16% of the total market capitalisation of more than 40 publicly listed GLCs11.
In contrast with TN B's tradition of having an in-house engineer as its President/Chief Executive Officer, the Government, in 2004, has appointed an 'outsider' with an accounting background, to
lead the transformation of the Company and bring it to greater heights, as part of the Government plan to transform the GLCs under the leadership of the Prime Minister, Y.A.B. Dato' Seri Abdullah Hj Ahmad Badawi.
TN B's core activities are the generation, transmission and distribution of electricity. To date, TNB remains a major player in electricity generation, which is a significant part of the Group's
diversified range of business activities. TNB has the largest generation capacity of 11,137.5 MW.12 Being in a monopoly position, TNB has a complete power system, including the National Grid,
Customer Services Centre, Call Management Centres and administration offices
throughout Peninsular Malaysia and Sabah. Being one of the largest Government Linked Company, TNB is entrusted to stimulate the domestic private investments and help strengthen
the country's economy. To perform this task, TNB has structured its organisation accordingly which comprised of various departments and divisions, as shown in Figure 1.1.
8 Data obtained from TNB Annual Report 2004 9 Market capitalization as at 30 June 2005 19 Total market capitalization of RM688.6 billion as at 30 June 2005 11 Estimated at RM220 billion or one third of the Bursa Malaysia market capitalization 12 Data obtained from TNB Annual Report 2004.
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This study of leadership styles and outcomes among the middle management in TNB is regarded as confirmatory in nature due to the abundance of similar research
in
the
aforementioned discipline. In addition, this study would prove to be a guideline for the corporations of similar sort, education industry, general public and other research entities.
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Figure 1.1: Organisational Structure of Tenaga Nasional Berhad
PRESIDENT I CHIEF EXECUTIVE OFFICER
Group Executive Council Group Management Committee Group Management Tender Committee Enerav Supply Committee
President / CEO's Office
Deputy President / CEO
SVP
SVP Operations
Development & Planning
VP Generation Division
VP Transmission Division
VP Distribution Division
CFO Finance Division
CIO ICT Division
VP Corporate Services Division
VP Investments Management Division
General Managers
Senior Managers / Managers
Assistant Manager! Senior Executives / Executives
LEGEND: CEO CFO CIO ICT SVP VP
Source:
Chief Executive Officer Chief Financial Officer Chief Information Officer Information & Communication Technology Senior Vice President Vice President
Extract from TNB Annual Report 2004 with some modifications
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VP Human Resources Division
1.5
THE IMPORTANCE OF MIDDLE MANAGEMENT
Based on the examination of the literature, it was also noted that most of the studies on leadership focused on the high level of management (Brubakk and Wilkinson, 1996). However, with the rapid changes in organisational development, the roles of middle managers are equally
important (Lowe et al., 1996). These points substantiate the study to be significant and relevant
to the existing academic literature and practice. A great deal of research on leadership has focused on leaders at the upper organisational levels alone. It was erroneously thought that the
middle managers have less significant role to play in contributing to organisational success. However, due to the new organisational paradigm including decentralisation of decision making
authority to lower level, the development of leaders across all hierarchical levels has become increasingly crucial in enhancing organisational success (Oshagbemi and Gill, 2004).
Oshagbemi and Gill's study was focussed on the leadership styles (directive, consultative, participative and delegative) and behaviours of managers at different levels in UK organisations.
It found that, generally, there are significant differences in the leadership styles between senior and first-level managers, but not between senior and middle-level managers nor between middle
and first-level managers. This finding suggests that the level(s) of management from and to which a particular leadership style is adopted is important in the significance or non-significance of the leadership style.
Within the context of this research, middle managers are regarded as key players in strategy implementation and organisational change. Middle managers are a diverse group, with some considering themselves primarily professionals rather than managers. According to Davis and
Fisher (2002), the concept of middle manager is a hazy one where there is no generally accepted definition of a middle manager. In the early 1990s, many authors, especially in management philosophies, questioned the function of middle managers (Nonaka and Takeuchi, 1995 and Womack et al., 1990).
Furthermore, the radical changes in 1980s attributed to widespread dissatisfaction among middle managers, which saw their status and power within organisations being reduced and job
security and promotional opportunities under threat. There were predictions of the demise of
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middle management due to increased use of information technology. Such predictions represented gloomy view of the future of middle management (Dopson and Stewart, 1994).
This situation has changed with increased research interest in middle management in the last
few years. This has led to the change of mindset and perception towards the role and importance of middle management in organisations. Middle managers now have been seen as a group having key role in organisation, as they have both the ability to combine strategic (context free)
and hands on (context specific) information (Nonaka,
1988).
Burgelman (1983)
emphasises the importance of autonomous behaviour initiated outside top management and
therefore, middle managers have a crucial role in formulating new strategies and trying to convince the top management of them. Further, Guth and Macmillan (1986) emphasised that the importance of middle managers has reached to the level where whenever they believe that
their self-interest is being compromised, they are not only in the position to redirect strategy, delay its implementation or reduce the quality of its implementation, but can also even totally sabotage the strategy.
Based on a study by Bolman and Deal (1990), it has been agreed that the role of middle management is changing in tandem with the changes in organisation. To a certain extent, this state of being in the middle of the organisational hierarchy causes dissatisfaction in the middle
manager due to the conflicts of expectations resulting from the strategies imposed by the top management and the creasing autonomy of the employees.
Piderit (2000) however argued that middle managers would continue to co-exist with new organisational forms such as group working, perhaps because hierarchy will still exist, especially
in large organisations. Given the dynamic organisational changes, middle managers, together
with the top management have an important role in knowledge management in their organisations (Nonaka and Takeuchi, 1995). However, middle management is often viewed as a
function of complicating the process of communication and interaction between the top management and the lower level employees. Some have even suggested that more empowerment should be given to the front line personnel so as to reduce the gap in communications. Hilmer and Donaldson (1996) however disagreed and argued that the complex
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tasks performed by the middle managers in large organisations cannot be replaced effectively
by computer based information systems or even by empowerment to the front line. This argument was supported by Floyd and Wooldridge (1990), where they claimed that the role of middle managers in relation to decision-making has increased tremendously.
Middle managers can provide a competitive advantage because of their skills, which are hard to
replicate (Wilcox King et al., 2001), particularly in the service-focused organisation (Blumentritt
and Hardie, 2000). Although there is evidence of shrinkage in terms of size in some organisations, no doubt, the role of middle managers is increasingly becoming more rewarding,
providing higher job satisfaction and accruing greater responsibility than it did before (Brubakk and Wilkinson, 1996). Such phenomenon is also observed in TNB.
The research on the importance of middle management's role as a key communicator to influence and motivate the process of implementing changes in the organisation is pertinent in
the fast changing global economy. The role of middle manager is not clearly understood (Harrington and Williams, 2004). Few organisations have remained completely hierarchical or
have adopted completely horizontal process-driven structures as in TNB. This increases the importance of middle managers. They often hold a function and a core process (Janczak, 2004).
1.6
STATEMENT OF RESEARCH PROBLEM
An extensive examination of the literature provides numerous studies on the topic of leadership. However, it is apparent that very little research has directly addressed the issues on leadership
styles and outcomes, particularly among middle managers. Although there were studies on the relationship between perceived leadership behaviors and job satisfaction of middle managers in
Tenaga National Berhad (TNB) Malaysia by Marimuthu (1998) and a study on the relationship
between the transactional and transformational leadership styles and job satisfaction and organizational commitment by Baharu (2005); it was found that no specific study particularly on
the relationship between leadership styles and outcomes has been conducted in Malaysian GLCs, generally and in TNB, specifically. TNB, being one of the biggest GLCs in Malaysia,
which supplies electricity to the mass, would make an interesting case study on leadership styles and outcomes.
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Therefore, this study will establish a model between leadership styles and outcomes among middle managers of TNB. Further to this, an assessment of how certain demographic variables
influence leadership styles and outcomes among TNB middle managers would also be carried
out. The results of this study will provide a greater understanding of leadership styles appropriate for improving leadership outcomes in TNB.
1.7
RESEARCH OBJECTIVES
This research has the following objectives:
To explore the leadership styles and outcomes among TNB middle managers; To develop a model for TNB middle managers' leadership styles and outcomes based on their demographic background;
To develop an instrument for measuring TNB managers' leadership styles and outcomes; and
To recommend policies which TNB might want to adopt to improve leadership styles and outcomes among their middle managers.
1.8
RESEARCH QUESTIONS
To address the aforementioned objectives and provide solutions to the research problem, four research questions were identified and formulated as follows:
What leadership styles and outcomes are apparent among TNB middle managers? How do TNB middle managers rate their leadership styles and outcomes?
What differences exist between the leadership styles and leadership outcomes based on the TNB middle managers' demographic background?
What models would best predict the leadership outcomes based on the leadership styles and the TNB middle managers' demographic background?
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RESEARCH HYPOTHESES
1.9
To address the aforementioned research problems, four research questions were identified and formulated as follows: Research Hypothesis 1: The leadership styles and outcomes are relatively high Research Hypothesis 2: The leadership styles and outcomes are related
Research Hypothesis 3: Leadership outcomes can be predicted by leadership styles and the demographic background of the middle managers
Research Hypothesis 4: There are differences in mean of leadership styles and outcomes based on the demographic background of the middle managers
1.10
OPERATIONAL DEFINITIONS
Past researches revealed that almost every author expressed a unique definition of leadership.
Many have tried to establish a definition of leadership that encompasses the intricacy of this universal term. Cuban (1988) refers to leadership as an influence process that motivates others
to achieving certain goals, i.e., leadership implies taking initiatives and risks. This definition
shows that the process of influence is purposeful in that it is intended to lead to specific outcomes. Fidler (1997, p.25) reinforces this notion by claiming that "followers are influenced towards goal achievement".
A central element in many definitions of leadership is that there is a process of influence.
Leithwood et al (1999, p.6) say that "influence.., seems to be a necessary part of most conceptions of leadership". Most definitions of leadership reflect the assumption that it involves a social influence process whereby intentional influence is exerted by one person [or group] over
other people [or groups] to structure the activities and relationships in a group or organisation.
Yukl's (2002) use of 'person' or 'group' serves to emphasise that leadership may be exercised by teams as well as individuals. This view is reinforced by Leithwood et al. (1999) who advocate
distributed leadership as an alternative to traditional top-down leadership models. Ogawa and
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Bossed (1995, pp.225-26) also state that leadership involves influence and agree that it may be exercised by anyone in an organisation.
Yet another traditional definition of leadership is: an interpersonal influence directed toward the
achievement of a goal or goals (Allen, 1998). This definition stresses the fact that a leader influences more than one person toward a goal.
Based on a review of the aforementioned definitions, leadership can be operationally defined as
a process of influence leading to the achievement of desired purposes based on long-term
shared vision and professional values. Successful leaders articulate this vision at every opportunity and influence their staff and other stakeholders to share the vision. The philosophy, structures and activities of the organisation are geared towards the achievement of this shared vision.
Other operational definitions used for this research are as follows:
Leadership styles: Leadership styles have traditionally comprised of transformational and transactional leadership (Bass, 1985). However, recent studies by Bass et al. (2003) and Lawrence (2000) identified passive leadership as another leadership style. Thus for the purpose
of this study, leadership styles comprise of transformational, transactional and passive leadership.
Transformational leadership: Transformational leadership is the "engagement of one or more persons with others in such a way that leaders and followers raise one another to higher levels of motivation and morality (Burns, 1978, p.20).
Transactional leadership: Burns (1978) noted transactional leadership occurs "when one person
takes the initiative in making contact with others for the purpose of an exchange valued things" (p.19).
Passive Leadership: Passive or Laissez Faire leadership are characterised by leaders who avoid specifying agreements, clarifying expectations and providing goals and standards to be achieved by followers (Bass et al., 2003).
Leadership outcomes: While outcomes can be categorised as the specific changes in attitudes,
behaviour, knowledge, skills, status and level of functioning ( W.K. Kellogg Foundation, 2000),
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the desired leadership outcomes are effectiveness, satisfaction and extra effort which are linked
to transformational and transactional leadership (Bass, 1985). Effectiveness was defined as the
leader's effectiveness in meeting the job related needs of followers, representing followers' needs to higher level management, and contributing to the effectiveness of the work unit and the
organisation (Hater and Bass, 1988). Extra efforts refer to the extent to which followers exert
beyond the ordinary or established level expected (Hater and Bass, 1988). Satisfaction is viewed as the subordinates' satisfaction with their leaders (Bass, 1985). The terms "leadership
outcomes" and "outcomes" are used interchangeably in this study to denote the results of leadership styles.
Leadership skills: Mintzberg (1973) identified eight sets of primary skills needed by a leader as follows: peer skills, leadership skills, conflict resolution skills, information processing skills, skills of in unstructured decision-making, resource allocation skills, entrepreneurial skills and skills
introspection.
Middle management: Staehle and Schirmer (1992) defined middle managers as employees who
have at least two hierarchical levels under them and all staff employees with responsibility for managing personnel (p. 19). The classification was supported by Ireland (1992) who described
middle managers as a group working in between the organisations' first level and top-level managers. A middle manager integrates the intentions of top-level managers with the day-to-day
operational realities experienced by first level managers (Ireland, 1992, p. 18). Based on these
classifications, it has been found that the General Managers in TNB (also recognised as M15
group) can appropriately be termed as middle management, given its autonomy within the organisation, and the fact that they have substantial personnel responsibility and that they have
two hierarchical levels below them, as shown in Figure 1.1. In this study, the terms middle management and middle managers were used interchangeably.
1.11
RESEARCH METHODOLOGY
This is a case study done at TNB, a major electricity provider in Malaysia. A survey questionnaire was used to solicit data from the sampling frame. Descriptive and inferential statistics
as well as relevant research hypotheses
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will
be developed to address the
aforementioned research questions. Further elaboration on the research methods will be presented in Chapter 3.
1.12
ASSUMPTIONS
The researcher's assumptions concerning the study must be valid in order to conduct a meaningful examination on the topic. "In research, assumptions are equivalent to axioms in geometry-self-evident truths, the sine qua non of research. The assumptions must be valid or else the research is meaningless" (Leedy and Ormrod, 2001, p. 7). The following assumptions were made concerning this study:
The survey questionnaire will capture the cross sectional data representing TNB's leadership style.
The participants would respond to the survey questionnaire's items with honesty and integrity.
The researcher assumes that those who participate in the survey questionnaire understand the basic concept of organisational leadership.
The information gathered from the survey questionnaire will be sufficient to create new leadership strategies for TNB.
1.13
SCOPE, LIMITATIONS AND DELIMITATIONS
The scope of this study was limited to TNB and its subsidiaries. This included the TNB Distribution Sdn. Bhd., TNB Generation Sdn. Bhd. and TNB Transmission Sdn. Bhd. In addition, the cturiv fnri icpd on only middle managers for the survey.
During the course of the research, some potential limitations of this study in terms of methodology and data collection were expected. The primary limitation was related to sample
selection. A sample of middle managers was selected for this study (refer Appendix 1). Furthermore, this research used TNB as a single case study. As such, generalising the results
of this study to the whole industry in not reasonable since the results may not represent the industry as a whole.
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The second limitation is related to the nature of the subject. The main objective of this study was
to establish a model between leadership styles and outcomes among middle managers which covers a very broad range of issues within TNB. However, the survey was sent to only selected
individuals within TNB and it may be unrealistic to expect him/her to know the right answers for all the questions asked in the survey. The respondents may not have enough knowledge, limited
time availability and the length of the survey might have prevented them from gathering all the needed inputs. In addition, many questions were being perceived as subjective and could have
been answered differently if asked of someone else within the same organisation. Another limitation relates to the data which are "snapshots" of organisational leadership styles and outcomes at the time of the survey completion. Considering how fast the industry is evolving, the
comparison between survey data then and reviewing the situation right now might not have produced very accurate comparison results.
Delimitation includes the interpretations of words in the Likert-type scale. Interpretation of "strongly agree" and "agree" may vary from one participant to the next. These differences could
lead to imprecise responses. However, validation and reliability tests are expected to offset against this potential delimitation.
1.14
ORGANISATION OF THIS STUDY
The introductory chapter of this thesis presents the background of the research. It also outlines
the objectives, statement of research problem, statement of purpose, research questions and qinnifinannp nf thp ctiiriv In arkiitinn it nrovirles imnnrtant definitinnq nf kpv tprrnc nf thp study Chapter 2 is devoted to a review of concepts of leadership styles and outcomes, the evolution of
various leadership typologies and why transactional and transformational leadership is relevant
to this research. A conceptual model that will be predominantly used in this research is presented towards the end of Chapter 2. Chapter 3 provides an overview of the methods for the
study and the research design as well as the sampling frame for the study. Chapter 4 provides the findings in the form of descriptive and inferential analysis to address the research questions
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of this study. Chapter 5 discusses the conclusions of the study with a discussion on the findings and contribution of the study as well as the direction for further research.
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CHAPTER 2
REVIEW OF LITERATURE
Proctor (2004), stated that some leaders are born and others are made. The born leaders innately have many of the necessary characteristics to be a leader and somewhere along the way developed the desire to be leaders. According to this, without the willingness to lead, ability counts for very little. Leaders that are made according to Proctor may have some skills but need to develop others through perseverance, practice and consistent application. For these types of
aspiring leaders it takes effort and time. Proctor (2004) feels that most of us have the ability to develop leadership skills; however fewer of us have the desire, therefore the key is willingness to acquire the necessary skills.
Over the years, leadership has been studied extensively in various context and theoretical foundations. In some cases, leadership has been described as a process, but most recent
theories and research on leadership look from an individual perspective to gain a better understanding (Homer, 1997). Leadership studies are typically focused on the traits, qualities, and behaviours of a leader. The study of leadership has also spanned across cultures, decades,
and theoretical beliefs. Due to the rich diversity of background material, the four dominant leadership typologies and the relevance of transactional and transformational leadership to this
research will be presented. Subsequently, a conceptual model for this research will be formulated accordingly.
2:1
TYPOLOGIES OF LEADERSHIP
Several themes and approaches emerged from leadership research. Of major relevance is the
dominance of four leadership typologies: trait theory, behaviour theory, situational theory, and values-based transformational theory. Although the typologies may vary, they usually attempt to
discuss leadership within a particular conceptual and theoretical framework (Northouse, 2001).
The vast literature on leadership has inevitably generated a plethora of alternative and competing models.
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Sanchez (1988) suggests that the examination of leadership theory using the first three typologies provides a useful framework for examining the evolution of leadership thought. He cites Lewin's (1951) model of behaviour as a reasonable foundation for examining these three
elements of leadership (Colvin, 1996). The model suggests that behaviour depends upon the
individual's involved and the circumstances of that person's environment or situation, i.e., behaviour is a function of person and situation. Colvin (1996) further describes the historical
typologies of leadership to include the leader as a person, the leader's behaviour, and the leadership demands of the situation. These three approaches mirror Fairholm's (1991) review of
leadership theory in terms of what the leader is, what the leader does, and in which situation a leader is effective.
Although three of the aforementioned typologies are still commonly used as a framework for understanding leadership, a new way of approaching the leadership theory goes beyond these assumptions. A fourth typology, values-based transformational leadership, begins to move the
discussion towards a more holistic approach to understanding leadership. It moves the discussion from the leader to the phenomenon of leadership (Fairholm, 1991 and O'Toole, 1996). This typology examines the relationships between leader and follower and the activity of
sharing, or coming to share, common purposes, values, ideals, goals, and meaning in our organisational and personal pursuits.
2.1.1
Trait Typology
Trait theory looks at the study of leadership as the study of great leaders, or at least, their traits and qualities. The first attempts to codify leadership and determine what "makes a good leader"
centred on the belief that leaders are born, not made (Stogdill, 1974). This gave rise to various forms of trait theory: the idea that leadership depends upon personal qualities, personality, and character.
More comprehensively, Jennings (1960) defined the "great man" theory of leadership, wherein
much of leadership study can be found in biographies of historical figures. These biographies may explicitly or implicitly describe a conception of leadership, but they all believe the belief that
to understand leadership,
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is necessary to understand leaders. Figures such as George
23
Washington (Clark 1995), Winston Churchill (Coote & Batchelor, 1949; Emmert, 1981; Gilbert,
1981; Hayward, 1997), and Martin Luther King, Jr. (Carson, 1987), are often dissected to discover secrets of leadership.
The search for the set of qualities that these great people and superior individuals possessed, led researchers to an exhaustive search for particular leadership traits. This search began first by identifying generalities. Strength of personality equating to leadership was a consistent theme
(Bingham, 1927; Bogardus, 1934; Bowden, 1926; Kilbourne, 1935). From these general discussions of the influence of personality, more specific studies tried to identify the set of qualities or traits that defined leadership across the board. Stogdill's (1974) review of leadership trait studies identified the following areas as important in successful leaders: chronological age; height; weight;
physique, energy, health; appearance; fluency of speech; intelligence;
scholarship; knowledge; judgment and decision; insight; originality; dominance; initiative, persistence, ambition; responsibility; integrity and conviction; self-confidence; mood control or
mood optimism; emotional control; social and economic status; social activity and mobility; biosocial activity; social skills; popularity and prestige; cooperation; patterns of leadership traits
that differ with situation; and the potential for transferability and persistence of leadership. Later
studies focused on physical characteristics, social background, intelligence and ability, personality, task-related characteristics, and social characteristics (Stogdill, 1974). The focus on the last two categories presages the beginnings of behavioural theory.
Broadening the great person theory, Scott (1973) discusses a theory of significant people. Significant people are the administrative elite who control the "mind techniques" of others because they do significant jobs and are superior to everyone else. Their justification is not for control, but rather to improve efficiency. Since people will benefit from the techniques, it can be considered morally correct. The result in improved efficiency will enable the elite to handle crisis
situations better than before. An equation representing this concept is written: AE+MT = SP (administrative elite + mind techniques = significant people).
Charismatic leadership is rooted in trait theory, though it is a topic of considerable debate. Conger and Kanungo (1988) call charisma the elusive factor in organisational effectiveness.
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Nadler and Tushman (1990) say charismatic leadership, involving enabling, energising, and envisioning, is critical during times of strategic organisational change. Valle (1999) suggests leadership in charisma, in conjunction with crisis and culture, helps define successful
contemporary public organisations. Sashkin (1982), however, views charisma as leadership
in
wolves' clothing. In other words, charisma is a replacement for leadership, not a trait that
leaders necessarily possess. Rutan and Rice (1981) also question whether charismatic leadership is an asset or a liability to organisations. The potential for good and evil is too significant to ignore as charismatic leaders influence others by appearing "more than" human.
The focus on trait theory diminished over the years. While the qualities and traits of leaders were
not ignored, researchers began to link traits with other requirements of leadership, such as behaviour and situation. Drucker (1966) uses trait theory as a springboard to understanding
leadership in terms of personal discovery and proceeds to describe essential practices of
effectiveness management. Here we see the synonymous usage of leadership and management overlaid by a discussion of traits and practices.
Bennis (1982) also finds roots in trait theory as he studies how organisations translate intention
into reality. His study focused on ninety CEOs of reputable companies. By surveying these "leaders" he reveals certain qualities of leadership. Sashkin (1989) continues the migration from
trait theory towards a more complex understanding of leadership. He states that to understand leadership, one must consider personal characteristics and behaviours and situations.
Schein's (1989) study of women and leadership concludes that the traits of leadership are virtually identical between men and women.
Though some disagree (see Rosener, 1990), the
discussion often revolves around the typical traits and characteristics displayed. Hackman and Johnson's (1991) view of leadership as a communication dynamic reveals the specific skills and traits of communication and articulateness are required for leaders to be successful.
Though trait theory may be waning as the dominant perspective in which to understand successful leaders, and hence leadership, recent research has seen some resurgence. Jaques
and Clement (1991) hearken back to the superior individual, significant people, and great man
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debates when they suggest certain people are innately better suited to leadership roles. The
most direct re-examination of trait theory and leadership comes from Kirkpatrick and Locke
(1991). Their work argues that though leadership study has moved beyond traits, towards behaviours, and on to situational approaches, a shift back to a modified trait theory involving the
personal qualities of leaders is occurring. They identified six traits leaders possess as distinct from non-leaders. However, they argue that the traits are simply necessary, but not sufficient, for
success. Possessing these qualities simply gives individuals an advantage over others in the
quest for leaders; it does not predestine them to leadership. More recently, the work by Goleman (1995) on emotional intelligence hearkens back to the trait theorists.
Furthermore, the problem with the trait approach lies in the fact that almost as many traits as studies undertaken were identified. After several years of such research, it became apparent that no consistent traits could be identified. Although some traits were found in a considerable number of studies, the results were generally inconclusive. Some leaders might have possessed certain traits but the absence of them did not necessarily mean that the person was not a leader.
Although there was little consistency in the results of the various trait studies, however, some
traits did appear more frequently than others, including: technical skill, friendliness, task motivation, application to task, group task supportiveness, social skill, emotional control, administrative skill, general charisma, and intelligence. Of these, the most widely explored has tended to be "charisma".
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Table 1.0 below lists the main leadership traits and skills identified by Stogdill in 1974.
Table 1.0:
Leadership Traits and Skills Skills
Traits
- Clever (intelligent) - Conceptually skilled - Creative - Diplomatic and tactful - Fluent in speaking - Knowledgeable about group task - Organised (administratively ability) - Persuasive - Socially skilled
- Adaptable to situations - Alert to social environment - Ambitious and achievement-orientated - Assertive - Cooperative - Decisive - Dependable - Dominant (desire to influence others) - Energetic (high activity level)
- Persistent - Self confident - Tolerant of stress - Willing to assume responsibility
Source:
Leadership Skills and Traits (Stogdill,
Trait theory is seemingly the most obvious avenue for researchers to embark upon. However, it
assumes that leadership is simply an aggregation of the qualities of good leaders. While trait
theory has its advantages, the quest for a single list of universal qualities
still eludes
researchers. History shows that instead of reworking the reductionist methodology of
understanding leadership, eventually theorists simply turned their attention to a different focus: the behaviour of leaders.
2.1.2
Behaviour Typology
Behaviour theory differs from trait theory in that leadership is described not as what leaders are
like, but rather as what leaders do - their behaviour and functions. Behaviour theory describes
leadership as being the sum of two important behaviours that great leaders seem to hold in common: getting things done and relating well with people.
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This was a potentially more "scientific" approach to leadership study, because behaviours could
be seen, observed, measured, and potentially mimicked (Stogdill & Coons, 1957). Along with
behaviour theory in general, were specific theories based on interaction and expectancy of roles, exchange activities between leader and follower, and the perceptions that followers have of leaders (Foiled, 1983; Graen & Uhl-Bien, 1995; Hollander, 1997; House, 1996; Nolan & Harty,
1984). These behaviour-based theories did provide a way for people to copy what other leaders have done, but the behaviours in the end do not prove to be generalisable.
Behaviour theory is where much of the confusion between leadership and management theory originates. The rise of this research focus coincided with the efforts to understand the rigors of management and executive authority in the industrial age. Therefore, "leadership theories" were
in reality management theories; the idea being that the best people at the top of an organisation are the leaders and by studying what they did, the mysteries of leadership will be unfolded.
Many of the organisational theorists focused on the top of the organisational hierarchy to understand management practices (Argyris, 1957; Barnard, 1938a; Barnard, 1938b; Follett, 1918/1998; Follett, 1926; Gouldner, 1954; Gulick, 1937; Homans, 1950; Maslow, 1943; Taylor,
1915; Whyte, 1956). In these efforts, those at the top were more often than not called leaders.
Therefore, what they did in their management or titular headship roles, the logic went was leadership. The roots of the confusion that persists to this day, between what is leadership and what is management, are easy to see.
The classic Ohio State and Michigan studies on leadership were the prime example of and the
watershed event for the development of behaviour theory in leadership research. Hemphill (1950) and others proceeded to discern from factor analysis research two main elements of leadership behaviour: consideration and initiation of structure. The Michigan studies verified these findings with data describing relationship building and task-focused orientations. From these studies emerged the Leadership Behaviour Description Questionnaire which assisted researchers in their goal of understanding leader behaviour (Hemphill & Coons, 1957).
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From these beginnings, Stogdill and Coons (1957) edited a series of research efforts describing
and measuring leader behaviour. Jay (1967) popularised managerial tactics by employing the advice and wisdom of Niccolo Machiavelli. Blake and Mouton (1964) developed a behaviourally-
based grid describing leadership behaviour and positing an ideal leader type based on the two factors of the Ohio State studies. Gardner's (1987) review of the tasks of leadership moves the discussion from management to leadership, but retains the focus on leader behaviour. In many
ways, writers on total quality management (Deming, 1986; Juran, 1989) add the behaviour approach to good managerial leadership.
Gardner's (1990) argument that most of leadership is learned reflects a behavioural approach, it
opened the door for many to write about organisational learning and leadership (Kouzes & Posner, 1990; Senge, 1990; Heifetz, 1994; Hughes, Ginnett, & Curphy, 1993). Much of what
could be learned centered on the power relationships that are inevitable in the leadership dynamic, even though that dynamic was not yet clearly defined (Fairholm, 1993). Much of the contemporary practices of leadership, and especially leadership development training, emerged
based on modem illustrations of behaviour theory (Drucker, 1990; Kotter, 1996; Vaill, 1996; Collins & Porras, 1997).
2.1.2.1 The 6-L Framework
A variant of the behavioural typology is the 6-L framework developed by Tirmizi (2002) which comprises of six behavioural dimensions of leadership. According to the model, effective leaders
sufficiently exhibit these behaviours. The dimensions and their explanation follow. In describing these dimensions, linkages are rrpatAri with existing leadership literature.
The first dimension, leads and encourages change and can be used to define a leader who seeks new opportunities for the organisation; challenges people to try new things; stimulates in
others new perspectives and ways of doing things; suggests new ways of looking at how to
complete assignments; searches outside the formal boundaries of his/her organisation for innovative ways to improve what is being done.
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The second dimension, lives by example is also known as role modelling. Leaders who are role by their models stand up for their beliefs. They practice what they preach. They show others between words and own example that they live by the values that they profess. It is consistency
actions that builds a leader's credibility (Kouzes and Posner, 1987). The third dimension that surfaced as important was lauds achievement. This dimension is about
recognition. Recognising involves giving praise and showing appreciation to others for effective (Yukl, performance, significant achievements, and important contributions to the organisation
1998). Extraordinary accomplishments seldom flourish in unappreciative settings. According to
Peters and Waterman (1982), the managers of the excellent companies they examined
exerted
successful completion of tasks. a good deal of effort to provide positive reinforcement for the Effective leaders make a conscious effort to reinforce any action that is useful for the organisation (Bass, 1990b).
The fourth dimension, lends a vision is a mental picture of what tomorrow will look like. is Leadership vision though important, is insufficient for an organisation to move forward. What
equally important is the ability to communicate that vision so that others see what the leader
sees. The leader acts as a channel of expression and shows the people how the vision can
directly benefit them, and how their specific needs can be satisfied. Vision is an important component in almost all the charismatic and transformational theories and models of leadership identified above.
organisation becomes The fifth dimension, leverages learning and development is to ensure the
dynamic and competitive. To combat such dynamic and turbulent times, organisations need learning and people who are oriented towards learning, and also leaders who leverage development. Leaders can do a number of things to create conditions favourable to learning and development (Yukl, 1998).
The final dimension, looks out for others, describes the extent to which leaders exhibit concern for the welfare of the other members of the group. It can be seen as a pro-social behaviour such
as helping, sharing, cooperating and volunteering. Leaders manifest
it
by practicing
a
personal considerate style, sacrificing their own interests, and spending time and energy for the
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welfare of work unit members. They try to create an environment of emotional support, warmth
and friendliness. Moreover, the leaders are approachable and do things to make working environment more pleasant.
2.1.3
Situational Leadership Typology
Situational theory suggests that behaviour theory is not adequate for the complicated world of
organisations and society, because specific behaviours are most useful only during specific kinds of situations.
Though there is a specific theory of leadership labelled contingency theory
(Fiedler, 1967), or situational leadership theory that tries to define leadership through what leaders do in specific situations that differ because of internal and external forces. In this sense,
leadership is not something definable without the specific context of the situation in which leaders seem to emerge.
Studies began to focus on the environments in which leadership takes place. The thinking was
that situations determine what leaders do, and that behaviours must be linked to the specific environment at hand. Situational theory, contingency theory, and the more humanistic models of
leadership emerged. It was during this emphasis of leadership study that the desire to differentiate between managers and leaders emerged. Not all theorists thought it necessary to make the distinction. Nonetheless, the unique elements and foci of leadership and management made it necessary to begin to look at the two as different and develop theories accordingly.
Researchers began to look at a wide range of variables that could influence leadership style, and at different situations that would call for various leadership behaviours or call forth those individuals that have various leadership traits. Homans (1950) developed a theory of leadership using three basic variables: action, interaction, and sentiments. Hemphill (1954) studied leader-
ship in terms of the situations in which group ties and tasks are dependent upon the varying interactions between structure and the office of the positional authority. Evans (1970) suggests
that the consideration (or relationship) aspects of leadership depend upon the availability of
rewards and the paths through which those rewards are obtained. Fielder's (1967) classic contingency theory model suggests that leadership effectiveness depends upon demands
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imposed by the situation in that task-oriented leaders are more effective in very easy and very difficult situations and relationship-focused leaders do better in situations that impose moderate
demands on the leader. Many researchers have used Fiedler's approach and his Least Preferred Coworkers (LPC) methodology to verify his hypotheses (see Cheng, 1982; Offermann, 1984; Rice & Kastenbaum, 1983; Shouksmith, 1983).
Hollander (1978) suggested practical guidelines for leadership interactions in different group
circumstances. Hersey and Blanchard (1979) built upon the behavioural work of Blake and Mouton, and suggested that the best leadership style depends upon the situation and the development of the leader and the follower, concluding that empirical studies suggest there is no
normatively best style of leadership and that effectiveness depends upon the leader, the follower, and other situational elements. Nicholls (1985) reviewed Hersey and Blanchard's model and suggested there were fundamental flaws in the model and provided ways to improve it. He argued that their model violates three logical principles - consistency, continuity, and conformity.
Nicholls' model performs all the functions of the original model in relating leadership style to the
situation, while avoiding the problems inherent in the original's fundamental flaws. The model posits a smooth progression of the leader from parent to the leader as developer, and balances the-task and relationship orientations in the leader's style.
Hunt, Osborn and Marion (1981) describe the testing of a model of leadership effectiveness that
centres on nine macro variables and the idea of leadership discretion. Their macro variables
were represented by the complexity of the environment, context, and structure of a unit.
Vecchio and Gobdel (1984) studied the vertical dyad linkage (VDL) model of leadership, suggesting that the type and distribution of leader and follower interaction determines leader ef-
fectiveness. They determined that in-group status was associated with higher performance
ratings, reduced propensity to quit, and greater satisfaction with supervision. Objective prediction of a measures of actual job performance yielded results that were congruent with the
positive correlation with subordinate in-group status. thought by studying leadership in terms of triads.
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Triandis (1993) contributed to this line of
Stimpson and Reuel (1984) studied the variable of gender in determining the kind of styles managers adopt. Results showed that managers tended to model the style of their boss and that
females evidenced this tendency to a greater degree than males. Furthermore, when the boss was a female, male subordinate managers became somewhat more participative than the boss, while female subordinate managers became more authoritarian.
Vroom and Yetton (1973) developed a contingency model of decision-making to determine effective leadership behaviours in different situations. Heilman, et al. (1984) were some of the
many researchers who examined the validity of Vroom and Yetton's contingency model. They
determined that the perspective of the individual viewing a leader influences the way in which he/she evaluates that leader's task effectiveness. Data from this study indicate a consistently more favourable affective response to the participative than to the autocratic leader, regardless of the subject's perspective or the circumstances.
Contingency theory, especially in combination with trait and behaviour theory, offered new avenues of research into what makes leaders effective. Contingency theory seemed to ignore the emotive and inspirational attachment that leaders tend to evoke no matter what the situation.
Yet, in so doing it gave rise to researchers who focused on those very issues. At times it was
difficult to separate distinctly the theories from each other as they morphed from one to the
other. The new avenues of research included follower dynamics, relationships, intrinsic and extrinsic motivation, organisational culture, organisational change, and power in an effort to understand what variables influenced the effectiveness of leaders. However, contingency theory
disappointed some thinkers because it defined leadership down to "it all depends." To answer this lack of confidence in what makes an effective leader, leadership began to be thought of in
terms separate and distinct from leaders and more as a theory of social interaction or organisational philosophy.
2.1.4
Values-based Transformational Leadership
As discussed earlier, researchers have attempted to answer the questions of where leaders have gone as they describe what it really means to be a leader. But still the focus of many is on
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the leader, as if to say leadership can only be understood by studying specific individuals in specific situations. Stogdill (1974) suggests that although the endless accumulation of
bewildering findings has not produced an integrated understanding of leadership, the overarching approach to understand leadership must be based on valid experimental findings.
This is an emphatic reiteration of the idea that the best way to understand leadership is to
understand the leader's being, doing, and accommodating the who, what, and when of leadership.
There are some, though, who go beyond the mere study of leaders. Recognising that studying
individual leaders may not facilitate a better understanding of leadership, these researchers reject, implicitly or explicitly, the idea that leadership per se is a summation of the qualities, behaviours, or situational responses of individuals in a position of authority. To study leaders is not, in this sense, to study leadership.
Spitzberg (1987) supports this idea. He presents questions that are intended to understand leadership, not developing or training leaders. According to Sptizberg (1987) "those who wish to
develop leaders must understand much more than the current state of knowledge about leadership if they are to do more than engage in documentation of trivia. Leadership development is an important personal and social goal. But it is a goal dependent upon better understanding the
nature of leadership" (p. 33). There is an implicit acceptance that leadership is something more
expansive than the title "leader" and that an integrated understanding of leadership requires a broader more holistic approach. That is, one must try to understand the "nature of leadership."
Here a clear distinction must be made. The terms "leader" and "leadership" are not the same,
nor are they interchangeable. The confusion and imprecise use of each term in describing certain phenomena may be at the core of the confusion (and dissension) among those who
study the topic. Indeed, this confusion exists even in this literature review. As the views of different authors are presented it becomes clear that leader and leadership are often used interchangeably.
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While studying the qualities, behaviours and situational responses of those who claim to be, or
are given the title of leader is a useful perspective - it is also limiting. This type of researcher more often than others confuse leadership and management. They view leadership study from a
reductionist perspective with the case studies of leaders aggregating to the essence of leadership: leaders, therefore, define leadership. A different approach to leadership research, however, views leadership as something beyond the sum of individual leader styles, behaviours,
and qualities. Leadership from this approach encompasses a unique conception of individual interaction. In this sense, leaders do not define leadership; rather, leadership defines what a leader is, what a leader does, and how a person can be one.
Unfortunately, not every researcher and author on leaders and leadership make distinct the definitions of the terms "leader" and "leadership." In fact, they may not recognise the need for
distinctions and clarifications. However, the literature does reflect these two different approaches and it behoves researchers to acknowledge them. One perspective is very much an
aggregation or mechanistic system. The other is much more a philosophy. This philosophical perspective frees one of the notions that leadership is positional, hierarchical, or managerial and
allows for leadership to be more pervasive in organisations and life because leadership is not
tied to structure, qualities, or birth. This approach allows leaders to develop, because it is developmental in nature. It moves us from mundane cookie-cutter approaches to power relationships and allows us to accept creativity, flexibility, and inherent, emerging order. The ap-
proach is inspirational, rather than merely motivational. The quest from this more holistic approach is to study what leadership actually is. The attempt, it is assumed, will yield different
and more precise definitions of "leadership" than we have had in the past, and will, as a consequence, change our definitions of "leader" based on the elements of these more precise definitions.
2.1.4.1 Values-based Transformational Theory
When researchers focus on a broader, more philosophical conception of leadership, they focus less, or not at all, on the traditional observable phenomena of specific individual characteristics,
behaviours, and situations. Rather they focus more on the broader, less definable aspects of a
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certain kind of relationship between people. The elements of this relationship deal more with
values, morals, culture, inspiration, motivation, needs, wants, aspirations, hopes, desires, influence, power, and the like. The emphasis is not on studying specific leaders in specific situations, doing specific things. Rather, the focus is on the common relationship elements exhibited over time that characterise this thing called "leadership."
Throughout the development of management and leadership theory, it has only been 'recently that researchers began to think about leadership in ways that transcend the trait, behavioural, or
contingency theories that have dominated debate (Burns, 1978; Covey, 1992; Cronin, 1984; Fairholm, 1991; Greenleaf, 1977; Rost, 1991; Spitzberg, 1987; Wheatley, 1992/1999). Values-
based transformational theories are a recent (late 1980s and early 1990) example of a shift in
methodologies. This shift began to distinguish leadership and management and change our focus from the leader to the phenomenon of leadership.
Some authors recognised that there are ways to look at leadership_thattransce.nd and/or encompass the theories of the past and allow us to look at leadership in more "completel_ways, This is not necessarily new. Barnard (1938b) and Follett (1918-1998) were two of the few writers
who, early on, seemed to transcend a reductionist discussion of managerial leadership and
move towards a more contemporary philosophical approach to interpersonal relationships. Burns tried to do this in his 1978 book entitled Leadership, but it has only been recently that a
more holistic view of leadership has emerged. A look at a few values-based transformational theories follows.
2.4.1.2 Values and Leadership
Many leadership theorists believed there was something unique about leadership that transcended the situation and remained constant despite the contingencies. Values-based transformational theory defines this something as the leader tapping into long-held beliefs and personal or organisational values that inspire others to move in certain directions and develop in
certain ways (see Avolio & Bass, 1994; Bennis & Nanus, 1985; Bennis, 1984b; Burns, 1978;
Covey, 1992; Cuoto, 1993; DePree, 1989; Fairholm, 1991; Greenleaf, 1977; Manz & Sims,
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philosophy al1989; OToole, 1996; Quinn & McGrath, 1985; Rost, 1991). This values leadership
because it lows a leader to overcome the pathologies of today's organisations (and societies) flourish recognises the need to develop the individual, letting him or her express their values and independently, while maintaining a functioning organisation that fulfils its goals in an excellent manner.
actions of leaders who a more practical sense, values leadership encompasses the internalise and legitimise the values of the group and teach these values to followers who In
teachers internalise and express them in their individual behaviours. Leaders in this sense are
that enervate a first and foremost (Tichy, 1997), with a unique capacity to understand the values
principles also rest the group and individuals, and communicate them effectively. Upon these communitarian notion of the good society. That is, one that "must rely largely on its members' values in realisation that the ways they are expected to conduct themselves are in line with the
driven by economic which they believe, rather than because they fear public authorities or are
incentives" (Etzioni, 1996, p.86). In this way, leaders create a culture of trust that allows enhancing their individuals to act in ways supportive of the group values and _goals while 1994; Kouzes & autonomy because of self led activity (see Fairhols & Fairholm, 2000; Fairholm,
Posner, 1993; Mitchell, 1993).
meld individual Fairholm (1991) suggests that values leadership is the philosophy that seeks o few actions into a unified system focused on group desired outcomes and is only possible if a Second, criteria are met. First, the members of the organisation must share common values. rview of all members of the group and not just the leadership has to be thoi_291ltof a
of leadership. And "heads". Third, individual development and fulfilling group goals are the focus the bridge fourth, shared, intrinsic values must be the basis for all leader action. Values become
that links the individual (and groups of individuals) with the tasks that are required or
expected of
the group.
This values vies of leadership is much different than previous studies in leadership, going beyond the leader and focusing on the phenomenon itself in terms of values displacement, culture, and teaching. Instead of studying the leader, values-based transformational leadership
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theory engages the entire process of leadership taking into account such things as traits, behaviour and situations but not being dependent on them. It is transcending point of view that intends a holistic understanding of leadership.
2.1.4.3 Servant Leadership
The models discussed so far have dwelt on the leader as some frontal figure who stands out from the rest as being somehow different and "leading" the rest of the people. The discussion
now moves to recognition of the importance of the leaders' relationship with his/her followers and an interdependency of roles. The notion of "Servant Leadership" emphasises the leaders'
duty to serve his/her followers -leadership thus arises out of a desire to serve rather than a desire to lead. The leader is no longer the hero or solo leader but the team leader. The leader is
not always out in front but the leader who has the capacity to follow. The leader is not the master, but the servant. According to Greenleaf (1970) the leader-first and the servant-first are two extreme types and between them there are shadings and blends that are part of the infinite variety of human nature.
The difference manifest itself in the care taken by the servant-first attitude to make sure that other people's highest priority needs are being served thus encouraging collaboration, trust, foresight, listening, and the ethical use of power and empowerment. The emphasis on serving a higher purpose has made this model popular within the Church and other religious institutions.
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Katzenbach and Smith (1994) identified the critical behaviours of servant-leaders as follows:
Asking questions instead of giving answers
By asking such questions such as "What do you think we should do?" or "How do you suggest we proceed?" you take a step behind another person. Whether you stay behind, of course, depends on your intention to actually
follow the suggestion or answer of that other person
Providing opportunities for others to lead you
Doing real work in support of others instead of only the reverse
Becoming a matchmaker instead of a "central switch"
This goes beyond the traditional notion of looking for growth opportunities for other people. Unless the opportunity in question bears a real risk for your personal performance outcome, you are not actually positioning yourself as a follower
Rolling up your sleeves and contributing "sweat equity" to the efforts and outcomes of other people earns you their appreciation as someone upon whom they can depend, regardless of the relative hierarchical or functional position each of you holds
In addition to following other people yourself, you must learn to help them follow each other. This requires you to get beyond considering yourself the "central switch" through which all decisions flow. Instead, you need to look for every possible chance to help people find their best collaborators. "Have you asked Sally or Rasheed what they think?" is often the only input required to facilitate the effort at hand, although you then must submit your
effort and support to whatever the people in question suggest
Seeking common understanding instead of consensus
The pejorative meaning associated with consensus management has nothing to do with either effective leading or effective following. Leaders who know when and how to follow build deep common understanding, not superficial consensus, around the purpose, goals, and approach at hand. They submit themselves and others to the discipline of ensuring that all sides to any disagreement are fully understood by everyone, recognising that mutual understanding is far more powerful than any particular decision to choose path A over path B. All people will follow strong, commonly understood purposes and goals more easily than the "put-up jobs" associated with consensus. .
_
..
.__ ..
Source: Key Behaviours of Leaders (Katzenbach and Smith,
To improve individual performance, Katzenbach and Smith (1994) believed that a leader must follow another individual, regardless of hierarchy, if any of the following three conditions were to
occur: (a) that individual, through experience, skill, and judgement, knows best; (b) that
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individual's growth demands that you invest more in his or her skill and self-confidence than in and opportunity) to "get it your own; (c) only that individual, not you, has the capacity (the time done".
leader In' addition, Katzenbach and Smith (1994) believed that to improve team performance, a conditions must follow another individual, regardless of hierarchy, if any of the following three not you, were to occur: (a) the team's purpose and performance goals demand it; (b) the team,
approach requires must develop skills and self-confidence; (c) the team's agreed-upon working
you, like all the others, to do real work.
Finally, To improve individual performance, Katzenbach and Smith (1994) believed that a leader conditions must follow another individual, regardless of hierarchy, if any of the following three need for were to occur: (a) the organisation's purpose and performance goals demand it; (b) the
the vision expanding the leadership capacity of others in organisation requires it; (c) "living" and values enjoins you to do so.
2.1.4.4 Transactional and Transformational Leadership
the first to put James MacGregor Burns (1978) writing in his seminal book Leadership was leadership is a forward the concept of "transforming leadership". To Bums, transforming relationship of mutual stimulation and elevation that converts followers into leaders and may convert leaders into moral agents. Burns (1978) considered leaders to be either transformational
transactional leadership at or transactional, while others view leadership as a continuum with one end and transformational leadership at the other.
'transforming Burns (1978) draws upon the humanistic psychology movement in his writing upon
leadership' by proposing that the transforming leader shapes, alters, and elevates the motives, proposed that values and goals of followers achieving significant change in the process. He principles there is a special power entailed in transforming leadership with leaders armed with adhere to that may ultimately transform both leaders and followers into persons who jointly
modal values and end-values.
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Burns (1978) sees the power of transforming leadership as more noble and different from
charismatic leadership, which he terms 'heroic' leadership, and executive or business leadership. Despite this it is surprising that most of the application of Bums' work has been in these two types of leadership.
Bernard Bass (1985) developed Burns' concept of transforming leadership into 'transformational leadership' where the leader transforms followers - the direction of influence to Bass is thus one-
way, unlike Burns' who sees it as potentially a two-way process. Bass, however, deals with the transformational style of executive leadership that incorporates social change, a facet missing from Burns' work. For Bass 'transformational leaders' may: expand a follower's portfolio of needs
transform a follower's self-interest increase the confidence of followers
elevate followers' expectations heighten the value of the leader's intended outcomes for the follower
encourage behavioural change motivate others to higher levels of personal achievement (Maslow's 'self-actualisation').
Bass and Avolio (1990) built not only upon the contribution of Burns but also those made by Bennis and Nanus (1985b), Tichy and Devanna (1986), and others. Tichy and Devanna (1990) in in their book Transformational Leadership built further on the work of Burns and Bass
organisational and work contexts. They described the hybrid nature of transformational as a behavioural process capable of being learned.
Bass and Avolio (1990) further specified that transformational leadership: "occurs when leaders
broaden and elevate the interests of their employees, when they generate awareness and acceptance of the purposes and mission of the group, and when they stir their employees to look beyond their own self-interest for the good of the group" (p. 21). Bass (1990b) stipulates that this transcending beyond self-interest is for the "group, organisation, or society" (p. 53). In
essence, transformational leadership is a process of building commitment to organisational
objectives and then empowering followers to accomplish those objectives (Yukl, 1998). The
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result, at least in theory, is that transformational leadership is closer to the prototype of leadership that people have in mind when they describe their ideal leader, and it is more likely to provide a role model with which subordinates want to identify.
Transactional leadership has been the traditional model of leadership with its roots from an organisational or business perspective in the 'bottom line'. Covey (1992) writing in PrincipleCentred Leadership suggests that transformational leadership focuses on the 'top line' and offers contrast between the two (a selection being):
Transformational Leadership,
Transactional Leadership
<
Builds on man's need to get a job done and make
Builds on a man's need for meaning Is preoccupied with purposes and values, morals,
a living Is preoccupied with power and
position,
and ethics Transcends daily affairs Is orientated toward long-term goals without compromising human values and principles
politics and perks Is mired in daily affairs Is short-term and hard data orientated Focuses on tactical issues Relies on human relations to lubricate human
Focuses more on missions and strategies Releases human potential - identifying and developing new talent Designs and redesigns jobs to make them meaningful and challenging Aligns internal structures and systems to reinforce overarching values and goals
interactions
Follows and fulfils role expectations by striving to work effectively within current systems Supports structures and systems that reinforce the bottom line, maximise efficiency, and guarantee short-term profits
..
Source: Comparison of Transactional and Transtormationale
Both
kinds of leadership are necessary.
. ,
Transactional leadership has remained the
organisational model for many people and organisations that have not moved into or encouraged the transformational role needed to meet the challenges of our changing times.
in a As such, the goal of transformational leadership is to 'transform' people and organisations
literal sense - to change them in mind and heart; enlarge vision, insight, and understanding; bring about clarify purposes; make behaviour congruent with beliefs, principles, or values; and changes that are permanent, self-perpetuating, and momentum building.
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Ultimately, transformational leaders can develop a very powerful influence over followers. For example, several research studies have documented the power of transformational leadership in
establishing value congruency and trust (Jung and Avolio, 2000; Kirkpatrick and Locke, 1996; Podsakoff et al., 1996; Shamir, 1995). Followers respect and trust transformational leaders, so
they conform their values to those of the leaders and yield power to them. In summary, the transformational leader articulates the vision in a clear and appealing manner, explains how to
attain the vision, acts confidently and optimistically, expresses confidence in the followers,
emphasises values with symbolic actions, leads by example, and empowers followers to achieve the vision (Yukl, 2002).
With transformational leadership, the leader's focus is directed toward the organisation, and his
or her behaviour builds follower commitment toward the organisational objectives through empowering followers to accomplish those objectives (Yukl, 1998). While transactional leaders focus on exchange relations with followers, transformational leaders inspire followers to higher
levels of performance for the sake of the organisation (Burns, 1998; Yukl, 1998). The very definition of transformational leadership states the building of commitment to the organisational objectives (Yukl, 1998). The primary focus is on the organisation, with follower development and
empowerment secondary to accomplishing the organisational
objectives.
The result,
nonetheless, is enhanced follower performance (Burns, 1998; Yukl, 1998).
2.2
TRANSFORMATIONAL/TRANSACTIONAL THEORIES BY BASS ET AL.
According to Colvin (1999), Bass's transformational theory added to the theory of transactional
leadership. Research conducted by Seltzer and Bass (1990) indicated that transformational leadership focused on reordering the needs of followers, not just meeting existing needs. The reordering is directed towards higher order needs (Bass, 1985a). Transformational leadership is
characterised by inspiring vision, understanding, empowerment, and development of followers
(Avolio and Bass, 1987). This further suggested the need for leaders to know their followers. Motivation is powerful if leaders understand what inspires followers. Thus, having a vision for the
organisation is not enough. Transformational leaders must find ways to articulate the vision so that all within the organisation understand their unique contributions to achieving the goals.
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Transformational leadership differs substantially from transactional leadership. It is concerned more about progress and development. Furthermore, transformational leadership enhances the effects of transactional leadership on followers (Bass, 1985b, 1990a). Transformational leaders transform the personal values of followers to support the vision and goals of the organisation by
fostering an environment where relationships can be formed and by establishing a climate of trust in which visions can be shared (Bass, 1985a).
Transformational leadership theorists (Bass, 1985a; Bass and Avolio, 1994a; Bums, 1978) have
argued that transformational leadership is more proactive and ultimately more effective than transactional in terms of motivating followers to achieve higher performance (Bass and Avolio, 1994a; Burns, 1978). This pattern of results has been supported in a number of studies over the
last decade (Dumdum, Lowe and Avolio, 2002; Lowe, Kroeck and Sivasubramaniam, 1996). It
has been argued that transformational leaders are more capable of sensing their environment
and then forming and disseminating strategic goals that capture the attention and interest of their followers. Simultaneously, followers of transformational leaders have been shown to exhibit
higher levels of commitments to their organisational mission, a willingness to work harder, greater levels of trust in their leader and higher level of cohesion (Avolio, 1999). All of these
effects of transformational leadership would be expected to create better conditions for understanding and disseminating strategic visions, missions, goals and their acceptance by followers.
With reference to Appendix 2, a study of 30 researches on transactional and transformational leadership were found to use various versions of Bass' (1985) original Multifactor Leadership Questionnaire (MLn) to the Intest version known AS MLO Form 5x-Short (3rd Edition) developed by Bass and Avolio (2004). Though there are many criticisms on the MLQ, it is still deemed as a
tool that can best solicit the leadership styles and outcomes of middle managers (refer section 2.3).
Bass reported that principal component analysis of the original 73-item MLQ with a sample of
military officers identified five factors. Three of the factors were identified as transformational: charismatic, individualised consideration, and intellectual stimulation. Two factors were identified
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as transactional leadership: contingent reward and management-by-exception. Bass and Avolio (1989)
further divided
the
transformational
dimension
of charisma
into
two distinct
characteristics: idealised influence and inspirational motivation. However, a recent study by
Bass et al. (2003) identified three distinct types of leadership styles: transformational, transactional and passive leadership. Also identified were three distinct types of leadership outcomes: extra effort, effect effectiveness and satisfaction.
Bass (1990b) said that transactional leadership occurs when leaders "exchange promises of
rewards and benefits to subordinates for the subordinates' fulfilment of agreements with the leader" (p. 53). The transactional leader, according to Daft (2002), recognises followers' needs
and then defines the exchange process for meeting those needs. Both the leader and the follower benefit from the exchange transaction. Transactional leadership is based on
bureaucratic authority, focuses on task completion, and relies on rewards and punishments (Tracey and Hinkin, 1998).
2.2.1
Transactional Leadership
According
to
Bass (1985b), transactional leadership is a top-down approach to the
organisational management. Leaders must be excellent communicators to convey expectations
of goals. Rewards for meeting and exceeding goals should also be explained in addition to punishments for non-compliance. Interaction between leaders and followers is dependent on employees' accomplishments or lack thereof. Transactional leadership can be sub-divided into
the categories of contingent reward (CR) and management-by-exception (MBE) (Avolio and Bass, 1994).
2.2.1.1 Contingent Reward The contingent reward (CR) approach to leadership involves the communication process of
exchanging relevant information between leaders and followers. Leaders engage
in
a
constructive path-goal transaction of reward for performance (Anonymous, 2002). Leaders explain goals, describe required outcomes, and outline rewards for achievement and
compliance with objectives. Rewards can be in the form of recognition, commendation or
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monetary sums. Contingent reward can also include disciplinary action for non-compliance in
meeting goals and objectives. Communication of required outcomes also addresses the negative aspect of not meeting performance expectations (Avolio and Bass, 1994).
Contingent rewards can be described as deals between leaders and followers. Leaders clearly
define expectation of outcomes and the rewards if those expectations are met. Rewards and recognitions are exchanged for accomplishments. The leaders become monitors of employees'
actions. Leaders must actively observe their employees' progress and provide supportive feedback, enabling employees to meet expectations. According to Avolio and Bass (1994), "contingent reward has been found to be reasonably effective in motivating others to achieve higher levels of development and performance" (p. 4)
2.2.1.2 Management-By-Exception Management-by-exception (MBE) can also be described as a putting out fires approach or reactive management style (Avolio and Bass, 1994). It can be passive or active (MBE-A or MBE-P). Avolio and Bass (1994) explained that with "MBE-A the leader arranges to actively monitor deviances from standards, mistakes, and errors in the follower's assignments and to
take corrective action as necessary" (p.4). With MBE-P, leaders wait passively for mistakes, errors and deviances from the standard to occur and then act to correct the situation.
In management-by-exception, leaders set standards but wait for problems to arise before acting.
Further, leaders see their responsibility as enforcers of rule and do not like to challenge conventional procedures (Avolio and Bass, 1994). A leader-follower relationship is not a positive
one, as employees only receive feedback when they are doing something wrong (Barbuto and
Brown, 2000). Avolio and Bass (1994) indicated that management-by-exception tends to be ineffective but in certain situations is a necessary approach to leadership.
Four steps described by Nahavandi (1997) as pivotal to successful transactional leadership include: a) goals stated clearly, b) specific goals related to behaviours and outcomes clearly
identified, c) behaviours and outcomes actively monitored and measured and d) frequent contingent feedback provided
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2.2.2
Transformational Leadership
Recent studies provide support for the transformational leadership paradigm and show that it has become a prominent theme in current research on leadership (e.g. Bryman, Gillingwater &
McGuinness, 1996; Cannella & Monroe, 1997; Dansereau, Yammarino, & Markham 1995; Kirkpatrick & Locke, 1996; Rainey & Watson, 1996). Bryman, Gillingwater and McGuinness (1996) described transformational leadership as a "New Leadership Approach." They studied a community transportation agency in United Kingdom and found that transformational leadership
and organisation transformation are the key components for organisational effectiveness in terms of growth and expansion. Luechauer and Shulman (1996) examined the importance of
faculty members empowering their students using transformational leadership rather than lecture oriented, top-down lectures that are traditionally the practice in the classroom. According
to Carlson and Perrewe (1995), transformational leaders appeal to the moral values of individuals through the components of a psychological contract, organisational commitment and ethical culture to encourage ethical behaviours in the organisation.
Transformational leadership has also been investigated outside the United States; these effects
examine the external validity of the basic theory. Singer (1985) showed that male undergraduates in New Zealand preferred working with leaders who were more transformational than transactional. Howell and Avolio (1989) obtained results of an even more complex model of
the role of transformational leadership among 76 Canadian insurance managers in their contributing to their organisational effectiveness. In the Israel Defense Forces, Eden and Shani
(1982) found that the leaders' performances were improved on transformational leadership training. The similar results on the effectiveness of transformational leadership were also found
for New Zealand administrations and professional personnel (Bass. 1985), for managers from
14 Japanese firms (Yokochi, 1989) and for US, Canadian, and German NATO field grade officers (Bryd, 1987).
Transformational leaders attempt to motivate others to do more than they originally planned to do. They challenge others to provide higher performance standards through motivation and role modelling. Leaders who possess the characteristics associated with transformational leadership
describe themselves as change agents (Tichy and Devanna, 1990). Bass and Avolio (1994b)
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defined these behaviours as falling within one of the four l's: idealised influence (II), inspirational motivation (IM), intellectual stimulation (IS), or individualised consideration (IC).
2.2.2.1 Idealised Influence Transformational leaders are role models for change. Leaders must do more than simply talking
about the change, or create the picture of change. They must live up to all of the elements, which are required of the process in order to achieve goals. These elements can be described
as character, integrity, and principle. Leaders can be counted on to do the right thing, thus demonstrating high standards of ethical and moral conduct (Bass and Avolio, 1994b).
As Mariotti (1999) stated, "many would agree that executive effectiveness is closely related to
leadership ability" (p. 70). Employees want leaders who know the organisation, know the employees by name, and are enthusiastic about their jobs. Bell and Harrari (2000) described these leaders as the one who is "loyal to his ethics, his purpose, his goals, his principles, his environment, and himself. No false pride, no arrogance, no unrealistic expectations. He chooses
his attitude: optimistic self-reliance" (p. 19). Those that lead well have a sense of authority. Mariotti (1999) elaborated that,
"People who possess this attribute seem as though they were meant to be in
control, they neither question nor doubt that leadership was destined to their role in life. They accept the leadership without arrogance, regarding it less of a 'divine right' than a 'divine responsibility'." (p. 70)
This confidence without arrogance encourages others to embrace and participate in the direction in which the leader is going. Fleming (2000) stated that, "Modeling commitment, drive,
and a personal touch works better than talking about those necessary attributes; a good example is a whole lot better than good advice" (p. 25). Employees notice what leaders are doing; they look beyond the departmental meetings and memos. They know what is being said
and what is practiced within the organisation. Leading by example is a powerful way to attract followers.
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Another indication of someone's integrity is clearly displayed in his/her character. According to
Miller (2000), "First and foremost, great bosses stand by their convictions and beliefs. They're honest, ethical people. At their core, they are truly good people" (p. 24). These leaders create
such pleasant working environments that employees cannot imagine working anywhere else. This strong character presence in leaders creates an atmosphere of trust. Leaders earn the trust
of employees and empower employees to make decisions. This sends the message of mutual respect and trust on the part of leaders. Gordon (2000) stated that, "effective leadership relies heavily on trust. When you lead with the highest integrity, you inspire others to their best not out of fear, but out of loyalty and mutual respect" (p. 20). In its most basic definition, integrity is doing the right thing. Lack of integrity can have terrible consequences for leaders. "If you don't maintain your integrity, you will never be fully trusted by those you lead" (Cohen, 2000, p. 14).
Leaders are also judged on their credibility. This is an intangible asset, but is often determined through nonverbal communication. Fatt (1999) explained that, "credibility is the believability of a
person as measured by another person" (p. 37). Those whom such leaders interact with will measure this credibility. Nonverbal communication is vital to competence, trustworthiness, and confidence because these qualities are rarely stated.
2.2.2.2 Inspirational Motivation Inspiring others requires a strong presence which others are willing to follow. The purpose of such leaders' visions is to create an inclusive environment so that all within the organisation can
realise their individual, personal parts. Transformational leaders instil an atmosphere of team spirit (Bass and Avolio, 1994a). Transformational leadership is management by vision.
"[These leaders] passionately believe that they can make a difference. They envision the future, creating an ideal and unique image of what the organisation
can become. Through their magnetism and quiet persuasion, [these] leaders enlist others in their dreams. They breathe life into their visions and get people to see exciting possibilities for the future." (Kouzes and Posner, 1997, p. 4)
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Covey (1990) explained that one of the fundamental ways to achieve a goal is to first envision it:
"begin with the end in mind" (p. 96). This is a vision of creating a mental image of where an individual wants to go personally, or where leaders want to take the organisation. The end-result
cannot be achieved if there is no mental vision or plan on how to get there. Leaders can create
the visions and determine the goals. The next step in the process is then to share the visions and motivate others to follow.
Top management may create the vision but to make it successful, it is necessary to develop a shared sense of destiny. Kouzes and Posner (1995) stated that:
"Leadership isn't about imposing the leader's solo dream. It's about enrolling others so that they can see how their own interests and aspirations are aligned
with the vision and can thereby become mobilised to commit their individual energies to its realisation." (p. 124)
The vision and communication of what the purpose is would create an inclusive environment
from which all levels of the organisation understand the part they play in its success, All constituents understand the ideal which is being created for the common good, not an exclusive good. Because of the leader's commitment to visions, followers will strive to meet goals to share these visions (Bass and Avolio, 1994b).
2.2.2.3 Intellectual Stimulation Transformational leaders motivate their followers to be creative and innovative. They encourage
followers to question practices and processes without fear of being reprimanded. Their teams celebrate innovative approaches to problem solving (Bass and Avolio, 1994b). Transformational leaders must have a genuine concern for others and should be able to build relationships of trust
by encouraging collaboration, communicating information, and raising members' visibility to top management.
Autonomy, the freedom to act, to make decisions independently, is crucial to achieve a sense of
self-worth (Stern and Borcia, 2000, p. 19). It strongly influences the decision of people to join
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and stay with an organisation. It is the quality of successful leaders to understand this fact and use it for the benefit of their organisation.
By practising intellectual stimulation, these leaders encourage followers to try new approaches
to old processes. They issue no public criticism of individual members' mistakes and solicit followers to provide ideas and suggestions to solve problems. Consequently, new approaches and suggestions from followers are acknowledged and tried. Everyone within the work group is encouraged to think and act innovatively.
2.2.2.4 Individualised Consideration
Transformational leaders know their followers. They pay attention to others and act as coaches
or mentors enabling all to achieve their personal and professional goals (Bass and Avolio, 1994a). To accomplish extraordinary things in an organisation requires hard work. To keep individuals working on common goals with steady or increasing expectations, such leaders must
recognise accomplishments. They must realise the importance of celebrating and rewarding the efforts of their employees.
Leaders need to understand the requirements of their employees and should train, educate, coach, mentor, and encourage quality work. They need to create new learning opportunities along with a work environment that supports those opportunities. Although part of a team, each
worker needs to be recognised by his/her leaders. A transformational environment is inclusive
and leaders' behaviours and attitudes are reflective of acceptance. Often leaders follow a communication process .vith eniployees through "management 1),/ Norking around." This creates
a personalised opportunity for employees to participate and leaders to practice their effective listening skills (Bass, 1985a).
Bass and Avolio (1990b) viewed transformational and transactional leadership styles as distinct,
but not mutually exclusive processes, and they recognised that the same leader might use both
types of leadership styles at different times in different situations. Nowadays, the researchers
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believe that transformational and transactional behaviours may have an additive effect (Wysong, 2000).
2.2.3
Passive Leadership
The major indicator of passive leadership behaviour is the manager's or leader's incapacity to get involved. The leader works intentionally on avoiding involvement or confrontation, keeping
personal interactions to a minimum. This approach indicates a leader fast losing his or her
power base, out of touch with their workers, and a daily reminder to the organisation of anachronistic work practices.
Besides the transactional and transformational leadership styles, recent studies by Bass et al.
(2003) identified passive leadership as a separated leadership style that measures a nonleadership orientation. This non-leadership style known as Laissez Faire reflects the absence of
leadership and avoidance of intervention. Leaders in this category avoids making decision, hesitate in taking action and are absent when needed (Judge and Piccolo, 2004). Carried to its extreme, passive leadership embodies a "sink-or-swim" strategy. Although passive leadership is
observed infrequently in U.S. businesses (Bass & Avolio, 1989), managers still exhibit it
in
varying amounts (Bass, 1990a). Prior research has found that passive leadership has an adverse effect on work-related outcomes of employees (Bass, 1990a; Yammarino & Bass, 1990). Roberto13 (2005) argued that the mere existence of passive leadership constitutes a
substantial barrier to candid dialogue and debate within organisations between leaders and followers.
2.2.3.1 Laissez Faire "Laissez Faire style is the avoidance or absence of leadership and is, by definition, the most inactive as well as the most ineffective according to almost all research on the style" (Bass and Avolio, 1994b, p. 5). Laissez Faire can be described as a non-transaction between leaders and followers. This passive style makes no attempts to make agreements with followers to motivate 13 The views of Professor Michael Roberto of the Harvard Business School, on passive leadership can be referred
to http://hbswk.hbs.edu/iternjhtml?id=4833&t=leadership
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them, to set standards or to give feedback (Lievens et al., 1997). Laissez Faire leaders abdicate
their responsibility and avoid making decisions (Bass, 1990). Subordinates working under this kind of supervisor basically are left to their own devices to execute their job responsibilities.
Laissez Faire leaders avoid taking a stand on any issue (Bass and Avolio, 1994b). Further, these leaders are ineffective communicators who do not emphasise result or explain objectives
or standards. Laissez Faire individuals are often absent when issues arise, refrain from taking
corrective actions when they are available, and are unaware of employees' performance standards (Barbuto and Brown, 2000).
2.2.4
Leadership Outcomes
Leadership outcomes can be divided into three categories, which define the employees'
commitments to the organisation and are greatly influenced by leadership style and the employees' perception of that style (Avolio and Bass, 1995). According to Bass and Avolio (1995), extra effort, effectiveness, and satisfaction are by-products from leaders who augment
transactional with transformational leadership. Based on a study of 30 researches on transactional and transformational leadership using various versions of Bass' (1985) Multifactor
Leadership Questionnaire, three distinct leadership outcomes were uncovered (refer Appendix
2). Therefore, the following three factors were considered as the measurement of leadership
outcomes for this study: (a) effectiveness which is meeting job-related needs and leading effective group; (b) extra effort which is the ability of leaders to get others to do more than they are expected to do, try harder, and create desire in others to succeed; and (c) satisfaction which
is working with others in a satisfying lay (Parbuto, 1999).
Determining effectiveness of an organisation is difficult to achieve. The normal assumption is
that if an organisation achieves its goals, then it is effective. However, according to Hodge, Anthony, and Gales (1996), effectiveness is more complicated than merely achieving goals. This
belief is shared by Robey and Sales (1994) who indicated that organisational effectiveness refers to human judgments about the desirability of the outcomes of organisational performance from the vantage point of the various constituencies. According to Avolio and Bass (1995), extra
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effort is the key to get others does more than they are expected to do. Satisfaction is working
with others in a pleasing manner. Effectiveness is meeting job-related needs and leading an effective group (Avolio and Bass, 1995).
Mowday, Porter and Steers (1982) identified organisational commitment as: "1) a sturdy belief in and acceptance of the organisational goals and values; 2) a willingness to exert significant effort on behalf of the organisation; and 3) a strong desire to maintain membership in the organisation"
(p. 27). The statement was agreed by Hodge et al. (1996), Jones (1997) Kreitner and Kinicki (1995) and Robey and Sales (1994).
2.2.4.1 Effectiveness
According to Robey and Sales (1994), the internal process approach emphasises "the maintenance of effective human relationships within the organisation" (p. 57). This aspect of
leadership outcomes stresses the human processes of the corporation. These can include teamwork, communication flow, loyalty, motivation, and sound decision-making. Kreitner and Kinicki (1995) stated, "the organisation functions smoothly with a minimum of internal strain" (p. 497) when effectiveness has been achieved.
It is inferred that organisations that perform well in this category of effectiveness are healthy
systems from a behavioural standpoint. Further, these organisations have a minimum of dysfunctional conflict and destructive political manoeuvring (Kreitner and Kinicki, 1995). To be
effective, an organisation needs a structure and a culture that fosters adaptability and quick
responses to changing conditions in the environment. Flexibility is also a prerequisite, This quickens the pace of decision-making, innovation of products, and faster response times for services (Jones, 1997).
2.2.4.2 Satisfaction
Parry (1999) views that leadership has a positive impact on the bottom line of organisational
output. However, that impact is not a direct one. Leadership has an immediate effect on the
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psychology of the workforce. It improves the motivation, perceptions, attributes, commitment, persistence, understanding, and satisfaction of the workforce. These leadership outcomes can be identified and measured. According to Bass and Avolio (2004), leaders must identify methods that produce satisfactory results whilst at the same time ensure that others are satisfied working
with the leader. Meanwhile, Amran (2005) believed that the provision of conducive facilities would promote satisfaction with the leadership.
2.2.4.3 Extra Effort
According to Eagly, Johannesen-Schmidt and Van Eagen (2003), extra efforts are actions, which get others to try hard and do more than expected. Dessler (1998) identified seven efforts
of large corporations which lead to employee commitment and leadership outcomes: (a) emphasise people-first values, (b) base communication on trust, (c) set effective objectives, (d) do high-competency hiring, (e) provide security, (f) promise attractive compensation packages,
and (g) be all you can be. Dessler (1998), Greenberg and Baron (1997), Jones (1997) and Robbins (1997), all indicated that organisations that foster a proactive change atmosphere are
reported by their employees as being most effective. According to Bass and Avolio (2004), leaders must be able to make others work beyond their own expectations, inspire others to desire more success and encourage others to be willing to try harder.
2.2.5
Relationship between Leadership Styles and Outcomes
Barling, Weber and Kelloway (1996) completed a field experiment with twenty managers trained
in transformational leadership and compared them to a control group. Positive training effects were
found,
especially
concerning
the
managers'
intellectual
stimulation.
Followers'
commitments and performance also increased because of managers' transformational leadership style. Dvir et al. (2002) explored the impact of training on the full range of leadership.
He conducted a field experiment and reported that MLQ ratings of Israeli Defence Force's leaders and followers, the infantry platoon commanders, the platoon commanders who had undergone the transformational leadership training were more transformational, less passive,
and less likely to adopt manage-by-exception's approach. The comparison group did not
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demonstrate the same effects on either ratings of leadership or performance. In contrast to the
comparison group, platoons led by leaders trained in transformational leadership had higher
senses of self-efficacy and belonging and were higher in four of six measures of objective performance six months after training. Implications from these studies diagram the importance of education and training. Findings suggest that effective leadership skills can be taught, at least
to those individuals currently in a leadership position. These studies did not, however, provide training or test the leadership capacity of subordinates. The research adds to the continuum of theory that effective leadership skills can be taught at the manager/leader level but does not test the theory of the leadership styles of empowered employees and their impact on effectiveness.
Lawrence (2000) conducted extensive research using the MLQ to identify characteristics of executive level leaders in the health care environment (self-reported), perception of senior level
executives' leadership styles via their subordinates responses, and impact on organisational
typology. Diskul (2001) also used the MLQ to examine impact of leadership styles on selfmanaging work teams in the defence industry.
Results of these two studies indicated that there is a strong correlation between transformational leaders and a positive effect on their followers, resulting in leadership outcomes. However, each
of the studies suggested that upper-level leaders, more often than lower-level leaders (usually having
job
titles
of manager
or
supervisor),
display
transformational
behaviours.
Recommendations for future research suggested that more information is needed on a cross-
section of organisational levels. Additionally, the Diskul (2001) study on self-managing work
teams (SMWT) showed that strong leadership at the onset of the team's establishment will influence success of the work team. An individual who understands the dynamics of leadership must help to establish a team and guide it through its initial development. Although the studies
differ in their secondary analysis of self-managing work teams versus organisational typology, the use of the MLQ provides a common thread between the two. These studies pointed out that
training and education within the work environment is paramount. Human Resource personnel need to realise the importance of transformational leaders and provide leading employees with the skills to develop their potential.
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The adverse relationship between passive leadership and outcomes had been illustrated by many researches. A recent study by Peng (2005) on the relationship between the leadership style and the Word-Spirit orientation of leaders in Protestant and Pentecostal Christian churches in
Taipei, Taiwan showed that there is evidence of a relationship between Word-Spirit
orientation and Passive-Avoidant Leadership style (r = -.173, p < .05). Kieffer (2003) studied the
relationship between student satisfaction with campus housing and the perceived leadership styles of campus housing management. Relevant findings indicated that perceptions of more passive-avoidant leadership are consistent with lower satisfaction with campus living. Another
important finding of this study is that all of the schools under study reported a higher level of transformational leadership style being used on the part of campus housing management when
compared to passive-avoidant leadership and an almost equally as high level of transactional
leadership versus passive-avoidant leadership. Therefore, given that the results of this study show clearly low levels of passive-avoidant leadership and also clearly low levels of satisfaction with passive-avoidant leadership, the remaining focus can be directed toward transactional and transformational leadership in campus housing management.
Finally Pongjarern's (2003) study to determine teachers' perceptions of the transformational leadership characteristics of their principals showed that positive linear relationships were found
for experience in teaching and the following three factors: Idealised Influence (Attributed), Idealised Influence (Behaviour), and Inspirational Motivation. Negative linear relationships were found for Management by Exception (Passive) and Laissez Faire leadership.
2.2.6
Directive-Transaction-Transformational-Empowering Leadership
Using historical analysis of leadership theory and research, Pearce et al. (2003) was able to
derive a model of leadership that contained four broad level types of leadership using EFA
techniques, with two independent data sets followed by empirically testing each of the competing, theoretically plausible models, using CFA techniques, with a third, independent data
set. The results clearly suggest that a two factor theory of leadership does not adequately account for the underlying nature of the phenomenon we call leadership. The research suggests that there are at least four types of leadership:
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The directive leadership type includes issuing instructions and commands, assigning goals and
contingent reprimand. The transactional leadership type comprises of dispensing contingent material rewards and dispensing contingent personal rewards. The transformational leadership
type includes providing a sense of vision, challenging the status quo, engaging in idealism and
providing stimulation and inspiration. The empowering leadership type includes encouraging
opportunity thinking, encouraging self-rewards, encouraging self-leadership, engaging
in
participative goal setting and encouraging teamwork.
Research results by Pearce et al. (2003) are still debatable and were based on a relatively small
sample size suggesting generalisability limitations. Furthermore, this model has not been
empirically tested and researched to validate and correlate its components from a wider perspective.
2.3
THE MULTIFACTOR LEADERSHIP QUESTIONNAIRE
It is from the perspective of transactional leadership and transformational leadership that Bass (1985a) conducted research to develop the Multifactor Leadership Questionnaire (MLQ), which
measures a full range of leadership styles (transactional and transformational) and ties these styles to leadership outcomes.
However, the pervasive application of the MLQ does not imply that the construct is perfect and without criticism. As expected, with the increasing acceptance of any theory critical analysis is a
necessary part of the process. This research seeks to address the more serious criticisms by
grouping them into four categories with concise and representative explanations. These categories are: (1) criticisms of the MLQ construct; (2) criticism of the leadership concept; (3) criticism of prevailing research designs used to measure leadership concept; and (4) criticism of the ethics of the leadership concept.
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2.3.1
Criticisms of the MLQ Construct
Criticisms of the MLQ construct are related to the following areas: high inter correlations among
the leadership style components, the inability of some studies to replicate the eight factors comprising the entire full range of leadership model, and insufficient items measuring actual leader Behaviour.
2.3.1.1 Criticism on the High Inter Correlation of Leadership Style Components
Much of the criticism of the MLQ is related to the high correlations between the four components
of the leadership dimension (Bycio, Hackett, and Allen, 1995). Although Bycio, Hackett and Allen (1995) were able to confirm the fit of Bass's five-factor structure using LISREL, they were
suspicious of the high intercorrelations and the weak differential relationships with outcome variables. Bycio, Hackett and Allen (1995) also affirm the criticism levied by others in wondering
if a two factor Active-Passive model is a better reflection of the data. Furthermore, Tracey and
Hinkin (1998) argue that the four dimensions of leadership components be collapsed into a composite scale because of the inability to support the factor structure through confirmatory factor analysis and the high intercorrelation of the dimensions.
2.3.1.2 Response to Critique
Attempts to abstract the leadership dimensions into one category should be refuted based on
seminal studies by Avolio and Bass, (1998) as well as Bass and Avolio, (1993). The aforementioned studies rely heavily on 2 theoretical argument that purely charismatic leaders
may lack the individual consideration necessary to support the development of the follower. Furthermore, Avolio and Bass (1998) believe that such leaders will attempt to rely on emotional
appeal to influence followers. The long-term effects of the purely charismatic leader will be
negated. Bass (1997a,
p.
133) states, "the transformational factors are intercorrelated.
Nevertheless, they are assessed separately because they are conceptually distinct and important for diagnostic purposes". It was acknowledged that the high correlation of the transformational factors and the primary effects of the charismatic components thus confirming
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the factor analytic process which confirms three significant transformational leadership components (Bass, 1997a).
2.3.1.3 Criticism on the Inability to Replicate the Full Range of Leadership Model
Although many studies have replicated the original Full Range of Leadership model (transformational (4 factors), transactional (3 factors), and Laissez Faire
(1
factor)) or
components of this model (e.g. the transformational factor), there are some domestic and international studies that have been unable to do so. Den Hartog, Van Muijen, and Koopman
(1997) level another critique upon Bass's eight separate dimensions of leadership in their inability to replicate these dimensions in an exploratory factor analysis of a Dutch sample. Specifically, they were unable to distinguish the sub dimensions of the transformational factor as
defined by Bass (1985) as the transformational items grouped together differently. Contrary to
the findings of Bass and Hater (1988), they were also unable to distinguish between passive
management-by-exception and Laissez Faire leadership styles. "Therefore, even if the theoretical distinction is of importance, it either cannot be measured clearly with the MLQ, or respondents do not perceive the difference" (Den Hartog, Van Muijen, and Koopman, 1997, p.
33). Den Hartog, Van Muijen, and Koopman (1997) argued that Bass has placed the passive
management-by-exception factor in the wrong dimension, as it should be grouped with the Laissez Faire into a passive dimension rather than with transactional leadership. This finding augments those of Lowe, Kroeck, and Sivasubramaniam whose metal-analytic findings "suggest
that the transactional scales of the MLQ should probably undergo some revision..." (1996, p. 416).
2.3.1.4 Response to Critique
Based on a study of literature on this subject matter (refer Appendix 2), it is clear that Bass and associates believed that the overwhelming number of studies that do replicate the Full Range of
Leadership Model significantly outweigh the exceptions. Furthermore, Bass points out that the
findings have been generally replicated in domestic and international studies. "The factors represented in
the model of transactional and transformational leadership have been
© W.A.R. Wan Razak
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generalised across a wide variety of organisations, cultures, and levels within organisations" (Bass and Avolio, 1993, P. 53). However, while holding to the conceptual and empirical validity
of the model, Bass and Avolio (1993, p. 61) do admit that the "structure is more complex than originally proposed".
2.3.1.5 Criticism on the Insufficient Items Measuring Actual Leader Behaviour
The final critique that will be illuminated is the paucity of items measuring actual leader behaviours.
Yukl (1999) notes
that
the MLQ lacks sufficient behavioural scales for
understanding effective leadership. According to Yukl, "key omissions include some tasks Behaviours (e.g. clarifying, planning), some relations behaviours (e.g. scanning and building,
networking), and some change-oriented behaviours (scanning and analysis of the external environment,
strategy
reformulation,
political
activities
to
build
support for
change,
reorganisation to support a new strategy" (1999, p. 37). Yukl also believes that while Bass conceptually recognises the distinction between autocratic and participative leadership, the MLQ
does not include items to effectively measure these behaviours (1999). Yukl also questions the
validity of studies utilising the MLQ as he notes that most studies fail to control for the unmeasured behaviours that may be confounding the transformational-transactional findings (1999). Interestingly, in comparing the MLQ to Yukl's (Yukl and Van Fleet, 1992) Managerial Practices Survey (MPS), Tracey and Hinkin (1998) discussed the areas of conceptual similarity
between the MLQ's transformational dimension and various managerial behaviours included in Yukl's taxonomy.
2.3.1.6 Response to Critique
Bass and Avolio (1993) express their disagreement with those who believe that charisma can only be assessed by measuring behaviours rather than considering attributions and impact. In response to a call for a more Behavioural emphasis, Bass and Avolio (1993) offer a constellation
of behaviours as indicators of transformational leadership. These behavioural indicators are represented in Table 2.1.
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Table 2.1:
Behavioural Indicators of Transformational Leadership
Transformational Leadership Behavioural Indicators Individual Consideration Recognises individual strengths and weaknesses
Enlarges individual discretion commensurate with ability and needs
Shows interest in the well-being of others
Encourages a two-way exchange of views
Assigns projects based on individual ability and needs
Promotes self-development
Inspirational Motivation
Convinces followers that they have the ability to achieve levels of performance beyond what they felt was possible
Raises expectations by clarifying the challenges
Think ahead to take advantage of unforeseen
Sets an example for others to strive for
opportunities
Presents an optimistic and attainable view of the future
Provides meaning for actions
Intellectual stimulation Encourages assumptions
followers
to
re-examine
their
Takes past examples and applies to current
Creates a "readiness" for changes in thinking
problems
Creates a "holistic" picture that incorporates different views of a problem
Encourages followers to revisit problems
Puts forth or listens to seemingly foolish ideas
Idealised influence Transmits a sense of joint mission and ownership
Addresses crises "head on"
Expresses dedication to followers
Eases group tension in critical times
Appeals to the hopes and desires of followers
Sacrifices self-gain for the gain of others
ss ana Avollo, p.
2.3.2
Criticism of OA Transformational L..A.rship Concept
Transformational/charismatic leadership has become accepted within the leadership research domain as conceptually sound and empirically observable (Hunt, 1999). However, some authors
believe there are specific aspects of leadership that are ignored by transformational models. Two specific criticisms noted by Yukl among others are that Bass's model inadequately deals with group processes, and that there is insufficient conceptualisation and measurement of the reciprocal dynamic of the leader-follower relationship.
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2.3.2.1 Criticism on the Insufficient Attention to Group Processes
Yukl (1999) believes that Bass's model and other models of charismatic leadership, which rely
on the measurement of dyadic processes, fail to appropriately deal with the group context. According to Yukl (1999), group processes are often ignored in most theories of transformational
and charismatic leadership and these theories do not explicitly incorporate leadership Behaviours such as organising, coordinating, team building, and facilitating group decisions. Yukl concluded that transformational and charismatic leadership research needs to incorporate
more of the "relevant concepts and findings from the strategic leadership literature" (1999, p. 39), a notion which is concurred by Hunt and Peterson (1997).
2.3.2.2 Response to Critique
Despite the validity of Yukl's (1999) claim that transformational leadership is inadequate in addressing some group/organisational dynamics (e.g. group decision-making), Avolio and Bass
(1995) do provide a conceptual model in which the transformational component of individual
consideration fosters a sense of group norms and organisational connectedness which are predicted upon the identification of the follower with the leader through the leader's personalised
attention to him/her. Through the replication of this identification process across teams and
groups shared expectations becomes normalised. "The transformation that occurs
in
perspective is that individual members begin to believe in the collective efficacy of the group, and they adopt the norms for group behaviour (Avolio and Bass, 1995, p. 212). Avolio and Bass
then posit that these normative group patterns become institutionalised into the culture of the organisation through "policy statements, appraisal standards, orientation programs, and so forth"
(1995, p. 212). This organisational impact is captured by Hickman (1997) in the use of the
phrase "transformistic organisation" as describing the organisation in which "transforming leadership is used to create and sustain a context that maximises human capacity,
organisational capabilities and contributions to societal well-being" (p. 2).
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2.3.2.3 Criticism on the Insufficient Attention to the Reciprocity in the Leader-Follower Dyadic Interaction Yukl (1999) also calls for an increased examination of reciprocity in the influence process
between leader and follower. Many believe that Bass's model underemphasises the role of the
follower in the process. These critiques characterise followers in Bass's model as "puppets"
subject to the dictatorial pursuits of a transformational leader. Other more benign criticism suggests that Bass's model gives insufficient attention to the way in which the interchange between the leader and the follower elevates the leader's thinking which, in turn, changes the nature of interaction between leader and follower.
2.3.2.4 Response to critique
Much of Bass's response to this argument is addressed in the subsequent section on ethical critiques of transformational leadership. However, Hickman's (1997) statement that "leadership
and followership in transformistic organisations are predicated less on positional authority and
more on interdependent work relationships centred on common purposes" aptly captures the essence of Bass's response to this criticism. Bass understands a transformational leader as the
one employing a participative style to the extent that he or she is unequivocally and admittedly
influenced by input from the follower. However, the extent of the participative style being measured is certainly a more valid concern.
2.3.3
Research Design Flaws
Two criticisms have been identified which question the completeness and level of analysis of the
research design approach typically used in transformational leadership research. These are the
concerns for common method bias, and the over reliance on subordinate attitudinal ratings rather than more objective criteria.
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2.3.3.1 Criticism on the Common Method Bias
One of the most serious criticisms on the transformational leadership research is the volume of
studies that have utilised Bass's MLQ. Ironically, this instrument has been a key factor in advancing leadership research. However, since so many studies have employed this construct, scholars have come to question whether common method bias is distorting our understanding of
transformational leadership rather than truly illuminating it. Some researchers have called for other approaches to provide convergent validity to the MLQ findings. Yukl (1999) agrees with
the suggestions of others (Bennis and Nanus, 1985a; Kan, 2002) in calling for alternative approaches to the study of transformational leadership, particularly in the increased need for an integration of qualitative approaches in interpreting quantitative findings.
2.3.3.2 Response to critique
The researcher believes that the MLQ has been a "victim of its success". The hundreds of studies that have utilised some version of the MLQ have provided a substantive quantitative literature including several meta-analytic studies. This phenomenon has inevitably led to an increased call for qualitative data to augment/clarify the findings. The researcher believes that
Bass would agree with this call. Bass does emphasise that the qualitative research was instrumental in the original conceptualisation and implementation of the MLQ.
2.3.3.3 Criticism on the Over Reliance on Subordinate Ratings
Transformational leadership research has also been heavily criticised for its reliance on subordinate ratings of their leaders. Critics argue that these attitudinal assessments are subject
to fundamental attribution errors and as previously discussed are being distorted by the follower's implicit leadership cognitions (Bryman, 1992). The MLQ subordinate ratings may be more a reflection of the follower's idea of a transformational leader rather than being based on
the actual Behaviour of the leader. These critics often call for more objective standards of measurement (e.g. financial performance of the organisation) to be used as a dependent variable.
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A related criticism falling under the rubric of the common method variance problem is that subordinates are providing the data on leader behaviour as well as outcomes. Bryman (1992)
points out that this approach may artificially inflate correlations because of respondent's tendencies to be consistent in their responses. These types of measurement flaws were primarily responsible for the difficulties arising from the Ohio State Studies.
The MLQ measures could be more problematic if it were shown (as it was in the case of measures of initiating structure and consideration in the Ohio questionnaires) that respondent's
ratings of their superior's Behaviour were affected by such thing as their knowledge of the effectiveness of those superiors. If this were true, as it was with the Ohio research, the MLQ measures would be flawed (Bryman, 1992, p. 128).
2.3.3.4 Response to Critique
There have been several studies (Hater and Bass, 1988; Yammarino and Bass, 1990) that have
used objective measures of outcomes independent of the subordinate ratings. The positive affects for transformational leadership were still significantly shown, although the correlations did
tend to be smaller than studies employing only subordinate ratings. However, Bass attention to
these types of studies employing ancillary outcome measurements seems to imply that he recognises the potential issues of common method variance. Therefore, it is apparent that Bass
and colleagues have taken this concem seriously and are interested in showing the validity of the transformational-transactional paradigm when such potential flaws are addressed.
2.3.4
Criticism on the Ethics of Transfnrmnfinnal I parlarchip
Some critics of transformational leadership contend that it is rife with unethical practices which are systematically destroying the humanitarian and relational gains that have been made in the workplace and in society at large. While a thorough examination of these arguments is available
in Bass's (1997b) working paper, this section will present an overview of the claims. According
to Bass (1997b) most of these criticisms are leveled by organisational development (OD) practitioners. The five ethical criticisms are that "transformational leadership: (1) lends itself to
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amoral puffery since it makes use of impression management; (2) lacks the checks and balances necessary to avoid dictatorship and oppression; (3) is antithetical to shared leadership,
equality, and participative decision making; (4) may emotionally engage followers to irrationally
accept evil ends contrary to the follower's self interest; and (5) manipulates followers to lose more than they gain.
2.3.4.1 Response to Critique
One of Bass's key points is that these critiques of the ethics of transformational leadership generally fail to examine the distinction between transformational leadership and pseudo transformational leaders. Pseudo transformational leaders are not concerned with the good of
others and the good of society. This leader's focus is primarily self-supportive. The truly transformational leader is concerned for the interests of others as well as the input of others. This leads the transformational leader to engage followers in an individually considerate manner
in which the congruence of leader and follower values and goals is desired. "Transformational leaders attempt to find ways to align those interests into a win-win situation" (Bass, 1997b, p. 15). Furthermore, he/she is invested in an egalitarian decision-making style.
Bass also responds to the negative characterisation of the ethics of impression management in
stating that this argument fails to account for differences "between absolute truth-telling, emotional and intellectual appeals, advocacy, gradations and shadings of the facts and the big lies" (Bass, 1997b, p. 6). Bass highlights the role of trust between the leader and follower which
is required for transformational dynamics to abound (Bass, 1997b; Podsakoff et al., 1990). Therefore, any impression management that takes place must be seen as consistent with what is true. The following quote best encapsulates the ethics of transformational leadership:
"If the leadership is truly transformational, its charisma or "idealised influence" is
characterised by high moral and ethical standards. Its "inspirational motivation"
provides followers with challenges and meaning for engaging in shared goals and undertakings. Its "intellectual stimulation" helps followers to question assumptions and to generate more creative solutions to problems, Its "individual
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consideration" treats each follower as an individual and provides coaching, mentoring and growth opportunities" (Bass, 1997b, p. 4).
2.4
CONCEPTUAL MODEL
This study was adapted from the theories developed by Bass (1985a) and later Bass and Avolio's (1994b) research, after taking into consideration the research subject, TNB as the location for the case study using the MLQ Form 5x-Short (3rd Edition) developed by Bass and Avolio (2004). Since the privatisation of TNB in 1990, meeting the 'bottom line' has been the key
measure of TN B's ability to be a leading GLC. As mentioned in the previous chapter, a key challenge facing TNB is the ability to transformation to make it perform more efficiently by being commercially focused and customer service oriented.
Though much work on leadership styles and outcomes had been done by Bass and Avolio, there was a lack of work to operationalise conceptually the variables concerned. In order to operationalise the concepts of leadership by Bass and Avolio, an appropriate conceptual model
is needed and should be developed to reflect the environment within which the study is conducted (Mumford et al., 1993). A conceptual model lays out the dependent variable or outcomes, the independent variables or predictors, and the relationships between them since "both predictors and outcomes are conceived as variables that can be measured along some
type of scale" (Newman and Robey, 1992, p. 250). Initial reviews of past literature helped to identify a relevant model developed by Srisilpsophon (1999), who treated demographic variables as inputs to the leadership styles (refer Figure 2.1). However, Srisilpsophon's (1999) model was
considered to be unsuitable for this study as the demographic variables were tested out on their
influence on the leadership styles only, whereas they could also influence the leadership outcomes. In Srisilpsophon's (1999) model the process approach was used and the leadership styles act more as intervening variables instead of independent variables.
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Figure 2.1: Srisilpsophon's Transformational Leadership and Performance Outcomes Model Leadership Outcomes
Leadership Styles
Demographic Variables
Transformational Leadership Idealised Influence Inspiration Intellectual Stimulation Individualised Consideration
Personal Purpose
Business Purpose
Transactional Leadership Contingent Rewards
Job Satisfaction Extra Effort on the Job Perception of Leader Effectiveness
Management-Byexception .
Laissez-faire
Source: Srisilpsophon, P. 1999, Transformational Leadership and Performance Outcomes of Multinational Corporations in Thailand, DBA Thesis, University of Southeastern
Therefore,
a
preliminary conceptual
model
for this study,
taking
into
consideration
Srisilpsophon's (1999) model was developed using the factor approach as shown in Figure 2.2.
The conceptual model will be tested out to address the research questions posed in this study.
In factor theories, these variables are usually conceptualised as variables: entities which can take on a range of values (Malhotra, 1997).
Based on Figure 2.2, the central focus of the study is leadership outcomes, which are the dependent variables. It implies that for a TNB middle manager to implement his/her leadership styles (independent variables) to achieve the desired outcomes (dependent variables), there are several demographic variables which function as moderators. The use of demographic variables
as moderators replicates a leadership study by Abdullah (2002) as well as a study on IT competency by Amran (2005). Within the context of this study, the demographic variables are
expected to influence the relationship between leadership styles and outcomes based on its function as dummy variables in the regression analyses.
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Figure 2.2: Preliminary Conceptual Model of Leadership Styles and Outcomes at TNB
Independent Variables
Moderator
Dependent Variables
Demographic Variables
RQ1, RQ2
Leadership Styles
RQ3
RQ1, RQ2
Transformational Leadership Intellectual Stimulation Inspirational Motivation Individual Consideration Idealised Influence (Attributed) Idealised Influence (Behaviour) Transactional Leadership Contingent Reward Management-by-Exception (Active) Management-by-Exception (Passive) Passive Leadership Laissez Faire
Leadership Outcomes
RQ4
Effectiveness Extra Effort Satisfaction
The factor approach is used in this study as it calls for the exclusion of the feedback loop from
the finalised conceptual model. This makes the testing of the model more do-able and achievable. The factor approach was favoured over the process approach so as to better understand the relationship between the dependent and independent variables. Within the
context of this research, the dependant variables are the leadership outcomes, while the independent variables are the leadership styles with demographic variables functioning as moderators to both the dependent and independent variables. Furthermore, "both predictors and outcomes are conceived as variables that can be measured along some type of scale" (Newman
and Robey, 1992, p. 250). Within the context of the instrument used in this research, the scale consistently used is a five-point Likert scale.
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2.5
SUMMARY
This chapter presented a comprehensive literature review of leadership typologies and theories. It started with a presentation of the four typologies of leadership. It is interesting to note that trait leadership typology looks into the 'who' type of questions, i.e., leadership depends upon who the
leader is. Over time, behaviour leadership typology gained prominence and began to address the issues of 'what' type of questions, i.e., leadership depends upon what the leader does. At a
later stage, situational leadership typology gained prominence and began to focus on 'when' type of questions, i.e., leadership depends upon which situations are conducive to leadership
and when the leader can emerges. Finally, value based transactional leadership typology is considered as the 'in-thing' as it focuses on the 'why' type of questions. Transactional leadership
depends upon values and vision. At the same time, emphasis of transactional leadership is not
on studying specific leaders in specific situations, doing specific things, rather, what are the
common relationship elements exhibited over time that characterise this thing called "leadership". A focus of theories on transactional/transformational leadership developed by Bass
and his colleagues from 1985 for this study is presented and rationalised accordingly. A leadership model introduced by Srisilpsophon (1999) was used as a basis for the development
of a preliminary conceptual model, which integrated the leadership styles and outcomes with
selected demographic variables. The conceptual model was used to address the research questions for this study.
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CHAPTER 3
RESEARCH METHODS
This case study provides explanation (Borg and Gall, 1993) and understanding (Yin, 1994) of the leadership styles and outcomes of TNB. This case study used survey data on leadership style of TNB middle managers based on a questionnaire. The benefit of the case study is that it enables a rigorous, holistic investigation of issues shaping the work lives of middle managers in
TNB. The objective of this case study was to develop an understanding of TNB's leadership style and serve as a basis to develop a model or to apply solutions to situations. A major benefit of the case study method is that it provides a means for working with information obtained from
various individuals participating within the organisation that is being studied without undue interference with the process being studied. Therefore, the outcome of this case study research leads to recommended areas of improvement and the development of theoretical organisational
change strategies (Gall et al., 2003; Yin, 1994; Mertens, 1998) relevant to TNB. This chapter consists of the following topics: (a) appropriateness of method, (b) population and sampling, (c)
questionnaire development, (d) data collection techniques, (e) validity and reliability of instrument (f) analysis of data, and (g) summary.
3.1
APPROPRIATENESS OF METHOD
Quantitative method using the survey involves administration of questionnaires to relatively large
groups of people. A key feature of survey studies is that information is collected from part of the
group and then applied to the whole group (Singleton et al., 1988). Survey study or descriptive
research also involves collecting data in order to test the hypotheses of a study. Typical descriptive research includes the assessment of attitudes, opinions, demographic information, conditions, and procedures.
A survey study was deemed appropriate for a portion of this research for three reasons. First,
the nature of this study was to determine the relationship between leadership styles and outcomes among the middle management in TNB. Survey research involved data collection from a group, generalising the result of study to predict the attitude of the population of interest.
© W.A.R. Wan Razak
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Second, the survey questionnaire may be structured to elicit information from the population of
interest in a systematic and unbiased manner. Third, statistical analysis may be utilised to test the hypotheses of study and gain knowledge regarding the degree of influence of the leadership
styles and outcomes; the collected data could guide observations at the field study. The goal of
the survey was to determine the perception of middle managers of these leadership styles and outcome factors, based on a five-level scale of strongly disagree, disagree, neutral, agree and strongly agree.
After the data collection exercise, reliability and validity tests will be conducted followed by simple descriptive and inferential statistical analysis using 0.05 level of confidence to determine statistical significance.
3.2
POPULATION AND SAMPLING
The study approached all who fall under the category of middle management; i.e., those holding
the position of general managers in TNB. Ninety nine middle managers were identified as the population in this study (refer Appendix 1). A random sampling method was used to identify 52 middle managers to participate in the survey. Based on the population of 99 middle managers,
the 52 middle managers selected were deemed to be a fair representation of the population of
TNB middle managers. The selection method was based on a method of determining sample size proposed by Israel (1992). With reference to Table 3.1, a sample size of 51 was deemed as sufficient but with a precision level of ±10%.
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Table 3.1:
Sample Size for ±5%, ±7% and ±10% Precision Levels Where Confidence Level is 95% Sample Size (n) for Precision (e) of:
Size of Population ±5%
±7%
±10%
100
81
67
51
125
96
78
56
150
110
86
61
175
122
94
64
200
134
101
67
225
144
107
70
250
154
112
72
275
163
117
74
300
172
121
76
Source: Israel, Glenn D. 1992. Determining Sample Size. Program Evaluation and Organisational Development, IFAS, University of Florida. PEOD-6. October.
3.3
QUESTIONNAIRE DEVELOPMENT
The questionnaire was constructed primarily from the MLQ Form 5x-Short (3rd Edition) by Bass and Avolio (2004) but was modified and adapted to suit TN B's environment. The MLQ has been
translated into Spanish, Portuguese, Italian, French, German, Norwegian, Swedish, Hebrew, Turkish, Arabic, Chinese, Thai, and Korean for use in various assessment and training research
projects (Avolio, 1999). It has also been used in nearly 200 research programs, doctoral dissertations, and masters' theses around the globe in the last few years (Bass & Avolio, 2004).
The number of studies and different applications of the survey instrument indicates that a great
deal of reliability has been placed on the MLQ for measuring the style of leadership and the instrument is generally accepted as valid and reliable.
However, for the purpose of this research the MLQ Form 5-X Short (3rd Edition) was modified of which the final form of the questionnaire consists of two major parts, i.e. sections A and B.
Section A consists of items on leadership styles and outcomes and an optional open-ended question for respondents to comment on. The items measuring leadership styles and outcomes
were anchored on a five-point Liked scale to represent specific transactional, transformational
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and passive leadership styles as well as the three types of leadership outcomes. A 5-point Liked scale was utilised in the questions on the degree of influence of productivity factors in regard to perception measurement: "1" represented strongly disagree; "2" represented disagree; "3" represented neutral; "4" represented agree; and "5" represented strongly agree.
The second part, section B consists of nine questions related to the respondent's demographic background. There are certain demographic variables, such as the level of education and work unit, which are known to have significant impacts on social science studies (Rash i et al., 2003).
Other variables, such as age of respondent, number of employees in the unit, gender, working experience and years as a middle manager, will also be studied in this research to see if there
are any differences in the leadership styles and outcomes based on the aforementioned demographic variables as previous research tends to indicate that some of these demographic variables may influence individual perceptions (Maurer, 1994).
3.4
VALIDITY AND RELIABILITY OF INSTRUMENT
The validity and reliability of the instrument used determines the scientific worth of any study. Without satisfying both, the study will have little, if any, value to the body of scientific knowledge
(Creswell, 1994; Leedy and Ormrod, 2001). Both validity and reliability are crucial to any research.
Validity deals with "the soundness, the effectiveness of the measuring instrument" (Leedy and
Ormrod, 2001, p. 24). Validity is the degree to which a test measures what it is supposed to measure and consequently permits the appropriate interpretation of data (Gay, 1996, p. 138).
The analysis of validity was performed for content and construct validities. The experts in academia and in practice established content validity. The construct validity was established by
performing a multivariate statistical analysis. The content and construct validities may be explained in greater detail.
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3.4.1
Content Validity
After the survey instrument was designed, three experts in academia and in practice validated
its contents based on their knowledge and interest in the study. Academicians reviewed the contents of the survey, its specific appropriateness and clarity of question, and the Likert scale attached to the items. The academicians provided valuable comments for improving the survey
instrument and follow-up revisions were made to the survey based on feedback received from these experts.
Gay (1996) defines content validity as the degree to which a test measures an intended content area. Content validity consists of item and sampling validity. Gay (1996) states that item validity
determines if the test items represent measurement in the intended content area and sampling validity determines how well the test samples the total content area. If the purpose of research is
to infer about the entire content area based on the performance of items included in the test, an
appropriate content validity is necessary. Content validity is judged by experts rather than as a
quantitative measure to be computed (Gay, 1996). The experts were asked to review the process in developing the survey, the items included in the questionnaire, the intended purpose for inclusion, the clarity, and how well the questions represented the intended content area so as
to provide helpful suggestions for improvement. They were asked to rate in a 3-point scale of low, moderate and high relevance in the following three aspects: (1) the proposed 12 variables, (2) the subject
middle managers, and (3) the context - TNB. They were also asked to give their
comments in terms of clarity and conciseness, and on any other changes, additions or deletions of items (or attributes) which they felt were unnecessary.
Most of the items were rated with moderate to high relevance. In light of the recommendations
by the experts, the instrument was further modified. With some items added, changed or removed, a modified version with 46 items was resulted. An example is the expansion of the variable "satisfaction" from two items to three items by taking into consideration item 46, i.e., the
provision of facilities that promote satisfaction with the leadership (the original MLQ Short 5X
had only 35 items of which satisfaction was represented by 2 items). Table 3.2 presents the number of items for each variable that was developed.
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Table 3.2: Number of Items According to Variables Number of Items
Variables TRANSFORMATIONAL LEADERSHIP - Idealised Influence (Attributed)
4(4)
- Idealised Influence (Behaviour)
4(4)
- Inspirational Motivation
4(4)
- Intellectual Stimulation
4(4)
- Individual Consideration
4(4)
TRANSACTIONAL LEADERSHIP - Contingent Reward
4(4)
- Management By Exception (Active)
4(4)
- Management By Exception (Passive)
4(4)
PASSIVE LEADERSHIP 4(4)
- Laissez Faire
LEADERSHIP OUTCOMES - Extra Effort
3(3)
- Effectiveness
4(4)
- Satisfaction
2(3)
45 (46)
Total (
) = number of items after content validity check
The 46 items representing specific transactional, transformational and passive leadership styles as well as the three types of leadership outcomes are as follows: 1.
Idealised Influence (Attributed) (IA) To make people who work with me feel a sense of pride (item 10) To think for the good of the group rather than self interest (item 18) To act in a manner that earns the respect of others (item 21) To display a sense of power and confidence (item 25)
2.
Idealised Influence (Behaviour) (IIB)
To focus on values and beliefs I am most adamant about (item 6) To stress on importance of having a strong sense of purpose (item 14) To consider the moral and ethical aspects before making decisions (item 23)
To stress the importance of a collective understanding of the significance of a mission (item 34)
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3.
Inspirational Motivation (IM)
To speak about the future in an optimistic way (item 9) To talk about issues that must be resolved in an enthusiastic manner (item 13)
To emphasise the need to communicate a clear vision of the future (item 26) To express confidence in my ability to meet goals (item 36) 4.
Intellectual Stimulation (IS)
To re-examine important assumptions to determine whether they are appropriate (item 2)
To look at all aspects of a problem before solving it (item 8) To get others to look at problems from many angles (item 30) To suggest new ways to successfully complete assignments (item 32) 5.
Individual Consideration (IC)
To spend time teaching and giving continuous instructions (item 15)
To treat others as important individuals rather than just as members of a group (item 19)
To be aware that individuals have different needs, abilities and aspirations (item 29)
To assist people in delivering questions that are urgent (item 31) 6.
Contingent Reward (CR)
To give assistance to those who are making an effort/trying hard (item 1) To clearly state who will be responsible for the success in achieving goals (item 11)
To illustrate to everyone what the rewards of success will be (item 16) To illustrate satisfaction when others meet expectations (item 35) 7.
Management-by-Exception (Active) (MBEA)
To focus on problems that are irregular, exceptions, mistakes and deviations from standard procedures (item 4)
To devote full attention to correcting mistakes, complaints and failures (item 22) To keep track of all mistakes that occur (item 24)
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To place importance on various failures in management to meet standards (item 27)
Management-by-Exception (Passive) (MBEP)
8.
To interfere when problems become complicated (item 3) To wait for a problem to occur before getting involved (item 12) To express the belief that "if it isn't broken, leave it alone" (item 17) To show that I solve problems before they become chronic (item 20) Laissez Faire (LF)
9.
To avoid interfering in important problems that occur (item 5) To have a tendency not to be in office when needed (item 7) To avoid making decisions (item 28)
To delay answering questions that are urgent (item 33) 10.
Extra Effort (EE) To make others work beyond their own expectations (item 39) To inspire others to desire more success (item 42) To encourage others to be willing to try harder (item 44)
11.
Effectiveness (E)
To respond effectively to the job related needs of others (item 37) To effectively represent my group with superiors (item 40) To work effectively according to the organisational needs (item 43) To lead an effective group (item 45) 12.
Satisfaction (S)
To use leadership methods that produce satisfactory results (item 38) To ensure that others are satisfied working with me (item 41) To provide facilities that promote satisfaction with the leadership (item 46)
3.4.2
Construct Validity
Construct validity concerns the underlying construct being measured by the instrument. The construct could be factors or variables involved in the research. Construct validity has been
W.A.R. Wan Razak
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linked to the results of measurement and theoretical reasoning and evaluating the internal structure of the instrument. It has been used for construct-related evidence (Bass 1985), i.e., construct validity should include content representation and criterion relationships. Supporting
the appropriateness and inferences made from the results of the measurement evidences construct-related validity (Trochim, 2001). For the MLQ, this support comes in the form of high
levels of correlation determined through initial and cross-validation examination of the MLQ Survey (Bass & Avolio, 1995).
At the same time, the determination of construct validity involves subjective and objective evaluation (Ballian, 1994; Cooper & Emory, 1995). The subjective evaluation is often based on
the common used and validity of the constructs in the previous research. Within the context of this research, the subjective evaluation is often based studies by Bass et al. since 1985. As an
objective evaluation, Factor Analysis is usually applied to develop constructs or factors within each instrument.
3.4.3
Pilot Study
The soundness and effectiveness of the research instrument was pre-tested by a panel of ten
practitioners for the pilot study (refer Appendix 3). The 10 practitioners reviewed the survey questionnaire for its contents and the clarity and relevance of questions to the field of study. The
practitioners who participated in the review of the survey provided valuable information for enhancement of questionnaire. Besides confirming the survey content, the practitioners also reviewed the cover letter and consent form to ensure clarity in conveying the purpose of study n ..,
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complete the questionnaire and to identify any ambiguous questions or challenges in the questionnaire. In addition, each expert was asked to answer the questions on the suitability of the questionnaire.
These practitioners' understanding of the questions and the questions' intended meaning or construct was assessed. For each survey question, the pilot study group was asked to evaluate
the question based on its content. Pilot study group participants were provided avenues to fully
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express themselves by ensuring them that their views were very important. They were asked to
review each item from the viewpoint of the underlying question: Does each item measure the leadership styles and outcomes? At the end of the pilot-testing session, they were asked to add
any other items they considered influential in the success of the survey. By sharing the same understanding of the survey instrument, the pilot study solicited additional feedback. Based on feedback from the pilot study group, minor adjustments were made to the instrument scale. This
feedback was implemented into the instrument and content validity claim was established accordingly (Creswell, 1994). This pre-testing exercise was designed to enhance face-validity of the survey instrument.
In addition, the pilot study further ensured the statistical reliability of the survey instrument using
Cronbach's alpha (Creswell, 1994). Six managers with at least five years of work experience was part of the pilot study (Refer Appendix 4). According to Nunnally (1978) an alpha value of more than 0.7 is considered desirable. The Cronbach's alpha for the pilot data was calculated at
0.808 (Refer Appendix 5). The high Cronbach's alpha value (close to 1) from this pilot study
indicates that the instrument has a high reliability index thus implying the reliability of the questionnaire for fieldwork. The finalised questionnaire used for the fieldwork is presented in Appendix 6.
3.5
DATA COLLECTION PROCESS
The finalised questionnaire was incorporated with a cover letter containing a brief statement of
the purpose of this study, together with a statement of confidentiality and anonymity regarding
the survey to establish trust between the respondents and the researcher. The questionnaire
consisted of closed (multiple choice) and open-ended questions. The open-ended questions allowed respondents to answer in their own words.
The collection of data was conducted in two phases after approval was obtained from TNB on January 31, 2005 (refer Appendices 7 and 8). The questionnaire was initially designed on line
using the Internet in the first phase as the main tool of communication for collecting data by sending e-mails followed by mailed survey questionnaire as the second phase.
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3.5.1
On-line Survey
The online survey was designed according to Dillman's guidelines (Dillman, 2000). Online
surveys offered advantages for researchers and respondents, i.e., convenience for the researcher by expediting the data collection process to allow direct importation of responses to
the data analysis software. In the meantime, the process required less time for respondents to
fill out a web-based survey and submit it to the researcher. Data collection was conducted online from April 28 till May 31, 2005. However, the low response rate of 15 respondents called for a review of data collection method.
3.5.2
Mailed Survey
To ensure that a larger response rate could be achieved, the questionnaire was printed and mailed survey method was utilised as part of the second phase of data collection. A total of 99 questionnaires were sent to all the middle managers identified. A word of caution was included to ensure that those who had responded via on-line need not respond to avoid duplication. The paper-based format consisted of a cover letter, consent form, questionnaire, and reply envelope.
These components were attached by a paper clip to ensure that they came out of the mailed packet simultaneously. For improved response rates, particular care was taken with the contents
of the cover letter, the appearance of questionnaire, the appearance of envelopes, and personalised communications for each individual.
The cover letter was placed in front and followed by the reply envelope, consent form, and questionnaire. A 7 1/2" x 10 1/2" brown craft business envelope was used to mail the survey
packet. The individual's name, together with the company name and address were directly
printed on the centre of the envelopes. Ninety nine packets were initially mailed out to the middle managers in TNB group of companies. As Dillman (1991) indicated, multiple contacts are very effective in increasing response rates for mail-based surveys. The survey packet included a self-addressed 4 1/8" x 9 1/2" envelope for respondents to return the completed questionnaires.
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One week after sending the survey packet, a thank you/reminder post card was sent to the 99 middle managers for responding in a timely manner or, otherwise, to remind them to complete and return the survey. A total of 50 questionnaires were returned from June 1 till July 15, 2005.
However, 13 questionnaires were rejected due to many unanswered items resulting in only the
remaining 37 questionnaires deemed as usable. In totality after the inclusion of the 15 on-line survey results, only 52 questionnaires were deemed as fit for further analysis. The unreturned questionnaires were followed up through phone calls and electronic mails however to no avail.
3.6
ANALYSIS OF DATA
Statistical Process for Social Science (SPSS) for Windows Version 12.0 was used as the main
tool for quantitative data analysis. The raw data was first fed to the SPSS system and subsequently coded and edited for further analysis. In order to answer the research questions, analysis were made on the sample characteristics of the dependent and independent variables as well as the moderators.
After conducting a series of reliability analysis on the collected data, data analysis continued with four primary methods
descriptive, variance, correlation, and multiple regression analysis.
Questions used to gather background information such as years of work experience, educational background, gender, and work unit used descriptive and variance analysis to
determine some simple statistical and comparative figures on the sample population. Descriptive statistics used measures of central tendency to provide basic understanding of the
questionnaire items. Data would be presented graphically by frequency tables and cross tabulation tables.
Parametric methods were used for the inferential analysis using alpha value of 0.05 for hypotheses testing. To perform the parametric tests, the five point Likert-scaled data was transformed to interval data using Terrell Transformation Technique (Terrell, 2000) using the following formula:
Transformed Score = [(actual raw score-lowest possible raw score)/possible raw score range] x100
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Hypothesis testing was performed for four types of analysis. They include single mean t-tests,
multiple regression, analysis of variance (ANOVA) and independent sample t-test, and correlation analysis. Single mean t-tests were used to measure the level of leadership styles and
leadership outcomes. Multiple regression analysis using dummy variables was used to determine if there was a linear relationship between dependent variables (leadership outcomes)
and two or more independent variables (leadership styles and demographic variables). ANOVA
was used to test "the equality of three or more population means by analysing sample variances" (Triola, 2000, p. 615). ANOVA has the advantage over the traditional t-test since it
can measure more than one single group-means simultaneously. Thus it was well suited for testing various types of leadership styles and outcomes.
The various techniques used to analyse the data were all parametric methods assuming a normally distributed population (Triola, 2000). Since the population sample was more than the
critical sample size of 30, a test for normal distribution would be carried out. Since many parametric tests require normally distributed variables, the one-sample Kolmogorov-Smirnov
test can be used to test whether the variables are normally distributed. The assumption of normality must be proven to ensure subsequent parametric analysis could be duly performed.
3.7
RELIABILITY TESTS
Scale reliability using Cronbach's coefficient alpha was then employed to assess the
consistency of homogeneity among items for each construct as well as for the overall questionnaire (Cooper and Schindler, 1988), whereby reliability coefficient above 0.90 for comparison among individual items and at least 0.70 for comparison among groups of items (Fraenkei, MIlen and Sawin, 1999) are considered as desirable.
3.8
FACTOR ANALYSIS
In order to further study interrelationships and to identify the strongest cluster of questionnaire
items related to middle managers' perception on leadership styles and outcomes, a factor
analysis was conducted. Construct validity using factor analysis was used to reduce and summarise data in which redundant items and inappropriate items were deleted (Hair et al.,
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1998). The study reports only those interrelationships with a correlation coefficient of .60, moderately high, or higher. The factor analysis used a principal component analysis as the extraction method and varimax with Kaiser normalisation rotation method to explain the item
variance. Only clusters of questionnaire items organised into components to standard eigenvalue of 1.000 were reported. The factor analysis will help to reduce the items measuring leadership styles and outcomes into a smaller number of factors that will account for most of the variance in the observed variables.
3.9
DESCRIPTIVE ANALYSIS
s t set of analysis focused on compilation of simple frequencies, percentages, and means The first
of the attributes of leadership styles and outcomes. The means and standard deviations were
calculated for each of the leadership factors and outcome factors for the overall sample. The mean is the index of central tendency and the standard deviation indicates the distance between
the values and the means of the values (Sproull, 1995). A higher score indicates a greater degree of perception of the leadership variable of the instructor being rated. Demographic questions relating to age, number of years working as a middle manager, number of employees, education and gender was analysed to obtain a good understanding of the sample.
3.10
HYPOTHESIS TESTING
A number of analysis using t-tests, correlation analysis, multiple regression analysis and analysis of variance were performed on the transformed data (now in interval form) which has
values that range from 0-100. In addition, the nominal and ordinal measurements from the demographic variable were included for the comparative analyses and the development of regression equations.
Each analysis took a different perspective on rejecting the null hypothesis based on comparing the p-value (written as sig. 1 or 2 tailed in most computer print-outs) from the SPSS output with 0.05 of which the null hypotheses would be rejected if the p-value were less than 0.05.
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3.10.1
Single Mean T-Tests
A series of one-tailed single mean t-tests was performed to assess the levels of the leadership styles based on the following research hypothesis:
Research Hypothesis 1: The leadership styles and outcomes are relatively high (one-tailed test, reject Ho if p 5 0.05).
Since the constructs are now in interval form with values ranging from 0 to 100.00, a midpoint of
50.00 (the assumed population mean, p) will be used as the test value for testing the hypotheses.
3.10.2 Correlation Analysis Correlation analysis is needed to reveal a positive correlation between constructs of leadership
styles and outcomes. A correlation is defined as a relationship between the dependent and
independent variables (Triola, 2000). Due to the availability of interval data, he Pearson correlation coefficient (r) was calculated using SPSS for the constructs of leadership styles and outcomes. The value of this coefficient (r) ranges between positive and negative one. According to Triola, (2000), the critical value of the Pearson correlation coefficient is 0.196 (for a = 0.05). If the absolute value of the computed r is above 0.196, the linear correlation is present. Otherwise,
absolute values of r close to zero and less than 0.196 accepted the null hypothesis (Triola,
2000). If the absolute r-value is above 0.196, then there is a mild correlation. A somewhat moderate correlation can be concluded if the absolute r-value is above 0.5. For absolute rvalues above 0.7, the correlation can be considered as strong.
This analysis assumed a linear relationship between the dependent (leadership outcome) and
independent variables (leadership styles).
In
addition, for each value of the constructs
representing leadership styles and outcomes, the assumption of normal distribution must be met first (Triola, 2000) to perform hypotheses testing based on the following research hypothesis:
Research Hypothesis 2: The leadership styles and outcomes are related (one-tailed test, reject Ho if p 5 0.05)
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By examining the correlation matrix, statistically significant associations are noted among the independent variables (leadership styles) and dependent variable (leadership outcome). These
associations may suggest multicollinearity which occurs when some of the independent variables are substantially correlated with each other. Subsequent tests for multicollinearity will be conducted in the regression analyses.
3.10.3
Multiple Regression Analysis
Once a simple correlation was established, multiple regression analysis determined if there were
specific leadership styles that attributed to leadership outcomes. According to Trivia (2000), multiple regression analysis is used to measure the linear relationship between a dependent
variable (leadership outcomes) and multiple independent variables (leadership styles and demographic variables). Using SPSS, the analysis produced a regression equation that would
indicate the leadership styles that impact outcomes. This equation would be in the following form: y = b. + bixi+b2x2+...bkxk. Each variable xn would denote the impact of an independent
variable or leadership style. Since there are dependent and independent variables as well as
moderators (i.e., demographic variables will function as dummy variables in the regression
model) identified in this study, various regression analyses were developed accordingly in conjunction with the following research hypothesis:
Research Hypothesis 3: Leadership outcomes can be predicted by leadership styles and the demographic background of the middle managers (two-tailed test, reject Ho if p 5 0.05)
In addition, multiple regression analysis also provided an adjusted coefficient of determination or
R2. This coefficient was used to measure how well the multiple regression equation fits the population sample (Triola, 2000). Adjusted coefficient of determination (R2) is between one and
zero, with one being a perfect fit. One of the flaws to be kept in mind is that a perfect fit can be achieved by using all variables. The relative increase of an adjusted R2 needs to be considered
when adding additional variables. The goal is to obtain the highest adjusted R2 with a minimal number of variables (Triola, 2000).
SPSS performed the analysis by using the "backward elimination" technique to find the "best"
regression model without examining all possible regressions (Hair et al., 1998). The
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independent variables were entered into the regression analysis simultaneously. The simultaneous strategy is most appropriate when there is no logical or theoretical basis for
considering one variable before another (Warmbrod, 1995). Multicollinearity tests were conducted by using Variance Inflation Factor (VIE) to determine if the independent variables are
correlated with each other or not. A VIF value of less than 5 implies the absence of multicollinearity (Hair et al., 1998). Warmbrod, (1995) suggested the usage of Principal Components Analysis for dealing with multicollinearity. A principal components analysis is used to reduce the set of independent variables into a smaller set of factors that are uncorrelated. The
uncorrelated factor(s) are then entered into the multiple regression analysis as the independent variable(s) (Warmbrod, 1995). This suggestion was applied in this research accordingly.
In addition to the adjusted R2, overall significance of a variable is defined by the p-value (Triola,
2000). In the multiple regression analysis, a p-value of less than 0.05 was desired. An ideal
significance for p-value is 0.000. This value, in combination with the adjusted coefficient of determination (R2), was used to determine the best multiple regression equation.
3.10.4 Analysis of Mean Differences There were a number of groups of respondents based on specific demographics. Some differed
in education, while others in gender and size of department. Independent sample t-tests and one-way analysis of variance (ANOVA) were used to determine the differences between various
groups. The independent sample t-test was used for groupings of two (e.g. gender), while the
ANOVA was used for groupings of more than two (e.g. level of education). Variance analysis assumed that the population distribution is normal and has the same variance while the samples were also random and independent of each other. Since there are nine14 demographic variables
(age group, number of employees in department, gender, function of department, level of education, years of working, field of specialisation, years of working as general manager and unit attached) used in this study, the following research hypothesis will be tested:
Research Hypothesis 4: There are differences in mean of leadership styles and outcomes based on the demographic background of the middle managers (two-tailed test, reject Ho if p 5. 0.05).
14 For some demographic variables such as unit attached, the groupings were consolidated into headquarters and subsidiaries in order to perform more meaningful analysis of mean differences.
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3.11
SUMMARY
This chapter introduced the research methodology that was used in this study. The quantitative research
utilised a questionnaire which was adapted from the Multifactor Leadership
Questionnaire (MLQ) Form 5x-Short (3rd Edition) developed by Bass and Avolio (2004). In
addition, the questionnaire included several demographic variables and an open ended question. The questionnaire was validated by a panel of experts and subsequently pilot tested to ensure that the instrument was fit for the survey on TNB middle managers.
The survey method was appropriate to elicit information from the population of interest in a
systematic and unbiased manner so that statistical analysis may be utilised to test the hypotheses of study and gain knowledge regarding the degree of influence of the leadership
styles and outcomes.
In
addition,
the case study method was utilised as per the
recommendations of Yin, (1994) due to the uniqueness of TNB as the biggest utility company in Malaysia.
Random sampling was utilised for this research. The sample size of 52 respondents from a
population of 99 middle managers represented an adequate number of participants for subsequent analysis. Tests of sampling adequacy were conducted and the results indicated that the sampling frame was sufficient.
Factor analysis based on principal component analysis as the extraction method and varimax
with Kaiser normalisation rotation method was used for statistical validity and to reduce the
items measuring leadership styles and outcomes into a smaller number of factors that will account for most of the variance in the observed variables. Reliability tests were utilised on the
Likert-scaled items using Cronbach's alpha. Reliability coefficients of at least 0.70 are considered as desirable for subsequent descriptive and inferential analyses. Table 3.3 presents
the research questions as well as the corresponding methods being applied and the research hypotheses respectively.
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Table 3.3:
Code
Summary of research questions, method and research hypothesis
Research Questions
RQ1
What leadership styles and outcomes are apparent among TNB middle managers?
RQ2
How do TNB middle managers rate their leadership styles and outcomes? What differences exist between the components of leadership styles and leadership outcomes based on TNB middle managers' demographic background?
RQ3
RQ4
What models would best predict the leadership outcomes based on the leadership styles and the TNB middle managers' demographic background?
W.A.R. Wan Razak
Research Hypothesis
Methods of Analysis Data collected will undergo factor analysis to eliminate redundant items and consolidate remaining items into logical components. Subsequently, reliability analysis was conducted to determine the statistical reliability of data collected. Descriptive analysis included percentages, means and standard deviations for each survey item was then presented in frequency tables. Descriptive aggregate data for survey items related to were tabulated.
The leadership styles and outcomes are relatively high (one-tailed p 5 0.05)
One-way ANOVA and independent sample t-tests were conducted to identify which demographic variables have influence on the components of leadership style and leadership outcomes.
There are differences in mean of leadership styles and on the outcomes based demographic background of
Spearman correlation was first conducted followed by multiple regressions with dummy variables using backward elimination method. Model that best predict leadership outcomes were determined based on assessment of R2and examination of 13 coefficients as well as measurement of variance inflation factor.
The leadership styles and outcomes are related (onetailed p 5 0.05)
90
middle managers tailed p 5 0.05) the
(two-
Leadership outcomes can be predicted by leadership styles and the demographic background of the middle managers (two-tailed p 5 0.05)
CHAPTER 4
FINDINGS
The purpose of this study was to investigate the leadership styles and outcomes among TNB middle managers using quantitative methods. In this chapter, findings of the data analysis for
the purpose of answering the four research questions will be presented. The quantitative analysis followed a logical sequence of methods beginning with factor analysis and reliability tests, followed by descriptive analysis and normality tests to ensure that data could be further
analysed. Subsequently, advanced parametric methods comprising of analyses of means as
well as correlation and regression analyses were conducted to address the four research questions accordingly. Finally, an analysis of the open ended questions was performed.
4.1
EXPLORATORY FACTOR ANALYSIS
For factor validity, an exploratory factor analysis was performed on the data to determine the
desired explanatory concepts. According to Petty (1995), "factor analysis is a technique for
achieving parsimony by identifying the smallest number of descriptive terms to explain the maximum amount of common variance in a component matrix" (p. 46). A principal axis factoring
was the chosen extraction method. Varimax with Kaiser Normalisation was applied prior to factor rotation, thus keeping factors with an eigenvalue of one or greater. According to Tinsley and Tinsley, (1987), this procedure is proven to be effective to eliminate error variance.
Within the context of this study, the exploratory factor analysis was used to further determine the number of attributes for the following variables: (1) transactional leadership; (2) transformational
leadership; (3) laissez faire; and (4) leadership outcomes; which are reflected in the loading patterns of the individual items on the attributes. Moreover, the resultant standardised factor
scores of the questionnaire items that used the five-point scale can be used in subsequent analysis. The 52 cases in the sample will be tested to determine if they are sufficiently large for
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conducting a single factor analysis using varimax rotation method with Kaiser normalisation and
principal component analysis. While there are some cross-loadings on the loading patterns, in general the loading patterns correspond with the pre-determined sets of item groupings. In the
factor analyses, factors were extracted when the eigenvalues are greater than 1. The factors extracted should explain more than 40% of the total variance, to imply that they are satisfactory solutions.
4.1.1
Exploratory Factor Analysis for Leadership Styles
Thirty six items representing transactional, transformational and passive leadership styles were
tested to determine the loading patterns. The thirty six items will be compared with the predetermined classifications presented in Table 3.2.
4.1.1.1 Measure of Sampling Adequacy and Population Variance
The high value of 0.473 for the Kaiser-Meyer-Olkin Measure of Sampling Adequacy indicates that the proportion of variance in the variables be caused by underlying factors thus allowing for
the application of factor analysis. This is supported by the Bartlett's test of sphericity value of 0.00 that is less than 0.05 thus proving that the analysis is significant (Table 4.1).
Table 4.1: KM0 and Bartlett's Test
Test
ChiApproquarex. S
Bartlett's Test of Sphericity
1013.520
Kaiser-Meyer-Olkin Measure of Sampling Adequacy
df
Sig.
630
.000
.473
Table 4.2 shows the proportion of variance accounted for in each item by the rest of the other
items. Since all of the values obtained are more than 0.4, the extraction communalities using principal component analysis for this solution are acceptable.
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Table 4.2: Communalities Leadership Style Attributes
No
Initial
Extraction
,
1
To give assistance to those who are making an effort/trying hard
.799
.471
2
To re-examine important assumptions to question to determine whether they are appropriate
.823
.651
3
To interfere when problems become complicated
.782
.616
4
To focus on problems that are irregular, exceptions, mistakes and deviations from standard procedures
.800
.558
5
To avoid interfering in important problems that occur
.813
.713
6
To focus on values and beliefs I am most adamant about
.486
.405
7
To have a tendency not to be in office when needed
.881
.681
8
To look at all aspects of a problem before solving it
.630
.617
9
To speak about the future in an optimistic way
.802
.666
10
To make people who work with me feel a sense of pride
.888
.902
11
To clearly state who will be responsible for all operations in order to be successful in achieving goals
.825
.618
12
To wait for a problem to occur before getting involved
.666
.498
13
To talk about issues that must be resolved in an enthusiastic manner
.799
.623
14
To stress the importance of having a strong sense of purpose
.861
.536
15
To spend time teaching and giving continuous instruction
.787
.699
16
To illustrate to everyone what the rewards of success will be
.812
.652
17
To express the belief that "if it isn't broken, leave it alone"
.699
.513
18
To think for the good of the group rather than self-interest
.882
.698
19
To treat others as important individuals rather than just as members of a group
.814
.517
20
To show that I solve problems before they become chronic
.900
.687
21
To act in a manner that earns the respect of others
.802
.627
22
To devote my full attention to correcting mistakes, complaints and failures
.843
.768
23
To consider the moral and ethical aspects before making decisions
.735
.649
24
To keep track of all mistakes that occur
.758
.692
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25
To display a sense of power and confidence
.723
.431
26
To emphasise the need to communicate a clear vision of the future
.919
.832
27
To place importance on various failures in management to meet standards
.810
.980
28
To avoid making decisions
.891
.619
29
To be always aware that individuals have different needs, abilities, strengths and aspirations
.896
.709
30
To get others to look at problems from many angles
.839
.702
31
To assist people in developing their abilities
.916
.663
32
To suggest new ways to successfully complete assignments
.768
.635
33
To delay answering questions that are urgent
.815
.537
34
To stress the importance of a collective understanding of the significance of a mission
.771
.544
35
To illustrate satisfaction when others meet expectations
.815
.630
36
To express confidence in my ability to meet goals
.914
.789
Extraction Method: Principal Axis Factoring.
4.1.1.2 Factor Loading
Based on Table 4.3, the leftmost section shows the variance explained by the initial solution. Only 11 factors in the initial solution have eigenvalues greater than 1. This suggests that eleven
latent influences are associated, but there remains room for a lot of unexplained variation. The
second section of this table shows the extraction sums of squared loadings. The cumulative variability explained by these 11 factors in the extracted solution accounts for 64.103% of the
variability in the original variables. This high value implies the suitability of methods for extraction.
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Table 4.3:
Extraction Method Using Principal Axis Factoring
Initial Eigenva ues Total
% of Variance
1
8.663
2
3.190
3
Extraction Sums of Squared Loadings
Cumulative %
Total
% of Variance
Cumulative %
24.063
24.063
8.322
23.118
23.118
8.861
32.924
2.889
8.024
31.142
2.536
7.044
39.968
2.178
6.050
37.192
4
2.209
6.136
46.104
1.828
5.077
42.269
5
1.927
5.352
51.456
1.631
4.531
46.800
6
1.905
5.291
56.747
1.541
4.280
51.080
7
1.563
4.342
61.090
1.208
3.356
54.436
8
1.384
3.846
64.935
.969
2.692
57.128
9
1.272
3.535
68.470
.936
2.600
59.728
10
1.203
3.342
71.812
.851
2.363
62.091
11
1.073
2.979
74.792
.724
2.012
64.103
12
.999
2.776
77.567
13
.851
2.365
79.932
14
.821
2.280
82.212
15
.740
2.054
84.266
16
.657
1.825
86.091
17
.605
1.680
87.771
18
.588
1.634
89.405
19
.525
1.459
90.864
20
.451
1.253
92.117
21
.396
1.099
93.215
22
.353
.980
94.195
23
.337
.936
95.131
24
.293
.813
95.944
25
.266
.738
96.682
26
.234
.650
97.331
27
.187
.520
97.851
28
.176
.486
98.337
29
.162
.451
98.788
30
.116
.321
99.109
31
.096
.265
99.374
32
.077
.213
99.587
33
.052
.143
99.730
34
.044
.121
99.851
35
.037
.103
99.954
36
.017
.046
100.000
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Thirty six items are loaded into eleven factors (refer Table 4.4). Six items were deemed as redundant and were excluded. These 11 factors are compared with the original groupings identified initially (refer Table 3.2). The first factor can be classified as transformational
leadership style and evolves around the following 13 items:
To re-examine important assumptions to question to determine whether they are appropriate
To speak about the future in an optimistic way To make people who work with me feel a sense of pride To talk about issues that must be resolved in an enthusiastic manner To stress the importance of having a strong sense of purpose To think for the good of the group rather than self-interest To treat others as important individuals rather than just as members of a group To act in a manner that earns the respect of others
To consider the moral and ethical aspects before making decisions To emphasise the need to communicate a clear vision of the future
To be always aware that individuals have different needs, abilities, strengths and aspirations
To get others to look at problems from many angles To assist people in developing their abilities
The second factor can be classified as transactional leadership style and evolves around the following 7 items:
To interfere when problems become complicated
To clearly state who will be responsible for all operations in order to be successful in achieving goals To show that I solve problems before they become chronic To devote my full attention to correcting mistakes, complaints and failures To keep track of all mistakes that occurs
To place importance on various failures in management to meet standards To illustrate satisfaction when others meet expectations
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The third factor can be classified as passive leadership style and evolves around the following 2 items:
To have a tendency not to be in office when needed
To avoid making decisions
Table 4.4: Rotated Factor Matrix - Varimax with Kaiser Normalisation
Component No.
Attributes 1
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
To give assistance to those who are making an effort/trying hard (CR) To re-examine important assumptions to question to determine whether they are appropriate (IS) To interfere when problems become complicated (MBEP)
2
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6
7
8
9
.545
.511
To focus on problems that are irregular, mistakes & deviations from standard procedures (MBEA) To avoid interfering in important problems that occur (LF) To focus on values and beliefs I am most adamant about (IIB) To have a tendency not to be in office when needed (LF) To look at all aspects of a problem before solving it (IS)
To speak about the future in an optimistic way (IM) To make those who work with me feel a sense of pride (IA) To clearly state who will be responsible for all operations to be successful in achieving goals (CR) To wait for a problem to occur before getting
4
3
.493
.535
-.436
.424
.514
.559
97
10
11
13.
14.
15.
involved (MBEP) To talk about issues that must be resolved in an enthusiastic manner (IM) To stress the importance of having a strong sense of purpose (IIB) To spend time teaching and giving continuous instruction (IC)
16.
To illustrate to everyone what the rewards of success will be (CR)
17.
To express the belief that "if it isn't broken, leave it alone" (MBEP)
18.
19.
To think for the good of the group rather than self-interest (IIA) To treat others as important individuals rather than just as a group member (IC)
20.
To show that I solve problems before they become chronic (MBEP)
21.
To act in a manner that earns the others' respect (IIA)
22.
23.
24.
25.
26.
To devote my full attention to correcting mistakes, complaints and failures (MBEA) To consider the moral/ethical aspects before making decisions (IIB) To keep track of all mistakes that occur (MBEA) To display a sense of power and confidence (IIA) To emphasise the need to communicate a clear vision of the future (IM)
27.
To place importance on various failures in management to meet standards (MBEA)
28.
To avoid making decisions (LF)
29 .
To be always aware that iindividuals have different
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.598
.597
.580
.480
.405
.477
.526
.743
.542
.584
.721
.679
.460
714
98
needs, abilities, strengths and aspirations (IC) 30.
31.
32.
33.
34.
To get others to look at problems from many angles (IS) To assist people in developing their abilities (IC) To suggest new ways to successfully complete assignments (IS) To delay answering questions that are urgent (LF) To stress the importance of a collective understanding of the significance of a mission
.670
.706
.604
.427
.648
(IIB) 35.
36.
To illustrate satisfaction when others meet expectations (CR) To express confidence in ability to meet goals (IM) TOTAL
.634
.752
13
7
1
1
1
2
1
1
1
1
1
Several "single-itemed" factors were uncovered in the factor analysis: Factor 3:
To look at all aspects of a problem before solving it
Factor 4:
To spend time teaching and giving continuous instruction
Factor 5:
To delay answering questions that are urgent
Factor 7:
To illustrate to everyone what the rewards of success will be
Factor 8:
To suggest new ways to successfully complete assignments
Factor 9: To avoid interfering in important problems that occurs Factor 10: To stress the importance of a collective understanding of the significance of a mission Factor 11: To express confidence in my ability to meet goals
In cases where some components have only one or two items, techniques of consolidation as
proposed by Wan Jusoh, (1999) were utilised. After consolidation and with reference to the original classification (refer Table 3.2), three major factors of leaderships were uncovered from this research:
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A.
Transformational leadership style To re-examine important assumptions to question to determine whether they are appropriate (Factor 1) To speak about the future in an optimistic way (Factor 1) To make people who work with me feel a sense of pride (Factor 1) To talk about issues that must be resolved in an enthusiastic manner (Factor 1)
To stress the importance of having a strong sense of purpose (Factor 1) To think for the good of the group rather than self-interest (Factor 1)
To treat others as important individuals rather than just as members of a group (Factor 1)
To act in a manner that earns the respect of others (Factor 1) To consider the moral and ethical aspects before making decisions (Factor 1) To emphasise the need to communicate a clear vision of the future (Factor 1)
To be always aware that individuals have different needs, abilities, strengths and aspirations (Factor 1)
To get others to look at problems from many angles (Factor 1) To assist people in developing their abilities (Factor 1) To look at all aspects of a problem before solving it (Factor 3) To spend time teaching and giving continuous instruction (Factor 4) To spend time teaching and giving continuous instruction (Factor 8)
To stress the importance of a collective understanding of the significance of a mission (Factor 10)
To express confidence in my ability to meet goals (Factor 11)
B.
Transactional leadership style 1
To interfere when problems become complicated (Factor 2)
To clearly state who will be responsible for all operations in order to be successful in achieving goals (Factor 2) To show that I solve problems before they become chronic (Factor 2)
To devote my full attention to correcting mistakes, complaints and failures (Factor 2)
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To keep track of all mistakes that occurs (Factor 2)
To place importance on various failures in management to meet standards (Factor 2)
To illustrate satisfaction when others meet expectations (Factor 2) To illustrate to everyone what the rewards of success will be (Factor 7)
C.
Passive Leadership 1
To delay answering questions that is urgent (Factor 5) To have a tendency not to be in office when needed (Factor 6) To avoid making decisions (Factor 6)
To avoid interfering in important problems that occurs (Factor 9)
4.1.2
Exploratory Factor Analysis for Leadership Outcomes
Ten items representing leadership outcomes were tested to determine the loading patterns. The 10 items will be compared with the predetermined classifications presented in Table 3.2.
4.1.2.1 Measure of Sampling Adequacy and Population Variance
The high value of 0.804 for the Kaiser-Meyer-Olkin Measure of Sampling Adequacy indicates that the proportion of variance in the variables be caused by underlying factors thus allowing for
the application of factor analysis. This is supported by the Bartlett's test of sphericity value of 0.00 that is less than 0.05 thus proving that the analysis is significant (Table 4.5).
Table 4.5: KMO and Bartlett's Test Test
Approx. ChiSquare
df
Sig.
203.206
45
.000
Bartlett's Test of Sphericity Kaiser-Meyer-Olkin Measure of Sampling Adequacy
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101
Table 4.6 shows the proportion of variance accounted for in each item by the rest of the other
items. Since all of the values obtained are more than 0.4, the extraction communalities using principal component analysis for this solution are acceptable.
Table 4.6: Communalities
Leadership Outcomes Attributes
No
Initial
Extraction
1
To respond effectively to the job-related needs of others
.487
.426
2
To use leadership methods that produce satisfactory results
.542
.651
3
To make others work beyond their own expectations
.437
.412
4
To effectively represent my group with superiors
.465
.465
5
To ensure that others are satisfied working with me
.421
.545
6
To inspire others to desire more success
.584
.620
7
To work effectively according to the organisational needs
.492
.453
8
To encourage others to be willing to try harder
.659
.594
9
To lead an effective group
.555
..510
10
To provide facilities that promote satisfaction with the leadership
.458
.424
4.1.2.2 Factor Loading
Based on Table 4.7, the leftmost section shows the variance explained by the initial solution. Only 2 factors in the initial solution have eigenvalues greater than 1. This suggests that 2 latent influences are associated, but there remains room for a lot of unexplained variation. The second
section of this table shows the extraction sums of squared loadings. The cumulative variability explained by these 11 factors in the extracted solution accounts for 47.898% of the variability in the original variables. This high value implies that the suitability of methods for extraction.
Table 4.7: Extraction Method Using Principal Axis Factoring .
,
Extraction Sums of Squared Loadings
Initial Eigenvalues ' Total
% of Variance
Cumulative %
Total
% of Variance
Cumulative %
1
4.666
46.658
46.658
4.165
41.646
41.646
2
1.122
11.223
57.882
.625
6.252
47.898
3
.890
8.904
66.785
4
.822
8.215
75.001
5
.677
6.769
81.769
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6
.602
6.020
87.789
7
.390
3.902
91.691
8
.347
3.473
95.164
9
.290
2.901
98.065
10
.193
1.935
100.000
The ten items are loaded into 2 factors (refer Table 4.8). Since there is a one-itemed factor, all
tern items were consolidated as recommended by Wan Jusoh (1999). These ten items were classified as leadership outcomes.
Table 4.8: Rotated Factor Matrix - Varimax with Kaiser Normalisation
Factor
Leadership Outcomes Attributes
2
1
1.
To respond effectively to the job-related needs of others
.648
2.
To use leadership methods that produce satisfactory results
.709
3.
To make others work beyond their own expectations
4.
To effectively represent my group with superiors
5.
To ensure that others are satisfied working with me
6.
To inspire others to desire more success
.758
7.
To work effectively according to the organisational needs
.666
8.
To encourage others to be willing to try harder
.770
9.
To lead an effective group
.578
To provide facilities that promote satisfaction with the leadership
.588
10.
4.2
.672 .536
RELIABILITY TESTS
A series of reliability tests was conducted on the four constructs. The reliability coefficients for transformational leadership, transactional leadership,
passive leadership and leadership
outcomes are 0.863, 0.709, 0.494 and 0.860 respectively (Table 4.9). Though the Cronbach's
alpha for passive leadership is below the cut-off point of 0.70 as recommended by Nunnally (1978), the 'low' value of 0.494 for passive leadership is still within the lower range of around 0.5
and can still be considered as acceptable (George and Mallery, 2003). Upon comparison with
similar studies using MLQ Form 5X-Short, the reliability analyses conducted in this study is deemed as comparable to studies by Woodrum and Safrit (2003) and Srisilpsophon (1999).
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Table 4.9:
Results of Reliability Tests
Variable
a value Variable Name
No.
Transformational
1
No. of Items
18
Variable Name
Transform
Variable Label
IS 1-4 IM 1-4 IIA 1-3
Current Study
Woodrum & Safrit (2003)
Srisilpsophon (1999)
0.863
0.688
0.7707 0.7568 0.7476 0.7119 0.7012
11B2-4
IC 1-4 2
Transactional
8
Transact
MBEP1&4 CR 2-4 MBEA 2-4
0.709
0.543
0.6202 0.6950 0.5740
3
Passive
4
Passive
LF 1-4
0.494
0.433
0.7767
4
Outcomes
10
Outcomes
EE 1-3 E 1-4
0.860
S1-3
4.3
0.6318 0.8226 0.7406
DESCRIPTIVE ANALYSIS
Descriptive analysis of data collected will primarily use frequency tables with frequencies and
percentages as well as means and standard deviations for attributes of constructs from the questionnaire. In order to determine the relative degree of impact middle managers had on a particular item, a series of mean and standard deviation analysis was conducted. Based on the five-point scale used in the questionnaire, a mean of closer to 5 would indicate a higher level of
agreement while a smaller standard deviation would illustrate that the response has low variability among the respondents.
4.3.1
Descriptive Analysis of the Demographic Background of TNB Middle Managers
The descriptive analysis of the data collected illustrated the diverse background of respondents
even though they originated from various units in TNB. Based on Table 4.10, most of the respondents are more than 51 years old, are male engineers with more than 15 years of working experience, in charge of more than 41 employees and have been promoted as middle
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management within the past 2-4 years while working in the subsidiaries. A majority of the respondents function within the non-engineering departments.
Descriptive Analysis of the Demographic Background of TNB Middle Managers
Table 4.10:
Frequency
Demographic Factor
Percent
Age Group 47.1
Below 50 years
24
?.51 years
27
52.9
Total
51
100.0
1-10 employees
7
13.5
11-20 employees
9
17.3
21-30 employees
7
13.5
31-40 employees
4
7.7
a 41 employees
25
48.1
Total
52
100.0
Female
12
23.1
Male
40
76.9
Total
52
100.0
Engineering
23
44.2
Non Engineering
29
55.8
Total
52
100.0
Undergraduate
20
38.5
Postgraduate/Professional
32
61.5
Total
52
100.0
More than 15 years
51
100.0
Total
51
100.0
Engineering
35
72.9
Non Engineering
17
27.1
Total
52
100
Number of Employees in Department
Gender
Function of Department
Level of Education
Years of Working
Field of Specialisation
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Years of Working as General Manager Less than 2 years
12
26.1
Between 2-4 years
13
28.3
Between 4-6 years
10
21.7
Above 6 years
11
23.9
Total
52
100.0
Head Office
19
37.3
Subsidiaries
32
62.7
Total
51
100.0
Unit Attached
4.3.2
Analysis of Transformational Leadership Styles Using Mean and Standard Deviation
Among the eighteen attributes of transformational leadership styles, the item to make people who work with me feel a sense of pride has the highest mean and lowest standard deviation of
4.692 and 0.4660 respectively. The lowest mean and highest standard deviation of 3.865 and 0.8863 respectively, is for item to spend time teaching and giving continuous instruction. Table 4.11 presents the findings.
Table 4.11:
Descriptive Analysis of Transformational Leadership Attributes
Mean
Attributes of Transformational Leadership Styles ,
No
...
Std.
ueviation
1.
To spend time teaching and giving continuous instruction
52
3.865
.8863
2.
To consider the moral and ethical aspects before making decisions
52
4.135
.7148
3.
To talk about issues that must be resolved in an enthusiastic manner
52
4.192
.6274
4.
To get others to look at problems from many angles
52
4.212
.6367
52
4.231
.7034
5.
To treat others as important individuals rather than just as members of a group
6.
To look at all aspects of a problem before solving it
52
4.269
.7950
7.
To express confidence in my ability to meet goals
52
4.269
.5282
52
4.280
.5360
52
4.288
.5718
8. 9.
To re-examine important assumptions to determine whether they are appropriate To suggest new ways to successfully complete assignments
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10.
To stress the importance of a collective understanding of the significance of a mission
52
4.288
.5718
11.
To speak about the future in an optimistic way
52
4.365
.5950
52
4.423
.5367
12.
To be always aware that individuals have different needs, abilities, strengths and aspirations
13.
To act in a manner that earns the respect of others
52
4.423
.6370
14.
To assist people in developing their abilities
52
4.481
.5420
15.
To stress the importance of having a strong sense of purpose
52
4.500
.5423
16.
To emphasise the need to communicate a clear vision of the future
52
4.558
.5392
17.
To think for the good of the group rather than self-interest
52
4.558
.5015
18.
To make people who work with me feel a sense of pride
52
4.692
.4660
4.3.3
Analysis of Transactional Leadership Styles Using Mean and Standard Deviation
Among the eight attributes of transactional leadership styles, the item to clearly state who will be
responsible for all operations in order to be successful in achieving goals has the highest mean
and lowest standard deviation of 4.596 and 0.5336 respectively. The lowest mean and highest
standard deviation of 3.135 and 0.9484 respectively, is for item to devote my full attention to correcting mistakes, complaints and failures. Table 4.12 presents the findings.
Table 4.12:
Descriptive Analysis of Transactional Leadership Attributes
No.
Attributes of Transactional Leadership Styles
N
Mean
Std.
Deviation
1.
To devote my full attention to correcting mistakes, complaints and failures
52
3.135
.9484
2.
To keep track of all mistakes that occur
52
3.327
.9229
3.
To place importance on various failures in management to meet standards
52
3.471
.9023
4.
To interfere when problems become complicated
51
3.961
.9790
5.
To show that! solve problems before they become chronic
52
3.962
.8156
6.
To illustrate to everyone what the rewards of success will be
52
4.019
.6713
7.
To illustrate satisfaction when others meet expectations
52
4.346
.5561
52
4.596
.5336
8.
To clearly state who will be responsible for all operations in order to be successful in achieving goals
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4.3.4
Analysis of Passive Leadership Styles Using Mean and Standard Deviation
Among the four attributes of passive leadership, the item to avoid interfering in important problems that occur has the highest mean and highest standard deviation of 2.173 and 1.1500 respectively. The lowest mean and lowest standard deviation of 1.423 and 0.8248 respectively is for item to avoid making decisions. Table 4.13 presents the findings.
Table 4.13:
Descriptive Analysis of Passive Leadership Attributes
No
Attributes of Passive Leadership Styles
N
Mean
Std.
Deviation
1.
To avoid making decisions
52
1.423
.8248
2.
To have a tendency not to be in office when needed
52
1.442
.9785
3.
To delay answering questions that are urgent
52
1.577
.8932
4.
To avoid interfering in important problems that occur
52
2.173
1.1500
4.3.5
Analysis of Leadership Outcomes Using Mean and Standard Deviation
Among the ten attributes of leadership outcomes, the item to lead an effective group has the highest mean and third lowest standard deviation of 4.500 and 0.5423 respectively. The lowest mean and highest standard deviation of 4.000 and 0.7670 respectively is for item to make others work beyond their own expectations. Table 4.14 presents the findings.
Table 4.14:
No.
Descriptive Analysis of Leadership Outcomes Attributes
Attributes of Leadership Outcomes
N
Mean
Std. Deviation
1.
To make others work beyond their own expectations
52
4.000
.7670
2.
To respond effectively to the job-related needs of others
52
4.173
.4737
3.
To ensure that others are satisfied working with me
52
4.212
.6367
4.
To provide facilities that promote satisfaction with the leadership
51
4.255
.5601
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5.
To use leadership methods that produce satisfactory results
52
4.327
.5848
6.
To effectively represent my group with superiors
52
4.404
.6026
7.
To inspire others to desire more success
52
4.423
.5367
8.
To encourage others to be willing to try harder
52
4.442
.5015
9.
To work effectively according to the organisational needs
52
4.462
.5409
10.
To lead an effective group
52
4.500
.5423
4.4
NORMALITY TESTS
Since the data collected has demonstrated statistical validity and reliability, the ordinal data for
each of the 4 constructs were combined and transformed into interval data using Terrell Transformationalation technique (Terrell, 2000). The Kolmogorov-Smirnov (KS) statistic, with a
Lilliefors significance level for testing normality was used to determine if the 4 constructs are normally distributed or not. If they are of normal distribution, then parametric analysis could be performed accordingly. Based on data from Table 4.15, the 12 constructs demonstrated normal distribution whereby the p-values are all above 0.05.
Table 4.15:
Analysis of Leadership Styles and Outcomes Using Normality Tests
Constructs
KolmogorovSmirnov Z
13-
value
Std. Deviation
Mean
Transactional
1. 127
0.238
11.68811
70.8534
Transformational
1.216
0.104
8.47746
83.1464
Laissez Faire
1.471
0.503
15.26692
16.3462
Outcomes
1.240
0.109
9.69561
82.9902
Due to the normality of the distribution of data collected, subsequent parametric inferential analyses such as one-sample t-test, independent sample t-test, one-way ANOVA, correlation and multiple regressions were made possible.
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4.5
SINGLE MEAN 1-TESTS ON LEADERSHIP STYLES AND OUTCOMES
A series of single mean t-tests was conducted to test the research hypothesis whether the leadership styles and outcomes are relatively high. Based on Table 4.16, three null hypotheses are tested:
mean level of Laissez Faire Style > 50.00 (above average)
mean level of Transactional Leadership Style < 50.00 (below average) mean level of Transformational Leadership Style < 50.00 (below average) Ho2: mean level of Leadership Outcomes <50.00 (below average)
With reference to Table 4.16, all four null hypotheses could be rejected as the p-values are
0.000 and less than 0.05. Upon further analysis, only Laissez Faire has a negative mean difference thus implying that the level of Laissez Faire leadership style is low among TNB middle
managers, whilst at the same time of transactional and transformational leadership styles as well as leadership outcomes all indicate high levels of means.
Table 4.16:
Analysis of Leadership Styles and Outcomes Using Single Mean 1-Tests
Test Value = 50
Constructs
dl
t ,
: Sig . ' (1 tailed)
Mean
Mean
Difference
95% Confidence Interval of the Difference
Lower
Upper
Laissez Faire
-15.896
51
.000
16.34615
-33.65385
-37.9042
-29.4035
Transactional
12.866
51
.000
70.85337
20.85337
17.5994
24.1074
Transformational
28.195
51
.000
83.14637
33.14637
30.7862
35.5065
Outcomes
24.299
50
.000
82.99020
32.99020
30.2633
35.7171
4.6
INDEPENDENT SAMPLE 1-TEST AND ANOVA
A series of independent sample t-tests and ANOVA was conducted to assess the hypotheses whether there was any difference in mean for the leadership styles and outcomes based on the
following demographic variables: function of department, highest level of education, field of specialisation and unit attached. As such, four null hypotheses were tested accordingly:
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there is no difference in means of leadership styles and outcomes based on function of department
there is no difference in means of leadership styles and outcomes based on highest level of education
there is no difference in means of leadership styles and outcomes based on field of specialisation
there is no difference in means of leadership styles and outcomes based unit attached.
4.6.1
Function of Department
With reference to Table 4.17, transactional is the only construct that has a p-value of that is less
than 0.05. Thus there is difference in mean for transactional leadership style based on function of department, i.e., engineering or non-engineering. P-values for transformational, laissez faire and outcome are 0.860, 0.90 and 0.925 respectively.
Table 4.17:
Independent Samples Test for Function of Department t-test for Equality of Means
Construct
Assumption on Variance
t
df
Sig. (2-
Mean
tailed)
Difference
Std. Error Difference
Transactional
Equal variances assumed
2.642
50
.011
8.1569
3.0875
Transformational
Equal variances assumed
.177
50
.860
.4227
2.3898
Laissez Faire
Equal variances assumed
-1.730
50
.090
-7.2339
4.1819
Outcomes
Equal variances assumed
.095
49
.925
.2625
2.7688
Upon review of data from Table 4.18, it is apparent that middle managers who are based in the
non-engineering department has a higher level (mean = 74.4612) of transactional leadership
qualities than those from the engineering department (mean = 66.3043). For the other constructs, there is insufficient evidence to show that there is difference in mean based on function of department.
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Table 4.18:
Group Statistics for Function of Department
Construct
Function of Department
Mean ,
Std.
Std. Error
Deviation
Mean
Non-engineering
29
74.4612
10.6325
1.9744
Engineering
23
66.3043
11.5766
2.4139
Non-engineering
29
83.3333
9.4199
1.7492
Engineering
23
82.9106
7.3186
1.5260
Non-engineering
29
13.1466
16.0517
2.9807
Engineering
23
20.3804
13.4863
2.8121
Non-engineering
29
83.1034
10.0146
1.8597
Engineering
22
82.8409
9.4898
2.0232
Transactional
Transformational
Laissez Faire
Outcomes
4.6.2
Highest Level of Education
With reference to Table 4.19, transformational and outcome are the only constructs which have
p-values which are lower than 0.05. Thus there is difference in mean for transformational leadership style and
leadership outcome based on highest level of education, i.e.,
undergraduate or postgraduate/professional. P-values for transactional and laissez faire are 0.656 and 0.572 respectively.
Table 4.19: Independent Samples Test for Highest Level of Education t-test for Equa ity of Means
Construct
Assumption on Variance
Df
Sig. (2 - - Mean tailed) Difference
' Std Error .
Difference
it
f
Transactional
Equal variances assumed
.448
50
.656
5.3309
11.8957
Transformational
Equal variances assumed
2.594
50
.012
21.0512
8.1166
Laissez Faire
Equal variances assumed
-.569
50
.572
-8.8235
15.5192
Outcome
Equal variances assumed
3.168
49
.003
28.5500
9.0115
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Upon review of data from Table 4.20, it is apparent that middle managers who have undergraduate education has a higher level (mean = 83.5512) of transformational leadership qualities than those having postgraduate/professional education (mean = 62.5000).For the other
constructs, there are insufficient evidence to show that there is difference in mean based on function of department.
Table 4.20: Group Statistics for Highest Level of Education
' Construct
Highest Level of Education
N
Mean
L ztd. Deviation
Std:Errot
i'
Mean
Undergraduate
20
70.9559
11.7808
1.6496
Postgraduate/Professional
32
65.6250
10.2341
1.5620
Undergraduate
20
83.5512
8.0382
1.1256
Postgraduate/Professional
32
62.5000
12.2347
2.1147
Undergraduate
20
16.1765
11.3692
2.1521
Postgraduate/Professional
32
25.0000
13.2398
1.6549
Undergraduate
20
83.5500
8.9227
1.2619
Postgraduate/Professional
32
55.0000
9.4509
1.4091
Transactional
Transformational
Laissez Faire
Outcomes
4.6.3
Field of Specialisation
With reference to Table 4.21, none of the constructs has a p-value of that is lower than 0.05.
Thus there is insufficient evidence to show that there is difference in mean based on field of specialisation.
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Table 4.21: Independent Samples Test for Field of Specialisation
,
Construct
Assumption on Variance ,
I
t
t-test for Ecuality of Means . Sig. (2- Mean , Std. Error Diff Df Duff tailed)
Transactional
Equal variances assumed
.901
46
.372
3.3516
3.7196
Transformational
Equal variances assumed
-.843
46
.404
-2.2131
2.6253
Laissez Faire
Equal variances assumed
-1.890
46
.065
-9.1896
4.8615
Outcomes
Equal variances assumed
-.679
45
.501
-2.1380
3.1493
Upon review of data from Table 4.22, it is apparent that there is insufficient evidence to show that there is significant difference in mean based on field of specialisation.
Table 4.22:
Group Statistics for Field of Specialisation
Constilict
Field of Specialisation ,
Transactional
Transformational
Laissez Faire
Outcomes
4.6.4
4,
_Mean
StdiDeViation
Std. Error Mean
=z
Humanities
17
73.7981
12.0044
3.3294
Technical
35
70.4464
11.2506
1.9017
Humanities
17
81.5171
9.7120
2.6936
Technical
35
83.7302
7.4228
1.2547
Humanities
17
10.0962
9.3883
2.6039
Technical
35
19.2857
16.4922
2.7877
Humanities
17
81.5385
8.2625
2.2916
Technical
35
83.6765
10.1174
1.7351
Unit Attached
With reference to Table 4.23, none of the constructs has a p-value of that is lower than 0.05. Thus there is insufficient evidence to show there is difference in mean based on unit attached.
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Table 4.23:
Independent Samples Test for Unit Attached
t-test for Equality of Means Assumption on Variance
Construct
Of
Sig. (2-
Mean
tailed)
Diff
Std. Error Diff 1
Transactional
Equal variances assumed
-.386
49
.702
-1.9792
5.1335
Transformational
Equal variances assumed
-.381
49
.705
-1.3735
3.6020
Laissez Faire
Equal variances assumed
1.071
49
.289
7.0833
6.6143
Outcomes
Equal variances assumed
-.300
48
.765
-1.2500
4.1652
Upon review of data from Table 4.24, it is apparent that there is insufficient evidence to show that there is significant difference in mean based on unit attached.
Table 4.24:
Group Statistics for Unit Attached
Construct
Std. Error
Unit Attached
N
Mean
Std. Deviation
Head office
19
70.4167
10.5470
1.5723
Subsidiaries
32
72.3958
19.7065
8.0451
Head office
19
82.6543
8.2891
1.2357
Subsidiaries
32
84.0278
8.2753
3.3784
Head office
19
17.5000
15.3441
2.2874
Subsidiaries
32
10.4167
14.0683
5.7434
Head office
19
82.5000
9.4315
1.4219
Subsidiaries
32
83.7500
10.6946
4.3661
Mean
Transactional
Transformational
Laissez Faire
Outcomes
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4.7
CORRELATION ANALYSIS
Parametric methods known as Pearson Correlation were used for analysis whereby leadership
styles (i.e., Transactional, Transformational and Laissez Faire) were tested for correlation against leadership outcomes. Based on Table 4.25, three null hypotheses were tested for their correlation:
Ho1: There is no correlation between transactional leadership and outcomes Ho1: There is no correlation between transformational leadership and outcomes Ho1: There is no correlation between laissez faire and outcomes
Table 4.25:
Correlations
Constructs
TRANSACT TRANSFORM
-.321*
.425*
.000
.020
.002
52
52
52
51
.520**
1.000
-.327**
.821**
.000
.
.018
.000
52
52
52
51
-.321*
-.327*
1.000
-.237*
.020
.018
.
.044
52
52
52
51
Pearson Correlation
.425"
.821**
-.237*
1.000
Sig. (2-tailed)
.002
.000
.044
.
51
51
51
51
Sig. (2-tailed) N
Pearson Correlation
Transformational
Sig. (2-tailed) N
Pearson Correlation
Laissez Faire
Sig. (2-tailed) N
Outcomes
OUTCOME
.520"
Pearson Correlation Transactional
LAISSEZ FAIRE
N
1.000 .
Correlation is significant at the 0.01 level (2-tailed). * Correlation is significant at the 0.05 level (2-tailed).
The data from Table 4.25 confirmed that the three leadership styles have varying significant correlation with leadership outcomes. All three correlation analyses resulted in p-values which are lesser than 0.05. As expected, there is a very strong positive correlation of 0.821 between
Outcomes and Transformational. On the other hand there is a strong positive correlation of
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0.425 between Outcomes and Transactional. Finally, there is weak negative correlation between Outcomes and Laissez Faire.
4.8
REGRESSION ANALYSIS
In this study, regression analysis was used to determine which variables had significant impact
on leadership outcomes. According to Hair et al. (1987), "multiple regression analysis is a general statistical technique used to analyse the relationship between a single dependant variable and several independent variables" (p.17). Two outcomes are useful in interpreting the
relationship. First, R2 indicates the amount of variance in the dependent variable predicted by the independent variables. Second, the regression indicates which variables have a statistically significant influence on the dependent variable (Hair et al., 1987).
The literature revealed leadership styles should impact leadership outcomes. The variables uncovered by the factor analyses were: transactional leadership, transformational leadership,
laissez faire and leadership outcomes. Several demographic variables were also included as
dummy variables in the regression analyses, i.e.: function of department, highest level of education, field of specialisation and unit attached. Altogether, the seven independent variables
(transactional leadership, transformational leadership, laissez faire, function of department, highest level of education, field of specialisation and unit attached) were regressed against leadership outcomes to test the following null hypothesis:
Ho: Leadership outcomes could best be predicted by transactional leadership, transformational leadership, laissez faire, function of department, highest level of education, field of specialisation and unit attached.
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Using backward elimination technique, seven possible equations were developed as shown in Table 4.26.
Table 4.26:
Variables Entered/Removed
Model
.
Variables Removed
Variables Entered
Method
1
Function of department, unit attached, transformational, laissez faire, highest level of education, transactional, field of specialisation
2
Function of department, transformational, laissez faire, highest level of education, transactional, field of specialisation
Unit attached
3
Function of department, transformational, highest level of education, transactional, field of specialisation
Laissez faire
4
Function of department, transformational, highest level of education, field of specialisation
Transactional
5
Function of department, transformational, highest level of education
Field of specialisation
Backward (criterion: Probability of F-to-remove >= .100).
6
Transformational, highest level of education
Function of department
Backward (criterion: Probability of F-to-remove >= .100).
7
Transformational
Highest level of education
Backward (criterion: Probability of F-to-remove >= .100).
a All requested variables entered.
Enter Backward (criterion: Probability of F-to-remove >= .100). Backward (criterion: Probability of F-to-remove >= .100). Backward (criterion: Probability of F-to-remove >= .100).
.
b Dependent Variable: Outcomes
The R2 value denoted the amount of the total variance of the dependent variable explained by
the independent variables. R2 values must be interpreted in the context of the variables in a single equation. As an example, with reference to Table 4.27, for Model 1, the R2 is.670. This study sl'iows that function of department, unit attached, transformational, laissez faire, highest level of education, transactional, field of specialisation accounted for 67.0% of the total variance explained in leadership outcomes. Since the model with the highest R2 value is considered to be the best, therefore, based on data in Table 4.27, Model 1 is the best.
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Table 4.27:
R2 Analysis
Model
R Square
Adjusted R Square
Std. Error of the Estimate
1
.818(a)
.670
.611
6.00219
2
.818(b)
.669
.620
5.92863
3
.818(c)
.668
.629
5.86043
4
.817(d)
.668
.637
5.79617
5
.816(e)
.666
.643
5.74526
6
.814(f)
.663
.648
5.70472
7
.803(g)
.645
.638
5.79005
a Predictors: (Constant), function of department, unit attached, transformational, laissez faire, highest level of education, transactional, field of specialisation
b Predictors: (Constant), function of department, transformational, laissez faire, highest level of education, transactional, field of specialisation c Predictors: (Constant), function of department, transformational, highest level of education, transactional, field of specialisation d Predictors: (Constant), function of department, transformational, highest level of education, field of specialisation e Predictors: (Constant), function of department, transformational, highest level of education f Predictors: (Constant), transformational, highest level of education g Predictors: (Constant), transformational
The F ratio is the ratio of the sum of squares to mean squares (Hair et. al., 1987). The significance level score shows that the independent variables in the regression equation were
significant in predicting leadership outcomes and not just a result of random error. As an example, with reference to Table 4.28, the F ratio is 11.535, while the p-value is 0.000. Since
the cut-off level of .05 for significance was set for inclusion in the regression equations, the following variables; function of department, unit attached, transformational, laissez faire, highest
level of education, transactional, and field of specialisation were deemed as significant in predicting leadership outcomes. At the same time, all the other models have p-values which are less than 0.05, thus indicating their suitability in predicting leadership outcomes.
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Table 4.28:
Model
1
2
3
4
5
6
a
ANOVA
Regression/Residual
Sum of Squares
df
Regression
2908.820
7
415.546
Residual
1441.049
40
36.026
Total
4349.870
47
Regression
2908.776
6
484.796
Residual
1441.094
41
35.149
Total
4349.870
47
Regression
2907.393
5
581.479
Residual
1442.477
42
34.345
Total
4349.870
47
Regression
2905.261
4
726.315
Residual
1444.609
43
33.596
Total
4349.870
47
Regression
2897.515
3
965.838
Residual
1452.354
44
33.008
Total
4349.870
47
Regression
2885.397
2
1442.699
Residual
1464.473
45
32.544
Total
4349.870
47
Regression
2807.733
1
2807.733
Residual
1542.136
46
33.525
Total
4349.870
47
Mean
Square
F
Sig.
11.535
.000(a)
13.793
.000(b)
16.931
.000(c)
21.619
.000(d)
29.261
.000(e)
44.331
.000(f)
83.751
.000(g)
re ctors:(Constant), function of department unit attached, transformational, laissez faire, highest level of education, transactional, field of specialisation
b Predictors: (Constant), function of department, transformational, laissez faire, highest level of education, transactional, field of specialisation
c Predictors: (Constant), function of department, transformational, highest level of education, transactional, field of specialisation d Predictors: (Constant), function of department, transformational, highest level of education, field of specialisation e Predictors: (Constant), function of department, transformational, highest level of education f Predictors: (Constant), transformational, highest level of education g Predictors: (Constant), transformational h Dependent Variable: outcomes
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The final step is to develop the regression equation. Multicollinearity tests were incorporated by using Variance Inflation Factor (VIF) to determine if the independent variables are correlated with each other or
not. If the VIF <5, then there is no problem of multicollinearity (Hair et al., 1998). With reference to Table
4.29, all the six models have VIF values which are lesser than 5, thus indicating the absence of multicollinearity. At the same time by focusing on the p-values, they are all less than 0.05, thus indicating
the rejecting the hypothesis that the coefficients are equal to zero. The findings of this multiple regression analysis and analysis of variance suggest that all the four dummy variables and the three leadership styles influence leadership outcomes for TNB middle managers.
Table 4.29:
Model
Coefficients
UnstandardiSed Coefficients
1
II
Std. Error
20.272
14.298
Transactional
.023
.093
Transformational
.869
Toleranc e
VIF
.164
.027
6.246
.007
.668
1.498
.137
.728
6.352
.000
.616
1.622
-2.0432
.543
.044
6.546
.003
.621
1.345
-1.419
2.203
-.074
-5.644
.614
1.629
-10.967
6.749
-.165
-7.625
.789
1.268
1.138
2.380
.053
6.478
.655
1.526
.016
2.608
.001
.985
1.015
20.289
13.869
Transactional
.023
.091
Transformational
.869
Function of department Highest level of education Field of specialisation Unit attached
(Constant)
3
Sig.
1.418
Laissez faire
2
Collinearity Statistics
t
Constant/ Constructs
(Constant)
Standardised Coefficients
. 000
000
7.006
.
000
1.463
.151
.027
7.249
.004
.668
1.496
.135
.728
6.430
.000
.617
1.622
.619
1.616
.789
1.267
.661
1.514
.827
1.209
-1.417
2.167
-.074
-8.654
-10.968
6.667
-.165
-8.645
1.136
2.342
.053
7.485
(Constant)
20.605
13.659
.886
.115
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000
.
Function of departnt me Highest level of education Field of specialisation
Transformational
.
.742
121
. 000 . 000
.
000
1.509
.139
7.677
.000
4
Function of department Highest level of education Field of specialisation
-1.573
2.052
-.082
-6.766
.10.806
6.563
-.162
-8.646
1.111
2.314
.052
7.480
(Constant)
20.088
13.497
.896
.112
-1.022
.000 .000 .000
.675
1.481
.797
1.255
.662
1.511
.857
1.167
1.488
.144
.751
7.975
.000
1.686
-.053
-8.606
'
.983
1.018
_10.035
6.307
-.151
-9.591
'000
.847
1.180
18.348
13.095
7.401
.168
.894
.112
.749
8.018
.000
.858
1.166
Highest level of education
-9.617
6.226
-.144
-7.545
.000
.858
1.166
(Constant)
3.125
8.753
.357
.723
.959
.105
9.152
.000
1.000
1.000
Transformational Function of department Highest level of education (Constant)
000
5
Transformational
6
Transformational
.803
a Dependent Variable: Outcomes
Upon reviewing Table 4.29, the regression equation that can best predict leadership outcomes is as follows:
Leadership Outcomes = 20.272 + 0.023 (transactional) + 0.869 (transformational) - 2.0432 (laissez faire) - 1.419 (function of department) - 10.967 (highest level of education) + 1.138 (field of specialisation) + 0.016 (unit attached).
4.9
ANALYSIS OF OPEN ENDED ITEMS
The questionnaire used in this study contained only one comment section. However, upon assessment of the returned questionnaires, the researcher noted that all the respondents chose not to make any comments. Therefore, there was no analysis on the open ended item.
4.10
SUMMARY
This chapter commenced with factor analysis for statistical validity which was able to generate four constructs. A series of reliability tests were conducted on the four constructs proved that the
constructs are reliable where reliability coefficients for transformational leadership, transactional
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leadership, passive leadership and leadership outcomes are 0.863, 0.709, 0.494 and 0.860 respectively. Descriptive analysis using frequency tables with frequencies and percentages as
well as means and standard deviations for attributes of the constructs to get a better understanding of the constructs.
Subsequently, the four constructs were tested for normality to facilitate for subsequent inferential
analysis. A series of single mean t-tests indicated that only Laissez Faire has a negative mean
difference while transactional and transformational leadership styles as well as leadership outcomes all indicate positive mean differences. A series of independent sample Nests shows that only transactional leadership is affected by function of department, whilst transformational leadership and leadership outcomes are both affected by highest level of education.
Pearson Correlation was used in performing correlation analysis between leadership styles (i.e.,
Transactional, Transformational and Laissez Faire) against leadership outcomes. The results
confirmed that the three leadership styles have varying significant correlation with leadership
outcomes. All three correlation analyses resulted in p-values which are lesser than 0.05. As expected, there is a very strong positive correlation (r = 0.821) between leadership outcomes
and Transformational. On the other hand there is a strong positive correlation (r
=
0.425)
between leadership outcomes and Transactional. Finally, there is weak negative correlation
between leadership outcomes and Laissez Faire. Strong positive correlation was detected between
leadership outcomes and both transformational leadership and transactional
leadership. However, there is a weak negative correlation between leadership outcomes and laissez faire
Lastly, regression analysis was able to generate six models. Upon further analysis, the best model that can best predict leadership outcomes is as follows: Leadership Outcomes = 20.272 +
0.023 (transactional) + 0.869 (transformational) department)
2.0432 (laissez faire)
1.419 (function of
10.967 (highest level of education) + 1.138 (field of specialisation) + 0.016 (unit
attached). This model has the highest r2 indicating its strength of relationship between the dependent variable (leadership outcomes) and the independent variables (function of department,
unit
attached,
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123
laissez faire,
highest level
of education,
transactional, and field of specialisation). The model has low VIF values indicating the absence of multicollinearity whilst at the same time low p-values (less than 0.05) for the 13 coefficients.
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CHAPTER 5
IMPLICATIONS AND RECOMMENDATIONS
This chapter provides a summary of the findings and implications for future research and discussion. The purpose of this study was to investigate the perceived leadership style of TNB middle managers and the relationship of their leadership styles and outcomes based upon the
Bass's (1985a) leadership theory. Additionally, the study evaluated differences in TNB managers' leadership styles and outcomes based on selected demographic variables. The study
was also conducted to assess the level of leadership styles and outcomes among the respondents. The study uncovered the existence of relationship between selected styles and
outcomes as well as minor differences
in
styles and outcomes based on demographic
background of the middle managers. An improved version of the Conceptual Framework based on the preliminary conceptual model and the findings will be recommended accordingly.
5.1
SUMMARY OF FINDINGS
The analytical results and subsequent implications of the research developed by this study is based upon a quantitative method using survey questionnaires that supports the application of
Bass's (1985) conceptual framework of transformational, transactional and laissez faire leadership theory
as
well
as
Srisilsoporn's
(1999)
Transformational
Leadership and
Performance Outcomes Model. Strong empirical support for the acceptance of the research hypothesis was provided for most of the research hypotheses 1.2 and 3 of which all of the null hypotheses were rejected. However, partial support was determined for research hypothesis 4 from which only a few null hypotheses were rejected.
There are much evidences based on the single mean t-tests that the mean levels of transactional and transformational leadership styles are above average, while the mean level for laissez faire is below average. This is considered to be a good indicator that leadership styles at TNB are considered to be following the norms at most leading corporations as per those studied by Bass and Avolio (1991).
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The correlation analyses results were also consistent with those from studies conducted by
Srisilpsophon (1999) and Frittz (2005). Strong positive correlation was detected between leadership outcomes and transformational leadership (r = 0.821) and transactional leadership (r=0.425). As expected, there is a weak negative correlation between leadership outcomes and
laissez faire (r = -0.237). This implies that the higher the level of transactional and transformational leadership styles being practiced by TNB middle managers, the higher will the outcomes be. Conversely, the higher, the level of laissez faire leadership style practice will result in lowered outcomes rate.
The regression equation that can best predict leadership outcomes is as follows: Leadership Outcomes = 20.272 + 0.023 (transactional) + 0.869 (transformational)
1.419 (function of department)
2.0432 (laissez faire)
10.967 (highest level of education) + 1.138 (field of
specialisation) + 0.016 (unit attached). The model was able to generate an r2 value of 0.670 which means that 67% of variation in leadership outcomes could be explained by transactional
leadership, transformational leadership, laissez faire, function of department, highest level of education, field of specialisation and unit attached. In selecting the best regression model, the 13
coefficient was also analysed to develop the regression equation taking into consideration the inclusion
of the background information as dummy variables.
In
addition, tests
for
multicollinearity were conducted to confirm the development of the best model. The fact that these seven independent variables; function of department, unit attached, transformational, laissez faire, highest level of education, transactional, and field of specialisation entered into the
equation as significant suggests that the factors do influence leadership outcomes among TNB
middle managers. The result of this study suggests consistency with those conducted by Bass (1985a), Bass (1990b) Avolio, Waldman and Yammarino (1991) and Srisilpsophon (1999).
Finally, tests for difference of means yielded mixed results. Only three cases of rejection of null hypotheses were uncovered: (1) transactional leadership is affected by function of department,
(2) transformational leadership is affected by highest level of education, and (3) leadership outcomes is affected by highest level of education. This result is very consistent with a study conducted by Fritts (2005) whereby "there was no empirical support using ANOVA for rejecting
© W.A.R. Wan Razak
126
the null hypothesis
.
.
.
The alternative hypothesis was accepted for this application of the
analysis" (p. 122).
The researcher concludes that there is no significant difference in how TNB middle managers' leadership styles and outcomes based on highest level of education, transactional, and field of specialisation. However, collectively, the four aforementioned demographic variables do impact leadership styles and outcomes based on the regression equation.
5.2
IMPLICATIONS
With regard to the empirical findings of leadership styles and outcomes among TNB middle managers, this study has provided more detailed and updated descriptions on the perceptions of the TNB managers based on Bass's Leadership Model. A more updated and complete picture of
leadership styles and outcomes within this research context was able to be developed. Moreover, based on the use of quantitative research methods, the results of this study have a higher degree of consistency and statistical accuracy that helps in having a better understanding of not only the levels of leadership styles and outcomes, but also as to how they inter-relate with each other.
In addition to the contextual contribution, four implications were identified from the study: (1) model development implications, (2) the development of instruments for measuring leadership styles and outcomes, (3) policy and practical implications, and (4) and professional development
implications. These implications need to be addressed to ensure that managers could become effective leaders.
5.2.1
Model Development Implications
The main contribution of this study is the Revised Leadership Model which is shown in Figure
5.1. The revised model takes into consideration all the major findings from the quantitative analysis. The revised model also ranked from highest to lowest as well as from maximum to minimum impact variables and its related attributes respectively.
© W.A.R. Wan Razak
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Figure 5.1 shows that different demographic variable has different impact on leadership styles and outcomes. For example, function of department impacts transactional leadership only, whilst
highest level of education impacts both transformational leadership and leadership outcomes. This is in accord with the findings by Frittz (2005).
Though this model is specifically related to leadership styles and outcomes, it does partially address Tannenbaum and Yukl's (1992) comment on the lack of theory-related research in leadership effectiveness through a scientific and empirical approach. The rigour in testing of
hypotheses makes this a valid model to assess leadership styles and outcomes within the
Malaysian context. However, this model has its shortcomings as it is based on survey questionnaires which are 'snapshots' of perceptions at a particular point of time. Further to this, the rapid evolution of business operations such as outsourcing, mergers and acquisitions could implicate this model in the long run.
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Figure 5.1: Revised Leadership Styles' and Outcomes' Model
Transformationala Sense of pride
Dummy variables for regression analysis
Group interest Understand mission Sense of purpose Develop abilities Earn respect Recognise individuals
Demographic Function of Department Highest Level of Education Field of Specialisation Unit Attached
Optimistic Clear communication Suggest new ways Re-examine issues Confidence
Examine all aspects Equal Treatment
Leadership Outcomea Positive correlationship
Lead effectively Work effectively
'Obtain view from others Encourage
Enthusiastic Inspire Moral & ethical values
Represent effectively
Teach and instruct
Satisfactory results Promote satisfaction
Transactional"
Ensure satisfaction
State responsibility
Respond effectively
Illustrate satisfaction Illustrate rewards
Positive correlationship
Beyond expectation
Wait for problem Late interference Recognise failures Tracking mistakes Correcting failures
Laissez Faire
Negative correlationship
Slow to respond
Avoid making decision Missing when needed Avoid problems
Attributes of Leadership Styles
Moderators
Attributes of Leadership Outcomes
a Transformational leadership and leadership outcome are impacted by highest level of education b Transactional leadership is impacted by function of department
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5.2.2
Development of Instrument
A major methodological contribution of the study is the development of a survey instrument which is an adaptation of Bass's MLQ. Recognising the need to modify the existing instrument, the present questionnaire has been content validated by an expert panel of academicians and practitioners and criterion validated through the hypothesis testing, where the relationships with other variables in the theoretical model were tested with significant relationships. Moreover, the
items in the instrument have shown a high level of reliability. The instrument itself may serve well for identifying the relative strength of different leadership styles and outcomes in distinctive
dimension for not only middle managers but also for other managers, to help them identify the areas in which they require further improvement. While it is developed for measuring leadership
styles and outcomes in the utility company, it can also be applied to study the leadership patterns of other sectors as well as for other vocations.
5.2.3
Policy and Practical Implications
The internal (psychological) and environmental (organisational) factors were considered pertinent in explaining TNB middle managers' leadership styles and outcomes. TNB should take
advantage of the current positive leadership behavioural pattern of their middle managers for meeting the ultimate objective in the creation of an effective and productive service. As a matter
of policy, whilst leadership development needs further attention as an important component in
TNB's developmental efforts, an educative environment within should also be given greater
emphasis (Knowles, 1984). According to Amran (2005), organisational climate and more conducive work environment will improve the employee's professional development. Therefore,
it is recommended that TNB should develop strategies for change of organisational culture to stimulate middle mangers' leadership development.
Strategies for change of organisational culture will be useful by providing the leaders with the tools to manage this change. An organisation's culture plays a vital role in enabling an institution to adapt to continual environmental changes (Wilms, Hardcastle, & Zell, 1994). Providing people
a feeling of permanence and safety within the culture of the organisation will enable the
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institution to adapt to environmental changes (Kanter, 1983). The change strategies are required
to be used continuously as the need for changing culture keeps on arising. Organisational
cultures that adapt to change provide many benefits to the organisation. They aid the organisation in overcoming the challenges of change in the external environment and solidify direction (Schein, 1992). Having an adaptive culture can reduce employee turnover, allow for innovations and is crucial for recruiting knowledgeable workers (Harper & Utley, 2001; Sheridan, 1992).
The major practical implications of the study are as follows:
TNB middle managers have many needs. Some of the needs can be fulfilled through
training programmes. The understanding of the employees' needs is important in designing specific programmes and activities for the purpose of achieving greater productivity of the organisations. Conducting needs analysis on a regular basis should
be done accordingly. There is also a need for TNB human resource department to
ensure that their employees' expectancies and goals are met from attending a particular training programme.
Since TNB middle managers' expectancies and goals are important when participating in training and development programmes, there is a need to formalise the goal-setting
procedures and the follow-up programmes in ensuring the effective "transfer of leadership's training" to work situation.
TNB must ensure that all middle managers have equal opportunities to participate in in-
service training and education on a continuous basis. According to Martocchio (1992),
employees often cited increased in confidence level after attending well-structured training programmes.
There is a need for TNB to take all possible measures to improve and sustain the
current positive perception of leadership styles and outcomes. This is important because such positive perception is a great "asset" to the institution in its efforts to bring
about change and development within itself and its members.
Understanding the importance of motivation by the top management will help to enhance the application of knowledge and skills among TNB middle managers. A technique that could be useful is to require middle managers meet regularly with their
W.A.R. Wan Razak
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top management to discuss action plans and on-the-job application of skills. Another technique that could be used involves structuring pre-training course sessions for key middle management personnel, where they could learn about the content of leadership
training courses being provided and plan for actions they could take to support middle managers throughout the training programme.
5.2.4
Professional Development Implications
The leadership study among middle managers in TNB indicated that most of the respondents have varying perceptions about transformational, transactional and passive leadership styles. As
a government-linked company (GLC), TNB should continuously strive to ensure that the middle
managers are effective and efficient as per the directives of the Prime Minister of Malaysia that all GLCs should undergo transformation to become high performers.15 One of the 10 initiatives identified was to manage and develop leaders and other human capital.
As such, TNB middle managers need to attend professional development programmes to ensure that their leadership could fulfil the directives set out by the Prime Minister. As such, professional development programmes need to consider the following: Improve the Selection Process Develop Relevant Leadership Education and Training Implement Leadership Education and Training in Various Forms Evaluating Leadership Education and Training Continuously
If TNB were to conduct the education and training programmes on its own or through its university or training centre, it is recommended that proper selection process be introduced so that the return on training investment can be assured, especially when the "right" candidates are
chosen based on the strategic needs of TNB. Objectives and goals of the programmes must be clearly defined, especially when the efforts involve outsourcing. All parties concerned must have a clear understanding of the purpose of conducting such programmes.
13 Based on a speech by The Honorable Dato' Seri Abdullah Badawi, Prime Minister of Malaysia at the launch of the GLC Transformation Programme on 29th July 2005 at Kuala Lumpur Convention Centre
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As Blanchard and Johnson (1993) would say, 'different strokes for different folks', TNB managers need to get training and education in various forms such as peer interaction, formal
mentoring and coaching. Leadership experts or highly successful practitioners should be brought in to liaise with TNB middle managers while using action learning projects which can be
powerful tools for leadership development. Outside facilitation and guidance could prove to be helpful for keeping projects on track and for maximising learning outcomes.
Subsequently, leadership education and training should be continuously evaluated to ensure
relevancy of education and training programmes to the workplace requirements while at the same time ensure their effectiveness in any given work environment. Though evaluations are
usually conducted under great pressure from the management, as participants normally perceive evaluations as an additional burden and responsibility, they are critical components to ensure that trained managers would become excellent leaders of the future.
Hawthorne (1987), in his research has explained that during the past five decades, the nature
and function of employee education has changed from the usual skill training to programmes
that address more complex managerial and technical issues faced by the respective corporations. As such, TNB should align their corporate training programmes for their middle managers to be more biased toward corporate education as training is more specific and skill
oriented while education is a learning process that promotes analytical thinking and problem
solving. Some form of customised leadership training such as the Individual Leadership Development Plan (ILDP) could be considered by TNB. ILDP is designed for customisation to an
individual rather than to a particular role or title. The individual focus typically includes valuable
feedback from several sources which prompt the self-reflection necessary to become more
authentic as a leader (Cranston, 1994). Like goal-setting theory (Robbins, 1998), "even if extensive customisation is not feasible, just having a plan customised
even one that is not individually
has an extremely significant impact on leadership development" (Corporate
Executive Board, 2001, p. 42a).
However, extensive customisation is, nonetheless, the most effective approach. The Corporate Executive Board (2003) found that four programme goals are apparent with the implementation
W.A.R. Wan Razak
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if ILDP: (1) improve/develop competencies needed to meet desired company targets; (2) prepare individuals for specific leadership positions; (3) help individuals meet short- and longterm business goals; and (4) help individuals meet short- and long-term career goals.
5.3
RECOMMENDATIONS FOR FUTURE RESEARCH
This is a case study on the perceptions of TNB middle managers on leadership styles and outcomes. The research identified three areas were where follow-up research based on this
study could be conducted: (1) comparative studies of leadership styles and outcomes (2) develop typology of middle managers through job description and (3) conducting in-depth study using qualitative methods.
5.3.1
Comparative Studies on Leadership Styles and Outcomes
For the present study, the sample was chosen from TNB only. Further comparative works may be conducted across different industries and cultures. Comparisons among different industries can help to understand the pattern of leadership styles and outcomes across different industries,
so that more focused research attention on leadership training could be made. A possible study
can be carried out on the private and public sectors or other GLCs in Malaysia. On the other hand, cross-cultural comparisons can provide better understanding on the influence of the socio-
cultural interactions on the development of leadership styles and outcomes. For example, applying the conceptual model to the manufacturing sector or a public institution will provide further understanding on the impacts of these external influences, as the core business and orientation may differ from that of a utility company.
5.3.2
Typology of Middle Managers
By classifying the middle managers into different categories, it is possible to offer them more focused training and assistance. Most of the prior classifications of the clerical workers have been made with reference to their job classification. However, there are variations in terms of job
specification. For example, within the category of subsidiaries there are TNB Distribution Sdn.
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Bhd., TNB Generation Sdn. Bhd., TNB Transmission Sdn. Bhd. and others. Each category has
different focus and requires specialised training to fit their job functions to ensure relevancy of leadership training to the work requirement.
5.3.3
Conducting In-depth Studies Using Qualitative Tools
An in-depth study on how leadership styles affect leadership outcomes could be conducted using qualitative tools such as observation, interviews and focus groups. The findings from the
qualitative analysis can be triangulated with the findings from this study which uses primarily
quantitative methods to understand the process of developing leadership skills among TNB managers.
From a practical perspective on how to implement leadership training effectively, action research
methods may be deployed. Classical steps to plan, act, observe and reflect in order to improve TN B's leadership development activities. Action research is not only a research that describes
how TNB middle managers should behave in the outside world but also a change mechanism that helps them reflect on and change their own systems (Reason & Bradbury, 2001).
© VV.A.R. Wan Razak
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APPENDIX 1
POPULATION OF TNB MIDDLE MANAGERS
Zulkifli
wrote: Date: Wed, 27 Apr 2005 05:59:05 +0800 From: Zulkifli
Subject: Re: List of GM To: Wan Ahmad Rudirman
Sorry for the delay.. .was away yesterday
Attached is the list of emails for the M15 group
Hope it is helpful
Wassalam
Zulkifli
Table 1.0A: Population of TNB Middle Managers &mail address
Staff No
Middle Managers
10020482
Abd Halim b Abu Bakar
[email protected]
10020688
Abd Jalil b Mohammad
[email protected]
10021870
Abd Latif b Hj Omar
[email protected]
10020546
Abd Rahman b Hussin
[email protected]
10020394
Abd Rahman b Marhaban
[email protected]
10020627
Abdul Halim b Mohamad Noah
[email protected]
10021636
Abdul Rahim b Bardan
[email protected]
10022009
Abdul Rahman b Abd Samad
[email protected]
10020477
Abdul Rahman b Thamby Ibrahim
[email protected]
10028093
Abu Safian b Talib
[email protected]
10020523
Adi Negara b Hassan
[email protected]
10030862
Adnan b Sulaiman
[email protected]
10020535
Alwi b Abdul Rahman
[email protected]
10009998
Aminah bt Hassan
[email protected]
10020481
Amir Nordin b Abdul Aziz
amirna tnb.com.m
W.A.R. Wan Razak
191
10032662
AzIan b Hj Romly @ AzIan Carrie
[email protected]
10020534
Azmi b Omar
[email protected]
10020690
Baharum b Hamzah
[email protected]
10022372
Chow Kok Meng
[email protected]
10020679
Choy Fook Kun
[email protected]
10009997
Datin Christine Shanta Nitchingham
[email protected]
10020851
Dato Mohd Ghazali b Hj Sulaiman
[email protected]
10020396
Dato' Yazid b Adon
[email protected]
10020404
Dr Haji Amir Basha b Mohd Ismail
[email protected]
10020314
Dr Ismail b Mustapha
[email protected]
10020469
Dr Mohd Zamzam b Jaafar (a)
[email protected]
10020415
Dr Salim b Sairan
[email protected]
10020456
E Tharumanathan
[email protected]
10020695
Foo Mieng Yong
[email protected]
10020691
Geoffrey b Nasrulhaq
[email protected]
10020702
Hairuddin b Hussein
[email protected]
10020862
Halim b Osman
[email protected]
10020174
Hasbollah b Mohd Salleh
[email protected]
10036160
Jaafar b Jusoh
[email protected]
10020393
Jaffar b Othman
[email protected]
10027856
Jamel b Ibrahim
[email protected]
10020522
Joseph Francis Chong
[email protected]
10020391
Juliah bt Tan Sri Mohd Hassan
[email protected]
10036829
Kamalul Ariffin b Othman
[email protected]
10020119
Kamaruddin b Abu Bakar
[email protected]
10020329
Kamaruddin b Dato' Hj Ismail
[email protected]
10021094
Kamaruzaman b Mohd Jamil
[email protected]
10020323
Leong Whye Hin
[email protected]
10020875
Leong Yoke Heng
[email protected]
10020520
Lum Kim Fook
[email protected]
10032171
M Ishan b Hj Bakar
[email protected]
10021534
Mat Riffin b Omar
[email protected]
10020620
Megat Said b Megat Ramli
[email protected]
10020603
Mohamad b Che Jusof
[email protected]
10021640
Mohamed Yunus b Seeni Mohamed
[email protected]
10021646
Mohammad Mokhtar b Mohd Ali
[email protected]
10022077
Mohammad Rumai b Putih Abdullah
[email protected]
10032108
Mohd Isa b Che Dir
[email protected]
10020474
Mohd Noor b Mohd Sidin
[email protected]
10020460
Mohd Riduan b Abu Bakar
riduanabetnbg.com.my
© W.A.R. Wan Razak
192
10020494
Mohd Safian b Hj Ismail
[email protected]
10020493
Mohd Yunus b Yaakub
[email protected]
10020296
Mohd Yusof b Mohd Jadi
[email protected]
10020405
Mohd Yusof b Mohd Shariff
[email protected]
10020512
Mokhtar b Majid
[email protected]
10020616
Muhammad b Ismail
[email protected]
10022028
Muhammad Razif b Abd Rah man
[email protected]
10020303
Muhayen b Tukiban
[email protected]
10020610
Mustapha b Rounal Haroun
[email protected]
10032117
Nawawi b Mohd Said
[email protected]
10032107
Nazariah bt Ahmad Nazri
[email protected]
10080666
Nazmi bin Othman
[email protected]
10021651
Ng Jin Koon
[email protected]
10021590
Nor Azmi b Ramli
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10025183
Nor Zakiah bt Abdul Ghani
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10020452
Nurul Azman b Abas
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10020417
Ong Eng Moo
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10020837
Pang Soo Beng
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10020455
Prabakaran all P T K Nair
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10020599
Rahimuddin b Baharuddin
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10021245
Raj Kumar all Gopal Pillai
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10020316
Raja Harris b Raja Hasbullah
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10022093
Razali b Awang
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10020869
Roslan b Abd Rah man
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10009922
S Kalavathy
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10032141
Saadiah bt Badrudin
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10032169
Samat b Ayob
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10022081
Shamsuddin b Jusoh
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10020414
Suhaimi b Dahalan
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10020310
Syed Kamarulzaman b Syed Kabeer
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10009807
Syed Othman b Syed Mohamed
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10020382
Tan Eng Keang
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10020519
Teh Ah Kau @ Teh Huan Chew
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10020604
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10033246
Viswanathan all Subramaniam
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10020531
Wahid b Ali
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10020324
Wong Chung Hoo
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10020388
Zahara bt Saidin
[email protected]
10020527
Zaharuddin b Tajul Arus
[email protected]
10020386
Zainab bt Abdullah
zainaba
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tnb.com.m
10020309
Zainal Abidin b Husin
[email protected]
10020683
Zainudin b Omar
zainudinoAtnb.com.my
10035870
Zakana b Zainal Abidin
zakariazatnb.com.my
10020602
Zulkifli b Mohd Noor
zulkiflin0.tnbg.com.my
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APPENDIX 2 SUMMARY OF EMPIRICAL RESEARCH ON TRANSFORMATIONAL AND TRANSACTIONAL LEADERSHIP
Table 2.0A: Leadership
Summary of Empirical Research on Transformational/Transactional
(1) Title:
Transformational vs. transactional leadership; A study of New Zealand company managers
Author: Journal:
Ming S. Singer Psychological Reports (1985)
Dependent Variables Transformational Leadership Transactional Leadership
Independent Variables Subordinate effort
extra
Subordinate performance Effectiveness superior
Findings
Sample
The mean ratings on
randomly The 38 New from selected company Zealand managers
the transformational factors were more highly correlated than on die those transactional factors with perceived leader's effectiveness and job satisfaction.
of
discrepancy scores between the real and ideal leaders were negatively correlated with the effectiveness and satisfaction The rating
(2)
Title: Author: Journal:
Transformational leadership and the falling dominoes effect Bernard M. Bass, David A. Waldman, Bruce J. Avolio & Michael Bebb, Group & Organisation Studies (1987)
Dependent Variables
Transformational Leadership =
Transactional Leadership
Independent Variables Leader's effectiveness = Subordinate's
extra
effort Subordinate's satisfaction leader
Findings
Sample
A total of 56 first-level supervisor from a New Zealand agency
with
government
The importance developing transformational
leadership abilities at upper levels of management to enhance the likelihood of such leadership at lower levels
W.A.R. Wan Razak
195
of
(3) Title: Author: Journal:
Leadership and outcomes of performance appraisal processes David A. Waldman, Bernard M Bass, & Walter 0. Einstein Journal of Occupational Psychology (1987)
Dependent Variables
Transformational Leadership Transactional Leadership
Independent Variables with Satisfaction reward outcomes Satisfaction with current performance with Satisfaction
Sample A large involved
Findings
organisation in
manufacturing as well as whole sale and retail distribution,
future development Performance ratings
(4) Title: Author: Journal:
Transformational leadership and rewards contingent leadership were relatively equally related to performance appraisal satisfaction. Transactional factor of management-bywas exception actually negatively correlation with all satisfaction measures
Transformational leadership in a management game simulation Bruce J. Avolio, Walter 0. Einstein, & David A. Waldman Group & Organisation Studies (1988)
Dependent Variables Transformational Leadership Transactional Leadership
Independent Variables Market share Stock price Earnings per share Return on assets
were
second year part time and
full students.
Debt-to-equity
© W.A.R. Wan Razak
Findings
Sample Participants
196
time
MBA
Active transactional and transformational leadership defined by Bass (1985) were shown to be correlated with higher level organisational effectiveness.
(5) Title:
Author: Journal:
Relationship of transformational and transactional leadership with employees influencing strategies Ronald J. Deluga Group & Organisation Studies (1988)
Dependent Variables
Transformational Leadership Transactional Leadership
Sample A sample of and exempt
Independent Variables Friendliness Bargaining
Findings 400 non
exempt employees of a manufacturing firm
Reason Assertiveness Higher authority
located in a middle-class,
Coalition
lower-
multiethnic area of the Northeast.
Transformational leadership-employee influencing are interactions as more viewed in effective promoting organisational productivity.
(6)
Title:
Author: Journal:
Superior's evaluations and subordinates' perceptions of transformational and transactional leadership John J. Harter & Bernard M. Bass Journal of Applied Psychology (1988)
Dependent Variables Transformational Leadership Transactional Leadership
Independent Variables Effectiveness satisfaction Individual performance Work performance
Superior performance manager
W.A.R. Wan Razak
and
group
as
Sample corporation An US specialises in door-todoor, express (air) deliver of good and information,
a
197
Findings
Transformational leadership obtained from their subordinates' rating significantly differentiated performing managers from ordinary managers.
(7) Title:
Author: Journal:
Potential biases in leadership measures: How prototypes, leniency and general satisfaction, relate to ratings and general satisfaction related to ratings and ranking of transformational and transactional construct Bernard M. Bass & Bruce J. Avolio Educational and Psychological Measurement (1989)
Dependent Variables
Independent Variables
Transformational Leadership
Satisfaction leader
Transactional Leadership
Effectiveness leader
with
of
Sample of 87 A sample participants from u Atlantic large mid public university .
Findings
The inter-correlation scores representing the and transformational transactional Leadership constructs reduced were substantially by using
the force rankings as with compared graphic ratings.
the
The magnitude of the relationships Leadership
among and
outcome factor scores were reduced on average when using forced rankings.
factor
Prototypical
scores were high on transformational leadership. (8)
Title: Author: Journal:
Leadership behaviours, influence tactics, and career experiences of champions of technological innovation Jane M. Howell & Christopher A. Higgins. Leadership Quarterly (1990)
Dependent Variables Transformational Leadership Transactional Leadership
Independent Variables Influence tactics Career experience
Sample A survey of 350 CEOs of Canadian firms listed on the Financial Post 500
Findings exhibited Champions more charismatic leader
behaviours and used a variety of influence tactics than champion.
non
Champion also held more job positions, worked in more divisions and geographic locations and had greater previous innovation
experience during their careers
chamions.
© W.A.R. Wan Razak
198
than
non
(9) Title:
Author: Journal:
Transformational leader behaviours and substitutes for leadership as determinants of employee satisfaction, commitment, trust, and organisational citizenship behaviours Philip M. Podasakoff & William H. Bommer Journal of Management (1990)
Dependent Variables
Independent Variables
Transformational Leadership
Employee satisfaction
Transactional Leadership
Commitment Trust Organisational citizenship behaviour
Sample The 1539 employees across a wide variety of different industries, organisational settings, and job levels,
Findings
The leader
transformational behaviours and
substitutes for leadership each had unique effects on follower variables
The variance accounted for by the substitutes for leadership and transformational
the
behaviours was greater than previous research. The transformational behaviours were significantly related to the
substitutes for leadership variables. (10) Title: Author: Journal:
Transformational leadership; Beyond imitation and consideration Joseph Seltzer & Bernard M. Bass Journal of Management (1990)
Dependent Variables
Transformational Leadership Transactional Leadership
Independent Variables
Leaders effectiveness Subordinate's extra effort Subordinate's satisfaction leader
Sample
Responses of 138 subordinates of 55 managers
with
Findings Transformational leadership adds to initiation and consideration in explaining the variance of subordinates' satisfaction and ratings of leader effectiveness. There was disconfirmation
for the effect on reported extra effort, suggesting (hat the of relation transformational leadership subordinate's extra effort in a dyadic rather than a group effect.
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(11) Title: Author:
Transformational leadership and multiple levels of analysis Franscis J. Yammarino & Bernard M. Bass
Journal:
Human Relations (1990)
Dependent Variables
Independent Variables
effort on the
Transformational Leadership
Extra Job
Transactional Leadership
Job satisfaction Leader's effectiveness
(12) Title:
Author: Journal:
Findings
Sample
The focal leaders were 186 USN graduated of the USNA and on active duty assigned to the surface warfare fleet.
Transformational as leadership to compared Or transactional laissez-faire was leadership related more strongly to subordinates' extra effort and satisfaction with the focal officers the officers' and effectiveness.
The effects of transformational and transactional leadership styles on the influencing behaviour of subordinate police officers. Ronald J. Deluga & Joanne Souza Journal of Occupational Psychology (1991)
Dependent Variables Transformational Leadership Transactional Leadership
Independent Variables
The target population
Subordinate influencing behaviour
who
the
Transformational was leadership determined to be
entire police force of a
more closely related
Procedure
city located on the East coast of the United
subordinate with influencing rational than behaviour
Manipulation check Realism check gender Leader effects
© W.A.R. Wan Razak
Findings
Sample
Scenario development
was 117 police officers
States
constituted
transactional leadership.
200
(13)
Title:
The relationship of hall directors' transformational and transactional leadership to select
resident assistant outcomes, Susan R. Komives Author: Journal of College Student Development (1991) Journal: Dependent Variables
Transformational Leadership Transactional Leadership
Independent Variables
Findings
Sample
were
Job satisfaction
Participants
Satisfaction with the leader Motivation to extra effort
hall residents and 806
84
assistants residence in seven employed public university,
Subordinates, who are inexperienced, immature, Or untrained need transformational to
support, develop and empower (hem.
Transformational leadership factors clearly account for of higher level with satisfaction view of leader, leader's effectiveness, to and motivation than extra effort transactional factors alone. (14) Title: Author: Journal:
Leadership among middle managers; An exploration in the context of technological change Carol A. Beatty & Gloria L. Lee Human Relations (1992)
Dependent Variables Transformational Leadership Transactional Leadership
© W.A.R. Wan Razak
Independent Variables Extra Job
effort on the
Job satisfaction Leader's effectiveness
Sample
The CAD-CAM systems in
UK and Canadian
companies.
Findings A transformational to approach leadership that
combines path finding with people problemsolving and organisational charges is likely to be in more effective overcoming barriers to change than a transactional leadership that concentrates on technical problem solving to the neglect of people and organisational issues.
201
(15) Title:
Transformational leadership and the performance of research and development project
Author: Journal:
groups. Robert T. Keller Journal of Management (1992)
Dependent Variables
Transformational Leadership Transactional Leadership
Independent Variables
Project quality Budget / schedule performance rating at time 1 Budget / schedule performance rating at one-year later at time
Sample Professional employees from three industrial R&D companies
Findings
Transformational leadership was
a
stronger predictor of project quality ratings for research projects than for development projects. structure Initiating a stronger was predictor of project for rating quality development projects than for research projects.
1
(16)
Title: Author: Journal:
Superior - subordinate relationships: A multiple levels of analysis approach. Francis J. Yammarino & Alan J. Dubinsky Human Relations (1992)
Dependent Variables
Independent Variables
Transformational Leadership
Attention Job latitude
Transactional Leadership
Satisfaction performance
A sample of retail sales with
associates supervisors,
Job congruence
@ W.A.R. Wan Razak
Findings
Sample
202
&
their
There were individual differences on these for dimensions and superiors subordinates
(17) Title:
Author: Journal:
Transformational leadership, transactional leadership, locus of control and support for innovation: Key predictors of consolidated-business-unit performance Bruce J. Avolio and Jane M. Howell Journal of Applied Psychology (1993)
Dependent Variables
Transformational Leadership Transactional Leadership
Independent Variables Locus of control
Support
for
innovation to predict the consolidated-unitperformance
Sample 78 managers of top four
levels of management a large Canadian financial institution in
Findings
Transformational was leadership associated with a
higher internal locus control and of a significantly predicted positively business unit performance over a 1 -year interval. Transaction)
Leadership was each
negatively related to business performance.
unit
(18)
Title:
Author Journal
Transformational leadership and performance: A longitudinal investigation Francis J. Yammarino, William D. Spangler & Bernard M. Bass Leadership Quarterly (1993)
Dependent Variables
Transformational Leadership Transactional Leadership
Independent Variables Appraised performance
Attributed performance
Sample All USNA graduates on active duty assigned to the surface warfare fleet.
Findings
Transformational and laissez-faire leadership of officers were both associated officers' with attributed performance in the fleet and transformational leadership was associated with officers appraised fleet performance. Officers' transactional
leadership also was not linked appraised attributed performance.
© W.A.R. Wan Razak
203
to Or
fleet
(19) Title:
Author Journal
The "natural" some antecedents to transformational leadership Bruce J. Avolio International Journal of Public Administration (1994)
Dependent Variables
Transformational Leadership Transactional Leadership
Independent Variables Life safisfaction
Parental interest Moral standards Parental description High schoolextracurricular
Sample of 182 A sample community leaders was comprised of 86 males, 92 females and 4 which were uncoded
High school experience Work experience
Findings
There
were
some
early life experience that were associated with subsequent self and follower of perceptions transformational leadership.
The
associations
were much weaker than would have been anticipated prior based on research
(20) Title:
Author Journal
Gender mid leadership style: Transformational and transactional leadership in the Roman Catholic church Vanessa Urch Druskat Leadership Quarterly (1994)
Dependent Variables
Transformational Leadership Transactional Leadership
Independent Variables Extra effort Job
on
Job satisfaction Leader's effectiveness
the
Sample A sample of 6,359 subordinates of leaders in nil-female and allmale religious orders of the Roman Catholic Church
Findings Both male
female and subordinates
rated themselves as more satisfied with transformational leadership. Female
leaders are rated to exhibit significant more transformational leadership behaviours and significantly few transactional leadership behaviours than male leaders.
© W.A.R. Wan Razak
204
(21) Title:
Author Journal
Transformational leadership theory: Using levels of analysis to determine boundary conditions Francis J. Yammarino & Alan J. Dubinsky Personnel Psychology (1994)
Dependent Variables
Transformational Leadership Transactional Leadership
Independent Variables Subordinate effort
extra
of 105 salespersons 35 sales supervisors
Subordinate performance
Effectiveness superior
Sample A sample
of
Findings
Transformational leadership results are an based solely individual differences. Transformational leadership theory was determined to be an individual level theory bounded by individuals' and (superiors' subordinates')
perceptions and not holding levels.
at
higher
(22) Title:
Author Journal
Transformational leadership theory; Using levels of analysis to determine boundary conditions Francis J. Yammarino & Alan J. Dubinsky Personnel Psychology (1994)
Dependent Variables Transformational Leadership Transactional Leadership
Independent Variables Subordinate effort
extra
.supervisors
Subordinate performance Effectiveness superior
Sample
A sample of 105 salespersons 35 sales
Findings Transformational leadership results are an based solely individual differences, Transformational leadership theory was determined to be an individual level theory bounded by individuals' superiors' subordinates' and
of
perceptions and not holding levels.
© W.A.R. Wan Razak
205
at
higher
(23) Title:
Author Journal
Further assessments of Bass's (1985) conceptualisation transformational leadership Joyce S. Alien, Peter Bycio, & Rick D. Hackett Journal of Applied Psychology (1995)
Dependent Variables
Transformational Leadership Transactional Leadership
Independent Variables
Performance satisfaction Intent to leave
and
Organisational commitment
Sample
of
transactional
Findings
A random sample of 4,000 registered nurses who belonged to a members 75,000 nursing association
and
A
confirmatory factor analysis involving nurses hospital revealed some support for this 5 factor
representation, but a 2 factors Active- Passive model was also tenable, The differential relationships to a series of outcomes
were observed us a function of the leader behaviours involved. (24)
Title: Author Journal
Transformational leadership: An initial investigation in sales management Alan J. Dubinsky, Franscis J. Yammarino, Marvin A. Jolson & William D. Spanglcr Journal of Personal Selling & Sates Management (1995)
Dependent Variables
Transformational Leadership Transactional Leadership
Independent Variables
Job satisfaction & job congruence Commitment
Role conflict & role ambiguity
Sample An corporation US specialise in door-toexpress(air) door, deliver of good and information
Job stress & burnout extra Salesperson effort Multidimensional performance
© W.A.R. Wan Razak
206
Findings Transactional approach may be a preferable to transformational style enhancing for salespeople's and affective behavioural responses
(25) Title:
The effects of Transformational leadership on teacher attitude and students performance in
Author: Journal:
Singapore William K. Koh, Richard M. Steers, & James R. Terborg Journal of Organisational Behaviour (1995)
Dependent Variables Transformational Leadership Transactional Leadership
Independent Variables
Teachers
Organisational Commitment
Singapore
Satisfaction Leader
Findings
Sample
Organisational Citizenship Behaviour
from
random selection on secondary schools in
with
Student Academic Performance
(26) Title:
Author: Journal:
Transformational has leadership and significant add-on substantial on effects transformational in leadership citizen organisational behaviour, organisational and commitment satisfaction with leader. Transformational leadership has little direct impact on student academic performance
Power and transformational and transactional leadership in public and private organisation Leanne E. Atwater & Wendy J. Wright International of Public Administration ( 1 996)
Dependent Variables
Independent Variables
Transformational Leadership Transactional Leadership
Legitimate power Reward power Coercive power Expert power Referent power
Sample 35 10 public and private organisations located in central New York State
Findings sector Public organisations in which managers had low control over rewards were compared with private sector organisations. perceived Followers public sector supervisors as more inspirational by their and used followers MBB more active behaviour. Private sector
supervisors had more reward, legitimate and coercive power than supervisors in public sector organisation
W.A.R. Wan Razak
207
(27) Title:
Effects of transformational leadership training on attitudinal and financial outcomes: A field
Author: Journal:
experiment Julian Barling, Tom Weber & B. Kevin Kelloway Journal of Applied Psychology (1996)
Dependent Variables
Independent Variables
Transformational Leadership Transaction al Leadership
Perceptions leaders
of
Organisational commitment
2 aspects of branchfinancial level performance
Sample
Findings
One regions of one of
The training resulted in significant effects
the five largest banks in
Canada - There were
subordinates' on of perceptions leaders' transformational
20 branches in the region, each with its
own manager,
leadership, subordinates' organisational
own
commitment, and 2 aspects of branchfinancial level performance (28)
Title: Author: Journal:
The transformational and transactional leadership of men and women Bernard M. Bass, Bruce J. Avolio & Leanne Atwater Applied Psychology: An International Review (1996)
Dependent Variables
Transformational Leadership Transactional Leadership
Independent Variables
Effectiveness Extra Effort Satisfaction
Sample A sample of 219 female direct report & 658 male
direct reports on North selected Americans from six Fortune 50 firms
Findings
Women are no less transformational than their male counter parts,
The sex of the ruler did
not
appear
to
make any difference the obtained. in
© WAR. Wan Razak
208
results
(29) Title:
Author: Journal :
Direct and indirect effects of three core charismatic leadership components on performance and attitudes. Shelley A. Kirkpatrick & Edwin A. Locke
Journal of Applied Psychology (1996)
Dependent Variables
Independent Variables Vision
Charismatic Transactional Leadership
Vision
implementation; task cues Communication style
Sample Students in third-year classes business in participated exchange for a 2% extra credit bonus.
Findings The vision quality
of high
weakly affected performance but quality significantly affected many attitudes. Vision in implementation, the form of task cues, affected performance quality and quantity. Charismatic communication style only the affected of perception charisma.
(30) Title:
Author: Journal:
Transactional versus transformational leadership : An analysis of the MLQ Deanne N. Den Hartog, Jaap J. Van Muijen & Paul L. Koopman Journal of Occupational and Organisational Psychology (1997)
Dependent Variables
Independent Variables
Transformational Leadership Transactional Leadership
Extra Job
effort on the
Job satisfaction
Findings
Sample
1,200 employees from eight organisations.
Leaders effectiveness
Dutch
types three The (transformational, and transactional of laissez-faire) leadership can be founded in this study. are scales The
slightly different from Bass' scales.
@ W.A.R. Wan Razak
209
APPENDIX 3
QUESTIONNAIRE EVALUATION SHEET
Please read this Question Evaluation Sheet to gain an understanding of the aim and evaluation
criteria before you attempt to answer them. After reading, you can then proceed to attempt to answer and/or review all the questions in the attached questionnaire.
You may find that questions may or may not be applicable to you specifically but bear in mind that your participation in this Pilot Test is aimed at evalsLuating whether the instructions, format,
structure, questions, etc contained are clear, can be understood, properly formatted/structured, appropriate length, relevance, etc.
In this regard, please complete the following (circle your answer YES
nd comment in the
space provided. e.g. Question 5 is not clear, Question 8 is repeated, Question 8 is too long, Question 10 language is emotional, Question 12 is bias, etc )
;
The INSTRUCTIONS in the questionnaire are sufficient and can be understood easily.
YES /NO
The QUESTIONS used are clear, unambiguous and can be understood easily.
YES /NO
The STRUCTURE/FORMAT of the questionnaire is proper and can be easily followed and understood.
YES /NO
The LANGUAGE used in the questionnaire is suitable and acceptable.
YES /NO
© W.A.R. Wan Razak
210
The LENGTH (number of questions) of the questionnaire is reasonable and acceptable for responding.
YES / NO
The questions asked are RELEVANT to the research topic.
YES / NO
If you have any other observations and/or comments on the questionnaire, please list down below (in point form);
Please return the completed Questionnaire Evaluation Form to Wan Ahmad Rudirman
Wan Razak by e-mail to [email protected]. Your support and co-operation through participating in this project is greatly appreciated. THANK YOU.
Wan Ahmad Rudirman Wan Razak
© W.A.R. Wan Razak
10
211
March
2005
APPENDIX 4
QUESTIONNAIRE EVALUATION PRETEST RESULTS
2
3
4
5
6
7
8
9
10
1
Bakar
Amran
Wan
Asmi
Law
Lekha
Anizan
Rozi
Low
Abu
Participants' code
110305
110305
110305
120305
120305
120305
140305
140305
140305
140305
Pilot test submission date
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Yes
Yes
Yes
Yes
Yes
Don't know
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
No
Yes
No
Yes
Yes
Yes
No
Yes
No. of pilot test participants
QUESTIONNAIRE EVALUATION The INSTRUCTIONS in the Questionnaire are sufficient and can be understood easily.
1
2
3
(Yes/No) The QUESTIONS/STATEMENTS used are clear, unambiguous and can be understood easily. (Yes/No) The STRUCTURE/FORMAT of the Questionnaire is proper and can be easily
followed and understood. (yes/No The LANGUAGE USAGE of the questionnaire 4
5
.
.
is suitable and acceptable.(Yes/No) The LENGTH (number of questions/statements) of the questionnaire is reasonable and acceptable for responding. (Yes/No)
6
The questionnaire is RELEVANT to the research topic.(Yes/No)
Questionnaire Answered (Yes/No)
@ W.A.R. Wan Razak
212
APPENDIX 5
STATISTICAL ANALYSIS ON PILOT DATA
Case Processing Summary %
Cases
100.0
Valid
6
Excluded(a)
0
.0
Total
6
100.0 .
a
.
.
..
Listwise deletion based on all variables in me proce
Reliability Statistics Cronbach's Alpha
N of Items
.808
46
Item Statistics Mean
Std. Deviation
N
To give assistance to those who are making an effort/trying hard
4.333
.8165
6
To re-examine important assumptions to question to determine whether they are appropriate
4.500
.5477
6
To interfere when problems become complicated
1.500
.5477
6
To focus on problems that are irregular, exceptions, mistakes and deviations from standard procedures
4.333
.5164
6
To avoid interfering in important problems that occur
1.833
.4082
6
To focus on values and beliefs I am most adamant about
4.333
.5164
6
To have a tendency not to be in office when needed
1.333
.5164
6
To look at all aspects of a problem before solving it
4.500
.5477
6
To speak about the future in an optimistic way
4.500
.5477
6
To make people who work with me feel a sense of pride
4.500
.5477
6
To clearly state who will be responsible for all operations in order to be successful in achieving goals
4.333
.5164
6
To wait for a problem to occur before getting involved
1.833
.4082
6
To talk about issues that must be resolved in an enthusiastic
4.667
.5164
6
To stress the importance of having a strong sense of purpose
4.500
.5477
6
To spend time teaching and giving continuous instruction
4.333
.5164
6
manner
W.A.R. Wan Razak
213
To illustrate to everyone what the rewards of success will be
4.333
.5164
6
To express the belief that "if it isn't broken, leave it alone"
1.500
.5477
6
To think for the good of the group rather than self-interest
4.333
.5164
6
To treat others as important individuals rather than just as members of a group
4.333
.5164
6
To show that I solve problems before they become chronic
1.667
.5164
6
To act in a manner that earns the respect of others
4.500
.5477
6
To devote my full attention to correcting mistakes, complaints and
4.500
.5477
6
failures To consider the moral and ethical aspects before making
4.333
.5164
6
To keep track of all mistakes that occur
4.667
.5164
6
To display a sense of power and confidence
4.500
.5477
6
To emphasise the need to communicate a clear vision of the
4.333
.5164
6
future To place importance on various failures in management to meet
4.333
.5164
6
1.500
.5477
6
To be always aware that individuals have different needs, abilities, strengths and aspirations
4.500
.5477
6
To get others to look at problems from many angles
4.333
.5164
6
To assist people in developing their abilities
4.333
.5164
6
To suggest new ways to successfully complete assignments
4.667
.5164
6
To delay answering questions that are urgent
1.333
.5164
6
To stress the importance of a collective understanding of the significance of a mission
4.333
.5164
6
To illustrate satisfaction when others meet expectations
4.333
.5164
6
To express confidence in my ability to meet goals
4.333
.5164
6
To respond effectively to the job-related needs of others
4.333
.5164
6
To use leadership methods that produce satisfactory results
4.333
.5164
6
To make others work beyond their own expectations
4.333
.5164
6
To effectively represent my group with superiors
4.333
.5164
6
To ensure that others are satisfied working with me
4.333
.5164
6
To inspire others to desire more success
4.333
.5164
6
To work effectively according to the organisational needs
4.333
.5164
6
decisions
standards
To avoid making decisions
@ W.A.R. Wan Razak
214
To encourage others to be willing to try harder
4.333
.5164
6
To lead an effective group
4.333
.5164
6
To provide facilities that promote satisfaction with the leadership
4.333
.5164
6
Scale Mean if Item Deleted
Scale Variance if Item Deleted
Corrected Item-Total Correlation
' Cronbach's Alpha if Item Deleted
175.333
57.867
.236
.808
175.167
56.567
.558
.796
178.167
62.167
-.116
.816
175.333
60.667
.066
.810
177.833
64.967
-.557
.823
To focus on values and beliefs I am most
175.333
58.267
.372
.802
adamant about To have a tendency not to be in office when
178.333
59.867
.167
.807
needed To look at all aspects of a problem before
175.167
58.167
.359
.802
solving it To speak about the future in an optimistic way
175.167
58.167
.359
.802
175.167
56.567
.558
.796
175.333
63.067
-.228
.818
achieving goals To wait for a problem to occur before getting
177.833
57.767
.569
.798
involved To talk about issues that must be resolved in
Item-Total Statistics Items
To give assistance to those who are making an effort/trying hard To re-examine important assumptions to question to determine whether they are appropriate To interfere when problems become complicated To focus on problems that are irregular, exceptions, mistakes and deviations from standard procedures To avoid interfering in important problems that OCCUr
To make people who work with me feel a sense of pride To clearly state who will be responsible for all operations in order to be successful in
175.000
58.800
.303
.804
an enthusiastic manner To stress the importance of having a strong sense of purpose To spend time teaching and giving continuous
175.167
56.567
.558
.796
63.067
-.228
.818
instruction To illustrate to everyone what the rewards of success will be To express the belief that "if it isn't broken,
175.333
63.067
-.228
.818
178.167
64.567
-.386
.824
175.333
63.067
-.228
.818
leave it alone" To think for the good of the group rather than
175.333
self-interest
W.A.R. Wan Razak
215
To treat others as important individuals rather than just as members of a group To show that I solve problems before they become chronic To act in a manner that earns the respect of others To devote my full attention to correcting mistakes, complaints and failures To consider the moral and ethical aspects before making decisions To keep track of all mistakes that occur
175.333
To display a sense of power and confidence To emphasise the need to communicate a clear vision of the future To place importance on various failures in management to meet standards To avoid making decisions To be always aware that individuals have different needs, abilities, strengths and aspirations To get others to look at problems from many angles To assist people in developing their abilities
To suggest new ways to successfully complete assignments To delay answering questions that are urgent To stress the importance of a collective understanding of the significance of a mission To illustrate satisfaction when others meet expectations To express confidence in my ability to meet goals To respond effectively to the job-related needs
of others To use leadership methods that produce satisfactory results To make others work beyond their own expectations To effectively represent my group with superiors To ensure that others are satisfied working
with me To inspire others to desire more success To work effectively according to the organisational needs To encourage others to be willing to try harder To lead an effective group
@ W.A.R. Wan Razak
63.067
-.228
.818
178.000
57.200
.512
.797
175.167
58.167
.359
.802
175.167
56.567
.558
.796
175.333
63.067
-.228
.818
175.000
58.800
.303
.804
175.167
56.567
.558
.796
175.333
63.067
-.228
.818
175.333
54.267
.911
.785
178.167
56.567
.558
.796
175.167
56.567
.558
.796
175.333
54.267
.911
.785
175.333
63.067
-.228
.818
175.000
58.800
.303
.804
178.333
54.267
.911
.785
175.333
63.067
-.228
.818
175.333
54.267
.911
.785
175.333
63.067
-.228
.818
54.267
.911
.785
175.333
54.267
.911
.785
175.333
54.267
.911
.785
175.333
54.267
.911
.785
175.333
63.067
-.228
.818
175.333
54.267
.911
.785
175.333
63.067
-.228
.818
54.267
.911
.785
63.067
-.228
.818
175.333
175.333
175.333
216
To provide facilities that promote satisfaction with the leadership
175.333
Scale Statistics Mean 179.667
Variance
Std. Deviation
N of Items
61.467
7.8401
46
W.A.R. Wan Razak
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64.667
-.417
.823
APPENDIX 6
QUESTIONNAIRE
Leadership Style in Malaysia An academic research by:
Wan Ahmad Rudirman Wan Razak MBA 12-07-07 Petaling Indah Condominium, Jalan 1C/149, 47100, Kuala Lumpur Tel: (+6)012-3999516 for the partial requirements of the degree of
Doctor of Business Administration International Graduate School of Management Division of Business and Enterprise University of South Australia
Dear Sir/Madam,
School of I am currently in the final year of my doctoral study at the International Graduate
Management, University of South Australia (UniSA). As such, I am currently undertaking a study in Tenaga Nasional Berhad as on leadership style with focus of interest on middle management part of the requirement for the fulfilment of the degree of Doctor of Business Administration. of This research will be conducted via distribution of questionnaire to those holding the position General Manager or equivalent, which will take approximately 15 minutes. strictly Please be assured that all answers and personal information provided will be treated as
confidential. No information that could lead to the identification of any participants will be released. If wish to withdraw from this study, you may do so at any time you desire.
For your kind information, as far as the study is concerned, there is no possible risk to the participants. However, by participating in this study, the participant will assist the Company to identify and implement the necessary developmental program to the middle management.
of All recorded data and information collected as a part of this study will be kept in the hard disc will be filed the researcher's computer and CD ROM with password for access. Any hard copy for 7 years. Both soft copy and hard copy of
and stored in a safe place for future reference
W.A.R. Wan Razak
218
information will be kept in the researcher's home and at the International Graduate School of Management, University of South Australia for storage. A self addressed stamped envelop will be provided (in the case of postal mail) for the participant to return the questionnaire. However, in cases whereby electronic mail (email) is used, please reply at [email protected]. If you need clarification about this research, please contact: -
Ms Kimberly Larsen, Executive Officer IGSM Human Research Ethics Committee University of South Australia GPO BOX 2471 Adelaide SA 5000 Email: [email protected] Tel: +61 8 8302 0475 Once the research is completed, should you be interested in obtaining a copy of the final report, please contact the researcher at the abovementioned address or telephone number. Your kind cooperation and participation is highly appreciated. Yours faithfully,
Wan Ahmad Rudirman Wan Razak DBA Candidate
© W.A.R. Wan Razak
219
UNIVERSITY OF SOUH AUSTRALIA
International Graduate School of Management
Leadership Style in Malaysia Questionnaire
The objective of this questionnaire is to determine the leadership style adopted by the middle management in Tenaga Nasional Berhad. Please answer all items on this answer sheet. If an item is irrelevant or if you are unsure or do not know the answer, leave the answer blank.
Section A: Leadership styles and outcomes Please indicate ONE response that best describe your agreement to the following statements, by putting an (X) in the relevant boxes.
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
1
2
3
4
5
As a leader, I have:-
1
To give assistance to those who are making an effort/trying hard To re-examine important assumptions to question to determine whether they are appropriate
1.
2. 3.
To interfere when problems become complicated
4.
To focus on problems that are irregular, exceptions, mistakes and deviations from standard procedures
5.
To avoid interfering in important problems that occur
6.
To focus on values and beliefs I am most adamant about
7.
To have a tendency not to be in office when needed
8.
To look at all aspects of a problem before solving it
9.
To speak about the future in an optimistic way
10
.
To make people who work with me feel a sense of pride
W.A.R. Wan Razak
220
2
3
4
5
To clearly state who will be responsible for all operations in order to be successful in achieving
I
I
I
I
I
I
I
I
I
I
goals To wait for a problem to occur before getting
involved To talk about issues that must be resolved in an 13 .
enthusiastic manner To stress the importance of having a strong sense of
14 .
,
17 .
purpose To spend time teaching and giving continuous instruction To illustrate to everyone what the rewards of success will be To express the belief that "if it isn't broken, -leave it alone" To think for the good of the group rather than self-
18.
interest To treat others as important individuals rather than just as members of a group To show that I solve problems before they become
19 .
20 .
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
chronic
To act in a manner that earns the respect of others To devote my full attention to correcting mistakes, complaints and failures To consider the moral and ethical aspects before making decisions
01.
I
I
I
I
To keep track of all mistakes that occur
' To display a sense of power and confidence 26 .
`1'
To emphasise the need to communicate a clear vision of the future To place importance on various failures in management to meet standards To avoid making decisions To be always aware that individuals have different needs, abilities, strengths and aspirations To get others to look at problems from many angles To assist people in developing their abilities
32 .
To suggest new ways to successfully complete assignments
W.A.R. Wan Razak
221
I
I
I
I
1-1 LII 1-1 FT II
33.
To delay answering questions that are urgent
I
I
I
I
To stress the importance of a collective understanding of the significance of a mission To illustrate Satisfaction when Others meet expectations
To express confidence in my ability to meet goals
I
I
I
I
To respond effectively to the job related need's of others. To use leadership methods that produce satisfactory 38 .
results
39.
To make others work beyond their own expectations
40.
To effectively represent my group with superiors
41.
To ensure that others are satisfied working with me
42.
To inspire others to desire more success
To work effectively according to the organisational 43.
44.
needs
To encourage others to be willing to try harder To lead an effective group To provide facilities that promote satisfaction with the leadership
Additional Comments: -
Section B: Demographic Information Please place an (X) in the relevant boxes.
What is your age group?
@ W.A.R. Wan Razak
222
Below 35 years Between 36 to 50 years More than 51 years
How many employees (including yourself) are there in your department? Between 1 to 10 Between 11 to 20 Between 21 to 30 Between 31 to 40
Above 40
Please state your gender Female Male
What is nature or function of your department/division? Human Resources Engineering
Finance/Accounts
Business Development Corporate Communication Investment
Information Technology Others. Please specify:
What is your highest level of education? Diploma and below Bachelor Degree Masters Degree Professional qualification
Doctorate
W.A.R. Wan Razak
223
How long have you been working in the organisation? Less than 1 year Between 1 to 5 years Between 6 to 10 years Between 11 to 15 years More than 15 years
What was your major/field of specialisations? Humanities (e.g. Literature, Language, Philosophy, Arts, History, Music...) ) Life Sciences (e.g. Biology, Medicine, Psychology Physics..) Physical Sciences (e.g. Chemistry, Earth and Space sciences, Mathematics, Communication...) Social Sciences (e.g. Political Science, Law, Business Studies, Sociology, Science) Engineering (Mechanical, Telecommunications, Electrical, Aeronautical, Computer
Others. Please specify.
How long have you been a General Manager? Less than 2 years
Between 2-4 years Between 4-6 years Between 6- 8 years
Between 8-10 years More than 10 years
VVhere have you currently being attached? Tenaga Nasional Berhad TNB Distribution Sdn Bhd TNB Generation Sdn Bhd TNB Transmission Sdn Bhd Other subsidiaries. Please specify.
@ W.A.R. Wan Razak
224
Thank you for your participation in this research
Wan Ahmad Rudirman Wan Razak DBA Candidate
International Graduate School of Management Division of Business and Enterprise University of South Australia
© W.A.R. Wan Razak
225
APPENDIX 7
APPROVAL LETTER FROM TNB
MEMORANDU TEO,AGA MAMMA& BERMAD (200866-W) Ruj, Kami
Tarikh
TNB/SMK(RBS) 15/5110 Bhg 3
: 3( Januari 2005
Encik Wan Ahrnad Rudirrnan bin Wan Razak
Kepada
Tuan,
PERKARA
:
MEMOHON KEBENARAN UNTUK MENJALANKAN KAJI SELIDIK DI TENAGA NASIONAL BERHAD
Rujukan
:
Surat tuan .bedarikh 26 Januari 2005 berhubung perkara tersebut di alas dirujuk.
Kaji Selidlk
:
Menerusi aural tuan, kami telah difahamkan bahawa tuan sedang berada di !alum akhir pengajian ljazah Kedoktoran, Pengurusan Permagaan di University South Australia.
Seperti yang juga dinyatakan dalarn aural tersebut, tajuk kaji selidik tuan
adatah An Exploratory Study of Leadership Style Among the Middle Management in Tenaga Nasional Berhad' dun plhak respunden yang tuan perlukan dari organisasi in adalah mereka yang berjawatan Pengurus Besar atau yang sama pangkat dengannya.
Kebenaran Bersyarat
:
Sukacila dimaklumkan bahawa kebenaran diberi kepada tuan untuk membuat
kajian berkenaan di Tenaga Nasional Berhad melatui pengagihan terus borang kaji selidik atau melalui lamen web dengan radar masa selama 15 minil untuk responden menjawab soalan-soalan di borang kaji selidik berkenaan dengan syarat segala maklumat, nama atau apa-apa maklurnat lain yang tuan lerima berhubung kajian ini tidak diterbilkan, disiarkan atau diumumkan dalam ada-apa terbitan oleh tuan atau University South Australia atau spa-apa badan, selain dart untuk tujuan pengajian teen ("Syaran.
Tindakan
:
Sekiranya tuan bersetuju dengan Syarat seperti yang disebutkan di alas, aria tandatangan surat in clan kembalikan kepada kami di alamat berikut: Pengurus Besar Jabatan Pembangunan Sumber Manusia Bahagian Sumber Manusia Kumpulan Aras 8, Bangunan Ibu Pejabat TNB No. 129 Jalan Bangsar 59200 Kuala Lumpur
ror:nrimparn:
W.A.R. Wan Razak
226
Penghargaan
Akhir sekali, kami ingin mengambil kesempatan ini untuk mengucapkan selamat maju jaya kepada tuan.
'BERSAMA MENUJU KEGEMILANGAN'
Sekian, terima kasih.
(Muhammad Razif bin Abdul Rahman) Pengurus Besar (Pembangunan Sumber Manusia)
bfp Naib Presiden (Sumber Manusia)
Saya, Wan Ahmad Rudirman bin Wan Razak (No. Kad Pengenalan:
7.1)40:;-/
-
- CS-93.?
dengan ni mengaku bahawa saya bersetuju untuk mematuhi Syarat seperti yang disebutkan.
Ditandatangani oleh Wan AhMad-RudiiinaP bin Wan Razak
5744 N - SS-444i,
No. Kad Pengerrga-rr
Dihadapan
Tandaiangan saksi : Nama Saksi:
No. Kad Pengenalan:
i
Skl-tioN
t,1444
110112 - *3
0.1
W.A.R. Wan Razak
227
APPENDIX 8
APPROVAL LETTER FROM TNB (ENGLISH TRANSLATION)
Tenaga Nasional Berhad (200866-W) Our Ref.:
TNB/SMK(RBS)15/5/10 Bhg 3
Date
31 January 2005
To
Mr Wan Ahmad Rudirman bin Wan Razak
Re
APPLICATION TO CONDUCT RESEARCH IN TENAGA
NASIONAL BERHAD
Reference
Reference is made to your letter dated 26 January 2005 pertaining to the
:
above subject matter.
Research
Vide your letter, we were made to understand that you are currently in the final year of the degree program of Doctor of Business Administration at University of South Australia.
:
As mentioned in the abovesaid letter, your title of study is 'An Exploratory Study of Leadership Style Among the Middle Management in Tenaga Nasional Berhad' and the respondents for this study are those holding the position of General Manager or equivalent.
Conditional Approval
We are pleased to inform you that an approval is given to you to conduct the research in Tenaga Nasional Berhad either through direct distribution of
:
questionnaire or web site with an estimation time of 15 minutes for the respondents to answer the questionnaire provided all information, names or any other information received by you resulted from this research will not be published, disseminated or announced in any publication by you or University of South Australia or any organisation, except for the purpose of this research only ("Condition")
Action
:
If you are agreeable with the Condition as mentioned above, please acknowledge by signing this letter and return it to us at the following address: General Manager Department of Human Resource Development
W.A.R. Wan Razak
228
Group Human Resources Division Level 8, Head Office TNB No 129 Jalan Bangsar 59200 Kuala Lumpur
Appreciation
:
We would like to take this opportunity to wish you every success in your undertakings.
"TOGETHER TOWARDS EXCELLENCE"
Thank you.
(Muhammad Razif bin Abdul Rahman) General Manager (Human Resource Development)
for Vice President (Human Resources)
I, Wan Ahmad Rudirman bin Wan Razak (Identity Card No: 720514-11-5549) acknowledge and agree with the Condition stated herein.
Signed by Wan Ahmad Rudirman bin Wan Razak Identity Card No: 720514-11-5549
Witnessed by
Signature of Witness: Name of Witness: Identity Card No:
W.A.R. Wan Razak
229
