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Effects of Leadership Styles on Performance: Transformational Leadership versus Transactional Leadership.

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Abstract

The focus of this study is to compare the effects of leadership styles on the performance outcomes with regard to establishing a connection between the leadership style selected in a company or organization and the ultimate performance outcomes. Specifically, the study will seek to highlight the expected performance outcomes expected when dealing with two, very different, leadership styles, that is transformational and transactional leadership styles. In a bid to stretching the outcomes of this research, the transformational leadership behaviors that were considered included charisma, inspirational motivation, and intellect stimulation. These behaviors seek to define that overall structure of what would be considered as transformational leadership with an intention of establish a clear platform from which to define expected performance. The paper seeks to connect these variables associated with transformational leadership to effectiveness and satisfaction among employees working within an organizational setting to define their expected performance improvements.

On the other hand, the study seeks to evaluate variables associated with transactional leadership that seek to define relevant behaviors, which include constructive reward and management by exception. The consideration of these variables is important for transactional leadership, as they seek to define the way in which transactional leaders are able to maintain their influence over their employees as a way of establishing a clear connection to expected performance outcomes. When considering the transactional leadership behaviors, the key variables of comparison to define that overall improvement in terms of performance were effort, productivity, and loyalty among employees. The study engaged in a survey research design focusing on a Multifactor Leadership Questionnaire (MLQ) administered to participants, in the study, as the primary tool for data collection. Results showed that transformational leadership had a higher level of influence on employees towards improving on their performance outcomes when compared to transactional leadership. That can be seen from the fact that employees reporting to transformational leaders tend to produce a higher quality of work based on the leadership style adopted.

Table of Contents

Abstract

CHAPTER I:  INTRODUCTION

Statement of the Problem

Purpose of the Study

Hypotheses

Importance (Significance) of the Study

Delimitations of the Study

CHAPTER II:  REVIEW OF THE LITERATURE

Study Difference from Others

CHAPTER III:  THEORETICAL FRAMEWORK

CHAPTER IV:  METHODOLOGY

Research Design

Measurement of Variables

Sampling

Research Methods

Plan of Analysis

CHAPTER V:  DATA ANALYSIS

Sample Characteristics

Data Cleaning and Analysis Methods

Analysis Results

1. Higher Quality of Work

2. Productivity among Employees

3. Job Satisfaction

4. Adaptability

CHAPTER VI:  CONCLUSIONS

Introduction

Summary of Findings

Interpretation of Findings and Integration

Recommendations

References

Appendix 1: Questionnaire

The Effects of Leadership Styles on Performance: Transformational Leadership versus Transactional Leadership

CHAPTER I:  INTRODUCTION

The concept of leadership, from a company or organizational perspective, differs depending on the overall structure of understanding projected by individual leaders with regard to their individual expectations. The concept of ‘leadership’ has been used in different frames and perspectives including businesses, politics, and academics among others (Khan & Ismail, 2017). However, one of the key questions to consider in understanding how leadership would be incorporated within different areas is how leadership influences performance. From an organizational perspective, one of the key factors to consider when defining performance is the leadership style selected, as this would seek to define how employees respond with regard to their expected performance outputs. Consequently, this reflects on the fact that leadership styles act as one of the key elements that seek to define expected performance in organizations.

Two particular leadership styles have become common among companies and organizations based on their underlying influence with regard to ensuring that employees improve on their expected performance structures. These two leadership styles are transformational and transactional leadership each of which holds different expectations in terms of leadership behaviors. Transformational leadership refers to a type of leadership in which a leader is able to identify the need for change within an organization and set up the vision to match this need for change (Zagoršek, Dimovski, & Škerlavaj, 2009). In contrast, transactional leadership refers to a specific set of leadership behaviors that focus more on supervision and organization as the key elements that seek to define performance. For this consideration, this study seeks to understand how each of these leadership styles influences performance and their general expectations based on their implementation in companies and organizations.

Statement of the Problem

The main problem that seeks to define the adoption of an effective leadership style is establishing a connection between the leadership style selected and the expected performance outcomes. It becomes much easier for leadership to determine the effectiveness of their leadership styles based on their set goals and objectives in terms of expected performance outcomes. Consequently, this acts as a key problem that this study seeks to evaluate and make logical conclusion, as the study will seek to compare the impacts associated with transformational leadership to those associated with transactional leadership. The long-term effect is that the study will seek to expound on the overall expectations with regard to these two leadership styles and their expected influences with regard to establishing a clear front for enhanced performance. The study seeks to provide leaders with a clear-cut understanding of the influences that each of these leadership styles will have on their employees.

Purpose of the Study

The purpose of this study is to evaluate the effects associated with leadership styles on the expected performance outcomes within a company or organizational setting with an intention of building efficiency when selecting an effective leadership style. The study purposes to define how the selection of a leadership style may influence the overall structure of performance expectations within a company or organization in a bid to defining expected performance outcomes. Specifically, the study will seek to engage readers in an in-depth analysis transformational and transactional leadership styles based on the varied behaviors that leaders, adopting each of these styles, portend with regard to their expected performance outcomes. The study seeks to highlight which of these two leadership styles is expected to have the highest level of influence with regard to improving performance towards what leaders may expect within their varied business environments.

Hypotheses

Based on the expected outcomes of this study, the overall hypothesis is that employees who report to a transformational manager perform their jobs better than employees who report to a transactional manager. That means that the study seeks to reflect on the position that transformational leadership has a higher level of influence with regard to expected performance outcomes when compared to transactional leadership. The hypothesis reflects on this particular position based on the fact that adoption of a transformational leadership style would be considered as more effective in promoting overall efficiency in performance. Under this general hypothesis, the following specific hypotheses were tested:

  1. Employees who report to a transformational manager produce a higher quality work than employees who report to a transactional manager.
  2. Employees who report to a transformational manager are more productive than employees who report to a transactional manager.
  3. Employees who report to a transformational manager are more satisfied with their jobs than employees who report to a transactional manager.
  4. Employees who report to a transformational manager are more adaptable than employees who report to a transactional manager.

Importance (Significance) of the Study

The study is important, as it seeks to highlight specific outcomes depending on the adoption of specific leadership styles, thus, meaning that leaders would need to reflect on the specific outcomes of this study. As has been indicated earlier, one of the key elements that define overall performance or ability to meet set goals and objectives is the leadership style selected. The leadership style selected determines how employees would respond towards given variables within an organization that seek to establish that positive front for efficiency with regard to an improvement in the performance margins. The outcomes of the study will provide leaders with a better understanding of the influence that would be expected of them depending on the leadership style that they selected as part of their leadership.

Delimitations of the Study

Studies on leadership styles tend to provide readers with an expounded understanding of what to expect based on their adoption of varied leadership styles that seek to establish a front for expected performance outcomes. However, this study seeks to limit the overall structure of research towards focusing on transformational and transactional leadership styles with an intention of highlighting how each of these leadership styles would pave the way for overall performance outcomes. The study also seeks to create that general relationship between the performance outcomes in each of these leadership styles to their respective performance outcomes or expectations. That seeks to delimit this study by reflecting on a  focused position with regard to understanding the effects associated with leadership styles on an organizations performance outcomes.

CHAPTER II:  REVIEW OF THE LITERATURE

A review of different literature and sources indicates that research on the effects of leadership styles on expected performance outcomes within companies and organizations has been extensive. Researchers focus much of their attention towards elevating understanding on the influence that leaders have in organizations in their bid to defining performance. According to Khan & Ismail (2017), leadership, in the context of organizations, is defined as one of the most dynamic variables that seek to elevate the understanding of organizational behaviors. Khan & Ismail (2017) extend the understanding of leadership by suggesting that leaders in organizations have an important role in ensuring that they project their influence based on the leadership style that they select. From that view, it is evident that the study seeks to highlight the need for leaders to reflect on the expected influence associated with varied leadership styles, which would allow them to select the most effective styles.

Khan & Ismail (2017) view leadership based on the contextualized approach associated with transformational leadership arguing that this particular model of leadership seeks to create process the influence of major change in an organization. That means that the key element of focus for transformational leaders revolves around their desire to reflect the need for change in an organization. Based on the findings from this study, the key aspect to note is that transformational leadership seeks to create that basic platform from which leaders achieve a higher level of influence on their employees. Khan & Ismail (2017) support the idea of using transformational leadership when compared to any other leadership style on the basis that it seeks to build on an inherent relationship between leaders and their employees. That means that it becomes much easier for leaders to influence their employees towards performance based on the relationships that they create through transformational leadership.

Choi, Kim, & Kang (2017) support the position regarding the effectiveness associated with transformational leadership and its influence on expected performance outcomes by arguing that the main different between transformational and transactional leaders is the motivation levels. When comparing leaders associated with these two leadership styles, one of the key aspects to note is that they tend to portend different modes of motivation with regard to their employees. Choi, Kim, & Kang (2017) argue that transformational leaders tend to show a higher level of motivation for their employees based on the position that these leaders reflect on personal values and beliefs. That means that employees tend to connect with these leaders based on the fact that they believe in the new vision that they adopt in an organization. Employees tend to consider the fact that leaders show their uttermost commitment through transformational leadership, which acts as a key driver towards determining that general connection to the notions of leadership, as well as, defining positive outcomes in terms of performance.

Specifically, Choi, Kim, & Kang (2017) indicate that, transformational leadership seeks to build on the idea that leaders do not only have an important role in providing effective leadership for their employees but must also be willing to adopt measures that would help elevate their employees. The new visions that transformational leaders adopt as part of their connection towards this leadership style pave the way for these leaders to develop that general connection towards the strengths and weaknesses of their employees. Choi, Kim, & Kang (2017) argue that this helps in building on the strengths while minimizing the weakness, thus, elevating the position of an employees within a company or organizational setting. The overall expectation is that this would be of great value towards building effectiveness among leaders by allowing them to establish a progressive avenue for positive outcomes. Ultimately, this builds on higher levels of motivation and morality both among leaders and their followers thereby projecting enhanced performance outcomes from an organizational perspective.

Another study conducted by Hargis, Watt, & Piotrowski (2011) also support the idea of incorporating transformational leadership as a key leadership style within a company and organization based on the overall influence that it seeks to project on individual followers. Hargis, Watt, & Piotrowski (2011) indicate that leaders, who believe in the need for transformational leadership, tend to create an environment for trust, admiration, loyalty, and respect among their followers. These are key elements that seek to define expected performance outcomes from an organizational perspective, as they tend to create an environment for improved performance. That can be seen from the fact that leaders tend to work alongside the employees in a bid to implementing the new vision developed. In that view, this builds an avenue for basic understanding with regard to some of the key expectations associated with each of the leadership elements expected considering that it becomes much easier for employees to connect with the leadership styles projected.

Hargis, Watt, & Piotrowski (2011) stretch the understanding of transformational leadership arguing that the effectiveness of this leadership is evident from the position that it seeks to encourage employees to break away from the traditional modes of functionality. That means that it becomes much easier for employees to adopt change depending on the ability for the leaders involved to engage in this particular structure of leadership that encourages them towards adoption of such changes. Hargis, Watt, & Piotrowski (2011) indicate that the influence of transformational leadership can be seen from the fact that it seeks to pave the way for employees to question assumptions, as well as, reframe the context of problems that they handle in an organizational setting. That means that it becomes much easier for employees to build on their motivation towards performance based on the idea that they are well positioned through transformational leadership.

In contrast, a study conducted by Gyanchandani (2017) indicates that the adoption of transformational leadership tends to create a farfetched approach to leadership attributed to the fact that it seeks to impose a new vision on employees. The study elevates the understanding that improvement in performance would depend wholly on the ability for employees to maintain the same structure of support based on their understanding of general performance expectations. In that view, Gyanchandani (2017) supports the idea of incorporating transactional leadership within an organization arguing that this would be of value towards building on the existing rules and procedures. That means that it becomes much easier for employees to identify with transactional leadership considering that they find themselves in a better position that elevates their understanding of existing rules and procedures. The long-term effect is that these employees would be in a better position to establish themselves with regard to the expected performance outcomes from an organizational perspective.

Gyanchandani (2017) indicates that the adoption of change is inevitable within companies and organizations considering that these companies and organizations tend to reflect on a wide array of changes, which include adoption of technology. However, the dynamic nature of the leadership with these companies and organizations with regard to defining what is expected when embarking on such changes acts as one of the key tools that define performance. Gyanchandani (2017) believes that transactional leadership or leaders that embrace this model of leadership tend to have a better chance of elevating expected performance outcomes depending on their adoption of effective measures for positive performance. The study results sought to highlight that transactional leaders tend to have a higher level of connection with their employees. That is most important variables to consider when intending to define expected performance outcomes associated with each of the leadership styles selected.

Zagoršek, Dimovski, & Škerlavaj (2009) support that general positioning on the concept of transactional leadership in comparison with transformational leadership arguing that this particular leadership style embraces the need for leaders to adopt constructive and corrective behaviors. That means that a transactional leader will focus much of his or her attention towards ensuring that his or her followers understand correct based on the existing rules and procedures. Zagoršek, Dimovski, & Škerlavaj (2009) indicate that corrective behaviors arise from the fact that leaders tend to engage in management by exception, which is an element in building ultimate performance outcomes. From the leadership perspective, it becomes much easier to identify specific areas that employees are experiencing major challenge with regard to their performance outcomes. Thus, this makes it easier for leaders to adopt specific corrective measures that would seek to build on the areas identified as part of improved performance outcomes.

Zagoršek, Dimovski, & Škerlavaj (2009) also embark on an analysis of constructive behaviors, which are key behaviors associated with transactional leaders, arguing that these behaviors focus more on the idea of contingent reward. That means that employees would obtain rewards based on their abilities to perform based on the set out rules and procedures as part of ensuring that they remain motivated towards performance. That is a key element to note and consider when engaging in an analysis of effective leadership, as it seeks to discuss one of the most important roles of leaders in boosting motivation. Zagoršek, Dimovski, & Škerlavaj (2009) argue that the key element of focus when dealing with transactional leadership is that leaders in this particular category of leadership tend to believe in the need for clarification of goal and objectives with regard to expectations in an organization. That means that a leader would focus more on making general clarifications with regard to some of the key expectations for employees in their performance outcomes. The leaders will then adopt strategic measures that seek to provide these employees with reward in the event that they meet the set goals and objectives after the clarification of the same.

Study Difference from Others

This particular study is different from the others, highlighted above, as it seeks to consider both transformational and transactional leadership styles within the same context as part of establishing an understanding of their influence on performance outcomes. One of the key aspects to note from the review of literature is that almost all of the studies seek to provide readers with a general approach to understanding transformational and transactional leadership. That means that it becomes difficult for readers to highlight the relationship between these two leadership styles, as well as, determining which of the two styles is more effective in terms of improving performance. That element has been incorporated within this particular study to allow readers to compare and contrast the two leadership styles based on their varied influence on the expected performance outcomes.

CHAPTER III:  THEORETICAL FRAMEWORK

The theoretical framework associated with this study reflected on two main category of theories, which are transformational leadership theories and transactional leadership theories, each of which presented that general approach towards understanding the two leadership styles. Transactional leadership theories, which are also considered as exchange theories of leadership, reflect on the idea of a transaction between leaders and their followers. That means that the overall of leadership is on a transaction basis considering that leaders tend to consider this as a platform from which to building on a mutual connection towards expected leadership. An example of a transactional leadership theory that seeks to elevate understanding on what to expect from transactional leadership is Abraham Maslow’s Hierarchy of Needs, which is a theory that seeks to highlight needs within different levels (Gyanchandani, 2017). Transactional leaders may use these needs to their advantage as a way of ensuring that they achieve their intended purpose in leadership, which is to promote improved performance.

When using this particular theory, one of the key aspects to note is that leaders tend to take advantage of the varied levels of needs among leaders, which would be of value towards building capacity with regard to a stretched understanding of leadership. Abraham Maslow’s Hierarchy of Needs provides transactional leaders with a better understanding of specific variables that would seek to define performance on an organizational perspective. Transactional leaders are able to use these needs to determine the specific rewards that they would offer to their followers depending on their abilities to meet set goals and objectives. Ultimately, this works as an effective approach towards ensuring that leaders increase their influence on their followers while maintaining that positive structure of connection towards promoting a general improvement in the expected outcomes. Transactional leadership theories seek to suggest the need for followers to understand the value of self-actualization.

In comparison, transformational leadership theories reflect on the fact that the interaction between leaders and their followers is bound by the fact that leaders are able to promote the highest percentage of trust among their followers. That means that followers tend to become more self-aware with regard to the position of their leaders based on the fact that leaders elevate their position towards promoting transformation. An example of a leadership theory adopted in this particular perspective of leadership is Burns Transformational Leadership Theory developed in 1981 by James MacGregor Burns. The theory reflects on one of the fundamental questions that leaders in companies and organizations ought to ask themselves, which is the question on what the ultimate goal of leadership is (Hargis, Watt, & Piotrowski, 2011). In other words, this theory seeks to highlight the overall structure of leadership based on the varied levels of understanding as projected in effective leadership frameworks.

On the other hand, the adoption of transformational leadership theories reflects on trying to understand why one ought to be considered as a leader from a very specific perspective, which is fundamentalism and effective achievement. The theories seek to suggest that in the event that leaders adopt these elements of leadership, it becomes much easier for them to reflect on a positive structure from which to project their personal influence. Additionally, this means that it becomes much easier for leaders to reflect on a generalized platform from which to establish their understanding on what would be considered as effective leadership. Ultimately, this means that leaders would be in a better position from which to build on their structured understanding of transformation within a company or organizational setting. The essence of building on transformational theories in leadership is to work towards ensuring that leaders maintain that element of inspirational nature based on the consideration that they project somewhat charismatic personalities.

CHAPTER IV:  METHODOLOGY

Research Design

The selection of an effective research design is one of the key elements that seeks to define effectiveness with regard to the overall process of research, as the research seeks to create a connection between the variables and the hypotheses. The variations in the research designs depends wholly on the nature of research conducted, as this would define whether a specific research design would be effective in achievement of set research objectives. In this case, the research design selected for the study is a correlational design, which seeks to evaluate the variables statistically as part of an approach towards highlighting the relationship. The variables to consider as part of this study were performance improvement in an organization, transformational leadership, and transactional leadership. The researcher sought to highlight the relationship between these variables by highlighting how transformational and transactional leadership styles would influence an improving in performance within companies and organizations.

On the other hand, the effective of using the correlational research design focused on the fact that it does not seek to evaluate cause and effect when dealing with specific variables in a given research. Instead, this research design seeks to present an observational platform from which to define the overall structure of research specifically focusing on the data collection process. In this case, the nature of information that the researcher sought to collect is general considering that the researcher intended to use a questionnaire. In that view, it is important to consider the position that most of the data and information that the researcher would collect from the research process would focus entirely on observations to help in meeting the intended purpose of research. Thus, this meant that using a correlational research design would pave the way for efficiency with regard to ensuring that the researcher is able to achieve the intended purpose of research.

Measurement of Variables

As part of the measurement of the variables, a survey instrument was used as part of the data generation process with an intention of embarking on effective measurement of the variables in the research. The specific survey instrument used in this particular research was a Multifactor Leadership Questionnaire (MLQ), which sought to building on the understanding of effective leadership. The questionnaire was designed as part of an approach towards ensuring that individual participants in the survey would be able to maintain that general connection to the survey questions presented. The researcher believed in the fact that usage of survey question, in this particular study, would be effective in meeting the general purpose of the study, which was to understand how individuals respond to different styles of leadership. The survey questions presented sought to build on this particular position thereby providing the researcher with viable information to achieve help in measuring the variables.

Sampling

Sampling was one of the key areas that the researcher was able to consider in the research process, as this was important in building reliability and validity of the research results and the overall outcomes of the study. The sample selected for this particular study was employees working within different companies and organizations, as well as, working within different positions. The researcher focused on participants between the age of 24 years and 65 years working in permanent position and having immediate supervisors to whom they report. Regarding the gender of the sample, the researcher selected participants from both genders with an intention of reducing any possibility of bias in the results collected from the sample. The initial sample size selected for this particular study was 150 participants (n=150) but the number of respondents to the questionnaire reduced to 126 (n=126), which was the final sample size for the study.

The selection of the sample for this study occurred through randomized selection in which the researcher embarked on a process within which to select participants randomly using the internet as a tool for research. The selection of the participants was through an internet research platform that sought to connect the participants and the researcher with the sole intention of ensuring that the participants achieves intended research objectives. The main idea of having to engage in randomized selection of the participants sought to build on an effective position from which the researcher would be able to minimize on the possibility of reduced reliability or validity of the research results. However, it is important to take note of the fact that the population or group from which the sample was selected is unknown attributed to the overall number of employees working within different companies and organizations that were within the researcher’s area of focus.

Research Methods

Another key aspect that the researcher considered as being important in this particular study is the research method selection, as this would play a central role in defining the overall structure of information that the researcher was able to gather from the sample selected. The research method adopted in this particular study was survey with the researcher focusing more on the idea of using a questionnaire as a basic tool for data collection. The main reason why the researcher believed it was important to use a survey, as the main research method, was due to the nature of information that the researcher sought to gather from the participants. Using a questionnaire, it becomes much easier for a researcher to govern the nature of responses given by individual participants in a study. The researcher considered that element as being important in building that basic understanding on the foundations of research.

After the selection of participants for the study, each of the participants received a questionnaire that he or she was expected to respond and return to the researcher. The selection of the participants was a crucial part of the research process during which time the researcher was able to define the sample for this particular study. As indicated, the researcher and the participants interacted through an internet research platform, thus, meaning that the researcher sent the questionnaires to the participants via email. The researcher did not limit the time that the participants were expected to respond to the questionnaire, as this would have impact on their position with regard to accuracy in the responses given. Instead, the researcher provided the participants with an ample platform from which to provide responses to the survey questions. After receiving the questionnaires, the researcher sought to comply the information based on the responses as part of creating ease in the data analysis process, which is a key process in any given research process.

Plan of Analysis

In the data acquisition and management process, the researcher coded the data collected based on the respondent as a way of ensuring that the data presentation process is effective as part of the research process. The researcher also sought to create table from which to input all the data collected from the respondents, which was important for the researcher in promoting effectiveness in the data presentation process. Regarding the data analysis methods utilized in the study, the researcher used correlations and ordinary least squares (OLS) multiple regression data analysis models. The key element of focus with regard to these data analysis methods is that they played a key role in highlighting the relationship between the variables with an aim of supporting the hypotheses presented based on data collected from the participants.

CHAPTER V:  DATA ANALYSIS

Sample Characteristics

The first step to consider, as part of the data analysis process, is highlight the characteristics associated with the sample, as this would be of value towards evaluating specific elements associated with the motivation towards enhanced performance. When collecting data from the participants, the researcher was able to record relevant data focusing on the sample that would be presented within this particular section. The presentation of this data reflects on the entire sample identified for the research regardless of the fact that some of the participants made the decision not to response to survey questions provided. Another key aspect to note is that the researcher was not able to gather information on the entire population, thus, creating some form of challenge in the process of providing a comparison of the sample characteristics to those of the population. However, the researcher was able to gather basic information regarding the demographics of the working population, which sought to suggest that there are more male workers when compared to women.

The sample selected for this particular study was n=150 of which 86 participants were male (57.33%) with 64 participants being female (42.67%). The researcher believed that the variation with regard to the gender of the participants arose from the fact that the general characteristic associated with the working population is represented in the same manner. Regarding the age of the participants, 2 participants were under the age of 25 years (1.33%), 68 participants were between the age of 25 and 34 years (45.33%), 24 participants were between the age of 35 and 44 years (16%), 36 participants were between 45 and 54 years (24%), and 20 participants were over the age of 55 year (13.33%). Comparison with regard to age was important for this research, as it sought to highlight the approximate years of experience in a working environment for each of the participants involved in the study.

Another key demographic that the researcher sought to record with regard to the participants involved in this study was the marital status, as this was considered as key element that would define overall motivation towards enhanced performance. From the responses given 62 participants indicated that they were single (41.33%), 28 participants indicated that they were married (18.67%), 46 participants indicated that they were divorced (30.67%), and 14 participants indicated “other” as part of their marital status (9.33%). Lastly, the researcher sought to evaluate the participants’ annual household income, which would also act as a key determinant of their motivation towards performance. From the responses given, 71 participants indicated that the receive less than $30,000 (47.33%), 63 participants recorded $30,000-49,999 (42%), 12 participants indicated $50,000-69,999 (8%), 3 participants indicated $70,000-89,999 (2%), and 1 participant indicated $90,000 + (0.67%). From these demographics, it is important to point out that the participants were from different socio-economic environments, which played a key role in building capacity for improved reliability and validity of the results.

Data Cleaning and Analysis Methods

When focusing on data cleaning, one of the key elements of consideration is that the researcher used tables as part of inputting the data collected. Usage of tables is important, as it helped in ensuring that the data input process did not have any errors that would seek to impact on expected outcomes with regard to highlight the correlation between the variables. Immediately after the data collection process, the researcher embarked on a process focused on effective data  inputting on the tables created depending on each of the variables measures using the data collection instrument, Multifactor Leadership Questionnaire (MLQ). The key element of focus for the researcher was to eliminate any possibility of data duplication, as this would have a major impact towards effective overall analysis of the data.

The researcher focused on recording both the dependent and independent variable separately within the tables before embarking on a process of consolidation of the data, as this would be of value in building effectiveness in the data analysis process. Data consolidation was important in this particular study considering that the researcher expected to separate the participants into two research groups for effective comparison of results based on the expected. On the other hand, recording of the data separately was important for the researcher, as it help in eliminating any possibility of confusion with regard to the data focusing on the dependent and independent variables. In other words, data from each of these variables would be analyzed separately with the sole intention of building that effective platform from which to project positive outcomes focusing on the key variables considered.

After consolidation of the data from the 126 participants involved in the study, the researcher was able to assign each of the participants a different group named, Respondent Group 1 (RG1) and Respondent Group 2 (RG2). The assigning of participants to a group focused more on the responses given with the researcher focusing on finding any given similarities in the responses. Each of these groups represents responses that are somewhat similar with regard to the responses given, thus, paving the way for efficiency in the data analysis process. In this particular study, the questionnaire given was closed-ended meaning that the participants were limited with regard to the answering of their questions. However, the researcher focused on the answers given as part of finding that general element of similarity in the responses. Ultimately, this paved the way for assigning participants to one of the two groups, that is RG1 and RG2, as indicated above.

Analysis Results

The analysis will focus on providing average responses (AR) focusing on the two leadership styles, transformational and transactional leadership, based on the two response groups. The analysis will focus on evaluating each of the hypotheses separately to determine whether the data supports the hypotheses as part of the research process.

1.      Higher Quality of Work

Respondent Group (RG) Average Response (AR) Transformational Average Response (AR) Transactional
Respondent Group 1 (RG1) 3.9 2.1
Respondent Group 2 (RG2) 3.5 2.0

Table 1: Responses on Higher Quality of Work

In this table above, one of the key aspects note is that data gathered from the two response groups, RG1 and RG2, seek to suggest that employees tend to incline more towards leaders that portray transformational leadership. The average response among the groups seeks to indicate that employees tend produce a higher quality of work in the event that their immediate supervisors project transformational leadership. The response focusing on transactional leadership remains constant within the two response groups but is much lower when compared to the average responses for transformational leadership.

2.      Productivity among Employees

Respondent Group (RG) Average Response (AR) Transformational Average Response (AR) Transactional
Respondent Group 1 (RG1) 3.9 1.6
Respondent Group 2 (RG2) 4.2 1.4

Table 2: Responses on Productivity Levels

In this table, the key element of focus was evaluating the impact of transformational and transactional leadership styles on the overall productivity levels among individual employees working within company and organizational setting. Similar to the previous responses, this table seeks to suggest that employees tend to become more productive when exposed to transformational leaders. That is evident in both response groups, both of which have a higher average in terms of their responses when compared to the average responses associated with transactional leadership. That seeks to suggest that adoption of transformational leadership is expected to have a higher impact capacity among employees with regard to ensuring that they achieve higher productivity levels.

3.      Job Satisfaction

Respondent Group (RG) Average Response (AR) Transformational Average Response (AR) Transactional
Respondent Group 1 (RG1) 3.6 2.4
Respondent Group 2 (RG2) 3.7 2.1

Table 3: Responses on Job Satisfaction

The table seeks to evaluate the overall perception that employees may have with regard to their job satisfaction when dealing with managers that project transformational and transactional leadership styles. From the analysis of the results, the two response groups suggested that the overall response levels when dealing with transformational leaders is much higher when compared to the response levels when dealing with transactional leaders. That can be attributed to the fact that transformational leaders tend to create a conducive environment from which employees are able to improve on their performance outcomes. However, this is an element that cannot be verified through this study considering that the questions presented within the questionnaires were closed-ended, thus, limiting the responses given.

4.      Adaptability

Respondent Group (RG) Average Response (AR) Transformational Average Response (AR) Transactional
Respondent Group 1 (RG1) 3.6 2.4
Respondent Group 2 (RG2) 3.7 2.1

Table 4: Responses on Adaptability

From the analysis of the results, one of the key aspects to note was the fact that the results are very similar to those presented with regard to job satisfaction levels among employees depending on their exposure to managers that portray transformational and transactional leadership styles. The responses from the questionnaires, given out to respondents, indicate that the majority of the respondents were able to develop a higher level of adaptation capacities when dealing with transformational leaders. It is equally important to take note of the fact that the average response when dealing with transactional leader is notable, thus, meaning that some of the respondents may incline towards this leadership style if given an opportunity. However, in this case, the overall structure of response indicates that transformational leaders are better in promoting adaptability among employees.

CHAPTER VI:  CONCLUSIONS

Introduction

Leadership styles play a central role in defining performance within organizations, as they seek to define the overall levels of effectiveness associated with individual leaders based on the individual expectations in building positive platform for performance. When understanding the influence that leaders have in a company or organization, the key element to consider is whether these leaders understand the value associated with their varied leadership styles. The purpose of this study is to evaluate the effects associated with leadership styles on the expected performance outcomes within a company or organizational setting with an intention of building efficiency when selecting an effective leadership style. The study purposes to define how the selection of a leadership style may influence the overall structure of performance expectations within a company or organization in a bid to defining expected performance outcomes. The study focuses on two key leadership styles, transformational and transactional leadership in defining the overall effectiveness of both in promoting performance improvements.

Based on the expected outcomes of this study, the overall hypothesis is that employees who report to a transformational manager perform their jobs better than employees who report to a transactional manager. The hypothesis seeks to suggest that transformational leadership tends to have a higher level of influence towards improved performance when compared to the transactional leadership style. Under this general hypothesis, the following specific hypotheses were tested:

  1. Employees who report to a transformational manager produce a higher quality work than employees who report to a transactional manager.
  2. Employees who report to a transformational manager are more productive than employees who report to a transactional manager.
  3. Employees who report to a transformational manager are more satisfied with their jobs than employees who report to a transactional manager.
  4. Employees who report to a transformational manager are more adaptable than employees who report to a transactional manager.

Summary of Findings

In Chapter 5 of this study, the key focus was on the influence associated with the leadership styles towards ensuring that the quality of work improves, employees become more productive, employees have a higher satisfaction level, and highlighting adaptability. The study sought to highlight the responses that each of the participants presented with regard to the influence associated with transformational and transactional leadership styles on these elements of company and organizational performance. Regarding the quality of work, the results indicated that employees tend to produce a better quality of work in the event that they are exposed to transformational managers when compared to exposure to transactional managers. The results, from the two response groups, indicated that employees tend to understand the need to produce better quality of work based on the overall structure of leadership associated with transformational leadership.

When focusing on the impacts of leadership styles of productivity, the results indicated that employees tend to show a higher level of productivity in cases where they are dealing with transformational managers when compared to dealing with transactional managers. Although the questions, in this particular survey, were closed-ended, the responses given by the participants indicated that they incline more towards transformational leaders. That can be attributed to a wide array of factors associated with the concept of maintaining transformational leadership in the context of employee management. However, this result builds on the fact that the productivity levels tend to have a clear-cut connection towards the leadership style adopted. In the third element, job satisfaction, the results from the study indicated that employees that deal with transformational leaders tend to have a higher satisfaction levels with regard to their respective roles.

That means that by embracing transformational leadership, managers are able to pave the way for their employees to develop a close connection with their respective duties and responsibilities. In the long-term, this is expected to build on better value with regard to ensure that these employees improve on their satisfaction levels significantly, which, in turn, plays a central role towards improving overall functionality. Lastly, the study sought to establish a connection between leadership styles and overall adaptability among employees with regard to their roles in companies and organizations. Based on the results, it was clear that employees working for transformational managers tend to have a higher capacity to adapt to their varied environments. That is different when compared to employees working for transactional leaders, who are less likely to adapt to specific environments. The findings may arise from the fact that transformational leaders tend to understand the need for adoption of a new vision on an organizational perspective.

Interpretation of Findings and Integration

The findings from this study indicate that transformational leadership seeks to create that basic platform from which leaders achieve a higher level of influence on their employees. That means that employees tend to connect with these leaders based on the fact that they believe in the new vision that they adopt in an organization. The new visions that transformational leaders adopt as part of their connection towards this leadership style pave the way for these leaders to develop that general connection towards the strengths and weaknesses of their employees. transformational leadership, tend to create an environment for trust, admiration, loyalty, and respect among their followers. In that view, this builds an avenue for basic understanding with regard to some of the key expectations associated with each of the leadership elements. Based on these findings, it is evident that adoption of transformational leadership will present a much more viable option for leaders and managers in their bid to promoting and improving performance outcomes.

Recommendations

Based on the findings, it is important to provide key recommendations for practice and future research focusing on self-reflective analysis of the results. For practice, the main recommendation is for leaders and managers to reflect on the importance associated with transformational leadership in their bid towards promoting overall improvements in performance. From the findings, it can be noted that transformational leadership presents a much better option when compared to transactional leadership when focusing on the four key elements that define performance. Thus, this means that by allowing leaders and managers to adopt the transformational leadership style, it becomes much easier to establish a connection between leadership and company or organizational performance. These leaders are able to drive performance depending on their intended goals and objectives, as well as, reflective on the expected objectives.

Additionally, leaders may also reflect on the need for incorporating some of the key elements associated with transformational leadership within different areas of their leadership, as this would help build on their influence. The main expectation for a leader is that he or she must have a high level of influence, which would arise from the fact that a leader is able to promote or define transformation. For future research, one of the key elements that researchers may consider is trying to find how transactional leadership, within itself, is of value in organizations as part of building or paving the way for effective performance. One of the key aspects to note is that although transformational leadership is better in terms of performance improvement when compared to transactional leadership, reshaping different levels of transactional leadership may help in promoting its effectiveness. That creates the need for researchers to evaluate how these elements may be reshaped towards improving effectiveness of this particular leadership style from an organizational perspective.

References

Choi, S. B., Kim, K., & Kang, S. W. (2017). Effects of transformational and shared leadership styles on employees’ perception of team effectiveness. Social Behavior and Personality: an international journal, 45(3), 377-386.

Gyanchandani, R. (2017). The Effect of Transformational Leadership Style on Team Performance in IT Sector. IUP Journal of Soft Skills, 11(3), 29-44.

Hargis, M. B., Watt, J. D., & Piotrowski, C. (2011). Developing leaders: Examining the role of transactional and transformational leadership across business contexts. Organization Development Journal, 29(3), 51-66.

Khan, S. A., & Ismail, W. K. W. (2017). To Evaluate The Impact Of Transformational Leadership On Organizational Learning. CLEAR International Journal of Research in Commerce & Management, 8(9), 1-6.

Zagoršek, H., Dimovski, V., & Škerlavaj, M. (2009). Transactional and transformational leadership impacts on organizational learning. Journal for East European Management Studies, 14(2), 144-165.

Appendix 1: Questionnaire

Q6. INSTRUCTIONS: Please select the number that corresponds with the answer that BEST describes you. Please select only ONE answer per question.

1.   Very Low

2.   Low

3.   Neither High nor Low

4.   High

5.   Very High

Q1. How would you rate your motivation to achieve productivity related performance goals?

1- Very Low (1)

2 – Low (2)

3 – Neither High nor Low (3)

4 – High (4)

5 – Very High (5)

Q2. How would you rate your motivation to achieve work quality related performance goals?

1 – Very Low (1)

2 – Low (2)

3 – Neither High Nor Low (3)

4 – High (4)

5 – Very high (5)

Q3. How satisfied are you with your job?

1 – Very Low (1)

2 – Low (2)

3 – Neither High Nor Low (3)

4 – High (4)

5 – Very high (5)

Q4. How well do you adapt to changes at work?

1 – Very Low (1)

2 – Low (2)

3 – Neither High Nor Low (3)

4 – High (4)

5 – Very high (5)

Q5. How would you rate your performance from the perspective of leadership?

1 – Very Low (1)

2 – Low (2)

3 – Neither High Nor Low (3)

4 – High (4)

5 – Very high (5)

Q7. For the purpose of this study, “leaders” focus on leading employees by inspiring them and “managers” focus on managing employees by running day to day operations smoothly. My Supervisor is more like a …..

Leader (1)

Manager (2)

Q9 INSTRUCTIONS: Please select the selection that corresponds with the answer that BEST describes you. Please select only ONE answer.

1. Strongly disagree

2. Disagree

3. Neither agree nor disagree

4. Agree

5. Strongly agree

Q8 1. I perceive my supervisor more as a leader than a manager. (For the purpose of this study, “leaders” focus on leading employees by inspiring them and “managers” focus on managing employees by running day to day operations smoothly.)

1- Strongly Disagree (1)

2 – Disagree (2)

3 – Neither agree or disagree (3)

4 – Agree (4)

5 – Strongly agree (5)

Q10 2. My supervisor motivates me to put forth all my effort toward work assignments.

1- Strongly Disagree (1)

2 – Disagree (2)

3 – Neither agree or disagree (3)

4 – Agree (4)

5 – Strongly agree (5)

Q11 3. I feel encouraged to create positive relationships with my co-workers.

1- Strongly Disagree (1)

2 – Disagree (2)

3 – Neither agree or disagree (3)

4 – Agree (4)

5 – Strongly agree (5)

Q12 4. I feel my supervisor cares about my well-being at work.

1- Strongly Disagree (1)

2 – Disagree (2)

3 – Neither agree or disagree (3)

4 – Agree (4)

5 – Strongly agree (5)

Q13 5. My supervisor only cares about meeting deadlines.

1- Strongly Disagree (1)

2 – Disagree (2)

3 – Neither agree or disagree (3)

4 – Agree (4)

5 – Strongly agree (5)

Q15 THE FOLLOWING QUESTIONS ARE FOR STATISTICAL PURPOSES ONLY. SELECT THE ARROW TO CONTINUE

Q14. GENDER

Female (1)

Male (2)

Q16. AGE

Under 25 (1)

25-34 (2)

35-44 (3)

45-54 (4)

55+ (5)

Q17. MARITAL STATUS

Single (1)

Married (2)

Divorced (3)

Other (4)

Q18. WHAT IS YOUR ANNUAL HOUSEHOLD INCOME?

Less than $30,000 (1)

$30,000-49,999 (2)

$50,000-69,999 (3)

$70,000-89,999 (4)

$90,000 + (5)

Q19 THANK YOU VERY MUCH FOR COMPLETING THIS QUESTIONNAIRE



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