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Relationship between leadership styles and organizational performance<br />

​Adam Mohamud Ali and Abdukadir Mohamed Abdullahi<br />

SIMAD UNIVERSITY 2016<br />

ABSTRACT<br />

The study focuses the relationship between leadership styles specially the transformational and<br />

transactional leadership styles and Mogadishu municipality performance; it explores the effect of<br />

each municipal leadership style on the effectiveness and efficiency of Mogadishu municipality.<br />

The study conveys the clear and stable role of effective leadership model and how that can effect<br />

the degree of organizational performance, the study tests performance-maintenance theory and<br />

survey was used to collect data through questionnaires.<br />

The major findings of this research showed there is a significant relationship between<br />

transformational leadership style and Mogadishu municipality performance (r=.683,p .000), also<br />

the transactional leadership style was studied and proved that there is a positive relationship<br />

between transactional leadership style and Mogadishu municipality performance (r.608, p .000).<br />

and it is also a prove that both transformational and transactional leadership styles are adopted in<br />

the municipality.<br />

This study is crucial for top managers in Mogadishu municipality to enhance the performance of<br />

the organization by increasing the involvement of these two models in their relationship with<br />

organizational members and staff.<br />

1


CONTENTS<br />

TABLE OF FIGURES 3<br />

CHAPTER ONE 3<br />

INTRODUCTION 3<br />

1.1 Background of the study 3<br />

1.2 Statement of problem 3<br />

1.3 Purpose of the research 3<br />

1.4 Objectives of the study 3<br />

1.5 Research questions 3<br />

1.7 Scope of the research 3<br />

1.8 Significance of the research 3<br />

1.9 Operational definitions 3<br />

CHAPTER TWO 3<br />

LITERATURE REVIEW 3<br />

2.1 Introduction of leadership: 3<br />

2.2 Definitions and concept of leadership 3<br />

Characteristics of transformational leadership 3<br />

Idealized Influence 3<br />

Inspirational Motivation 3<br />

Intellectual Stimulation 3<br />

Individualized Consideration 3<br />

Characteristics of transactional leadership 3<br />

2.3 Comparison between transactional leadership and transformational 3<br />

2.4 Definitions and Concepts of Organizational Performance 3<br />

2.5 Key Measurements of Organizational Performance 3<br />

2


2.6 Organizational Performance Characteristics 3<br />

2.7 Leadership and organizational performance 3<br />

2.8 Conceptual framework and hypothesis 3<br />

2.8.1 Statement of Hypothesis 3<br />

2.9 Summary 3<br />

Conclusion 3<br />

CHAPTER 3 3<br />

METHODOLOGY 3<br />

3.0 Introduction 3<br />

3.1 Research design 3<br />

3.2 Research population 3<br />

3.2.1 Sample size 3<br />

3.2.2 Sampling procedure 3<br />

3.3 Research instrument 3<br />

3.4 Reliability and validity test 3<br />

3.5 Data gathering procedure 3<br />

3.6 Data Analysis 3<br />

3.7 Ethical Consideration 3<br />

3.8 Limitations of the Study 3<br />

CHAPTER FOUR 3<br />

DATA ANALAYSIS AND INTERPRETATION 3<br />

4.0 Introduction 3<br />

4.1 Demographic Characteristics Of The Respondents 3<br />

4.4 Regression analysis 3<br />

4.4. Major Findings 3<br />

4.4 Discussion 3<br />

3


5.0 Introduction 3<br />

5.1 Conclusions Of The Study 3<br />

Implications of the study 3<br />

Implications in practice 3<br />

Implications in theory 3<br />

5.2 Recommendations 3<br />

Recommendations for the research 3<br />

Recommendations for practice 3<br />

APPENDIX A 3<br />

Time Framework 3<br />

APPENDIX B 3<br />

Budget (expenses incurred) 3<br />

References 3<br />

4


TABLE OF FIGURES<br />

Table 1 comparison between styles……………………………………………………………..18<br />

Table 2 descriptive ranges……………………………………………………………………….40<br />

Table 3 demographics……………………………………………………………………………43<br />

Table 4 leadership descriptives…………………………………………………………………..45<br />

Table 5 organizational performance description………………………………………………....47<br />

Table 6 correlation coefficient…………………………………………………………………..49<br />

Table 7 hyothesis test……………………………………………………………………………49<br />

5


CHAPTER ONE<br />

INTRODUCTION<br />

1.1 Background of the study<br />

Leadership has been a central, but sometimes controversial, topic in organizational research<br />

(e.g., Chemers, 2000; Hogan, Curphy, & Hogan, 1994; House & Aditya, 1997; Judge & Piccolo,<br />

2004; Khurana, 2002; Meindl, 1990). for at least the past thirty years, the concept of leadership<br />

has been subject to criticism and marginalization by the dominant organizational paradigms and<br />

perspectives” (Podolny, Khurana, & Hill-Popper, 2005).Part of this controversies has resulted<br />

from questions from the difinitions of whether leadership has the ultimate effect on<br />

organizational outcome (Hannan & Young, 1984; Pfeffer, 1977). Proponents of leadership argue<br />

that leaders have important role and responsibility that help their organizations succeed in<br />

achieving their enabled objectives (e.g., Bass, 1991; Waldman & Yammarino, 1999). In contrast,<br />

organizations are viewed as heavily constrained and that leadership is largely irrelevant and, at<br />

best, a social construction (e.g., Hannan & Freeman, 1989; Meindl, 1990).<br />

In the western world leadership influence in large complex organizations, is assumed<br />

commonly to be greatly significant (liberson & f. o'connor, 1972), but One must consider that<br />

organisational performance may be influenced by a number of factors, such as, the employees’<br />

high satisfaction with their jobs, high commitment to their organization, high motivation to serve<br />

the public and strong intentions to work for the organization willingly and devotedly (Kim, 2005,<br />

p245).<br />

In fast growing economies like Turkey Leadership capability and styles are widely considered a<br />

critical variable in the success of small and medium businesses, which are more vulnerable to<br />

market fluctuations and competition. (Sexon & Bowman, 1985).<br />

Kenyan studies found that leadership style behaviors jointly predict organizational performance.<br />

The study concluded that six leadership styles behaviors should be employed by the Banks’<br />

management in order to perform stronger in the competitive environment (Samaitan, 2014).<br />

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Performance-maintenance (PM) Theory of leadership beginning with replications of the<br />

experimental study by Kurt Le win et al in 1939, the PM theory of leadership has been developed<br />

in Japan as an extensive interdisciplinary and intercultural approach to leadership. The primary<br />

Japanese-born theory of leadership is expressed by Misumi (1995). Misumi carried out<br />

wide-scale research on over 5,000 Japanese workers and managers, and analysed the results<br />

according to two metrics: Performance (P), and Maintenance (M). Performance is concerned<br />

with the achievement of goals, particularly goals relevant to the work group; Maintenance is<br />

concerned with the cohesion of the work group. The original paper which proposed the theory<br />

((Misumi, 1964)) explains the distinction as follows: Assuming three types of leadership, P, M,<br />

and PM, we experimentally analyzed their relationship with the productivity of the group. P-type<br />

corresponds to conventional “autocratic” or “work-centered” type. M-type corresponds to<br />

“democratic” or “human-relation-centered” type, and PM-type is both work and human relation<br />

centered. The results obtained at a governmental training institution showed that PM type<br />

leadership was most effective in terms of both productivity and group moral. Another study<br />

conducted with eight groups of coal mine workers confirmed that also PM style of leadership has<br />

an effective impact on the organizational performance.<br />

Leader means the person with followers (drucker, 1991).<br />

Leadership, as defined by Northouse (2004), is a process whereby an individual influences a<br />

group of individuals to achieve a common goal. Leadership style is the way in which that process<br />

is carried out. Leadership as viewed by Kouzes and Posner (1987) is an ongoing process of<br />

building and sustaining a relationship between those who aspire to lead and those willing to<br />

follow. Performance refers to both behaviors and results, and adjusting organizational behaviors<br />

and actions of work to achieve results or outcomes (Brumbach (1988), as cited in Armstrong<br />

(2001)),<br />

Leadership in public service is defined as Leadership may be defined as a collection of skills and<br />

actions that encourage broad-based participation, facilitate consensus building, distribute shared<br />

responsibility, develop new leaders and enable groups to work effectively to achieve their shared<br />

goals in serving society( h. Aref kashfi,2007).<br />

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Koontz and Donnell (1993) define organizational performance as the ability of an enterprise to<br />

achieve such objectives as high profit, quality product, large market share, good financial results,<br />

and survival at pre-determined time using relevant strategy for action.<br />

Performance is the accomplishment and execution of tasks. According to (Albrecht (2011),<br />

performance is the extent to which an organization achieves a set of pre-defined targets that are<br />

unique to its mission. Leadership style is a key determinant of the success or failure of any<br />

organization.<br />

The performance leadership function (P) is oriented toward goal achievement or problem<br />

solving, and the maintenance leadership function (M) oriented toward preserving group social<br />

stability (el, 1939).<br />

Our research will use the leadership as defined by Northouse (2004), is a process whereby an<br />

individual influences a group of individuals to achieve a common goal, whereas organizational<br />

performance as defined by Koontz and Donnell (1993) that organizational performance is the<br />

ability of an enterprise to achieve such objectives as high profit, quality product, large market<br />

share, good financial results, and survival at pre-determined time using relevant strategy for<br />

action. Leadership style and organizational performance is a necessary topic for discussion since<br />

it is helpful for any organization whether public or private to know how the functions and<br />

qualities of leadership needed to boost organizational performance and we also chose Mogadishu<br />

public departments as our research cite because of the weak functions of our institutions.<br />

1.2 Statement of problem<br />

Today organizational leadership is transformed organizations to a place where people are<br />

empowered, motivated and supported in their personal and professional growth throughout their<br />

careers this has contributed to the enhancement of organizational performance (Gregory Stone,<br />

Kathleen Patterson, 2005).<br />

However, when we talk about Mogadishu municipality, lack of motivation, empowerment, and<br />

support for the employees has caused decline on the effectiveness and efficiency of Mogadishu<br />

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municipality, therefore our research aims to find the appropriate leadership style that can boost<br />

municipality performance so that the service quality of the municipality becomes satisfactory.<br />

1.3 Purpose of the research<br />

This study examines leadership style and organizational performance testing PM theory of<br />

leadership in Mogadishu municipality, our current research spells PM theory of leadership in<br />

enhancing performance of Mogadishu municipality departments in Mogadishu Somalia.<br />

1.4 Objectives of the study<br />

The specific objectives of this study include:<br />

I. To determine how transformational leadership style can influence organizational<br />

performance.<br />

II. To examine if transactional leadership style can effect organizational<br />

performance.<br />

1.5 Research questions<br />

I. Does transformational leadership style increase organizational performance?<br />

II. Is transactional leadership style boost organizational performance?<br />

1.7 Scope of the research<br />

This study aimed to investigate the effect of leadership style on organizational performance in<br />

Mogadishu municipality and it is mainly focused on the effect of leadership style on the<br />

efficiency, and effectiveness in Mogadishu municipality, by testing performance and<br />

maintenance theory of leadership. this study was conducted at the SIMAD University in<br />

Mogadishu as part of Bachelor degree fulfillment at faculty of social science in between<br />

September 2015 and September 2016, the study is cross sectional study which utilizes<br />

questionnaire to collect data.<br />

1.8 Significance of the research<br />

This study is emphasizes Performance-Maintenance theory by giving a new insight in Somalia,<br />

since the Performance-Maintenance theory has been neglected for a while, however this study<br />

proves the theory is effective in every day organizational activities, our research is also a<br />

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stronghold position for anyone interested in further investigation that will enable many<br />

organizations in Mogadishu apply different researched leadership practices to enhance<br />

organizational performance.<br />

We have a very strong feeling that this research will help public institutions in Mogadishu<br />

especially Mogadishu municipality and beyond develop a sense of simplicity over the functions<br />

and quality of service they are acquired to serve the nation since our study posits a framework of<br />

studied styles of leadership and clarifying its powerful influence on organizational efficiency,<br />

productivity and growth.<br />

This study is also an enabling tool for students who are interested in knowing much about<br />

leadership and performance from variety of angles since we provide a distinctive approach for a<br />

topic that passed the horizon for wide range of disputes, our study however shortens precisely the<br />

scope for students and researchers using a dependable data and analysis. There by simplifying<br />

the interpretation of the findings and understanding of the research result.<br />

1.9 Operational definitions<br />

The only definition of a leader is the one who has followers (Drucker, 1991).<br />

Leadership in public service is defined as Leadership may be defined as a collection of skills and<br />

actions that encourage broad-based participation, facilitate consensus building, distribute shared<br />

responsibility, develop new leaders and enable groups to work effectively to achieve their shared<br />

goals in serving society.<br />

Organizational performance is the ability of an organization to achieve such objectives as high<br />

productivity, efficiency and survival at pre-determined time using relevant strategy for action.<br />

Efficiency: the ability to do something without wasting materials, time or energy, it is defined as<br />

a term practiced by organization or firm to use people and resources to carry out important<br />

operations in way which minimizes the costs.(Karamat, 2013).<br />

Effectiveness: organization is the degree to which it moves toward the attainment of its mission<br />

and realizes its goals(Mc et al., 2014)<br />

10


CHAPTER TWO<br />

LITERATURE REVIEW<br />

2.1 Introduction of leadership:<br />

In this chapter the researchers will focuses on to review prior literature that related to the<br />

concept of leadership styles and organizational performance in Mogadishu –Somalia, this<br />

chapter will focuses on five sections that is very important ,firstly it reviews the definitions of<br />

independent variables followed by styles of leadership and its characteristics. Secondly it<br />

studies literature of organizational performance followed by characteristics of organizational<br />

performance. The Third section presents prior literature of the relationship between the two<br />

variables leadership and organizational performance. Fourth section the study presents and<br />

explains the conceptual framework of the study. And the last section presents summary and<br />

conclusion of the chapter.<br />

2.​2 Definitions and concept of leadership<br />

​Leadership as “followers are central to leadership because they are significantly involved<br />

in the negotiations central to the transactions of power they have minds of their own”. (Burn,<br />

1978) Leadership refers to the behavior/ attitude of a leader to collect and direct the individuals<br />

towards any goal. Leadership is a communication process of leader and individuals. (aneesullah,<br />

2013). So the effectiveness of the organization depends on effective leader and it is the one who<br />

have effective leadership style.<br />

In 1957 Political Sociologists defined leadership as “infuse values and purpose of leaders into a<br />

group”. In 1977 Robert Greenleaf described leadership as: “Great leaders serve the group they<br />

lead, by creating and maintaining an environment which encourages and supports everyone in<br />

maximizing their potential”. (Greenleaf, 1997) .<br />

A historian/ political scientist James M Burn also defined in 1978 gave his idea about.<br />

11


One of the best definitions of leadership is proposed by Kim and Maubouregne (1992), which<br />

indicates leadership, is the capability to inspire confidence and support among an organization’s<br />

people who are needed to achieve organizational goals. Rost (1993, P102), defines leadership as<br />

follows; “Leadership is an influence relationship among leaders and followers who intend real<br />

changes that reflect their mutual purposes”. Also, Bass (1990) believes leadership is the<br />

“principal dynamic force that motivates and coordinates the organization in the accomplishment<br />

of its objectives. Also we should note that we can find leadership in all level of positions in<br />

organizations and it does not just stick to high level positions”.<br />

There are varieties of leadership behaviors that are important for a firm. The framework used<br />

by Hart & Quinn (1993) who focus on the roles of the CEO. They declare that CEOs play four<br />

roles to achieve organizational performance. The four roles are vision setter, motivator, analyzer,<br />

and taskmaster, each involving certain duties in the organization. The vision setter defines and<br />

articulates a firm's basic purpose and future direction with attention to the emerging social,<br />

economic, and technological trends. The motivator translates an organization's vision and<br />

economic strategy into a “cause worth fighting for”. To fulfill this role, the CEO must inspire<br />

and motivate employees to accomplish the organization's goals. The analyzer focuses on the<br />

efficient management of internal operating systems, shaping operating decisions, and controlling<br />

management processes. The taskmaster focuses on firm performance and responsibilities by<br />

influencing subordinates' decisions and allocating resources to the highest priority activities. An<br />

effective executive demonstrates a high level of behavioral complexity by being able to perform<br />

all four roles simultaneously. Leadership is not only an in born personality trait. There are<br />

different types of leader. Such as;<br />

Transformational leadership: is defined as leadership approach that causes change in<br />

individuals and social system in its ideal form, it creates valuable and positive change in the<br />

followers with the end goal of developing followers into leaders.” (Burns, 1978)<br />

Transformational Style: Transformational leaders encourage subordinates to put in extra effort<br />

and to go beyond what they (subordinates) expected before (Burns, 1978). The subordinates of<br />

transformational leaders feel trust, admiration, loyalty, and respect toward leaders and are<br />

motivated to perform extra-role behaviors (Bass, 1985; Katz and Kahn, 1978). Transformational<br />

12


leaders achieve the greatest performance from subordinates since they are able to inspire their<br />

subordinates to raise their capabilities for success and develop subordinates‟ innovative problem<br />

solving skills (Bass, 1985).<br />

Characteristics of transformational leadership<br />

Idealized Influence<br />

The major characteristics of transformational leadership include engendering trust, admiration,<br />

loyalty, and respect amongst followers through application of charismatic vision and behavior.<br />

(Lievens, Van Geit, & Coetsier, 1997)Transformational leaders strive towards creating such a<br />

state of idealized influence by:<br />

●<br />

●<br />

●<br />

●<br />

●<br />

●<br />

articulating a vision and explaining how to attain the vision in an appealing manner<br />

leading by example<br />

acting confidently and optimistically<br />

sharing risks with followers<br />

emphasizing values and reinforcing them by symbolic actions<br />

displaying a high level of ethical and moral conduct<br />

Leaders who apply idealized influence on their followers gain the trust and confidence of the<br />

followers. The followers admire the leader as a role model and respect the decisions made by<br />

him or her.<br />

Inspirational Motivation<br />

The transformational leader inspires followers toward the new ideas or goals through<br />

inspirational motivation. The major characteristics of inspirational motivation leadership include:<br />

●<br />

●<br />

●<br />

articulation of a clear and appealing view of the future<br />

development of a shared vision in both economic and ideological terms so that the followers<br />

see meaning in their work<br />

making sure of each follower’s role in the fulfillment of the shared vision, and setting high<br />

standards for the followers to attain objectives<br />

13


●<br />

encouraging followers to integrate and become part of the overall organizational culture and<br />

environment<br />

Transformational leaders elevate people from low levels of need focused on survival by<br />

appealing toward their inborn desire to attain higher levels related to love, learning, leaving a<br />

legacy, and the like. The ways adopted to do so are many, and include:<br />

●<br />

●<br />

●<br />

●<br />

●<br />

making vivid descriptions of a good future that raises one’s imagination<br />

motivational speeches and conversations<br />

public display of optimism and enthusiasm<br />

highlighting positive outcomes<br />

stimulating teamwork<br />

While attempting to ​motivate followers​ toward a higher level of needs, transformational leaders<br />

appeal to their followers' own interests as far as possible. The major challenges however relate<br />

to:<br />

●<br />

●<br />

persuading followers to transcend their own interests for the collective team or organizational<br />

interest when required<br />

countering the followers’ emotional resistance to change<br />

Intellectual Stimulation<br />

Transformational leadership encourages change through intellectual stimulation aimed at<br />

self-reflective change of values and beliefs.<br />

Transformational leaders raise their followers’ awareness regarding problems and develop their<br />

capability to solve such problems in many ways. Some of these ways are:<br />

●<br />

●<br />

●<br />

●<br />

●<br />

fostering a climate that favors critical examination of commonly held notions, beliefs, and the<br />

status quo<br />

creating an environment conducive to the creation and sharing of knowledge<br />

encouraging innovation and creativity<br />

heightening sensitivity to environmental changes<br />

encouraging the suggestion of radical and controversial ideas without fear of punishment or<br />

ridicule<br />

14


●<br />

empowerment​ and imposition of the leader's idea only in the absence of viable ideas from the<br />

followers<br />

Individualized Consideration<br />

Individualized consideration ranks among the major characteristics of transformational<br />

leadership. The transformational leader treats each follower as a “whole" individual rather than<br />

as an employee, and considers the individual’s talents and levels of knowledge to decide what<br />

suits him or her to reach higher levels of attainment.<br />

A transformational leader applies such individual considerations by:<br />

●<br />

●<br />

●<br />

●<br />

●<br />

●<br />

listening to each follower’s needs and concerns<br />

expressing words of thanks or praise as a means of motivation<br />

making public recognition of achievements and initiatives<br />

making private notes of congratulations to boost self confidence<br />

ensuring fair workload distribution<br />

undertaking individualized career counseling and mentoring<br />

Technological developments, global competition, the changing nature of the workforce, and<br />

modern management precepts such as ​Total Quality Management​ have in recent years forced<br />

organizations to become leaner and flatter. ​Leadership is the critical factor​ in the initiation and<br />

implementation of such a change process, and the transformational style of leadership engenders<br />

a positive impact on individuals, teams, and organizations during the change process.<br />

Transactional leadership : ​also known as managerial leadership, focuses on the role of<br />

supervision, organization ,and group performance , Transactional leadership is a stayl of<br />

leadership in which the leader promotes compliance of his or her followers through both rewards<br />

and punishments unlike Transformational leadership , leaders using the transactional approach<br />

are not looking to change the future ,they are looking to merely keep thing the same. Leaders<br />

using transactional leadership as a model pay attention to followers work in order to fin faults<br />

and deviations. This type of leadership is effective in crisis and emergence situations as well as<br />

for projects that need to be carried out in a specific way”. (Bass B. , 2008) Transactional Style:<br />

Transactional leaders focus mainly on the physical and the security needs of subordinates. The<br />

15


elationship that evolves between the leader and the follower is based on bargaining exchange or<br />

reward systems (Bass, 1985; Bass and Avolio, 1993).<br />

Characteristics of transactional leadership<br />

Transactional leaders use reward and punishments to gain compliance from their followers. They<br />

are extrinsic motivators that bring minimal compliance from followers. They accept goals,<br />

structure, and the culture of the existing organization. Transactional leaders tend to be directive<br />

and action-oriented.<br />

Transactional leaders are willing to work within existing systems and negotiate to attain goals of<br />

the organization. They tend to think inside the box when solving problems Transactional<br />

leadership is primarily passive. The behaviours most associated with this type of leadership are<br />

establishing the criteria for rewarding followers and maintaining the status quo. Within<br />

transactional leadership, there are two factors, contingent reward and management-by-exception.<br />

Contingent reward provides rewards for effort and recognizes good performance.<br />

Management-byexception maintains the status quo, intervenes when subordinates do not meet<br />

acceptable performance levels, and initiates corrective action to improve performance (Odumeru,<br />

Ifeanyi,2013)<br />

2.3 Comparison between transactional leadership and transformational<br />

Comparison Between Transformational and Transactional Leadership James Macgregor Burns<br />

distinguished between transactional leaders and transformational by explaining that:<br />

transactional leader are leaders who exchange tangible rewards for the work and loyalty of<br />

followers. Transformational leaders are leaders who engage with followers, focus on higher<br />

order intrinsic needs, and raise consciousness about the significance of specific outcomes and<br />

new ways in which those outcomes might be achieved (Hay, 2012). Transactional leaders tend to<br />

be more passive as transformational leaders demonstrate active behaviours that include providing<br />

a sense of mission.<br />

Table 2.1 ​comparisons between transactional and transformational leadership<br />

Transactional<br />

Transformational<br />

Leadership is responsive<br />

Leadership is proactive<br />

16


Works within the organizational culture<br />

Employees achieve objectives through<br />

rewards and punishments set by leader<br />

Employees achieve objectives through<br />

higher ideals and moral values<br />

Motivates followers by appealing to their<br />

own self interest<br />

Management-by-exception: maintain the<br />

status quo; stress correct actions to improve<br />

performance.<br />

Works to change the organizational culture by<br />

implementing new ideas<br />

Employees achieve objectives through higher<br />

ideals and moral values<br />

Motivates followers by encouraging them to<br />

put group interests first<br />

Individualised consideration: Each behaviour is<br />

directed to each individual to express<br />

consideration and support. Intellectual<br />

stimulation: Promote creative and innovative<br />

ideas to solve problems.<br />

Douglas McGregor's Theory Y and Theory X can also be compared with these two leadership<br />

styles. Theory X can be compared with Transactional Leadership where managers need to rule<br />

by fear and consequences. In this style and theory, negative behaviour is punished and<br />

employees are motivated through incentives. Theory Y and Transformational Leadership are<br />

found to be similar, because the theory and style supports the idea that managers work to<br />

encourage their workers. Leaders assume the best of their employees. They believe them to be<br />

trusting, respectful, and self-motivated. The leaders help to supply the followers with tool they<br />

need to excel. (Odumeru, Ifeanyi,2013).<br />

2.4 Definitions and Concepts of Organizational Performance<br />

Performance is organizational ability in achieving something related to desired objectives<br />

(Kaithen, 2002). Performance is work results achieved by someone/leader or a group of people<br />

in an institution, in accordance with their respective authority and responsibility to reach the<br />

institutional goal legally, through implementing and respecting the laws of the institution, and in<br />

accordance with moral and ethics (Prawirosentono, 2000). Organizational performance was<br />

17


defined as the extent to which organizations, viewed as a social system fulfilled their objectives<br />

(Tannenbaum, 1957).<br />

The concept of organizational performance is the dependent variable of interested research topic<br />

and it concerned with any area of management (Richard et al., 2008). However the concept of<br />

organizational performance is very common generally in the academic literature, it does not have<br />

common definition and it is difficult to give specific definition because of its many meanings.<br />

For this reason, there isn’t a universally definition for this concept that is accepted.<br />

Managers began to understand that an organization is successful if it accomplishes its goals<br />

(effectiveness) using a minimum of resources (efficiency). Allthouth, organizational theories that<br />

followed supported the issue of an organization that achieves its performance objectives based<br />

on the challenges imposed by the limited resources (Lusthaus & Adrien, 1998 after Campbell,<br />

1970). In this context, profit became one of the many indicators of performance either the profit<br />

is public or private.<br />

We cannot ignore that the style of leadership affects performance since performance cannot<br />

be achieved in the absence of a leadership that can adapt to the changes and challenges of the<br />

environment that knows how to motivate and encourage the employees to do their work<br />

effectively to achieve a desired performance for the organization.<br />

Madrid et al. (2007) opine that high performing firms are able to generate a variety of industry<br />

and society benefits like generating resources, wealth achievement and jobs creation. They<br />

further observe that an accurate measure of performance can provide reliable insight into what<br />

affects performance and how organizations can develop good strategies, arrange resources, meet<br />

society expectations and compete. Good performance and good service for the society is the<br />

ultimate goal of public organizations. All the strategies designed and activities performed thereof<br />

are meant to cause this main objective. However, this does not mean that public organizations<br />

have no other goals. Public organizations could also have additional social, political and<br />

economic goals (Alexandru et al., 2008)<br />

18


2.5 Key Measurements of Organizational Performance<br />

Performance is a multidimensional construct and therefore multiple dimensions of performance<br />

should be used (Lumpkin and Dess, 1996). Growth has been argued as an important element to<br />

the attainment of sustainable advantages and profitability (Marksman and Gartner, 2002) and it<br />

is hard to generate realized growth without profitability (Fitzsimmonset al., 2005). Profitability is<br />

also another important dimension of organizational performance that must be considered as it is<br />

unlikely that growth can be sustained without profit contributions (Fitzsimmons et al 2005).<br />

Furnham (2002) assert that the appropriate measurement outcome from leadership quality is<br />

effectiveness (reflecting the leader’s efficacy in achieving organizational outcomes, objectives,<br />

goals and subordinates‟ needs in their job). Therefore, the measure of organizational<br />

performance in this study is represented by the degree to which a company achieves its<br />

organizational objectives.<br />

II.6 Organizational Performance Characteristics<br />

Performance characteristics are qualities, traits, or individual characteristics that are required for<br />

satisfactory performance in a particular job, role or team. As a manager, you will need to select<br />

the characteristics that best emphasize the qualities that are needed for organizational employees<br />

to perform their job duties and objectives successfully (South Carolina university website)<br />

Communication Ability:​ the effectiveness with which the employee presents accurate<br />

information both verbally and in writing.<br />

Relationships with Others​ - the extent to which the employee establishes positive relationships<br />

with co-workers (for example, being a good team worker, being tactful and courteous with<br />

co-workers).<br />

Accuracy of Work​: or errors that the degree to which the employee makes mistakes requires<br />

correction.<br />

Appearance​: the physical appearance of the employee at work; cleanliness, grooming, neatness<br />

and appropriateness of dress for the job.<br />

19


Cooperation​: the extent to which the employee cooperates with supervisors, associates and<br />

those for which work is performed.<br />

Dependability​: the extent to which the employee can be relied upon to meet work schedules and<br />

fulfill job responsibilities and commitments.<br />

Use of Work Time​: how effectively and efficiently the employee uses his/her time to<br />

accomplish his/her job tasks (for example, does not wait until the last minute to work on<br />

important projects).<br />

Meeting Schedules​: The extent to which the employee efficiently completes his/her work and<br />

effectively meets deadlines..<br />

Safety​: the extent to which the employee follows established safety practices and corrects unsafe<br />

work practices on the job.<br />

Favorable Job Attitude​: the extent to which the employee displays interest and enthusiasm for<br />

his/her work and takes pride in a job well done.<br />

Job Knowledge​: the extent to which the employee knows the details of the job and follows the<br />

job procedures.<br />

Quantity of Work​: the extent to which the employee produces an amount of acceptable work in<br />

order to meet schedules over which he/she has control.<br />

Quality of Work​: the extent to which the employee neatly, thoroughly, and accurately<br />

completes job assignments according to established standards of quality.<br />

Relationship with the Public: the extent to which the employee establishes good relationships<br />

with the public (for example, being courteous and helpful).<br />

Judgment​: the quality or work-related decision made by the employee<br />

20


2.​7 Leadership and organizational performance<br />

An article written titling the Impact of Leadership Style on Performance of the organization the<br />

objective of the study was to examine the leadership styles among Six Sigma professionals and<br />

their impact on performance. The method used was Quantitative description with 146 Six Sigma<br />

professionals working in Thailand were surveyed using the Multifactor Leadership Questionnaire<br />

The findings reveal that there are significant differences among the transformational,<br />

transactional and laissez-faire leadership styles on the organizational performances. (Saowalux<br />

Prasertwattanakul, Peng Chan,2007)<br />

Similarly another article called Human Resource Strategies as a Mediator between Leadership<br />

and Organizational Performance which has the purpose of examining how leadership styles are<br />

related to human resource strategies and organizational performance, The survey was<br />

quantitative description A total of 270 questionnaires were distributed; after eliminating 18<br />

incomplete questionnaires, 251 valid questionnaires remained. The average age of the<br />

respondents was 36 years. The survey resulted a direct positive relationship between leadership<br />

style and organizational performance and an indirect relationship between leadership style and<br />

human resource strategy as a mediator.( Abdulrahman Alsughayir,2014).<br />

Another study about Effects of Leadership Style on Organizational in Nigeria The purpose of<br />

this study was to examine effects of leadership styles on organizational performance in Lagos<br />

state, The study adopted the descriptive survey design using percentages and chi-square (X2) on<br />

hypothesis and questions formulated two hundred (200) employees’ were randomly selected<br />

from only twenty (20) registered SMEs in Lagos State, The findings of the study revealed that<br />

good leadership style enhances employee morale and that there is what is known as participatory<br />

leadership style of management where both employers and employees take decisions that have<br />

positive impact on the growth of the organization and good welfare facilities for the employees.(<br />

Ben-Bernard Prince Uchenwamgbe,2013).<br />

Also another study on Transformational Leadership Style and Its Relationship with<br />

Organisational Performance in Nigerian Work Context with the purpose of investigating the<br />

relationship between transformational leadership style and organizational performance in<br />

21


Nigerian work context, This paper relied on secondary data as its major source of information;<br />

this is to say that the primary method of study was an extensive review of available literature for<br />

description and analysis of the subject matter, The paper concluded that transformational<br />

leadership style has a significant positive relationship with organisational performance in<br />

Nigerian work context (Abasilim, Ugochukwu. David,2014).<br />

Similarly another research called the impact of leadership styles on the organizational<br />

performance. With the objective of exploring the impact of leadership styles on the<br />

organizational performance that uses quantitative method of questionnaire finds that there is a<br />

positive correlation between the transformational leadership style and the performance of the<br />

organizations.( Raluca-Elena Hurduzeu,2015).<br />

Same study on Leadership Practices and Organizational Performance examining leadership<br />

practices, and the relationship between these practices and organizational performance in a<br />

Norwegian context which utilizes quantitative method which The hypotheses were tested in a<br />

survey of 347 participants confirmed an overall positive relationship between transformational<br />

leadership practices and organizational performance.( Dag A Sandbakken,2006).<br />

Nigerian study on Enhancing Organisational Performance Through Effective Leadership In<br />

Nigeria’s Public Organisations which purposes to examine the role of effective Leadership in<br />

enhancing organizational performance in Nigeria’s Public Organizations, The study was a desk<br />

research; hence, secondary source of data was used through the review of theoretical and<br />

empirical literature relevant to the study, The findings clearly indicate that though leadership<br />

plays vital roles in improving organizational performance, many people in leadership positions in<br />

public organizations do not readily understand what constitute leadership functions, qualities and<br />

the dynamic nature of leadership styles (Ray Njoku1, Nwakw Uribe Adindu,2014).<br />

Typical study on Theory X and Theory Y Type Leadership Behavior and its Impact on<br />

Organizational Performance aiming is to find evidence whether leadership styles of the managers<br />

regarding Theory X and Theory Y have positive impact on organizational performance. The<br />

study used quantitative method Out of 200 surveys, 115 were returned. Two of the surveys had<br />

to be eliminated due to missing information. 113 remained (56,5 % response rate) and were<br />

22


analyzed afterwards found that Theory Y leadership behavior may have a general positive<br />

influence on the organizational performance but so far there has been no empirical evidence<br />

directly related to firm’s performance criteria(Aykut Arslana, Selva Staubb,2008).<br />

Another Nigerian research on Evaluation of Leadership and Organizational Performance on<br />

Small Scale Industries in Nigeria, The study aim at evaluating the leadership pattern and the<br />

extent to which it has affected organizational performance in some selected small scale industries<br />

in Nigeria which utilizes quantitative method 180 questionnaires were distributed that is 30 for<br />

each state and 10 per categories selected. 138 questionnaires were returned, The gender were<br />

92 male and 46female, revealed that leadership pattern in small-scale industries significantly<br />

affect overall performance of the business outfit(Idowu, Abiola,2012).<br />

American study on the relationship between leadership styles, organizationl commitment, and<br />

organizational outcome in Oklahoma’s volunteer fire departments, The grand purpose of this<br />

study was to determine if a relationship exists between leadership styles of fire chiefs and<br />

organizational commitment, and performance levels of volunteer firefighters. Members of<br />

volunteer fire departments in the state of Oklahoma were selected as the target population for<br />

the study using quantitative approach for, 220 volunteer firefighters from all across the state of<br />

Oklahoma completed the survey. In 2013, 7,800 volunteer firefighters served in Oklahoma’s<br />

volunteer fire departments (Oklahoma Firefighters Pension and Retirement System, 2013). The<br />

comprised 2.8% of the total volunteer firefighter population analysis showed that the null<br />

hypothesis should be rejected. This also suggests that a positive relationship exists between<br />

transformational and transactional leadership styles and organizational performance in fire<br />

fighters(Youngshix Shin,2013).<br />

According to Fu-Jin Wang , Shieh Chich-Jen and Tang Mei-Ling Discussed the relationship<br />

among the leadership style and the organizational performance the purpose of this study was to<br />

examine the relationships among the leadership style, and the organizational performance. the<br />

method used was Quantitative Descriptive and the sample was 246 valid questionnaires sent to<br />

the corporate owners, executors and operators of Kaohsiung’s Nanzi Export Processing Zone in<br />

south Taiwan The result was The charismatic, transformational and visionary of the leadership<br />

23


style are positively related to the organizational performance. (Wang, Chich-Jen, & Mei-ling,<br />

2010).<br />

In reference on researchers Obiwuru Timothy C Okwu, Andy T.Akpa, Victoria O.Nwankwere<br />

And Idowu A. Studied Relationship b/w leadership style and organizational performance<br />

October 2011 the purpose of this study was To investigated the effects of leadership style on<br />

organizational performance in small scale enterprises. The method used was quantitative<br />

questioner and the sample was Three small-scale enterprises were selected for sample size of<br />

fifteen respondents the result of this study was The analysis has shown that each of charisma and<br />

intellectual stimulation/individual consideration traits of transformational leadership style exerts<br />

positive. (Obiwuru, Okwu, Akpa, & Nwankwere, 2011)<br />

Similar research about Relationship b/w Ethical Leadership & Organizational Performance by<br />

Mohammad Khademfar, The purpose of this Study was to find out whether the Ethical<br />

leadership influences the financial and non- financial performance in Malaysian SMEs and the<br />

method used this research was Quantitative Questioner and the sample size for this study will<br />

reach to 280; the researcher will apply to 300 selected Malaysian SMEs. The result was the<br />

Ethical leadership improve the environment and promote the clients have a sensitive and positive<br />

attitude toward the organizations performance in private and public sector (Khademfar & Amiri,<br />

2013).<br />

In 2013 study is carried out in Somalia by Ahmad Hassan Mohamud, Mohamed Jamal Abdi,<br />

Ismail Ibrahim Mohamed titling Leadership Styles and Organizational performance case of some<br />

selected telecommunication companies in Mogadishu Somali. The purpose of this study is to<br />

examine the relationship between leadership styles and Organizational performance case of some<br />

selected telecommunication companies in Mogadishu-Somalia. The study uses This survey was<br />

through quantitative analysis The sample 100 staff and management working in two<br />

telecommunication companies in Mogadishu was obtained to be participating in this study. And<br />

the result was A significant strong relationship was found between Organizational performance<br />

and transformational (r=0.802, p=0.000). The result further indicated week positive significant<br />

24


elationship between organizational performance and transactional leadership style (r=0.272, p=<br />

0.007). (Mohamud, Abdi, & Mohamed, 2013).<br />

In Pakistan article published in 2012 by Muhammad Akram, Hassan Mobeen Alam, Liaqat Ali,<br />

Muhammad Muazzam Mughal about How Leadership Behaviors Affect Organizational<br />

Performance in Pakistan The purpose of this study to analyze which leadership behavior is most<br />

closely related with organizational performances A quantitative approach is used for Sample of<br />

500 managers and 500 employees the result was all leadership behaviors are positively<br />

interrelated with leader is perceived and employee has perceived organizational performances.<br />

(Akram, Alam, Ali, & Mughal, 2012)<br />

Simultaneous study about Impact of Leadership Styles on Organizational Performance 2014 by<br />

Amal Zada Khan, Nosheen Adnan, The purpose of the study is to examine leadership styles and<br />

their effects on organizational performance A quantitative study was conducted by using a<br />

questionnaire a sample of 240 leaders/managers who were working in various public and private<br />

organizations The result was transformational leadership has a positive relationship with<br />

organizational performance. (Khan & Adnan, 2014)<br />

Also Longe, Olukayode J. studied Leadership Style Paradigm Shift and Organizational<br />

Performance, the purpose of this study was To examine the effect of changes in leadership<br />

styles on organizational performance in a cement manufacturing firm in Ogun State of Nigeria.<br />

The method used was Questionnaire and in-depth interview were used for data collection And<br />

the sample was A total of 385 participants were selected for the study using stratified random<br />

sampling technique The result was the result showed a significant correlation between<br />

transformational, transactional and democratic leadership styles and organizational performance<br />

after the change of management. (Nasomboon, 2014)<br />

According to Albert Puni, Samuel B. Ofei & Abednego Okoe ,They studied The Effect of<br />

Leadership Styles on Firm Performance in Ghana, the purpose of the study was to examine the<br />

leadership styles of two Ghanaian banks and how they affect performance, the method used was<br />

The study was purely quantitative because reliable questionnaire was used to collect data, and<br />

25


The result showed that, none of the leadership styles significantly predicted financial<br />

performance of the two banks. (Puni, Ofei, & Okoe, 2014)<br />

Another study on Kashmir in 2015 by Muzaffar Ahmad Sofi1, Dr. K. Devanadhen titled Impact<br />

of Leadership Styles on Organizational Performance: An Empirical Assessment of Banking<br />

Sector in Jammu and Kashmir. the purpose was A Conceptual Model Of The Impact Of<br />

Leadership Styles (Transformational, Transactional, Participative, Supportive And Instrumental)<br />

On Organizational Performance Of Select Banking Organizations In Jammu and Kashmir, India<br />

The Data Collection Method Used In This Research Work Is Questionnaire Method. The<br />

Findings Reveal That Only Transformational Leadership Style Has Significant Direct Impact On<br />

Organizational Performance While Other Leadership Styles Showed Insignificant Impact.<br />

(Sofi & Devanadhen, 2015)<br />

some researchers like Dr. Emmanuel Iriemi Ejere, Ugochukwu David Abasilim studied Impact<br />

of two Leadership Styles on Organizational Performance Empirical Evidence from Nigeria, The<br />

purpose is to investigate the impact of transactional and transformational leadership styles on<br />

organizational performance in the Nigerian work context. The Research method was quantitative<br />

the data elicited from one hundred eighty four (184) randomly selected respondents. the result<br />

was This study affirms that both transformational and transactional leadership styles had<br />

significant positive impacts on organizational performance. (Ejere & Abasilim, n.d.)<br />

In june this year of 2015 study in Nigeria titling the effect of leadership Style on organizational<br />

performance in Small and Medium Scale enterprises in Makurdi metropolis of Benue State,<br />

Nigeria is carried out, for The purpose of the study was determining the effect of leadership<br />

Style on organizational performance in Small and Medium Scale enterprises using Quantative<br />

quaestionaire, Data was collected from a population and sample of 70 staff of the organizations<br />

The analysis has shown that charisma trait of transformational leadership style exerts positive but<br />

insignificant effect on employees performance (Saasongu, 2015).<br />

According to the Nigerian study covering An Empirical Investigation of Leadership Styles and<br />

Their relationship on Organizational Performance in Nigerian small and medium enterprises<br />

(SMEs) September 20 2014 , The purpose of this study is to examine empirically the relationship<br />

26


etween leadership style and organizational performances, the data generated were analysed by<br />

means of descriptive and inferential statistics, the servey were used sample of 260 small and<br />

mediam enterprice, The results found that the Nigerian SMEs are more autocratic and less<br />

participative as the power distance between business owner and employees is very wide<br />

(Abdulazeez Abioye Lawal1, 2014).<br />

Similar research about The Relationship of Leadership Styles and organizational performance<br />

among public Academic Leaders in Klang Valley Area in 2014, The purpose of this study was to<br />

examine the relationship between the leadership styles and the organizational performance, a<br />

quantitative method for A sample size of 201 academic leaders is chose in order to ensure the<br />

sample size is big enough to answer the questions accurately The results gained from this study<br />

had proven that the relationship between leadership styles and organizational performance was<br />

significant but not statistically significantly high (Hazira Mohd Nasir1, 2014).<br />

In 2014 study is carried out in Nigeria titling Leadership and organizational performance in the<br />

Nigeria small and medium enterprises, The purpose of this study is to examine empirically the<br />

relationship between leadership style and organizational effectiveness in the Nigerian small and<br />

medium enterprises. The study uses Quantitative method, Questionnaire is the main data<br />

collection instrument for this study with a sample of 200 respondents has concluded that the<br />

availability of appropriate tools of leadership management in SMES enhances employee<br />

performance so enhances organizational performance. (lawal, 2014)<br />

In Malaysian article published in 2014 about leadership behaviors and organizational<br />

performance, The purpose of this study to investigate the impact of leadership behaviors on the<br />

performance of services in Malaysia. A quantitative approach is used for 193 respondents have<br />

finalized that there is a significant positive relationship between the leadership behaviors and<br />

organizational performance of services (Arham, 2014)<br />

Simultaneous study about the Effects of Leadership Style on Organizational Performance in<br />

2014, The purpose of this study was to investigate the effects of leadership style on<br />

organizational performance in Brick Kilns in Jammu region. This study used quantitative<br />

description with a sample of 120 respondents The result showed that while transactional<br />

27


leadership style had significant positive effect on performance, transformational leadership style<br />

had positive but insignificant effect on performance (gubta, 2014).<br />

Also in 2014 study published in Kenya about the impact of leadership style on organizational<br />

performance in commercial Banks in Kenya. The purpose was to examine the impact of<br />

leadership style on organizational performance in commercial Banks in Kenya survey sampling<br />

technique was adopted and relevant primary data was gathered with the aid of a structured<br />

questionnaire administered on respondents, The target population for the study was all the 43<br />

commercial banks operating in Kenya and the study covered all the forty three banks. No<br />

sampling, Findings showed positive and negative correlation between leadership style and<br />

organizational performance (Cindy, 2014).<br />

Similar article published in 2013 with the title of leadership style and organizational performance<br />

with the purpose of describing, explaining and interpreting in depth the role of leadership styles<br />

on organizational outcomes, the research uses qualitative method with a primary source of data<br />

collected through interviews and concluded that leadership is important for organizational<br />

performance (1*Muhammad Bahzar, 2013)<br />

Another study on Kenya in 2012 about the effect of leadership styles on organizational<br />

performance in state owned corporations in Kenya aiming to investigate the main effects of<br />

leadership styles of organizational performance using quantitative method on 72 participants<br />

including middle and senior managerial employees in Mombasa state owned corporations<br />

indicated Contingent Rewards and Active Management by Exception have a medium positive<br />

correlation with organizational performance. (Koech, 2012)<br />

Finally some researchers are studied impact of leadership style and organizational performance,<br />

for the purpose of to examine the impact of leadership style on organizational performance in<br />

some selected banks in Ibadan Nigeria, this study were used quantitative description for sample<br />

of 60 respondents and the last the findings of this study showed positive and negative correlation<br />

b/w leadership style and organizational performance. it was also found that leadership stayl<br />

measurements jointly predict organizational performance (Ojokuku R. M1, 2012).<br />

28


However Most literatures relating to transformational leadership style proved that<br />

transformational leadership has strong positive relationship with organizational performance and<br />

outcomes (Avolio, 1999; Bass, 1998). However few studies made on transformational and<br />

transactional leaderships have predicted a positive relationship and most of them emphasize on<br />

transformational leadership to be stronger because of that transformational leaders ability to<br />

create more inspired, committed, and cohesive culture in their organizations (Greyer and Steyrer,<br />

1998).<br />

But that doesn’t mean that transactional leaders have no role in organizations outcome, the only<br />

reason why most researches lack positive correlation is that they lack proper mediating factor<br />

between transactional leaders and organizational performance (Yuke, 1999). For example,<br />

Transactional leadership can help an organization to more efficiently achieve its objectives by<br />

connecting job performance to rewards and also by ensuring that employees have the necessary<br />

resources (Zhu et al., 2005). Mehra et al. (2006) argued that organizations that are looking for<br />

efficient ways to outperform their competitors often focus on leadership. This leader-centered<br />

perspective has offered helpful insights into how leadership is related to team performance (Zhu<br />

et al., 2005). Some researchers (Keller, 1992; McGrath & MacMillan, 2000; Purcell et al., 2004;<br />

Northouse, 2011) have explored the strategic role of leadership and how leadership paradigms<br />

and leadership behavior can be used to improve organizational performance. Previous research<br />

has generated expectations that leadership paradigms will directly affect customer satisfaction,<br />

financial performance, and staff satisfaction. In the extant leadership research, results tend of<br />

depend on the level of analysis. House and Aditya (1997) identified micro-level research with a<br />

focus on leaders in relation to their subordinates and immediate superiors, as well as macro-level<br />

research that has a closer focus on the overall organization and the organization’s environment.<br />

According to Tarabishy et al. (2005) suggested that leaders, as well as their leadership styles,<br />

influence the subordinates and also influence organizational outcomes.<br />

2.8 Conceptual framework and hypothesis<br />

29


There are other factors which are also very important for achieving organizational performance<br />

such as organizational commitment, work motivation, but our study intends to leadership styles<br />

as the prime factor for higher organizational performance.<br />

2.8.1 Statement of Hypothesis<br />

Hypothesis​ 1​<br />

: Transformational leadership has stronger positive relationship with organizational<br />

performance in Mogadishu municipality.<br />

Hypothesis​ 2​<br />

: Transactional leadership is a predictor for better organizational performance in<br />

Mogadishu municipality.<br />

2.9 Summary<br />

After reviewing articles we can conclude that leaders in every organizational have an important<br />

role in enhancing organizational effectiveness by reaching the goals and objectives of the<br />

institution, by doing so they need to be either goal oriented or activity oriented which we mean<br />

by transformational and transactional leadership styles, and the majority of the articles and<br />

materials we reviewed prove that The need for adequate motivation, suitable working<br />

environment, compensation and efficient communication between employers and employees are<br />

important to promoting excellent organization performance.<br />

Conclusion<br />

in this chapter we have reviewed our research literature, definitions of the leadership and its<br />

dimensions mentioning transformational leadership, transactional leadership and laizess faire and<br />

their relationship with organizational performance mentioning growth and productivity as the<br />

measurements of the organizational behavior, then we have build concept about the relationship<br />

between the leadership measurement and organizational behavior measurements<br />

30


CHAPTER 3<br />

METHODOLOGY<br />

3.0 Introduction<br />

This chapter focuses on the methodology of the study. The chapter consists of several sections.<br />

First section is research design followed by research target population including sample size and<br />

sample selection procedure. The third section provides research instruments with the validity and<br />

reliability test of the data and the data gathering procedure, to analyze the data. Section five<br />

presents data analysis followed by the ethical consideration of study, while final section presents<br />

the constraint/limitation of the study.<br />

3.1 Research design<br />

Our research investigates the relationship between leadership styles and organizational<br />

performance in Mogadishu municipality, this study adopted descriptive and explanatory research<br />

design using questionnaire to gain data about the causal relationship between leadership styles<br />

and organizational performance, we will describe the respondents, compare the information,<br />

analysis and interpret the correlation between the variables, A cross-sectional survey was<br />

adopted for this purpose of this study because the Cross-sectional is cost and time effective<br />

because data can be gathered just once perhaps over a period of days or weeks or months, in<br />

order to answer research questions (Sekarana, 2003).<br />

3.2 Research population<br />

Our target population of the study is Mogadishu municipality and the accessible population is<br />

400 employees of local government in mogadishu municipality (Mohyadin, Farah, &<br />

Abdirashiid, 2014).<br />

3.2.1 Sample size<br />

We used Slovin’s formula to calculate the sample size, with maximum acceptable error of 5%.<br />

S =<br />

N<br />

1+Na 2<br />

31


N: Stands the population size<br />

S: sample size<br />

a. Stands acceptable error<br />

n = 200<br />

400<br />

=<br />

1+400(0.05) ˆ 2<br />

The sample sizes of the current study will be 200 employees from local government of<br />

Mogadishu.<br />

3.2.2 Sampling procedure<br />

The study will conduct probability sampling particularly stratified random sampling It<br />

refers probability sampling procedure in which the population is divided into two or more<br />

relevant strata. The main strata in this study will be male and female educated workers in<br />

Mogadishu municipality.<br />

​3.3 Research instrument<br />

This study will use an adapted questionnaire as a tool of data collection from every respondent.<br />

The main purpose of the questionnaire is to collect a lot of information short period of time.<br />

Because questionnaire suitable if a population is large and time is limited, we use questionnaire<br />

to quantify the respondents, the researchers will adopt multifactor leadership questionnaire<br />

developed by bass and Avolio 1990, used by Ali yassin 2013, and organizational performance<br />

questionnaire developed by Md. Zohurul Islam and Sununta Siengthai,2009.<br />

Therefore the structure of this questionnaire will be two parts first part will demographic<br />

information about the respondents with four questions and the second part consist of questions<br />

about leadership styles and organizational performance of 21 questions, the questionnaire has<br />

scales to determine the level of agreeing the status such as strongly Agree, Agree, Don’t know,<br />

Disagree, and Strongly Disagree. The questionnaires will be distributed equally to all members<br />

of the target sample we will also avoid any contradiction and invention questions in our<br />

questionnaires.<br />

32


3.4 Reliability and validity test<br />

In order to make sure the accuracy and consistency of the survey we apply instrumental tests<br />

such as reliability, validity tests.<br />

Reliability refers to the extent to which data collection technique or techniques will yield<br />

consistent findings, similar observation would be made or conclusion reached by other<br />

researchers or there is transparency in how sense was made from the raw data (sounder et al,<br />

2009). In order to keep the quality of our study we would like to measure the internal consistent<br />

of the reliability test for the confidence of the output for the study can be applicable the<br />

measurement should exceeded 70% (Cronboch alpha, 1951), Thereby the research team will use<br />

show testing than reliability test, in order to maintain the consistent and validity of the instrument<br />

by aiding statistical package for Social Sciences,, (SPSS Version 16.0).<br />

Validity refers to the extent to which data collection method or methods accurately measure what<br />

they were intended to measure or to the extent to which research findings are really about what<br />

they are claimed to be about (Saunders et al., 2009). Thereby to establish validity, three experts<br />

will evaluate to the intent of this learn.<br />

3.5 Data gathering procedure<br />

A- ​Before gathering the data we will ask confirmation letter from the office of record and<br />

admission so that we can precede our research legitimately in the local government of<br />

Mogadishu and distribute questionnaires.<br />

B​- After we get approval we will begin to visit departments in the municipality and<br />

distribute questionnaires and collect data from both primary and secondary sources, the primary<br />

sources will be databases available and previous literatures on leadership styles and its effect on<br />

organizational performance in Benadir region, the secondary data will be questionnaires we<br />

distribute to local government employees. When distributing the questionnaire we will avoid any<br />

kind of bias and prevent from irrelevant employees.<br />

33


C​- Then we analysis the data using SPSS version 16.0 to know the correlation and<br />

regression analysis for the data and results will be published in our research papers.<br />

3.6 Data Analysis<br />

To analyze date we will use explanatory tools for analyzing in SPSS Version 16.0 such as<br />

regression and correlation. Regression will be used to test hypothesis, while correlation<br />

coefficient will be used to investigate the relationship between employee leadership styles and<br />

organizational performance in Mogadishu local government Somalia. Descriptive analyses will<br />

also be used as a measure of central tendencies such as mean, median and mode the following<br />

table will indicate how descriptive analysis is undertaken.<br />

Table 3.1 descriptive ranges<br />

No Range Description Meaning<br />

1 1-1.8 Strong Agree Very high<br />

2 1.8-2.6 Agree High<br />

3 2.6-3.4 Neutral Normal<br />

4 3.4-4.2 Disagree Low<br />

5 4.2-5.0 Strong Disagree Very low<br />

3.7 Ethical Consideration<br />

In this study the researchers will consider the ethical issues throughout the research project, and<br />

will keep the openness, privacy and confidentiality of the respondent, to keep the ethical issues<br />

data given by the respondent was used only for academic purpose, this research will conducted<br />

ethically, all copyright will observed and permission is required to reproduce materials will be<br />

sought.<br />

34


3.8 Limitations of the Study<br />

Our research has been an interesting journey for us and while our study we have seen a lot of<br />

people, we met many people and it was fruitful that we moved with smooth steps with no regrets<br />

and all the time in the past months we can conclude that it was perfect and we haven’t met any<br />

describable constraints<br />

CHAPTER FOUR<br />

DATA ANALAYSIS AND INTERPRETATION<br />

4.0 Introduction<br />

In this chapter, we put forward our research data and findings, the data was analyzed using<br />

statistical techniques such as, descriptive tools in the demographics of respondents and<br />

correlation and regression at the relationship of variables, and we present demographic variables<br />

of respondents using tables for further clarification of data collection. The data presentation and<br />

analysis under this chapter of the study is presented in complete research data that was collected<br />

from our target population, and finally research findings is shown in terms of statements and<br />

tabular then we conclude with discussions about the findings by interpreting the results of the<br />

study.<br />

4.1 Demographic Characteristics Of The Respondents<br />

In this part we emphasize the background information of the respondents whom we have<br />

collected our information from; the purpose of checking the backgrounds of the respondents in<br />

this study is to know the characteristics of the respondents and to present credible information.<br />

Furthermore, the respondents have also given the promise that all the data they provided is used<br />

for the purpose of Academic research and practice, and the identities of the respondents will be<br />

kept confidential. In total 100 respondents filled the questionnaires from the Mogadishu<br />

35


municipality. in the demographic section the questionnaire is classified upon in terms of Gender,<br />

Age, marital status, level of education, and work experience .<br />

In table 4.1 shows the gender of the respondents which is 64% male and 36% female Based on<br />

data gathered, the majority of the respondents of this study are male, while a significant number<br />

of the respondents are female. Thus, male employees have dominated in Mogadishu municipality<br />

since male workers are almost twice the women workers.<br />

Also in the table it is clear that the number of respondents aged 18-35 years are (62%) who are<br />

relatively greater than the percentage of respondents aged in 36-45 years (24%), and above 46<br />

years (14%), this implies, that majority of the respondents are young men and women between<br />

18-35 years of age, and quite significant number of middle aged employees of 24%.<br />

At the side of education and qualification we found that secondary level respondents were 18%<br />

also the diploma level were 18% but The majority of the respondents of this research were<br />

Bachelor level with (52%), we also found that those with higher than bachelor degree accounted<br />

for only 12% .<br />

The table also shows the marital status of the respondents which are 48% married, 48% single<br />

and the remaining 4 % of the respondents are others. This result showed that the majority of the<br />

respondents of this study are married due to their getting employed & family support​.<br />

The Table also shows that 7% of the respondents have less than one year of experience, 20% have<br />

one year of experience, 26 also have two years experience and 47% out of total of 100 have more<br />

than two years of experience. So that, in the context the most respondents have more than two years<br />

of experience<br />

Table 4.1<br />

Demographic profile Frequencies Percentage<br />

1. Gender<br />

Male 64 64 %<br />

Female 36 36 %<br />

Total 100 100 %<br />

36


2. Age<br />

18- 35 62 62%<br />

36-45 24 24%<br />

45 And above 14 14%<br />

Total 100 100.0<br />

3. Educational Level<br />

Secondary 18 18<br />

Diploma 18 18<br />

Bachelor 52 52<br />

above 12 12<br />

Total 100 100.0<br />

4. Marital Status<br />

Single 48 48%<br />

Married 48 48%<br />

Others 4 4%<br />

Total 100 100.0<br />

5. Experience<br />

Less Than one year 7 7 %<br />

One Year 20 20 %<br />

Two year 26 26 %<br />

Above 47 47 %<br />

Total 100 100.0<br />

37


4.2. Descriptive findings of leadership style and organizational performance<br />

As you will see in table 4.2 in this part we discussed about variable finding of each item such as<br />

the mean index, standard deviation and interpretation of the result.<br />

Firstly we discussed about the independent variable, the first question has mean index 2.26 and<br />

Standard deviation 1.244 which shows that respondent Agreed in this question. The second<br />

question obtained mean of 2.38, standard deviation of 1.254 and interpretation of this question<br />

was Agree. The third question has 2.33 mean index and standard deviation 1.248 meaning that<br />

they agree for this question. The mean index for 4th question was 2.6, standard deviation of<br />

1.393 and the respondents denote agree in this question. The 5th question scored mean 2.68 and<br />

standard deviation of 1.377 which means the respondents agreed. The 6​ th question obtained mean<br />

of 3.09, standard deviation of 1.386 and interprets Neutral. The 7​ th question has 2.85 mean index<br />

and standard deviation 1.336 interpreting that the response is Neutral in this question.<br />

The mean index for 8​ th question got 3.11 standard deviation of 1.399 and the respondents<br />

presents Neutral in this question. The 9​ th question scored mean 3.03 and standard deviation of<br />

1.283 according of the interpretation respondents denotes Neutral. The 10th question obtained<br />

mean 2.66, standard deviation of 1.485 and interpretation of this question ware neutral.<br />

The 11​ th question has mean index of 2.89 and standard deviation of 1.392 meaning neutral in this<br />

case. The overall mean index of the independent variable is 2.73 and standard deviation of 1.348<br />

that indicates neutral .<br />

Table 4.2: Descriptive analysis on leadership style<br />

SN Items Mean Standard Interpretation<br />

Deviation<br />

Transformational leadership<br />

1 My boss seek different prospective when solving 2.26 1.244 Agree<br />

problem<br />

2 My boss talks optimistically about a future 2.38 1.254 Agree<br />

38


3 My boss specifies the importance of having strong<br />

sense of purpose<br />

2.33 1.248 Agree<br />

4 My boss talks enthusiastically about what needs to<br />

accomplished<br />

2.6 1.393 Agree<br />

5 My boss spend time teaching and coaching 2.68 1.377 Neutral<br />

6 My boss acts in a way that builds my respect 3.09 1.386 Neutral<br />

Mean index 2.56 1.317 Agree<br />

Transactional leadership<br />

7 My boss provides me with assistance in exchange<br />

for my effort<br />

2.85 1.336 Neutral<br />

8 My boss fails to interface until problem become<br />

serious<br />

3.11 1.399 Neutral<br />

9 My boss waits for things to go wrong before<br />

taking action<br />

3.03 1.283 Neutral<br />

10 My boss makes clear what one can expect to<br />

receive<br />

2.66 1.485 Neutral<br />

11 My boss concentrates his/her attention on dealing<br />

with mistakes<br />

2.89 1.392 Neutral<br />

39


Mean index 2.9 1.379 Neutral<br />

Secondly we report the dependent variable questions results, the 1​ st question has 2.90 mean index<br />

and standard deviation 1.446 interpreting that response is neutral in this question. The mean<br />

index for 2​ nd question is 3.10, standard deviation of 1.487 and the respondents denote Neutral in<br />

this question. The 3​ rd question has score mean index 2.95 and standard deviation of 1.388 in<br />

according to the interpretation respondents present Neutral. The 4​ th question has a mean of 3.13<br />

and standard deviation of 1.45 according of the interpretation respondents denote Neutral. The<br />

mean index for 5​ th question is 3.11, standard deviation of 1.39 and the respondent is Neutral in<br />

this question. The mean index for 6​ th question was 2.84, standard deviation of 1.42 and the<br />

respondents denotes Neutral in this question.<br />

The 7​ th question obtained mean 2.98, standard deviation of 1.49 and interpretation of this<br />

question is Neutral. The 8​ th question has 3.23 mean index and standard deviation 1.302<br />

interpreting that the response is Neutral in this question.<br />

Now the Overall the average mean index of dependent variable questions was 3.03 and the<br />

standard deviation is 1.39 this indicates that the overall questions of dependent variable was<br />

neutral to the respondents according to the context.<br />

Next we described the dependent variables as follows:<br />

Efficiency<br />

12 To me, not many workers quit or leave their jobs<br />

in this organization<br />

2.90 1.446 Neutral<br />

13 Workers are getting overtime benefits 3.10 1.487 Neutral<br />

14 The work is always done in time 2.95 1.388 Neutral<br />

15 Financial Resources are utilized competently 3.13 1.454 Neutral<br />

Mean index 3.02 1.44375 Neutral<br />

40


Effectiveness<br />

16 Customers are satisfied with services delivered 3.11 1.392 Neutral<br />

17 Services are delivered in all working days<br />

conveniently<br />

2.84 1.426 Neutral<br />

18 My organization has annual objectives 2.98 1.497 Neutral<br />

19 Annual objectives are accomplished 3.23 1.302 Neutral<br />

4.3: Zero Table Correlated between leadership style and organizational performance<br />

As shown in table 4.3, the relationship between Leadership style dimensions and organizational<br />

performance in Local government Mogadishu are investigated using linear correlation<br />

coefficient. The first objective of our study was to explore the Impact of Transformational<br />

leadership on organizational performance. Thus, result indicates that there is positive correlation<br />

as shown, the correlation coefficient ​.000 ​levels, in this study the transformational leadership had<br />

a positive correlation with organizational performance (r=​ ​.683**, P ​.000​).<br />

The 2​ nd objective of our study was to investigate the impact of Transactional leadership on<br />

organizational performance, we found that Transactional leadership has positive relationship<br />

with organizational performance (r.608**, p .000).<br />

Since this study is exploratory in nature, the collected data are further analyzed using the<br />

Bivariate Correlation test. The Bivariate Correlation test computes Pearson‟s correlation<br />

coefficient, and measures how variables or rank orders are related. Pearson‟s correlation<br />

coefficient is a measure of linear association. The correlation coefficient value (r) range from<br />

0.10 to 0.29 is considered weak, from 0.30 to 0.49 is considered medium and from 0.50 to 1.0 is<br />

considered strong as shown in the following table.<br />

41


Table 4.3: Correlation Coefficient<br />

No Variable 1 2 3<br />

1 Transformational Leadership 1<br />

2 Transactional Leadership .612** 1<br />

3 Organizational performance .683** 608** 1<br />

4​.4 Regression analysis<br />

In the study, regression analysis was conducted to test hypothesis, direction of relationship<br />

between independent variables and independent variable was also studied .It was observed that<br />

transformational leadership style (B= 0.497, p=.000) which means that transformational<br />

leadership influence and promotes organizational performance and transactional leadership style<br />

has (B= 0.303, p=.000) having positive and pronounced on organizational performance. The<br />

impact of independent variables on the dependent variable jointly explain 52% whereas only<br />

48% effect on organizational performance is explained by other variables not taken into<br />

account(R square =.524) which confirms the validity of the model as shown in the following<br />

table 4.4.<br />

Table 4.4: Hypothesis Test Using Regression Analysis<br />

Organizational performance<br />

Beta T Significance Remarks<br />

Variable<br />

Transformational .497 5.618 .000 Accepted<br />

Transactional .303 3.426 .001 Accepted<br />

R 0.724<br />

R square 0.524<br />

42


4.4. Major Findings<br />

The research we made in Mogadishu municipality was interesting and the people we met were<br />

delighted to cooperate with us since they answered the research questions with utmost sincerity,<br />

our objectives were to firstly test whether transformational leadership has an effect on the<br />

performance of Mogadishu municipality and after we collected information from employees of<br />

100 the results show impressive and in fact transformational leadership has a positive impact on<br />

the performance of Mogadishu municipality since most of the responses agreed with a Beta of<br />

.497 ​which indicates which means that transformational leadership influence and promotes<br />

organizational performance agreeing that transformational leadership traits are practiced in<br />

Mogadishu municipality, such as inspiration, focus on organizational goals and leading with<br />

vision.<br />

Secondly we aimed to see if transactional leadership style can influence on the effectiveness and<br />

efficiency of Mogadishu municipality and we found a Beta of ​.303 which means transactional<br />

leadership has a positive and pronounced effect on organizational performance and those<br />

transactional leadership traits such as problem solving and strong relationship between leaders<br />

and employees.<br />

43


4.4 Discussion<br />

As discussed in the previous topics this study was intended to investigate the relationship<br />

between Leadership style and organizational performance especially in Mogadishu municipality.<br />

To concentrate on the research problem we made objective for our study as follows:-<br />

● The 1​ st objective of this study was to know the effect of transformational Leadership<br />

style on organizational performance in Mogadishu municipality.<br />

● The 2​ nd objective was to examine how transactional leadership style can affect<br />

organizational performance of Mogadishu municipality.<br />

In the first objective We found that there is moderate positive relationship between<br />

transformational leadership and the performance of Mogadishu municipality (r= 0.683, p=0.000)<br />

which means that transformational traits of leadership practiced by Mogadishu municipality<br />

leaders have a better impact on the performance of the organization and it also means that<br />

whenever transformational leadership is practiced the more likely performance increases.<br />

The result of the second objective also shows a significant relationship was found between<br />

transactional and the performance of Mogadishu municipality, transactional leadership style<br />

positively influenced the performance of Mogadishu municipality.<br />

In general both transactional leadership style and transformational leadership style have a<br />

positive influence that can enhance the overall performance of Mogadishu municipality specially<br />

at the sides of efficiency and effectiveness of the entire organization, in other words, the results<br />

support that workers preferred both transformational and transactional leadership styles since<br />

there is a strong relationship between transformational leadership style and the performance of<br />

Mogadishu municipality as well as transactional leadership style and performance of Mogadishu<br />

municipality.<br />

44


CHAPTER FIVE<br />

CONCLUSIONS AND RECOMMENDATIONS<br />

5.0 Introduction<br />

In this chapter we concluded our study with conclusions and relative recommendations for the<br />

study in the first section we write some conclusion points on the research we carried out in<br />

Mogadishu municipality which was interesting and fruitful study, then in the second section we<br />

talked about brainstormed recommendations for the study and I hope it will be interesting too.<br />

5.1 Conclusions Of The Study<br />

This study was about the Leadership style and Organizational Performance In Mogadishu<br />

municipality. The target area was Mogadishu since it’s the capital of federal republic of Somalia,<br />

we preferred it to be role model for other municipalities in the country of our study which is<br />

Federal republic of Somalia, the target population of our study was Civil servants working in the<br />

different departments of Mogadishu municipality we used a descriptive design to investigate the<br />

charecteristics of respondents. Cross-sectional survey strategy was also conducted with a<br />

possible population of 100 citizens​. And the aim was of The study was explanatory research<br />

design to test the relationship between Leadership Style and Organizational Perfomance in<br />

Mogadishu municipality.<br />

The first objective was to determine the role of Transformational Leadership Style on<br />

Organizational Performance in Mogadishu Municipality and we found that overall average of the<br />

responds agreed that there are transformational leaders in Mogadishu municipality who possess<br />

characteristics of the transformational leaders with a Beta of .497 and this contributes to the<br />

performance of Mogadishu municipality which means that transformational leadership influence<br />

and promotes organizational performance.<br />

The second objective of this study was to describe the effect of transactional Leadership On<br />

organizational performance. The researchers found a beta of ​.303 which indicate transactional<br />

leadership has a positive and pronounced effect on organizational performance<br />

45


On the other hand the first objective of the study was to explore the contribution of<br />

Transformational Leadership Style on Organizational Performance. Thus, result indicated that<br />

there is positive correlation as indicated correlation coefficient ​.000 ​levels, in this study the<br />

Transformation had positive and moderate correlated (r=.683; P ​.000​).<br />

Objective two this study was to investigate the impact of Transactional Leadership Style On<br />

Organizational Performance, the researchers found that Transactional has positive significance<br />

on public service delivery as indicated (r=.608, p .000).<br />

Implications of the study<br />

This target of this research was to find out how leadership styles can effect organizational<br />

effectiveness and efficiency specially in Mogadishu municipality, so this research can support<br />

both the practice and theory of the study.<br />

Implications in practice<br />

1- This research indicates how important leadership style in both organizational efficiency<br />

and effectiveness and it proves how organizational management can enhance<br />

performance of the organization through effective leadership style .<br />

2- Mogadishu municipality can now ensure which style can benefit for the organization to<br />

effectively perform its role in service delivering through participation of the employees,<br />

trust among different departments and leading with vision.<br />

3- Mogadishu municipality managers have to analyze different situations that can enable<br />

organization to use its resource efficiently whether material or human beings through<br />

effective communication between the managers and the employees.<br />

Implications in theory<br />

1. The theory enabled was performance maintenance theory, it focused on how<br />

organizations can develop by successfully choosing effective leadership model applicable<br />

to every situation, so this study indicates how both transformational and transactional<br />

leadership have a parallel effect on organizational performance.<br />

46


2. Theoretical implications of this study suggest leadership style of the organization is<br />

sometimes not the ultimate factor that can enhance organizational effectiveness and<br />

efficiency that there are many other factors which can influence the performance of the<br />

organization, therefore theoretically this study focuses on one factor which is leadership<br />

style.<br />

5.2 Recommendations<br />

After we found the relationship between leadership style and organizational performance of<br />

Mogadishu municipality, In this part we would like to discuss about the possible ideas and<br />

recommendations for Mogadishu municipality the researchers of this study recommended the<br />

followings.<br />

Recommendations for the research<br />

1. We recommended a continuous research over the expanding size Mogadishu municipality<br />

functions in the near future.<br />

2. In this study we used questionnaire while there are several other instruments, we suggest<br />

application of different instruments that are useful too like interview in order to test<br />

whether the result is going to be the same or not.<br />

3. We also recommend that there are other important factors that affect the performance of<br />

Mogadishu municipality such as employee commitment organizational culture and<br />

environment, organizational accountability and capacity of employees to their job, so we<br />

suggest to study all the factors that are necessary to enhance the performance of<br />

Mogadishu municipality<br />

Recommendations for practice<br />

1. Mogadishu municipality should improve and tighten its security gate ways and hire<br />

professional security officers since there is a leak in the gate operations.<br />

2. Mogadishu municipality should identify key factors that affect performance of employees<br />

such as reward and promotion for the employees.<br />

47


3. Mogadishu municipality should fill social and economic needs of its employees such as<br />

health and housing facilities.<br />

4. Mogadishu municipality should implement a justice and accountability framework with<br />

reward and punishment discipline to develop a sense of responsibility among employees.<br />

48


NO. Time Frame<br />

APPENDIX A<br />

Time Framework<br />

Activities<br />

1 1-15october/2015 Planning of the project<br />

2 25/October/2015 Developing and submitted research topic<br />

3 2/November/2015 Submitted complete chapter one ”Introduction”<br />

4 18/November/2015 Chapter two “ Related Literature Review”<br />

5 25/November/2015 Chapter Three” Research Methodology’<br />

6 3/November/2015 submitted final draft of the research proposal<br />

7 8/ December / 2015 Defending of the project proposal<br />

8 5/April/2016 Submission of chapter four and five<br />

49


NO. Description<br />

APPENDIX B<br />

Budget (expenses incurred)<br />

Expense number<br />

1 Internet access $ 30<br />

2 Transportation expenses 30<br />

3 Printing expense 23<br />

4 stationary and supply material 5<br />

5 Telephone expense 15<br />

7 Supervision fee 120<br />

8 Miscellaneous expense 7<br />

TOTAL: ​$ 230<br />

50


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