critically analyse the extent to which leadership style influences employee commitment &...
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Leadership style, Employee commitment, & Employee Engagement.TRANSCRIPT
University of Sunderland
Faculty of Business and Law
PGBM02
Managing Change & Leading People
"CRITICALLY ANALYSE THE EXTENT TO WHICH
LEADERSHIP STYLE INFLUENCES EMPLOYEE
COMMITMENT & ENGAGEMENT"
(Word count 3052 / Word limit 3000) 10%±
Adnan ul Haque.
(2014)
Leaders in simple words can be defined as, individuals that have ability to
influence and guide others as well demonstrate the culture as they are tone
setters. Batista-Taran, Shuck, Gutierrez, & Baralt (2009) in their research
conference regarding 'the role of leadership in employee engagement' stressed on
the notion of globalisation as, the changes in the approach of the organisations
and managements has altered to the great extent due to the era of globalisation.
Furthermore, Batista-Taran et al., (2009), explained that "employees are
considered more than just a part of unit working as a machine only for the
maximization of the production, as now the concept has emerged that employees
are valuable assets for the success and survival of the business and are as
significant as other tangible and intangible assets" (p. 15). A skilled person is
productive asset for the team that contributes towards the organisational success.
Heger (2007) strongly emphasis on the significance of the employees that
nowadays organisations are paying more attention to develop skills of employees.
In the highly competitive environment, HR professionals are investing time and
resources to retain and hire best brain for right tasks as talent management and
succession planning facilitates organisations to have strategic and competitive
advantage. To accomplish organisational goals, firms need to maintain the best
brain, therefore the role of leader enhances as leadership play essential role in the
employees commitment and engagement (Wu et al, 2006).
According to Harter, Schmidt, & Hayes (2002) "engagement is involvement of an
individual to work with self eagerness and content" (p. 269). Kahn (1990) suggests
that engagement is closely associated with the emotional and cognitive behavior,
that drives strong feeling in employees to contribute productively towards
organisational success. On the other hand employee commitment is "binding of an
individual with the organisation due to psychological state" (Allen & Myer, 1990).
Therefore, leader's attributes and styles has immense significance in to engage
employees in their jobs by increasing their level of commitment towards the
organisation (Vance, 2006).
According to Northouse (2004), the process where common goals and objectives
are being achieved by the collective team working as a one unit under one
inspiring individual is regarded as leadership. This means that when followers are
encourage to achieve the organisational outcomes in effective way by sharing the
same vision with the top management is result of effective leadership. "It is leader
who motivates employees and bring the changes that are essential for the survival
and progress of the organisation" (Batista-Taran et al., 2009, p. 17). According to
Bass (1985), leader's appreciation is essential for to strengthen the bond with its
workforce as the styles of leadership provide energy to employees to attain the set
objectives.
Concept adapted on the explanation of Vance (2010) 'Employee Engagement
& Commitment'.
Organisations as well individuals view the concept of leadership in depth and on
wide spectrum. According to Bethel (1990) employees are being influenced and
affected by the leadership as it has strong influencing ability. Moreover, Bohn and
Grafton (2002) elaborate the concept of leadership as it enhances the employee's
self confidence and forms a vision, by means of communication and coordination.
Increase Employee
Engagement
Build Employ-employer
relationship
Skill Development
Recognition
Appreciation
Enhance Employee
Commitment
Skills
Knowledge
Expertise
Experience
"The two main types of leadership is transactional and transformational
leadership" (Burn 1978; and Bass 1997).
Burns (1978) explains transactional leaders are those who uses reward and
punishment approach to make followers accomplish assigned tasks. Moreover,
Bass (1985), explains transactional leaders have three distinguish attributes, such
as (a) contingent reward, (b) laissez-faire, and (c) management by exception.
Contingent rewards is basically leader's common practice of rewarding the
employees for their efforts and attempts. Rewards are granted when leader
believe subordinates have clearly made a solid commitment towards work by
making hard attempt. In case leader feel conversely about the commitment and
engagement of subordinates, then there is no reward given to employees. A
traditional and conservative methodology of checking and monitoring the
performances of the subordinates by the leaders to ensure that the set standards
are being met by the workforce (Bass, 1998). Moreover, due to defensive
management approach leaders reduces the probability of employee's engagement
going outside the parameter.
Adapted from Burns (2008), "Leadership", P. 186
Northouse (2004) suggests, point where problem arises and leader alone involve
to resolve it is "laissez-faire" feature. Under this style of leadership, Judge and
Bono (2000), "leader thoroughly defines the expected criterion and design rewards
for employees who demonstrate engagement and commitment towards achieving
the organisational goals" (p. 755). However, Batista-Taran et al., (2009) argue that
TRANSACTIONAL LEADERSHIP
Contingent Reward
Management by Exception
Expected Outcome
Performance
Beyond Expectations
under this type of leadership style, the job satisfaction is less likely to improve for
the members of team. Since the above discussion explains that transactional
leadership style is based on "reward-and-punishment" approach therefore, there
are likely chances that employees engagement and commitment will enhance.
La Fosse is an excellent example of employee engagement and motivation
increased through effective leader. The leader's role is a demonstration of the
company's values, leading by example. There are monetary rewards for the
employees like bonus for high performances but the main notion behind these
rewards are to take good care of workforce. For all the positive efforts
demonstrated by the employees towards clients are being rewarded with beach
holidays. Employees are not motivated just to achieve set financial targets but
trained to improve their learning capabilities.
Concept adapted from Head (2010), 'An Extraordinary Success Story'.
La Fosse primarily focus on three distinct dimensions that are, (I) ambition, (II)
value, and (III) achievement (Head, 2010). Employees are engaged in meetings to
feel a part of the organisation and take work as a career, not just as a job. One of
Leadership
Management
Technical
the reason for its progress and growth is fair treatment to entire workforce.
According to Head (2010), employees are trained to take bold initiatives and work
in force-free manner. The statistics show that there is only 12% staff turnover
which itself states that employees have strong organisational commitment (Head,
2010).
Another important leadership style is explained in the LMX- Leader-Member
Exchange theory that focus on the 'quality relationship' between leaders and
subordinates (Center for Leader Development, 2006). Due to the high quality
correlation and coordination between followers and leaders, employees
demonstrate high level of commitment and engagement towards team work. On
the other hand, employees having low commitment and engagement is due to less
support from the leaders. As a result of this decisions are less influential,
employees are less responsible as there is less interaction between followers and
leaders.
One of the biggest factors for the success of Pets at home is the employee
engagement. The company's culture is strong as it is evident that it stands in fair
dealing, leadership, and well being on second number respectively (Goldfingle,
2012). The reason behind this fact is that employees are more involved in job,
there is a team work that enable the employees to work in more collaboration and
high mutual coordination is a result of peers working in friendly environment (Best
Companies Guide, 2013). The atmosphere of the company is that every individual
fell pride in his or her own assigned tasks and are more willing to help and support
other colleagues. Employees are more involve in job and are being taken care by
the company through leadership and fair dealing (Goldfingle, 2012). The learning
curve at the organisation is high as there are more opportunities for the
employees to engage themselves in working and learning (DIY WEEK, 2012).
The full support of leaders encourage and motivate them to participate more and
as a result of this, there is 83% of workforce that consider that they are part of the
organisation and has a significant role to offer in the success of the organisation
(Best Companies Guide, 2013). In other words, proper leadership and guidance
has increased employees organisational commitment. 86% of the workforce agree
that their manager openly talks to them, guide them, and work with them to
improve their learning capabilities and working efficiency. The organisational goals
and interest are the first priority of the workforce (Best Companies Guide, 2013).
The 91% of the employees agree that there are high chances of personal growth
and development at Pets at home. The organisation share the success with its
workforce (Best Companies Guide, 2013).
Burns (1978) explains transformational leadership as a procedure that takes place
when leaders and subordinates work in close coordination with each other by
motivating and inspiring by engaging in work deeply and demonstrating high level
of commitment. Moreover, four basic aspects of transformational leadership are:
(I) idealized influence (II) Individual consideration, (III) Inspirational Motivation, and
(IV) intellectual stimulation. The main focus is involving the employees so that they
are more committed towards assigned tasks during transformation. Hay (1995)
strongly argue that these dour distinct dimensions facilitate the leaders in
becoming iconic symbols and role models encouraging employees to have high
commitment and engagement to contribute towards the organisational goals and
success.
Concept Adapted from Northouse (2001), "Leadership"
Transformational leaders are have high focus on people as they motivate their
workforce to accomplish the organisational goals. Sam Walton, Wal-Mart's
founder wrote in his book "rules for success" that he visited frequently to Wal-Mart
stores to meet his employees and motivate them by encouraging and appreciating
them (Walton et al., 1996). This is a classical example of a transformational leader
to motivate employees and encourage them to be more engaged in their
respective tasks. Transformational leaders encourage employee participation,
therefore empower employees so that short term objectives are accomplished by
the workforce. In doing so, leaders mainly focus on the intrinsic needs of the
employees (Meyer & Allen, 1997).
Idealized influence
Individual consideration
Inspirational Motivation
Intellectual stimulation
Performance Beyond
Expectations
Another example of employee engagement and impact of transformational
leadership style is evident at "Cloudreach" which is ranked number one in the
small companies list of United Kingdom (The Sunday Times, 2013). It is a
company where employees work with positive energy and are more enthusiastic
about their work patterns. Taking in consideration the statement of Harter et al.,
(2002) regarding employee engagement that "involvement of employees having
enthusiasm for work as well satisfaction" (P. 269). Therefore, it can be said that
employee engagement is clearly present due to the transformational leadership.
All employees are given equal chances and the salaries are set according to the
business value. The young blood is important source for the success of
organisation as it takes fresh blood (Donelly, 2012). The employee turnover ratio
is 0% which indicate that people love working for Cloudreach. The culture of the
organisation promotes team work and encourage employees to participate actively
in the team work. The leaders are guide, they do not follow traditional autocratic
approach (The Sunday Times, 2013).
Leaders are friendly and the working environment is open and one that works with
continuous support of the leaders. The leaders encourage employee participation
in the decision making and problem solving (The Sunday Times, 2013). The
leader has a breakfast with the employee which is an absolute example of team
work, sharing vision and values, and moving in a same direction. The mutual trust
and bond between employees and leader is strong which increase the level of
confidence of employee, resulting into more motivation and effective working
demonstrated at cloudreach (The Sunday Times, 2013).
The opportunities for the personal growth is high which also motivates employees
to work more enthusiastically at Cloudreach. Employees are properly trained and
developed for their respective roles (Donelly, 2012). This means that employees
have high organisational commitment. In other words, affective, normative, and
continuance commitment is high in employees as a result of the leadership style.
The previous empirical research of McGregor (1960) has shown that two types of
employees in the organisation are X-type and Y-type. According to Robinson
(2010) those leaders who are consider and undertake theory Y, are democratic
leaders with ability to motivate workforce to perform better by involving them in
tasks. The result of this leads to improve organisational commitment as
employees are more willing to take initiatives and participate in the work willingly
and energetically. The level of trust between the employees and management
improve due to this type of leadership style.
Concept Adapted from McGregor (1960), "Human side of enterprise"
For instance, WL Gore and associates, encourages theory Y, as the leader acts
as a sponsor who works as a coach to ensure that employees personal goals are
aligned with the organisational goals. Festejo (2012) emphasize that employees
engagement is more visible as they are encourage to work in creative and free
manner. WL Gore has minimal hierarchy, ensuring that employee are empowered
to increase their affective, normative, and continuance commitment. Employees
are motivated by investing trust in them to do tasks without keeping strict control
or watching them over shoulder. Employees are self-motivated and manages
things by their own without losing the organisational goals (Smith, 2010). It is a
place where employees manage themselves by their own. More than a manager,
sponsors are leaders who works to develop and increase organisational
commitment in workforce (Shipper, 2007).
At WL Gore & Associate, Leaders encourages employees to actively participate in
the decision making process, which is another example of leaders subscription to
theory Y. At time employees are stopped from the ongoing projects but it does not
Theory X
Theory Y
reduce employee's commitment and engagement as leader ensures that
employees understand that this is done in the best interest of the organisation. To
ensure employees are creative, they are encouraged to be free thinkers to bring
innovation without taking stress. The employees work in collaboration and their
efforts are appreciated by the management (Smith, 2010). This is the reason of
low staff turnover because workers enjoy working with AL Gore. In other words,
employees have high engagement and commitment due to the leadership style
presently operating at the company.
According to Highsmith (2011) "Adaptive leadership style is a style based on the
rapidly changing environment as to address the changing demands and
responding to them in innovative and in situational manner" (p. 06). Such leader
has a quality of recognizing the need and adjusting according to it. Moreover,
"this type of leader has a potential to design decisions in a rational manner yet
progressive one to use a flexible approach in the constantly changing business
dynamics" (Highsmith, 2011, P. 08). However, Randall and Coakley, (2006)
strongly argue that, "adaptive leader is more like a process than an individual with
personal attributes and skills" (P. 03). Despite the counter argument, it is viewed
as one of the finest leadership style that resolves major organisational problems.
For instance, Collin Marshall of British Airways in 1980s is example of adaptive
leader who understood the need for changing the operating patterns and systems
and enable his team to work as the situation demanded. "This resolved the crises
for the organisation as it emerged as one of the favorite airline from the most
dissatisfying one" (Haifetz and Laurie, 1997, 07) .
"Under adaptive leadership style, employee's level of commitment tends to
improve as employees engage and enjoy their workplace responsibilities when
leader share the vision, and demonstrate and communicate the need for change
in right pattern" (Harrington, 2010).
Team leadership style is effective one to increase employee commitment by
engaging them as well ensuring that the tasks are accomplished by a total
teamwork. Herzberg's Two factor theory is an example of how workforce is
motivated to increase the level of their commitment by providing the hygiene
factors so that employees do not have dissatisfaction. Furthermore, motivational
factors like recognition and responsibilities are used by the leaders to increase
employee engagement.
Concept Adapted from Herzberg's Two factor theory (1966), "Work and the
Nature of Man"
According to Tuttle (2003), The leaders at Siemens use employee empowerment
as a motivator to enhance employee engagement at workplace. Motivators are
factors which as Siemens encourages employees to work in the best possible way
they can perform. Moreover, Tuttle (2003) narrates that, team leaders encourages
employees to work as one unit by personally involving in the task, rather than just
giving plain directions. This type of empowerment increases employee
commitment and motivates to work in collaboration. Moreover, in the changing
environment it is not only about survival but also about thriving that compels the
leaders or managers to adapt changes. Only well committed and engaged
employees will bring desired results.
Employees dissatisfied
and unmotivated
Employees satisfied
and motivated
Employees not dissatisfied but
unmotivated
HYGI
ENE
MOIVA
T
ION
To put it in a nutshell, organisations focus on the role of leaders to retain and
attract the best brain (talent) inside the organisation and keep the momentum of
success in long term in the highly competitive and dynamic environment as
various types of challenges are generated that have serious impact on the growth
and progress of the organisation. Now, leader's role is not just simply to motivate
the employees by giving monetary rewards. There is immense competition in the
market to have the best talent and succession planning. These two core concepts
serves theme for the leadership at the organisation. Through empowerment,
employee's engagement is developed which enable the workforce to demonstrate
high level of organisational commitment.
Leaders are the tone setters and exhibit the culture of the organisation as well
enable the employees to see the vision. Transformational leaders create the
environment for the employees that encourages them to demonstrate their
potential, abilities, and capabilities to accomplish organisational goals.
Transactional leaders usually believe in the reward and punishment system but
transformational leader encourages employees to take initiative and perform
better by fostering them and creating friendly environment. However, it is evident
that transactional leaders do not always have positive relation with job satisfaction
and commitment level of employees but transformational leader inspires
employees to perform more effectively. On the other hand, the adaptive leaders
have a huge impact on the employees engagement and level of commitment as
according to situation uses techniques.
Employees behavior and work related attitude is a result of the leadership styles
as those employees perform better, who work in collaboration and coordination
with the leaders. On the shoulders of leader lies the greatest responsibility of
talent management and succession planning as they are role models for others to
follow their footprints. In short, leadership is an 'X factor' as the employee
engagement and commitment heavily rely on the style of leadership.
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