leadership styles and organizational performance: theimpactofgender . styles and... ·...

LEADERSHIP STYLES AND ORGANIZATIONAL PERFORMANCE: THEIMPACTOFGENDER .

Ngu Nguok Ying

Corporate Master in Business Administration

2013

Pusat Khidmat Maklumat Akadcmik UNlVERSm MALAYSIA SARAWAK

P.KHIDMAT MAKLUMAT AKADEMIK

1IIIIIIIIIijifilllllllili1000246885

LEADERSHIP STYLES AND ORGANIZATIONAL PERFORMANCE: THE IMPACT OF GENDER

By

Ngu Nguok Ying (11031927)

A Research Paper Submitted in Partial Fulfillment of the Requirement for the Degree of

Corporate Master in Business Administration

Faculty of Economics and Business UNIVERSITI MALAYSIA SARAWAK

(2013)

APPROVAL PAGE

I certified that I have supervised and read this study and in my opinion it conforms to

acceptable standards of scholarly presentation and is fully adequate in scope and quality as a

research paper for degree of Corporate Master in Business Administration.

Dr. 10 May Chiun

This research paper was submitted to the Faculty of Economics and Business, UNIMAS and

is accepted as partial fulfillment of the requirements for the degree of Corporate Master in

Business Administration.

Professor Dr. Mohammad Affendy Arip Dean, Faculty of Economics and Business UNIMAS

ii

STATEMENT OF ORIGINALITY

The work described in this Research paper, entitled

"LEADERSHIP STYLES AND ORGANIZATIONAL PERFORMANCE: THE

IMPACT OF GENDER"

is to the best of the author's knowledge that of the author except

where due reference is made.

NOV NOVOK YINO 11031927

,iii

ABSTRACT

LEADERSHIP STYLES AND ORGANIZATIONAL PERFORMANCE: THE IMPACT

OF GENDER

By

NGU NGUOK YING

(The general objective of this study was to examine the gender differences in leadership

behaviour and investigate the impacts of leadership behaviour on organizational performance

of Sibu-based companies. While researchers have discovered the relationship between the • leadership behaviour and organizational performance and understand about the impact of the

leadership behaviour on the organizational performance of Sibu-based companies. In addition,

researches also have discovered gender difference in leadership behaviour, the possible

reasons and explanation for the fmdings. Hence, the present research differs from the previous

studies where a comprehensive study's framework has allowed for a better understanding on

these differences and relationship) A total of 200 sets of questionnaires were distributed to

the respondents of the selected companies in Sibu, Sarawak, 70 % of them, which are 140 sets

have been filled up and returned. There were eight hypotheses tested in this research. The

rmding revealed that there is no gender difference in leadership behaviour and there is

positive relationship between leadership behaviour and organizational performance. This

study is useful for Sibu-based companies to study gender differences in leadership behaviour

and relationship between leadership behaviour and organizational performance that aim at

helping organizations to have better understanding the gender differences, in tum, addressing

them and improving the organizational performance later.

iv

I

I

ABSTRAK

GAYA KEPIMPINAN DAN PRESTASI ORGANISASI: KESAN JANTINA

Oleh

NGU NGUOK YING

Objektif umum kajian ini adalah untuk mengkaji perbezaan tabiat kepimpinan antanra jantina

dan kesan tabiat kepimpinan terhadap prestasi organisasi di kawasan sibu. Penyelidik telah

menemui hubungan antara tabiat kepimpinan dan prestasi organisasi, dan mengetahui kesan

tabiat kepimpinan terhadap prestasi organisasi di kawasan Sibu. Oi samping itu, para

penyelidik turnt menemui bahawa perbezaan tabiat kepimpinan antara jantina" sebab dan

penjelasan yang berkemungkinan bagi hasil penyiasatan turut ditemui. Oleh itu, kajian ini

berbeza daripada kajian-kajian dulu di mana rangka kerja kajian teliti ditunjukkan bagi

pemahaman terhadap perhubungan dan perbezaan tersebut yang lebih lanjut. Sebanyak 200

borang soal selidik diedarkan kepada respond en di syarikat-syarikat terletak di kawasan Sibu

yang dipilih, sebanyak 70 peratus iaitu 140 borang soal selidik telah diisi, dan dikumpul.

Terdapat 8 hipotesis diuji dalam kajian ini. Keputusan menunjukkan bahawa tiada perbezaan

tabiat kepimpinan antara jantina dan terdapat hubungan positif antara tabiat kepimpinan dan

prestasi organisasi. Kajian ini berguna bagi syarikat-syarikat di kawasan Sibu untuk mengkaji

tentang perbezaan tabiat kepimpinan antara jantina dan kesan tabiat kepimpinan terhadap

prestasi organisasi yang boleh membantu organisasi untuk mengetahui lebih mendalam dan

menyeluruh terhadap perbezaan jantina, dan seterusnya memperbaiki prestasi organisasi.

v

ACKNOWLEDGEMENT

During the course of this project, I have received assistance of many people to whom I

am very grateful.

First and foremost, I want to thank to my supervisor, Dr. Lo May Chi un, for giving me

her support and advice throughout this project. Her patience and guidance throughout my

thesis is greatly appreciated.

A word of thanks to my beloved family and girlfriend for their love, care and supports

during my two years study in VNIMAS-Sibu branch for this CMBA course. I thank them with

all my sincere heart for their patience.

I would also like to especially thank to all my friends and course mates, who have

provided me with moral support and encouragement. Their support and motivation were

invaluable to me. Besides that, I would like to thank my colleagues, who have helped me a lot

in questionnaire distribution and questionnaire filling up.

I also wish to say thanks to all respondents who have been very co-operative and

bonest in their answering the questionnaires even though they are busy with their works

during that time.

vi

r Pusat Khidmat Maklumat Akademik UNlVERSm MALAYSIA SARAWAK

TABLE OF CONTENTS

Content

Approval Page

Statement ofOriginality

Abstract

Abstrak

Acknowledgement

Table of Contents

List ofTables

List of Figure

CHAFfER 1: INTRODUCTION

1.1 Background

1.1 .1 The Malaysia Scenario

1.2 Problem Statement

1.3 Research Objectives

1.4 Research Questions

1.5 Defmition of Key Tenus

1.5.1 Leadership Behaviour

1.5.2 Leadership Style

1.5.2.1 Employee-oriented Leadership Style

1.5.2.2 Production-oriented Leadership Style

vii

Page Number

11

11l

IV

v

VI

Vll

XIV

XVll

2

5

6

7

7

7

7

8

8

1

1.5.2.3 Change-oriented Leadership Style

l.5.3 Decision-making Style

l.5.3.l Sensing

1.5.3.2 Intuition

1.5.3.3 Thinking

1.5.3.4 Feeling

l.5.4 Motivation Profile

l.5.4.l Need for Achievement

1.5.4.2 Need for Affiliation

1.5.4.3 Need for Power

1.5.5 Organizational Performance

l.6 Significance of Study

l.7 Scope of Study

I, l.8 Organization of Chapters

CHAPTER 2: LITERATURE REVIEW

2.1

2.2

2.3

2.4

2.5

2.6

2.7

2.8

Introduction

Gender Differences in Leadership Behaviour

Leadership Behaviour

Leadership Style

Decision-making Style

Motivation Profile

Organizational Performance

Leadership Behaviour and Organizational

viii

8

9

9

10

10

11

11

11

12

12

12

13

14

15

16

16

20

23

26

28

29

30

Performance

2.9 Theoretical Framework 33

2.9.1 Gap in Literature 34

2.8.2 Description of Variables 34

2.10 Development of Hypotheses 35

2.10.1 Leadership Behaviour and Genders 35

2.10.2 Leadership Behaviour and Organizational 36

Performance

2.11 Conclusion 37

CHAPTER 3: RESEARCH METHODOLOGY

3.1 Introduction 39

3.2 Research Site 39

3.3 Research Design 41

3.3.1 Sample 41

3.3.2 Data Collection Procedure 42

3.4 Research Questionnaire 43

3.5 Measures 45

3.6 Statistical Analyses 47

3.6.l Descriptive Statistic 47

3.6.2 Validity Analysis 48

3.6.3 Reliability Analysis 49

3.6.4 Independent t-test 50

3.6.5 Pearson's Correlation Coefficient 51

ix

,.. ,

3.7 Conclusion 53

CHAPTER 4: FINDINGS

4.1 Introduction 54

4.2 Frequency Distribution 54

4.3 Respondent Demographic 55

4.4 Descriptive Analysis 58

4.5 Reliability Analysis 65

4.6 Hypotheses Testing via Independent t-test 67

4.6.1 Independent t-test between Male and Female 67

Leaders in Leadership Behaviour


Leaders in Leadership Styles

4.6.2.1 Independent t-test between Male and 69

Female Leaders in Employee-oriented

Leadership Style

4.6.2.2 Independent t-test between Male and 70 I I

Female Leaders In Production

~ oriented Leadership Style

I

4.6.2.3 Independent t-test between Male and 71 I

Female Leaders in Change-oriented

Leadership Style I


Leaders in Decision-making Styles

x


Female Leaders in Sensing Type of

Decision-making style


Female Leaders in Intuition Type of



Female Leaders in Thinking Type of



Female Leaders in Feeling Type of



Leaders in Motivation Profiles


Female Leaders 10 Need for

Achievement


Female Leaders 10 Need for

Affiliation


Female Leaders in Need for Power

4.7 Hypotheses Testing via Pearson Correlation 81

4.7.1 Pearson Correlation between Leadership 81

xi

I

Behaviour and Organizational Perfonnance

4.7.1.1 Pearson Correlation between 82

Leadership Styles and Organizational

Perfonnance


Decision-making Styles and

Organizational Perfonnance


Motivation Profiles and

Organizational Perfonnance

4.8 Findings of Hypotheses Testing 84

4.9 Conclusion 88

CHAPTER 5: DISCUSSION AND CONCLUSION

5.1 Introduction 90

5.2 The Backdrop 90

5.3 Discussion 93

5.3.1 Gender Differences in Leadership Behaviour 93

5.3.2 Gender Differences in Leadership Styles 94

5.3.3 Gender Differences in Decision-making Styles 95

5.3.4 Gender Differences in Motivation Profiles 95

5.3.5 Leadership Behaviour and Organization 96

Perfonnance

5.3.6 Leadership Styles and Organization 97

xii

Performance

5.3.7 Decision-making Styles and Organization 98

Performance

5.3.8 Motivation Profiles and Organization 99

Performance

5.4 Implications 100

5.4.1 Theoretical Perspective 100

5.4.2 Practical Perspective 101

5.5 Potential Limitations 102

5.6 Future Research 103 I

5.7 Conclusion 104

REFERENCES lOS

APPENDIX A: SURVEY QUESTIONNAIRE 142

xiii

LIST OF TABLES

Table Page

3.1 Summary of Questions for Each Variable 45

3.2 Interpretation of Size of Correlation Coefficient 52

4.1 Frequency Distribution of Survey Response 55

4.2 Respondents' Demographics 57

4.3 Mean and Standard Deviation Value for Descriptive 59

Analysis

4.4 Reliability Analysis Result 65

4.5 Descriptive Table of Leadership Behaviour 67

4.6 Independent t-test Table of Leadership Behaviour 67

4.7 Descriptive Table of Leadership Styles 68

4.8 Independent t-test Table of Leadership Styles 68

4.9 Descriptive Table of Employee-oriented Leadership 69

Style

4.10 Independent t-test Table of Employee-oriented 69

Leadership Style

4.11 Descriptive Table of Production-oriented Leadership 70

Style

4.12 Independent t-test Table of Production-oriented 70

Leadership Style

4.13 Descriptive Table of Change-oriented Leadership Style 71

xiv

4.14 Independent t-test Table of Change-oriented 71

Leadership Style

4.15 Descriptive Table of Decision-making Styles 72

4.16 Independent t-test Table of Decision-making Style 72

4.17 Descriptive Table of Sensing Type of Decision-making 73

Style

4.18 Independent t-test Table of Sensing Type of Decision 73

making Style

4.19 Descriptive Table of Intuition Type of Decision 74

making Style

4.20 Independent t-test Table of Intuition Type of Decision 74

making Style

4.21 Descriptive Table of Thinking Type of Decision 75

making Style

4.22 Independent t-test Table of Thinking Type of Decision 75

making Style

4.23 Descriptive Table of Feeling Type of Decision-making 76

Style

4.24 Independent t-test Table of Feeling Type of Decision 76

making Style

4.25 Descriptive Table of Motivation Profiles 77

4.26 Independent t-test Table of Motivation Profiles 77

4.27 Descriptive Table ofNeed for Achievement 78

4.28 Independent t-test Table of Need for Achievement 78

xv

4.29

4.30

4.31

4.32

4.33

4.34

4.35

4.36

4.37

Descriptive Table of Need for Affiliation 79

Independent t-test Table of Need for Affiliation 79

Descriptive Table of Need for Power 80

Independent t-test Table ofNeed for Power 80

Table of Correlation Analysis-Pearson Correlation 81

Matrix of Leadership Behaviour and Organizational

Perfonnance

Table of Correlation

Matrix of Leadership

Perfonnance

Table of Correlation

Analysis-Pearson Correlation 82

Styles and Organizational

Analysis-Pearson Correlation 83

Matrix of Decision-making Styles and Organizational

Perfonnance

Table of Correlation Analysis-Pearson Correlation 84

Matrix of Motivation Profiles and Organizational

Perfonnance

Summary of Results of Hypotheses Testing 88

xvi

LIST OF FIGURE

Figure Page

332.1 Theoretical Framework

xvii

I

CHAPTER 1

INTRODUCTION

1.1 Background

In this competitive and rapid changing business environment, the organization requires

capable leaders to make changes and cope with the changes in order to survive and obtain the

competitive advantage. In fact, definition of leadership changes over the time, where change

in employee needs cause relationship between leaders and their subordinates undergoes

changes also (Pradeep & Prabhu, 20 II ).

Furthermore, there are increasing numbers of female in the labour workforce. It is

supported by Moran (1992), where women consist of huge portion of workforce. In addition

to this, addressing different types of leadership style becomes increasingly significant to the

organizations nowadays.

It is undeniable that women participation in labour workforce has increased. Abidin,

Rashid and lusoff (2009) revealed that Malaysian women represent 44.5 % of the workforce

and academically qualified same as male; however, they are still under-represented at senior

management positions. This shows the difficulty of the women in making their career

advancement. However, the gender difference in leader effectiveness arisen.

Folkman (2012) revealed that female are rated more positively than males on an

overall leadership effectiveness index. According to Jack Zenger, CEO and Co-founder of

Zenger Folkman, women are still underrepresented at senior level of management and it is a

public-known fact while the data recommends that effectiveness of the leadership team will

improve higher by adding more women (Folkman. 2012).

1

According to Hicks-Clarke and Bes (2004), gender diversity does have direct

relationship with the organization's "financial success". It will also positively influence team

process outcomes (Kochan et aI., 2003). In addition, the effective diversity management can

help Company to obtain full creativity and also enjoy the benefits from diversity.

Harisis and Kleiner (1993) revealed that ineffective diversity management would lead

to respective high cost in terms of lost productivity, high turnover rate, high absenteeism rate

and increase of industrial conflict cases . All of these include related costs can be minimized if

the diversity is effectively managed (Cox & Blake, 1991).

According to Eric Labaye, managing director of McKinsey & Company, it is obvious

that women shall be forefront of the scene of economic and social since they share a huge

portions of global talent pool, and it is not an issue of fairness but to ensure the best

employees are brought together to cope with the challenges faced (McKinsey & Company,

2007).

1.1.1 The Malaysia Scenario

Women participation in Malaysia workforce has increased as compared to the past and

they contribute significantly to the nation economy. According to Chin (2011), urban female

in labour force participation is 45.8 per cent in year 2009; it is 14.2 % higher than female

labour force participation in 1980, which is 31.6 %. In addition, the female labours in the age

group of 25-29 and age group of 30-34 also increase from 46 % in 1980 to 61.8 % in 2009

and 43.8 % in 1980 to 57.8 % in 2009 accordingly.

In reality the female labour participation does not show significant improvement.

According to the World Bank's Malaysian Economic Monitor Report in April 2012, women

2

ur participation rate is only 46 % and it is less than hal f of the total numbers of women in

category of working age involved in labour participation (Merican, 2012). Besides that,

women participation at managerial position is still very limited. This is supported by

Porterfield and Kleiner (2005), women nowadays play important roles in industrial countries

but they are still underrepresented in managerial positions.

In Malaysia, government has revealed concern on women's development and make it

the priority where women are empowered to enhance their contribution to the economy

through Malaysia lOth Plan; even though, Malaysia is still in progress to develop the women

orld'orce. Prime minister also appeals to the listed corporations in order to reveal their

policies and achievements that can advance women in employment; so that there will be more

Malaysian companies to adopt and implement policies to support employment of women

(Talent Corp Malaysia, 2012).

The government revealed their hard work in women employment. In addition, the

IJC)vemment intended to increase numbers of women labour to 55 % by coming year 2015

(United Nations Development Programme, 2011). From the statistic done by Grant Thornton

Intanational (2009), 31 % of senior positions are held by Malaysian women as compared to

24 % in global average. It revealed that there are more and more women in grabbing the

higher position as compared to past decades

Although women are still considered as "underrepresented" in management position, it

is undeniable that women begin entering the workforce even the management position. It can

be seen through Subur Tiasa Holdings Berhad at Sibu. Subur Tiasa Holdings Berhad is a

public listed company where the majority of employees are female. There are quite numbers

of women involved in management level positions such as corporate services, risk

management, account, treasury, IT and others. In addition to this, the managing director of

3

this company is female, who manages the entire business of company. It revealed the message

that female also can play significant role as same as their male counterparts.

Therefore, the research on difference between genders in [eadership becomes one of

the areas of interest. This is supported by Moran (1992), researches interest in the study of

gender differences in leadership style in the aspects of psychology, sociology and

management as women have commenced to acquire more leadership position.

Cole (2004) mentioned that limitation of data gathered on how women behave in

senior positions and growing participation of women in international labour force motivate the

research to be conducted to study women's leadership style, specifically to examine women

whether they have their own leading ways (Trinidad & Normore, 2004). In addition, knowing

the women's styles of leadership is a significant method to fairness where women are not

stereotyped as the ways women lead" but as "Others ways of leading" (Trinidad & Normore,

2004).

Barker (2000); Bass and Avolio (1994) mentioned that selecting the right person fairly

to ensure the organization's effectiveness and succeed is the actual issue exists in leadership

differences. Therefore, coping with different types of leadership style becomes increasingly

significant for organizations (Moran, 1992). The purpose of reviewing the differences

between male and female in leadership not aims for comparison but to make a new and

different interpretation of female leaders' behaviours (Trinidad & Normore, 2004). By

knowing the differences and similarities of men and women 10 leadership style, the

organization can have better allocation of resources and manpower in order to ensure its

succeed.

4

Pusat Khidmat MakJumat Aka ; . .. VNlVERSm MALAYSIA SARAWAK'

1.2 Problem Statement

As the gender itself is concerned, there are differences between men and women in

many aspects such as characteristics, behaviours and others. Gray (1992, 2008) revealed the

idea that men and women are different, and how they lead are different innately also.

There are numbers of empirical study done on gender differences in leadership. They

might include Eagly and Johnson (1990); Stafyla (2008); Bodla and Hussain (2009);

lohmann and Rowold (2009); Druskat (1994); Mano-Negrin and Sheaffer (2004). In fact, the

previous studies are not only showing the differences but also the similarities between genders

mleadership style. They include Oshagbemi and Gill (2003); Kent, Blair, Rudd and Schuele

(2010) and Oshagbemi and Gill (2003).

There are numbers of study done on gender and leadership for the past 20 years and

yet the results remains greatly inconsistent (Jonsen, Maznevski & Schneider, 2010). The

iDconsistent results might be due to the organizational context of the study (Rohmann &

Rowold, 2009). For an example, the culture, work context even the sex composition in a team

could impact types of leadership style applied. The importance of context also stressed by

)'de (2005), where the meta-analysis concluded that context affects many levels even

J:D88Ilitude and direction of gender differences.

Although there are differences or similarities m leadership style, the feminine

....1I3~,hip styles are just different from the conventional male leadership styles and neither

is better or worse (Trinidad & Hormore, 2004). It is further supported by Shakeshaft

1993), the examination on gender differences not aims to judge the right or wrong of

. war approach but rather to assist in understanding and recognizing the gender

ences, so that, both males and females can work well together.

5

Different types of leadership style could have variety of impacts on the organization in

tenns of satisfaction, perfonnance and others. There are several empirical studies concluded

that different types of leadership style would differently affect organization. The studies

include Elenkov (2000); Arham and Muenjohn (2012); Pradeep and Prabhu (2011); Akram,

Alam, Ali and Mughal (2012); (Cushman & King, 1997).

In fact, there are some researchers conducted to investigate the impacts of the

leadership on the organizational performance, which include Lieberson and 0' Connor (1972),

Prenkert and Ehnfors (1997).

From the previous studies, most of them did show significant relationship between the

leadership and organizational perfonnance while they are only few or limited nwnbers of

study show no difference. In addition, different leadership styles would differently affect the

organization due to the different context. Therefore, it is worth to study Sibu organizations.

1.3 Research Objectives

The purpose of this research is to determine the gender differences in leadership

behaviour and investigate the effects of leadership behaviour on the performance of

organizations in Sibu, Sarawak. The specific objectives are:

• To determine the gender differences in leadership behaviour

• To determine the gender differences in leadership styles

• To detennine the gender differences in decision-making styles

• To determine the gender differences in motivation profiles

• To investigate the effects of leadership behaviour on organizational performance

6

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