Proceedings of 6th Annual American Business Research Conference
9 - 10 June 2014, Sheraton LaGuardia East Hotel, New York, USA,
ISBN: 978-1-922069-52-8
Fitness among Organisational Strategy, Leadership Style and Followership
Style and Its Contribution to Effective Strategy Implementation
Pulapa Subba Rao
Tel: + 675 3267 590 Fax: +675 3267 144
E-mail: pulapasr@upng.ac.pg
Albert C. Mellam
Tel: + 675 3267 302 Fax: +675 3267 144
E- Mail: al.mellamc@upng.ac.pg
Ponnusamy Manohar
Tel: + 675 3267 571 Fax: +675 3267 144
E- Mail: pomanoha@upng.ac.pg
School of Business Administration
University of Papua New Guinea
P. O. Box 320 University, Waigani, NCD
Papua New Guinea
ABSTRACT
The management and employees who assumes the leadership and followership roles respectively,
generally, are also likely to craft and implement organisational strategies. Appropriate fit among
strategy, leadership style, and followership style would contribute to effective implementation of
strategy and avoid possible conflicts among these three factors. Democratic leadership style provides
opportunities for followers to share their constructive ideas that are more appropriate for
implementation of diversification strategy. Participative leadership style allows the followers to
express their views, appropriate for implementation of expansion strategy. Similarly, the
transformational leadership style inspires the followers to be intrapreneurial (innovators within an
organisation) and contribute to innovative strategies.
Data in this study were collected from primary sources. Two separate questionnaires, one for leaders
and one for followers, were developed and administered concurrently with interviews. The
questionnaires elicited responses from 84 leaders/managers and 176 subordinates/followers of these
84 leaders/ managers from selected private enterprises in Papua New Guinea. This study was
conducted between July and December 2013. The 'T' test (t-value) and co- efficient of correlation (r value) were employed in this study. The 'T' test was employed to establishing if differences exist
between sample means, and whether the differences are statistically significant. The degree of
relationship was measured with the help of co- efficient of correlation.
This paper analyses the linkages among organisational strategies, leadership styles of managers, and
followership styles of employees in a selection of private enterprises (PEs) in Papua New Guinea
using solicited responses from selected managers and employees of different categories at different
levels. It also deals with the association among organisational strategies, leadership styles of
managers, followership styles of employees, and effective implementation of strategies.
The results showed that, strategies and leadership styles of managers and followership styles of
subordinates at higher level and middle level respondents with higher education and experience
background fitted and vice-versa. The correlations among fit situations, structural implementation,
behavioural implementation and functional implementation and the overall strategic implementation
outcome were positive, but moderate. It is observed that these situations were mostly due to lower
level education, experience, understanding of strategies and skills to adapt to strategic situations for
leaders and followers. It is therefore, suggested that senior management should educate and train
these managers and subordinates about strategies and provide skills to adapt appropriate leadership
and followership styles to implement the strategies effectively.
Key words: Strategy, Leadership Styles, Followership style, strategy implementation,
Acronyms Used: PNG=Papua New Guinea, PEs= Private Enterprises, SD=Standard Deviation.
2
Introduction
The concept of leadership has undergone a sea change from „born-leader‟ to „situation-leader‟ and to
„transformation leader‟. Views, assumptions and theories of leadership have changed significantly in
recent years. Organizations have set managers more as leaders to meet the challenges and achieve
higher order goals.
Organizational strategies broadly include stability strategy, growth strategy, diversification strategy,
innovative strategy and retrenchment strategy. Various types of leadership styles are broadly grouped
into four categories for the purpose of this study viz., (i) autocratic style, (ii) participative style, (iii)
democratic style and (iv) transformational (inspirational leadership) style. Autocratic leaders
centralize authority of decision making in them. Followers have no say either in the decision
making process or in implementation. Therefore, they have to adapt „yes-boss‟ style or face a
conflict.
Participative leaders decentralize authority and responsibility, and encourage subordinates to
express their opinions and views in the decisions making process as well as in implementation
process. However, the leaders take ultimate decisions. Followers have the choice to express their
opinions and views, and share ideas with the leader when the leader follows participative style.
Democratic leaders decentralize authority and encourage subordinates to involve in decisionmaking and implementation process. The leader and followers make decisions jointly and in
collaboration. Followers can provide constructive criticism.
Transformational leaders inspire the followers to be creative and innovative by realizing their
potentialities.
Followers
with
‘intrapreneurial’
style
appropriately
respond
to
the
transformational leaders. (Subba Rao, 2013). Thus the broad categories of followership styles
mentioned in this paper include (i) „yes-boss‟ style (ii) „opinion-expression‟ style, (iii) „constructive
critical‟ style and (iv) „intrapreneurial‟ style.
Fit among organizational strategies, leadership styles and followership styles results in effective
implementation of strategies, which in turn produce expected outcome, unless and otherwise other
factors influence differently. Any misfit among the organizational strategy, leadership style and
followership style will result in ineffective strategy implementation and will tend to produce the
outcome other than expected unless and otherwise other factors influence differently.
Exhibi-1 depicts the fit situations of organizational strategy, leadership styles and followership styles
with possible outcome.
3
Exhibit 1: Fit situations of organizational strategy, leadership styles and followership styles with
possible outcome
Strategies
Leaders
Followers
Outcome
Stability
Autocratic
Yes – Boss
Effective Implementation of Strategy
Growth
Participate
Opinion
Effective Implementation of Strategy
expression
Diversification
Democratic
Constructive
Effective Implementation of Strategy
Critical
Innovative
Transformation Intrapreneurial Effective Implementation of Strategy
Retrenchment
Autocratic
Yes – Boss
Effective Implementation of Strategy
Need for the Study
Private enterprises (PEs) in the post-globalisation era invest in technology as well as in people‟s soft
skill development including leadership skills in order to respond to the global challenges. In fact PEs
develop their people ahead of changes in order to act as a change agent and employ pro-active
strategies. It is indeed true because, organisations can be continuous learners through the development
of its people and meet the challenges of the competition, or perish is the face of fierce competitions.
Appropriate fit of organisational strategy, leadership style and followership style contributes to
effective implementation of strategies leading to organisational performance via employee
performance in PEs. This observation underscores the significance of this study.
Review of the existing literature on the theme of the study indicates that, there are a few studies in
other countries (Datta KV, 1999, 2003; Prasad, MS. 2001; Mukherjee R, 2004; Krishna KS, 2005;
Khandelwal,1994 and Subba Rao 2012). The studies in Papua New Guinea are rare to find. However,
there are a few studies on organizational environment and human resource management in Papua New
Guinea (Hess, 2001, and Imbun, 2001). Therefore, the present study is expected to contribute towards
plugging this gap.
The purposes of this study are to find out: (i) the impact of fit among organisational strategy,
leadership styles and followership styles at different levels of organisational hierarchy on effective
implementation of strategy, (ii) the impact of fit among organisational strategy, leadership styles and
followership styles of employees with different educational qualifications on effective implementation
of strategy, (iii) the impact of fit among organisational strategy, leadership styles and followership
styles of employees with different levels of job experience on effective implementation of strategy
4
and (iv) overall the impact of fit among organisational strategy, leadership styles and followership
styles at different levels of organisational hierarchy on effective implementation of strategy in PEs in
Papua New Guinea and to suggest measures to adapt appropriate fit.
Methodology and Results
Data used for this study were collected mostly from primary sources. Two separate questionnaires,
one for leaders and another for followers, were developed and administered together with interviews.
This is basically an empirical study about the organisational strategies, leadership styles of managers,
and followership styles of followers in selected PEs based on the perception of managers working in
PEs like, ANZ Bank, City Pharmacy, Air Lines PNG and Paradise Biscuits (PNG) Limited. The
organisations were selected based on random sampling technique as required database for private
enterprises in Papua New Guinea are not available.
The questionnaires elicited responses from 84 leaders/managers and 176 subordinates/followers of
these 84 leaders/ managers from selected private enterprises in Papua New Guinea between July and
December 2013.
The 'T' test (t-value) and co- efficient of correlation (r - value) were employed in this study. The 'T'
test was employed with a view to establishing whether the difference between two sample means is
statistically significant. The degree of relationship was measured with the help of co-efficient of
correlation. Other descriptive statistical tools like mean, standard deviation and percentage were
employed to report statistically, some of the relevant findings of this study.
This paper presents a fit of strategy, leadership styles and followership styles in PEs using three
factors viz., hierarchy, qualification and experience and its impact on effective implementation of the
strategies.
Hierarchy Based Analysis
Table-1 reveals the mean score values along with standard deviation (SD) and 'T' values of fit
situations of organizational strategy, leadership styles, and followership styles according to the
hierarchy levels viz., lower level management, middle level management, higher level management
and population as a whole, i.e., managers and followers of all levels. The mean values along with 'T'
values of
fit situations of organizational strategy, leadership styles and followership styles for the
three levels of managers and followers and population as a whole are, Xl = 11.44, X2 = 12.34 (T=2.96); Xl = 12.90, X2 = 13.35 (T=2.26); and X1 = 14.85, X2 = 13.95 (T= 1.85). This reveals that
fitness differed significantly in lower and middle level management regarding all strategies, however,
leadership styles and followership styles didn‟t match at these levels.
The fitness of strategies, leadership styles and followership styles were not statistically different at
the higher level. Calculated „T‟ values and mean-scores indicate that strategies and leadership styles
5
of managers at higher level and middle level fitted. The „T‟ values and mean-scores with regard to
fitness of strategies and followership styles indicate that, they are not significantly different because
SDs are comparatively higher in each strategic fitness of all the levels of management.
* X1= Mean score of LS, * X2 = Mean score of FS
Table 1: Comparative analysis of Fitness of Strategies, Leadership styles (LS) and
Followership styles (FS) and its contribution to effective implementation process according
to Hierarchy (Mean and Standard Deviation along with ‘t’ values)
Variables
Higher level of management
Strategic Fitness
X1
X2
't'
Mean
SD
Mean
SD
Value
Structural Implementation
16.81
1.57
1520
2.72
1.65
Behavioural Implementation
14.26
1.67
14.00
2.28
1.20
Functional Implementation
14.65
1.53
14.20
2.72
1.42
Outcome
17.09
1.44
15.40
2.44
1.43
Overall
14.85
1.12
13.95
1.42
1.85
Variables
Middle level of management
Strategic Fitness
X1
X2
't'
Mean
SD
Mean
SD
Value
Structural Implementation
10.41
3.51
11.75
4.66
1.88
Behavioural Implementation
16.91
2.25
17.00
3.55
1.86
Functional Implementation
15.78
3.62
16.32
3.12
1.87
Outcome
Overall
16.58
12.90
3.49
2.77
16.13
13.35
3.79
4.60
1.42
2.26
Variables
Lower level of management
Strategic Fitness
X1
X2
't'
Mean
SD
Mean
SD
Value
Structural Implementation
09.87
5.56
10.63
6.63
2.99
Behavioural Implementation
15.53
2.11
16.84
3.45
2.83
Functional Implementation
16.77
2.55
14.55
3.59
2.99
Outcome
14.70
3.25
15.72
3.25
2.20
Overall
11.44
4.85
12.34
3.65
2.98
6
Qualification Based Analysis
Table-2 depicts the mean value along with SD and 'T' values of effective strategic fitness of managers
on overall, as well as, factor wise basis according to the qualification of the managers who are in the
leadership roles and styles, and followership roles and styles. The qualification has been categorised
as secondary education, higher studies, professional studies, and population as a whole. The mean
values and 'T' values of fitness of strategies, leadership styles and followership styles on the overall
basis for the three categories of managers and population as a whole respectively are, X l = 11.21, X2
= 12.96 (T=2.17); XI = 12.48, X2 = 12.88 (T=1.99) and XI = 13.60, X2 = 14.65 (T= 1.67). This
reveals that the fitness of strategies, leadership styles, and followership styles differ significantly
regarding all managers with secondary education and higher studies. But the fitness of strategies,
leadership styles and followership styles did not differ significantly with regard to managers with
professional qualifications. Calculated „T‟ values and mean-scores indicate that strategies and
leadership styles of managers with higher-level studies and professional studies, and strategies and
followership styles of subordinates with professional qualifications fitted. Strategies and leadership
styles of managers with secondary and higher level studies and strategies and followership styles of
subordinates with secondary educational qualifications didn‟t fit.
* X1= Mean score of LS, * X2 = Mean score of FS
Table 2: Comparative Analysis of Fitness of Strategies, Leadership styles and Followership
styles and its contribution to effective implementation process according to Qualification
(Mean and Standard Deviation along with ‘t’ values)
Variables
Professional studies
Strategic Fitness
X1
X2
't'
Mean
SD
Mean
SD
Value
Structural Implementation
13.79
3484
10.01
3.61
1.45
Behavioural Implementation
13.27
2.87
14.78
3.45
1.94
Functional Implementation
13.41
2.13
14.92
2.17
0.68
Outcome
14.11
2.93
14.71
3.09
0.49
Overall
13.60
1.94
14.65
2.05
1.67
Variables
Higher studies
Strategic Fitness
X1
X2
't'
Mean
SD
Mean
SD
Value
Structural Implementation
12.35
3.97
10.79
4.07
2.79
Behavioural Implementation
13.08
4.24
13.04
3.47
1.98
Functional Implementation
14.71
3.72
14.37
2.21
2.18
Outcome
14.18
2.07
14.00
2.77
2.27
Overall
12.48
3.01
12.88
2.39
1.99
7
Variables
Secondary education
Strategic Fitness
X1
X2
't'
Mean
SD
Mean
SD
Value
Structural Implementation
10.27
5.96
8.5
4.71
3.84
Behavioural Implementation
10.66
3.16
11.82
3.06
2.86
Functional Implementation
12.77
2.82
13.05
2.87
2.26
Outcome
11.32
3.67
14.01
2.86
3.92
Overall
11.21
3.14
12.96
2.45
2.17
Experience Based Analysis
Table 3 exhibits the mean score values along with SD and 'T' values of fitness of strategies,
leadership styles and followership styles on overall as well as factor wise basis according to the
length of experience viz; low experienced, mediocre experienced, high experienced managers and
population as a whole. The mean values along with 'T' values of effective fitness of strategies,
leadership styles and followership styles of the three groups of managers and population as a whole
in two groups of leadership and followership respectively are, XI= 12.50, X2 = 12.09 (T-2.43); XI =
12.57, X2 = 11.39 (T-2.31) and XI= 12.50, X2 = 13.70 (T- 1.59). The results showed that, the two
groups (leadership and followership) did not differ significantly regarding higher experienced
managers in the leadership and followership. However, they differed significantly with regard to
lower experienced managers. In fact, the two groups differ significantly with regard to all types of
leadership styles of managers with low and mediocre experiences.
Calculated „T‟ values and means indicated that strategic link of higher experienced managers in
leadership and followerships fitted. Result of strategies, leadership styles and followership styles of
managers with low and mediocre experiences didn‟t fit.
X1= Mean score of LS, * X2 = Mean score of FS
Table 3: Comparative analysis of Fitness of Strategies, Leadership styles (LS) and Followership
styles (FS) and its contribution to effective implementation process according to level of Experience
(Mean and Standard Deviation along with ‘t’ values)
High experienced managers
Variables
Strategic Fitness
X1
X2
't'
Mean
SD
Mean
SD
Value
Structural Implementation
15.23
2.82
14.52
2.27
2.35
Behavioural Implementation
16.21
2.68
15.18
3.88
2.36
Functional Implementation
15.61
2.97
17.56
2.27
0.57
Outcome
14.95
3.07
15.14
3.42
2.75
Overall
12.50
2.88
13.70
2.75
1.59
8
Mediocre experienced managers
Variables
Strategic Fitness
X1
X2
't'
Mean
SD
Mean
SD
Value
Structural Implementation
7.92
4.06
5.92
4.69
2.98
Behavioural Implementation
16.50
2.84
17.92
2.69
1.76
Functional Implementation
15.95
2.64
15.85
3.52
2.10
Outcome
14.34
2.23
16.85
2.47
2.44
Overall
12.57
2.95
11.39
3.18
2.31
Low experienced managers
Variables
Strategic Fitness
X1
X2
't'
Mean
SD
Mean
SD
Value
Structural Implementation
7.92
5.00
6.82
5.09
2.52
Behavioural Implementation
16.61
3.19
19.76
2.53
1.65
Functional Implementation
15.78
2.63
15.06
2.78
1.38
Outcome
16.68
3.22
17.71
3.83
1.99
Overall
12.50
3.02
12.09
2.88
2.43
Overall study
Table 4 exhibits the mean score values along with SD and 'T' values of fitness of strategies, leadership
styles and followership styles on overall as well as factor wise basis according to the overall
component of hierarchy, qualification and experience of managers and subordinates (population as a
whole). The mean values along with 'T' values of effective fitness of strategies, leadership styles and
followership styles of three groups of managers and population as a whole in two groups of leadership
and followership respectively are, and Xl = 13.65, X2= 14.42 (T=1.69). This proves that two groups
(leadership and followership) did not differ significantly in overall strategic fit and implementation
effectively. Calculated „T‟ values and means indicate that strategic link of all the managers in
leadership and followership styles didn‟t differ significantly.
Correlation analysis of Strategic Fit and Strategy Implementation
An attempt was made to find out the correlation between fit situations of strategies,
leadership style of managers and aspects of strategy implementation like structural
implementation, behavioural implementation, functional implementation and final outcome.
The coefficient of correlation (r - value) has been calculated to identify the degree of
correlation among fit and outcome factors. The 'T' test has been used to verify whether these
variables are significantly different in the population or not. Table-4 presents Correlation
Matrix for fit situations, structural implementation, behavioural implementation and functional
implementation and the overall strategic implementation outcome.
9
Table 4: Comparative analysis of Fitness of Strategies, Leadership styles (LS) and
Followership styles (FS) and its contribution to effective implementation according to
overall study ( Hierarchy, qualification and Experiences) (Mean and Standard Deviation
along with ‘t’ values
Variables
Population as a whole
Strategic Fitness
X1
‘t'
X2
Mean
SD
Mean
SD
Value
Structural Implementation
17.25
1.60
16.27
2.15
1.63
Behavioural Implementation
15.31
2.63
15.72
2.91
1.00
Functional Implementation
16.81
3.38
17.88
2.81
2.47
Outcome
13.21
3.55
15.86
4.86
1.44
Overall
13.65
1.55
14.42
1.92
1.69
Table-5 provides correlation matrix along with „T‟ values for effective strategic implementation.
Table 5: Correlation Matrix along with ’T’ Values (in brackets) for Effectiveness of
Strategic Implementation
Variables
VI
V2
V3
V4
V5
0.74
0.75
0.73
0.78
(0.76)
(0.79)
(0.85)
(0.33)
V1
Effectiveness of Structural
Implementation
--
V2
Behavioural Implementation
--
--
V3
Functional Implementation
--
--
--
V4
Overall Strategic implementation
--
--
--
--
V5
Fit situations among strategy,
leadership styles and followership
styles
--
--
--
--
0.81
(0.04)
0.74
0.75
(0.65)
(0.01)
0.72
0.82
(1.05)
(0.37)
0.67
(0.12)
--
Note: * Significant at 5% level, V- Variables
It is observed from Table-5 that the correlations among fit situations, structural implementation,
behavioural implementation and functional implementation and the strategic implementation
outcome were positive, but moderate in overall outcome of fit situations. Similarly, the correlations
among the structural implementation, behavioural implementation and functional implementation
were also positive and significant as per „T‟ values. It also indicates that the fitness among strategy,
leadership style and followership style resulted in moderate implementation of strategies. In other
words; the fitness situations resulted in significant positive outcome of strategy implementation.
Conclusion
On the basis of above analysis and results, it is inferred that fitness of strategies, leadership styles and
followership styles differ significantly in lower and middle level of management. But the fitness of
10
strategies, leadership styles and followership styles were not statistically significantly different at
higher level. It also inferred that the fitness of strategies and leadership styles of managers at higher
level and middle level are acceptable. But strategies and followership styles indicate that, they were
not significantly different at lower level. This situation was mostly due to lack of knowledge of
strategy and appropriate leadership styles and followership styles that can be adapted at the lower
management levels. It is suggested that senior management must educate the lower level managers
and subordinates about strategies and the appropriate styles to implement the strategies effectively.
The degree of fitness of strategies, leadership styles and followership styles differ significantly
regarding all managers with secondary education and higher studies. But the fitness of strategies,
leadership styles and followership styles were not significantly different with regard to managers
with professional qualifications. Strategies and leadership styles of managers with higher studies and
professional studies and fitness of strategies and followership styles of subordinates with professional
qualifications fitted. Strategies and leadership styles of managers with secondary and higher level
studies and strategies and followership styles of subordinates with secondary educational
qualifications didn‟t fit. This situation is mostly due to the lower educational levels of leaders and
followers. It is suggested that senior management should educate the managers and subordinates with
lower level formal and professional education
about strategies, and the appropriate styles to
implement the strategies effectively.
It is observed that two group (leadership and followership) did not differ significantly regarding
higher experienced managers in the leadership and followership styles. However, they differ
significantly with regard to of lower experienced managers. In fact, two groups differ significantly
with regard to all types of leadership styles of managers with low and mediocre experiences.
Strategic fit was evident in higher experienced personnel in leadership and followership styles.
Fitness of strategies, leadership styles and followership styles of managers with low and mediocre
experiences was not evident. This situation was mostly due to the lower experience levels of leaders
and followers. It is suggested that senior management should educate the managers and subordinates
with less experience level about strategies and the appropriate styles to implement the strategies
effectively.
The correlations among fit situations, structural implementation, behavioural implementation and
functional implementation and the overall strategic implementation outcome were positive, but
moderate in overall outcome of fit situations. Similarly, the correlations among the structural
implementation, behavioural implementation and functional implementation were also positive and
moderate. It also indicates that the fitness among strategy, leadership style and followership style
resulted in moderate outcome. In other words, the fitness situations did result in moderate positive
outcome of overall strategy implementation.
11
Leaders and followers at lower level, with less formal and professional education, and less work
experience could not practice appropriate leadership and followership style to fit the organisational
strategy due to lack of appropriate skill and knowledge to adapt their styles based on strategy.
Therefore, it is suggested that the senior executives should train and educate these managers and
subordinates about organisational strategies at different levels, and the skills to adapt to appropriate
leadership and followership styles in order to maximise the effectiveness of strategy implementation.
REFERENCES:
Datta K.V., (1999), “Leadership and Motivation in Banking Industry in India” Personnel Today, vol.
XX, no.3.
Datta K.V., (2003), “Leadership and Motivation in Banking Industry in India” Indian Journal of
Labour Economics, vol. XXXXII, no.1.
Hess, M., (2001) “Management and culture under Development”, Labour and Management in
Development 2(3): 2-22 http//ncdsnet.anu.edu.au (Accessed 24/06/05)
Imbun, B. Y., (2001), “Human Resource Management in PNG Mining: Evidences from Porgera”, in
Imbun, B. Y. and McGavin, P. A., (eds) Mining in Papua New Guinea, University of Papua
New Guinea Press, Port Moresby, 96-112.
Khandelwall P. N. (1994), “Human Resource Development in Banks”, Oxford&IBH Publishing
Co.Pvt. Limited, New Delhi.
Krishna K.S.,(2005), “Leadership Styles Among Manufacturing Industries in Vusakhapatnam”,
GITAM Journal of Management, Vol. 3, No. 1.
Mukherjee R, (2004), “Impact of Leadership on Performance”, Labour Chronicle, vol.26, no.5.
Prasad, MS., (2001), “Leadership and Personality Development in Ship Building Industry in India”,
Indian Journal of Commerce, vol. 47, no.2.
Subbarao, P. (2012), “Essentials of Human Resource Management and Industrial Relations”,
Himalaya Publishing House, Mumbai, 117-118.
12