Chapter 2
REVIEW OF RELATED LITERATURE
To highlight the significance of this study, this chapter provides pertinent literature and research
that the researchers uncovered. It also exemplifies the integration of the arts in order to properly
comprehend research and improve understanding of it.
2.1 Leadership and Leadership Styles
2.1.1 Definitions of Leadership
Leadership is one of those concepts that are very hard to define. McCleskey (2014),
citing Bass (2008) and other authors, argues that the search for a single definition of leadership
may be in vain since the correct definition of leadership depends on the interest of the researcher
and the type of problem or situation being studied. Only a few definitions from the vast array of
existing definitions of leadership are mentioned in this literature review.
The common components included in the various definitions are the technique used by a
person to influence or motivate others to meet corporate objectives. It is the process of raising
employees' levels of motivation and self-worth so they can complete organizational duties and
goals. Employee motivation is heavily influenced by the leader's leadership style and abilities
Kesting et al. (2016); and Bass (2019) said, ”The primary purpose and value of a leader
and leadership practice is to inspire others, deemed followers, to willingly engage together to
achieve a goal.”
To impact motivation, an executive needs to possess the appropriate leadership qualities.
Chakraborty and Mohanty (2017). Leaders exert influence over followers' thoughts and actions
(Shila & Sevilla, 2015); they win their trust as a result of earning their respect (Minzberg, 2010),
as cited by Bambale, Girei, and Barwa (2017). According to Pierro, Raven, Amato, and Belanger
(2013), power can be used as a tool to influence an employee's attitude and conduct.
The multifaceted field of leadership has resulted in various approaches and new
developments, demonstrating that leadership is dependent on individual traits and grows as
various properties are determined: the behavioral approach, which mentions that leadership
behaviors can be learned later; the modern leadership approach, which focuses on human
relationships in organizational structure; and the contingency approach, which emphasizes that
different contingencies can be learned later (Aydın, 2010; King & Vaiman, 2019).
Leadership is a skill that is learned beginning in elementary school. Education,
employment, and life events shape a leader's ideology and psychology throughout time. How to
get the task done best, how to define goals and objectives, and how to manage their outcomes,
become the winning formula for success for leaders. However, a leader may discover that her
winning formula is no longer producing the same results it once did. Each leadership style has its
time and place. New difficulties necessitate the development of new leadership abilities,
behaviors, and communication methods (Blanken, 2013; Sirisookslip, Ariratana, & Ngang,
2015).
Additionally, leadership is regarded as a skill that is learned beginning in elementary
school. Education, employment, and life events shape a leader's ideology and psychology
throughout time. How to get the task done best, how to define goals and objectives, and how to
manage their outcomes, become the winning formula for success for leaders. However, a leader
may discover that her winning formula is no longer producing the same results it once did. Each
leadership style has its time and place. New difficulties necessitate the development of new
leadership abilities, behaviors, and communication methods (Blanken, 2013; Sirisookslip,
Ariratana, & Ngang, 2015).
Tannenbaum, Weschler and Mussarik (1961) defined leadership as “interpersonal
influence exercised in a situation and directed, through the communication process, toward the
attainment of the specialized goal or goals” ( cited in Ali, 2012). According to Northouse (2004),
leadership is directing a group of people to accomplish designated goal ( cited in Packard, 2009).
Yukl (2008) defined leadership as a process where one person exerted influence intentionally to
a group of people in an organization through relationship, structure, and guide. Leadership, as
defined by Gharibvand (2012) is how the leader communicates in general and relates to people,
the way in which the leader motivates and trains the subordinates and the way leaders provides
direction to his/her team to execute their tasks. Sharma & Jain (2013) defined leadership as a
process of which a person influences other people to accomplish an objective and directing in a
way that makes it more cohesive and coherent.
Evidence Review (Leithwood, Louis, Anderson & Wahlstrom, 2004) suggests that
successful leadership can play a role. Most important role. However, their role in
improving student learning is often underestimated. Leadership is not just for them, it is
also the ability to enable a person to successfully complete a specific task, the ability to
provide continual guidance and improvement to others. It raises a lot of legal issues that
need to be implemented. A university must be managed as an organization like any other
organization. Organization (Van Deventer, 2007) because the university specifically does
the work. From now on, this work will be the work and responsibility imposed on each
person in order to fulfill the mission of the university.
2.1.2 Definition of Leadership Styles
Leaders use knowledge, power, skills, responsibilities and position to shape employee
behavior through leadership style (Keskes, 2013) (Scilla & Sevilla, 2015). More specifically,
leadership style is the direction a leader gives and the motivations he uses (Aleksic,
Stamenkovic, Nielsen, n.d.). Additionally, a manager's leadership style influences employee
behavior. Leadership style is the behavior of a leader (Lo, Ramayah & de Run, 2010).
manifestation of leadership. On the one hand, leadership styles vary from manager to manager.
Differences in values, orientations, preferences, and effects he as a transactional or
transformational leader (Vera & Crossan, 2004). School Leaders Prefer Leadership Examining
perceptions of her style is relevant because it influences how leaders work. Leadership (Raja &
Palanichamy, 2011).
Choosing a leadership style is important because style is one of the core tasks of a leader.
Different situations (Ohkoji, 2015) As an author of the leadership literature and as a leadership
practitioner, this requires a better understanding of aspects of his style of leadership. Theoretical
progress and practical measurement of constructs” (Lo, Ramaya & Deran, 2010).
In the Philippines, Abenes et al. (2017) designed a study to investigate differences in
academic achievement. Administrators hindered the effectiveness of Metro Manila's
faculty. It was the age, location, tenure and educational background of the manager.
Grades influenced faculty effectiveness. This is quantified through student satisfaction
surveys. A literature search revealed that in addition to Abenes et al. (2017) There is a lack
of research examining the impact of school leadership style on academic performance
managers in the Philippines. (2017) focused on how his academic leadership influenced the
faculty. Effectiveness through the use of student satisfaction surveys. Results were not
comprehensive in terms of student satisfaction. Student grades are not reported. Some
scholars have stressed that it would be difficult to retain disciples by endorsing this.
No single leadership approach will be effective for improving all schools and all
student outcomes. This notion infers that “improvement requires leaders to
enact a wide range of practices” (Leithwood & Sun, 2012, p. 403) [32]. Effective
leadership is a highly responsive and contextualized relational process (Hallinger,
2010) [8].
1. Transactional leadership
Transactional leadership is defined as a type of leadership that prioritizes organizational
accomplishments that are focused on the organization. The sub-dimensions of transactional
leadership are conditional award, management with expectancy, and management with passive
expectancy. Transactional leaders have a leadership style that focuses on the continual
accumulation of staff productivity throughout the history of the firm, and they overlap with
creativity and transformation. Laissez-faire leadership arose as an alternative to transformational
and transactional leadership and refers to a managerial strategy based on the absence of a leader
in organizations and/or the leader's indifference to the organization and its employees (Rowold &
Schlotz, 2013).
The strategy used by former General Electric CEO Jack Welch serves as an illustration of
transactional leadership. Welch was renowned for emphasizing performance metrics and his
"rank and yank" approach, which involves routinely reviewing employees and terminating the
poorest 10% of performers (Harpaz, 2017). This strategy emphasized clear expectations, rewards
for excellent performance, and penalties for subpar performance; it was founded on the
transactional leadership concepts.
At General Electric, Jack Welch's transactional leadership style was successful in generating
financial gains. It is crucial to remember that transactional leadership has its limitations and
might not be suitable for all circumstances or companies. The corporate culture, the
organization's objectives, as well as the leader's personality and preferred leadership style, all
play a role in how effective transactional leadership is.
2. Transformational Leadership
Transformational leadership has risen to prominence in leadership thought in the recent two
decades (Susik JJ, Jung D, 2018). As a result, it is not unexpected that the current progress in
leadership theory and practice has piqued the interest of both practitioners and researchers, who
are eager to investigate its implications for organizations and individuals alike ( Udin, 2020)
(Sahu, Pathardika, & Kumar 2018). Transformational leadership is strongly linked to followers'
behaviors and performance, according to studies completed in the previous decades (Chan and
Mak, 2014)
The concept of transformational leadership was first introduced by leadership expert
James MacGregor Burns (1978). It is the process by which leaders engage followers by
motivating
them
through
empowerment,
learning,
trust
and
communication.
Transformational leaders encourage a collaborative approach in which both leaders and
employees work together towards a shared vision of the organization's present and future.
Transformational leaders possess charismatic skills, instill moral values, and strive to
educate their employees. This leadership style provides a type of vision that increases
employability and employee/employee commitment to accomplish high-value tasks that
lead to maximum performance (Avolio & Bass, 2004). As a result, the following employees
have made every effort to bring the organization's standards in line with global standards.
At the same time, transformational leadership is innovative and to some extent creative,
making bold decisions and strongly cooperating with the will of all entities within the
organization (Salman, Riaz, Saifullah & Rashid, 2011). Transformative leaders are believed to
reshape the structural framework of their organization
to align with the performance and
aspirations of their employees, taking into account global standards and current conditions.
Transformational leaders develop trust levels to build trust among employees who embody the
value of people's thinking, leading to improved performance (Chandra & Priyono, 2016). Your
innovative leadership style has these four characteristics of her:Idealized influence, personal
interest, inspirational motivation, intellectual stimulation.
Indra Nooyi, a former CEO of PepsiCo, is a prime example of transformative leadership.
Nooyi was renowned for emphasizing innovation and sustainability as well as for her capacity to
encourage and inspire her staff to share her vision (Senge & Carstedt, 2015). She promoted an
innovative culture within the business by encouraging her staff to take chances and think
creatively.
In general, transformational leadership can be a successful leadership style in circumstances
when change is required and where leaders can enthuse and motivate their followers to work
toward a common objective.
3. Laissez-faire leadership
Laissez-faire leadership is passive leadership, often described as "avoidance behaviour." This
type of leadership addresses failure or avoidance. Two features are:Manage by exception
(passive) and laissez-faire (meaning avoid involvement). This is considered weak leadership
because of the passivity and inefficiency of the traits this leadership style uses (Bass & Avolio,
2015).With respect to laissez-faire leadership, leaders do not directly monitor members and do
not rely on regular communication or feedback.
The writers of the Harvard Business Review article "Leadership styles and their impact on
employee productivity" by Eric Garton and Michael C. Mankins identify Netflix CEO Reed
Hastings as an example of a Laissez-Faire leader. According to the writers, Hastings trusts his
employees to make their own judgments and does not micromanage their job. According to
Hastings, "Adequate performance gets a generous severance package." This comment
demonstrates that he expects his employees to take responsibility for their work and does not
intervene unless absolutely required.
Deluga (1992) proclaimed that laissez-faire leadership style is associated with
unproductiveness, ineffectiveness and dissatisfaction (cited in Koech & Namusonge, 2012).
According to Bass & Avolio (1997) and Hartog & Van Muijen (1997), laissez faire leaders avoid
making decisions, the provision of rewards and the provision of positive/negative feedback to
subordinates (cited in Mester, et al., 2003). Jones & Rudd (2007) described laissez-faire
leadership as leadership in an inactive form characterized by unwillingness to be actively
involved and a view that the best leadership comes from disassociation from activities. Cilliers,
Van Eeden & Van Deventer (2008) stated that these leaders avoid active participation in
responsibility of goals setting and avoid being involved when leadership direction is needed
(cited in Ejimabo, 2015).
4. Democratic Leadership Style
Democratic leadership, according to Northouse (2019), is a style in which the leader
solicits input and criticism from team members before making choices. Decisions are made in a
collaborative manner, and the team's leader honors team members' perspectives and fosters open
communication. High levels of respect, support, and trust between the team members and the
leader define this leadership style.
Similar to this, Yukl (2013) defines democratic leadership as a style in which team
members share in the responsibility of making decisions. The team's leader cherishes the team
members' thoughts and ideas and encourages them to participate in decision-making. A sense of
ownership and dedication are fostered among team members as a result of this leadership style,
which also encourages creativity and innovation.
According to the researchers' findings, which are supported by the theoretical
justification for democratic leadership style, planning within a democratic leadership system is
performed with significant employee involvement and transparently and clearly articulated
objectives, along with performance metrics that go along with them. In a democratic system,
decision-making is decentralized, flexible, with clearly defined roles and a welcoming, inclusive
workplace. High performance is acknowledged and rewarded, with punishments as a form of
reprimand being the final resort (Albert et al., 2014).
When team members' cooperation and contribution are respected and they have the
requisite information and abilities to contribute to decision-making, democratic leadership can be
a successful leadership style.
Dahl (1989) and Fishkin (1991) proclaimed that democratic leadership influences people in a
manner consistent with the basics of democratic principles and processes, such as deliberation, equal
participation, inclusiveness and self-determination (cited in Gastil, 1994). According to White &
Lippitt (1960), democratic leaders actively encourage and stimulate group decisions and group
discussions ( cited in Choi, 2007). Kuczmarski and Kuczmarski (1995) defined characteristic of
democratic leaders as influential, helpful, knowledgeable, a good listener, encouraging, guiding,
respecting and situation-centered ( cited in Ray & Ray, 2012). Mullins (1999) stated that democratic
leadership style centralised more on people and interaction is greater within the group (cited in Puni,
et al., 2014).
Democratic leadership style has positive significant impact on employee performance.
Democratic leadership represents all those leaders who makes decision without the
consent of team members and is usually applied when quick decision is taken and team
agreement is not important for acquisition of successful results (Boehm, et al., 2015). Little
opportunity are given to staff and team members to make suggestions, even if it is in the best
interest of the team or organization (Amanchukwu, et al., 2015). An autocratic leader mostly
makes selection on the basis of their own judgments and ideas that rarely include follower’s
advice and these leaders have absolute control over the group (Zareen, et al., 2015). According to
Iqbal, et al. (2015), autocratic leaders give orders without explaining the reasons or future
intentions.
5. Autocratic Leadership Style
According to Maqsood, Bilal, and Baig (2013), an autocratic leadership style is
characterized by a lack of employee involvement and individual control over all
decisions. Autocratic leadership typically rejects advice from followers and makes
decisions based on their own opinions and assessments. The staff are under the complete,
dictatorial control of an autocratic leader. Few or no group members participate in
decision-making; group leaders dictate all working practices; and group members are
rarely trusted with significant tasks or decisions are some characteristics of autocratic
leadership, as noted by Leadership Styles (2015).
In some situations, such as those requiring prompt decision-making without much
consultation, autocratic leadership may be advantageous. When a specific type of
leadership style is applied, nothing significant can be successfully accomplished.
According to Maqsood, Bilal, and Baig (2013), group members may actually favor an
authoritarian approach when there is a military war. The workforce may concentrate on
completing certain tasks without having to worry about making difficult choices thanks to
this working style, which can help the organization.
According to Gosnos and Gallo (2013), the autocratic style of leadership is
characterized by the lack of employee participation in the decision-making process, the
making of all choices without the consent of the staff, and the exercise of "iron hand"
control. Additionally, they are unyielding, and the majority rarely offer an explanation for
their actions. Leaders frequently disregard prior agreements with employees. Tasks and
procedures are set, and worker initiative and decision-making are not taken into
consideration.
Although autocratic leadership can be effective at times, it can also lead to
inaction on many occasions. For this reason, leaders who overuse this style of leadership
are frequently seen as dictatorial. The adoption of an autocratic style can prevent
businesses from coming up with innovative ideas because the staff is unable to contribute
because they are not consulted (Northouse, 2015).
In accordance to Khan, et al. (2015), autocratic leadership is where manager retains
as much power and decision-making authorisation as possible. Melling & Little (2004) stated
that autocratic leaders are high-handed leaders and are the centre of every activities that go
on in the establishment and all authority emanated from them and ends with them (cited in
Akor, 2014). According to Iqbal, et al. (2015), autocratic leaders are characterized by an “I
tell” philosophy; autocratic leaders tell other people what to do. Nwankwo (2001) and Enoch
(1999) described autocratic style as a leadership style where leaders exclusively make
decisions and production is emphasized at the expense of any human consideration (cited in
Akor, 2014).
Autocratic leadership style has positive significant impact on employee
performance.
In this style the performance of workforce entirely relies on team member’s
ability, skills and capabilities (Adler & Reid, 2008). Team members are free to take
decision in their own way and leaders provide complete freedom to subordinates to work
as per their own way and take major decisions (Coyle‐Shapiro, 2013). Some renowned
researchers have stated that Laissez-Faire style had led to increased job satisfaction and
better performance of employees, but could be damaging if team does not manage their
time well or if they are not self-motivated to do their work efficiently (Martin, 2013).
Laissez-Faire leadership style usually leads to increased chaos in the organization as
every individual believe him or her as own leader (Monzani, 2015).
2.2 Demographic Profile
Demographics are the quantifiable statistics of a particular population, and demographic factors
relate to personal characteristics such as age, gender, social class, level of education, family,
race, and ethnicity (Elliot & Shepherd, 2006). Simon (2012) hypothesized that demographic
factors are
factors related to personal characteristics such as age, gender, social status,
education, and family. This study addresses two demographic factors. This includes age and
gender.
Bell et. al. (2015) argue that with the emergence of a younger generation, a talented workforce
and leaders who can connect deeply with them are essential. Three demographic profile variables
are proposed. gender, age, educational background. because it is established. Government
managers were significantly correlated with local administrative efficiency. John C. Cha, James
T. Calleja, Patrick G. Mendoza, Jose L. Yupanko, Rodiel C. Ferrer186 Asian Journal of Business
and Accounting 12(2), Stillside et al. (2013) argue that male leaders are more flexible in solving
organizational problems and requirements and becoming female leaders. Impact on Leadership
Style Their gender balance is due to innate personal leadership qualities (Amin & Kamal, 2016).
In a much earlier study, Eagle and Carli (2003) provided empirical data. Evidence for a
relationship between gender and management style. They argued that women leaders were more
likely to use transformative methods. that ties employee performance to rewards. It was
concluded that this was because female traits tended to be more observant and sensitive to the
emotions of others compared to male traits. Another study, Wong, Cummings, and Ducharme
(2013), identified age as a factor influencing attitudes towards diversity in leadership. They
argued that older workers have different leadership styles because they have worked in different
work environments. Young leaders tended to be different and had different practices by
comparison. Energetic and ready to discover new things. Oshagubemi and Her Ocholi (2013)
report that young leaders feel more comfortable in rapidly changing environments. They were
more willing to take risks. You like thinking about new approaches. This also applies to young
managers. They have been found to have more energy and the ability to inspire and inspire
others.They often seek out new opportunities and tend to do so.
Studies have examined the effect of gender in certain situations, such as educational leadership
(Choge, 2015, Longman & Anderson, 2016; Zhao & Jones, 2017). Males and females have been
both represented in educational leadership, yet there has been an underrepresentation of women
in educational leadership (Choge, 2015, Dahlvig & Longman, 2014; Longman & Anderson,
2016; Zhao & Jones, 2017). In education, females dominate the educational workforce as
teachers (a discrepancy of representation of males) while males dominate the workforce as
various leaders (a discrepancy of representation of females) (Choge, 2015).
Congruity of gender roles has affected both males and females. The consequences and
implications of these congruencies and non-congruencies have affected leadership representation
(Eagly, Karau, & Makhijani, 1995; Paustian-Underdahl et al., 2014; Zhao & Jones, 2017). These
17
consequences may have been derived from the social constraint, as described in the role
congruity theory. The role congruity theory implies that organizational leadership is associated
with men because of their agentic characteristics, which is to be “aggressive, ambitious,
dominant, forceful, independent, self-sufficient, self-confident and prone to act as a leader”
(Brandt & Laiho, 2013; Eagly & Karau, 2002, p. 574; Zhao & Jones, 2017). On the other hand,
females have been associated with having communal characteristics, which include being
sensitive, a people-person, considerate, gentle, and nurturing (Brandt & Laiho, 2013; Eagly &
Karau, 2002; Paustian-Underdahl, et al., 2014; Zhao & Jones, 2017).
Limitations
This section defines the limitations that are possible in accomplishing the
research in a successful way. There are various aspects that may lead to limit the
accuracy of research outcomes. The first point of concern is regarding sampling.
As selecting a sample cannot access the complete population, there can be
differences in assumptions made on the part of complete population. Further
other limitations involve the interest of respondents in answering the questions.
They might be influenced to answer it without concerning over its seriousness
and fill it so as to save their time. As the sample selected is from 100
respondents, it cannot justify the impact of leadership style on employee
performance issue on the base from the same organization because of large
number of population cannot be studied with a sample. Also the respondents
might involve in biasness while answering as they might not feel comfortable in
agreeing to the problems they face in the organization. The sample of the study
might be another limitation. The organization is a private sector company, which
governmental agency might have limiting the impact they could have on their
surroundings. Thus these limitations explain the hurdles that researcher might
face in completing the investigation and fulfilling all the aims and objectives
with better accuracy.
Duevel, Nashman- Smith, and Stern (2015) and Wolfram and Gratton (2014) acknowledged that women
are entering higher leadership positions. Understanding social constructs in educational leadership is
necessary as more women are striving for higher level educational leadership. Currently, males
dominate higher-level positions in education (Zhao & Jones, 2017).
Future research Direction
The upcoming research may be conducted with inclusion of more and different variables such as gender
of superior and number of years working with superior. As only one organization participated in this
study, future researcher could widen the number of organizations. The future researcher can enlarge a
bigger sample data size in different industries such as travel, banking, retailing services and hospitality
industries for a broader view. Furthermore, researcher can expand this model to include employees
work outcomes such as turnover intention, work performance and work commitment.