Australian Journal of Basic and Applied Sciences, 7(14) December 2013, Pages: 419-424
AENSI Journals
Australian Journal of Basic and Applied Sciences
Journal home page: www.ajbasweb.com
The Mediating Role of Leadership Style between Characteristics of Crisis and Decision
Making Style: A Review
1
Zainal Ariffin Bin Ahmad, 2Abdullah Alkharabsheh, 3Abdelrhman Alkharabsheh
1,2
Graduate Business School, Universiti Tenaga Nasional (UNITEN), Kajang, Selangor, Malaysia.
Jordanian Armed Forces,Tabrbour, Amman City Center, 19628.
3
ARTICLE INFO
Article history:
Received 1 October 2013
Received in revised form 20
December 2013
Accepted 23 December 2013
Available online 1 February 2014
ABSTRACT
Background: This paper presents review of the literature arguing leadership style
mediates the relationship between characteristics of crisis and decision making style
whereas previous literature has linked decision making to crisis, there is a dearth of
research on the relationship between crisis to decision making style.
Key words:
Leadership style, Characteristics of
Crisis, Decision making style
© 2013 AENSI Publisher All rights reserved.
To Cite This Article: Zainal Ariffin Bin Ahmad, Abdullah Alkharabsheh, Abdelrhman Alkharabsheh., The Mediating Role of Leadership
Style between Characteristics of Crisis and Decision Making Style: A Review. Aust. J. Basic & Appl. Sci., 7(14): 419-424, 2013
INTRODUCTION
Crisis leadership denotes a set of actions undertaken by a leader to bring about immediate change in people’s
behavior and beliefs as well as to achieve needed outcomes (Gardner and Laskin, 1995). In a crisis situation, a
leader provides “stability, reassurance, confidence, and a sense of control” (Lussier and Achua, 2004. p. 382).
Hadley, Pittinsky, Sommer and Zhu (2011) argue that leaders in crisis situations are under severe time pressure
and have less time to acquire, secure, and process information effectively. Berson and Avolio (2004) elaborated
that designated leadership style for crisis should build trust in the leader, build self and collective efficacy, and
allow the leaders to make the right decision sometimes with very little information.
Fiedler and Chemers (1967) highlighted that within an organization, decision making style that is effective
in some situation may not be successful in other situations, thus there is no decision making style appropriate for
all situations. Further Vera and Crossan (2004) argue that there is no leadership style appropriate for all the
situation, and selecting the wrong leadership style could lead to ineffective leadership.
Decision Making:
Several researchers elaborated on the notion of decision making as an individual’s habits. Driver (1979)
defined decision making style as a customary pattern which a person employs in the process of decision making.
Harren (1979) mentioned that the individual’s style of decision making is an individual feature for conceiving and
responding to a task of decision making. Rowe and Mason (1987) supported that the term decision style to mean
the way how an individual employs information to make decisions. They elaborated that the decision style is yet a
cognitive process that relates an individual’s personality to his/her self-concept, values, and needs. Scott and
Bruce (1995) defined decision style as the learned habitual response pattern exhibited by an individual when
confronted with a decision situation. Simon (1997) defined decision making as the process of individual’s
selection of an option so as to achieve his/her goals.
Decision Making In Crisis:
Pearson (1998) highlighted that the decision maker faces abnormal challenges when his/her organization is in
crisis: (1) flow of information is sporadic and rapid; (2) many stakeholders get involved; (3) the time resource is
limited; (4) the crisis may be anticipated but may also be surprise; and (5) despite that timeliness is fundamental,
the quality of the decisions cannot be sacrificed for speed. Each contingency or challenge of these sophisticates
decision-making. Pearson and Clair (1998) advocated that the central elements which define crisis (high stakes,
urgency, and ambiguity) also seriously restrain the capability of individuals to evaluate information and
Corresponding Author: Zainal Ariffin Bin Ahmad, Graduate Business School, College of Graduate Studies, Tenaga
Nasional University (UNITEN), Jalan Ikram-Uniten, 43000 Kajang, Selangor, Malaysia.
E-mail, azainal@uniten.edu.my
Tel: +6-016-490-9461; fax: +6-038-928-7166.
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Australian Journal of Basic and Applied Sciences, 7(14) December 2013, Pages: 419-424
effectively take decisions. Burke and Miller(1990) suggested that in vague situations, decision-makers are
inclined to use intuition in combination with rational analysis. Also Khatri and Ng (2000) that both the rational
and intuitive processes are equally significant for an effective strategic decision making. Intuition enables us to
synthesize separate experiences and data bits into an integrated image. In crisis conditions, professionals
encounter crucial scenarios of decision making that require split second action. The pressures of making lifeimpacting, timely and informed decisions establishes an environment needing immediacy and common
information as those described by Argyris and Schön (1978) in action learning circumstances. Boin, Hart and
McConnell (2009) suggest that the decisions taken under crisis conditions encircle uncertainty. There is limited
time for consultation and reaching to agreement with advisors, colleagues, and the other people who can
normally be involved in decision-making processes. In this study, we use Billings, Milburn and Schaalman
(1980) conceptualization and definition of crisis as well as its major characteristics, that is, uncertainty of
response, pressure of time, the surprise element, resolution importance, and occurrence frequency.
Leadership style:
Kotter (1988) defined leadership as the process of directing and steering a group in one direction mostly
through non-coercive ways. Great leaders are even on high demand nowadays since societies and technologies
are becoming more and more advanced.
Leadership styles represent important aspects of leadership (Muhammad, Isa, Othman, and Rahim, 2009).
Defining the leadership style has overwhelmed the literature, much like the issue of defining leadership. The
leadership style can be defined as emphasis patterns indexed by the intensity or frequency of certain leadership
attitudes and the behaviors which the leaders associate with the various leadership functions (Andersen, 2008;
Casimir, 2001; Eagly & Johannesen-Schmidt, 2001) on the other hand, defined the style of leadership as
“relatively stable pattern of behavior exhibited by leaders.” However, Coleman (2005) defined leadership styles
with respect to influence, specifically, in the sense of who is the one exerting influence, for what it is exerted, and
what are its results. In addition Northouse (2004) and Lunenburg and Ornstein (1996) share in common similar
opinions in that they maintain that a leadership style is nearly equivalent to the way how leaders influences their
subordinates. However, Hollander (1978) thinks that leadership styles refer to the most typical characteristics
across circumstances.
Avolio and Bass, (1995) argue that Leadership style content transformational and transactional leadership
styles. Transactional leadership focused on exchanges rewards and promises of rewords for performance between
leader and followers’. It is responsive to the immediate self-interest of followers. Transactional leadership is
measured by three criteria: contingent reword leadership, management by exception (active), and management by
exception (passive). Otherwise Transformational leadership focused on goes beyond exchanging of reward for
desired performance by developing , intellectually, and inspiring followers to transcend their own self-interests
for a higher collective purpose .transformational leadership is measured by five criteria: idealized influence
(attributed), idealized influence (behavior), inspirational motivation ,intellectual stimulation, and individualized
consideration . (Hollander, 1978) believes that leadership style refers to the characteristics which are most typical
across situations.
In other respects, Yukl (1998) maintains that there exists no individual leadership style that fits to all
organizations, contexts, or situations. Rather than a single style, a leader may demonstrate various leadership
styles fitting different circumstances. Kahai, Sosik and Avolio (2003) supported that by changing their leadership
styles the leaders can affect their followers. Goleman (2000) believed that the leaders who can manifest more
than a single leadership style contribute more effectively to success of their organizations. Liu, Lepak, Takeuchi,
Sims and others (2003) underlined that different groups of employees are differently managed and that they may
hence need different styles of leadership. According to Oshagbemi and Ocholi (2005) leaders of organizations
exhibit and practice a broad variety of leadership styles in their organizations. McColl-Kennedy (2002) agreed on
that the leader’s leadership style is regarded to be especially important for achievement of the goals of the
organization and for stimulating performances of their subordinates in the organization. Dulewicz and Higgs
(2005) see that the relation between leader’s styles and the organization in which he/she works is important. On
the other hand, Jung and Avolio (1999) have found that style of leadership may correspond to varying effects on
the levels of performance and motivation of subordinates in the organization.
Leadership Style and Crisis:
The traits of leaders and their relations with their followers may be predictive of their individual actions in a
crisis. The leaders who demonstrate strong ties with their followers somehow perform differently than those
whose bonds with their followers are weak (Kouzes and Posner, 2007). The traits of leaders and their relations
with their followers may be predictive of their individual actions in a crisis. The leaders who demonstrate strong
ties with their followers somehow perform differently than those whose bonds with their followers are weak
(Kouzes and Posner, 2007). Kouzes and Posner (2007) demonstrated that in vague situations like a crisis, the
relationship-oriented leaders function well and possess loyal following due to that they are usually participative,
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Australian Journal of Basic and Applied Sciences, 7(14) December 2013, Pages: 419-424
open, and tend to provide their followers with motivation to resolve problems in innovative ways. Heath (1998)
maintained that the centralized authority allows for fast decision making and comprehensive grasp of the crisis
occurrence.
Sjöberg, Wallenius, and Larsson (2006) suggest that leadership in stressful, complex rescue operations can
be understood as a causal process consisting of three broad time-related categories. The pre-operation everyday
working conditions affect the leadership during rescue operations, which in turn affects the post-operation
everyday working conditions, etc. Everyday working conditions include training and exercises, previous mission
experiences, personal knowledge of co-actors, and organizational climate. The leadership during a complex
rescue operation is affected by the leader’s appraisal of the balance between what is at stake, human lives in
particular, and the manageability of the situation. Patterns of stress reactions among rescue commanders and their
leadership behavior and managerial routines, were identified. Three problem areas were noted: role shifts during
long-lasting operations, staff work, and practical routines. The post-operation conditions include the leader’s
evaluation of the outcome, organizational climate, and post-event stress reaction. Leonard and Howitt (2010)
develop further ideas about leadership under crisis condition, concentrating on the political leadership and
decision making functions that are trust to the center of concern during such crisis events.
Billings, Milburn and Schaalman (1980) conceptualized and defined crisis within its major characteristics,
that is, uncertainty of response, pressure of time, surprise element, resolution importance, and occurrence
frequency.
Theoretical Framework:
Whereas there were many studies that linked decision making to crisis, there are few studies that link
between crises to decision making (Hittle and Leonard, 2011; Edland and Svenson, 1993; Maule et al., 2000;
Rastegary and Landy, 1993). Pearson and Clair (1998) suggest the core elements that define a crisis are ambiguity
and urgency which severely constrain the ability of leaders to assess information and make decisions effectively.
In this study the researcher adopted Billings et al. (1980) definition and conceptualize crisis as the characteristics
of crisis, Based on Pillai and Meindl (1998), the researcher will use crisis as an independent variable and will link
the characteristics of crisis to decision making styles.
Vera and Crossan (2004) argue that there is no leadership style appropriate for all the situation, and selecting
the wrong leadership style could lead to ineffective leadership. Eberlin and Tatum (2008) and Tatum, Eberlin,
Kottraba, and Bradberry (2003) have proven the relationship between leadership style (transformational,
transactional) and decision-making style (comprehensive, restrictive). In this study, leadership styles will be
studied an a mediating variable as supported by Walumbwa, Wu, and Ojode (2004) Hur, van den Berg, and
Wilderom (2011) and Panagopoulos and Dimitriadis (2009).
Fig. 1: Proposed Theoretical Framework
Hypotheses Development:
Whereas many researchers have reviewed decision making to crisis (Schraagen and Ven, 2008; Sommer and
Pearson 2007; Sayegh et al., 2004; Rosenthal and Hart, 1991; Kassam, Koslov and Mendes, 2011; Dinur, 2011)
the researchers found only a few qualitative studies on crisis to decision making (Hittle and Leonard, 2011;
Edland and Svenson, 1993; Maule et al., 2000; Rastegary and Landy, 1993) therefore, this study focuses on the
relationship between crisis and decision making. It is posited that:
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Australian Journal of Basic and Applied Sciences, 7(14) December 2013, Pages: 419-424
H1: Characteristics of crisis has a significant relationship to decision making styles.
H1a: Time pressure has negative relationship to comprehensive decision making styles.
H1b: Time pressure has positive relationship to restrictive decision making styles.
H1c: Response uncertainty has negative relationship to comprehensive decision making styles.
H1d: Response uncertainty has positive relationship to restrictive decision making styles.
In this study, leadership style is a mediator between characteristics of crisis and decision making styles based
on previous studies by Walumbwa, Wu, and Ojode (2004), Hur, Berg and Wilderom (2011), Panagopoulos and
Dimitriadis (2009) and Ferres, Travaglione and Connell (1998). Therefore, it is posited that:
H2: Transformational leadership style mediates the relationship between characteristics of crisis and decision
making.
H2a: Transformational style mediates the relationship between time pressure and comprehensive decision
making styles.
H2b: Transformational style mediates the relationship between time pressure and restrictive decision making
styles.
H2c: Transformational style mediates the relationship between response uncertainty and comprehensive
decision making styles.
H2d: Transformational style mediates the relationship between response uncertainty and restrictive decision
making styles.
H3: Transactional leadership style mediate characteristic of crisis and decision making style
H3a: Transactional leadership style mediates the relationship between time pressure and comprehensive
decision making style.
H3b: Transactional leadership style mediates the relationship between time pressure and restrictive decision
making style.
H3c: Transactional leadership style mediates the relationship between response uncertainty and
comprehensive decision making style.
H3d: Transactional leadership style mediates the relationship between response uncertainty and restrictive
decision making style.
Conclusion:
This paper presents a proposed framework that can be used to help leaders and officers to identify the
appropriate leadership styles for dealing with crisis.
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