J. Basic. Appl. Sci. Res., 3(5)705-709, 2013 © 2013, TextRoad Publication ISSN 2090-4304 Journal of Basic and Applied Scientific Research www.textroad.com Relationship of Managers’ Leadership Style (Transactional Leadership) and Workplace Conflict Mohammad Taheri Rouzbahani1, Nader Tahmasebi2, Saleh Beiranvand3, FatemehRezai4 1 Ph.D. Faculty Member of Islamic Azad University, Borujerd Branch, Iran, 2,3 M.A. Students of Islamic Azad University, Borujerd Branch 4 M.A. Students of Islamic Azad University, Malayer Branch ABSTRACT The study aims at investigating the relationship between managers’ leadership style (transactional one) and workplace conflicts in Welfare Organization of Lorestan province. This study is of applied descriptive type with regard to its purpose and method and applies Pearson correlation coefficient to analyze data. Since some variables’ current status such as transformational and transactional leadership styles and workers’ conflicts are measured, quality of their relationship will be investigated. Studied population is total of 360 workers of Welfare Organization in Lorestan province. To calculate sample volume of desired population, we find that according to Tuckman or Morgan table for total population of 360 people, a sample of 187 workers is required to achieve logical analytical results. Applied questionnaire which consists of 41 questions in the research has been utilized in the article “impact of leadership on conflicts” written by Oliver Doucet in 2009 and suggested by scholars and professors to be administrated in the study. Then, Cronbach’s Alpha coefficient of 0.94 has been estimated for 30 participants indicating high levels of questionnaire reliability. In the paper for statistical analysis, statistical method of Cronbach’s Alpha and Pearson correlation coefficient tests have been utilized to examine the validity and existence of relationship between variables. Obtained results indicate that transactional leadership style has no significant relationship with workplace conflicts. Among its dimensions, however, contingent rewards have a significant reverse relationship with conflict dimensions which are directly related to management by passive exception. KEYWORDS: Leadership, Transactional Leadership Style, Conflict, Cognitive Conflict, Relational Conflict INTRODUCTION Leadership is a subject in which scholars and individuals have been interested from long time ago. Perhaps, its wide popularity is due to the fact that leadership is a mysterious process which exists in all individuals’ life (Yukl, 2003, p. 2). Recent developments of leadership theories have been moved from Charismatic leadership ones in which a leader is supposed to be a unique individual upon whom followers depend towards Neo-charismatic theories which intend to develop the followers’ abilities. Accordingly, one of newest personal approaches has been created to study the leadership based on Bass leadership model (1985) and implemented by Bass and Avolio (1995). Transactional leadership is defined as a combination of transactions and bargains between leaders and followers while transformational one is a leadership beyond motivating workers to achieve optimal performance. In fact, it leads to the followers’ maturity, intellectual stimulation and inspiration to enhance their personal interests instead of high collective goals (Kark, 2009, p. 160). Conflict reduction and control by the means of organized plans are two problematic subjects resulting in the decrease of workers’ efficiency and increase in health and medical costs (Dvir, 2006, p. 202). On the other hand, there is a strong statistical relationship between health costs and economic growth (Rivera&Currais, 1999, p. 762). Therefore, optimal leadership of health and medical systems and reduction of existing conflict expenses can contribute to improve current economic situation to a large extent (Tayler, 2002, p. 18). Conflict is considered as an inherent natural component of work environment. Statistics indicate that when conflicts occur at workplace, ethics’ levels are considerably decreased, number of absent workers increases and as a result, organizational productivity and performance will be reduced. It has been estimated that managers spend at least 25% of their time to solve the problems and conflicts in the workplace. Therefore, effective conflict encounter is a fundamental challenge in the individual interactions in the workplace. Some research results have currently shown that workplace conflicts have negative effects on workers’ performance and job satisfaction from the viewpoint of both cognitive and relational dimensions (Doucet et al., 2009, p. 342). Corresponding Author: Mohammad Taheri, PhD. Faculty Member of Islamic Azad University, Borujerd Branch, Iran. Email: taheri_mohammad2012@yahoo.com. Phone: +989122053722 705 Rouzbahani et al., 2013 RESEARCH BACKGROUND Haghighi has defined leadership as a process influencing individual or group practices in order to achieve goals in a given situation (Haghighi, 2004, p. 123). A leader either a CEO or operating worker or even a stranger outside the organization is the one who can successfully affect the others (Rezaeean, 2001, p. 424). According to Burns (1978), transactional leadership is on the basis of two-way exchange between leader and followers so that personal demands are provided. In other words, he believes that in this doctrine, everything is observed from the perspective of the degree to which people derive benefits and the relationship of leader and followers is on the transaction basis of giving this for receiving that. Actually, transactional leadership follows the exchange of economy, costs and benefits to meet common material and physical needs of workers and in return, expects subordinates to provide a collection of services on which they have reached an agreement (Bass, 1985, p. 14). In 1985, Bass has argued reward and punishment as two basic dimensions of transactional leadership. He believes that first element is the contingent reward comprising rewards for performance compensation and second one is management by exception involving collective measures of leader in response to unacceptable deviation in subordinates’ performance (Moghely, 2002, p. 79). Contingent reward: refers to the rewards which are paid with regard to an agreement between leader and followers based on performance standards (ibid, p. 80). Management by exception: shows the leader reaction to encounter mistakes and deviations and involves the practices to correct the deviations from standards. This management has two types including active and passive. Management by active exception: indicates the active management which leadership utilizes to control mistakes and law violations and then, perform corrective practices. Management by passive exception: presents the passive management which leader applies when standards are not satisfied or some problems are made in the workplace (Northouse, 2001, p. 141). In other words, they passively wait for followers to make mistakes and after that, remind them negative feedback or rebuke them before doing corrective measures (Bass &Steidlmeier, 1999, p. 184). Conflict: refers to conflicts of organizational behaviors between individuals or organization unit due to various goals and interest conflict (Zahedi, Alvani&Faghihi, 2004, p. 79). It has been recognized as physical and verbal encounters, poor coordination and inefficient communications (Ghasemi, 2003, p. 9). Cognitive conflict: is combined of work-related conflicts, interest incompatibility or job-related views on how to do activities. Consequently, this conflict dimension includes conflicts of work perspectives and worker differences about what should be performed (Doucet et al., 2009, p. 342). Relational conflict: refers to those arguments which cause emotional incompatibilities, intervention and obstructionism behaviors in the workplace. Incompatibilities of workers and their fault finding are, therefore, placed in this dimension. Afterwards, conflict is resulted from individual difficulties stimulating strong feelings such as anger, lack of trust, hatred, fear and disgust. This conflict category undermines the individuals’ energy and prevents them regarding important work priorities (Doucet et al., 2009, p. 342). KhodaYari (2006) wrote his master’s thesis on the relationship between transactional and transformational leadership styles and organizational commitment of workers in industrial city of Zanjan and concluded that there is significant relationship between above-mentioned styles and workers’ commitment and the leaders who apply transactional leadership have been more successful in increasing the extent to which a worker has a commitment to the organization. When managers’ leadership style has been moved from transactional to transformational one, workers have had higher levels of loyalty to the organization. Oliver Doucet (2009) studied the effects of leadership on workplace conflicts in a hospital in Canada and concluded that a significant relationship is found between all components of transactional and transformational leadership styles and cognitive and relational conflicts but non-communicational leadership style or non-intervention has no impact on conflict. NikoMoghadam (2007) has investigated the relationship of workers’ personality traits and organizational conflicts in public organizations of Kerman and found that a positive significant relationship exists between workers’ personality traits, power demand and organizational conflicts. Among personality traits, self-esteem and workers’ situation compatibility have a negative relationship with organizational conflicts. RESEARCH METHODOLOGY The study is an applied descriptive research with regard to purpose and method. T analyze the data, Pearson correlation coefficient has been applied. Since current situations of such variables as transactional and transformational leadership styles and workers’ conflicts are measured, their relationships are to be considered. 706 J. Basic. Appl. Sci. Res., 3(5)705-709, 2013 Studied population is totally 360 workers of Welfare Organization in Lorestan province. According to Tuckman or Morgan table, 186 individuals were selected out of 360 workers to present the desired sample volume and logical analytical results. Questionnaire administrated in the research consists of 41 questions which have been utilized by Doucet (2009) in the article “effects of leadership on conflicts”. Scholars and professors have suggested us to apply the mentioned questionnaire after being translated. Cronbach’s Alpha coefficient of whole questions was calculated as 0.94 for 30 participants indicating high reliability of questionnaire. In the paper, inferential and descriptive statistics were used for doing analysis. Descriptive one includes mean, standard deviation, frequency table and related graphs. Inferential one involves validity tests’ Cronbach’s Alpha and Pearson correlation coefficients to show the relationships of variables. H1-Main hypothesis: There is a relationship between managers’ leadership style (transactional one) and workplace conflicts (cognitive and relational ones). Table 1: Results of Pearson correlation test for transactional leadership and cognitive and relational conflicts Statistical test Transactional leadership\ cognitive conflict Pearson correlation coefficient (r ) -0.079NS Significance level (sig) P=0.288 Number (n) 185 *significant at 0.05 level **significant at 0.01 level NS not significant Transactional leadership\ relational conflict -0.111NS P=0.131 185 As data have shown already, since Pearson correlation coefficients (r 1=-0.079, r2=-0.111) computed at α=0.05 are not significant (p>0.05), transactional leadership has no significant relationship with cognitive and relational conflicts. H2: There is a relationship between contingent rewards and cognitive conflict. Table2: Results of Pearson correlation test for contingent rewards and cognitive conflict Statistical test Pearson correlation coefficient (r ) Significance level (sig) Number of respondents (n) *significant at 0.05 level **significant at 0.01 level NS not significant contingent rewards \ cognitive conflict -0.414** P<0.001 185 Based on above table, Pearson correlation coefficients (r= -0.414, N= 185, P= 0.001) computed at α=0.01 are significant (P<0.001) and as a result, a negative significant relationship exists between contingent rewards and cognitive conflict. In other words, as coefficients of contingent rewards increase, cognitive conflict’s ones are decreased. Therefore, the hypothesis is confirmed. H3: A relationship is found between contingent rewards and relational conflict. Table 3: Results of Pearson correlation test for contingent rewards and relational conflict Statistical test Pearson correlation coefficient (r ) Significance level (sig) Number of respondents (n) *significant at 0.05 level **significant at 0.01 level NS not significant Contingent rewards\ relational conflict -0.492** P<0.001 185 Since Pearson correlation coefficients (r= -0.492, N= 185, P<0.001) computed at α=0.01 are significant (P<0.001), a significant relationship is seen between contingent rewards and relational conflict. As contingent rewards’ coefficients increase, relational conflict’s ones are decreased so that the hypothesis is confirmed. H4: A relationship exists between management by active exception and cognitive conflict. Table 4: Results of Pearson correlation test for management by active exception and cognitive conflict Statistical test Pearson correlation coefficient (r ) Significance level (sig) Number of respondents (n) *significant at 0.05 level **significant at 0.01 level NS not significant 707 management by active exception \ cognitive conflict 0.124NS P=0.091 185 Rouzbahani et al., 2013 According to results presented in table4, Pearson correlation coefficients (r= +0.142, N= 185, P=0.091) computed at α=0.05 are not significant and consequently, there is no significant relationship between management by active exception and cognitive conflict which rejects the hypothesis. H5: A relationship is observed between management by active exception and relational conflict. Table 5: Results of Pearson correlation test for management by active exception and relational conflict Statistical test Pearson correlation coefficient (r ) Significance level (sig) Number of respondents (n) *significant at 0.05 level **significant at 0.01 level NS not significant management by active exception \ relational conflict 0.144NS P=0.051 185 Because Pearson correlation coefficients (r=+0.144, N= 185, P=0.051) computed at α=0.05 are not significant, no significant relationship exists between management by active exception and relational conflict which rejects the hypothesis. H6: A relationship exists between management by passive exception and cognitive conflict. Table6: Results of Pearson correlation test for management by passive exception and cognitive conflict Statistical test Pearson correlation coefficient (r) Significance level (sig) Number of respondents (n) *significant at 0.05 level **significant at 0.01 level NS not significant management by passive exception \ cognitive conflict 0.368** P<0.001 185 Table6 indicates that Pearson correlation coefficients (r=+0.368, N= 185, P<0.001) computed at α=0.01 are significant and there is a direct significant relationship between management by passive exception and cognitive conflict. In other words, increasing the coefficients of management by passive exception leads to the increase in cognitive conflict ones. Therefore, above hypothesis is confirmed. H7:There is a relationship between management by passive exception and relational conflict. Table7: Results of Pearson correlation test for management by passive exception and relational conflict Statistical test Pearson correlation coefficient (r ) Significance level (sig) Number of respondents (n) *significant at 0.05 level **significant at 0.01 level NS not significant management by passive exception \ relational conflict 0.411** P<0.001 185 Based on results demonstrated in table7, Pearson correlation coefficients (r=+0.411, N= 185, P<0.001) computed at α=0.01 are significant and a positive significant relationship is found between management by passive exception and relational conflict confirming the hypothesis. As a result, the increase of management by passive exception coefficients results in the increase of conflict ones. CONCLUSION In order to examine the hypothesis which shows a relationship between contingent rewards and cognitive conflict, calculated correlation coefficient of -0.411 indicates that considering 99% possibility, there is a significant reverse relationship between these two variables. Accordingly, it can be concluded that as contingent reward levels are higher as one of transactional leadership dimensions, cognitive conflict is lower among workers. Correlation coefficient of relationship between contingent rewards and relational conflict calculated as -0.492 shows that with regard to 99% possibility, a significant relationship is found between them. Consequently, we can state that if contingent reward levels are higher, relational conflict will be lower. Investigating the relationship between management by active exception and cognitive conflict presents the correlation coefficient of +0.124 indicating the lack of significant relationship between these variables. We conclude that changes in management by active exception have no considerable effects on cognitive conflict. 708 J. Basic. Appl. Sci. Res., 3(5)705-709, 2013 To study the relationship between management by active exception and relational conflict, correlation coefficient of +0.144 has been obtained to demonstrate that no significant relationship exists between them. Changing the management by active exception does not considerably affect relational conflict among workers. Afterwards, it can be concluded that this management style referring to leaders’ supervision on followers cannot contribute to prevent the emergence of conflict and incompatibility in the workplace resulting in their strained interactions. It has been supposed that there is a relationship between management by passive exception and cognitive conflict and correlation coefficient of +0.368 has been calculated which represents a direct significant relationship between these variables with99% possibility. On this basis, we come into the conclusion that enhancing the levels of management by passive exception increases cognitive conflict. Correlation coefficient of +0.411 indicates a positive significant relationship between management by passive exception and relational conflict with 99% possibility. As a result, it can be stated that as management by passive exception level is higher among leaders considered as one of transactional leadership dimensions, relational conflict is more in the organization. REFERENCES [1]. Bass, B.M. &Avolio, B.J., (1995),“Effects on Plato Readiness of Transformational/Plato Transactional Leadership”, Final Report [2]. Bass, B.M. &Steidlmeier, P., (1999),“Ethic, Characteristic and Authentic Transformational Leadership Behavior”, Leadership Quarterly, Vol. 10, No. 2, pp. 181-217 [3]. Bass, B.M. (1985),“Leadership and Performance Beyond Expectations”, Free Press, New York [4]. 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