UFHRD Conference 2015
The Power of Productive Organisational Energy
Zeyad Abualhamael, Linda Alker1, Rosane Pagano2 and Ben Lupton3.
Department of Management, Business School- Manchester Metropolitan University, All
Saints Campus, Oxford Road, Manchester M15 6BH. 1,3Department of Management,
Business School, Manchester Metropolitan University, All Saints Campus, Oxford Road,
Manchester M15 6BH. 2Department of Marketing, Operations and Digital Business,
Business School, Manchester Metropolitan University, All Saints Campus, Oxford Road,
Manchester M15 6BH.
z.abualhamael@mmu.ac.uk, l.alker@mmu.ac.uk, r.pagano@mmu.ac.uk,
b.lupton@mmu.ac.uk
Paper type Working paper
The Power of Productive Organizational Energy
Abstract
Purpose – This paper reports the research design of a study in examining the relationship
between Leadership style, Productive Organisational Energy and Employee Performance.
in the context of Saudi Arabia.
Design/methodology/approach – The present research is completely based on the
quantitative approach towards research .A theoretical framework will be assessed in an
empirical study in Saudi Arabia, to examine the impact of Leadership style on Employee
Performance and the mediating role played by the productive organisational energy as
observed in the relation between leadership style and employee performance. The data
for the research would be collected from the employees of two educational institutions in
Saudi Arabia with the help of a questionnaire.
Findings – This paper takes a conceptual approach as it presents the initial stage of the
author’s study, by providing the main aim and presenting the theoretical framework.
Practical implications – The research focuses on the subject of modern leadership
styles, and Productive organisational energy, and shows their relevance to the Saudi
educational system and business environment. The study offers significance for practical
purposes, as it can benefit organizations in identifying their need of specific leadership
style order to boost their employees’ energy. Organizations can understand the
significance of Productive organizational energy, which will lead to higher performance
of employee’s in different corporations.
Originality/value – The relationship between leadership style, Productive energy and
Employee performance is explored theoretically and will be tested empirically in a Saudi
Arabian context.
Keywords Leadership Style, Employee Performance, Productive Organisational Energy,
Saudi Arabia
Paper type Working paper
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The Power of Productive Organizational Energy
Introduction
Due to the increase in globalization and competition in organizations it has
become extremely important for companies to focus on the enhancement of its
employees’ performance and outcomes.
Large numbers of management studies are
focusing on the evolution of leadership theories and approaches to insure that the peopleoriented behaviours and attitudes are managed effectively within the organisation. Not
just that but also, researchers focused on examining the impact of leadership styles on
employees’ knowledge sharing and commitment (Yammarino et al. 1993; Xenikou and
Simosi, 2006; Lin, 2013). Today, the awareness of the researchers that the emotions,
behaviors and thoughts of subordinates play a major role in shaping the actions of
employees in the workplace and has resulted in increased scrutiny of the effects that
positive psychological states can have in the workplace (Bruch & Ghoshal, 2003; Bruch
& Vogel, 2011; Cameron Dutton and Quinn, 2003, Cole, Bruch & Vogel, 2012; Luthans
& Avolio, 2009). The concept of energy becomes a valuable tool to gain a deeper
understanding of how organizations can reach their full potential. There is some evidence
to indicate that organizational energy can yield various benefits for individuals and
organizations. The incorporation of the construct of productive organisational energy that
include emotional, cognitive and even behavioural potentials of the employees and hence
helps in providing a more comprehensive review of the behaviour of the employees.
Looking at the organization and organizational behavior from this perspective, the author
aims at examining whether the leadership style is the art of orchestrating energy in
organizations.
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In 1932, Saudi Arabia started their educational program that consists of 700
students and 12 small schools. The future of the educational system changed significantly
after the discovery of the oil in 1938. By 1954, the Ministry of Education was established
with reaching over 42,000 students in 365 different schools and since then the number
has been increasing and developing. Despite the fact that the budget of the ministry of
education increased dramatically, the education management system and especially the
public higher education sector is struggling to overcome many issues. The main obstacle
in public universities is bureaucracy with no clear venue for changes towards employees’
development. Due to the lack of motivation systems and discrimination of incentives and
salaries the quality of teaching declined. The need for motivation and satisfaction is
noticeable and therefor boosting employees’ energy in such organizations by
implementing the right leadership style would benefit the whole system and increase the
employee’s performance.
As per the knowledge of the author, there exists no study in the literature that
focuses on the examination of the impact of leadership style and productive
organisational energy on employee performance and hence the present research can add a
new dimension and new findings that can be of practical relevance to the organisations as
well as managers. While it is extremely important to understand the meaning of the
constructs being used for evaluation, the originality of the research lies in the fact that it
tries to not only link both these constructs but also tries to understand the cause and
effect.
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Research Aim and Theoretical Framework
The primary aim of the study is to examine the impact of top management
leadership style i.e. Transformational and Transactional as perceived by subordinated on
their performance. The study also helps in demonstrating the mediating role played by the
productive organisational energy as observed in the relation between leadership style and
employee performance as explained in the figure below.
Figure 1: Research Conceptual Framework
Independent
Dependent
Employe
e
perform
ance
c`
Leadersh
ip style
a`
Producti
ve
Organisa
tional
energy
b`
Mediator
Literature Review
Productive Organisational Energy
Productive energy refers to an energetic situation within an organization or a team
that leads to higher productivity among the employees. However, it is important to
analyze the productivity in terms of energy because it demonstrates the enthusiasm and
willingness of the employees to be productive and exhibit better results and outcomes.
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Bruch and Ghoshal (2004) defined organizational energy as a collective approach of the
organization, wherein the emotional, cognitive as well as behavioral potentials are
mobilized in order to achieve the goals and objectives. The authors suggest that
organizational energy becomes productive energy only when the quality and intensity of
energy both are very high. Only when these conditions are satisfied do the employees are
found to exhibit high levels of productive energy. Bruch and Vogel (2011) states that
when an organization exhibits productive energy, the positive emotions within the
organization are very intense and other characteristics like high alertness and the more
effective sharing of goals and knowledge are also observed.
Bruch and Ghoshal (2003) have explained the concept of productive
organisational energy and stated that the concept is extremely important for
understanding the tools and methods that help organizations in reaching their maximum
potential and hence is one of the most important aspects and point of focus of the studies
that are focused on the study of organizational behaviour and performance. Cole et al.
(2005) have explained the meaning of the term and states that the productive
organizational energy acts as the fuel that is responsible for the running of a business.
According to Cuff and Barkhuizen (2013), organisational energy not only has a positive
impact on the overall performance of the organisation, but is also crucial from the point
of view of individuals because it contributes to the overall development of an individual’s
motivation, health and wellbeing and even creativity and performance. Cross, Baker and
Parker (2003) discussed the application and importance of such energy in different fields
and have proven that the service industry, including the professional services industries is
among the sectors that are majorly impacted by its existence. According to Bruch and
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Ghoshal (2004), the productive organizational energy combines emotional, cognitive and
behavioral aspects of the employees and suggests that all these three aspects work
together for higher performance of the employees.
The research presented by Kunze and Bunch (2010) clearly established a
correlation between the transformational style of leadership and productive organisational
energy. The results demonstrated the existence of a positive and linear correlation
between the two factors. Not only did the study establish a relation between productive
organisational energy and leadership style, but also proved that the transformational style
of leadership acts as a mediator in the productive organisational energy and age-based
faultlines relationship (Kunze and Bunch, 2010). The association of productive
organizational energy with the performance of employees has been also established by
multiple academicians like Martin et al. 2012; Bruch and Vogel (2011); Bunse et al.
2011. Bruch and Vogel (2011) have established that high levels of productive
organizational energy generally tend to lead to positive emotions among the employees,
thus affecting their performance in a positive manner. Additionally, there are studies
(Martin et al. 2012; Bunse et al. 2011) that have established the relationship between
productive organisational energy and employee performance and it has been shown that
productive organisational energy leads to an enhancement in the overall performance of
employees and has been thus chosen as a mediating variable in the present research.
While there are studies that have focused on measurement of productive
organisational energy and leadership styles, there are not many research papers that prove
the same and hence that is the reason why these constructs are being studied and
evaluated in the present paper. However, there is one huge challenge in the study of the
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concept productive organisational energy and that is the lack of enough literature. Since
the concept of productive organisational energy was introduced late, not many studies
have provided adequate literature and findings on the same. Hence, the researcher here
aims at evaluating the concept and validating the same for the Saudi Arabian context.
Leadership style
Leadership has been one of the most commonly studied and researched subjects in
different disciplines. Many researchers claimed that leadership theorists have defined
leadership in various aspects of human endeavor such as academics, social works, politics
and business (Obiwuru, Okwu, Akpa & Nwankwere, 2011; Paracha et al., 2012).
The concept has evolved and developed over a period of time with its implications
defined in the psychological, philosophical and managerial perspectives.
Bass (1985) was among the first researchers who identified transformational and
transactional as the two main styles of leadership. Transactional leadership on one hand is
related to the lower level developments and leads to the establishment of better
relationships and better conversations between the leaders and the subordinates, while
transformational leadership on the other hand is required to fulfil the higher level needs
by transforming the thoughts and beliefs of the subordinates. A large number of
academicians (Sarros and Santora, 2001; Dai et al. 2013; Popper and Zakkai 1994) have
focused on the evaluation of the existence and impacts of these styles of leadership in
different scenarios. As shown by Paracha et al. (2012), both the styles of leadership, i.e.
transformational and transactional lead to a positive impact on the performance of
employees by enhancing their job satisfaction. Similar findings have been obtained by
Sarros and Santara (2001), who proved that a company needs to adopt the four factors of
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transformational leadership and two factors of transactional leadership for the
establishment of effective leadership.
Gupta et al. (2010) carried out a complete longitudinal study to assess the
correlation between leadership and employee performance. The study proved that not
only does the leadership of a team affect its performance but also the opposite impact of
team’s performance on its leadership is also valid. Hon and Chan (2012) surveyed
managers and employees in China that empowering leadership in a team has numerous
positive direct, as well as indirect effects. The authors proved that leadership directly
enhances the efficacy and performance of employees in the team and indirectly promotes
creativity. Further, academicians like Yammarino et al. 1993; Stogdill, 1975; Stone et al.
2004 have proven that leadership has a significant impact on the employees, as well as
the overall performance of the organizations. The differences in the existence and
implementation of transformational leadership in private and public organizations can be
identified on the basis of different studies that are present in the literature. Researchers
like Alanzi, Drummond and Bryman (1992) have proven that the private organizations
usually demonstrate transformational style, as compared to the public organizations. Even
though there are no empirical findings that have established the presence of
transformational leadership in private or public organizations, it can be predicted that
since the leadership style is correlated to productive organizational energy and the energy
levels are high in private organizations, even transformational leadership level would be
high.
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The Context of Saudi Arabia
Saudi Arabia is a Middle Eastern country, which is located in Southwest Asia and
is near the borders of the Red Sea and the Persian Gulf (Al-Rasheed, 2010). The Arabian
Peninsula is majorly occupied by the country. However, the exact size of the country
cannot be determined accurately because a large portion of its boundaries remains
undefined. The approximate size of the country is estimated to be around 2, 149, 690
square kilometers (Al-Rasheed, 2010).
People in Saudi Arabia follow Islam and are usually extremely religious and
family oriented in nature. There are also multiple restrictions on the social and cultural
conduct of people. According to Al-Rasheed (2010), what is commendable about the
country that the country has witnessed significant developments despite the traditional
culture and traditions that it follows. The country has witnessed major transformations
and developments in its education and work culture (Al-Rasheed, 2010). The country
currently houses a large number of universities, schools and colleges, wherein education
is open to all and the government provides free books, education and even health services
to the students. There are also special schools that have been developed for girls and the
government is trying to further develop the overall education system (Albrithen and
Briskman, 2014). Even the work culture in the country has been significantly growing
and improving because of the entry of large multinational corporations (MNCs). The
number of expatriates has been increasing in multiple fields such as IT, oil industry,
banking and financial services and construction (Albrithen and Briskman, 2014).
Hence, since the globalization of the country is significantly expanding, leading to
the growth and enhancement in the work culture, it is important to evaluate the way
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different leadership types can contribute to higher growth and development of these
companies, not just that but to examine whether Productive organization energy can stand
as a mediator on the relationship between Leadership style and employee performance in
the public universities in Saudi Arabia.
Research Methodology
Sample/Participants
The study has chosen public education institutions in Saudi Arabia for research
because the country has been identified as the fourth largest country on the basis of
movement of students around the world with around 105,000 students. As the literature
review has identified, the country has large number of expatriates and is focusing a lot on
the development of its education system. Hence, the study would help in identifying the
way leadership styles can affect the performance of employees in these organisations for
further development. Even the access and convenience of collecting data would be
simpler in these institutions, as academics would be more helpful than the practitioners in
the research.
The HR managers in the presented educational institutions i.e. Universities were
contacted and were given an overview of the purpose of conducting the research and
survey. The sample was chosen only after getting an approval and access to contact the
people working at different levels of these organizations. Two altered educational
organizations have been chosen for the research because these institutions are among the
biggest institutions in the country and hence would allow examining the leadership styles
and behaviors on the basis of the responses of people with different backgrounds,
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attitudes, culture and even different personal interests (Drummond and Al-Anazi, 1997;
Abdul-Wahab, 1979).
King Abduallah University of Science and Technology (KAUST) has been
chosen for research because it is one of the new and modern universities and institutes in
the country and hence demonstrates new management and leadership style, which is
relevant for the present research. While King Abduallah University of Science and
Technology is one of the modern universities, taking a conventional university like King
Abdulaziz University (KAAU) would also be helpful for getting a comprehensive
overview. KAAU is one of the oldest universities and also has more than 21 faculties,
which would assist in carrying out the research easily. The results hence can be
generalized for the entire population of public universities in an easier manner. Hence,
the use of the chosen sample can be of extreme significance because it will help in
contributing to the literature by facilitating organizational studies in the context of Saudi
Arabia, a country that has not been researched well.
Data Collection
The data for the research would be gathered via questionnaire instrument.
Questionnaires are commonly used for the purpose of data collection because they help in
collecting data for a large number of people and provide results that can be easily
quantified and analysed further (Rhodes et al. 2003). The study makes use of selfcompletion questionnaire is being used in the research because it would help in gathering
data despite of the existing geographical restrictions and constraints and would help in
maintaining the anonymity of the respondents.
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The first step in identifying a truly representative sample is to draw a sampling
frame, which includes identification of people who are eligible for the research, which
then needs to be followed by the process of obtaining valid responses from the chosen
sample frame. The present study makes use of stratified sample type. Stratified random
sampling is the most commonly used form of random sampling, wherein a few
characteristics are used as references for dividing the entire population into smaller
groups in order to reduce the overall sample error. The present research aims at obtaining
a minimum of thirty respondents from the middle, as well as lower levels in the
organisation (Roscoe, 1975; Emory, 1980). The author would be examining single
respondents, which would mainly consist of employees. The low and mid-level
employees consisting primarily of lecturers and academicians would be surveyed. The
top management is not being included in the research because the top management claims
to implement and adopt specific types of leadership style, which may not be of interest
for the research and thus their responses can probably lead to bias in the overall findings.
The expected response rate is around 30%, which means that approximately 30
respondents would be taken from each faculty in both institutions.
Measurement tools
The questionnaire that has been developed for the study includes different
measures for measuring different constructs. Four different measures, i.e. Multiple
Leadership Questionnaire (MLQ) is one of the most commonly used instruments that was
proposed by Bass and Avolio (1989) for identifying and measuring the leadership styles
as perceived from the employees. The scale has been found to provide satisfactory
psychometric properties, the reliability coefficients of which range from 0.77 to 0.95. The
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questionnaire is developed in the form of Likert-type questionnaire, which divided into
three main parts, exhibiting the three main dimensions of transformational, transactional
and laissez-faire styles of leadership, which have been further divided into multiple subdivisions and parts. The questionnaire and scales used in the same have already been
verified and used in the context of Saudi Arabia (Alanzi, Drummond and Bryman, 1992).
Productive organisational energy is measured with the help of a fourteen-scale
item, which helps in measuring three important sub-dimensions of productive
organisational energy, namely emotional, cognitive and behavioural. The scale that was
developed by Cole et al. (2005) and has also been used by Walter and Bruch (in press)
has been tested for validity in several studies and has been found to produce properties
that are valid and acceptable. Not just that but also the measurement equivalence of the
scale across multiple cultures and languages has been tested by Cole et al. (2005) across
five different national cultures. However, one challenge that remains is that the measure
has not been validated in the context of Saudi Arabia, but is being used because of its
validation in the South African context, the culture of which remains similar to that of
Saudi Arabia. Hence, the researcher aims at also validating the use of the measure of
POE in Saudi Arabia after modifying it according to the needs of the research and after
the completion of the pilot study. The scale being used here for measuring productive
organisational energy is similar to the scale used by Cole et al. (2005). The scale consists
of a Likert-type response scale based on five points, ranging from point 1 that represents
strongly disagree to 5 that represents strongly agree for measuring cognitive and
behavioural items, but makes use of a 5-point frequency scale for measuring emotional
items, wherein the scale ranges from 1(never) to 5(frequently, if not always). It is
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important for the research to carry out a confirmatory factor analysis for the scale in order
to identify the second-order three-dimensional structure as has already been done in the
previous research. The results obtained earlier demonstrate a good fit of the model to the
collected data (χ2 = 157.469; df = 74; confirmatory fit index = .968; Tucker–Lewis index
= .955; root mean square error of approximation = .041). The overall productive
organisational energy score has been calculated based on the average of all the responses
gathered from the data (Cole et al., 2005; Walter & Bruch, in press).
Further, the intrinsic job motivation of the employees is to be measured with the
help of the instrument presented by Warr, Cook and Wall (1979). Employee motivation
refers to the degree of a person’s willingness to work in his/her organisational role for
achieving personal satisfaction because of the job role, which is different from the
extrinsic satisfaction that the employees derive because of factors like extra pay or
enhanced working conditions. War, Cook and Wall (1979) presented the Intrinsic Job
Motivation Scale, which has been found to demonstrate excellent psychometric
properties and hence been chosen for measuring job motivation in the present study. In
addition to job motivation, the study also measures satisfaction with supervision, which
has been measured with the help of a subscale of the Index Organisational reaction
presented by Smith (1962, 1972). Both these questionnaires have been used in multiple
studies carried out in different contexts. They have also been used in the context of Saudi
Arabia and have been proven to be completely reliable and valid and hence are suitable
for the present research as well. The final questionnaire that would be developed and
used for the survey and data collection purposes would be formed after amalgamating
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four different questionnaires in order to make sure that all the constructs are measured in
the given Saudi Arabian perspective.
Data Analysis
The data that will be collected would be in the form of numbers, which would
present rating to measure each of the constructs. The data needs to hence be further
analysed on the basis of different tools and techniques to reach to adequate conclusion.
Since the research is a based on a cross-sectional study, the variables need to be measured
separately yet simultaneously and hence multiple measures would be used for measuring
the constructs so that personal bias of any form can be avoided that is likely to be
produced due to the random error of measurement.
The foremost tool being that suit the study is structural equation model (SEM). It
has been identified as the most appropriate tool for establishing relationships between
lateral constructs that are usually measured by using different measures (Bollen, 2005)
and hence would be suitable for the research.
The first choice for analysis is mediation analysis or statistics. As defined by
Baron and Kenny (1986), mediation model can be used for evaluating the impact of one
variable onto another while the relationship is mediated by a third factor. The model
consists of multiple steps that make use of multiple linear regressions for establishing the
relationships.
The second choice for analysis is the combined usage of correlation and
regression analysis. While correlation analysis helps in establishing the magnitude and
sign of relationships observed between different variables, regression analysis in SPSS or
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excel helps in carrying out and evaluating relationships between different variables at
different levels (Cohen et al. 2013).
Another option that can be used for analysis is the combined usage of Path
(Model) analysis via LISREL. The model is generally used for establishing direct
dependencies among the variables. As discussed by Cohen et al. (2013), the model is
much more efficient and even faster than regression analysis. In order to analyse the data
for the present research, three multiple linear regressions would be carried out in SPSS
and hence the use of path model would be faster. Thus, SEM can be used for establishing
relations between these latent constructs given via multiple measures. Since the present
research is based on hypothesis testing, SEM is an appropriate model or tool for analysis.
It is also suitable for examining data obtained from large samples of more than 200
respondents. Further discussions and analysis of the SEM tool is given below.
Structural equation models (SEMs) are commonly used tools for correlation
analyses, as they help in determining and identifying the reciprocal correlations between
multiple variables (Bollen, 2005). Also known as the simultaneous equation models, they
use multivariate regression, they are used for variables that can have impacts on one
another either directly or via the mediation or intermediary variable. These models have
been found to be of utmost significance in social sciences studies because not only do
they help in non-problematic interpretations of data but also help in translating the
theories into different forms of analyses (Bollen, 2005). Mediation model is a common
form of structural equation model that is used for identifying the impacts of a mediating
variable on the relationship existing between a casual and an outcome variable.
Mediation has been commonly used in psychological researchers because of its ability to
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explain different underlying processes (Bollen, 2005). The meditational process is
commonly used by researchers to clarify and explain the relation existing between the
given two variables. Several authors have made use of cross-sectional data and different
methods to test for mediation (Howell et al. 1986; Avolio et al. 2004; Bauman et al.
2002) and hence the same approach is also being adopted in the present research.
Contribution to Knowledge
The research would contribute towards theory, as well as practice of different
leadership styles, especially in the context of Saudi Arabia. The research would
significantly contribute to the literature by providing an assessment of the relationship
that exists between the leadership styles and employee performance in Saudi Arabia. As
there are no studies that evaluate such relationships in Saudi Arabia, the research would
be significant for the literature. Additionally, it would also help in evaluating the
mediating impacts of productive organisational energy, a topic that has not been in focus
and organisational studies lacks. The practical contribution of the research remains in its
ability to guide the managers and leaders in the Saudi Arabian companies to enhance the
overall performance of the employees by adopting the appropriate leadership style and
boosting their energy.
The research can be of great significance in shifting the focus of the overall
methods of teaching from the faculty centres to student centres, which would be
beneficial for enhancing the levels of student engagement in the overall learning process.
Also, since Saudi Arabia is aiming at enhancing its overall education process and
outcomes, such shift in pedagogy via the present research can prove to be extremely
beneficial for the same. In addition, the study can also assist in enhancing the outcomes
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and performances of the educational institution systems, especially in Saudi Arabia by
making the educational institutions identify a suitable leadership style that can lead to
enhancement in the overall energy and performance of the teachers.
The findings of the study can thus further contribute towards the development of a
framework that can be used as an underlying mechanism for the growth and development
of the educational or any other organisations. The incorporation of a theoretical
framework in the research could have led to stronger and better results because it would
have allowed the researcher to go beyond the studies that have already been conducted
and to present new perspectives and insights into the way the constructs being measured
in the study are related to one another in the context of whole of Saudi Arabia. This
would further contribute towards the entire society because higher and better
performance of the educational and other organisations would contribute towards social
development. Hence, the study can be of great importance for Saudi Arabia from the
social and organisational perspectives.
Limitation
One of the biggest limitations of the study could be the sample size hence it can
impose some restriction on the generalization of results and findings for the entire
population. As the sample of the study cosseted of only two public universities with
limited number of employees i.e. teachers and academies and the result might not
represent the overall education sector of Saudi Arabia. The misinterpretation of questions
or research purpose can also impose an additional limitation in the study because that can
lead to wrong findings. There might be some personal bias with employees regarding
their perceived leadership, which might affect the credibility of the data.
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In addition, the lack of employee’s knowledge in understanding the main research
concepts i.e. Productive Organizational Energy and Leadership Style could affect the
results. Since the research will be conducted in Saudi Arabia is an obligation for the
participants to understand briefly the aim of the research, before filling the
questionnaires. However, these limitations can be kept in mind and eliminated in further
studies to make sure that there are no biases in the results and findings.
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