Hence, there is a negative impact on organizational commitment and organizational performance. On the other hand, an authoritarian leader leads to a more desirable organizational performance. Yet, the participative type is efficient when it is viewed as reflecting ethics, positivism and a stable democratic style is effective if the role is seen as maintaining good morale and a steady level of efforts.
A participative manager strives for teamwork and inclusion. The main purpose is to achieve loyalty and taking decisions fairly by including everyone. A co- worker that strives to perform well and has high expectancies acknowledges that there is one way to achieve them is by having stable employees. The participative leadership style leads to a high organizational performance continuously.
According to Scholl, , people that appreciate commitment reflect more loyalty to companies. Finally, the participative leadership style is more embraced and applied compared to authoritarian and laissez-faire leadership styles. Nowadays, it has resulted in development and growth. Laissez-faire leaders practice a little supervision but do not communicate directly with their employees. Chen, suggests that a manager should avoid practicing this leadership.
This way it will increase the degree of commitment of the company. Thereby, organizational commitment will influence organizational performance and mediate the relationship between leadership styles and organizational performance.
Figure 3 presents the conceptual framework of the research study. Organizational Commitment Leadership Organizational styles Performance Figure 3: Conceptual Framework This conceptual framework shows how the leadership style practiced at ACU independent variable influences the organizational performance at ACU dependent variable in a negative or a positive way. Further, it measures whether organizational commitment mediating variable can mediate this relationship between the leadership practiced style at ACU and organizational performance.
A survey was conducted using questionnaires and an interview to gain a deeper understanding of the topic. Afterwards presenting the results of the survey conducted and recommendations to implement a better approach to enhance the relationship between leadership styles and organizational performance were presented. The sample size for this research study consists of the 88 employees of the employees who work at ACU. This research uses the random sampling method as the research method so the sample can be an unbiased representation of a group.
The reason for choosing a random sampling method, is because each participant in the entire target population has an equal chance of being selected. Eighty-eight questionnaires were dispatched in total. The data collected for the investigation come from a combination of questionnaires to be filled in by the employees, combined with an interview with the HR manager.
Finally, 69 employees filled in the questionnaires. The first part measures the demographics, which includes age, gender, education and employment years in the organization.
The second part measures both the independent and dependent variables which includes the three dimensions, which are organizational commitments, organizational performance and leadership styles.
Nominal scale is seen as the easiest type of measurement scale in which the numbers or letters are allocated to object represent as labels for identification purpose. The categories are mutually exclusive of all possibilities. There is a total of four demographics in which some of the questions are formed in nominal scale and ordinal scale.
There are two questions which were designed by using nominal scale, these questions are 1 and 3, which are the gender and employment status of the employees. The nominal, ordinal scale was designed by psychologist Stevens, The ordinal scale is a measurement type for which the relative values of data are defined exclusively in terms of being lesser or greater as compared with other data on the ordinal scale.
These may arise from categorical rating scales, or from converting interval scale data to become ranked data. The ordinal scale questions were questions 2 and 4, which are age and working years of the employees. And the rest of the questionnaire from questions 5 through 52, which consisted of the organizational commitment, organizational performance and leadership styles questionnaires.
This questionnaire was used because it is reliable, as it has a score of 0. See Table 2 3. This questionnaire was used, as it is reliable because it has a score of 0.
The questionnaire consists of 18 statements is divided to three groups. This is a standardized questionnaire used from a project that was measured the person-organization-fit in a company. This research measures laissez-faire, democratic and authoritarian leadership styles. There were six statements for each leadership style. This questionnaire was used because the statistics that calculated the reliability show a score of 0.
The questions were formulated as simply as possible to be understandable and to prevent confusion when filling in the survey. Furthermore, the survey contained 52 questions, with each question involving one or more variables. The demographical part consisted of four questions regarding gender, age, employment status and employment labor years.
The organizational commitment questionnaire consisted of 15 questions, the organizational performance part consisted of 15 questions and the leadership styles part consisted of 18 questions. Nine questions were asked to the HR manager as an in-depth interview. The employees had a deadline to fill in the survey of one day. To fill in the survey, the duration could be approximately 20 minutes. Finally, the interview with HR manager lasted for 18 minutes. For each research sub- question the corresponding interview questions and survey questions are presented.
The questions for both, interviews and surveys were based on the sub questions of this research. Quantitative research typically incorporates numbers and statistics. It consists of methodologies that produce computable results. The measurable collected information can be used to determine averages, highs and lows, and the rankings of an item when compared numerically with another one. The Qualitative analysis is an exploratory research. It is applied to have a better perception of core motives, ideas, and causes.
It shows understandings into the issue and helps to develop ideas or hypotheses for a possible quantitative research that will follow. This research was fundamentally conducted through primary data and secondary data by sending out the questionnaires in hard copy to employees of ACU to fill in and conducting an interview with the HR manager of ACU.
The study used both the quantitative and qualitative research methods. Many investigators apply diverse procedures specifically designed for the aim of the research and the key deliverables that is needed. Qualitative and Quantitative methodologies should be used by all these requirements and procedures.
The qualitative method is also used in this research study because it makes it possible to answer to the questions of why, how and in what way.
Furthermore, this applies because an interview is conducted with the HR manager. This interview is necessary to go more in-depth within the research. Therefore, the qualitative approach is equally important as questionnaires because a researcher needs to collect the statistical or quantifiable data in order to get a better view of the of the main purpose for the research. Some questions that are negative statements were used to be reversed. The demographics gives a view of how the company structure looks like.
The answers to SQ 1 the leadership styles questionnaire categorizes the questions that are part of authoritarian, democratic and laissez-faire leadership styles. This becomes clearer to by looking at the highest mean. To answer SQ 2 , the overall organizational performance was calculated by reversing all the questions and thereby showing statistics of the mean, mode and the median. Then, the questions with the highest mean and the lowest mean were shown.
These results are shown with symmetric measures tables. To answer SQ 3 , the average of the overall organizational commitment needs to be known. Organizational commitment was calculated by reversing six statements and summing them up with the rest of the nine questions. This sum is presented in a statistics table showing the mean, mode and median. Afterwards, the questions will with the highest mean and the lowest mean are shown. At the end, a cross tabulation with correlations was made to see the influence of each leadership style on organizational commitment.
The results of the qualitative analysis were summarized. Afterwards the conclusions are drawn from these results.
If the research concluded that they are useable, it means that what was supposed to be measured has been measured accurately. Validity is important when a researcher chooses to conduct studies more thoroughly on people, small units or state of affairs.
Therefore, if a research does not have validity, it can be concluded that there was no accuracy in the results during the investigation. The HR manager was interviewed orally in her office.
The required results to conclude the research were found through the interview and the responses of the employees. The study included a hard copy questionnaire handed out to employees. The company as employees and 69 filled in the questionnaires; therefore, the study is concluded to be valid.
If a research states that it is reliable, that means that if it is repeated, it will show matching or related findings. This will reinforce the results and confirm that the population will accept the hypothesis or the intended research objectives.
Cronbach's Alpha is a sort of measure of reliability. See table 2 to view the statistical reliability of organizational commitment, organizational performance and leadership styles. The research ensures consistency because the results found were as expected because the organizational commitment questionnaire showed a reliability factor of 0. The organizational performance questionnaire shows a 0. These results are higher than 0. Furthermore, more than 50 percent of the employees of the company responded to the survey.
Thus, it is concluded that the research reliable. Moreover, So this concludes that the company has a big group of young professionals. Finally, of the 69 employees interviewed, The age range of are the ages of the new generation. Hiring younger people means having energetic and innovative employees, which leads to company growth.
See table 5 below. This is an indication of growth of the company by hiring new employees. This means new ideas, more young people and a new generation which leads to a high performance commitment. To have an impression of which leadership styles are more prominent in the organization, the variables were calculated based on the mean, mode and the median.
Furthermore, the analysis also presents the correlations between the three leadership styles and the age groups, most importantly the relationship of the most practiced leadership style and age groups. Finally, it shows which statement was the most favorable for all the employees. The statistics in table 6 show a mean of Furthermore, the average of the laissez-faire leadership style is The democratic leadership style has the highest mean.
See appendix 1, table 2. This statement has the lowest average of all the statements regarding the democratic leadership styles. The frequency analysis shows that See appendix 2, table 2.
Past research supports this result 4. Also, the frequency in which the statistics of with the highest and lowest mean are shown. In other words, the most frequent statements that were positively or negatively answered by the respondent with the highest and lowest average are shown. Moreover, it is important to know the influence of authoritarian and laissez-faire leadership behavior to know to make a comparison as to which leadership behavior is more prominent. This result explains the above average performance rate of the company, because the employees are rewarded for their performance.
The SQ 2 questions 20, 21, 24 and 25 all together have a mean of 1. These are the questions with the lowest average among all the fifteen questions. This is a total of See appendix 3, table 3. From the 69 employees See appendix, table 3. All these questions were statements were reversed and summed together. The scale is a 3 Point-Likert scale.
In order to indicate if there is a low or high organizational performance, the minimum lowest performance value is 15 and the maximum highest performance is Finally, a high performance rate is more than 31 to Table 7 shows the performance rates intervals and actual rates intervals from the results.
Moreover, the lowest value is Moreover, the frequency row indicates that the medium performance of the company is The medium-to-high- performance is Statistics Mean Table 9 also shows the influence of the authoritarian and laissez-faire leadership behavior on organizational performance.
The symmetric measures show that the value is 0. This means there is very little influence of the democratic leadership behavior on organizational performance. It can be concluded that there is no influence of the authoritarian leadership style on organizational performance. Furthermore, as shown in table 9, the symmetric measures analysis show that the influence of laissez-faire leadership has value is 0. The participative leadership style was concluded to be the most successful one according to Lewin However, Smith and Peterson discussed that the success of this leadership style is based the principles that are applied to execute management.
Practically, no personal or organizational change, growth and development are involved. Yet, the participative type is efficient when it is viewed as reflecting ethics and positivism, and a stable democratic style is effective if the role is seen as maintaining good morale and a steady level of effort. Cheng suggests that a manager should avoid practicing laissez-faire leadership style. To analyze this sub-question, the results present a frequency table which shows the statistics of the fifteen questions showing the average of each question.
In this part, the highest and the lowest mean are presented. Organizational Commitment was measured by reversing out of the fifteen questions, six negative questions and totaling the reversed ones up with the nine questions.
The steps on how the value of the organizational commitment is measured are explained as follows. See appendix 4, table 4. Therefore, The scale of the statements of the organizational commitment questions was a 7 Point-Likert scale. Thereby, in order to measure whether there is a high or low organizational commitment at ACU, the minimum lowest performance value is 15 and the maximum highest performance is See table 14 below to view the performance rates intervals indicated to determine the performance of the company and also the actual interval rates from the research.
The frequency row shows the total organizational commitment measurements and shows that the degree of a medium commitment is Therefore, the symmetric measures in table 16 show a value of 0.
That concludes that there is little influence of democratic leadership style on organizational commitment. The correlations of authoritarian leadership style and organizational commitment show symmetric measurements of a value of This means there is a negative relationship.
Finally, the symmetric measurements of the influence of laissez-faire leadership style on organizational commitment have a value of 0.
Compared to other research studies done in the past, according to researchers Rafferty and Griffin there is a positive association between democratic leadership and organizational commitment. Besides, Scholl states that individuals that value loyalty show greater commitment to the organization. On the other hand, when leaders practice authoritarian leadership styles, commitment, creativity and innovation. Cooperation, achievement and commitment are restrained, according to Hayers, Therefore, there is negative impact on employee commitment.
Most individuals are familiar with this kind of leadership because such leaders are prevalent even today. The authoritarian leadership style is generally not considered one of the best methods of leadership. In this case, a correlation consists of two dimensions which is by measuring the strength and direction. Strength: To know how strong or weak the relationship between two variables. The correlation is from 0 and 1.
A correlation of 0. Coefficient direction: Whenever presenting a graph of two variables that move in the same direction, it indicates a positive correlation. A positive correlation means that both variables move in the same direction - as one goes up, the other goes up, or vice versa.
This is called a positive correlation because when the equation is done to come up with the correlation coefficient, the result is going to be a positive number. In other words, if the variable x increases and the y increases, there is a positive relationship. A negative correlation means that the two variables move in the opposite direction from each other as one goes up, the other goes down.
The R value represents the simple correlation, which shows the relationship of the leadership style and organizational performance, which is 0.
The R2 value the "R Square" column indicates how much of the total variation is in the dependent variable organizational performance by the predictor variable democratic leadership style. The R2 is 0, To understand this better, the "Significance" column indicates the statistical significance of the regression model. When the significance sig is less than 0. The anova table shows a significance of 0. This means that organizational commitment does not mediate the relationship between the leadership style practiced which is democratic and organizational performance.
Trivia Spencer. This interview was based on what kind of leadership styles the HR manager is using and the methods used to motivate the employees and enhance organizational performance. The management of ACU is not using a specific method to motivate their employees at the moment.
The only time is when there are appraisal interviews where the managers decide if an employee can receive incentives based on their performance. The manager helps the employees to achieve targets by setting the targets at the beginning of the year, then every month the employees are supervised to see if they are performing their tasks to achieve their targets.
And by filling in the performance appraisal forms, the manager has a better view of which things the employees need to work on to enhance their performance. To accomplish goals, the employees are able to follow workshops or courses in order to develop their competencies.
The company grew a lot more than in a short period of time, because there was another CEO and the company and he had a more innovative vision. Also, the company received more exposure in a short time, which led to hiring more employees which led to more growth.
What the management tries to do is to structure all tasks as much as possible. However, they do not have an organizational structure in the sense of all the functions of each employee. The company does not use methods to obtain organizational commitment, perhaps once in a while when there are job satisfaction questionnaires for example done by other companies, ACU makes use of these to know the degree of job satisfaction and commitment of the employees. There are employees working at ACU, of whom 69 filled in the questionnaires followed by an oral interview with the HR Manager.
This research was conducted to investigate by what means the company towards success and reaches objectives, and the degree of commitment of the employees with the support of leadership styles. Different leadership styles were discussed. This result indeed relates to the mission ACU stands for be a cooperative financial institution that is the property of its members and provides services to its employees and that its associates take decisions democratically.
However, it seems like the company almost practices a combination of both authoritarian and democratic leadership style seeing that they have close average, the authoritarian leadership style has a mean of Furthermore, it is concluded that a majority of the employees, which are Finally, all the three leadership styles have a strong influence on the ages between This age group strongly agree with the most prominent statements of each leadership style practiced.
From the symmetric measures it can be concluded that there is little influence of the democratic leadership style on organizational performance seeing that the value is 0. The result is close to 0. Furthermore, it can also be concluded that authoritarian leadership style has no influence on organizational performance seeing that the result is 0. The value of the laissez-faire leadership style is 0. The overall commitment of the company is high, because the result shows a rate of Finally, to conclude the democratic and laissez-faire leadership style have both the same amount of influence on organizational commitment, which is a value of 0.
And, the authoritarian leadership style has no influence at all because it has a value of The values must be between 0 and 1. The reason for this is because the R-square is 0. From the interview it is concluded that the HR manager practices a combination of authoritarian leadership style and laissez-faire. Meaning, employees should just to their job and they are being appraised every two or three months. Decisions are not made democratically. There is little focus on building relationships between employees.
On the other side, the manager does not monitor the employees regularly, but they are being appraised only during the appraisal interviews mostly. So this explains a little back of a laid back leader. However, there is little impact of the practiced democratic leadership style which is the democratic way. During conducting this study, it is important to define if there are statistically relationships between leadership styles, organizational performance and organizational commitment.
Therefore, one can utilize these concepts for the future research particularly for managers working in the related field, mostly organizations that focus on assisting clients and reaching targets. Further research should also be done on topics such as job satisfaction and ethical climate, which is important to measure the moral atmosphere of the work environment and the level of ethics practiced within a company.
Finally, this research gives a view how to enhance the company outcome, increase organizational commitment and encouraging subordinates to achieve their objectives. For this reason, it is recommended for the company to hire a consultant in order to train the management to develop their competencies more in the democratic leadership style, since that is the leadership style that is mostly practiced even though it has little impact on the performance and commitment of the organization.
Leaders that practice a democratic leadership style do not practice authority only when setting target. Nonetheless, these leaders involve themselves into guiding their subordinates.
Giving the leaders a training will empower them to enhance their leadership skills and this in return will help them to empower their employees to even greater organizational performance and commitment and to keep it consistent. Fact is the company is growing due to more clients and therefore it is imperative that the performance, commitment and service remain the same.
How to keep this consistent, is by giving training to leaders and to the employees. This will ensure that the current employees can refresh their knowledge, and share their experience while the new employees gather, get to know the work ethics of ACU Curacao and personal growth.
Executive behaviour battery. Ibadan: Stirling-Horden Publishers. Angle, H. The Academy of Management Journal, Vol. Avolio, B. Effects of Leadership Style on Organizational Performance. Bass, J. The effect of leadership in achieving high performance workforce that exceeds organizational expectations. Becker, T. The multidimensional view of commitment and theory of reasoned action. Journal of Management 21 4 , — Bennis, W.
The Temporary Society. Oxford Journals: Social Forces, Chen, Z. Loyalty to supervisor vs. Retrieved from he. Academy of Management Review 32 2 , Greenleaf, R. This is because the people inside the organization become more similar and the values of the organization become more pronounced and clear-cut, hence the culture becomes distinct from those of similar organizations.
For example, Safaricom and Airtel. Components of organizational culture A clear purpose and mission statement: Represents one of the major elements of strong organizational culture.
A defined mission statement which is easily understood by everyone in the organization is a sign of a strong culture. Without a guiding mission statement, organizations will have to struggle to accomplish or find an identity of their own.
Open communication: If organizations implement an open-door communication policy, it will help the employees to avoid conflicts in the workplace. Implementing an open door policy can help foster communication between management and lower-level employees.
This type of policy is designed to help eliminate barriers between the various levels of management and help promote fairness. Therefore, a strong organizational culture should give emphasis on transparency of information, thus help in reducing rumors and gossips hence improving morale of the employees in an organization. Consistency: Culture is based on traditions. When you come up with great programs or events, make them regular events and do them consistently. One-time efforts to improve the culture will feel insincere.
This can take years, but it makes a profound difference that pays off when employees enjoy where they work and genuinely like their colleagues.
Commitment to Learning: Show the employees that you are committed to their professional growth. This can be done in small incremental steps. For instance, one can set up a book club. But it can become more formal over time by subscribing to online learning programs or developing management training courses or programs. Connect: Do not isolate yourself at the top. One should therefore connect with people at all levels of the organization.
This would mean that, you get out of your comfort zone. In other words, they are the rules or laws that govern a group's or a society's behaviours. They vary widely across cultural groups. Americans, for instance, maintain fairly direct eye contact when conversing with others.
Asians, on the other hand, may avert their eyes as a sign of politeness and respect. Sociologists speak of at least four types of norms: folkways, mores, taboos, and laws.
Mores: are norms of morality. Breaking mores, like attending church in the nude, will offend most people of a culture. Laws: are a formal body of rules enacted by the state and backed by the power of the state. Virtually all taboos, like child abuse, are enacted into law, although not all mores are. For example, wearing a bikini to church may be offensive, but it is not against the law. Members of a culture must conform to its norms for the culture to exist and function.
Hence, members must want to conform and obey rules. Social control may take the form of excommunication, fines, punishments, and even imprisonment. Values on the other hand are the commonly held standards of what is acceptable or unacceptable, important or unimportant, right or wrong, fair or just, etc.
It can also refer to behaviours that contribute to the unique social and psychological environment of an organization. Cultural values are a significant element of how a person or group of people conducts their businesses. People need to be aware that individuals from different cultures may have different ideas of what is and what is not ethical within the organization. Norms and values in organizational culture bring about different cultural backgrounds therein causing cultural differences in the organization, which turns out to be a good thing for these organizations as different ideas and viewpoints can bring about positive change.
Living in a global economy, training and awareness concerning the cultural values and taboos of others can only be a valuable resource when undertaking business on the global front. They help shape the way an organization conducts its business, treats its employees, customers, and the wider community.
Norms and values in organizational culture aid to bring employees together in harmony, aimed at one overall goal of the organization, hence are committed towards collective objectives as an organization as well as individual. Organizational values and norms reflect the mission and strategic goals of the organization.
Simmerly , p. Svetlik , p. He further adds that organizational values are intended to inspire employees with creative energy that will push organization forward towards desired goals. Cingula , pp. Culture in an organization is experienced between the employees. However, there are ways in which it is transmitted and maintained. These stories talk about the past of an organization, the present and the culture of an organization.
Employees transmit their culture through stories, amongst themselves. They tell the organization about what goals are important and how to achieve them, and also what people are important in an organization. For example, the company clientele. Examples of material symbols include the size of offices, their furnishings, and the use of employee lounges or on-site dining facilities.
These material symbols express to employees who is important, the degree desired by top management, and the kinds of behavior that are appropriate. Organizations often develop unique terms to describe common business matters.
New employees are frequently overwhelmed with acronyms and jargon that, after six months on the job, have become fully part of their language. Boundless, 18 Nov.
Retrieved 21 Feb. Organizational culture and strategy implementation: In Organization Information, vol.
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