LEADERSHIP STYLES IN SMALL BUSINESS
Doctoral Study Project (DSP)
Presented to the the Glenn R. Jones College of Business
of Trident at American InterContinental University
in Partial Fulfillment of the Requirements for the Degree of
Doctor of Business Administration
by
MICHAEL PATRICK
Houston, Texas
2021
(Defended mm dd, year)
Approved by:
Office of Academic Affairs
Mm dd, year
Dean: Lisa Mohanty, Ph.D.
Director: Indira Guzman, Ph.D.
Committee Chair: name of chair
Committee Member: name the member1
Committee Member: name of the member2
© 20xx your full name
[NOTE: no indent on the first paragraph of the abstract]
ABSTRACT
DOCTORAL STUDY PROJECT TITLE
Trident at American InterContinental University [year]
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ii
PREFACE
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ACKNOWLEDGMENTS
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TABLE OF CONTENTS
ABSTRACT ................................................................................................................................... ii
PREFACE ..................................................................................................................................... iii
ACKNOWLEDGMENTS ........................................................................................................... iv
TABLE OF CONTENTS ............................................................................................................ iv
LIST OF TABLES ...................................................................................................................... vii
LIST OF FIGURES ................................................................................................................... viii
CHAPTER I: INTRODUCTION .................................................................................................1
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CHAPTER II: LITERATURE REVIEW .................................................................................15
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Theme/Topic [repeat as needed] .........................................Error! Bookmark not defined.
Method and Design Literature ...........................................Error! Bookmark not defined.
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CHAPTER III: METHODOLOGY ...........................................................................................46
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CHAPTER IV: DATA COLLECTION AND DATA ANALYSIS .........................................72
Descriptive Data .............................................................................................................. 72
Results .............................................................................................................................. 72
Evaluation of Findings.................................................................................................... 75
Summary.......................................................................................................................... 75
CHAPTER V: APPLICATION TO PRACTICE AND DISCUSSION ..................................76
Implications ..................................................................................................................... 76
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Recommendations ........................................................................................................... 76
Conclusions ...................................................................................................................... 76
EXECUTIVE SUMMARY REPORT ........................................................................................77
Introduction to the Business Problem ........................................................................... 77
The Study ......................................................................................................................... 77
The Findings .................................................................................................................... 77
Analysis of the Findings.................................................................................................. 78
Key Implications for Business........................................................................................ 78
Recommendations for Practitioners .............................................................................. 78
REFERENCES................................................................................. Error! Bookmark not defined.
APPENDIX A: LOI AND SITE AUTHORIZATIONS ...........................................................86
APPENDIX B: INFORMED CONSENT FORM(S) ................................................................87
APPENDIX C: INSTRUMENTS AND PROTOCOLS............................................................88
APPENDIX D: OTHER REQUIRED DOCUMENTS .............................................................89
APPENDIX E: General Guidelines to Remember about Formatting ....................................90
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LIST OF TABLES
Table 1. Caption for Table 1 ..........................................................................................................45
Table 2. Caption for Table 2 .......................................................... Error! Bookmark not defined.
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LIST OF FIGURES
Figure 1. Caption for Figure 1. ......................................................................................................74
Figure 2. Caption for Figure 2. ...................................................... Error! Bookmark not defined.
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CHAPTER I: INTRODUCTION
Research Problem
Leadership style in an organization is one of the components that assume a huge part in
improving or impeding the interest and responsibility of the individuals in the organization.
Subsequently, Glantz (2002) underscores the requirement for a chief to discover his leadership
style. Among the objectives of any little venture are benefit making and attainment of maturity
and liquidity status. Leadership styles are a manner and approach of providing directions,
motivating people, and implementing plans. It comprises of the total pattern of implicit and
explicit functions performed by the leaders. Leadership styles are essential to be determined in
small businesses because it defines the way the success achieved by the business.
However, there were a lot of publications aimed at defining the topic but unfortunately,
there is a shortage of literature specifically discussing leadership with a narrowed focus on small
enterprises such as iMiTs Art Company. According to Sergiovanni and Starratt (1983), “there is
no specific style that fits all when talking about leadership but the level of effectiveness of a
chosen style of leadership will highly depend upon its applicability to the current situation a
company is facing”. Assuming the significance of leadership is to influence operations of a
company, and then leadership can be defined as a path of mobilizing the taskforce for a common
objective set forth by the organization.
Leadership is multidimensional in ability and direction. Successful leaders need to
understand individuals and organizations, undertakings and processes, self as well as other
people. They should take care of current realities while imagining future prospects, and need
certainty and systems for working capability across a wide scope of assorted issues – from
cultivating the organizational lucidity that comes from sound designs and strategies to releasing
1
energy and imagination through strong dreams, from making learning organizations where
laborers develop and create as ordinary leaders to dealing with the contention inescapable in a
universe of suffering contrasts (Gallos, 2008).
Leadership styles are a manner and approach of providing directions, motivating people,
and implementing plans. It comprises of the total pattern of implicit and explicit functions
performed by the leaders. Leadership styles are essential to be determined in small businesses
because it defines the way the success achieved by the business. Small business establishments
such as iMiTs Art Company averagely command a certain portion of the United States economy.
The United States economy has been growing over the past decades thus creating room for small
businesses with proper leadership styles to flourish. As Zaccaro, S. J. & Horn, Z. N. (2003)
stated, "even though leadership theories came into existence and they still do influence the
current business environment, they have failed to be developed into a number of effective
practices".
A problem or opportunity of interest
A lot of rumors have been spread concerning how certain leadership styles have
influenced the success of small businesses across the globe. According to (Barling, Weber, &
Kelloway, 1996), "there is a direct relationship between leadership, organizational culture, and
performance of an organization”. However, (Bennett, 1997) stated that “even though there are
claims of a direct relationship between leadership and performance, there is very little research
conducted in this field to support the fact.”
The problem being investigated by this study is to ascertain which particular leadership
style is the most ideal style in the management of a small enterprise like iMiTs Art Company.
The key outcome is to search and develop skeletal literature published on leadership styles on
2
small enterprises and its overall effect on the success of small enterprises whether or these styles
influenced the business of the Small enterprise. There are quite a few theories that have been
published and many more are being developed to explain the concept of leadership and its
applicable styles to organizations.
However, all these theories are limited in scope since they highly elaborate on the effect
of leadership on business in general without a specific focus on small businesses. Such theories
should have been the basis that was to guide contemporary small business establishments on how
to adopt a particular style of leadership to adapt a business to the problems it faces in the
contemporary business environment.
A direct connection to the field of study
Since I have planned to start a doctorate degree in the management field and I was also
working in an organization that involves leadership at various levels makes it directly associated
with the topic of study. Leadership is required for every department and at various levels to
provide direction to the employees so that the goals and objectives can be accomplished.
Leadership has immediate circumstances and logical results relationship upon
organizations and their prosperity. Pioneers decide values, culture, change resilience, and
representative inspiration. They shape institutional systems including their execution and
viability. Pioneers can show up at any level of a foundation and are not selective to management.
Fruitful pioneers do, notwithstanding, make them thing in like manner. They impact everyone
around them to receive the greatest reward from the organization's assets, including its generally
essential and costly: its kin. Libraries require leadership simply like a business, government, and
non-profit organization. Regardless of whether a public, extraordinary or scholarly library, that
library's chiefs straightforwardly influence everything from benefactor experience to effectively
3
executing expressed missions, including asset distribution, administrations offered and
assortment improvement systems. Indeed, the impact of pioneers and their viability in moving
individuals to a common vision can straightforwardly shape the library's kin, its materials, how
benefactors utilize or cooperate with them, and whether that experience is useful. With
leadership possibly assuming a particularly indispensable part in the achievement of data focuses
and benefactor encounters, it is helpful to think about the various sorts of pioneers and their
likely effect on libraries as organizations.
Current leadership theories portray pioneers dependent on qualities or how impact and
force are utilized to accomplish destinations. When utilizing quality-based portrayals, pioneers
might be delegated imperious, majority rule, administrative or alluring. On the off chance that
reviews leadership from the point of view of the trading of force and its use to get results,
pioneers are situational, value-based, or groundbreaking. Understanding these various sayings
can give jargon to the conversation that can prompt significant, wanted outcomes. It bears
noticing that not all pioneers are made equivalent, and leadership quality may shift colossally
across businesses or just inside an organization. What's more, recognizing an individual chief's
style is key to assessing leadership quality and viability particularly as it identifies with
organizational objectives.
A direct connection to the concentration
Leadership is required in every face and every department of the organization because
without its existence the working is next to impossible. The senior management of the company
is responsible for framing policies and objectives which need to be implemented by middle-level
people and lower-level people. The middle-level people direct the energy of the followers in the
4
right path so that there is no need for any rectification at a later stage. Even if there is any chance
of mistake from the followers then the leaders are always there to rectify them.
Two main types of leadership styles are servant leadership and transformational
leadership. When there are multiple options available, it is important to assess one best out of the
available ones. The study is based on 155 participants of the profit-oriented service sector of
Pakistan. The data is gathered on 5 points Likert scale. The statistical tool used is SPSS and
AMOS. The results prove that transformational leadership has a significant impact on
organizational learning as compared to servant leadership. The managers and leaders should
focus on maximizing profitability and polishing their abilities for accomplishing maximum
profits (Choudhary, Akhtar & Zaheer, 2013).
The main aim of any organization is to sustain competitive advantage and considered to
be effective between the demands of various stakeholders and the needs of the employees. Based
on the previous studies in related field, it has been demonstrated that an appropriate leadership
style can influence the success and the economic growth of both the organizations and
employees. Transformational leadership has been of significant importance in the literature for
potential performance in the organization. Research proved that transformational leadership style
significant importance in the improvement of work climate and knowledge (Orabi, 2018).
Key Literature
Leadership is one of the key determinants associated with the success and failure of any
organization. Leadership style is the manner in which people are directed and motivated by a
leader to achieve organizational goals. This study examines the impact of leadership styles on the
organizational performance. The focus was on six major leadership styles -transformational,
transactional, autocratic, charismatic, bureaucratic and democratic. This study has provided deep
5
insights about the leadership styles; the democratic, transformational, bureaucratic and autocratic
leaderships have a positive impact on the organizational performance, however, the charismatic
and transactional leaderships have negative impact on the organizational performance, as it does
not provide opportunities and freedom to employees. In this study, both primary and secondary
research has been conducted (Khajeh, 2018). The primary research has been done using the
quantitative approach, with the help of survey instrument, based on a survey questionnaire. The
secondary research has been done through the review of previously established literature for
achieving the research objectives. The findings suggested that charismatic, bureaucratic and
transactional leadership styles have negative relationship with organizational performance.
Transformational, autocratic, and democratic leadership styles, on the other hand, had a positive
relationship with the organizational performance. It has been recommended that organizations
use the leadership style that enhances the capabilities and abilities of the people.
The success of the organization depends on the leadership style followed by the leaders
and managers. The most widely preferred leadership styles are transformational leadership and
transactional leadership. It is essential to assess if there is a significant association between the
applicability of different leadership styles and the performance of the business organization. The
managers should focus on identifying the leadership styles based on different occasions because
one type is not suitable for everyone working in the organization (Yusuf, Muhammed, &
Kazeem, 2014).
Seminal Literature
Leadership is used in various aspects of human endeavor like a business, academics,
social works, politics, etc. the extent of leadership traits exhibited by the leader no not only
depend on the personal abilities and characteristics, but also on the environment and situation.
6
The research is based on small and medium scale enterprises in Nigeria from where the data is
collected from 70 employees. The statistical tool used for analysis is chi-square statistics. The
results suggested that transactional leadership is better than transformational leadership style for
small and medium scale enterprises (Saasongu, 2015).
Transformational leadership was additionally found by De Jong and Bruch (2013) to have
a direct sway on the organizational environment. De Jong and Bruch contend that through
transformational leadership the environment of the organization can be reinforced establishing a
climate where workers are roused and empowered. This encourages the accomplishment of
organizational goals and subsequently expanded performance (De Jong and Bruch, 2013).
Giroux and McLarney (2014) give an expanded assessment of the effect of transformational
leadership on the environment taking note that this result has foundational suggestions for
workers, customers, and investors. Spurred representatives working in a strong environment give
more compelling customer administration, reinforcing organizational performance and
prompting monetary profits for investors (Giroux and McLarney, 2014).
Fenwick and Gayle (2008), in their investigation of the missing connections in
understanding the relationship between leadership and organizational performance, infer that
regardless of a speculated leadership-performance relationship proposed by certain specialists,
current discoveries are uncertain and hard to decipher. Past investigations prompted the
assumption that leadership ideal models will effectively affect customer satisfaction, staff
satisfaction, and monetary performance. All in all, notwithstanding, the impacts of leadership on
organizational performance have not been very much contemplated, as indicated by House and
Aditya's audit (1997), who criticized leadership reads for zeroing in exorbitantly on better
subordinate relationships than the prohibition of a few different capacities that pioneers perform,
7
and to the avoidance of organizational and ecological factors that are essential to intercede the
leadership performance relationship.
Recent Literature
Transformational leadership has been of significant importance in the literature for
potential performance in the organization. Research proved that transformational leadership style
significant importance in the improvement of work climate and knowledge. The four essential
components of transformational leadership are idealized influence, individual consideration,
intellectual stimulation, and inspirational motivation. The research results have proved that
transformational leadership has a significant impact on organizational performance. Leaders
should target three components: individual consideration, intellectual stimulation, and
inspirational motivation. The strengths of the article are a description of key components of
transformational leadership along with characteristics, the description of the theoretical
framework, Association of organizational performance with all the four components, testing and
proposition of 5 hypothesis, utilization of statistical analysis to conclude, and proper description
of the demographic factors of the respondents. The only weakness with this article is that it
doesn't properly highlight the theoretical framework (Orabi, 2018).
Madanchian, Hussein, Noordin, & Taherdoost, (2016) stated that the objective of any of
the organizations is to retain in the market for the long run. When the objective is to sustain itself
in a highly competitive market, then the organization should focus on increasing performance.
An appropriate leadership style helps to improve the success level and economic growth of the
organization as well as employees. The objective of the paper is to determine the impact of
leadership styles on organizational performance. The strengths of the article are it clearly
describes some of the essential concepts like transformational leadership, organizational
8
performance, and leadership and organizational performance. The weakness is it doesn't involve
any technical analysis using statistical tools and techniques.
Organizations prefer to have managers and leaders who can handle the performance
efficiently and effectively. The effective managerial style will provide empowerment and
enhance productivity. It also increases morale and motivation leading to a positive impact on the
organization. However, the leadership helps in increasing profitability and productivity but the
level of success depends on the leadership style and the environment provided to the staff
members. The strengths of the article are statistical analysis using analysis of variance, fishers
least significant difference, and multiple regression model. The only disadvantage with the
article is that it does not highlight detailed information about the key concepts like autocratic
leadership, democratic leadership, etc (Ukaidi, 2016).
Assumptions and Biases
There are few biases related to the leadership styles used at the organization. Affinity bias
identifies with the inclination we as a whole need to support individuals who help us to
remember ourselves. At the point when applied to normal work environment cycles, for example,
employing and advancing, at its best, this predisposition sees fruitful individuals willing to give
somebody a possibility in view of their similitudes. We've all heard or perused the expression,
"You help me to remember myself at that age," and see how that family relationship can bring
about favorability. However, in the most widely recognized events of fondness predisposition,
sadly, segment minorities end up distraught. Without importance to, a pioneer who is Caucasian
and male will be bound to recruit individuals who help him to remember himself.
Confirmation bias is our human propensity to search out or notice data that underpins our
current convictions. It very well may be an issue for pioneers, who should be available to
9
criticism, arrangements, and methods of doing things that they might not have supported before.
In the event that you've just decided that a specific way ahead is the right one, affirmation
inclination will make them esteeming the proof that bolsters your arrangement more so than data
that doesn't. You could ignore valuable input, excuse imaginative thoughts and arrangements,
and at last settle on some unacceptable choice for your kin and the organization.
Similar to affinity and confirmation bias, conservatism bias sees us favor commonality.
For this situation, it's preferring existing data over new data that takes steps to change our
assumptions. At the point when we do get new data, we will in general gauge it less vigorously
or excuse it, while data that bolsters a past conviction is given more weight. While it appears to
be absurd to us now than it was once accepted the earth was level, persuading individuals in any
case was a lethargic and hard-won fight.
Fundamental attribution error alludes to our inclination to accept that what individuals do
reflects what their identity is. This predisposition sees us overemphasizing individual qualities
and overlooking situational factors when making a decision about others' behavior. As pioneers,
the inclination to accept that somebody's behavior is a piece of them and unchangeable is
incredibly restricting. It keeps us from having the option to take a gander at their outside
circumstance and make changes to improve things.
Research Questions
Part I: Research questions from actual dissertations
RQ1: Does leadership styles contribute effectively in determining the organizational
performance (Khajeh, 2018)
RQ2: Is there any relationship between transformational leadership and organizational
performance? (Khan, Hafeez, Hasnain, Rizvi, & Mariam, 2012)
10
RQ3: Is there any relationship between transactional leadership and organizational
performance? (Khan, Hafeez, Hasnain, Rizvi, & Mariam, 2012)
RQ4: Does leadership characteristics have a positive relationship to workgroup climate in
a non-profit religious-based/church-based organization? (McMurray, Islam, Sarros, & PirolaMerlo, 2012)
RQ5: Is there any relationship between leadership style and workgroup performance is
mediated by workgroup climate in a non-profit religious-based/church-based organization?
(McMurray, Islam, Sarros, & Pirola-Merlo, 2012)
RQ6: Does workgroup climate has a positive relationship to workgroup performance in a
non-profit religious-based/church-based organization? (McMurray, Islam, Sarros, & PirolaMerlo, 2012)
RQ7: Does mid-level managers who report to servant leaders will exhibit above-average
levels of servant-leader characteristics themselves? (Melchar & Bosco, 2010)
RQ8: Is there any differences in the observations of servant-leader characteristics
according to worker age, years of experience, or level of education? (Melchar & Bosco, 2010)
RQ9: Is there any mediating effect between employee competency in the relationship
between transformational leadership style and organization performance? (Atan & Mahmood,
2019)
RQ10: Is there any relationship between employee competency and organization
performance? (Atan & Mahmood, 2019)
Part II: Research question for my research
The research question is: Do small organizations exhibit one specific leadership style or a
random combination of styles? The key outcome is to search and develop skeletal literature
11
published on leadership styles on small enterprises and its overall effect on the success of small
enterprises whether or these styles influenced the business of the Small enterprise. The research
paper shall focus on investigating 5 research questions. The first will dwell on leadership styles
employed by directors of iMiTs Art Company. The second and third questions shall focus on the
applicability of these leadership styles to both internal and external decision making in iMiTs Art
Company. The fourth and fifth questions shall dwell on the chosen population sample. The
research questions utilized in this study include:
1. What type of leadership style is being used by the majority of the members of the iMiTs
Art Company in managing the internal organization affairs?
2. What type of leadership style is being used by the majority of the members of the iMiTs
Art Company in managing the external affairs of the organization?
3. What population factors reflect internal leadership styles in a small enterprise like iMiTs
Art Company?
4. What population factors reflect external leadership styles in a small enterprise like iMiTs
Art Company?
5. What leadership style is considered to be the most ideal Leadership style for Small
business such an iMiTs Art Company?
Methods Exploration
The scientific continuum of the research is based on trait theory and behavioral theory.
Trait Theory of leadership means that specific natural qualities that result in the formation of a
good leader. Having certain qualities does not mean having strong leadership skills. Behavioral
theory focuses on the environment of the person instead of natural abilities. One of the factors of
12
behavioral theory is conditioning. The theories will support my research because it defines the
traits as well as behavior to be perceived by the leader to influence the performance of the
subordinates. A person will have specific natural qualities or obtain the abilities as a result of
conditioning (Swapna & Yaseen, 2016).
The most suitable method for my research is the mixed methods. The mixed method is a
combination of quantitative research and qualitative research. Quantitative research is all about
numerical facts and figures, and qualitative research is about non-numerical expressions. The
quantitative research used in the study is related to the number of times issues have been faced
by the employees because of leadership styles. The qualitative research will study different types
of leadership styles used within the organization, how they are helpful in different situations, and
which is the most desirable leadership style that helps to increase organizational performance.
Summary
The introduction has covered the problem to be studied, relevance to my field of study,
and direct connection to the concentration. The study has also targeted the literature which has
included the contextual literature, seminal literature, and recent literature. However, there were
some gaps prevailing within the literature when it comes to the recent publications of the books.
The research question is: Do small organizations exhibit one specific leadership style or a
random combination of styles?
Conducting the research necessitates an understanding of the appropriate method for the
research tradition. This will include the methods to be used for the study. The next quarter of my
study will cover the development of literature, Research Design, and methods. For this, I will
target to study the recent literature in detail, which has already been considered in my list of
references.
13
14
CHAPTER II: LITERATURE REVIEW
Individual and group are members of an organization to accomplish certain individual
objectives, the degree to which they are dynamic members relies upon how they are persuaded
that their membership will empower them accomplish their foreordained objectives. Along these
lines, an individual will uphold an organization on the off chance that he accepts that through it
his own objectives and goals could be met; if not, the individual's advantage will decrease.
Leadership style in an organization is one of the components that assume a huge part in
improving or impeding the interest and responsibility of the individuals in the organization.
Subsequently, Glantz (2002) underscores the requirement for a chief to discover his leadership
style. Among the objectives of any little venture are benefit making and attainment of maturity
and liquidity status.
Leadership is multidimensional in ability and direction. Successful leaders need to
understand individuals and organizations, undertakings and processes, self as well as other
people. They should take care of current realities while imagining future prospects, and need
certainty and systems for working capability across a wide scope of assorted issues – from
cultivating the organizational lucidity that comes from sound designs and strategies to releasing
energy and imagination through strong dreams, from making learning organizations where
laborers develop and create as ordinary leaders to dealing with the contention inescapable in a
universe of suffering contrasts (Gallos, 2008).
Leadership styles are a manner and approach of providing directions, motivating people,
and implementing plans. It comprises of the total pattern of implicit and explicit functions
performed by the leaders. Leadership styles are essential to be determined in small businesses
15
because it defines the way the success achieved by the business. Small business establishments
such as iMiTs Art Company averagely command a certain portion of the United States economy.
The United States economy has been growing over the past decades thus creating room for small
businesses with proper leadership styles to flourish. As Zaccaro, S. J. & Horn, Z. N. (2003)
stated, "even though leadership theories came into existence and they still do influence the
current business environment, they have failed to be developed into a number of effective
practices".
The significance of leadership styles in small organizations has gained prevalence in the
contemporary business environment creating a paradigm shift in the way businesses run their
operations regardless of the size or industry thus fostering economic development and growth of
new markets. Following an appropriate leadership style is essential for the organization because
it can result in improved performance of the organization as a whole. On the contrary, if the
leadership style followed is not appropriate or suitable then it can have a negative impact on the
working (Perry & Zuber-Skerritt, 1992).
There are numerous success factors of the business, like organizational culture,
leadership style followed, skills and abilities of the employees, innovative capability of the
products and services, etc. Out of all these factors, leadership style plays a significant role.
Leadership as a concept has been researched partially by a lot of researchers but the topic has not
been fully explored. Nevertheless, a number of scholars’ have come up with concepts and
theories whose purpose was to define leadership and the; general effect it may have on the
success or failure of a business (Bennis & Nanus, 1985).
As a matter of fact “researchers” have developed a number of good publications on the
leadership-its definition, how to understand it, its applications, and its applicability in the
16
contemporary business environment where the developer never put any substantial material to
reference from in evidence" (Çoğaltay, 2015). A lot of literature has been published by scholars'
in an effort to expound on the topic of leadership, leadership styles, and its applicability to not
only small enterprises but also education. This was highly influenced by the existence of robust
literature from as back as 21 century where most scholars’ key focus was on business
effectiveness, goal setting, and execution as well as productivity but with a narrowed focus only
on large corporations. Proceeding with the research necessitates a thorough analysis of resources
to be utilized. Both primary and secondary data are equally important for the research project,
but the data should be collected vigilantly.
However, there were a lot of publications aimed at defining the topic but unfortunately,
there is a shortage of literature specifically discussing leadership with a narrowed focus on small
enterprises such as iMiTs Art Company. According to Sergiovanni and Starratt (1983), “there is
no specific style that fits all when talking about leadership but the level of effectiveness of a
chosen style of leadership will highly depend upon its applicability to the current situation a
company is facing”. Assuming the significance of leadership is to influence operations of a
company, and then leadership can be defined as a path of mobilizing the taskforce for a common
objective set forth by the organization. However, leadership can only be considered a success if
the effect of a certain leadership style creates a unanimous desire among all workers and the
organization. According to Knies, Eva & Jacobsen, Christian & Tummers, Lars. (2016), “the link
between proper leadership styles and performance of the small organization in a competitive
business environment is uncertain”.
2-B. Description and Critique of Scholarly Literature
17
Yusuf, Muhammed, & Kazeem, (2014) stated that the success of the organization depends
on the leadership style followed by the leaders and managers. The most widely preferred
leadership styles are transformational leadership and transactional leadership. It is essential to
assess if there is a significant association between the applicability of different leadership styles
and the performance of the business organization. The managers should focus on identifying the
leadership styles based on different occasions because one type is not suitable for everyone
working in the organization. The strengths of the article are a proper description of key concepts
like transformational leadership, transactional leadership, and many more, and utilization of
statistical tools to perform regression analysis and correlation analysis. There is no weakness
associated with this article.
Leadership is the main factor that determines the success or failure of the organization.
There are six main types of leadership styles: transformational, transactional, autocratic,
bureaucratic, charismatic, and democratic. The leader is responsible to identify the strengths and
weaknesses of each style, and how it will have an impact on the success of the company. The
strengths of the article are the use of primary research and secondary research based on survey
instruments and previously published literature, and testing of hypothesis using correlation and
analysis of variance. There is no weakness with this article (Khajeh, 2018).
Leadership and organizational culture have a close association, and it depicts the
performance of the organization. There has been implicit and explicit linking of organizational
culture and leadership in various parts of the organization theory. The paper deals with
determining the link between organizational culture and performance, leadership and
organizational culture, and the interplay between organizational culture and leadership.
Statistical analysis is one of the best ways to determine the association between two or more
18
factors. The strengths of the article are it studies the close association between organizational
performance, organizational culture, and leadership style, the article also performs discriminant
validity and reliability of the organizational culture and leadership. The weakness of the article is
that it does not thoroughly discuss the results of statistical analysis (Ogbonna & Harris, 2000).
Vermeeran, Kuipers, & Steijn, (2014) stated that the performance of the public sector
undertakings is one of the main issues by most organizations. The management should not forget
to analyze the association between human resource management and public organizational
performance. The mediating factor for the research is the job satisfaction between human
resource management and organizational performance. The paper has drawn samples from the
employees working at Dutch municipalities, and the statistical tool used is structural equation
modeling. The strengths of the article are it clearly highlights the research question of the study,
tests multiple hypothesis using statistical models, and clear representation of results in table and
sentence form. The only weakness of this article is the insufficient data analysis tools used.
Organizations prefer to have managers and leaders who can handle the performance
efficiently and effectively. The effective managerial style will provide empowerment and
enhance productivity. It also increases morale and motivation leading to a positive impact on the
organization. However, the leadership helps in increasing profitability and productivity but the
level of success depends on the leadership style and the environment provided to the staff
members. The strengths of the article are statistical analysis using analysis of variance, fishers
least significant difference, and multiple regression model. The only disadvantage with the
article is that it does not highlight detailed information about the key concepts like autocratic
leadership, democratic leadership, etc (Ukaidi, 2016).
19
Transformational leadership has been of significant importance in the literature for
potential performance in the organization. Research proved that transformational leadership style
significant importance in the improvement of work climate and knowledge. The four essential
components of transformational leadership are idealized influence, individual consideration,
intellectual stimulation, and inspirational motivation. The research results have proved that
transformational leadership has a significant impact on organizational performance. Leaders
should target three components: individual consideration, intellectual stimulation, and
inspirational motivation. The strengths of the article are a description of key components of
transformational leadership along with characteristics, the description of the theoretical
framework, Association of organizational performance with all the four components, testing and
proposition of 5 hypothesis, utilization of statistical analysis to conclude, and proper description
of the demographic factors of the respondents. The only weakness with this article is that it
doesn't properly highlight the theoretical framework (Orabi, 2018).
Madanchian, Hussein, Noordin, & Taherdoost, (2016) stated that the objective of any of
the organizations is to retain in the market for the long run. When the objective is to sustain itself
in a highly competitive market, then the organization should focus on increasing performance.
An appropriate leadership style helps to improve the success level and economic growth of the
organization as well as employees. The objective of the paper is to determine the impact of
leadership styles on organizational performance. The strengths of the article are it clearly
describes some of the essential concepts like transformational leadership, organizational
performance, and leadership and organizational performance. The weakness is it doesn't involve
any technical analysis using statistical tools and techniques.
20
Managers play a significant role in improving employee satisfaction and organizational
performance. The United Arab Emirates has been recognized as the country with the highest
effectiveness. Different programs need to be created to encourage the government to build the
capabilities and enhance the performance by creating and monitoring numerous excellence
awards. The research is focused to analyse the four types of leadership based on sample data
obtained from 55 respondents. The survey included the ability to assess the perception of the
leaders for enhancing the effectiveness. The strengths of the article are a proper description of
the hypothesis, the methodology used, the use of the EFQM model and the graphical
representation of the information gathered. The disadvantage of the article is that it doesn't
include a statistical tool for analysis (Swapna & Yaseen, 2016).
Leadership is used in various aspects of human endeavor like a business, academics, social
works, politics, etc. the extent of leadership traits exhibited by the leader no not only depend on
the personal abilities and characteristics, but also on the environment and situation. The research
is based on small and medium scale enterprises in Nigeria from where the data is collected from
70 employees. The statistical tool used for analysis is chi-square statistics. The results suggested
that transactional leadership is better than transformational leadership style for small and
medium scale enterprises. The strengths of the article are following the proper pattern of writing
research article like the background of the study, statement of the problem, the purpose of the
study, research methodology, hypothesis, conceptual framework and many more, and using
statistical tools and techniques for analysis. There is no disadvantage associated with the article
(Saasongu, 2015).
Certain researchers conversely use transformational leadership as beguiling leadership. Be
that as it may, in light of McLaurin and Al-Amri (2008), various varieties between both of these
21
positions exist like appeal being one among the qualities of the transformational leader instead of
the sole part, the consequence of situational idealness or implausibility on perspectives,
transformational conduct de - emphasizing magnetism, the beguiling leader's conceivable
personal circumstance and furthermore the plausible undesirable impacts of enchanting
leadership. It's additionally imagined that transformational leadership is substantially more
prevailing at unrivalled degrees of the board than at lower level.
Work has a gigantic influence in people's lives just for the explanation that they commit a
greater amount of time at the workplace than doing each other single action. In view of Furnham
(2005), one will discover a great deal of reasons why individuals work: work supplies a methods
for income, an asset of activity and inspiration, an asset of social contacts, a simple technique for
building time, alongside a gracefully of self-satisfaction and self-actualisation. Representatives'
job satisfaction can likewise be a basic feature of work. Good sentiments concerning a job can
prompt individuals experiencing more prominent satisfaction with their previous way of life by
and large. Moreover they lead individuals to become more advantageous genuinely and
considerably. Work may be a gracefully of joy for an individual, and consequently, scientists yet
others who're stressed over people's pleasure, stress that top job satisfaction should be rehearsed.
The presence and endurance of an organization and its encouraging require an idea and
estimation of performance as an estimating apparatus for the accomplishment of organizational
performance. Organizational performance is a pointer of the degree of achievement that can be
made and copy the progress of the leadership so the performance of the organization mirrors the
elements of the organizational life cycle. The investigation looks at the part of leadership style on
organizational performance in a chose Bank in Pune. Compelling leadership practices can
encourage the improvement of performance when organizations face new difficulties. Leadership
22
alludes to the conduct of a leader to gather and direct the individuals towards any objectives.
Leadership is a correspondence process among leaders and individuals. So the adequacy of an
organization relies on the compelling leader and a successful leader is that individual who has a
powerful leadership style. Leadership is a vital factor for any organization or group. The current
examination endeavors to research the most favored leadership practices among the
transformational and democratic leadership styles and their effect on Employees' and
organizational performance in the bank of Pune. Discoveries show that there is a relationship
between's leadership style and organizational performance. The examination presumes that
transformational and democratic leadership style ought to be utilized by the Banks'
administration to develop further in a worldwide serious climate (Nagendra & Farooqui, 2016).
Leadership has been perceived as a central point in undertaking achievement and this has
been exactly approved all through numerous fields. Nonetheless, the CEO leadership style has
only from time to time been examined inside and out with regards to big business asset arranging
(ERP) project achievement. In this examination, an overview was done with 368 Taiwanese
organizations that had recently actualized ERP frameworks over a 1-year time span. Three
transformational leadership styles – magnetism, individual consideration, and intellectual
stimulation – are talked about. The outcomes show that lone a charismatic leadership style has a
considerably beneficial outcome on organizational performance, particularly through the
successful execution of ERP. Administrative ramifications and proposals are examined
dependent on discoveries (Chen-Mui, Ping-Yu, & Wen-Lung, 2011).
Mehra, Smith, Dixon, and Robertson (2006) contend that when a few organizations look
for proficient approaches to empower them to outflank others, a longstanding methodology is to
zero in on the impacts of leadership. Group leaders are accepted to assume an urgent part in
23
forming aggregate norms, assisting groups with adapting to their surroundings, and planning
aggregate activity. This leader-focused point of view has given significant bits of knowledge into
the relationship between leadership and group performance (Guzzo and Dickson, 1996). A few
examinations have investigated the essential job of leadership to explore how to utilize
leadership ideal models and use leadership conduct to improve organizational performance
(Judge, Bono, Ilies, and Gerhardt, 2002; Judge and Piccolo, 2004; Keller, 2006). This is on the
grounds that theoretical resources, for example, leadership styles, culture, ability and capability,
and motivation are seen progressively as key wellsprings of solidarity in those firms that can join
individuals and processes and organizational performance (Purcell et al., 2004).
Understanding the impacts of leadership on performance is likewise significant on the
grounds that leadership is seen by certain analysts as one of the key main impetuses for
improving a firm's performance. Compelling leadership is viewed as a powerful wellspring of
the board advancement and supported upper hand for organizational performance improvement
(Avolio, 1999; Lado, Boyd and Wright, 1992; Rowe, 2001). For example, transactional
leadership assists organizations with accomplishing their current objectives all the more
effectively by connecting position performance to esteemed prizes and by guaranteeing that
representatives have the assets expected to take care of business (Zhu, Chew and Spengler,
2005). Visionary leaders make an essential vision of some future state, impart that vision through
outlining and utilization of allegory, model the vision by acting reliably, and assemble
responsibility towards the vision (Avolio, 1999; McShane and Von Glinow, 2000). A few
researchers like Zhu et al. (2005), recommend that visionary leadership will bring about
undeniable degrees of attachment, responsibility, trust, motivation, and subsequently
performance in the new organizational conditions.
24
Delegating leadership is a category of leadership styles in which leaders do not take part in
the decision and group members are the ones who make the decisions. Delegating leadership is
characterized by almost no guidance from leaders, complete opportunity for followers to make
decisions, leaders give the apparatuses and assets required, and the group members are relied
upon to take care of issues on their own. Delegating leadership can be viable in situations where
group members are profoundly gifted, motivated, and capable of chipping away at their own.
Since these group members are specialists and have the knowledge and abilities to work
independently, they are capable of accomplishing tasks with almost no guidance.
This autonomy can be liberating to some group members and help them feel more satisfied
with their work yet thus bad decisions could be taken and devastate crafted by others. The
Delegating style can be utilized in situations where followers have an outstanding degree of
passion and inborn motivation for their work. While the conventional term for this style is
'Delegating' and infers a totally hands-off approach, many leaders actually remain open and
available to group members for consultation and feedback.
Delegating leadership is not ideal in situations where group members don't have developed
background information or they don't have the required insight to work viably all alone and take
the suitable decision. Delegating leaders are frequently seen as uninvolved and withdrawn, which
can lead to a lack of interaction and between corporations inside the group. In the event that
group members are unfamiliar with the task or the process that is expected to accomplish the
task, leaders start taking part in the task to save the group members from falling. Eventually, if
followers have the required insight, leaders consider utilizing the Delegating style to followers
work comfortably with more opportunity in making a decision and to function admirably
independently (Lewin, Lippit, and White, 1939).
25
Leadership style is a sort of technique that aims to realize organizational targets and affect
all organizational activities. This quantitative examination zeroed in on various business domains
in Saudi Arabia to examine how leadership styles are related to human asset strategies and
organizational performance. The investigation adopted oneself administered study strategy
method utilizing a pre-validated pre-guided questionnaire. Data were analyzed utilizing
Structural Equation Modeling. A total of 270 questionnaires were distributed with a reaction rate
of 92.9% based on an accommodation technique. The study found an immediate positive
relationship between leadership style and organizational performance and an aberrant
relationship between leadership style and human asset strategy as a mediator, while human asset
strategies contribute emphatically and significantly to organizational performance. The
discoveries are relevant for operating human asset management strategies and for building up a
style of leadership. An enterprise can utilize this information to advance acknowledgment and
commitment among its representatives based on a range of strategies, and then creates the overall
performance of the organization. Also, it is conceivable to utilize diverse leadership styles for
various strategies. Thus, this investigation has both theoretical and practical reference value
(Alsughayir, 2014).
Successful Leadership, representative occupation satisfaction, and organizational
responsibility are the three important facets of organizational achievement. A viable leader gives
guidance to workers, provides them guidance towards the achievement of wanted goals, as an
outcome representative with high occupation satisfaction apply more exertion in the fruition of
work for achieving achievement and hence are more dedicated towards the organization (Voon,
Lo, Ngui, and Ayob, 2010). Many aspects of leadership style and organizational responsibility
have been concentrated in the earlier investigations. Theorists characterize leadership as "a
26
process of dealings among leaders and assistants where a leader attempts to sway the behavior of
his or her subordinates to achieve company goals" (Lo, Ramayah, Min, and Songan, 2010).
Organizations face many challenges, however, one of the greatest one is guaranteeing the
prosperity of its workers. Understanding of the association among work satisfaction, worker
organizational responsibility, organizational culture, and leadership is important because it
assists in creating a proficient and motivated labor force and allows for an organization to
achieve better overall goals and objectives (Amburgey, 2005). As Bass and Avolio (1994)
characterize "Transactional leadership hypothesis is a trade of rewards with subordinates for
administrations gave. This tries to motivate followers through extraneous rewards". The top
management plays a vital job in an organization, as these heads carry the organization in a
diplomatic way by which the job of representatives is most certainly not much significant
however they have to make representatives feel to be a part of their organization. Therefore, the
representatives encourage the style where they have the authority. Like, representatives don't
uphold a leadership style in which they feel that their idea is not being taken truly, they need a
decentralized framework wherein their recommendation and their decisions are given the same
importance and this creates motivational factor amongst the workers which gives a positive
result (Wang and Clegg, 2011). The leaders have an influence on the behavior of their
representatives by their leadership style. The two leadership styles, transformational and
consideration work which is individuals arranged have come about to have a relationship with
each other in teamwork concerning the leading share in regards of culture, age, and sex it appears
as though to be most suitable leadership style having a positive relationship (Rowold, 2011).
Leader-Member Exchange (LMX Theory) is about how individuals carry a leadership position in
a group through various means and exchange important information which creates a solid
27
relationship between the workers of the organization (Carolina Gomez and Benson Rosen, 2011).
Leader-part exchange is all about the relation between the leaders and their team, this hypothesis
has a very particle and theoretical application which is valuable yet it has a few issues which
resemble the measurement of its adequacy and its application (Schyns and Blanc, 2011).
The term strengthening is exceptionally different, which is utilized as an extremely special
idea or idea nowadays in the corporate world to convey another leadership approach. The basic
idea driving the idea is to generate proprietorship at the workplace which plays a vital or a vital
part in the relationship concerning the working place and working conditions (Mushin Lee and
Joon Koh, 2010). Engaging the representatives is another way to create a solid relationship, to be
decentralizing for an organization is a state of giving the capacity to each main worker, related to
their field (Wang and Clegg, 2011). The idea of enabling leadership results emphatically in
sharing knowledge and it also creates a team to be viable and the relation is demonstrated
positive of enabling leaders' leads toward knowledge and to tan efficacy (Srivastava, Kathryn,
and Edwin, 2006).
Team leaders and their influence with obligation sharing Team is a group of individuals
who are working for a similar interest which take them to give a similar outcome. The viability
of a team is because of the team leader who has the exact knowledge and information which is
with him; the trust factor which assists with finishing their task in a successful manner is the
information and knowledge sharing inside the team. This can accelerate the performance and the
reputation of the team leader as well; the expertise and the ability of the team will result
emphatically because of the knowledge sharing (Lee, Gillespie, Mann and Wearing, 2010). The
behavior of the team members is impacted by the style of their team leader and as they learn
from the team leader how to behave in an organization or a team, team leaders have their
28
influence upon the entire team, is relationship of the behavior is end up being positive. The
followers have their own definition to characterize the team leader (Vondey, 2008).
An individual at working place plays an important part to create the trust factor between
the leaders and the subordinates. The relationship between the trust and the representatives is
positive; as the trust factor is greater the consequence of the organization result would be
positive, which means that trust constructs a solid relationship for leaders and their workers
(Bernerth and Walker, 2011). Leaders ought to build up their trust for the representatives to
search for the ideal results, as this trust can be increase by demonstrating that they are a part of
the organization, an organization that gives them equal chances for them as for the leaders. Trust
inside the team is a lot of important, so the team leader can disclose all the information and the
knowledge he has with deference to the task and this will bring about a compelling manner.
Trust between the team makes them carry each other and create the best ideal result out of the
work.
Worker discernment is viewed as the main variable when it comes to measure HR
practices, as this is the major variable, which contributes a ton to the adequacy of the
organization. Implementation of any organization largely relies upon the performance of its labor
forces. Notwithstanding of the size and portrayal of an organization, the activity it starts, and the
atmosphere wherein it operates, its accomplishment relies upon its worker's decisions and their
behavior. It was seen that the effectual Leadership Styles has increased the performance of the
organization as well as their benefits. Leadership Styles show a solid relationship with the
capability of the firm (Nasurdin, Hemdi, 2008).
Human asset is a much-expanded field, which deals with many human asset issues, which
incorporate worker satisfaction, the age group in the organization, and length of administration in
29
the whole organization. Whereas all these variables are straightforwardly extent to representative
insight. According to the entire research that we have imagined and after examining various
articles and journal of various colleges and publication have determined an analysis on the basis
of representative discernment on HRD practices of an organization. After advising that many
researches regarding representative satisfaction, state age and residency had a positive and linear
relationship with overall representative discernment related to Job satisfaction. It proposes that
age have a solid association with satisfaction in male and the other way around in females.
Human asset practices play a vital job in shaping the representative attitude and worker
discernment. The worker has outlook and viewpoints about many features of their positions.
From a research and practice perspective representative attitude is largely based on occupation
satisfaction. Occupation satisfaction may be portrayed as the positive experience or positive
emotional state arising from a representative's current work. Of all the components that lead to
work satisfaction, satisfaction with the nature of the work is one of the main components that
bring about occupation satisfaction. In the event that a representative is pleased with his/her
nature of the work and the task assigned, at that point, they will be satisfied. Challenges in work,
autonomy, variety, and extent of work are different components that will also bring about
occupation satisfaction.
2-C. Inferences for Forthcoming Study
Problems to be addressed
A lot of rumors have been spread concerning how certain leadership styles have
influenced the success of small businesses across the globe. According to (Barling, Weber, &
Kelloway, 1996), "there is a direct relationship between leadership, organizational culture, and
performance of an organization”. However, (Bennett, 1997) stated that “even though there are
30
claims of a direct relationship between leadership and performance, there is very little research
conducted in this field to support the fact.”
The problem being investigated by this study is to ascertain which particular leadership
style is the most ideal style in the management of a small enterprise like iMiTs Art Company.
The key outcome is to search and develop skeletal literature published on leadership styles on
small enterprises and its overall effect on the success of small enterprises whether or these styles
influenced the business of the Small enterprise. There are quite a few theories that have been
published and many more are being developed to explain the concept of leadership and its
applicable styles to organizations. However, all these theories are limited in scope since they
highly elaborate on the effect of leadership on business in general without a specific focus on
small businesses. Such theories should have been the basis that was to guide contemporary small
business establishments on how to adopt a particular style of leadership to adapt a business to the
problems it faces in the contemporary business environment.
Possible research questions
The research question is: Do small organizations exhibit one specific leadership style or a
random combination of styles? The key outcome is to search and develop skeletal literature
published on leadership styles on small enterprises and its overall effect on the success of small
enterprises whether or these styles influenced the business of the Small enterprise. The research
paper shall focus on investigating 5 research questions. The first will dwell on leadership styles
employed by directors of iMiTs Art Company. The second and third questions shall focus on the
applicability of these leadership styles to both internal and external decision making in iMiTs Art
Company. The fourth and fifth questions shall dwell on the chosen population sample. The
research questions utilized in this study include:
31
1. What type of leadership style is being used by the majority of the members of the iMiTs
Art Company in managing the internal organization affairs?
2. What type of leadership style is being used by the majority of the members of the iMiTs
Art Company in managing the external affairs of the organization?
3. What population factors reflect internal leadership styles in a small enterprise like iMiTs
Art Company?
4. What population factors reflect external leadership styles in a small enterprise like iMiTs
Art Company?
5. What leadership style is considered to be the most ideal Leadership style for Small
business such an iMiTs Art Company?
Possible theoretical or conceptual framework
Firm's advancement has certain elements that improve supportability based on adequacy
and effectiveness. The improvement in profitability prompts worker's better conduct and
responsibility as norms, values, and objectives help in improving the society of an organization.
Organizations search for administrators who can oversee adequately and effectively. Be that as it
may, every chief is novel with their style contingent upon the circumstance and slanted
worldview. Managerial style is the example of reasoning, feeling, and conduct that a chief uses
to manage individuals and circumstances. An administrator has a few administrative styles, for
example, autocratic, bureaucratic, charismatic, democratic, and laissez-faire.
Organizational performance and leadership style
Leadership is recognized as a significant subject in the field of organizational behavior.
Leadership has the most powerful impacts on the individual and organizational connection. As
such, the ability of management to execute ''collaborated efforts'' relies upon leadership
32
capability. It has been clarified that the brilliant pioneer moves subordinates' capability to
improve the effectiveness as well as meets their necessities during the time spent accomplishing
organizational objectives. Stogdill (1957), characterized leadership as the individual behavior to
control a gathering to accomplish the normal target.
Fry (2003) clarifies leadership as utilization of driving procedure to offer moving
rationale and to upgrade the staff's potential for development and improvement. A few reasons
show that there ought to be a connection between leadership style and organizational execution.
The first is that the present escalated and dynamic business sectors include advancement-based
rivalry, value/execution competition, diminishing returns, and the imaginative annihilation of
existing abilities. Studies have recommended that successful leadership behaviors can encourage
the improvement of execution when organizations face new difficulties (McGrath and
MacMillan, 2000).
Organizational performance alludes to the ability of an enterprise to accomplish such
objectives as high profit, quality items, great monetary outcomes, and endurance (Koontz and
Donnell, 1993). Organizational performance can likewise be utilized to see how an enterprise is
getting along regarding the degree of profit, piece of the pie, and item quality comparable to
other undertakings in a similar industry. Thusly, it is an impression of the profitability of
individuals from a venture estimated as far as revenue, profit, growth, development, and
expansion of the organization. Understanding the impacts of leadership on performance is
additionally significant in light of the fact that leadership is seen by certain scientists as one of
the key main impetuses for improving an association's performance.
Successful leadership is viewed as a strong wellspring of management development and
supported upper hand for the improvement of organizational performance (Rowe, 2001).
33
Visionary pioneers make an essential vision of some future state, impart that vision through
outlining and utilization of illustration, model the vision by acting reliably, and fabricate
responsibility towards the vision (Avolio, 1999; McShane and VonGlinow, 2000). Zhu et
al.(2005),suggest that visionary leadership will bring about significant degrees of attachment,
responsibility, trust, inspiration, and henceforth performance in new organizational conditions.
Fenwick and Gayle (2008), in their investigation of the missing connections in
understanding the relationship between leadership and organizational performance, infer that
regardless of a speculated leadership-performance relationship proposed by certain specialists,
current discoveries are uncertain and hard to decipher. Past investigations prompted the
assumption that leadership ideal models will effectively affect customer satisfaction, staff
satisfaction, and monetary performance. All in all, notwithstanding, the impacts of leadership on
organizational performance have not been very much contemplated, as indicated by House and
Aditya's audit (1997), who criticized leadership reads for zeroing in exorbitantly on better
subordinate relationships than the prohibition of a few different capacities that pioneers perform,
and to the avoidance of organizational and ecological factors that are essential to intercede the
leadership performance relationship.
From this survey of related literature, it is clear that albeit a few researchers accept that
leadership improves organizational performance while others contract this, various ideas of
leadership have been utilized in various examinations, making direct correlations virtually
impossible. Holes and unanswered inquiries remain. Therefore, this examination is planned to reevaluate the proposed leadership-performance relationship and, along these lines, contribute
genuinely to the collection of developing literature and knowledge here of study.
Types of leadership styles
34
Among the different kinds of leadership styles and motivations identifying with viable
organizational administration, we will restrict our anxiety to transformational and value-based
leadership styles. Value-based leadership depends on an ordinary exchange relationship in which
devotees' consistency (exertion, efficiency, and steadfastness) is exchanged for anticipated
prizes. Interestingly, transformational (uncommon) leaders raise devotees' awareness levels
about the significance and estimation of assigned results and methods of accomplishing them.
They likewise spur adherents to rise above their own quick personal circumstance for the mission
and vision of the organization (Saowalux & Peng, 2007).
Such absolute commitment (emotional, intellectual, and moral) urges supporters to create
and perform past assumptions. Consumes (1978), sees that transformational leadership includes
the way toward affecting significant changes in organizational mentalities to accomplish an
organization's targets and procedures. Bass (1985), saw that value-based leaders work their
organizational societies observing existing guidelines and methods, while transformational
leaders change their societies dependent on another vision and an amendment of shared
assumptions, values, and norms. At the point when an organization should adjust to changes in
innovation, its leadership is a basic factor in its effective change.
Transformational leadership
The contrast among transformational and transactional leadership lies in the method of
rousing representatives. A transformational pioneer's conduct begins in the individual values and
convictions of the pioneer and inspires subordinates to accomplish more than anticipated (Bass,
1985). Consumes (1978), distinguished transformational leadership as a cycle where ''at least one
people draw in with others so that leaders and adherents raise each other to more elevated levels
of motivation and morality''. For transformational leadership style, the adherent feels trust,
35
adoration, steadfastness, and regard towards the pioneer, and is persuaded to accomplish more
than what was initially expected to do (Bass, 1985). The transformational pioneer persuades by
making supporters more mindful of the significance of errand results, instigating them to rise
above their own personal responsibility for the organization or group, and initiating their higherrequest needs. He urges supporters to think fundamentally and look for better approaches to
move toward their positions, bringing about intellectual incitement that outcome in an expansion
in the degree of performance, satisfaction, and obligation to the objectives of their organizations
(Podsakoff et al, 1996; Bass et al, 1994).
Inspirational motivation is generally a friend of appeal and is concerned about a pioneer
setting higher expectations, in this manner turning into a sign of reference. Bass (1985), brings
up followers admire their inspirational chief as one giving emotional appeal to build mindfulness
and understanding of commonly alluring objectives. This is portrayed by the correspondence of
elevated standards, utilizing images to center endeavors, and communicating significant reason
simply. The pioneer consistently carries on by talking hopefully about the future, articulating a
convincing vision for the future, and giving an energizing picture of organizational change (Bass
and Avolio, 1994). The motivation happens by giving importance and challenge to the adherents'
work; individual and camaraderie were stimulated and, energy and idealism are shown. The
pioneer urges supporters to imagine appealing future states, for the organization and themselves.
Individual stimulation gives followers challenging new ideas and urges them to split away from
the old perspectives (Bass, 1985). The leader is described as one advancing insight, soundness,
legitimate reasoning, and cautious critical thinking. The credits incorporate looking for
contrasting viewpoints when tackling issues, recommending better approaches for analyzing how
to finish tasks, and empowering re-examining of thoughts that have not been addressed before
36
(Bass & Avolio, 1994). The leader urges the followers to be imaginative and inventive by
addressing assumptions, rethinking issues, and moving toward old circumstances recently.
Transactional Leadership
Transactional leadership includes an exchange process that outcomes in follower
compliance with leader demand yet not likely to create eagerness and obligation to task
objectives. The leader focuses on having inward entertainers play out the errands needed for the
organization to arrive at its ideal goals (Boehnke et al, 2003). The objective of the transactional
leader is to guarantee that the way to goal attainment is obviously perceived by the interior
entertainers, to eliminate likely obstruction inside the framework, and to persuade the
entertainers to accomplish the foreordained goals (House and Aditya, 1997).
Transactional leaders show both useful and restorative practices. Productive conduct
involves an unexpected prize, and the remedial measurement soaks up administration by the
exemption. Unforeseen prize includes the explanation of the work needed to acquire rewards and
the utilization of motivating forces and unexpected awards to apply impact. It thinks about
follower assumptions and offers acknowledgment when goals are accomplished. The explanation
of goals and objectives and giving acknowledgment whenever goals are accomplished should
bring about people and gatherings accomplishing anticipated degrees of performance (Bass,
1985). Active management by exemption alludes to the leader setting the standards for
compliance also concerning what establishes insufficient performance and may incorporate
rebuffing followers for rebelliousness with those standards. This style of leadership suggests
close checking for deviances, mix-ups, and blunders and then making a restorative move as fast
as conceivable when they happen.
Trait theory and behavioral theory
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The two theories that serve as bases for my research are trait theory and behavioral
theory. Trait Theory of leadership means that specific natural qualities that result in the
formation of a good leader. Having certain qualities does not mean having strong leadership
skills. Behavioral theory focuses on the environment of the person instead of natural abilities.
One of the factors of behavioral theory is conditioning. The theories will support my research
because it defines the traits as well as behavior to be perceived by the leader to influence the
performance of the subordinates. A person will have specific natural qualities or obtain the
abilities as a result of conditioning (Williams, 2016).
Training for the leaders at small organizations
Another topic related to my research is the training of the leaders to handle the working
of subordinates. It is true that every leader is not born with the desired characteristics, there is a
need to provide the right kind of training and support from the top management so that future
leaders can follow the same path. In this, I will discuss the types of training conducted by various
organizations and how they are proved to be a success by improving the individual and
organizational performance. Training is required in every aspect of the organization whether it is
related to working in a group for leading the group.
Impact of leadership on business innovativeness
Innovation is a fundamental requirement for small organizations to accomplish long-term
viability. Without innovation, survival is not possible for all organizations. The innovative
capability of an organization is based on leadership. If the leader is influential and motivating,
then the output generated will be successful for the company. On the other hand, if the leadership
ability is not influential then the output generated will not be able to survive for long (Dunne,
Aaron, McDowell, Urban, & Geho, 2016).
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Job satisfaction
Job satisfaction keeps on being comprehensively explored hence to the start of the 20th
century, when there is development toward considering the psychological conditions of the
laborer associated with post-war modern transformation concerning developing in the yield of
representatives. Since the Human relation School was built up, the various aspects of the going
with ideas of job satisfaction and motivation happen to be appeared through the different job
satisfaction and uplifting thoughts, for instance people by Maslow, Herzberg, Vroom, etc.
Laborers are the essential authoritative methods without laborers; associations would not exist or
capacity. As of late, calculating workers satisfaction has transformed into a matter of quickening
worry among business administrations.
Kalleberg (1977) recommended that job satisfaction comprises of two parts. These are
intrinsic (alluding to the work itself) and extrinsic (speaking to features of the job outside to the
undertaking itself) job satisfaction. Hirschfield (2000) expressed that intrinsic job satisfaction
alludes how individuals feel about the idea of the job undertakings themselves while extrinsic job
satisfaction alludes how individuals feel about parts of the work circumstance that are outside to
the job assignments or work itself. In this examination, two components of job satisfaction are
analyzed, to be specific working condition (extrinsic) and working task (intrinsic).
Organizational culture
An organizational culture begins as an aggregate formation of individuals' association
with others as they endeavor to understand their condition. Leadership and the executive’s
choices and styles unequivocally impact the human connections in the firm. What rises up out of
these communications are shared perspectives on the real world and settled upon practices that
are viewed as significant and proper contrasted with interchange practices. The Organizational
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Culture Inventory (OCI) evaluates culture as far as 12 social standards grouping into three
components. The three components are constructive, passive defensive, and forceful guarded.
The constructive societies reflect conduct standards that balance a worry for individuals with a
worry for assignments. Individuals are relied upon to move toward assignments and interface
with individuals in manners that help them meet their higher-request satisfaction needs. The
hypothetical supporting of the OCI is the fundamental Ohio state and Michigan social leadership
research, combined with Maslow's pecking order of necessities hypothesis. Broad examination
with the OCI proposes that organizations with constructive societies beat firms with cautious
societies on an assortment of adequacy results (Klein, 2003). Considering past exploration, this
investigation utilizes the constructive social standards as contained in the OCI to speak to
beneficial social standards, and utilizations protective standards to speak to less beneficial social
standards.
Possible research paradigms and methodologies to be used
The research methodology most applicable to my research topic is mixed methods. It
means to focus on both qualitative and quantitative research. Qualitative research is about nonnumerical facts and quantitative research is based on numerical expressions. The qualitative
research will be the leadership styles people aware of and mostly use at small organizations. The
quantitative research will be a leadership style which is widely preferred by most of the
leaders/employees. The research design appropriate for conducting the proposed study is a
descriptive research design. It describes the prevailing situation of the identified variables. The
research provides systematic information regarding the phenomena. It means the research will
discuss the leadership style which is used by most of the organizations and how it helps the
employees to improve the individual as well as organizational productivity.
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Terms Definition
Small Enterprises
A number of publications have been used to define a small business. Some literature has
defined it as based on the number of workers, size of the organization, annual sales volume, or
the number of assets owned. The small business states that “a small enterprise is a solely owned
institution control by a proprietor and whose operations are not massive enough to create
dominance in the market it operates”. However, for this research paper, a small enterprise is
referred to us a business with a small task force.
Sole Proprietor
Gilmer’s Law Dictionary (1986) stated that “a sole proprietor is a business establishment
that’s managed by an individual who is liable to all liabilities of the company as well as the
direct beneficiary of any gains obtained from the business”. The owner of the company is
inseparable from the entity per se.
Partnerships
According to Black’s Law Dictionary (1990), "partnerships are legal establishments
created for the purpose of conducting business whose members include two or more people with
a common agenda".
Leadership
According to Hersey and Blanchard (1984), “leadership is explained as that act of
influencing other factors in a given circumstance with the objective reaching a common goal.”
2-D. Conceptual Framework for Forthcoming Study
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A survey of the literature demonstrates that transformational leadership can decidedly
affect the general performance of the organization. In light of this attestation and an
understanding of the four focal components of transformational leadership, a hypothetical
structure to understand how transformational leadership influences organizational performance
was defined. The structure proposes the utilization of five independent variables including:
transformational leadership, idealized influence, inspirational motivation, intellectual
stimulation, and individual consideration. Organizational performance as estimated through
adequacy and proficiency was used as the reliant variable. The framework recommends that
while transformational leadership may bring about the advancement of improved organizational
performance, explicit components of transformational leadership may play are more huge or
considerable job in shaping performance results.
Transformational Leadership and Performance
The relationship between transformational leadership and organizational performance
was momentarily inspected in the prologue to this work. With an end goal to understand the job
that transformational leadership plays in the advancement of organizational performance,
different researchers have thought about what this leadership hypothesis means for explicit parts
of worker and organizational conduct to shape results. For example, Choudhary, Akhtar, and
Zaheer (2013) show the effect of transformational leadership on organizational picking up,
exhibiting that this methodology can be utilized to improve the capacity of the organization to
change and advance. This can incite development and extension showing the fruitful
organizational performance (Choudhary et al., 2013).
Transformational leadership was additionally found by De Jong and Bruch (2013) to have
a direct sway on the organizational environment. De Jong and Bruch contend that through
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transformational leadership the environment of the organization can be reinforced establishing a
climate where workers are roused and empowered. This encourages the accomplishment of
organizational goals and subsequently expanded performance (De Jong and Bruch, 2013).
Giroux and McLarney (2014) give an expanded assessment of the effect of transformational
leadership on the environment taking note that this result has foundational suggestions for
workers, customers, and investors. Spurred representatives working in a strong environment give
more compelling customer administration, reinforcing organizational performance and
prompting monetary profits for investors (Giroux and McLarney, 2014).
Idealized Influence and Performance
Idealized influence is one of the four components of transformational leadership
distinguished as an independent variable for this examination. Researchers looking at this
process attest that idealized influence alludes to the possibility that followers will trust and
regard leaders to offer help and assets (Chu and Lai, 2011). Because of this conviction, workers
will acknowledge the mandates given by the leader, paying little heed to their multifaceted
nature or trouble (Chu and Lai, 2011). Albeit the job of idealized influence and its suggestions
for organizational performance is regularly conceptualized as a component of transformational
leadership, there is proof showing that idealized influence may affect specific parts of
organizational performance. Specifically, idealized influence may have suggestions for worker
responsibility and satisfaction to encourage commitment and motivation while at work (Chen,
2004). Understanding the particular effect of idealized influence on organizational performance
is subsequently basic for expanding cognizance of how transformational leadership influences
organizational results.
Inspirational Motivation and Performance
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Inspirational motivation is another component of transformational leadership that is
analyzed in this examination as an independent variable. Inspirational motivation is broadly
looked into by Doody and Doody (2012) who contend that the process includes urging followers
to adjust individual goals to the goals of the organization. Through this process, Doody and
Doody contend that the objectives of the organization are all the while accomplished, with the
results having suggestions for both the worker and the organization. Similar to the variable of
idealized influence, inspirational motivation and its effect on organizational performance has not
been generally analyzed outside of the setting of transformational leadership.
Rawung, Wuryaningrat, and Elvinita (2015) consider the part of inspirational motivation
noticing its job in building trust and satisfaction for the representative. As per these creators,
inspirational motivation can fill in as the establishment for knowledge sharing; a significant
component of encouraging the accomplishment of the organization. The shortage of knowledge
with respect to how much inspirational motivation influences results for organizational
performance prompts the need to look at this variable independently to gather a more exact
understanding of its effect.
Intellectual Stimulation and Performance
Intellectual stimulation addresses a significant component of transformational leadership
and is likewise included as an independent variable for assessment. A survey of this variable
proposes that intellectual stimulation encourages follower strengthening through correspondence
and support to distinguish issues and arrangements (Smothers, Doleh, Celuch, Peluchette, &
Valadares, 2016). The job of intellectual stimulation on organizational performance has been
assessed all the more widely in the literature as an independent variable molding results for
representatives in the organization. Specifically, Anjali and Anand (2015) affirm that intellectual
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recreation prompts the advancement of representative obligation to the organization. This, thus,
has suggestions for the capacity of the organization to accomplish goals dependent on the
devotion and difficult work of representatives (Anjali & Anand, 2015).
Individual Consideration and Performance
The last independent variable chose for audit in this examination is individual
consideration. Zacher, Pearce, Rooney, and McKenna (2014) consider the degree if individual
consideration noticing that the process includes the readiness and capacity of the leader to give
sustaining backing to every follower. Regarding the ramifications of individual consideration for
organizational performance, Snell, Stanley, Zhang, & Almaz (2013) contend that this process can
emphatically influence worker work satisfaction, prompting more elevated levels of commitment
and motivation inside the organization. At the point when all workers experience this result
organizational performance ought to improve (Snell et al., 2013).
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CHAPTER III: METHODOLOGY
Chapter 3: Research design and methods
3.A. Methodology
Leadership style in an organization is one of the components that assume a huge part in
improving or impeding the interest and responsibility of the individuals in the organization.
Subsequently, Glantz (2002) underscores the requirement for a chief to discover his leadership
style. Among the objectives of any little venture are benefit making and attainment of maturity
and liquidity status. Leadership styles are a manner and approach of providing directions,
motivating people, and implementing plans. It comprises of the total pattern of implicit and
explicit functions performed by the leaders. Leadership styles are essential to be determined in
small businesses because it defines the way the success achieved by the business.
However, there were a lot of publications aimed at defining the topic but unfortunately,
there is a shortage of literature specifically discussing leadership with a narrowed focus on small
enterprises such as iMiTs Art Company. According to Sergiovanni and Starratt (1983), “there is
no specific style that fits all when talking about leadership but the level of effectiveness of a
chosen style of leadership will highly depend upon its applicability to the current situation a
company is facing”. Assuming the significance of leadership is to influence operations of a
company, and then leadership can be defined as a path of mobilizing the taskforce for a common
objective set forth by the organization.
3.B. Conjectures, or Exploratory Questions
The exploratory questions that guided this inquiry is: Which leadership style has
maximum impact on the organizational performance? The focus is on six major leadership styles
-transformational, transactional, autocratic, charismatic, bureaucratic and democratic. It is
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discovered that there is both a positive and a negative relationship between the selected
dimensions of leadership and organizational performance. Transactional leadership, Charismatic
leadership, and bureaucratic leadership were found to have a negative relationship with
organizational performance. This shows that these leadership styles don't actuate the employees
to perform better and stimulate high turnover aim. The leadership styles, for example,
charismatic and bureaucratic leadership are acceptable styles of leadership for a present moment
or little tasks however to the extent the long haul and future possibilities are thought of, they are
not valuable as they don't prompt employee improvement, and this doesn't draw out the normal
exhibitions from the employees. Be that as it may, the democratic leadership, transformational
leadership, and autocratic leadership style have a positive relationship with the hierarchical
presentation separately. This demonstrates that these three styles of leadership incite the
employees to perform better and according to the degree of assumptions. These leadership styles
should be advanced in the associations (Khajeh, 2018).
Transformational leadership has a positive relationship with authoritative execution.
Transformational pioneers are the individuals who have a dream, make vital arrangements for the
future development and advancement of their association, convey objectives and targets to all
concerned, and proceed with endeavors for accomplishments of objectives and destinations
through responsibilities and commitment. A transformational pioneer utilizes qualities and
standards for propelling subordinates to accomplish the normal degree of execution (Bass, 1985).
Through qualities and standards, the degree of trust and certainty expands which brings about
increment proprietorship and soul of penance. The transformational pioneer propels and helps
employees towards improved authoritative execution. According to Burns (1978), the
transformational leadership style is an interaction where "at least one people draw in with others
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so that pioneers and devotees raise each other to more elevated levels of inspiration and profound
quality". Thus, it affirms discoveries of the writing inspected up until now, that transformational
leadership contributes towards authoritative execution.
Transactional leadership has a positive relationship with authoritative execution however
the effect is rela...
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