DOCSLIB.ORG

Transformational Leadership VS. Transactional Leadership

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Transformational Leadership VS. Transactional Leadership Transformational Leadership VS. Transactional Leadership: The Influence of Gender and Culture on Leadership Styles of SMEs in China and Sweden The Department of Business Studies Master in International Business FEC 685, Master Dissertation December 2006 Tutors: Christer Ekelund Authors: Pan Xiaoxia Lisa Källström Pan Xiaoxia Viveca Fjelkner Wu Jing Acknowledgements Kristianstad University, 2006 There are many people to whom we owe the acknowledgements. First of all, we would like to express our most sincere and warmest appreciation to our supervisors, Christer Ekelund and Lisa Källström, who have been generous enough to give us valuable comments on the whole thesis. Many thanks also give to Annika Fjelkner for her patient improvement in our English writing. Then we are indebted to Dr. Hoon Halbauer at Lund University, Dr. Ingemar Ottosson and Dr. Leif Holmberg at Kristianstad University for their kind help. Particular thanks also to Zhang Lin, Pierre Carbonnier, Duoc Lu and Yang Xinzheng for their sincere help in our questionnaire and data analysis. Last but not least, we owe our profound gratitude to all our friends and all the Chinese and Swedish managers who have offered us lots of support and encouragement. Pan Xiaoxia Pan Xiaoxia Wu Jing Abstract Transformational and transactional leadership, which focus on the relationship between leaders and employees, are the most recent development of leadership theories. Yet studies on the impact of gender and culture on transformational and transactional leadership styles are limited. This Master Dissertation therefore aims to shed new light on that issue. First, it attempts to compare leadership styles adopted by managers of SMEs in China and Sweden. Second, it tries to evaluate which element - gender or culture - exerts a more important influence upon leadership styles. Based on empirical researches, ten hypotheses are formulated and a new model is developed in the dissertation. In addition, the deductive approach is chosen as methodology and quantitative data is gathered with the help of an empirical study of an online questionnaire. Eventually, the present research indicates that both Chinese managers and Swedish managers of SMEs are prone to be more transformational than transactional. It also shows that there is no gender influence upon leadership styles. In contrast, culture exerts a little more impact on leadership styles of SMEs in China and Sweden. Key words: transformational leadership style, transactional leadership style, gender, culture, China, Sweden Table of Contents 1. Introduction 1.1. Background ...........................................................................................................1 1.2. Problem..................................................................................................................2 1.3. Purpose...................................................................................................................2 1.4. Limitations.............................................................................................................3 1.5. Research Questions...............................................................................................3 1.6. Outline....................................................................................................................3 2. Methodology .............................................................................................................5 2.1. Choice of Methodology.........................................................................................5 2.2. Data Collection......................................................................................................5 2.2.1. Secondary Data....................................................................................................5 2.2.2. Primary Data .......................................................................................................6 2.2.3. Qualitative Method and Quantitative Method .....................................................6 2.3. Research Approach...............................................................................................6 2.4. Research Philosophy.............................................................................................7 3.Theoretical Framework............................................................................................8 3.1. An Overview of Theories of Leadership .............................................................8 3.1.1. Introduction: Concepts of Leadership .................................................................8 3.1.2. Characteristics of Leadership Theories...............................................................9 3.1.2.1. Four Types of Leadership Theories...................................................................9 3.1.2.2. Summary.........................................................................................................11 3.1.3. Traditional Theories of Leadership....................................................................11 3.1.4. New Leadership in the 21st Century..................................................................12 3.1.4.1. Introduction.....................................................................................................12 3.1.4.2. Transformational Leadership ..........................................................................12 3.1.4.3. Connective Leadership....................................................................................13 3.1.4.4. Summary.........................................................................................................13 3.1.5. Summary of Leadership Theories ......................................................................13 3.2. Transformational VS. Transactional Leadership.............................................14 3.2.1. Introduction........................................................................................................14 3.2.2. Components of Transformational Leadership ...................................................15 3.2.3. Components of Transactional Leadership .........................................................15 3.2.4. Summary ............................................................................................................16 3.3. Gender and Leadership......................................................................................17 3.3.1. Overview of Theories of Gender and Leadership ..............................................17 3.3.1.1.Stereotypes of Male and Female Leaders ........................................................17 3.3.1.2. Role Incongruity .............................................................................................18 3.3.1.3. Gender Differences in Actual Leadership Styles ............................................18 3.3.2. Gender Persepective on Transformational and Transactional Leadership.......22 3.3.2.1. Introduction.....................................................................................................22 3.3.2.2. Gender Difference Camp ................................................................................22 3.3.2.3. Non-Differences Camp ...................................................................................24 3.2.2.4. Summary.........................................................................................................24 3.4. Culture and Leadership .....................................................................................25 3.4.1. An Overview of Theories of Culture and Leadership Styles………………………25 3.4.1.1. Theories of Culture .........................................................................................25 3.4.1.2. Theories of Previous Researches on Culture and Leadeship Styles ...............25 3.4.1.3. Hofstede’s Four Cultural Dimensions of National Culture.............................27 3.4.2. Hofstede’s Four Cultural Dimensions VS. Leadership Styles............................29 3.4.2.1. Power Distance VS. Leadership Styles...........................................................29 3.4.2.2. Collectivism/Individualism VS. Leadership Styles ........................................29 3.4.2.3. Femininity/Masculinity VS. Leadership Styles ..............................................30 3.4.2.4. Uncertainty Avoidance VS. Leadership Styles ...............................................31 3.4.2.5. Summary.........................................................................................................32 3.4.3. Hofstede’s Four Cultural Dimensions Index of China and Sweden...................34 4. Discussion of the PWP Model ...............................................................................36 4.1. Introduction.........................................................................................................36 4.2. Explanation for the PWP Model........................................................................36 4.3. Hypotheses...........................................................................................................45 4.3.1. Hypotheses of Influence of Gender on Leadership Styles..................................45 4.3.2.Hypotheses of Influence of Four Cultural Dimensions on Leadership Styles ....46 4.4.Conclusion…………….………………………………...................................…..49 5. Empirical Method ..................................................................................................50 5.1. Research Strategy................................................................................................50
Load more

Recommended publications
  • An Evaluation of a Reward Management System Used by the Botswana Local Authority: the Case of Gaborone City Council
    View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by GSSRR.ORG: International Journals: Publishing Research Papers in all Fields International Journal of Sciences: Basic and Applied Research (IJSBAR) ISSN 2307-4531 (Print & Online) http://gssrr.org/index.php?journal=JournalOfBasicAndApplied --------------------------------------------------------------------------------------------------------------------------- An Evaluation of a Reward Management System used by the Botswana Local Authority: The Case of Gaborone City Council Theophilus Tshukudu* Department of Management, Faculty of Business, University of Botswana, Gaborone, Botswana Email: [email protected] Abstract This paper demonstrates the importance of reward management system within an organization within a local authority setting. Most importantly, the aim of this paper is evaluate reward management system used by the Gaborone City Council to motivate Council employees. Nowadays, companies are making many modifications on their rewards system to adopt internal and external changes. Reward system is used as a critical tool for driving business growth and boosting staff morale. It is important to align the right measures and reward systems with firm’s structure and culture. The role of total rewards is achieving business goals, employee productivity and employee retention cannot be underestimated. A total reward strategy has to be linked with the entire employee proposition making it a critical factor in the attraction and retention of talent in organisations. The reward management system is concerned with the formulation and implementation of strategies and policies that aim to reward employees, equitably and consistently in accordance with their value to the organization” [1]. Keywords: Reward Management System; Employee; Motivation; Gaborone City Council.
    [Show full text]
  • Working Paper Series
    Working Paper Series 03/2008 Can compensation be strategic? A review of compensation management practice in leading multinational firms Trevor, J. These papers are produced by Judge Business School, University of Cambridge. They are circulated for discussion purposes only. Their contents should be considered preliminary and are not to be quoted without the authors’ permission. Author contact details are as follows: Jonathan Trevor Judge Business School University of Cambridge [email protected] Please address enquiries about the series to: Research Support Manager Judge Business School Trumpington Street Cambridge CB2 1AG, UK Tel: 01223 760546 Fax: 01223 339701 E-mail: [email protected] CAN COMPENSATION BE STRATEGIC? A REVIEW OF COMPENSATION MANAGEMENT PRACTICE IN LEADING MULTINATIONAL FIRMS Jonathan Trevor Judge Business School University of Cambridge January 2008 ABSTRACT Compensation is a key element of the employment relationship and, in addition to being the single greatest operating cost for many organizations, it has been advocated by some recently as a tool for enhancing organizational performance and sustained competitiveness. Contemporary approaches to compensation emphasize the importance of aligning employee behaviors to the strategic direction of the organization. Such approaches – broadly labeled strategic compensation, have become widely adopted by organizations. Yet our understanding of the nature of strategic compensation management is limited. Though strategic pay has been the subject of considerable academic and practitioner attention, it is argued that orthodox theories of strategic pay have a number of important shortcomings. Moreover, it is argued that there is much empirical evidence with which to challenge the received wisdom of strategic approaches to compensation.
    [Show full text]
  • Impact of Reward Management Practice On
    ADDIS ABABA UNIVERSITY COLLEGE OF BUSINESS AND ECONOMICS, SCHOOL OF COMMECE, GRADUATE STUDIES DEPARTMENT OF HUMAN RESOURCE MANAGEMENT EFFECT OF REWARD MANAGEMENT PRACTICE ON EMPLOYEES’ PERFORMANCE A CASE STUDYON CATERING AND TOURISM TRAINING INSTITUTE By: Teferi Haile Mariam Advisor: Solomon Markos(PhD) THESIS SUBMITTED TO ADDIS ABABA UNIVERSITY, SCHOOL OFCOMMERCE IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF ARTS IN HUMAN RESOURCE MANAGEMENT. May, 2017 Addis Ababa, Ethiopia i | P a g e Effect of Reward Management Practice on employees ‘Performance ADDIS ABABA UNIVERSITY COLLEGE OF BUSINESS AND ECONOMICS, SCHOOL OF COMMECE, GRADUATE STUDIES DEPARTMENT OFHUMAN RESOURCE MANAGEMENT EFFECT OF REWARD MANAGEMENT PRACTICE ON EMPLOYEES' PERFORMANCE A CASE OF CATERING AND TOURISM TRAINING INSTITUTE By Teferi H. Mariam Approved by The Board of Examiners: Solomon Markos (PHD) _______________ ________________ Advisor Signature Date Abeba Mengistu(PHD) _______________________ __________________ ______________ Internal Examiner Signature Date TesfayeDebela(PHD) ________________ __________________ _______________ External Examiner Signature Date ii | P a g e Effect of Reward Management Practice on employees ‘Performance Statement of Certification This is to certify that Teferi H. Mariam has carried out his research work on the topic entitled “Effect of Reward management practice on employees’ performance A case of Catering and tourism training institute”. The work is original in nature and is suitable for the award of Master
    [Show full text]
  • Reward & Recognition Strategies
    Master Thesis Spring Semester 2007 Supervisor: Nils Wåhlin Authors: Tuğba Öztoprak Richard Lundmark Reward & Recognition Strategies - A case study of GE Healthcare in Umeå ~ ACKNOWLEDGEMENTS ~ Acknowledgements We would like to first of all thank the respondents of GE Healthcare that took time to answer our questions, and were most forthcoming. We would also like to thank our supervisor Nils Wåhlin for all his helpful advice and guidance. Our thanks also go to our initial supervisor Helena Renström. We would also like to extend our gratitude to our friends and family for their continuous support and patience throughout our thesis process. Sincerely, Tugba Öztoprak & Richard Lundmark Umeå, April 2, 2007 ~ ABSTRACT ~ ABSTRACT In a world characterized by increased global competition, and a rapidly changing business environment, companies and organization are forced to continuously reevaluate how they work. Since the first systematic studies of manual labor began during the last century, the focus have changed from a strict control of employees toward looser organizations, increased globalization, and the emergence of HRM- Human Resource Management during the 80’s. Research shows that employee compensation can account for as much as 70-80 percent of companies cost, but also show that the value of a company’s human capital can significantly affect the market value of the company. Studies also show that managers see non-monetary reward and recognition systems as very effective in reaching eight out of ten organizational objectives. Another problem facing international companies is establishing themselves in cultures vastly different from their own, in regards to organizational as well as national cultures being different.
    [Show full text]
  • Reward Management and Organizational Performance of Workers in Delta State
    International Journal of Business & Law Research 9(2):106-113, April-June, 2021 © SEAHI PUBLICATIONS, 202 1 www.seahipaj.org ISSN: 2360-8986 Reward Management And Organizational Performance Of Workers In Delta State Samuel, Ajiri Peter Department of Business Administration and Management Delta State Polytechnic, Ozoro, Delta State, Nigeria [email protected] ABSTRACT The biggest resource to any organization is the workforce, the employees. The corresponding performance should be in line with reward packages. The reward should be without iota of inconsistency and unevenness. The end result for a reward system is to motivate the workers to realize the goals and objectives of the organization. This review bothers on reward management and organizational performance. It attempted to ascertain what other reviewers had found in reward performance relationship. It evaluated the benefits inherent in a reward management system. As a booster to better productivity achievement, reward management should be handled with utmost seriousness hence, the employees had come to the organization to also fulfill their goals and aspirations. This review concludes that reward management has a positive relationship with the level of performance as much as the reward motivates workers to perform creditably. Keywords: Reward, Performance, Management, Organization, Motivation, Reward System, Efficiency 1.1. INTRODUCTION The goal attainment of any organization is the level of productivity. Productivity is the index of performance. For an organization to have a competitive advantage at the market place, it must possess some sterling product qualities. Performance cannot be achieved if the human resources is neglected. For the human resources to be motivated, there is need for some level of recognition in terms of rewards, incentives, for some form of zeal being built up.
    [Show full text]
  • Reward Management System
    ISSN: 2348 9510 International Journal Of Core Engineering & Management (IJCEM) Volume 2, Issue 2, May 2015 Research Paper on Reward Management System Dr.Shine David Professor ,Institute of Mangement Studies,Davv,Indore (M.P.) Contact No: (+91) 9425057181, E-mail: [email protected] Swati Rajput Student, MBA (HR), Institute of Mangement Studies,Davv,Indore (M.P.) Contact No: (+91) 9669385916,E-mail: [email protected] Jasmine Khan Student, MBA (HR), Institute of Mangement Studies,Davv,Indore (M.P.) Contact No: (+91) 8871378345, E-mail: [email protected] Veer Singh Raghuwanshi Student, MBA (HR), Institute of Mangement Studies,Davv,Indore (M.P.) Contact No: (+91) 9907227490 ,E-mail: [email protected] 1 ISSN: 2348 9510 International Journal Of Core Engineering & Management (IJCEM) Volume 2, Issue 2, May 2015 I. Abstracts: Human resources are the most important among all the resources an organization owns. To retain efficient and experienced workforce in an organization is very crucial in overall performance of an organization. Motivated employees can help make an organization competitively more value added and profitable. The present study is an attempt to find out the major factors that motivate employees and it tells what is the relationship among reward, recognition and motivation while working within an organization. The data were collected from employees of diverse type of organizations to gain wide representation of sectoral composition. In all, 150 self administered questionnaires were distributed among the employees of different sectors and they returned 130 completed useable questionnaires for response rate of 86.67%. The participation in survey was voluntary and confidentiality of responses was ensured.
    [Show full text]
  • Global Reward Management Programme
    Global Reward Management Programme Benefit from the expertise of 3 leading European Business Schools – Earn a certificate in Global Reward Management Global Reward Management Programme The Global Reward Management Programme is designed to deepen your expertise in developing strategically aligned reward policies in a global business environment. A strategic approach to rewarding in a global context A good reward strategy makes clear choices. It takes the firm’s legal, social and economic contexts into account, as well as its strategy and culture. Furthermore, attention must be given to employee perceptions. A good reward strategy results in both sustainable value creation and higher performance. Essential tools and concepts The Global Reward Management Programme provides a perfect blend of strong applied academic research, practical relevance and expertise to enable global reward professionals to apply the concepts and tools essential to (re)shaping their organisation’s reward policies, systems and governance into a strategic instrument. The programme has a triple focus: (1) driving strategic change and employee behaviour; (2) meeting the challenges of rewarding in a global context; and (3) aligning strategy and rewards; Participant profile This programme is ideal for professionals who have international responsibilities in HR and/or reward management and who work for companies with operations in multiple countries or with plans to expand internationally. Added value for you and your company • The programme illuminates the critical success factors for designing rewards to have a significant impact on performance. • You will learn to develop reward policies that are aligned with your company’s institutional, strategic and cultural contexts. • You will master highly relevant tools and frameworks that will help you put powerful concepts into practice.
    [Show full text]
  • Reward Management.Pdf
    735 46 Reward Management Key concepts and terms • Base pay • Relational rewards • Contingent pay • Reward management • Employee benefi ts • Reward strategy • Grade and pay structure • Reward system • Job evaluation • Total remuneration • Market rate analysis • Total reward • Non-fi nancial rewards • Transactional rewards Learning outcomes On completing this chapter you should be able to defi ne these key concepts. You should also know about: • The aims of reward management • Total reward • The economic theories explaining • Guiding principles for reward pay levels • Components of an effective • The content of reward strategy reward strategy • Developing reward strategies • Developing line management capability • Implementing reward strategy • The philosophy of reward management 736 Rewarding People Introduction This chapter provides an overview of reward management. The concept of reward manage- ment, its aims and its philosophy, are discussed initially. Reference is also made to the eco- nomic factors that affect levels of pay. This is followed by a description of the elements of a reward management system and the concept of total reward. The chapter continues with an examination of the process of strategic reward and concludes with a discussion of the role of line managers in reward management. Reward management defi ned Reward management is concerned with the formulation and implementation of strategies and policies in order to reward people fairly, equitably and consistently in accordance with their value to the organization. It deals with the development of reward strategies and the design, implementation and maintenance of reward systems (reward processes, practices and proce- dures) which aim to meet the needs of both the organization and its stakeholders.
    [Show full text]
  • Managing Reward Strategy to Enhance Employee Performance, Retention and Productivity in Organizations: a General Overview
    uu MANAGING REWARD STRATEGY TO ENHANCE EMPLOYEE PERFORMANCE, RETENTION AND PRODUCTIVITY IN ORGANIZATIONS: A GENERAL OVERVIEW NWOKOCHA, Izidor Rozdon Integrated Systems Ltd, Port Harcourt, Rivers State, Nigeria [email protected] +234(0)8033381275 Abstract In a globalized economy with millions of businesses vying for talented workforce, an organization must be able to motivate and properly compensate employees or risk their being poached by their competitors. This prompts the need for this study to examine the application of reward strategy in organizations with a view to ascertaining its efficacy on employees‘ performance, retention and productivity. The study is essentially library research. From the study, two types of organizational rewards were identified: financial and non-financial rewards. The paper verified the positive correlation between rewards and employees‘ performance, retention and productivity in the organization. However, the study observed that if organizational rewards plan is perceived to be inequitable and bias, it may de-motivate employees in the organization. Based on this, the study proposes: that rewards system in the organization should be designed with articulated strategies that should be embedded in the organization‘s culture; management should identify employees‘ needs/preferences in developing organizations‘ compensation structure. The application of these notions when matched with a good managerial disposition will enable organizations to formulate effective, sustainable strategies that will address equitable and adequate reward for employees, which in turn will enhance employees‘ performance, retention and productivity in the organization. Keywords: Rewards, Employee, Performance, Retention, Productivity, Organization Introduction In organizational discourse, the management of reward strategy that guarantees organizational well-being had often times been emphasized.
    [Show full text]
  • Assessnent of Reward Management Practice
    CORE Metadata, citation and similar papers at core.ac.uk Provided by National Academic Repository of Ethiopia ASSESSNENT OF REWARD MANAGEMENT PRACTICE IN FINCHA SUGAR FACTORY BY TAREKEGN DABA FEYISSA A Thesis Submitted to The Department of Business and Management for the Partial Fulfilment of the Requirements for the Degree of Master of Business Administration in Industrial Management ADDIS ABABA SCIENCE AND TECHNOLOGY UNIVERSITY MAY 2018 DECLARATION I, the undersigned, declare that this thesis entitled ‘‘Reward Management Practice in Fincha Sugar Factory’’ is my original work and has not been submitted partially or in full to other university, and all sources of materials used for the purpose of this thesis have been duly acknowledged. Declared by: Tarekegn Daba Feyissa Sign______________________ Date______________________ ii CERTEFICATE This is to certify that thesis by Mr. Tarekegn Daba Feyissa entitled “Reward Management Practice in Fincha Sugar Factory” submitted in fulfilment of the requirements for the degree of Master of Business Administration complies with the regulations of the University and meets the accepted standards with respect to originality and quality. Signed by Examining Board Examiner: __________________________Signature:_____________Date:___________ Examiner: __________________________Singature:______________Date:__________ Thesis Advisor:_______________________Signature:______________Date:_________ iii ACKNOWLEDGEMENT I am very grateful to my adviser, Alula Tessema (PhD) for his valuable critiques, helpful comments and encouragements throughout preparation of this thesis. My deep gratitude also goes to employees of Fincha Sugar Factory operations for their participation in responding to survey questions and interview protocol. Importantly, I would also like to thank my wife w/ro Jalale Alemayehu for her encouragement throughout my work. iv ABSTRACT The purpose of this study is to assess reward management practice in Fincha Sugar Factory.
    [Show full text]
  • Performance-Based Reward Administration Enhancing Employees’ Feelings of Interactional Justice
    Studies in Business and Economics no. 12(1)/2017 DOI 10.1515/sbe-2017-0001 PERFORMANCE-BASED REWARD ADMINISTRATION ENHANCING EMPLOYEES’ FEELINGS OF INTERACTIONAL JUSTICE AZMAN Ismail University Kebangsaan, Malaysia MOHD RIDWAN Abd Razak University Kebangsaan, Malaysia Abstract: The transformation in international business landscape has changed organizational management especially reward administration. This is done in order to maintain the organization’s competitiveness in global market place. In the field of reward administration, an emerging trend can be observed whereby most organizations are moving toward the application of psychological elements in administering organizational reward system. The ultimate objective of this study is to investigate the association between performance-based reward administration and interactional justice. The proposed model was empirically tested using a sample of 113 employees from fire and rescue agency in Peninsular Malaysia. This study found an evidence that performance-based reward administration (i.e., communication, participation and performance appraisal) is positively and significantly associated with interactional justice. This findings proves that the ability of administrators to appropriately implement communication openness, inspire participative decision-making and organize fairness performance appraisal in administering performance-based reward have significantly evoked the feeling of interactional justice when employees perceived that they are being fairly treated in the reward system. Key words: Communication, job satisfaction, participation, performance appraisal 1. Introduction In organizations, reward is an important issue that has to be effectively managed by the administrators, especially human resource managers. Reward is a strategic human resource management policy that aims to recognize the contributions of employees to the organization as a part of employment relationship contract (Martocchio, 2014; Milkovich et al., 2014).
    [Show full text]
  • 1 Reward Management Strategies on Employee
    REWARD MANAGEMENT STRATEGIES ON EMPLOYEE PERFORMANCE IN SELECTED UNIVERSITIES IN NAKURU COUNTY, KENYA MARY WAMBUI KATHOMBE A Research Project Submitted to Graduate School in Partial Fulfillment of the Requirements for the Award of the Degree of Masters of Human Resource Management of Egerton University EGERTON UNIVERSITY NOVEMBER, 2018 1 DEDICATION I dedicate this project report to my family. i COPYRIGHT All rights reserved. No part of this document may be produced, stored in retrieval system or transcribed in any form or by photocopying without this prior written permission of the author or Egerton University. © Mary Wambui Kathombe, 2018 ii DECLARATION AND APPROVAL Declaration This research project is my original work and has not been submitted or presented for examination in this or any other university. Signed………………………………………Date…………………………………. Mary W. Kathombe CH11/00117/09 Approval This research project has been submitted for examination with my approval as University Supervisor. Signed…………………… Date………………………. Dr. Simon Kipchumba, Lecturer, Department of Business Administration Egerton University iii ABSTRACT Rewards play an important role in increasing employee job satisfaction resulting in improving organizational performance. Motivated employees are the cornerstone of any successful organization. The main objective of this study was to establish the effects of reward management strategies on employee performance in selected universities in Nakuru County. The specific objectives were: to determine the effect of financial rewards on employee performance, to determine the effect of non-financial rewards on employee performance and to determine the combined effect of financial and non-financial rewards on employee performance. Descriptive survey design was adopted in conducting this study, as it was suitable for collecting information that described an existing phenomenon.
    [Show full text]