1.0 INTRODUCTION

1.1 DEFINATION OF LITERATURE REVIEW

A literature review is a discussion about critical evaluation of extensive research and

theory relating to a specific topic. Normally, the literature review is the summary of sources on a

certain subject and evaluative approach. A good literature review will look at the research that

done and synthesize or pull together those elements that are similar or most pertinent to the

theme you have chosen. The purpose of a literature review which is to demonstrate and evaluate

with identify relevant information and to outline existing knowledge.

1.2 DEFINATION OF LEADERSHIP

As we know, leadership having the power to influence people in a group to achievement

vision, mission and goal. This is because leadership is a universal phenomenon in human

societies (Bass, 2008). Normally, organizations need strong leadership and strong management

for optimal effectiveness (Stephen P. Robbins, Timothy A .Judge). Different concepts and

definitions of leadership had been studied and discussed by different way in various fields cause

by leadership is a complex concept to explain (Northouse, 2004; Bass, 2008). Leadership

commonly concentrates on the leader as a person, the behavior of the leader, the effects of the

leader and the interaction process (Bass, 2008). The overall concept of leadership is a dynamic

process which is dependent the relationship between the leader and the followers (Barker, 1990).

An effective leader always encourages autonomy with the organizational environment and

creating an organizational culture by high level of motivation and morality which leader and

followers take part (Burns, 1978). Leadership plays an important role in the transformation of

organizational culture (Penrod& Dolence 1992). Leadership have considering 6 components

which is leadership as function, leadership as process, leadership as behavioral pattern,

leadership as role, leadership as work tasks and activities and leadership as skills (Anderson,

2008). This is important because by having leadership as function, our organization will become

more systematic and the goal will be achieve. Every organization having the differences types of

leadership which functional as behavioral pattern and skills. These leadership patterns will

become the advantages competition of the organization.

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In Malaysia, the evidence of important leadership in Government Linked Companies

(GLCs) , Khazanah Malaysia, Tenaga Nasional Berhad, Malaysia Airlines, Proton and Telekom

Malaysia. Leadership style is important because normally leaders function as control both

interpersonal and rewards and punishments to influence employee behavior and attitude. For the

high power of influence of leadership, styles on individuals will have a cumulative effect on

group performance (D.D.Warrick). Leadership styles can be determined on the characteristics

management skill of each leadership and the impact of philosophy on follower (D.D.Warrick ).

2.0 DEFINATION OF FULL RANGE OF LEADERSHIP MODEL

The study of full range of leadership model, which is, includes into three main parts,

which are transactional leader, transformational leader. The researchers found that perceived

transformational leadership and transactional leadership mostly positively related to job

satisfaction, which is important to organization commitment. We are more focus on the

transformational leadership with the reason aspire and strive to attain competitive advantage over

others leadership. The full range of leadership styles already develop with more than twenty five

years in many country like Belgium, Canada, Germany, Switzerland, Great Britain, India,

Ireland, Netherlands, Italy, Spain, Japan, Israel, New Zealand, Taiwan, Australia, South Africa,

Mexico, Venezuela, China, Malaysia ,Singapore and Korea especially in the field and laboratory

research (Bass and Avolio,2004). Transformational leadership is different from the transactional

leadership based on concentrate on development and progress, solidity, authorization, self-

confidence and complement. Transformational leaders carry on the change process more

effectively and no discriminate on grounds of race, color, sex, religion, age and social class

(Chemjong, 2004).

3.0 LITERATRE REVIEW BASED ON THEORY COMPONENT

Transformational leadership or TL shows the idea in a clear and pleasing manner that

explains how to attain the ideas, acts confidently and optimistically, expresses self-confidence to

the followers, highlights values with symbolic actions, leads by instances, and inspires the

followers to achieve vision (Stone, Russell & Patterson, 2003). The term, transformational

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leadership was first created by Downton in 1973, which classified the different between

transformational leadership from transactional leadership, but the idea gained little currency. In

1978, the concept of transformational leadership was introduced by Burns in his book named

“Leadership” during his studies of political leadership Burns (1978). He described

transformational leadership is not as a set of specific behaviors, but rather an incomplete process

by which leaders and followers gain one another to get higher levels of morality and motivation.

Transformational leadership in organizational psychology is one of the most common

leadership theories. This transformational leadership’s style can contribute to ensuring content

and healthy employees. It focuses on the relationship between upper levels like manager and

lower levels like employees. Furthermore, transformational leaders excite and inspire their

followers to achieve or gain extraordinary an outcomes and in the process to develop their

follower in own leadership capacity. These leaders help followers to grow and develop by

responding to followers’ individual needs by empowering them and aligning the objectives or

mission and goals of the individual followers, the leader, the group, and the larger organization

(Bass & Riggio, 2006).

In addition, transformational leadership had known as well-studied leadership styles that

assessed or valued by the Multifactor Leadership Questionnaire (MLQ). Transformational

leadership is span to cultural and organizational boundaries or fields. Yet, this theory verified

and validated in numerous studies. A given or present leader may exhibit varying degrees of

transformational leadership. The style is not exclusive, and some combination or outcome may

enhance the effective of leadership.

Therefore, transformational leadership is the thought to obtain the follower’s inherent

motivation through the expression of the value and reputation of the leader’s goals, missions and

objectives.

FOUR ELEMENTS OF TRANSFORMATIONAL LEADERSHIP

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There are four distinct factors of transformational leadership. These comprises of

individual consideration, inspirational motivation, intellectual stimulation and idealized

influence. Research conducted in Nebraska shows that, leaders must be able to practice these

four behaviors. They also tend to obtain extra effort from the employees, experience and gain

higher employee’s satisfaction in order to get higher productivity and greater organizational

effectiveness. (Refer Chart 1.1)

3.1.1 INDIVIDUAL CONSIDERATION

One of the four element transformational leadership is individual consideration or

compassionate leader. Leaders show personal interest in followers’ requirements of growth and

performance (Avolio and Bass, 2002) in individual consideration leadership. To make this done,

a leader will act as a referee, supervisor, role model, coach or mentor. He helps to develop his

follower's abilities towards high levels of abilities. A leader must consider individual differences

between his followers in terms of their obligations and desires. For instance, he has to play

double role through an effective and efficient contact with them (Avolio and Bass 2002, Bass,

1998). A consideration leader can develop his followers’ skills by delegating some tasks and

watch them from far by implemented so that he can ensure the total of supports and directions

needed. Some also make interpersonal connections with employees. These activities allow the

team members to achieve and fulfilled in their positions or posts. In addition, the positive effect

of individualized consideration and transformational behaviors remains in empowering the

followers (Behling and McFillen, 1996). Besides that, this behavior measured and valued by the

leader’s interest in the followers’ needs for development and growth (Bass, 1994).

3.1.2 INSPIRATIONAL MOTIVATION

The second element of transformational leadership is inspirational motivation, In short is

exciting the masses or sharing the vision. Inspirational motivation is the grade to which the

leader expresses an idea that is attracting and inspiring to the followers. Those leaders act or

behave in the ways that motivate and inspire those surrounding them. By this way, it provides the

sense and challenge to their followers in the workplace. In addition, leaders are well-defined of

the expectations that followers wish to encounter and also prove commitment. In my mind the

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person I am rating is a symbol of success and accomplishment is one of the examples to show an

inspirational motivation leader or leadership.

Based on that, those followers share visions or ideas in the organization. As a result,

those followers of team unity are stimulated and both leader and followers perform enthusiasm

as well as optimism. Leaders get followers to involve in imagining the future of the organization.

A leader sets a sample for his followers. He communicates vision or ideas, inspires hard work

and expresses significant goals. Furthermore, transformational leaders motivate others through

useful tasks or duties that tend to be challenging or stimulating.

In addition, inspirational motivation leader in transformational leadership must convey a

clear vision or ideas for the future, communicate expectations of the group and demonstrate

commitments to the goals or objectives that carried out. This aspect of transformational

leadership compels outstanding communication skills as leader bear his messages with accuracy,

control and sense of command. Therefore, this may lead the leaders’ behavior more continued

hopefulness, passion and capable to show out the positive.

3.1.3 INTELLECTUAL STIMULATION OR CREATIVE LEADERSHIP

This followed by intellectual stimulation in the transformational leadership. Intellectual

stimulation or creative leadership is the extent that leader encounter expectations, risk-takers and

followers’ ideas seeking or thinking outside of the box. Leader with these personalities manage

to motivate and inspire creativity in their followers. As a result, the followers might be get or

obtain inspiration and motivation from their leader. In addition, leaders encourage their followers

by putting efforts in innovation and creativity ways. This is to reframing difficulties and

approaching previous situations in a new ways. With new ideas and creative resolutions will

pursue from followers who are required in the stage of solving problems. So, one of the example

is the person I am rating introduces new projects and new challenges.

Transformational leadership intellectual stimulation does not criticize followers in public

for their mistakes. Rather, it provides them with stimulating tasks and guiding them to solve

problems the way they wish. It values the creativity and sovereignty among the leader's

followers. The leader supports his followers by linking or connecting them in the decision-

making process and encouraging their efforts to be as creative and innovative person as possible

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as to identify solutions. To this end, the transformational leader challenges those assumptions

and solicits ideas from followers without criticizing.

3.1.4 IDEALIZED INFLUENCE OR CHARISMATIC LEADERSHIP

The last element of transformational leadership is idealized influence, charismatic

leadership or in short is actions speak louder than words. How can we define it is idealized

influence is allocated into two terms which are attributed and behavior or performance. Firstly,

idealized influence attributed lies to whether or not the leader seen as charismatic, strong,

empowerment and self-confidence. This leads to if the followers would like to relate with him or

her. Secondly, idealized influence in term of behavior includes talking about his or her most

significant values and beliefs. This is the way to emphasizing the collective or joint missions and

purposes, as well as considering the ethical consequences of his or her decisions.

Leaders behave in ways that result towards them being role models to their followers.

Leaders are admired, respected, trusted and charismatic to people. They keen to act as a risk-

takers and more consistent all the time to give security to surrounding followers. Followers

identify or value and imitate these leaders so that their followers as having extraordinary

capabilities or skills, persistence, motivation and self-determination in such situations gift them.

Among those values, leaders conduct or organize to obtain this recognition is considering the

requirements of others over their own personal requests. The leader considered on to do the right

things, exhibiting high-level standards of ethical and moral management.

Besides that, the leader also evades using power for personal obtain. It shows the

employee’s outlook at the leader in terms of power of his influence, self-confidence, his

trustworthy towards others, his consistency and ideals which individuals make an effort to

imitate. Thus, the leaders have become a goal of admiration, respect, sense of responsibility, self-

confidence, growing in optimism and the talk of the followers. So mutually, followers have to

show a high level of confidence in their leader.

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3.2 TRANSACTIONAL LEADERSHIP (TS)

Maximilian Karl Emil "Max" Weber was the first founder who comes out with the

transactional leadership study. These theories once again being observe by Bernard Bass in 1981.

Generally, transactional leadership studies more focus on basic management skills in an

organization, which consists of three characteristic including organizing, controlling and short-

term planning.

The study of transactional leadership related with the ability of leader to monitoring their

followers or colleagues through rewards or punishment system (Melvyn R.W.Hasfra, Nico

W.Van Yperen, Barbara Wisse, Kai Sassenberg, 2013). Employees are motivated by rewards and

punishment unders this transactional leadership theory to achieve routine performance goals.

Through this leadership theory, leaders will more focus on giving direct monitoring action than

understanding and mastered the feeling and emotional of colleagues to achieve company goal

and mission. A transactional leader will set some goal or tasks based on the expectation from

upper class employees when giving instruction to lower class employees (Vera & Crossan,

2004). Besides that, transactional leader will more emphasize every staff performance and

working skills when they perform their tasks.

Transactional leadership also can be known as managerial leadership (Nuttawuth

Muenjohn). Managerial leadership will be more focus on the usage of supervision, the status of

company progress and the group performance among all colleagues. A transactional leader has

their organization power through the formal authority that given and fully responsible in progress

and performance of an organization (David V. Day, John Antonakis, 2012). The main goal of all

followers under transactional leadership is to obey or follow all instructions of the leader. Both

rewards and punishment will be given to the colleague for increase companies’ productivity and

organization maturity purpose.

Transactional leadership display human behavior with constructive and corrective

transaction. There are two key summaries that including in transactional leadership theory, which

are contingency rewards and active management by exception (Rick Kuckartz, 2010). (Refer

Chart 1.2). Contingency rewards are constructive leadership theory while active management by

exception is under corrective leadership theory.

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3.2.1 CONTINGENCY REWARDS THEORY

Contingency rewards is a theory related with giving rewards to someone that compliance

the company goal or have a good performance when carry out some tasks. Generally, this system

is a motivation-based system that widely used in many small and medium-sized organizations.

Through these methods, the colleagues or employees that achieve company goals will receive

some rewards or extra bonuses. Some organizations used this method as one of the effective

ways to improve companies’ performance and generate sales.

Besides that, contingency reward called as an exchange process that involves leaders and

followers in an organization (Judge and Bono, 2000). A leader that used contingency rewards, as

an effective ways to manage the followers need to ensure each subordinate is giving their efforts

that rate able with the rewards that given. Eventually, contingency rewards mostly will be

success in an organization if the rewards option is really fulfill employee needs. For example,

commissions and monetary bonuses are the common rewards that always attract employee

attention. If the rewards that provided cannot capture majority followers’ attentions, then the

contingency rewards will not be an effective ways to attract followers to puts more effort on their

task. Therefore, leaders should provide rewards that valuable to all employees and make sure the

rewards structure attainable to everyone (Elaine S. Chapman, Melissa T, 2004).

Another term that needs to be focus by every leader is contingency rewards system must

encourage all the employee-desired behavior. Rewards that giving to each employee should not

customized and only suitable some level of employees since these will affect the effectiveness of

contingency rewards. In fact, subordinate that fulfill the quality requirement deserve the

contingency rewards, such as monetary bonuses or others rewards. Besides that, followers that

lack of compliance, poor attendance and lack of professionalism also can be disqualification for

these contingency rewards.

3.2.2 ACTIVE MANAGEMENT BY EXCEPTION (Active MBE)

In fact, management by exception (MBE) is one of the management theories that widely

used in many organizations. These leadership theories divided into two parts, which are Active

Management by Exception (Active MBE) and Passive Management by Exception (Passive

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MBE). Bass, 1997 describes that active management by exception is form of leadership that

more focus on supervise all subordinate tasks performance day-to-day. Leaders under these

management theories will always watch and searches employees’ deviations when they carry out

some tasks or mission. Besides that, active MBE leaders overemphasize on details and short-

term goals in organization and the implementation of standard rules and procedures towards

employees.

Leadership that related with active management by exception normally will be carry out

by upper class employees towards theirs followers. There are a few step that need to be focus by

leaders to ensure the effectiveness of these management theory, which including observation

towards subordinate, recognize the mistake and problems that faced, and takes corrective actions.

(Refer Chart 1.3)

At first, leaders always observe all subordinate performance based on the rules and

standards of each organization. Leaders under Active MBE systems overemphasize on each

employee performance due to the increasing of productivity and maturity of an organization.

Active MBE is systems that focus on monitoring all employees as a main core strategy to

improve an organization reputation and productivity level (Michael Paul Petran, 2008).

Observation is an important level to identify whether all subordinate done their tasks follow the

rules and standards that aligned with some organization mission and target.

The second stage in active MBE is recognizing mistake and problems from employees.

This stage is playing an important role to build up a strong and efficient team works among all

subordinate in an organization. Through observation process, leaders can easily identify some

common mistake that occur among some employees when they carry out some tasks. Some

followers working attitudes and behavior are the main factors that affect the improvement of a

company. For example, absenteeism without reasonable excuses and individual attitudes are

some of the springboard that affects the maturity level of an organization (David B. Newberry,

2008). Besides that, some nature of job that requires high level of qualification and target

achievement also will lead to the lower performance from some subordinate. This phenomenon

occurs due to the gap between the ability of the employees with the standards level of the tasks

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given are representatively are not the same. Hence, through this level, leaders can be more easily

identify the problems that faced by followers in companies.

The following stage is takes correctives actions. Leaders will take correctives actions

towards the employees that make mistake under the monitoring and identify problems process.

Generally, an effective corrective action only will be taking towards followers that not acting

correctly in their working range or cannot achieve the target or mission that require by upper

class employees. Leaders under active MBE will stricter on implementation of company mission

and rules towards all employees. They will enforce the rules and companies requirement to all

employees as an important step to prevent mistakes from every employee. Transactional leaders

will carry out corrective actions in variety ways, such as punishment towards employees and

excessive blaming on the mistake that done. Corrective actions carry out to subordinate due to

maintain the status quo and improve performance of an organization.

Compare with contingency rewards theory, active MBE is a management theory that lead

to more negative feedback and negative effect among employees. As we know, active

management by exception is a form of monitoring and corrective action that used in control

subordinate in organization. Leaders will follows closely about rules violations among followers

to ensure the qualities of performance between individual and organization. Hence, subordinates

easy to feel stress when performance their tasks under overemphasized from the leaders and this

will brings to many negative effect to an organization.

3.3 PASSIVE AVOIDANCE

One of the theories that included in full range of leadership model is passive avoidance.

Generally, passive is using to describe some people attitude that allow some event or activities to

happen or simply accepts others people decision and suggestion without trying to take some

action to change the final decision. A person that have passive characteristic in an organization

does not actively participate in all event and not involving themselves in visible reaction about

organization planning and development. While, avoidant known as a types of human behavior

that used to describes the tendency of someone to avoid intimacy or interaction with others

people. Someone who has avoidance characteristic prefers doing his or her own work in a silent

condition rather than have a good society networking with anyone.

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In fact, passive avoidance is types of leadership theory that emphasized passive action

and less management control among all subordinates in an organization. Majority organization

less choose passive avoidance theory as a main strategies to control and manage an organization

status quo. This phenomenon is common due to the less effectiveness of these theories that

willing to contribute for the improvement of an organization. A leader who practice passive

avoidance theory in an organization hard to control majority employees working attitude and

behavior, due to the less action and interaction between leaders and followers. If an organization

choose passive avoidance as their main leadership theory, majority upper class employees hard

to maintain the status quo of an organization and cannot even improve the company reputation

and productivity.

Avoidance leadership mainly refers to two main factors that important, which are laissez-

faire and passive management by exception (passive MBE). (Refer Chart 1.4)

3.3.1 LAISSEZ-FAIRE

Eventually, laissez-faire leadership is a form of leadership style that leaders allow their

subordinate to make the decisions when carry out any tasks. In laissez-faire leadership, leaders

only give a little guidance and set a hands-off concept to their followers. Followers need to

overcome some common trouble with colleague and choose the best decision without lots of

suggestion from leaders. Compare with active management by exception (active MBE), laissez-

faire leadership gives much more freedom and has fewer rules that need to be obeyed by

followers when carry out some tasks or decision-making (John J. Sosik, Don I. Jung, Dongil

(Don) Jung, 2010).

On the others hand, laissez-faire leadership also known as declarative leadership, which

means the leaders provides a free and relaxing environment for all subordinate to make decision

and giving their own view point when doing decision making. Majority decision making and

suggestion will be determined by subordinate themselves without any viewpoint or opinion from

leaders. Leaders or upper class employees abdicates their own responsibility, avoid to using their

authority and escape to make decision in many conditions. These kind of leadership often brings

a big effect to the improvement of an organization due to the lacks of direction occurs among all

colleague.

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Besides that, laissez-faire leadership also can define as non-authoritarian leadership’s

style. Leaders try to give less possible guidance to their followers, and perhaps these relaxing

management methods can achieve higher performance rather than supervision management

method (Sudha Xirasaga, 2008). Under laissez-faire leaderships, leaders believe that colleague

will have much more excellent performance when they being alone to respond to theirs

responsibility and tasks that given. According to these principle, leaders does not involving

themselves in making decision process and often lead to the low performance and anarchy

among subordinate occurs.

Leaders under laissez-faire leadership need to be more focus on few characteristic that

related with these theories, which are less guidance from leaders, complete freedom when doing

decision-making and subordinate expected to solve problems on their own methods. (Refer Chart

1.5).

Here are some different point of view between the usage and the effectiveness of laissez-

faire leadership in an organization. In the situation where majority of the followers have high

level of knowledge and working experience, motivated and have ability to working on their own,

laissez-faire leadership can be one of the effective methods to manage an organization. Through

this leadership method, followers not only capable to handle all the problems that’s faced, but

also can enjoy the relaxing working surrounding without supervision from leaders. Consultation

and feedback also provided to followers when needed although this theory related with hands-off

approach.

In some conditions, laissez-faire leadership will brings negative impact to some

organization too. For example, laissez-faire theory is not an ideal theory when an organization

has hired majority employees that lack of knowledge and working experience. The subordinate

cannot have a good decision-making and complete some tasks in an efficient way. Besides that,

some followers do not have the ability to manage their own project and tasks, solving some

problems by own and setting a suitable deadlines to complete some tasks. Without the guidance

and suggestion from leaders, some project will go off-track and it will affect the reputation of an

organization.

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Briefly, many researchers have found that laissez-faire leadership is one of the

management theories that lead to the lowest productivity between leaders and followers in an

organization. This laissez-faire leadership style is a contrast theory with transformational and

transactional leadership style, because it defined as the absence of leadership in an organization.

Laissez-faire leadership consider as the most passive component and the least effective form of

leader behavior (Antonakis, Avolio and Sivasubramaniam, 2003).

3.3.2 PASSIVE MANAGEMENT BY EXCEPTION (PASSIVE MBE)

One of the leadership theories under passive avoidance is passive management by

exception. Compare with active management by exception, these theory more focus on passive

and corrective actions that taken after noticed the conditions of some event getting worse.

Generally, leaders under passive MBE tend to be interfering and keep silent with some

employees’ negative attitude if there were not any rules violence and mistake that easy to

identify. Corrective actions only will take when followers’ performance cannot fulfill company’s

standards and mission or some mistakes that done be identified by upper class employees.

On the others hand, passive management by exception is one of the management methods

that only involve the leaders interruption process after all the followers can’t handle a project and

met with the works rules and setting by the organization. Before the failure of tasks performance

occur, leaders seldom took part in-group discussion about some topic and all decision-making

that determined by all subordinate. When there are some situation related with non-compliance

with organization’s standards be identify, then leaders start to give some of his or her viewpoint

to others colleague and try to settled the problems in a short period.

There are some step that followed by all leaders under passive management by exception

approach when they manage their followers in an organization. These following procedure

determined the ways of management that chosen as core strategy to manage the followers in

organizations. (Refer Chart 1.6).

The first step in passive management by exception (passive MBE) is leaders will give

complete freedom to subordinate to solving the problems that faced by the organization without

giving guidance and suggestion. All colleague need to do decision-making based on the self-

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discussion among all group members and determined the best option to overcome some

problems. Normally, followers feel difficult to choose some best strategies to overcome some

problems since there are lacks of knowledge and working experience compare with upper class

employees.

Second step in passive MBE is recognizing negative impacts that occur due to the

decision-making from subordinate. Majority followers cannot make the best decision to improve

the organization reputation and generate sales without any opinion from the leaders. Therefore,

majority leaders under passive MBE started to recognize negative impact that occurs after the

followers make their own decision. For example, some project that need to be carry out didn’t

fulfill the minimum requirement that stated in the agreement and some tasks cannot be carry out

on the due date that given. Negative impact that occurs not only will be one of the springboards

that affect the improvement of an organization; it also will lead to the reducing revenue of an

organization. Normally, leaders only will recognize some problems that occur in an organization

when the problems already become serious or some followers’ violence the companies’ rules and

must be settle in a meanwhile.

Besides that, a corrective action will take to all followers that violence the company rules

and standards. Leaders will give some guidance and advice in this stage when the followers

being identify that they really cannot complete some tasks without any suggestion from the

leaders. Leaders should understand followers feeling and ability before allocate the tasks to

them. Some followers that lack of working experience feel difficulty to have a good performance

when complete their tasks in a short time. Besides guidance and advice, sometimes, leader will

give some punishment to his or her followers too when there are some unacceptable tasks given

by the followers. This punishment can effectively improve the followers performance through

the following tasks that given. A corrective action must take on time before the negative impact

brings lots of big impact to an organization reputation and revenue.

In conclude passive management by exception (passive MEB) is a form of leadership that

passive and only involving corrective action when some mistakes from followers brought to

leaders attention. Leaders under passive MBE leadership theory always avoid from giving

guidance and opinion to the followers until some mistake or problems getting serious and cannot

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being ignored in an organization. Through previous studies about passive MBE, these theories

had shown to negative impact for workplace safety and the increasing rate of injury among

followers. According to Bass and Avolio, 1996, the interest of passive management by exception

leaders tended to be “leaving things alone as long as it doesn’t give them too much trouble.” In

others words, leaders under passive MBE theory only will carry out some reaction when

followers cannot fulfill the organization standards and cannot complete their tasks in a good

performance.

4.0 EMPRICAL FINDINGS / EMPIRICAL EDVIDENCE ON FULL-RANGE

LEADERSHIP MODEL

Based on our understanding in article is the Full-Range Model of Leadership Really a

Full-Range Model of Effective Leader Behavior? Although no one set of leader behaviors’

constitutes a full- range model of leader behavior, the results presented here indicate that

effective leaders use a broader set of behaviors’ than the ones included in MLQ measure. Using

the MPS (Managerial Practices Survey) measure, it demonstrated that the inclusion of some

additional leader behaviors’ adds to the prediction of managerial effectiveness beyond the MLQ

(Multifactor Leadership Questionnaire).

In all, this research suggests that to have a better understand effective leadership in an

increasingly turbulent and competitive environment, it is important to take a broader perspective

on the behavior of leaders and integrate different paradigms of leadership together to form a

more inclusive model of effective leadership. There are three main components in full range of

leadership model, which are transformational, transactional and passive avoidance and its

structure. (John, Brian and Jeewon, 2010). (Refer Chart 1.7)

From the result of this study, we know that we can evaluate the extent to which the MLQ

assesses a full-range model of leadership behavior. In this study, we note that transformational

leadership has been shown to be related to organizational performance and leader effectiveness

(Judge & Piccolo, 2004).

Similarly, contingent reward behaviors also is one of the component that positively

related to various subordinate outcomes such as extra effort, organizational commitment, and

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managerial satisfaction and effectiveness (Bass, 1998; Bycio et al., 1995; Judge & Piccolo, 2004;

Lowe, Kroeck, & Sivasubra- maniam, 1996). Some versions of the full-range model include

laissez-faire leadership as a separate behavior category.

Prior research provides sufficient evidence for the relevance of transformational and

transactional leadership, but their results reveal some weaknesses with the MLQ as an

assessment of a “full-range” model of leadership Results show also suggest that the different

leadership components predicted the various outcomes differently.

In fact, the results from the dominance analysis suggest that certain leader behaviors are

more effective in influencing some outcomes over others.

4.1 EMPIRICAL FINDINGS ON TRANSFORMATIONAL LEADERSHIP

INTRODUCTION

Burns (1978) defined transformational leadership as a process in which "leaders and

followers raise one another to higher levels of morality and motivation" (pg. 20). A chief element

of transformation is the ability to cultivate the needs of the follower in a follower-centered

manner. According to Burns, focusing on needs makes leaders accountable to the follower.

Munaf (2010) believes that under transformational leadership subordinates becomes more

confident; as their ideas been used to achieve goals and has been given a lot of encouragement

from the management through which they make achievement. According to Munaf, such leader

persuades their associates to give effort to utilize their higher levels of talent, keeping into

consideration moral and ethical standards.

There are varieties of management styles but we will focus on only three management

styles for our finding purpose. Firstly is transformational, according to Burns, focusing on needs

makes leaders accountable to the follower. First, Burns contended that followers driven by a

moral need, the need to champion a cause, or the need to take a higher moral stance on an issue.

Secondly is transactional leadership, whereas it involves conditional reinforcement.

Supporters motivated by praise, or promises by the leader for reward. They corrected through

punishment in form of disciplinary action or negative feedback. When expected performance

achieved, then subordinates will be giving promotion (Munaf, 2010).

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Munaf also highlighted that, the third type of management style considered as passive

avoidance behavior. It includes passive management-by-exception leadership and laissez-faire

styles. Management-by-exception is more passive and “reactive. It does not react to problematic

situation analytically.

FINDINGS

According to Munaf (2010), a research been conducted by her to determine the effectiveness of

transformational, transactional and passive avoidance management styles in Selected Higher

Educational Institutions of Pakistan through examining its relationship with achievement

motivation of teaching faculties.

To determine the result of these findings, Munaf has made a research by giving out

samples. The first sample consist of 60 Chairpersons or heads of different departments of 30

private and 30 public sector universities of province of Sindh and Punjabi in Pakistan. The

second sample consisted of teaching faculties from same 60 departments from where the first

sample of heads was been taken.

Munaf has been taken the measurements by introduced to Participants and Informed

Consent Form for the heads requests the Chairman/Director/Head of the department/institute of

public/private sector University of Pakistan to participate voluntarily in the study and if they are

interested to participate, then they would be required to complete some forms.

After taking consent data collection from the Vice chancellor/Registrar/Dean of the

selected universities, the heads of departments approached individually. Then, they requested to

cooperate in data collection by completing the set of questionnaires. Firstly, they asked to

complete several forms then if there is, a slight change in instruction of certain forms it must

made with the request to the heads of the departments. After that, heads then further requested to

nominate two regular teachers of their department to be sample two.

Lastly, in order to keep confidentiality of their answers, both the samples asked to fill

Proforma in an envelope given to them and seal it properly. Thus, the total score of two teachers

on achievement motivation added up and divided by 2 to give composite average score of

achievement motivation of a teaching faculty (Munaf, 2010).

RESULTS

17

Transformational leadership is the most effective method in examining its relationship with

achievement motivation of teaching faculties among three type of leadership model. (Refer Table

1.1).

INTERPRETATION

A. The correlation of transformational style of management in educational institutions of

Pakistan is not significantly related with the achievement motivation of its faculties (r = .201, p >

.05). Similarly, correlation of transactional style of management in educational institutions of

Pakistan is not significantly related with the achievement motivation of its faculties (r = .171, p >

.05).

B. The correlation of passive avoidant style of management in educational institutions of

Pakistan is significantly related with the achievement motivation of its faculties (r = .264, p.

<.05).

4.2 EMPIRICAL FINDINGS ON TRANSACTIONAL LEADERSHIP

INTRODUCTION

Transactional leadership can be defined as research that related with the ability of leader to

monitoring their followers or colleagues through rewards or punishment system (Melvyn

R.W.Hasfra, Nico W.Van Yperen, Barbara Wisse, Kai Sassenberg, 2013). Recent studies have

shown that transactional leadership, in the form of contingent reward behaviour, can have

substantial effects on employee attitudes, perceptions and behaviour.

Therefore, in this study we discuss how contingent reward transactional leadership

behaviour influences enterprise resource planning (ERP) users’ continuance intention by

explains how contingent reward has a positive effect on ERP users’ satisfaction and perceived

usefulness which leads to ERP continuance intention.

FINDINGS

The article is about an empirical piece of work conducted by Rezvani et al. (2012). This article

determines that leadership behavior emphasized on explaining effort-reward relations and

engages exchanges that take place among a leader and subordinates. For intense, leader argues

with employees about their requirement and clarifies the method to achieve the outcome and the

18

reward that receive in exchange for the satisfactory effort and performance. Contingent rewards

transactional (CRT) leaders recognize risk-taking, continuous learning and collegial support and

teamwork; they provide an environment where correct behavior is prized and where rewards

serve as extrinsic motivation for desired behavior (Natter et al. 2001).

Thus, CRT leadership behavior positively related to organizational justice perception,

commitment, follower motivation, organizational citizenship behaviors’, organization

performance, and leader effectiveness (Bass et al. 2003; Walumbwa et al. 2004; Podsakoff et al.

2000; Podsakoff et al. 2006). Contingent reward transactional (CRT) leadership behavior has

been a subject of considerable importance in organizational research (Podsakoff et al. 2000;

Podsakoff et al. 2006).

Recent studies have reached reliable and positive outcome concerning the significant

unique effect of transactional contingent reward behavior on employee behaviors, perceptions

and attitudes (Judge and Piccolo 2004; Podsakoff et al. 2010). A poor fit can lead to goal

conflicts and decreased incentives for teamwork and collegial support (Andres and Zmud, 2002).

Therefore, it is critical to striking a balance between contingent rewards based on desired

behavior and individual performance. Based on these explanations, it is easy to see that CRT

leadership behavior exerts a commanding influence on how ERP users perceive usefulness as

well as satisfaction and how they behave in relation to ERP continuance intention.

CONCLUSION

Recent research has shown that transactional leadership, in the form of contingent reward

behavior can have substantial effects on employee attitudes, perceptions and behaviors’. We

suggest that leadership reward behaviors’ have significant unique effects on attitudes,

perceptions and behaviors’, and the manner in which leaders administer rewards is a critical

determinant of the effectiveness of this leadership behavior.

4.3 EMPIRICAL FINDINGS ON PASSIVE AVOIDANCE

INTRODUCTION

Does leadership style affect absenteeism in a company? The purpose of this findings is to

contrast the effects of two leadership styles which is transformational and passive avoidance

19

regarding absenteeism, both legitimate and illegitimate, as mediated by job satisfaction

(Frooman, Mendelson, and Murphy, 2012).

FINDINGS

According to Frooman, Mendelson and Murphy, it founded that transformational

leadership decreases illegitimate absenteeism, while passive avoidance leadership increases it.

About legitimate absenteeism, transformational leadership showed to have no effect, while

passive avoidant leadership shown negatively related to it. The findings regarding passive

avoidant leaders suggest their subordinates tend to come to work when ill (presenteeism), but

stay away from work when well (illegitimate absenteeism).

Frooman, Mendelson and Murphy has highlighted on passive avoidance because by their

very definitions, it does not seem possible for someone to be both transformational and passive

avoidant. After all, transformational leadership, at its very essence, is active – formulating and

expressing vision and shared goals, giving feedback, providing encouragement – all these aspects

require engagement far beyond the range of the passive avoidant leader.

Furthermore, they acknowledge that their findings are an exploratory study, and given

that, heightened contrast that we believe exists between transformational leadership and passive

avoidance leadership. If significant differences will show up anywhere, they should show up

between these two styles of leadership (Frooman, Mendelson, and Murphy, 2012).

Thus, the empirical relationship between leadership style and absenteeism is far from

clear, and the theoretical relationship seems underdeveloped. These considerations suggest there

is room for further investigation, and so in this study they examine leadership style

(transformational vs. passive avoidance, which is a type of transactional leadership) as a

predictor of absenteeism, mediated by job satisfaction.

RESULTS

Studies examining the link between transformational leadership and absenteeism have

produced mixed results – either showing a negative correlation (Richardson and Vandenberg,

2005; Walumbwa and Lawler, 2003; Zhu et al., 2005), or no correlation (Gakovic, 2002;

Walumbwa et al., 2004; Wang and Walumbwa, 2007).

20

Only Zhu et al. (2005) have considered the link between transactional leadership and

absenteeism (which they found to be non-significant), and their work is the only one to directly

compare the effects of the two contrasting leadership styles.

The results showed that passive avoidant leadership positively predicted illegitimate

absenteeism (b¼0.17, po0.05). When job satisfaction added into this relationship, the

relationship became insignificant (b¼0.13) suggesting that job satisfaction fully mediates the

relationship between passive avoidant leadership and illegitimate absenteeism.

The relationship between passive avoidance leadership and legitimate absenteeism was

negative and significant (b¼"0.20, po0.05). However, this relationship not mediated by job

satisfaction, because job satisfaction was not shown to predict legitimate absenteeism (b¼0.09).

Thus, the relationship between passive avoidant leadership and legitimate absenteeism was a

direct one.

5.0 DISCUSSION ON COMPONENT IN FULL RANGE LEADERSHIP MODEL

Based on our findings, we have come out with a discussion regarding about full range of

leadership. In this theory, the best method among three of the leaderships in an organizational is

transformational leadership. Transformational leadership is the best implement by a manager to

lead in an organization in order to build up employees’ personalities and attitudes. According to

Russell, transformational leaderships relies on how to attain the ideas, acts confidently and

optimistically, expresses self-confidence to the followers or employees to achieve a goal.

There is couple of study case that related with the effectiveness of transformational

leadership in an organization or education institution. For instance, Munaf (2010) doing a

research to determine the effectiveness of three types of leadership in Selected Higher

Educational Institutions of Pakistan. According to Munaf (2010), transformational leadership is

the effective way among three types of leadership style when used to exanimate the motivation

status in teaching faculties. Throughout the research result, she realized that the motivation status

that achieve through using transformational leadership shows the highest outcome among three

types of leadership model. This study is important because it discusses and explores the benefits

of transformational leadership because until now most organization still using traditional

21

leadership, which is based on exchange of extrinsic, rewards and does not seek to motivate

followers beyond the level of avoiding punishment and or getting rewards. Moreover, this study

is also significant because it tells exactly how transformational leadership effects employee

commitment, satisfaction and work engagement.

Besides that, throughout our findings about three types of leadership model, it show that

transformational leadership can be more effective and stronger in work force engagement along

with contingency rewards under transactional leadership style. A contingency reward system is a

motivation-based system that related with giving rewards to colleagues that compliance the

company goal. An effective leader not only will focus on build up an employees’ positive

personality, but also will using contingency rewards as a strategy method to maintain the

relationship between leader and follower. According to Burns (1978), transactional leadership

will be more effective when most followers receive something that has great value outcomes

when they act according to their leader wishes. Based on the case study from Rezvani, it is

regarding about the relationship between effort-reward relations and engages exchange between

leaders and subordinates. Throughout this case study, it shows that contingency rewards under

transactional leadership model are an effective method to engage subordinates loyalty towards a

company. Followers will put more effort on their tasks performance when leaders are using

contingency rewards methods as one of the method to manage the company. Besides that, this

empirical evidence also shows that contingency rewards are positively related with

organizational justice perception, follower motivation and others subordinates’ performances in a

company.

In conclusion, transformational leadership is the effective method among three types of

leadership style to engage followers’ loyalty besides increase the company performance. These

phenomenon occurs due to the core focus of transformational leadership is attitude and behavior

buildup of each followers’. However, several research shows that employee loyalty can be

maintain by contingency rewards that given throughout an organization. Therefore, when

transformational leadership style gets along with contingency rewards, this management method

will be stronger and able to increase an organization performance. These leadership models, able

to brings the biggest satisfaction between leaders and subordinates’ and able to increase

company goals and company maturity.

22

6.0 SUMMARY ON FULL RANGE LEADERSHIP MODEL

In conclusion, full range of leadership model included some effective component in

managing an organization. Full range of leadership model is one of the leadership style that

important because normally leaders function as control both interpersonal and rewards and

punishments to influence employee behavior and attitude. There are three components in full

range leadership model, which are transformational leadership, transactional leadership and

passive avoidance. Based on our empirical finding, we founded that transformational leadership

is the effective leadership model among three types of leadership model. These happen most

probability due to transformational leadership is more focus on the relationship between upper

levels and lower levels in the management of organizational and span to cultural and

organizational boundaries or fields. The transformational leadership has four elements, which

consist of individual consideration, inspirational motivation, intellectual stimulation and

idealized influence. Besides that, others two component in full range of leadership model will be

transactional leadership and passive avoidance. Transactional leader is leaders that doing

monitoring through rewards or punishment system for the aim to achieve goals target by increase

productivity. There are more focus in on the contingency rewards and active management by

exception in transactional leadership theory. Active management by exception functions as

monitoring and corrective action control in organization. While, passive avoidance is types of

leadership theory that emphasized passive action and less management control among all

subordinates in an organization. Passive avoidance leadership included two types of system,

which is laissez-faire and passive management by exception. Laissez-faire leadership is a form of

leadership style who the followers have more freedom make decision to overcome common

trouble and less guidance from leaders. The researchers found that the full range of leadership

especially transformational leadership and transactional leadership normally is important to

organization commitment because mostly positively related to job satisfaction. Therefore, full

range of leadership model should be more practice in many varieties sized of organizations and

companies, such as small, medium and large-sized organizations.

23

7.0 APPENDIX

CHART 1.1

CHART 1.2

CHART 1.3

24

Transactional Leadership (TS)

Contingency Rewards

Active Management by Exception

Individual Consideration Inspirational Motivation

Intellectual Stimulation Idealized Influence 

CHART 1.4

CHART 1.5

CHART 1.6

25

ACTIVE MANAGEMENT BY EXCEPTION

Observation towards Subordinate

Recognizing Mistake & Problems

Takes Corrective Actions

Laissez-Faire

Passive Management by Execption

PASSIVE AVOIDANCE

LAISSEZ-FAIRE

LEADERSHIP

Less Guidance from Leaders

Complete freedom when

decision-making Expected to Solve Problems on Their Own

CHART 1.7

TABLE 1.1

26

PASSIVE MANAGEMENT BY

EXCEPTION

Complete Freedom to Subordinate for Solving

Problems

Recognize Negative Impact due to the Desicion-making

Takes Corrective Action & Overcome Problems in

Short Time

Correlations of Different Pakistani Styles of University Educational Management with

Achievement Motivation of Their Teaching Faculties.

Management Styles Statistics Achievement Motivation

Transformational style Pearson Correlation

Sig.

N

.201

.124

60

Transactional style Pearson Correlation

Sig.

N

.171

.191

60

Passive avoidance style Pearson Correlation

Sig.

N

.264 (*)

.042

60

Correlation is significant at the 0.05 level.

Sources: 2010 International Conference on E-business, Management and Economics

IPEDR vol.3 (2011) © (2011) IACSIT Press, Hong Kong by Seema Munaf.

TABLE 1.1

27

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31