Effect of leadership on performance management
Mgbere (2009) defines leadership as the ability to work with
group of people (employees) to achieve a goal (Northouse,2015). He also points to the fact that
leadership style affects performance (Sauer,2011), report that leadership
competencies consist of eight skills namely, peer, leadership, conflict,
resolution, information processing, unstructured decision – making, resource allocation,
entrepreneurial and introspection (Maamari and Saheb, 2017).
According to Maamari and Saheb leadership is a process based on
social influence in which the leader strives for the voluntary participation of
subordinates to achieve organizational goals. So, a leader definitely plays a
crucial role of employee performance management. The leader should be an
example to others and the leader should be able to mobilize employees to
achieve the goals of the organization by following his example. According to
Jong and Harlog, (2007), leadership can be defined as a process of influencing
people to get the desired outcomes (ul-Haq and Kuchinke (2016) ). According
to Malow’s theory, motivation depends on the hierarchy of needs of individuals
regardless of their gender. (Maamari and Saheb, 2017). Organizations need effective leaders, leaders who understand
the convolutions of the rapidly changing global environment (Kin and Yoon,2015). A structured task and a leader with a good relationship
with the employees are the perfect combination to generate high effectiveness
on the part of the employees (Boehm , 2015).
Lok and Crawford (2004) claimed that leadership can better predict the success or failure of an organization ( ul-Haq and Kuchinke , (2016). The competition of the industries is heavily increasing day by day. So, an effective and a farsighted leader is a must for an organization. Banking sector of Pakistan is a fast-growing business sector in Pakistan. According to World Bank study report, the Pakistani banking sector has been ranked second among the South (ul-Haq and Kuchinke , (2016). The long work hours, stress, employees lack of commitment, job dissatisfaction and high turnover in banks have intensified the need for effective leadership. In order to maintain the growth and achieve higher objectives, the top management in the banks needs to understand the problems and make strategies to satisfy, retain, and motivate employees to exert extra efforts. In other words, it needs such leadership in its branches that can achieve organizational goals efficiently and effectively (ul-Haq and Kuchinke , (2016). A good leader should be able to give courage and trust so that the employees could give their maximum performance to achieve the organization goals. There are many leadership styles. According to the Full Range of Leadership (FRL) model by Bass and Avolio (1994), the most effective leadership styles are transformational and transactional leadership styles, if adopted collectively, to motivate subordinates, influence their behaviors and attitudes and improve their performance (ul-Haq and Kuchinke , (2016). Not the same type of leadership suits to everywhere. Particular type of leadership may succeed a particular organization but may fail another. This will depend on the type of employees, culture, type of work, criticality of the targets etc. Varying the leadership styles according to the different situations is recommended, and each leader must be able to know when to exhibit a particular approach and with whom (Maamari and Saheb, 2017). No one leadership style is ideal for every situation, a leader may have knowledge and skills to act effectively in one situation but may not emerge as effective in another (Goleman ,2003). Leadership is not the same thing across culture (Bhagat & Steers, 2009) and leadership styles may be perceived differently in different settings (ul-Haq and Kuchinke , (2016). Further, it will help the banking leadership to know that how their subordinate perceives their leadership styles and how it impacts their performance. It can help them change their leadership styles according to achieve higher goals (Fig 1), (ul-Haq and Kuchinke , (2016).
Transformational leadership style
|
·
Idealized Influence (IA) ·
Idealized Influence (IB) ·
Inspirational motivation ·
Intellectual Stimulation ·
Individual consideration |
Transactional Leadership style
|
·
Contingent reward ·
Management by Exception (Active) ·
Management by exception (passive) |
Subordinate self-perceived
= Outcomes
|
·
Effectiveness ·
Extra effort ·
Satisfaction |
Laissez – Faire Leadership style
|
·
Laissez fair leadership |
Fig. 1
Transformational leadership is more like visionary leadership, in which leaders motivate their employees to exceed certain expectations (Hater & Bass, 1988). According to Rouche, Baker, and Rose (1989) and Tajasom, Hung, Nikbin, and Hyun, (2015), transformational leaders help their followers to accomplish the organizational goals and mission by working with them and through them (ul-Haq and Kuchinke , (2016). After the training given and authorization of the employees for specific tasks These type of leaders trust employees to take authority over decisions in their assigned jobs. The quality of transformational leader can be judged by the impact generated by the leader on the followers. Employees develop trust and respect towards the transformational leader and they are willing to exhibit extraordinary behavior to fulfill their leader's expectations (Barbuto, 1997).
3.2
These leaders focus on the organization and group performance. A transactional leader, therefore uses carrot and stick approach to achieve those goals (Bass, 1997). Employees receive benefits, rewards, bonus, compensations for achieving the specific tasks.
3.3
These leaders believe on their employee capabilities and do
not give many instructions and follow-ups. They ley their employees to use
their creativity, resources and experience to help them meet their goals.
Transformational leadership have positive influence on
employee self-efficacy, motivation, creativity and organizational performance (Bronkhorst, Steijn, & Vermeeren, 2015), On the other hand, transactional leadership is found to enhance
the job satisfaction and organizational identification as compared to
transformational leadership , Transformational leaders help individuals to adopt
organizational change (Bommer, Rubin, & Baldwin, 2004). To conclude, both
transformational and transactional leadership styles govern employee attitude
towards their leaders, job performance and organizational productivity.
References :
Bassem E. Maamari and Adel Saheb, 2017.
Barbuto, 1997; M. Asrar-ul-Haq, K.P. Kuchinke / Future Business Journal 2 (2016) 54–6456.
Epitropaki & Martin, 2005; LePine, Zhang, Crawford, & Rich, 2015
Bass, 1997; M. Asrar-ul-Haq, K.P. Kuchinke / Future Business Journal 2 (2016) 54–6456
Northouse,2015; Fry, 2003; Robbins and Coulter ,2001; Lussier ,1990
Sauer,2011; Fry,2003; Bicioet al ,1995; Bass and Avolio,1990; Cuong and Swierczek , 2008.
M. Asrar-ul-Haq, K.P. Kuchinke / Future Business Journal 2 (2016) 54–6456.
Kin and Yoon,2015; Finkelstein and Hambrook, 1996; Bassem E. Maamari and Adel Saheb, 2017.
Boehm et al, 2015; Bassem E. Maamari and Adel Saheb, 2017.
Bhagat & Steers, 2009; M. Asrar-ul-Haq, K.P. Kuchinke / Future Business Journal 2 (2016) 54–6456.
Hater & Bass, 1988; Doucet, Fredette, Simard, & Tremblay, 2015; M. Asrar-ul-Haq, K.P. Kuchinke / Future Business Journal 2 (2016) 54–6456.
True, Leadership is ability to influence others to achieve goals.(Hughes et al,1996).Hence for management of performance also it is vital to have a good leader.
ReplyDelete