R.T.
SELÇUK UNIVERSITY
INSTITUTE OF SOCIAL SCIENCES
DEPARTMENT OF BUSINESS
PROGRAM OF MANAGEMENT ORGANIZATION
THE IMPORTANCE OF LEADERSHIP STYLES IN
DECISION MAKING PROCESS: A RESEARCH IN
CHARITY ORGANIZATIONS IN IRAQ
Mohammed Saber Jami JAMI
MASTER THESIS
Supervisor
Prof. Dr. Adnan ÇELİK
i T. C.
SELÇUK ÜNİVERSİTESİ Sosyal Bilimler Enstitüsü Müdürlüğü
Bilimsel Etik Sayfası
Öğre
n
cin
in
Adı Soyadı Mohammed Saber Jami JAMI Numarası 154227012008
Ana Bilim / Bilim Dalı
İşletme / Yönetim ve Organizasyon
Programı Tezli Yüksek Lisans Doktora
Tezin Adı The Importance of Leadership Styles in Decision Making Process: A Research in Charity Organizations in Iraq
I hereby declare that all information in this document has been obtained and presented in accordance with academic rules and ethical conduct. I also declare that, as required by these rules and conduct, I have fully cited and referenced all material and results that are not original to this work.
Bu tezin proje safhasından sonuçlanmasına kadarki bütün süreçlerde bilimsel etiğe ve akademik kurallara özenle riayet edildiğini, tez içindeki bütün bilgilerin etik davranış ve akademik kurallar çerçevesinde elde edilerek sunulduğunu, ayrıca tez yazım kurallarına uygun olarak hazırlanan bu çalışmada başkalarının eserlerinden yararlanılması durumunda bilimsel kurallara uygun olarak atıf yapıldığını bildiririm.
Mohammed Saber Jami JAMI
Alâaddin Keykubat Kampüsü Selçuklu 42079
KONYA Telefon : (0 332) 241 05 21-22 Faks: (0 332) 241 05 24 e-posta: sosbilens@selcuk.edu.tr Elektronik Ağ: www.sosyalbil.selcuk.edu.tr
iii ACKNOWLEDGEMENT
I sincerely thank Almighty God for the successful completion of my academic journey by giving me the courage, strength and patience.
I would like to thank my supervisor Prof. Dr. Adnan ÇELİK, because he guided me, trusted me, taught me and helped me every time.
I would also like to thanks Prof. Dr. Tahir AKGEMCİ, Prof. Dr. Fehmi KARASİOĞLU, Prof. Dr. Orhan ÇOBAN, Assoc. Prof. Dr. Ali ERBAŞI and research Assistants, Hande ULUKAPI YILMAZ, Akın ABUL and Esra Kızıloğlu, they helped me and motivated me a lot.
Finally I would like to thank my lovely sister Ms. Vinos Saber Jami JAMI for all of her help.
iv
Dedicated to my beloved mother
v T. C.
SELÇUK ÜNİVERSİTESİ Sosyal Bilimler Enstitüsü Müdürlüğü
ÖZET
Örgütlerin farklılaşan yapısı ve değişen çalışan profili, liderlik kavramının bireylerin aynı anda farklı niteliklere sahip olmasını gerektiren çok boyutlu bir süreç olmasını gerektirmektedir. Özellikle yardım organizasyonlarında İşe yönelik ve insana yönelik liderlik özelliklerinin başarılı liderlik uygulamaları için gerekli olduğu ve karar verme sürecinde bu dengenin sağlıklı bir şekilde kurulması önem arz etmektedir.
Bu çalışmada Irak’taki uluslararası yardım organizasyonlarında görev alan yöneticilerin ve çalışanların görüşlerine göre liderlik stillerinin karar verme üzerindeki etkisi incelenmiştir. Tarama modeliyle gerçekleştirilen bu araştırmada Irak’ta hâlihazırda faaliyetlerine devam eden 14 yardım kuruluşunda görev yapmakta olan 430 çalışan araştırma kapsamına alınmıştır. Araştırmada verilerin toplanmasında üç boyuttan oluşan ‘Liderlik Stilleri Ölçeği’ (Etkileşimli, Dönüşümcü ve Serbestlik Tanıyan Liderlik) ve tek boyutlu ‘Karar Verme Ölçeği’ kullanılmıştır. Araştırmanın bulgularına göre Irak’ta faaliyette bulunan yardım kuruluşlarının çalışanlarının görüşlerine göre kendi örgütlerinin yöneticilerinin güçlü-yüksek dönüşümcü ve etkileşimli liderlik stillerine sahip oldukları buna karşın orta düzeyde serbestlik tanıyan bir liderlik stili sergiledikleri görülmüştür. Yine yardım organizasyonlarında çalışanlar yöneticilerin güçlü ve yüksek bir karar verme düzeyine sahip olduklarını ifade etmişlerdir. Araştırmada gerçekleştirilen korelasyon analizlerine göre karar verme ile tüm liderlik stilleri arasında anlamlı bir ilişki bulunmuştur. Bununla birlikte karar verme davranışı sadece dönüşümcü ve etkileşimli liderlik stilini anlamlı düzeyde yormaktadır.
ANAHTAR KELİMELER: Etkileşimli Liderlik, Dönüşümcü Liderlik, Tam
Serbestlik Tanıyan Liderlik, Karar Verme.
Öğre
n
cin
in
Adı Soyadı Mohammed Saber Jami JAMI Numarası 154227012008
Ana Bilim/ Bilim Dalı İşletme / Yönetim ve Organizasyon Programı Tezli Yüksek Lisans Doktora
vi T. C.
SELÇUK ÜNİVERSİTESİ Sosyal Bilimler Enstitüsü Müdürlüğü
SUMMARY
The divergent nature of organizations and the change of working profile require the concept of leadership to be a multidimensional process, which requires individuals to have different qualities at the same time. It is especially important for charity organizations that job-oriented and human-oriented leadership skills are essential for successful leadership practices and that this balance should be established in a healthy manner during the decision-making process.
This study examined the role of leadership styles in decision making according to the views of managers and employees in international charity organizations in Iraq. In this survey conducted by the screening model, 430 employees currently working in 14 charities organization in Iraq are included in the research. The 'Leadership Styles Scale' (Transactional, Transformational and lassies faire Leadership) and the one-dimensional 'Decision Making Scale' were used to collect data in the study. According to the findings of the research, the workers of Iraq's charity organizations found that the managers of their organizations had a moderately liberal leadership style, while they had strong-high transformational and transactional leadership styles. Employees in charity organizations also stated that managers have a strong and high level of decision-making. According to the correlation analysis performed in the research, a meaningful relationship was found between decision making and all leadership styles. Decision-making behavior, however, is only reasonably driven by the transformational and transactional leadership style.
KEY WORDS: Transactional Leadership, Transformational Leadership, Lassies
Faire Leadership, Decision Making.
Öğre
n
cin
in
Adı Soyadı Muhammed Saber Jami JAMI Numarası 154227012008
Ana Bilim / Bilim Dalı İşletme / Yönetim ve Organizasyon
Programı Tezli Yüksek Lisans Doktora
vii CONTENTS
BİLİMSEL ETİK SAYFASI ... i
TEZ KABUL FORMU ... ii
ACKNOWLEDGEMENT ... iii ÖZET ... v SUMMARY ... vi CONTENTS ... vii LIST OF TABLES ... x LIST OF FIGURES ... xi INTRODUCTION ... 1
FIRST SECTION: CONCEPT OF LEADERSHIP AND LEADERSHIP STYLES ... 4
1.1. Concept of Leadership ... 4
1.2. Importance of Leadership ... 5
1.3. History of Leadership ... 7
1.4. The Difference Between Leadership and Management ... 8
1.5. Gender Roles in Leadership ... 10
1.6. Leadership Theories ... 12
1.6.1. Trait Approach to Leadership ... 12
1.6.2. Behavioral Theories of Leadership ... 14
1.6.2.1 The Iowa Studies ... 15
1.6.2.2. The Ohio State Studies ... 16
1.6.2.3. The Michigan Studies ... 17
1.6.2.4. The Managerial Grid ... 18
1.6.3. Contingency Theories of Leadership ... 19
1.6.3.1 Fiedler’s Contingency Model ... 20
1.6.3.2. Hersey and Blanchard’s Situational Theory ... 22
1.6.3.3 House’s Path Goal Theory ... 24
1.6.3.4. Normative Decision Theory ... 25
1.7. Leadership Styles ... 26
1.7.1. Transactional Leadership ... 27
1.7.1.1. Dimensions of Transactional Leadership ... 29
viii
1.7.1.1.2. Active Management by Exception ... 29
1.7.1.1.3. Passive Management by Exception ... 29
1.7.2. Transformational Leadership ... 30
1.7.2.1. Dimensions of Transformational Leadership ... 31
1.7.2.1.1. Charisma (Idealized Influence): ... 31
1.7.2.1.2. Inspirational Motivation ... 32
1.7.2.1.3. Intellectual Stimulation ... 32
1.7.2.1.4. Individual Consideration ... 33
1.7.3. Laissez-Faire Leadership ... 33
1.7.4. Comparison Between Transactional and Transformational ... 35
SECOND SECTION: CONCEPT OF DECISION MAKING... 36
2.1. Concept of Decision Making ... 36
2.2. The Importance of Decision Making in Organizations ... 39
2.3. Types of Decision Making ... 41
2.3.1. Programmed Decisions ... 41
2.3.2. Non-Programmed Decisions ... 42
2.4. Decision Making Process and Steps ... 43
2.4.1. Identify or Define the Problem or Opportunity... 45
2.4.2. Identifying Limiting Factors ... 46
2.4.3. Develop Alternative ... 47
2.4.4. Choosing Best Alternative ... 47
2.4.5. Implementation the Decision ... 48
2.4.6. Evaluate the Decision ... 48
2.5. Models of Decision Making ... 49
2.5.1. Classical Model ... 49
2.5.2. Normative Model ... 50
2.5.3. Political Model ... 51
2.5.4. Intuitive or Intuition Model ... 52
2.5.5. Administrative Model ... 53
THIRD SECTION: THE IMPORTANCE OF LEADERSHIP STYLES IN DECISION MAKING PROCESS: A RESEARCH IN CHARITY ORGANIZATIONS IN IRAQ ... 54
3.1. Importance and Purpose of Research ... 54
ix
3.3. Data Collection Tool and Scales ... 57
3.3.1. Questionnaire Design ... 57
3.3.2. Sampling ... 58
3.4. Limitations of the Study ... 59
3.5. Research Hypothesis and Model ... 59
3.6. Validity and Reliability of the Study ... 60
3.7. Research Findings ... 61
3.7.1. Demographic Characteristics of the Participants ... 61
3.7.2. Standard Division and Means of Transactional Leadership ... 63
3.7.3. Standard Division and Means of Transformational Leadership ... 64
3.7.4. Standard Division and Means of Lassies Faire Leadership ... 65
3.7.5. Standard Division and Means of Decision Making ... 65
3.7.6. Correlation Analysis Results ... 66
3.7.7. Regression Analysis Results ... 67
3.7.8. Results of the Analysis of Diversity According to Demographic Characteristics ... 69
3.7.8.1. T-Test Analysis Results ... 69
3.7.8.2. ANOVA Analysis Results ... 70
CONCLUSION AND RECOMMANDATIONS ... 74
REFERENCES ... 77
APPENDIX ... 88
x LIST OF TABLES
Table-1.1. The Difference Between Leader’s Qualities and Manager’s Qualities ... 9
Table-1.2. Behavioral Theories of Leadership ... 14
Table-1.3. The Difference Between Transactional and Transformational ... 35
Table-2.1. The Difference Between Programmed and Non-Programmed Decisions 43 Table-3.1. Results of the Reliability Analysis of the Used Scales ... 60
Table-3.2. Gender ... 61
Table-3.3. Marital status ... 62
Table-3.4. Age ... 62
Table-3.5. Education ... 62
Table-3.6. Expireances ... 63
Table-3.7. Mean and Standard Deviation of Transactional Leadership ... 63
Table-3.8. Mean and Standard Deviation of Transformational Leadership ... 64
Table-3.9. Mean and Standard Deviation of Lassies Faire Leadership ... 65
Table-3.10. Mean and Standard Deviation of Decision Making ... 65
Table-3.11. Correlation Analysis Between Leadership Styles and Decision Making ... 66
Table-3.12. Regression Analysis Between Transactional and Decision Making ... 67
Table-3.13. Regression Analysis Between Transformational and Decision Making 68 Table-3.14. Regression Analysis Between Lassies Faire and Decision Making ... 68
Table-3.15. Decision Making According to Gender ... 69
Table-3.16. Decision Making According to Material State ... 70
Table-3.17. ANOVA Test Between Decisions Making in Terms of Age ... 70
Table-3.18. ANOVA Test Between Decisions Making in Terms of Education ... 71
Table-3.19. ANOVA Test Between Decisions Making in Terms of Experience ... 71
xi LIST OF FIGURES
Figure-1.1. The Managerial Grid ... 19
Figure-1.2. Findings From the Fiedler Model ... 22
Figure-1.3. Hersey and Blanchard’s Situational Theory ... 24
Figure-2.1. The Steps of Decision Making ... 45
1 INTRODUCTION
All of the theories and historical study indicates about important of leader in every situation for what are needs to be done in the smallest way while obtaining the good consequence and most outcomes. Leaders must have roles in decision making and helps other to making decision, because making decision is not easy in every situations it needs a leader in every organization.
Decisions are made by leaders – decisions about what to do, when to do it, with whom, why, how, for how long, resulting in what end and assuming what. Sometimes these decisions have positive results; sometimes negative. Sometimes decisions are made with others and sometimes alone, but always based on others. Strangely enough to make decisions that sometimes leads. Regardless of the actions of a person, a decision is always made, even if it is a decision not to decide anything (Middlebrook and Miltenberger, 2008: 1).
Leaders have the responsibility of making decisions through establishing an organized process. Leaders must decide at which level decisions are organized, and what extent they should allow employers to participate in the organizational decision-making process and have the best approach to making decisions (Abood and Thabet, 2017: 71).
Leaders have to know what types of decisions to make that may keep the interest of the stakeholders that are involved. If their leader doesn’t agree with the decisions they make in the organization followers may be not completely committed to a team. Employees with active participation are often taken into account in making decisions because they are the ones to apply and implement them. Leaders and managers have to create a climate that helps he employee participate by sharing their information and helping in decision making (Ejimabo, 2015: 2).
Not all the times the leaders have good and helpful knowledge and time; therefore they have to try to get more information and try to manage their time because decisions delaying may effect on the organization negatively. When leaders declare, they will accumulate all available information at different levels of the institution, as time permits. They need also be sure that their sources of knowledge and information are accurate and reliable, and that bad decisions may have bad
2
results and consequences; at the same time they have to realize that changes in the business environment can affect their decisions (Abood and Thabet, 2017: 71).
Leadership is the process of affecting others to agree and understand about things that need to be done and the way of doing it, and the process of facilitating collective and individual efforts to complete shared objectives. Leadership is the influence and the ability of influencing your subordinates, your bosses, and your peers in an organizational or work context. Without influencing, it is not possible to be a leader because by the effective indicates that is a leader (Goffee and Jones, 2007: 1).
Leadership can be also counted as a process rather than only a personal quality. The leadership process is characterized by the impact, not only of the leaders upon followers, but also as the interactive influence and relationship between the followers and the leaders (Silva, 2016: 3).
Transactional leadership focuses on staff’s external and basic demand, the relationship between subordinates and leaders is based on a contract. The transactional leader have to first of all validate and prove the relationship between reward and performance and then exchange it to an appropriate answer and return which may encourage followers and subordinates for improving performance or improving their skills and their knowledge (Wamy and Swamy, 2014: 58).
Transformational focuses on the connections are formed between followers and leaders. So in this style, leadership is considered as the process through which a person engages with others and has the ability to “form a connection” and this results increases morality and motivation in both leaders and followers (Uzohue et al, 2016: 20).
The laissez-faire style can be also known as the hands-off ̈ style. This is one that the manager provides little or no direction and helps the employees to have as much freedom as possible. This style may look simple and easy applying between subordinates and the leaders. Leaders who embrace by name of laissez-faire leadership style, will be accept that they have little control over the followers so that they have freedom to carry out the tasks they are assigned without direct supervision (Aunga and Masare, 2017: 44).
3
However, decision making is not only considering as taking the right compromises. Even it is a decision has deteriorated into work, and is a good intention. It is not a decision (Harvey, 2007: 3). Making decisions have relations with an individual’s autonomy and the essence of what is regarded as personhood, also it is a basic component in helping an individual of having control over life and engaging with the society (Pathare and Shields, 2012: 2). Decision making in business is about compromises or choices so that to meet business objectives. But is not just about choosing the right compromises or choices. ‘Unless a decision has ‘deteriorated into work’, is not a decision (Harvey, 2007: 3).
The process of choosing a logical selection among the options those are available. When attempting to make good decisions, a person must know the negatives and positives of each option, and consider the different alternatives. For influential decision making, an individual have to be capable to forecast the result of each option as well, and based on these items, try to find which option may be the best for a particular situation (Armesh, 2012: 1).
Leadership has influences on everything that is the best performance by their skills, and when a person has self-esteem and can be involved in a job, so leader’s capability of changing the employer’s ideas about involving her or him in jobs, that time making decisions will be easier because we will achieve self-esteem while there are problems or opportunity these have to decide also choice and choosing the best ways for solving the problems and decide on the opportunities.
This study includes three sections the first section is leadership and leadership styles like transactional, transformational and laissez-faire leadership. The second section is decision making, decision making process, steps and models of decision making have explained. In the last section the relationship between the styles of leadership like transactional, transformational, laissez faire leadership with decision making in charity organizations in Iraq explicated. And followed by conclusion and recommendations.
4 FIRST SECTION
CONCEPT OF LEADERSHIP AND LEADERSHIP STYLES
This section is based on the leadership process first, the definition of leadership concept and components were discussed and then the differences between leader and manager, gender in both, history of leadership and elements complementary to each other are explained and the variety in the literature taking leadership theories as a strategic background. Finally, indicated the three styles of leadership like transactional, transformational and lassies faire leadership.
1. 1. Concept of Leadership
Barnard Bass, in 1990 describes leadership as a “universal phenomenon. He has defined it as “an interaction between two members or more of a group that often involve a restructuring or structuring of the perception, situation and expectations of the members (Ver, 2009: 4).
Leaders are not born as leaders, leaders are made. This idea is accepted, however, so as to be a good leader, an individual have to have knowledge, commitment, patience, experience, and most importantly, the ability to negotiate and work together with others to reach their goals. So good leaders are born, not born. Good leadership can be improved or developed with a never-ending process of accumulation of education, training, self-study and appropriate experience (Amanchukwu et al, 2015: 6).
Leaders have to be knowledgeable and aware of the best ways. It is associated with making good leadership in making decisions in their establishments. They need to know that what types of decision they make have outcomes. These decisions influence their subordinates either negatively or positively, also all the organization. The success of the organizations may depend on any decisions their leaders make (Ejimabo, 2015: 2).
Leadership has a great role in the organization process. Leaders are not only able to control many of the levers of organization, but they have very potent role models for organizational members (Kramer and Staw, 2003: 6). Although leadership is the most extensively studied topic in the behavioral, social, and
5
management sciences, and there is no much consensus about the essential features of an effective leadership (Schneider and Smith, 2004: 17). Leadership is the process of affecting the others so that to achieve group or organizational goals. When a person makes all the decisions, that’s not leadership that’s boss (Williams, 2015: 289).
Leadership is also has defined as the process of affecting others in a way that increases their contribution to the realization of the goals of a group. This process is seen to involve the positive influence of a person on the behavior of many others and, that’s why, it is often viewed as the key to an efficient and effective organizations. If an exceptional person is able to marshal all the energies of others, logic dictates that effort expended in retaining, recruiting and understanding such a person the effort well be spent. For this reason ‘leadership training is considered as a big business. It is no surprise to find that leadership is widely considered ‘the most important thing in the realm of organizational behavior’ and also the most researched (Haslam, 2004: 40).
Good leaders will be make not will be born. If you have the power, desire and skills, you may become a good leader. Effective leaders go through a never ending process of training, experience, self-study, and education. Organizations are in the need of strong management and leadership for optimal effectiveness. We have to leaders today to have the ability to challenge the create visions and status quo of the future, and making inspiration for organizational members to have the desire to obtain the visions. We need leaders to formulate detailed plans as well as creating efficient organizational structures, and oversee the operations that are day-to-day (Robbins and Judge, 2013: 368).
1.2. The Importance of Leadership
The importance of leadership is mainly judged in terms of its influence on the effectiveness of an entity that is led. According to Bill George, leading is the ability to help superior results sustain over a period of time’. However, it is a more widely pervasive phenomenon than this (Adams, 2011: 27). Leadership is important; actually, it is important for guiding the organization toward good objectives and applying other management functions (Hill and Mcshane, 2008: 6).
6
Leadership is the capability of corresponding to change. Exerting Leadership is organizing a new value or worth with vision. Leadership also requires mentoring new leaders and training them for the next generation (Ueno, 2001: 18). Leadership is a measure of the skills and experience to successfully bring out or emphasize extra performance from others, and the compliance with the acceptance of authority measured the perspective the individual has about regulations and rules (Anderson et al, 2005: 116). Leaders are important in the companies. Their role is to “help and direct others in performing their task, they create culture of efficiency” and they maintain stability. On the other hand, leaders can create vision and strategy. Leaders help others focus on people and to grow; motivate and inspire, they create a change and a culture of integrity (Elhajj, 2013: 2).
Over time, which have a large variety of theories pertaining to leadership importance roles in all group endeavors that have to lead to the development (Levine, 2000: 5). Leadership is important in the procurement context because, within an organization, procurement concerns and touches many aspects of the overall organizational operation. An individual should learn everything about an organization by watching what it wants and what it needs, when it buys, what it buys, what it buys and how it does with what it buys. Conversely, poor purchasing performance causes poor performance by the organization overall. Money spent on bad procurement process and decision destroys organizational effectiveness. Thus, the importance of leadership and procurement is difficult to exaggerate (Bauld and Mcguinness, 2010: 8).
Leadership is a special type of interpersonal relationship selects values, motivates, coaches, build like ideal models or typologies (Mironescu, 2013: 249).
Some benefits of good leadership are as follows (Rtu, 2000: 5): Can decrease employee dissatisfaction
Encouraging effective deputation or delegation Making team spirit
Helping in developing self-confidence and skills in the group
7
The leader helps in guiding the action of the employee in accomplishing the tasks. A leader who is good and experienced creates confidence, motivates his subordinates and increases the morale of the workers. Good leadership is a condition for the success of any business, the business leaders are the vital resources of any enterprise (Rtu, 2000: 5).
In the below following points show the importance of leadership (Madah, 2016: 254):
Leadership is the process of affecting the actions and tasks of a group or an individual towards the goal fulfillment.
An effective leader helps in motivating his subordinates for a better level of performance.
Leadership increases team- work and team- spirit which is basic for the success of any establishment.
Leadership is a basic aid to authority. A leadership helps in the influential use of formal authority.
Leadership helps in creating confidence in the followers through giving them advice and guidance.
1.3. The History of Leadership
The same as other topics leader has a history of general researches and studies, so we can describe its’ historical side briefly and give some definitions based on the dates and years, and described the Greek, China and Egypt’s leadership.
In antiquity, it is more leadership and well-known concepts, sometimes from various mythological gods. It has been associated. The communication of the leaders is Hermes, Athena's ability to develop strategy and the power of Zeus appears to be associated in Egypt, similar leadership understanding in parallel with god-king understanding shows. To the concept of leadership in ancient China is known to be found (Şahne and Şar, 2015: 110).
The main focus is on leader as a hero that was described by Thomas Carlyle in 1840. And Herbert Spencer (a fellow Victorian) later expressed a contrasting
8
view which he says that the heroic leaders are the commodity or product of their time and prevailing the social conditions (Early, 2016: 1).
Some definitions of leadership which are based on history (Eckmann, 2001: 1):
The directive and innovator force of morale (Munson, 1921).
Leadership is a mutual stimulation process that controls human energy for the sake of a common purpose with the successful interaction of the respective individual differences (Pigors, 1935).
The process by which factor involves a subclass to behave in a desired manner (Bennis, 1959).
Presence of a specific effect relationship between two or more people (Hollander & Julian, 1969).
To transform the viewers, to create visions of the goals that can be achieved, and to express ways of achieving these goals for followers (Bass, 1985). The process of affecting an organized group to achieve its goals (Roach and
Rehling, 1984).
The task of the Leader is to create conditions for the team to be effective. (Ginnett, 1996).
Leadership is the thing that wins battles (Patton, 1940).
Leadership is an effective relationship between followers and leaders seeking real changes that reflect mutual goals (1991).
1.4. The Difference Between Leadership and Management
Hundreds of articles and books have published in recent the years which talk about the differences between that two topics leadership and management. Good management is essential and basic in organizations; good managers should be leaders too, because the distinctive qualities that are associated with management and leadership provide different strength for the organization. As shown in table-1.1. Leadership and management reflect two different sets of skills and qualities that frequently used within a single individual. An individual person can have more than one set of quality than another one, but ideally a manager enhances a balance of both leader and manager quality (Daft, 2011: 428).
9
Not all managers are leader; not all leaders are manager. According to an observer, “Management is about the way of coping with complexity. Good management brings about consistency and order by drawing up formal plans, monitoring results against the plans, and designing rigid organizational structures. While leaders exercise the impacts in a more informal and not structured manner, managers have formal decision-making positions in the organization. Management jobs may provide the chances for leadership, and managers are likely to be more effective through combining formal authority for making decisions and allocate resources with the ability of motivating the subordinates (Mejia and Balkin, 2012: 351). Some leaders are very good managers while some managers are very good leaders (Bertocci, 2009: 9).
Another distinction between leadership and management is management enhances problem solving, stability and order within the existing organizational systems and structures. Leadership also promotes vision, change and creativity. A leader brings you to a new place, but “a manager takes care of where you are. Leadership means questioning the status quo so that it is outdated, socially irresponsible norms can be replaced to meet some new challenges. , good leadership is necessary to move the organization into the future, while A good management is necessary to help the organization meet needed commitments (Daft, 2008: 493).
Table-1.1. The Difference Between Leader’s Qualities and Manager’s Qualities
Leaders qualities Managers qualities
Making soul Making mind
Visionary Rational
Passionately Consistently
Creative Persistent
Flexible Solving problem
Inspiring Tough-minded
Innovative Analytical
Courageous Structured
Imaginative Deliberate
Experimental Authoritative
Change the initiates Stabilizing Power of personal Power of position
Reference: Daft, 2008: 494.
Leadership and management reflect two different sets of skills and qualities are that frequently overlap within one individual. An individual might have more of
10
than a set of qualities than others, but ideally a manager have to set a balance of both manager and leader qualities (Daft, 2008: 494). Leaders at the same can be a manager or both, but good managers every time are a leader. Leadership and management are related; leaders without management will be weak and cannot be solve the organizational problems perfectly.
1.5. Gender s Roles in Leadership
Gender has impacts on leadership in many aspects. Whether women and men lead in a different ways, is still a highly debated issue. However, the major impact of gender on leadership is that, women usually are presumed to be less worthy and less competent to hold leadership positions. Leadership style depends on a various number of factors, where gender difference is one of them. Leaders adapt to expectations based on people’s categorization of them as female or male (Górska, 2016: 138).
A common stereotype in establishments is those which women are, nurturing, supportive and skill at achieving good relations with coworkers. The male counterpart to the stereotype of the relationship-oriented woman is the notion that men focus more on getting the job done and more directive—or we can say that, men are task-oriented. Judging from these stereotypes, one may expect that gender also has impact on leadership, for example, male leaders engage in initiating- structure behaviors more than women but, female leaders engage in more consideration behaviors than men (George and Jones, 2012: 359).
An argument suggests that men and women have different behavior as leaders it is referred to as the structural–cultural model of leader behavior. This model tells that because women sometimes experience lack of respect, power, they have to behave in a different way from men so as to be effective leaders. For example, followers expect different behaviors types from women but not from men. Thus, a female leader who may act aggressively will be saw or viewed as mean-spirited or very emotional, whereas a man who is behaving in the same way might be thought of as confident, passionate or strong. Women are also pressured to have certain gender-role stereotypes, such as being interpersonally nurturing and oriented more than men. In essence, women are also required to find a way of leading while making contacts
11
comfortable by showing behavior consistent with gender-role stereotypes. Women who do this are not necessarily less effective leaders as we discussed above, the effectiveness of any specific leader behaviors will depend on the situational factors. So when the situation calls for a leader that emphasizes caring and concern for followers, women will be showing nurturing behavior and strong interpersonal skills are showing themselves effective and perhaps will be better leaders than men (Hitt et al, 2011: 31). Another difference that is discussed in some sources is men have a tendency to be more autocratic whereas that woman may be slightly more democratic in making decisions. However, much more work is necessary to be done so as to understand the dynamics of leadership and age better (Ebert and Griffin, 2013: 229).
There are some studies about gender in leadership styles: A study found that women try to adopt a more transformational and participative and democratic leadership style whereas men were observed to adopt more punishment-oriented and autocratic leadership styles. Some studies also found that the leadership style are adopted by women proves more to be beneficial for organizational effectiveness, mainly when integrating the system of motivation, expectation, reward and enthusiasm among others (Zheng, 2015: 2).
As for other differences in leadership styles, a review that is influential which are about 162 studies revealed that women revealed a bit more democratic/participative and a bit less directive/autocratic styles leadership styles and a bit than did their male counterparts (Patel, 2013: 18). Men were more likely to exhibit the punishments element of transactional leadership, as well as the laissez-faire style, but women are more likely to indicate that transformational leadership and give rewards. Moreover, women are collaborative and cooperative, less hierarchical, and more willing to increase the self-esteem of others. This finding shows that women are likely to fare better with easier in way of style in authentic. According to McKinsey (2009) his study they have found more than two results. He has tested over 800 business leaders on what styles would be most effectiveness. They found which types of leadership were most beneficial for corporate performance. They have found, women used the beneficial styles more than men sometimes. Those were the types of rewards and expectations, participative and inspirational decision-making (Patel, 2013: 18).
12 1.6. Leadership Theories
Leadership is considered as a complicated notion and various numbers of theories have been used to explain it. These theories are summarized and have developed over the years and they explore a number of different facets of leadership behavior and leadership. They also complete each other in many ways and altogether they help to get an understanding which is comprehensive of what the process of leadership is about (Armstrong and Taylor, 2014: 642).
The leadership subjects have studied for hundreds of times and include a number of successions of theories. The earliest theories focus on the behavior, character of successful leaders and personality. The old theories focus on what leaders are doing rather than talking about their behavior, needing to have certain innate traits and qualities (FME, 2015: 4).
The theories of leadership are described below: Behavioral Theories of Leadership, Trait Approach to Leadership, The Ohio State Studies, The Iowa Studies, The Managerial Grid, Contingency Theories of Leadership, University of Michigan Studies, Fiedler’s Contingency Model, House’s Path Goal Theory, Leadership Continuum Theory, Hersey and Blanchard’s Situational Theory, Normative Decision Theory (Şimşek, Çelik and Akgemci, 2016: 273).
1.6.1. Trait Approach to Leadership
For more than a century scholars tried to describe the key characteristics that separate leaders from non-leaders. Trait perspectives also suggest that traits play a vital role in making differences between non-leaders and leaders, that leader must have the “right stuff.” The great person-trait approach reflects the trials to adopt traits that separate leaders from non-leaders too (Schermerhorn et al, 2010: 306).
Trait approaches or trait theories are one of the systematic endeavors that the study of leadership concept since early 20th century up to late 1940s. It is the only trait approach that talks about the concept of leadership that it is linked to personal qualities and it is innate. In spite of that there are lots of weaknesses in the popular trait theories, they also provide worthy valuable and useful information about the concepts of leadership and leader which will be proved further important not only on individual level but also on organizational level. Individuals especially leaders
13
can show their own specific set of traits through various popular questionnaires and tests which let themselves understand and have awareness about their weaknesses, strength and status as per the previews of their management and colleagues. In this way, leaders can assess that how they can strengthen their position in their organization and where they actually stand in their organizations. Traits theories and approaches are the benchmarks for the personalities that want to be become a successful leader (Kanodia and Sacher, 2016: 146).
This theory of leadership, which essentially proposes that the success of a leader could be attributed only to their physical characteristics and personality without regard to their manifest behavior in any given situation (Nicholson et al, 2005: 207).
The theory which tries to show specific characteristics (Personality, mentality and physical) is linked with the success of the leadership. Leadership focuses on identifying physical, intellectual, emotional and other personal traits of effective leaders. This approach suggested that a different number of individual qualities of effective leaders are found. To a large extent, support component test individuals in the scientific management of personality theory of leadership. In addition to examining them through staff testing, the characteristics of leaders were examined through the selection of colleagues and observation of behavior in the group's attitudes by observers, by screening or classification and by analyzing biographical data (Gibson et al, 2009: 316).
Approach to personality in leadership is not a cure. It often focuses on leaders who do not focus on attitudes or followers. The Attitude approach emphasizes that effective leadership speaks of leaders with specific characteristics. The approach inherent in the feature approach indicates that institutions will perform better if staff are assigned specific leadership qualities in certain leadership positions. In other words, selecting the right people will lead to the development of organizational performance (Gomez, 2011: 46).
14 1.6.2. Behavioral Theories of Leadership
In the previous paragraphs you’ve read about whom leaders are. But showing traits alone are not enough for making a leader successful. They are, however, a precondition for success. After all it’s difficult to suggest a successful leader that which lacks most of these qualities truly. Leaders who have the important traits (or most of them) have to take actions then which motivate people to achieve group or organizational goals (Williams, 2015: 292). We are going to talk about the four studies like the Ohio state studies, Iowa studies, university of Michigan studies, Managerial Grid. The four main behavior studies are summarized in the below.
Table-1.2. Behavioral Theories of Leadership
Styles Behavioral diminution Conclusion
University of Lowa
Democratic style: Includes,
subordinates, entrust power authority to other and encouraging participation.
Democratic style of leadership was more effective, although later studies identified different consequence or results. Autocratic style: Dictating work
methods, limiting participation and centralizing decision making.
Laissez-faire style: Give the freedom to group that makes decisions and completes work
University of Ohio State
Consideration: Entity considerate of followers’ feelings and ideas.
High–high leader (high in initiating structure, high in consideration) satisfaction and fulfilled high
subordinate performance, but not in all situations. Initiating structure: Work relationships
to meet job goals and structuring work. University of
Michigan
Employee oriented: Emphasizing on interpersonal relationships and taking care of employees’ needed things
Employee-oriented leaders were associated with high job satisfaction and group productivity.
Production oriented:
Task aspects of job or emphasized technical
Managerial Grid Concern for people: Measured leader’s by discovered for subordinates on a scale of 1 to 9 (low to high)
Leaders performed best with a 9, 9 style (high concern for production and high concern for people). Concern for production: Measured
leader’s by discovered for getting job done on a scale 1 to 9 (low to high) Reference: Robbins and Coulter, 2012: 462.
Behavioral theory of leadership is based upon the belief which great leaders are made and not born mostly. This leadership theory focuses on the actions of
15
leaders, not on mental qualities or internal states, people can learn to become leaders through teaching and observation (Wagner, 2008: 1).
Behavioral theories of leadership discuss about the behaviors that differentiate between effective leaders and ineffective leaders. Scientists suggested that the behavioral theories approach may provide more definitive answers about the nature of leadership than what the trait theories did. Studies on thousands of leadership behaviors were reduced into two main aspects: task-oriented and people oriented behaviors (Robbins et al, 2013: 219).
1.6.2.1 The Iowa Studies
In the 1930s, before the time when behavioral theory became popular, Kurt Lewin links conducted studies at the university of Iowa that concentrated most on the leadership style of any manager. Their studies introduced three basic leadership styles:
1. Autocratic leadership style. The autocratic leader tells employees what to do and makes decisions, and supervises workers closely (Miner, 2010: 70).
2. Democratic leadership style. The democratic leaders motivate participation in decisions; does not closely supervise employees and works with employees to determine what to do (Miner, 2010: 70).
3. Laissez-faire style leader help the group makes their decisions and complete the work in whatever way they saw it fit (Robbins and coulter, 2012: 462).
The Iowa studies contributed to the behavioral movement and also led to an era in which it’s behavioral rather than trait research. When there was a great shift in paradigm from management to leadership, the leadership style of effective managers was not autocratic anymore, but it was democratic more (Miner, 2010: 70).
Studies conducted by Ronald Lippitt and Ralph K. White under the general direction of Kurt Lewin at the university of Iowa have a lasting impact. Lewin is being discovered as the father of the group dynamics and also as an important cognitive theorist. In the initial studies, a club which was for hobbies of r ten-year-old boys was formed. Each club was used for all three different styles of
16
authoritarian, laissez-faire and democratic leadership. The authoritarian leader was too directive and did not allow any participation. This leader wanted to give individual attention when criticizing and praising, but attempted to be not personal or friendly rather than openly hostile. The democratic leader encouraged decision making and group discussion. This leader also tried to be “objective” in giving criticism or praise and to be one of the groups in spirit. Laissez-faire leader has given the group full freedom; however, this leader did not give leadership. Unfortunately, the effects of leadership styles on productivity have been indirectly examined. Experiments are primarily designed to examine aggressive behavior patterns. However, an important by-product is the insight that is produced by a group's productive behavior. For example, researchers have discovered that men exposed to autocratic leaders react with one of two ways: either obvious or aggressive. Both were aggressive and indifferent, reacting to the disappointment that the autocratic leader had caused. The researchers also argue that unregistered groups exhibit too much aggression when a transition is made in a more liberal leadership atmosphere or when the autocratic leader leaves the room. The Laissez-faire leadership climate unfortunately made many aggressive actions from the group (Luthans, 2011: 416).
1.6.2.2. The Ohio State Studies
The Ohio State Studies, initiated in 1945 and continuing till the 1950s, showed a point of turning in the investigation of leadership behaviors. Despite that there were early pressure to look simply case studies of successful leadership the studies of Ohio State have taken a quantitative approach to investigating leadership. This study was criticized for their lack of theory development, but they were successful in developing an approach which was multidimensional to leadership. Central to these studies were two dimensions of leadership behavior: consideration and initiating structure (Kane, 2014: 10):
1. Consideration: Consideration which refers to leader–subordinate relations and fellowship
2. Initiating structure: Initiating structure which refers to outlining tasks, developing goals and setting expectations.
17
These two factors have been found in a large number of studies that include many contexts and driving attitudes. The researchers carefully focused on the fact that the studies show only how leaders perform their leadership functions. The structure of looking and beginning is very similar to that of the veteran military commanders, who are worrying and important to the welfare of the soldiers. In simple terms, Ohio factors are recognition of individual needs, relationships, considerations, or orientation towards a goal or task (Luthans, 2011: 417).
The two dimensions are different and separate from one another. Definitely Ohio studies have quality to study leadership. They are the first to emphasize the importance of human dimensions and tasks in assessing leadership. This two-dimensional approach has narrowed the gap between the focus on human relations and the rigorous orientation of the scientific management movement that was then famous (Luthans, 2011: 417).
1.6.2.3. The Michigan Studies
The Michigan research program revealed two types of leadership behaviors: production orientation and employee orientation. Production orientation is based on leadership behaviors that emphasize production and technical aspects as a function. Of this guiding factor appears as a means of accomplishing the work. Production orientation parallels the set structure that begins and is found in Ohio studies. The employee's orientation is the behavior of leaders who approach subordinates with a great focus on human relations. They appreciate the personality of the worker, care about the workers as human beings, and give special attention or personal needs. Employee orientation is the same with a set of behaviors that have been identified in the Ohio studies (BA, 2016: 73).
1. Employee-oriented Leader
Emphasizing on the relations which are interpersonal; taking a personal interest in the things employees need and accepting individual differences among all the members (Hall, 2007: 9).
2. Production-oriented Leader
18 1.6.2.4. The Managerial Grid
The Leadership Grid is a way of testing leadership styles and evaluating them. The general aim of an organization that uses the Grid is to educate its managers by using organizational development techniques; so they are more conciderated about production and people for 9.9 styles (Griffin and Moorhead, 2014: 330).
The behavioral dimensions of these earlier leadership studies have provided the basis for improving a two-dimensional grid for assessing driving styles. This administrative network used the behavioral dimensions of "attention to production" (the horizontal part of the grid) and attention to people "(the vertical part of the grid) and evaluated the leader's use of these behaviors, classifying them on a scale from 1 (low) to 9 (high) The grid includes 81 potential categories in which the leader behavior pattern may decline, but only five patterns are named, or task management (9.1 or a major concern for production, low concern for people), poor management (1.1 or low concern for production, low concern for people), moderate road management (5.5 or average concern for production), team management (9,9 or a major concern for production, great concern for people). Rural club management (1.9 or low concern for production, great concern for people). Of these five methods, the researchers found that managers improved and performed better when using pattern 9.9. Unfortunately, the grid did not provide any answers to the question of what made the manager a successful leader. Provided a framework for the perception of the leadership style only. In fact, there is little objective evidence to support that in all cases, Method 9.9 is more effective. The leading researchers conclude that the assumption of leadership success involves something more complex than separating some of the preferred behaviors or leadership traits. They began to consider the situational effects. Specifically, any leadership methods may be appropriate in different situations and what if these positions are different? (Robbins and Coulter, 2012: 462). In the below described the managerial grid in figure-1.1. There are five point have indicated in the below figure like team management at the top, impoverished management at the low, middle of the road management at the middle and followed by country club management and authority compliance.
19
Figure-1.1. The Managerial Grid
Reference: Griffin and Moorhead, 2014: 330.
1.6.3. Contingency Theories of Leadership
Contingency theory that has a great history, it goes back to 1951 and grown up slowly (Miner, 2005: 232). The subject in early approaches for understanding leadership was needed to explain about traits or behaviors which successful leaders had in common. A set of characteristics proved to be elusive and common, however. Researchers were completely disappointed by the falling of consistent support for their conclusions and results. As a result, researches began to pay attention most to what style of leadership have a great impact in a particular situation. Contingency or National theories examine the fit between the leader and the situation and provide guidelines for managers to achieve this influential fit. The theorists believe that the leadership styles are chosen by managers based on leadership situations. Manager fixes their decision-making. Orientation and motivational approaches are based upon a unique combination of factors in their situations: types of work, personal preferences and upper-level management’s influences, characteristics of employees, and organizational structures (Madah, 2015: 266).
20
Fiedler was a good response to the research results, those generated by him and those generated by others. Another differentiation characteristic is that contingency theory has been made around a measurement process (Miner, 2005: 232). The following sections describe the four most well-known situational theories:
1.6.3.1 Fiedler’s Contingency Model
Fred Fiedler was the one who advanced the first comprehensive contingency model for leadership. The Fiedler contingency model tells that effective group performance depends on the right match between the degree to which the situation gives the leader control and the leader’s style (Robbins and Judge, 2013: 374).
In that theory judged the different situations make or create different style of leadership needs for managers (Madah, 2015: 266).
Based on Fiedler’s model a situation is prosperous to the leader if the leader is desired or preferred by the group; if the task is programmed; and if the leader has power and legitimacy by virtue of their position. The leader that is relations oriented is effective more in situations between the two extremes. The task oriented leader is most likely to be influential in situations that are most unfavorable or most favorable to her or him. Fiedler’s theory and research assumes that instead of improving adaptable leaders, the leader have to be placed in situations that suits best to them, and refusing that, situations must be made to suit a leader’s orientation (APSC, 2011: 9).
Fiedler’s contingency model: A model designed to diagnose whether a leader is relationship oriented or task-oriented or and match leader style to the situation (Daft, 2011: 8).
Fiedler has identified three situational or contingency dimensions:
1. Leader–member relations are the degree of respect, trust and confidence that members have them in their leader (Robbins and Judge, 2013: 373).
2. Task structure is the highly structured job, fairly unstructured or between both of them? The spelling out in detail (favorable) of what is needed of subordinates that impacts task structure (Madah, 2016: 264).
21
3. Position power is the influence degree that a leader has over power variables such as firing, hiring, promotions, discipline and salary increases (Robbins and Judge, 2013: 373).
The next step in the Fiedler model is to assess the situation according to these contingency variables. Matching the combination of three contingency variables with the definitions discussed about them, eight situational variables are created (Bauer, 2014: 29).
When combining three dimensions which are contingency here it yields eight possible situations that leaders may find themselves (Figure-1.2). The Fiedler model shows matching an individual’s LPC score and the eight situations so as to obtain maximum leadership effectiveness. Fiedler founded that relationship oriented leaders, however, perform better in moderately favorable situations—categories IV, V, and VI. In recent times, task-oriented leaders perform better in situations very favorable. But when faced with a category I, II, III, VII, or VIII situation, task-oriented leaders perform better. Fiedler has reduced these eight situations into only three. Recently he says that relationship-oriented leaders perform better in situations that are moderate control. While task-oriented leaders perform best in situations of low and high control. How should you apply Fiedler’s findings? You may match leaders—according to their LPC scores—with the kind of situation—according to leader– member relationships, position power and task structure, —for which they are best suited. But we should consider that Fiedler views an individual’s leadership style as fixed. That’s why there are two ways to upgrade leader effectiveness only. First, The first alternative is changing the situation to be good to the leader by restructuring tasks or decreasing or increasing the power of leader to control factors such as promotions, disciplinary actions and salary increases, and the second one is that you are able to swap the leader to fit the situation—as when a baseball manager puts a left- or right handed pitcher into the game and depend on the hitter. If a group situation rates highly unfavorable but is currently led by a relationship-oriented manager, then the performance of the group could be developed under a manager that is task-oriented (Robbins and Judge, 2013: 374).
22 Figure-1.2. Findings From the Fiedler Model
Reference: Robbins and Judge, 2013: 374.
1.6.3.2. Hersey and Blanchard’s Situational Theory
This theory was first announced by Dr. Paul Hersey, a professor and an author of "The Situational Leader," and Ken Blanchard, author of the best- selling "One-Minute Manager," among others (Mind, 2014: 2).
The Hersey and Blanchard model of situational is leadership based on the amount of socio supporting emotion (relationship behavior) and amount of direction (task behavior) the leaders should provide the level of the maturity and the situations of the followers (Madah, 2015: 267).
Task behavior deals with the extent to that the leader contacts in spelling out the responsibilities and duties to a group or individual or group. This behavior includes telling people what do, when to do it, how to do it, and where to do it (Madah, 2015: 267).
In task behavior, the leader communicates in one way. But on the other hand Relationship behavior is the extent to which the leader communicates in two- way or more than to ways of communications. This behavior includes, facilitating, to
23
supporting and listening employees. Maturity is the willingness and ability of the person to be responsible for directing his behavior. Employees try to obtain different degrees of maturity, depending on the specific functions, tasks or goals they are trying to achieve. To determine the appropriate driving style to use in a given situation, the leader must first determine his / her maturity levels in relation to the specific assignment or task. When employee maturity levels increase, the leader must begin to reduce the amount of task behavior and increase the behavior of the relationship until his followers reach the desired maturity levels (Madah, 2015: 267). When maturity levels are rated, the manager can identify appropriate driving styles: news, participation, sales and authorization.
A “selling” style (S2) is best for low-to-moderate follower being ready (R2).
This style shows both support and task direction for people that are not able but trying to take task responsibility; it involves integrating a directive approach with explanation and motivations so as to maintain enthusiasm.
A “telling” style (S1) is counted as the best style for low follower readiness
(R1). The direction explained by this style tells about the roles for people that are not able and also not willing to take responsibility themselves; it cancels any insecurity about the task that should be done.
A “participating” style (S3) is counted as the best style for moderate-to-high
follower readiness (R3). Employee in this style are able but not willing , it also requires a supportive behavior so as to enhance their motivation; through allowing followers to share in decision making, this style helps in increasing the desire to do a task.
A “delegating” style (S4) is best for high readiness (R4). This style render
little in terms of support and direction for the task which is at hand; it helps able and willing followers to be able to take responsibility for what is necessary to be done (Schermerhorn et al, 2010: 315). Are described in the figure-1.3.
24 Figure-1.3. Hersey and Blanchard’s Situational Theory
Reference: Schermerhorn et al, 2010: 316.
1.6.3.3 House’s Path Goal Theory
Another well-known approach that talks about the situational contingencies is the one which was developed by Robert House based on the other’s earlier work (Kessler, 2013: 151). House’s path-goal view of leadership has its roots in expecting the model of motivation. The term “path-goal” can be used because of its focus on how a leader influences on subordinates’ perceptions of both work goals and personal goals, and the links or paths, found between these two sets of goals (Schermerhorn et al, 2010: 313).
The theory of contingency is based on the theory of impulse expectation which relates to several leadership styles for specific situations and employee situational situations (Mcshane and Glinow, 2010: 365).
25
The theory of "goal path" states that influential leaders make sure that employees who perform their duties receive more valuable rewards than those who perform poorly. Effective leaders provide the support, information and other resources needed to assist staff in completing their tasks. In other words, the goal-oriented theory has improved the leadership of the servants. Commanders do not show leadership as a center of authority. Instead, they are supervisors, trainers and facilitators. Leaders are committed to understanding the needs of employees and to making their work easier and easier. Leaders ask servants, "How can I help you?" Rather than expecting the staff to serve them (Mcshane and Glinow, 2010: 365).
This theory puts shade on how the subordinates are influenced by the leader in terms of performance and satisfaction. The importance of the leader in reinforcing the followers should include clarification of the performance goals. Path-goal theory classifies four several leadership styles (Karamustafa, 2016: 25):
1. Supportive Leadership: Considers the needs and desires of the subordinates. It is easy to communicate with, equal to everyone and it also behaves friendly
2. Directive Leadership: Introduces the expectations from the followers, then it guides them with technical information.
3. Participative Leadership: The ideas and opinions of the followers are taken into consideration seriously.
4. Achievement Oriented Leadership: Targets which are challenging are set and the followers are shown full trust in obtaining the targets. Full performance is expected from them.
1.6.3.4. Normative Decision Theory
Normative decision process theory comes in two versions the first one is Vroom and Yetton 1973; and second one is Vroom and Jago 1988 (Miner, 2005: 73). There are four major decision procedures in this model, analyzing how the leader’s behavior influences the quality of the decision (increases in line with the participation of the subordinates), and acceptance of the decision (commitment of
26
decision-making followers), subordinates or followers satisfaction with the decision making and the development or upgrading of participant skills (Yukl, 2010: 140).
Four main decision processes are described in the below (Yukl, 2010: 140): 1. Autocratic decision: The manager is the only person who makes decision; the
others do not have impact or involvement in this situation
2. Consultation: Other people’s opinions are taken into consideration but the last decision goes back to the manager
3. Joint decision: The decision is taken together with the participation of the others, and the influence of the parties on the decision is equal.
4. Delegation: The manager authorizes the group or the individual in the decision making process. The managers also define the limits.
1.7. Leadership Styles
The term "leadership" in organizations that refer to the methods used by older leaders in their daily contact with their staff? It includes many dimensions, such as values, elements, criteria, issues or rules that are observed in the work environment and have an impact on staff, emotions, performance and behavior (Girma, 2016: 36). Leaders can be defined as group members that exercise the impact over the Group (Hartel et al, 2005: 320).
Leadership is considered as an activity which has influence on the people who want to reach the success point in an organization. Leadership is the ability of a leader to take control, influencing, leading the feelings behaviors or thoughts of others to reach the goals that are set (Chandra and Priyono, 2016: 132).
Today’s organizations need successful leaders who have impact and are able to understand the complexities of the rapidly developing global environment. If the task is well structured and there is a good relationship between the employees and the leader, then effectiveness will be more on the part of the employees (Wamy and Swamy, 2014: 57).
Leadership style is an important part which helps any organization to succeed due to its impacts on the employees’ performance. In a constantly changing economic, technological environment, and social leadership is a vital assign of
