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Effect of Leadership Style On Working Culture and Employees Motivation
Effect of Leadership Style On Working Culture and Employees Motivation
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UCP Business School, Faculty of Management Studies, UCP, Pakistan. Corresponding author Email: [email protected]
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Another significant aspect of leading is motivating employees. behavior. This questionnaire is multiple-choice based and contains
Academics often talk about the value of an enterprise's human 183 questions. The candidate's resulting profile is discussed with a
capital, by which they mean the skills and motivations of its candidate through an interview and analyzed by an occupational
employees. Rose Marie Bravo recognized the importance of psychologist.
human capital when she took on Burberry's top management Bureaucracy theory
position. In her tenure, she engineered a remarkable turnaround, Bureaucracy's theory of Max Weber supports the study conducted
leading to Burberry's complete transformation into a high-end and provides evidence in this regard. (Weber, 1968, p.215 ff.). this
fashion brand. Today, it is the need for an organization to have an theory revolves around the idea of authority. Max Weber has
effective leader capable enough to cope with the challenges and contributed a lot in leadership styles. Each MAX WEBER
intrications of the rapidly changing global environment. To ensure leadership authority correlates with a brand of operative leadership
an organization's survival in a complex, dynamic, and challenging in contemporary society. Traditional leadership style by Weber: in
environment. A leader must keep on learning and be flexible 1947, Max weber was the one to describe the conventional
enough to adapt him or herself according to the situation. He leadership style along with charismatic and bureaucratic. In the
should be highly responsible for the task of subordinates (Ali, traditional leadership style, power is bestowed on the leader just to
Norlina et al, 2015). From the literature, the traits of many keep the traditions of the past. Without any struggle and mark, a
influencing leaders in history could be studied. Some examples of leader can come into possession of authority, i.e., kings, dictators,
strong leaders include Martin Luther King, Steve Jobs, Winston and some business leaders (Weber, 1974). Some of the features for
Churchill, Napoleon, and Imran khan. traditional authority are;
Leadership styles used in the study ✓ Leaders are the sole person to exercise control and power in the
Traditional leadership style organization because of his position.
There are many theories on a traditional leadership style that ✓ Employees follow their leader due to the attachment with their
investigates the desired characteristics of a leader like great man traditions and personal loyalty to a position.
theory, trait theory approach, Ohio, and Michigan state studies in ✓ Employees are promoted based on nepotism, racism, and
1960, which focus on leaders' behaviors and the last one on favoritism.
contingency approach; least preferred co-worker theory. ✓ Bureaucracy and red-tapism are high in the organization.
Traditional leadership style focuses. By going through the Rational-legal leadership style
literature, the study focused on the Trait theory approach for This type of authority is clearly and implicitly embedded in-laws.
traditional leadership style. It is one of the earliest theories on Power must not be exercised on employees merely based on
leadership and is often tied to great man theory proposed by leader position and capacity but because of the legitimacy and
Thomas Carlyle. It states that leaders are 'born not made' competence of the procedures and laws incorporated by that
(Leadership is more likely to be in-built rather than learned from individual. Contemporary societies rely on this sort of leadership
experience. Carlyle concluded that 'outstanding leaders influence style.
history, and the ability to lead was something that you earned at Charismatic leadership style
birth and not something that could be created. Charismatic leadership refers to an individual who owns specific
Some early work on leadership mainly focused on the relationship traits that make him an extraordinary and astonishing leader. That
between personality and leadership. Later (Bono, & Judge, 2004) leader possesses the superiority of charisma of his personality and
published their work between 1990 and 2004, stating that 12% of can make people his followers blindly. People have enormous trust
the research on leadership included the keywords 'personality and in him and almost have unbreakable faith. (Max Weber, 1947)
leadership'. So, it could be suggested that leadership style is Working culture
triggered by personality. Concurrently there are many research The term working culture has been part of various subjects like
studies to differentiate between leaders and non-leaders and business, sociology, history, and anthropology. To sum up the
analyze accurate and relevant leadership trait tests. However, definition of organizations' working culture, it could be stated that
researchers discovered that only a few traits create a boundary organizational culture is composed of the values, beliefs, and
between leaders and followers like Height, intelligence, traditions that are the source of motivation for its employees, and
extraversion, adjustment, dominance, commitment, and self- simultaneously the employees are expected to abide by those sets
confidence. of beliefs and values. Out of the desirable elements that are needed
In1989, John W. Gardner published research work a considerable by employees, one is work culture. Work culture could be
number of leaders and deduced that some attributes appear to make described as a practice that manifests norms, shared values, and
a leader successful in any situation (John Fleener 2006). There is basic presumptions of all its components. (Ali, Norlinaet al, 2015).
some limitation of trait theory as recent research suggested that The research indicates that styles of culture and leadership are vital
innate and heritable leadership characteristic invokes at about forces at work that influences individuals. Weber added that the
30%. Remaining 70% comes from situational factors. So now this leaders put the organization in the appropriate direction and set the
theory faces the criticism of being called as dustbowl empiricism. organization's tone. Strong organizational cultures are a good
For instance, in the U.K., to be elected in U.K. civil service, a source of motivation for the employees.
candidate must fill a questionnaire on personality named '16PF5' • Culture strengthens organizational vision and values.
personality measure to assess the individual leadership style and
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• Strong cultural organizations are a good place to work for organization, we used a quantitative method and used a Likert
people. Organizations take different steps in building a quality scale for our questionnaires. I'll discuss further detail in the data
culture. collection section.
Motivation Sample size and Data collection
The key to success is motivation. Life success is determined by This study wants to examine the effect of leadership styles on
elevating or maximizing positive and productive intentions, while working culture and motivation. We collected data from 230
minimizing counterproductive and destructive motivations. employees. Data was gathered through employees of the banking
Motivation is a driving force that stimulates an individual to sector and organizations. We want to know the relationship
initiate and sustain productive behavior in an organization in a between leadership styles on motivation and working culture. We
persistent manner. It is a desire that fuels an individual (Ali, used the questionnaire method for this study in the effect of
Norlina et al, 2015). This study will focus on the leadership styles leadership style on working culture and motivation between
that best fit dynamic and complex organizations' employees to different genders, in various age groups' interests, based on their
keep them motivated consistently. qualification and experience, etc. We collected random data only
Hypotheses Development from employees of Lahore.
H1: Rational-legal leadership style is positively correlated with Data Analysis
employees' motivation Table 1: Descriptive Analysis
H2: Traditional leadership style is negatively correlated with Variables Name Mean S.D. S.E. Of Mean
Age 1.439 0.497 0.033
employee’s motivation Education 1.400 0.491 0.032
H3: Charismatic leadership style is positively correlated with Experience 3.709 1.060 0.070
employee’s motivation Traditional Leadership 3.847 0.957 0.063
Rational Leadership 3.904 0.759 0.050
H4: Rational legal leadership style is positively correlated with the Charismatic Leadership 3.861 0.910 0.060
working culture of organization culture Working culture 3.715 0.990 0.066
H5: Traditional leadership style is positively correlated with Motivation 3.510 1.003 0.065
working culture Table 2: Reliability Analysis
H6: Charismatic leadership style is negatively correlated with Construct Name Cronbach Number of Deleted
Alpha Original Items Items
working culture Rational legal 0.742 6 0
Theoretical framework Traditional 0.757 6 0
Charismatic 0.799 6 0
Working culture 0.89 3 0
Motivation 0.893 3 0
The variable (rational-legal leadership style) consists of 6 items.
The Cronbach Alpha value for the variable is 0.742, which is well
above the threshold level that is 0.7. The second variable
(Transactional) consists of 6 items. The Cronbach value for the
variable is 0.757, which is well above the threshold level, which is
0.7. The variable (Charismatic) consists of 6 items. The Cronbach
Alpha value for the variable is 0.799, which is well above the
Figure 1: Theoretical framework threshold level that is 0.7. The variable (working culture) consists
Methodology of 3 items. The Cronbach Alpha value for the variable is 0.890,
This study used quantitative data collection methods. The research which is well above the threshold level that is 0.7. The variable
work used a questionnaire for gathering accurate and efficient (motivation) consists of 3 items. The Cronbach Alpha value for the
information. This research surveys 230 respondents working in the variable is 0.893, which is well above the threshold level that is
banking sector and organizations. The questionnaires used 30 0.7.
items scale with close-ended questions. We applied different Table 3: Correlation Analysis
RL T C WC M
statistical techniques such as frequency distribution, regression Rational legal 1
analysis, reliability analysis, and correlation to analyze the Traditional -.102 1
respondent's data. Data collection format was designed by dividing Charismatic -.328** .068 1
Working culture .004 .218** -.094 1
the questionnaire into a few parts to create interest and Motivation .063 .438** -.113* .787** 1
concentration among the respondents. A questionnaire has Table 4: Regression Analysis
consisted of three sections; section A is leadership style, section B Hypothesis Beta S.E. t-value P-value Decision
is working cultures, and section C is related to motivation. RLS EM .180 .093 1.944 .215 NS
TLS EM .146 .066 2.209 .271 NS
Population and Sample Technique CLS EM .902 .037 24.605 0.001 S
All middle-level employees working in the government banking RLS WC .680 .040 17.063 .342 NS
TLS WC .621 .052 12.041 .237 NS
sector and private organizations are used as the population for this CLS WC .798 .046 17.246 0.004 S
study. This study used a simple random strategy and collect data Note: +p <.10 ; *p<.05; **p<.01; ***p<.001. NS= Not Support, S=Supported. The table shows standardized
beta-coefficients along with t-statistics as well as the S.E. value, and its significance level.
from bank employees and private organization employees. In an
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The results of this study supported by H1 and H2 show important factors in organizational culture working culture (Health
a charismatic leadership style has a significant impact on Policy and Management Department, Chung Shan Medical
organizational culture and motivation as high as 48%. This study's University; Taiwan, 2011).
results are consistent with previous studies (Shamir et al., 1993; In the fifth hypothesis, this study has a positive relationship
Choi, 2006; Lee et al., 2015). Some possible explanations may between traditional leadership style and working culture, and this
include that employees often observe their leaders ' deeds and have hypothesis is rejected This finding was consistent with previous
good interaction with their leaders. Their leaders discuss specific studies (Lee, 1971; Hrebiniak, 1974; Angle & Perry, 1981;
organizational strategies and expectations with employees and Mathieu and Zajac, 1990; Alkahtani, Abu-Jarad, Sulaiman, &
describe the problems that should be observed to employees and Nikbin, 2011). This study has a negative relationship between
demonstrate to the employees the matters that should be observed charismatic leadership style and working culture in the sixth
and noted in the workplace that slowly form the company's hypothesis, and these hypotheses are accepted. This finding
characteristics and are recognized by the employees. The results supports previous research studies (Becker, 1960; Angle & Perry,
of this study lead conclusion that establishing and maintaining the 1983; Alkahtani, Abu-Jarad, Sulaiman, & Nikbin, 2011).
organizational working culture depends on the degree to which the Limitation and future research opportunities
employees understand the norms of the leaders and the perceived Effect of leadership style on motivation and working culture, the
relationship with them. Thus, this type of leadership will primary problem incurred was to collect data from leaders of
encourage on-the-job frontline employees in communicating the organizations. It was challenging to collect data from CEOs. As
organizational environment they expect and want. the Responses are collected from 17 leaders only, and results were
Conclusion difficult to generalize. Questionnaires were gathered from banks
This study aimed to explore leadership styles and their influence of the private sector and organizations of government sector only
on the working culture and motivation of workers. In this analysis, situated in Lahore. So, when research is conducted in other cities,
a quantitative approach has been used. The result of the data results may vary. The results obtained from the research indicated
gathering indicates that leadership has a more significant positive that charismatic leadership is most effective in employees'
effect on employee motivation and work culture. Employees feel motivation and hence has a positive effect on the working culture
empowered and confident in doing their job and making different of the organization. N=but it was unable to measure the job
decisions. Employees of each organization need a great leader to performance resulting from highly motivated employees.
get direction to achieve the goal of the organization. In this study, Implications for Manager and Firms
three leadership styles, i.e., traditional, rational-legal, charismatic The utility of research is for managers, employees, and the overall
styles, are used. The findings of the survey reveal that the organization. This research may help leaders to adopt the best
charismatic style of leadership is more influential. Charismatic leadership style according to circumstances. This will guide
leadership style in Pakistan is strongly linked to employee leaders on how to learn the psychology of employees and motivate
motivation within an organizational context. them according to their interests. In a nutshell, a firm's profitability
Charismatic leaders are building successful teams. Charismatic le can be enhanced when there is an appropriate leadership style and
aders are inspiring and assisting employees in accomplishing org working culture and motivated employees are the most asset of an
anizational goals and achievements. organization.
Discussion References
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