TABLE OF CONTENTS
TABLE OF CONTENTS 3
EXECUTIVE SUMMARY 5
1. INTRODUCTION/ BACKGROUND OF THE STUDY 6
2. TOPIC/ MODEL/ INTERVENTION UNDERTAKEN 9
3. SUMMARY/CONCLUSION/ RECOMMENDATION 15
LIST OF REFERENCES 16
Select any concept / theme / model which is in Human Behavior in Organizations or Organization Behavior discussed during the training interests you most . Now, using them as a:
1. The working model at your workplace,
2. Interventions to improve the system, procedures and operation in your workplace or in other people’s organizations, or
3. A model / perspective when analyzing the system, procedures and ways of working in an organization (yours or someone else’s) and write about it / the intervention and outcome.
Many previous studies concluded that the leadership styles have impact on staff satisfaction about the job. At the same time, they showed that psychological skills play an important role in deciding the leadership style. However, there are some authors suggesting that in order to get the effective leadership, the administrators need a combination of many other skills. Therefore, this is the context of this study. In particular, this study aims to explore the influence of leadership style and leadership competencies on the job satisfaction of employees.
Research method: 233 employees coming from various companies in Ho Chi Minh City participate in the study. Style / leadership behavior is measured by 20 questions on leadership style built by Northouse (2001), among them, there are 10 questions used to measure the leadership style focusing on work and 10 questions used to measure the management style emphasising on human. The capacity of a leader is measured by eight leadership and global management skills in thr group of 18 skills built by Profile Service Center. This tool consists of three sentences to measure the communication, three sentences to measure the leadership, two statement measuring adaptability, two statements measuring relationships, two statement measuring the growth of others, and two sentences to measure personal development. Job satisfaction is measured by five questions developed by Brayfield and Rothe (1951).
The results show that the leadership style and capability of the leader have direct relationship with the job satisfaction. The capacity of the leader discovered is the best predictor for satisfaction. Moreover, in addition to psychological skills, some skills also significantly impact on leadership style – communication skills, problem solving, effective listening, information processing, effective encouragement, entrusted responsibility, personal relationship building, focus on work efficiency, actions, results.
THE OVERVIEW OF RESEARCH TOPIC
In the course of business, there have been much debate around the issue of success or failure of the organization with the style and skills of the leaders. A leader can be defined as the creator of the soul to the organization, and ensures the organization to sustainably develop according to the targets set out initially. In other words, the leader guides the organization towards the direction he envisions and makes available. With certain capabilities, a leader must be able to adjust leadership style and behavior to achieve the overall goals of the organization. At the individual level, the leader who has the ability to influence, motivate and lead staffs will get loyalty and performance from them.
Leadership has received much attention from academics, scholars and researchers from many decades ago. During the volatile period of business, the leader is seen as capable of putting the organization out of the waves. Therefore, this concept is attracting the attention of many scholars at present. The study of leadership can be traced to the study of management, psychology, sociology. Many studies focus on a specific topic: What factors make leadership effective? To answer this question, many theories and models of leadership are formed to broaden the understanding of this complex subject, especially in the modern society and organization. But overall, many scholars agree that effective leaders are capable of achieving the organization’s performance (Mastrangelo, Eddy & Lorenzet 2004).
One way to measure the stability of organizational efficiency is employee satisfaction (Robbins, 2009). Mosadeghrad (2003) defined that job satisfaction of the employees is the attitude towards their jobs and organizations they are working for. In this context, job satisfaction may be considered in many aspects including comments from staffs about the rewards, the nature and conditions of work, encouragement, relationships with colleagues, promotion, and management. When employees feel good about their job, the organization is considered to be effective and successful. Obviously, the role of the leaders is one of the factor contributing to this efficiency.
For over two decades, organizations have encountered many challenges in logistics, engineering and supply chain management, as well as in human assets, requiring the companies to give the new strategies and leadership style to solve. This is an important issue because of the positive and significant contact between the leadership style and work performance, stress and job satisfaction of employees (Chiok Foong Loke, 2001; Dunham-Taylor, 2000; Stordeur et al, 2000; Vance & Larson, 2002). Besides, Goleman (2000) emphasizes that an effective leader should not only depend on one style of leadership, on the contrary, he needs to combine several styles (democratic, autocratic, liberal, paternalistic) depending on the work environment and context to deal.
The theory of leadership shows that leaders can apply suitable styles for every situation and context they have to face, which can bring the staff satisfaction. But this theory assumes that the behavior or leadership style is available. According to Robbins (2009), some people are born to be leaders, while many others are trained to become leaders. Yukl (1999) and Gibson et al. (2000) suggest that one important factor that the leader must have is the capacity – defined as cognitive, communication, and technical expertise skills. These skills help leaders know they need to act effectively in order to work well from subordinates, and simultaneously make them happy on the job.
Moreover, the study on the style and leadership behavior are done much in the West. The understanding of the behavior of the leaders in Southeast Asian countries like Vietnam is still limited. Because of this limitation, the concept of leadership is applied from the Western academics and research while there is a strong influence on the behavior of the Eastern culture, values, and beliefs of the people. Several hypotheses show that there are no major differences between leadership concepts in the Western countries and Vietnam, but it is due to the impact, and the introduction of Western culture, as well as investment growth of foreign investment into Vietnam. Vietnam’s leaders have some differences influenced by the indigenous culture and customs as values, expectations, attitudes, and behavior.
Regarding the relationship between leadership competencies and styles / leadership behavior, there is no specific study on this relationship. Even if there is some studies on this relationship, they also primarily consider the mental capacity as the important capacity. However, according to Salovey & amayer (1990), the mental capacity is not enough for the effective leadership which needs the combination of a group of other skills.
Palmer, Walls, Burgess, and Stough (2001) explore the relationship between leadership competencies – emotional skills and effective leadership in their study with 43 participants who are managers. The efficient leadership is found in the transformational leadership style, not in the exchange leadership style through assessing from the questionnaire. The study shows that the psychological skills are related to some factors in transformational leadership styles, and this is an important factor in leading to efficiency leadership. Specifically, these skills will affect the psychology of leaders in observing and reacting with subordinates.
There are also many studies conducted to evaluate the impact of behavioral or leadership style to job satisfaction. Al-Hussami (2008) conducts a study to learn about the impact of transformational leadership styles over the job satisfaction of employees. Samples are taken with 192 nurses serving in four private care hospital in the southeastern United States. The results show a significant link between transformational leadership styles and job satisfaction of nurses. The transformational leadership style is estimated as accounting for 80% of job satisfaction. In addition, the results also show that the nurses are not satisfied with the wages, working conditions and support from the organizations.
Lok and Craford (2004) conduct a study to find out the influence of leadership style (focusing on work and focusing on human) on job satisfaction for managers coming from Hong Kong and Australia. The research sample is 337 people, including 219 Hong Kong managers and 118 Australia executives. The results show that leadership style focusing on work has a positive effect on job satisfaction while leadership style focusing on humans has negatively affect on job satisfaction.
Meanwhile, Madlock (2008) conducts a study to measure the association between leadership styles, communication skills, and job satisfaction of employees. The sample comprises 220 employees working in different organizations. The results show a positive correlation between leadership styles, communication skills, and job satisfaction of employees.
1. METHODOLOGY – FINDINGS FROM RESEARCH
1.1. Research objectives:
Based on the above reasoning on the necessity of leadership, this study is designed to achieve the following goals:
• To find out the impact of leadership behavior / style applied by managers in different organizations on job satisfaction of employees
• To explore the relationship between leadership competencies, leadership style and job satisfaction of employees
• To assess the impact of the skills and leadership competencies on the leadership behavior / style
• To examine the indirect effects of the skills and leadership competencies to job satisfaction of employees through leadership style
1.2. Research Hypotheses:
Based on the theory refered above, four hypotheses are set up to find out the impact of leadership on job satisfaction of employees.
H10: There is a positive link between leadership behavior / style and job satisfaction of employees
H11: There is no positive relationship between leadership behavior / style and job satisfaction of employees
H20: The competency that a leader have can’t decide his / her style
H21: The competency that a leader have can decide his / her style
H30: There is no positive relationship between leadership competencies and job satisfaction of employees
H31: There is a positive relationship between leadership competencies and job satisfaction of employees
H40: There is no relationship between leadership competencies, leadership style and job satisfaction of employees
H41: There is a relationship between leadership competencies, leadership style and job satisfaction of employees
1.3. Research Methods
The study was conducted by analytical methods: testing the reliability, frequency analysis, descriptive statistics, and statistical inference. These methods were used to assess the information gathered from the questionnaire with the help of SPSS version 15.
The study was performed on selected samples from the various organizations in Ho Chi Minh city as private schools, manufacturing companies and companies providing medical equipment, service companies. The research sample was taken in 2000 full-time staffs in various positions in the above organizations, and they were divided into three groups: unskilled workers, office workers, and managers. The questionnaires were sent to 350 randomly selected people from various positions within the organizations. Among them, only 233 questionnaires were collected from June 15 to July 15, 2012.
The questionnaire includes five parts asking respondents about the behaviors and capabilities of the managers, job satisfaction and the management, and personal information concerning them and their managers. The dependent variable in this study is job satisfaction of employees, and leadership style and capabilities of the leaders are the independent variables. The variables are measured as follows:
Leadership behavior / style is measured by 20 questions about the leadership style built by Northouse (2001). This tool has ten questions to measure the leadership style focusing on job and ten questions to determine leadership styles focusing on human / relationship. Five-level scale (1 means strongly disagree and 5 represents strongly agree) is used in this section. Cronbach’a alpha index is 0.942.
The capacity of a leader is measured by 8 Leadership and Global Management skills in 18 skills developed by Profile Service Center http://www.warkwagnon.com/checkpoint_specs.pdf. This tool consists of three sentences to measure the communication, three sentences to measure the leadership, two statement measuring adaptability, two statements measuring relationships, two statement measuring the growth of others, and two sentences to measure personal development. Five-level scale (1 means strongly disagree and 5 represents strongly agree) is also used in this section. Cronbach’a alpha index is 0.950.
Job satisfaction is measured by the use of 5 questions developed by Brayfield and Rothe (1951) – Participants will be asked about their feelings about their daily job. In addition, three other questions are given to assess the satisfaction about the management built by Hackman and Oldham (1975) – Participants will be asked about their feelings about the managers. Five-level scale (1 means strongly disagree and 5 represents strongly agree) is used in this section. To measure satisfaction, calculate the total points earned from job satisfaction and satisfaction about the leaders. Cronbach’a alpha index is 0.799.
Other personal information collected through two sections. The first section consists of four questions related to the direct managers of employees. Respondents are asked about the gender of managers, working time with these leaders. Respondents are also asked to assess their level of understanding about managers. At the same time, the respondents are asked to assess the level of understanding of managers about them. The second part consists of six questions to gather personal information about respondents, such as gender, marital status, age, job, working time in companies and educational level.
1.4. Summarizing the findings of each study
Personal information of the participants in the study is drawn as follows: mainly respondents are men (80.7%), and are married (71.7%), bachelor degree accounts high percentage in this study (60.1%). Position is primarily unskilled workers (48%), and executive position has the lowest rate (15.7%). About hometown, residents of Ho Chi Minh City account for most (55.2%) compared with migrants from other provinces.
Table of hypothesis analyzing
Research hypothesis Result
H1: There is a positive link between leadership behavior / style and job satisfaction of employees Accept
H2: The competency that a leader have can decide his / her style Accept
H3: There is a positive relationship between leadership competencies and job satisfaction of employees Accept
H4: There is a relationship between leadership competencies, leadership style and job satisfaction of employees Accept
The results of analysis for research hypothesis 1 showe a relationship between leadership style and job satisfaction (r = 0.456, p = 0.000). This means leadership style improves employee attitudes towards their works, and staffs are pleased with the current style of leadership.
Research hypothesis 2 shows the links between the capacity of leaders and leadership styles (r = 0.620, p = 0.000). The result indicates that there is a significant influence in shaping leadership style.
Research hypothesis 3 show the links between the capacity of leaders and job satisfaction of the staffs (r = 0.622, p = 0.000). The result points out that the employees are satisfied with the capacity of leaders and also happy with their jobs.
Finally, in analyzing research hypothesis 4, the result shows that the leadership style and capabilities can explain 39.5% of the difference in job satisfaction (F = 71.876, p = 0.000). This result supports the hypothesis that both factors are important for job satisfaction. Both factors affect in predicting employee satisfaction, but mostly be dominated by the leadership capacity.
1.5. Discussion and application
H1: There is a positive link between leadership behavior / style and job satisfaction of employees
The results drawn from the respondents show that leaders are expressed in the average level when focusing on work (mean = 3.603, SD = 0.752) and when focusing on human (mean = 3.514, SD = 0.789), although the style focusing on work is little higher. Moreover, the results indicate a link between leadership style and job satisfaction of employees (r = 0.456, p = 0.000). This results reflect that both the leadership style focusing on work and people can improve the feeling and attitude of employees towards jobs.
Based on the results collected and the outcomes found from several other researchers (Al-hussami, 2008; Jabnoun and Al-Rassasi, 2005; Leary et al, 2002; Mosadegh and yarmohammadian, 2006; Ramey, 2002) , it’s seen that the combination of the two styles will become more effective in improving employee satisfaction and helping them achieve their personal goals and organizations.
H2: The competency that a leader have can decide his / her style
The results show the relationship between capability of the leader and leadership styles (r = 0.620, p = 0.000). This result means that capabilities play an important role to shape leadership style. It’s neccessary to note that these experimental studies assessing the impacts of capabilities on the leadership style are not redundant. The researchers previously only focused on proving that the psychological skills are important factors affecting the style of leadership, but this study justifies that it’s neccessary to have other skills to reach the effective leadership.
In the opinion of Gravan and McGuire (2001), Lucia and Lepsinger (1999), Viitala (2005), a person must have knowledge, skills and ability in order to have good expression in work. When a person have more skills, he/she will get the right expressions in working. Applying in this study, the results fit with the theory set out, a leader must listen effectively, transmit information, encourage effectively, entrust responsibility, communicate effectively, and build good relationships, which shapes the leadership style focusing on human. On the contrary, the leaders having the leadership style focusing on work emphasis on work performance, actions, results and encouraging effectively by rewards, solving problems when necessary, commitment, and finding the development for subordinates. The hypothesis supports that an effectively leader must know when to apply styles based on their qualifications. In other words, leadership capabilities became a prerequisite for effectively leadership style.
H3: There is a positive relationship between leadership competencies and job satisfaction of employees
A significant relationship between capability of the leader and job satisfaction of employees is found (r=0.622, p=0.000). This means that if the employees are satisfied with the capacity of the leaders, they will be satisfied with their jobs. Based on the study, the results show that a leader who know to listen, process information, adapt to circumstances, build personal relationships, act, assign responsibilities, trust, communicate effectively, think creatively, motivate, and handle cultural issues are considered more effective in improving employee satisfaction and helping them achieve higher work efficiency. This result is similar to the results of the studies (Carmeli, 2003; Frank, 2001; Upeniek, 2003) considered to communicate effectively, build relationships, and solve problems as core and important competencies that a leader should be have to enhance the satisfaction and work efficiency of staffs.
H4: There is a relationship between leadership competencies, leadership style and job satisfaction of employees
Because the purpose of this study is to understand the impact of leadership style and capabilities on the satisfaction of employees, the results show that both factors have positive impact on satisfaction. Leadership style and capacity can explain 39.5% of the difference in employee satisfaction (F = 71.876, p = 0.000). From there, it can be seen that these two variables are important factors creating employee satisfaction, but based on Beta index gained, capability of the leader has a greater impact than the leadership style do (β = 0.553 compared with β = 0.121). The findings are important for the leaders to apply styles and use appropriate skills.
2. SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
The findings of the study can be summarized as follows: the satisfaction of employees are affected by both leadership style and capability of the leader ; respondents have job satisfaction at inadequate level; according to statistical method, there is a correlation between job satisfaction and leadership style under the aspects: focusing on work and focusing on relationships. Furthermore, there is a significant relationship between job satisfaction and capability of the leader ; capability of the leader is the best factor to predict job satisfaction of employees; finally, capability of the leader affects leadership style.
From the results drawn, the researcher give several recommendations to improve employee satisfaction:
The results conducted from the experiment show that the leadership style and capability plays a significant role in affecting job satisfaction of employees, in which capability has greater impact. Therefore, the leadership training should focus on developing the right skills for a leader to help him/her apply the most appropriate style when managing employee. A leader who receive comprehensive and intensive training programs can enhance the ability to communicate effectively with colleagues, understand about motivating factors, solve the problems of work and staffing, listen effectively, give judiciously and innovative solutions, be willing to share appropriate knowledge and experience to the subordinates, learn and acquire new skills for effective leadership. In other words, the completion of the acquisition and learning these skills can positively impact the behaviors and acts of the leaders in improving motivation, satisfaction, and performance of the subordinates.
Overall, this study demonstrates a close relationship between employee satisfaction with capability of leader and leadership style. Therefore, the skill training and improvement for the leaders are needed to reach the effective leadership, and enhance employee satisfaction. As a result, the business perfomance of the organization is also improved.
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