Relationship between leadership style and employee retention strategies

relationship between leadership style and employee retention strategies

the Impact of Leadership. Styles on Employee Motivation and Commitment: An empirical study of . Employee Retention in Corporate. Sector. .. commitment”. Organisations need to ensure that leadership strategies are . H12 :There is a significant relation between Transactional leadership style and. Employee. for managers to device strategies with which to retain the talented . What is the relationship between leadership style and staff retention in. This study is about the effect of leadership styles on employee performance which strategic integration of new leadership styles into effective management of What is the relationship between the Democratic leadership style and employee.

The above should lead to efficiency, specialization, effective feedback and good organizational relations. Both terms leadership and employee performance cohesion should be proved through styles and approaches in attempt to cause efficiency which variable in this study was leadership and indeed Carter [ 2 ] defined leadership as the ability to employ managerial competencies to organized performance processes by inspiring, igniting and motivating teams to meet set organizational goals.

This theory propounded that leaders should adopt that style which best to the situation and immediately stimulate the employee performance. Leadership is increasingly understood to involve persuasion and explanation as well as ability to identify, affirm, and renew the values of the group the leader represents.

Managerial expertise, technical skills, cultural literacy and other relevant knowledge and skills are not sufficient virtues for the leaders whose lives will be dedicated to public services. An effective leader has a responsibility to provide guidance and share the knowledge to the employee to lead them for better performance and make them expert for maintaining the quality. And become head of all team members is such a great responsibility.

The introduction of the clear standards of leadership promotes the core values and maturity on their role and responsibility. Statement of problem Employee performance includes executing defined duties, meeting deadlines, employee competencyand effectiveness and efficiency in doing work. Various organizations need strong leadership styles that stimulate the employee performance.

Some organizations such as tractor factory face the problems: This problem happen due to lack of strategic interventions of specific leadership styles to the particular situations was predicted as the problem at hand.

This problem was continuously affecting employee performance. It is believed that an effective organization rooted from the propellers or on the business leaders. The idea of effective leadership is also adopted in the world of technology.

The employees also perceived that there is a need of a leader who should not only have to lead people but also be effective. So, they need an effective leader who can lead the people toward the changes and performance improvement. How does a leader perform under the consideration of effective performance of employees and firm? How does leaders effectiveness changes the performance.

Specific Objectives The research in testing the effectiveness of a leadership is fueled by the objectives. A research without purpose is worthless and part of the aims is to introduce the best leadership approach. To explore the leadership styles that contributes to employee performance. To explain the relationship between the effective leadership styles and performance of employees.

Effect of Leadership Style on Employee Performance | OMICS International

To know the significance of leadership styles in the employee performance. To develop the model that shows relationship among different styles of leadership and employee performance. What are the outcomes if there is an effective leadership style?

What is the relationship between participative leadership and employee performance in an organization? What is the relationship between the Democratic leadership style and employee performance? To what extent does the authoritative style affect employee performance in an organization? Significance of the Study As such, the completion of this dissertation will provide understanding of the concept present so as to generate data and information that every planner could use in order to come up with strategies, plans and designs that will strategically position them in the highly competitive, diverse, and complex business environment that is experienced at present.

By fulfilling the aims that were stated in the objectives section, this study will be helpful for other researchers who may be focusing on understanding the concept of effective leadership. The notable significance of this study is the possibility that other researchers may be able to use the findings in this study for future studies that will create a huge impact on society.

This study finding can be used for other findings that might prove to be helpful in introducing changes to the business. The present study findings have been significant in number of ways.

It has been contributed to the body of knowledge by; since the present area is highly under researched in Pakistan and developing countries. No study has been found to investigate the effects of leadership styles to increase the performance of employees in Pakistan.

The collection of data is of recent decade articles. Literature Review In this section firstly what is leadership is? What are leadership styles? And then explained the theoretical framework which elaborates the effects of three leadership styles participative, autocratic, and democratic on the employee performance.

Leadership Leadership is a process by which an executive can direct, guide and influence the behavior and work of others toward the accomplishment of specific goals in a given situation.

Leadership is an ability of a manager to induce the subordinates to work with confidence and zeal. Leadership can be defined as the capacity to influence a group realization of the goal. Leaders are required to develop the future vision, and to motivate the organizational members to want to achieve the visions and to improve the performance. Koudri suggests that leadership is to deal and cope with change, focusing on the long-term and the big picture, not always doing to safe himself in fact to take risks, and concentrating on people and their values, not just the bottom line [ 5 ].

Leadership styles The business writer Daniel [ 7 ] categorized different leadership styles. They suggested that leadership styles could be explained on a scale ranging from autocratic through democratic to participative to show the degree of authority and decision makes power of leaders and employees Figure 1.

Decisions are made within teams, with each member having equal inputs. He has a range of responsibilities associated with people, process and standards. Martin style may use a democratic approach when setting training budgets. Participative leadership style is that involves all members of a team in identifying essential goals and developing procedures or strategies for reach those goals.

From this perspective, participative leadership can be seen as a leadership styles that relies heavily on the leader functioning as a facilitator rather than simply issuing orders or making assignments.

This type of involved leadership style can be utilized in business settings, volunteer organizations and even in the function of the home. One of the main benefits of participative leadership is that the process allows for the development of the additional leaders who can serve the organization at a later date.

Because leaders who favor this style encourage active involvement on the part of everyone on the team, people often are able to express their creativity and demonstrate abilities and talents that would not be made apparent otherwise that ultimately improve the performance of employees. The discovery of these hidden assets help to benefit the work of the current team, but also alerts the organization to people within the team who should be provided with opportunities to further develop some skill or ability or future use.

Although each person will have their own preferred leadership style, the most effective leaders adopt a style which appropriate for the situation. They will consider several factors in deciding which to use: The task-is it business critical?

Effect of Leadership Style on Employee Performance

Must a decision be made immediately? What will be potential impact on the business?

relationship between leadership style and employee retention strategies

The team-does it have the right skills and resources? Methods This cross-sectional study was conducted using self-administered questionnaires distributed among hospital employees and managers through a stratified random sampling.

Results and discussion The dominant leadership style of hospital managers was participative style. Hospital employees were moderately satisfied with their jobs and committed to their organization.

Salaries, benefits, promotion, contingent rewards, interpersonal relationships and working conditions were the best predictors of job satisfaction among hospitals employees.

relationship between leadership style and employee retention strategies

Leadership, job satisfaction and commitment were closely interrelated. Nevertheless, participative management is not always a good leadership style. Leadership, Job satisfaction, Organizational commitment, Hospital 1.

relationship between leadership style and employee retention strategies

The sustained profitability of an organization depends on its workforce job satisfaction and organizational commitment 1. Employee job satisfaction is correlated with received salaries, benefits, recognition, promotion, coworkers and management support, working conditions, type of work, job security, leadership style of managers, and demographic characteristics such as gender, marital status, educational level, age, work tenure, and number of children Organizational commitment shows the psychological attachment of an employee to the organization 9.

According to Meyer and colleagues there are three types of organizational commitment: Herzberg commented that the best way to motivate employees is to build challenge and opportunities for achievement into job, i. Employee turnover intention is refers to an employee who are considering and thinking to quit a job Firth et al. Turnover are classified and categorized into voluntary or involuntary, as well as functional or dysfunctional, each will have varying degree of impact on the organization Wells and Peachey, Wells and Peachey claimed that voluntary turnover is defined as a process in which an employee makes decision whether to stay on or leave the organization.

Mobley further commented that this type of turnover is usually dysfunctional and can be most detrimental to the organization. It is also warned that those that most likely to leave the organization are those most talented and smartest employee within the group.

Their valuable experiences, talent, skills and knowledge will leave with them and resulted in deteriorating efficiency Abbasi and Hollman, The reason why it is classified as functional turnover is due to the often removal of under-performing employees Watrous et al. Direct relationship between research variables Relationship between transformational and transactional leadership and job satisfaction: Several studies have been conducted in the education profession Silins and Mulford, ; Blogler, ; Rossmiller, For instance, study by Silins and Mulford has revealed high level of teacher satisfaction and learning in school systems where transformational leadership is implemented.

Ejimofor also conducted a study to investigate the relationship between teachers perceptions of principals, transformational leadership skills and teachers, job satisfaction in two large Local Government Areas in a metropolis of Southeastern Nigeria.

Participants included secondary teachers and 48 principals and the result of the study also asserted that teachers, perception on principals, transformational leadership skills have substantial and significant impact on teachers, job satisfaction.

Further studies with similar aim to explore the relationship between leadership and job satisfaction have been carried out by Ramey Ramey has conducted a study to examine the relationship between leadership styles of nurse managers and job satisfaction of registered staff nurses in hospital settings in an Appalachian state, USA.

A total of participants has been selected using simple random sampling method from the total registered nurses of Similar to other research study such those mentioned earlier, a positive and moderate association was found between job satisfaction of registered staff nurses and nurse managers who practicing transformational leadership.

The association between job satisfaction of staff nurses and their superiors who practicing transactional leadership was found to be in contrary. This finding has further supported the existence of positive relationship between transformational leadership styles and job satisfaction between staff nurse and nurse managers.

relationship between leadership style and employee retention strategies

Hamidifar also conducted similar study on the relationship between leadership and employee job satisfaction at Islamic Azad University 16 Branches in Tehran, Iran. The result of the study is found to be consistent with other similar studies which shown the significant positive influence of transformational leadership factors on employee job satisfaction.

The result has again demonstrated a positive relationship between transformational leadership and job satisfaction as well as organizational commitment. Another study was also quoted from Yusof and Shah study in the sport organization and found that athletic director exercising transformational leadership had led to greater job satisfaction among head coaches. In another recent study by Burton and Peachey in the similar field, the result revealed that transformational leadership of the athletic director was positively associated with satisfaction with the leader and transformational leaders was preferred regardless of the gender of the leaders Wells and Peachey, Relationship between transformational and transactional leadership and turnover intention: