Friday, November 16, 2012

The Chapter II - Literature Review


Chapter II
1.0  INTRODUCTION
             In a book  Are You A Great Manager?: the art of managing people effectively and successfully  by Ismayudin Abdul Manan state this “A great manager is a very result oriented and hell-bent for glory, but not for himself personally. He does not seek to impress the boss for his career advancement; he does not climb the ladder by stepping on his people’s shoulders. It is for his team, for people and for the company. That is why a great manager, the emphasis is the teamwork and team glory. This clearly shows the effective manager may influence the level of job performance among employee in an organization.
            The meaning of leadership is a process whereby an individual leads of influence a group of people to achieve common goal. In the literature review, leadership is recognized as an important element in an organization that transforms the performance of the organization as a success. Leadership creates the motivation among employee towards their task and job performance. The effective leadership is when the he has many common qualities and making effort to practice and enable to use the style of leadership necessary in any situational came across. Leadership style in an organization is one of the factors that play significant role in enhancing or retarding the interest and commitment of the individuals in the organization explains by Glantz (2002). This explains the important for every manager to lead their subordinates with right leadership style so that it may grab the employee’s effort and trust towards their jobs.
            The success of an organization is reliant on the leader’s ability to optimize human resources. A good leader understands the importance of employees in achieving the goals of the organization, and that motivating the employees is of paramount importance in achieving these goals Pradeep & Prabhu (2011). According to Pradeep & Prabhu’s study, the effective leadership style refers to the skill s used by a leader in order to increase and fully utilize the resources in an organization. At the same time, a good leader must know how to identify the employees’ ability towards the job task given in line with the organization’s goals. In this study also shows that which leadership’s styles suits to the organization based on its needs and goal. There are many leadership styles we can see in theories as a whole, however according to Adeyemi (2010), few theories identified is the Traits Theory, Situational Theory, Contingency Theory, Behavior Theory, and Path Goal Theory. Traits Theory tends to emphasize on the leader’s interpersonal skills and appearance, the initiative, aggressiveness, enthusiasm, self confident and administrative ability. The Situational Theory stipulates that the leader is a product given by the situation, from where he was, the background and experiences. The Contingency Theory is a combination of both traits and situational theories depending on his personality fits and environment. The Behavioral Theories can be either leader with job centered or employee centered. The Path Goal Theory is based on the motivational factors towards the employee, Adeyemi (2001).
            The most common type of leadership in any industry is autocratic leadership, which was well accepted by most employees largely due to their poor education background and lack of expose in understanding their right as workers, Rani, Pa’wan,Musa & Tajudin (2008). According to Rani (2008), the evolution of this type of leadership has move to the more different ways of leadership in mid 80’s. this is due to the phenomenal transformation experienced by the top management and a better education exposure in Malaysia. Therefore the leadership style adopted among the manager has an impact on the administrative process and development of organization’s performances. On the other research on this topic, Kennedy (2002), Malaysian managers rated transformational leadership as a highly significant contributor to outstanding leadership. According to this study also emphasize that the Transformational Leadership is more commonly use in business entity as it can be shown as an effective approach among managers.
Also describe by Avolio et al, (1991), leaders in organization today are expected to be more than just a managers. They need to develop and inspire their follower and promote positive changes in individuals, groups, teams and organization. According to Rani et al (2008) there are two types of leadership that falls under transformational leadership, which are charismatic and visionary leadership.  Apart from that, there are transactional leadership approach that was recognize as one of the most acceptable and give a value added to the job performance in an organization. The transactional leadership style defined by Max Weber in 1947, and again by Bernard M. Bass in 1981 as leaders are on the opposite leadership theory spectrum relative to transformational leaders.  The former depends on a system of rewards and punishments, while the latter takes advantage of internal motivations. Even in Bass (1985), explain about the transactional leaders display both constructive and corrective behaviors. Constructive behavior entails contingent rewards, and corrective dimension imbibes management by exception. Contingent reward involve clarification of the work required to obtain rewards and the use of incentives and contingent rewards to exert influence. It considers follower expectation and offers recognition when goals are achieved.
            In Pradeep & Prabhu (2011) suggest that leader must have the ability to attract / influence their subordinates, be able to set clear standards of performance to their peers and acts as a best role model to the subordinates. The result from this study also stated that transformational leadership styles have significant relationship with performance outcomes, Pradeep & Prabhu (2011). If compared to another type of leadership style, laissez-faire, allow to complete freedom to group decision making without the leader’s participation. Thus, subordinates are free to do what they like Adeyemi (2010). In this study also shows the argument of definition in the job performance definition. According to (Adeyemi 2010), It could be described as the ability of teachers to combine relevant inputs for the enhancement of teaching and learning processes (Akinyemi 1993). Many research and study also show the relationship between both, therefore it support the theoretical framework in this managerial grid  develop by Blake and Mouton (1985). Figure 1.1
 










                        Figure 1.1 Managerial Grid By Blake & Mouton 1985.





CONCLUSION
            Most Institution’s common goal is to produce a  good student in the industry, however at the same time it is also focus on the bottom line of the operational cost and effective management in order to be the best University. Therefore a proper leadership style is a need to see the best outcome of the job performance of employee in and organization. Adeyemi 2010 has embarked on the relationship between the leadership style and job performance in organization.

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