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1.0 INTRODUCTION
1.1 DEFINATION OF LITERATURE REVIEW
A literature review is a discussion about critical evaluation of extensive research and
theory relating to a specific topic. Normally, the literature review is the summary of sources on a
certain subject and evaluative approach. A good literature review will look at the research that
done and synthesize or pull together those elements that are similar or most pertinent to the
theme you have chosen. The purpose of a literature review which is to demonstrate and evaluate
with identify relevant information and to outline existing knowledge.
1.2 DEFINATION OF LEADERSHIP
As we know, leadership having the power to influence people in a group to achievement
vision, mission and goal. This is because leadership is a universal phenomenon in human
societies (Bass, 2008). Normally, organizations need strong leadership and strong management
for optimal effectiveness (Stephen P. Robbins, Timothy A .Judge). Different concepts and
definitions of leadership had been studied and discussed by different way in various fields cause
by leadership is a complex concept to explain (Northouse, 2004; Bass, 2008). Leadership
commonly concentrates on the leader as a person, the behavior of the leader, the effects of the
leader and the interaction process (Bass, 2008). The overall concept of leadership is a dynamic
process which is dependent the relationship between the leader and the followers (Barker, 1990).
An effective leader always encourages autonomy with the organizational environment and
creating an organizational culture by high level of motivation and morality which leader and
followers take part (Burns, 1978). Leadership plays an important role in the transformation of
organizational culture (Penrod& Dolence 1992). Leadership have considering 6 components
which is leadership as function, leadership as process, leadership as behavioral pattern,
leadership as role, leadership as work tasks and activities and leadership as skills (Anderson,
2008). This is important because by having leadership as function, our organization will become
more systematic and the goal will be achieve. Every organization having the differences types of
leadership which functional as behavioral pattern and skills. These leadership patterns will
become the advantages competition of the organization.
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In Malaysia, the evidence of important leadership in Government Linked Companies
(GLCs) , Khazanah Malaysia, Tenaga Nasional Berhad, Malaysia Airlines, Proton and Telekom
Malaysia. Leadership style is important because normally leaders function as control both
interpersonal and rewards and punishments to influence employee behavior and attitude. For the
high power of influence of leadership, styles on individuals will have a cumulative effect on
group performance (D.D.Warrick). Leadership styles can be determined on the characteristics
management skill of each leadership and the impact of philosophy on follower (D.D.Warrick ).
2.0 DEFINATION OF FULL RANGE OF LEADERSHIP MODEL
The study of full range of leadership model, which is, includes into three main parts,
which are transactional leader, transformational leader. The researchers found that perceived
transformational leadership and transactional leadership mostly positively related to job
satisfaction, which is important to organization commitment. We are more focus on the
transformational leadership with the reason aspire and strive to attain competitive advantage over
others leadership. The full range of leadership styles already develop with more than twenty five
years in many country like Belgium, Canada, Germany, Switzerland, Great Britain, India,
Ireland, Netherlands, Italy, Spain, Japan, Israel, New Zealand, Taiwan, Australia, South Africa,
Mexico, Venezuela, China, Malaysia ,Singapore and Korea especially in the field and laboratory
research (Bass and Avolio,2004). Transformational leadership is different from the transactional
leadership based on concentrate on development and progress, solidity, authorization, self-
confidence and complement. Transformational leaders carry on the change process more
effectively and no discriminate on grounds of race, color, sex, religion, age and social class
(Chemjong, 2004).
3.0 LITERATRE REVIEW BASED ON THEORY COMPONENT
Transformational leadership or TL shows the idea in a clear and pleasing manner that
explains how to attain the ideas, acts confidently and optimistically, expresses self-confidence to
the followers, highlights values with symbolic actions, leads by instances, and inspires the
followers to achieve vision (Stone, Russell & Patterson, 2003). The term, transformational
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leadership was first created by Downton in 1973, which classified the different between
transformational leadership from transactional leadership, but the idea gained little currency. In
1978, the concept of transformational leadership was introduced by Burns in his book named
“Leadership” during his studies of political leadership Burns (1978). He described
transformational leadership is not as a set of specific behaviors, but rather an incomplete process
by which leaders and followers gain one another to get higher levels of morality and motivation.
Transformational leadership in organizational psychology is one of the most common
leadership theories. This transformational leadership’s style can contribute to ensuring content
and healthy employees. It focuses on the relationship between upper levels like manager and
lower levels like employees. Furthermore, transformational leaders excite and inspire their
followers to achieve or gain extraordinary an outcomes and in the process to develop their
follower in own leadership capacity. These leaders help followers to grow and develop by
responding to followers’ individual needs by empowering them and aligning the objectives or
mission and goals of the individual followers, the leader, the group, and the larger organization
(Bass & Riggio, 2006).
In addition, transformational leadership had known as well-studied leadership styles that
assessed or valued by the Multifactor Leadership Questionnaire (MLQ). Transformational
leadership is span to cultural and organizational boundaries or fields. Yet, this theory verified
and validated in numerous studies. A given or present leader may exhibit varying degrees of
transformational leadership. The style is not exclusive, and some combination or outcome may
enhance the effective of leadership.
Therefore, transformational leadership is the thought to obtain the follower’s inherent
motivation through the expression of the value and reputation of the leader’s goals, missions and
objectives.
FOUR ELEMENTS OF TRANSFORMATIONAL LEADERSHIP
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There are four distinct factors of transformational leadership. These comprises of
individual consideration, inspirational motivation, intellectual stimulation and idealized
influence. Research conducted in Nebraska shows that, leaders must be able to practice these
four behaviors. They also tend to obtain extra effort from the employees, experience and gain
higher employee’s satisfaction in order to get higher productivity and greater organizational
effectiveness. (Refer Chart 1.1)
3.1.1 INDIVIDUAL CONSIDERATION
One of the four element transformational leadership is individual consideration or
compassionate leader. Leaders show personal interest in followers’ requirements of growth and
performance (Avolio and Bass, 2002) in individual consideration leadership. To make this done,
a leader will act as a referee, supervisor, role model, coach or mentor. He helps to develop his
follower's abilities towards high levels of abilities. A leader must consider individual differences
between his followers in terms of their obligations and desires. For instance, he has to play
double role through an effective and efficient contact with them (Avolio and Bass 2002, Bass,
1998). A consideration leader can develop his followers’ skills by delegating some tasks and
watch them from far by implemented so that he can ensure the total of supports and directions
needed. Some also make interpersonal connections with employees. These activities allow the
team members to achieve and fulfilled in their positions or posts. In addition, the positive effect
of individualized consideration and transformational behaviors remains in empowering the
followers (Behling and McFillen, 1996). Besides that, this behavior measured and valued by the
leader’s interest in the followers’ needs for development and growth (Bass, 1994).
3.1.2 INSPIRATIONAL MOTIVATION
The second element of transformational leadership is inspirational motivation, In short is
exciting the masses or sharing the vision. Inspirational motivation is the grade to which the
leader expresses an idea that is attracting and inspiring to the followers. Those leaders act or
behave in the ways that motivate and inspire those surrounding them. By this way, it provides the
sense and challenge to their followers in the workplace. In addition, leaders are well-defined of
the expectations that followers wish to encounter and also prove commitment. In my mind the
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person I am rating is a symbol of success and accomplishment is one of the examples to show an
inspirational motivation leader or leadership.
Based on that, those followers share visions or ideas in the organization. As a result,
those followers of team unity are stimulated and both leader and followers perform enthusiasm
as well as optimism. Leaders get followers to involve in imagining the future of the organization.
A leader sets a sample for his followers. He communicates vision or ideas, inspires hard work
and expresses significant goals. Furthermore, transformational leaders motivate others through
useful tasks or duties that tend to be challenging or stimulating.
In addition, inspirational motivation leader in transformational leadership must convey a
clear vision or ideas for the future, communicate expectations of the group and demonstrate
commitments to the goals or objectives that carried out. This aspect of transformational
leadership compels outstanding communication skills as leader bear his messages with accuracy,
control and sense of command. Therefore, this may lead the leaders’ behavior more continued
hopefulness, passion and capable to show out the positive.
3.1.3 INTELLECTUAL STIMULATION OR CREATIVE LEADERSHIP
This followed by intellectual stimulation in the transformational leadership. Intellectual
stimulation or creative leadership is the extent that leader encounter expectations, risk-takers and
followers’ ideas seeking or thinking outside of the box. Leader with these personalities manage
to motivate and inspire creativity in their followers. As a result, the followers might be get or
obtain inspiration and motivation from their leader. In addition, leaders encourage their followers
by putting efforts in innovation and creativity ways. This is to reframing difficulties and
approaching previous situations in a new ways. With new ideas and creative resolutions will
pursue from followers who are required in the stage of solving problems. So, one of the example
is the person I am rating introduces new projects and new challenges.
Transformational leadership intellectual stimulation does not criticize followers in public
for their mistakes. Rather, it provides them with stimulating tasks and guiding them to solve
problems the way they wish. It values the creativity and sovereignty among the leader's
followers. The leader supports his followers by linking or connecting them in the decision-
making process and encouraging their efforts to be as creative and innovative person as possible
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as to identify solutions. To this end, the transformational leader challenges those assumptions
and solicits ideas from followers without criticizing.
3.1.4 IDEALIZED INFLUENCE OR CHARISMATIC LEADERSHIP
The last element of transformational leadership is idealized influence, charismatic
leadership or in short is actions speak louder than words. How can we define it is idealized
influence is allocated into two terms which are attributed and behavior or performance. Firstly,
idealized influence attributed lies to whether or not the leader seen as charismatic, strong,
empowerment and self-confidence. This leads to if the followers would like to relate with him or
her. Secondly, idealized influence in term of behavior includes talking about his or her most
significant values and beliefs. This is the way to emphasizing the collective or joint missions and
purposes, as well as considering the ethical consequences of his or her decisions.
Leaders behave in ways that result towards them being role models to their followers.
Leaders are admired, respected, trusted and charismatic to people. They keen to act as a risk-
takers and more consistent all the time to give security to surrounding followers. Followers
identify or value and imitate these leaders so that their followers as having extraordinary
capabilities or skills, persistence, motivation and self-determination in such situations gift them.
Among those values, leaders conduct or organize to obtain this recognition is considering the
requirements of others over their own personal requests. The leader considered on to do the right
things, exhibiting high-level standards of ethical and moral management.
Besides that, the leader also evades using power for personal obtain. It shows the
employee’s outlook at the leader in terms of power of his influence, self-confidence, his
trustworthy towards others, his consistency and ideals which individuals make an effort to
imitate. Thus, the leaders have become a goal of admiration, respect, sense of responsibility, self-
confidence, growing in optimism and the talk of the followers. So mutually, followers have to
show a high level of confidence in their leader.
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3.2 TRANSACTIONAL LEADERSHIP (TS)
Maximilian Karl Emil "Max" Weber was the first founder who comes out with the
transactional leadership study. These theories once again being observe by Bernard Bass in 1981.
Generally, transactional leadership studies more focus on basic management skills in an
organization, which consists of three characteristic including organizing, controlling and short-
term planning.
The study of transactional leadership related with the ability of leader to monitoring their
followers or colleagues through rewards or punishment system (Melvyn R.W.Hasfra, Nico
W.Van Yperen, Barbara Wisse, Kai Sassenberg, 2013). Employees are motivated by rewards and
punishment unders this transactional leadership theory to achieve routine performance goals.
Through this leadership theory, leaders will more focus on giving direct monitoring action than
understanding and mastered the feeling and emotional of colleagues to achieve company goal
and mission. A transactional leader will set some goal or tasks based on the expectation from
upper class employees when giving instruction to lower class employees (Vera & Crossan,
2004). Besides that, transactional leader will more emphasize every staff performance and
working skills when they perform their tasks.
Transactional leadership also can be known as managerial leadership (Nuttawuth
Muenjohn). Managerial leadership will be more focus on the usage of supervision, the status of
company progress and the group performance among all colleagues. A transactional leader has
their organization power through the formal authority that given and fully responsible in progress
and performance of an organization (David V. Day, John Antonakis, 2012). The main goal of all
followers under transactional leadership is to obey or follow all instructions of the leader. Both
rewards and punishment will be given to the colleague for increase companies’ productivity and
organization maturity purpose.
Transactional leadership display human behavior with constructive and corrective
transaction. There are two key summaries that including in transactional leadership theory, which
are contingency rewards and active management by exception (Rick Kuckartz, 2010). (Refer
Chart 1.2). Contingency rewards are constructive leadership theory while active management by
exception is under corrective leadership theory.
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3.2.1 CONTINGENCY REWARDS THEORY
Contingency rewards is a theory related with giving rewards to someone that compliance
the company goal or have a good performance when carry out some tasks. Generally, this system
is a motivation-based system that widely used in many small and medium-sized organizations.
Through these methods, the colleagues or employees that achieve company goals will receive
some rewards or extra bonuses. Some organizations used this method as one of the effective
ways to improve companies’ performance and generate sales.
Besides that, contingency reward called as an exchange process that involves leaders and
followers in an organization (Judge and Bono, 2000). A leader that used contingency rewards, as
an effective ways to manage the followers need to ensure each subordinate is giving their efforts
that rate able with the rewards that given. Eventually, contingency rewards mostly will be
success in an organization if the rewards option is really fulfill employee needs. For example,
commissions and monetary bonuses are the common rewards that always attract employee
attention. If the rewards that provided cannot capture majority followers’ attentions, then the
contingency rewards will not be an effective ways to attract followers to puts more effort on their
task. Therefore, leaders should provide rewards that valuable to all employees and make sure the
rewards structure attainable to everyone (Elaine S. Chapman, Melissa T, 2004).
Another term that needs to be focus by every leader is contingency rewards system must
encourage all the employee-desired behavior. Rewards that giving to each employee should not
customized and only suitable some level of employees since these will affect the effectiveness of
contingency rewards. In fact, subordinate that fulfill the quality requirement deserve the
contingency rewards, such as monetary bonuses or others rewards. Besides that, followers that
lack of compliance, poor attendance and lack of professionalism also can be disqualification for
these contingency rewards.
3.2.2 ACTIVE MANAGEMENT BY EXCEPTION (Active MBE)
In fact, management by exception (MBE) is one of the management theories that widely
used in many organizations. These leadership theories divided into two parts, which are Active
Management by Exception (Active MBE) and Passive Management by Exception (Passive
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MBE). Bass, 1997 describes that active management by exception is form of leadership that
more focus on supervise all subordinate tasks performance day-to-day. Leaders under these
management theories will always watch and searches employees’ deviations when they carry out
some tasks or mission. Besides that, active MBE leaders overemphasize on details and short-
term goals in organization and the implementation of standard rules and procedures towards
employees.
Leadership that related with active management by exception normally will be carry out
by upper class employees towards theirs followers. There are a few step that need to be focus by
leaders to ensure the effectiveness of these management theory, which including observation
towards subordinate, recognize the mistake and problems that faced, and takes corrective actions.
(Refer Chart 1.3)
At first, leaders always observe all subordinate performance based on the rules and
standards of each organization. Leaders under Active MBE systems overemphasize on each
employee performance due to the increasing of productivity and maturity of an organization.
Active MBE is systems that focus on monitoring all employees as a main core strategy to
improve an organization reputation and productivity level (Michael Paul Petran, 2008).
Observation is an important level to identify whether all subordinate done their tasks follow the
rules and standards that aligned with some organization mission and target.
The second stage in active MBE is recognizing mistake and problems from employees.
This stage is playing an important role to build up a strong and efficient team works among all
subordinate in an organization. Through observation process, leaders can easily identify some
common mistake that occur among some employees when they carry out some tasks. Some
followers working attitudes and behavior are the main factors that affect the improvement of a
company. For example, absenteeism without reasonable excuses and individual attitudes are
some of the springboard that affects the maturity level of an organization (David B. Newberry,
2008). Besides that, some nature of job that requires high level of qualification and target
achievement also will lead to the lower performance from some subordinate. This phenomenon
occurs due to the gap between the ability of the employees with the standards level of the tasks
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given are representatively are not the same. Hence, through this level, leaders can be more easily
identify the problems that faced by followers in companies.
The following stage is takes correctives actions. Leaders will take correctives actions
towards the employees that make mistake under the monitoring and identify problems process.
Generally, an effective corrective action only will be taking towards followers that not acting
correctly in their working range or cannot achieve the target or mission that require by upper
class employees. Leaders under active MBE will stricter on implementation of company mission
and rules towards all employees. They will enforce the rules and companies requirement to all
employees as an important step to prevent mistakes from every employee. Transactional leaders
will carry out corrective actions in variety ways, such as punishment towards employees and
excessive blaming on the mistake that done. Corrective actions carry out to subordinate due to
maintain the status quo and improve performance of an organization.
Compare with contingency rewards theory, active MBE is a management theory that lead
to more negative feedback and negative effect among employees. As we know, active
management by exception is a form of monitoring and corrective action that used in control
subordinate in organization. Leaders will follows closely about rules violations among followers
to ensure the qualities of performance between individual and organization. Hence, subordinates
easy to feel stress when performance their tasks under overemphasized from the leaders and this
will brings to many negative effect to an organization.
3.3 PASSIVE AVOIDANCE
One of the theories that included in full range of leadership model is passive avoidance.
Generally, passive is using to describe some people attitude that allow some event or activities to
happen or simply accepts others people decision and suggestion without trying to take some
action to change the final decision. A person that have passive characteristic in an organization
does not actively participate in all event and not involving themselves in visible reaction about
organization planning and development. While, avoidant known as a types of human behavior
that used to describes the tendency of someone to avoid intimacy or interaction with others
people. Someone who has avoidance characteristic prefers doing his or her own work in a silent
condition rather than have a good society networking with anyone.
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In fact, passive avoidance is types of leadership theory that emphasized passive action
and less management control among all subordinates in an organization. Majority organization
less choose passive avoidance theory as a main strategies to control and manage an organization
status quo. This phenomenon is common due to the less effectiveness of these theories that
willing to contribute for the improvement of an organization. A leader who practice passive
avoidance theory in an organization hard to control majority employees working attitude and
behavior, due to the less action and interaction between leaders and followers. If an organization
choose passive avoidance as their main leadership theory, majority upper class employees hard
to maintain the status quo of an organization and cannot even improve the company reputation
and productivity.
Avoidance leadership mainly refers to two main factors that important, which are laissez-
faire and passive management by exception (passive MBE). (Refer Chart 1.4)
3.3.1 LAISSEZ-FAIRE
Eventually, laissez-faire leadership is a form of leadership style that leaders allow their
subordinate to make the decisions when carry out any tasks. In laissez-faire leadership, leaders
only give a little guidance and set a hands-off concept to their followers. Followers need to
overcome some common trouble with colleague and choose the best decision without lots of
suggestion from leaders. Compare with active management by exception (active MBE), laissez-
faire leadership gives much more freedom and has fewer rules that need to be obeyed by
followers when carry out some tasks or decision-making (John J. Sosik, Don I. Jung, Dongil
(Don) Jung, 2010).
On the others hand, laissez-faire leadership also known as declarative leadership, which
means the leaders provides a free and relaxing environment for all subordinate to make decision
and giving their own view point when doing decision making. Majority decision making and
suggestion will be determined by subordinate themselves without any viewpoint or opinion from
leaders. Leaders or upper class employees abdicates their own responsibility, avoid to using their
authority and escape to make decision in many conditions. These kind of leadership often brings
a big effect to the improvement of an organization due to the lacks of direction occurs among all
colleague.
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Besides that, laissez-faire leadership also can define as non-authoritarian leadership’s
style. Leaders try to give less possible guidance to their followers, and perhaps these relaxing
management methods can achieve higher performance rather than supervision management
method (Sudha Xirasaga, 2008). Under laissez-faire leaderships, leaders believe that colleague
will have much more excellent performance when they being alone to respond to theirs
responsibility and tasks that given. According to these principle, leaders does not involving
themselves in making decision process and often lead to the low performance and anarchy
among subordinate occurs.
Leaders under laissez-faire leadership need to be more focus on few characteristic that
related with these theories, which are less guidance from leaders, complete freedom when doing
decision-making and subordinate expected to solve problems on their own methods. (Refer Chart
1.5).
Here are some different point of view between the usage and the effectiveness of laissez-
faire leadership in an organization. In the situation where majority of the followers have high
level of knowledge and working experience, motivated and have ability to working on their own,
laissez-faire leadership can be one of the effective methods to manage an organization. Through
this leadership method, followers not only capable to handle all the problems that’s faced, but
also can enjoy the relaxing working surrounding without supervision from leaders. Consultation
and feedback also provided to followers when needed although this theory related with hands-off
approach.
In some conditions, laissez-faire leadership will brings negative impact to some
organization too. For example, laissez-faire theory is not an ideal theory when an organization
has hired majority employees that lack of knowledge and working experience. The subordinate
cannot have a good decision-making and complete some tasks in an efficient way. Besides that,
some followers do not have the ability to manage their own project and tasks, solving some
problems by own and setting a suitable deadlines to complete some tasks. Without the guidance
and suggestion from leaders, some project will go off-track and it will affect the reputation of an
organization.
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Briefly, many researchers have found that laissez-faire leadership is one of the
management theories that lead to the lowest productivity between leaders and followers in an
organization. This laissez-faire leadership style is a contrast theory with transformational and
transactional leadership style, because it defined as the absence of leadership in an organization.
Laissez-faire leadership consider as the most passive component and the least effective form of
leader behavior (Antonakis, Avolio and Sivasubramaniam, 2003).
3.3.2 PASSIVE MANAGEMENT BY EXCEPTION (PASSIVE MBE)
One of the leadership theories under passive avoidance is passive management by
exception. Compare with active management by exception, these theory more focus on passive
and corrective actions that taken after noticed the conditions of some event getting worse.
Generally, leaders under passive MBE tend to be interfering and keep silent with some
employees’ negative attitude if there were not any rules violence and mistake that easy to
identify. Corrective actions only will take when followers’ performance cannot fulfill company’s
standards and mission or some mistakes that done be identified by upper class employees.
On the others hand, passive management by exception is one of the management methods
that only involve the leaders interruption process after all the followers can’t handle a project and
met with the works rules and setting by the organization. Before the failure of tasks performance
occur, leaders seldom took part in-group discussion about some topic and all decision-making
that determined by all subordinate. When there are some situation related with non-compliance
with organization’s standards be identify, then leaders start to give some of his or her viewpoint
to others colleague and try to settled the problems in a short period.
There are some step that followed by all leaders under passive management by exception
approach when they manage their followers in an organization. These following procedure
determined the ways of management that chosen as core strategy to manage the followers in
organizations. (Refer Chart 1.6).
The first step in passive management by exception (passive MBE) is leaders will give
complete freedom to subordinate to solving the problems that faced by the organization without
giving guidance and suggestion. All colleague need to do decision-making based on the self-
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discussion among all group members and determined the best option to overcome some
problems. Normally, followers feel difficult to choose some best strategies to overcome some
problems since there are lacks of knowledge and working experience compare with upper class
employees.
Second step in passive MBE is recognizing negative impacts that occur due to the
decision-making from subordinate. Majority followers cannot make the best decision to improve
the organization reputation and generate sales without any opinion from the leaders. Therefore,
majority leaders under passive MBE started to recognize negative impact that occurs after the
followers make their own decision. For example, some project that need to be carry out didn’t
fulfill the minimum requirement that stated in the agreement and some tasks cannot be carry out
on the due date that given. Negative impact that occurs not only will be one of the springboards
that affect the improvement of an organization; it also will lead to the reducing revenue of an
organization. Normally, leaders only will recognize some problems that occur in an organization
when the problems already become serious or some followers’ violence the companies’ rules and
must be settle in a meanwhile.
Besides that, a corrective action will take to all followers that violence the company rules
and standards. Leaders will give some guidance and advice in this stage when the followers
being identify that they really cannot complete some tasks without any suggestion from the
leaders. Leaders should understand followers feeling and ability before allocate the tasks to
them. Some followers that lack of working experience feel difficulty to have a good performance
when complete their tasks in a short time. Besides guidance and advice, sometimes, leader will
give some punishment to his or her followers too when there are some unacceptable tasks given
by the followers. This punishment can effectively improve the followers performance through
the following tasks that given. A corrective action must take on time before the negative impact
brings lots of big impact to an organization reputation and revenue.
In conclude passive management by exception (passive MEB) is a form of leadership that
passive and only involving corrective action when some mistakes from followers brought to
leaders attention. Leaders under passive MBE leadership theory always avoid from giving
guidance and opinion to the followers until some mistake or problems getting serious and cannot
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being ignored in an organization. Through previous studies about passive MBE, these theories
had shown to negative impact for workplace safety and the increasing rate of injury among
followers. According to Bass and Avolio, 1996, the interest of passive management by exception
leaders tended to be “leaving things alone as long as it doesn’t give them too much trouble.” In
others words, leaders under passive MBE theory only will carry out some reaction when
followers cannot fulfill the organization standards and cannot complete their tasks in a good
performance.
4.0 EMPRICAL FINDINGS / EMPIRICAL EDVIDENCE ON FULL-RANGE
LEADERSHIP MODEL
Based on our understanding in article is the Full-Range Model of Leadership Really a
Full-Range Model of Effective Leader Behavior? Although no one set of leader behaviors’
constitutes a full- range model of leader behavior, the results presented here indicate that
effective leaders use a broader set of behaviors’ than the ones included in MLQ measure. Using
the MPS (Managerial Practices Survey) measure, it demonstrated that the inclusion of some
additional leader behaviors’ adds to the prediction of managerial effectiveness beyond the MLQ
(Multifactor Leadership Questionnaire).
In all, this research suggests that to have a better understand effective leadership in an
increasingly turbulent and competitive environment, it is important to take a broader perspective
on the behavior of leaders and integrate different paradigms of leadership together to form a
more inclusive model of effective leadership. There are three main components in full range of
leadership model, which are transformational, transactional and passive avoidance and its
structure. (John, Brian and Jeewon, 2010). (Refer Chart 1.7)
From the result of this study, we know that we can evaluate the extent to which the MLQ
assesses a full-range model of leadership behavior. In this study, we note that transformational
leadership has been shown to be related to organizational performance and leader effectiveness
(Judge & Piccolo, 2004).
Similarly, contingent reward behaviors also is one of the component that positively
related to various subordinate outcomes such as extra effort, organizational commitment, and
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managerial satisfaction and effectiveness (Bass, 1998; Bycio et al., 1995; Judge & Piccolo, 2004;
Lowe, Kroeck, & Sivasubra- maniam, 1996). Some versions of the full-range model include
laissez-faire leadership as a separate behavior category.
Prior research provides sufficient evidence for the relevance of transformational and
transactional leadership, but their results reveal some weaknesses with the MLQ as an
assessment of a “full-range” model of leadership Results show also suggest that the different
leadership components predicted the various outcomes differently.
In fact, the results from the dominance analysis suggest that certain leader behaviors are
more effective in influencing some outcomes over others.
4.1 EMPIRICAL FINDINGS ON TRANSFORMATIONAL LEADERSHIP
INTRODUCTION
Burns (1978) defined transformational leadership as a process in which "leaders and
followers raise one another to higher levels of morality and motivation" (pg. 20). A chief element
of transformation is the ability to cultivate the needs of the follower in a follower-centered
manner. According to Burns, focusing on needs makes leaders accountable to the follower.
Munaf (2010) believes that under transformational leadership subordinates becomes more
confident; as their ideas been used to achieve goals and has been given a lot of encouragement
from the management through which they make achievement. According to Munaf, such leader
persuades their associates to give effort to utilize their higher levels of talent, keeping into
consideration moral and ethical standards.
There are varieties of management styles but we will focus on only three management
styles for our finding purpose. Firstly is transformational, according to Burns, focusing on needs
makes leaders accountable to the follower. First, Burns contended that followers driven by a
moral need, the need to champion a cause, or the need to take a higher moral stance on an issue.
Secondly is transactional leadership, whereas it involves conditional reinforcement.
Supporters motivated by praise, or promises by the leader for reward. They corrected through
punishment in form of disciplinary action or negative feedback. When expected performance
achieved, then subordinates will be giving promotion (Munaf, 2010).
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Munaf also highlighted that, the third type of management style considered as passive
avoidance behavior. It includes passive management-by-exception leadership and laissez-faire
styles. Management-by-exception is more passive and “reactive. It does not react to problematic
situation analytically.
FINDINGS
According to Munaf (2010), a research been conducted by her to determine the effectiveness of
transformational, transactional and passive avoidance management styles in Selected Higher
Educational Institutions of Pakistan through examining its relationship with achievement
motivation of teaching faculties.
To determine the result of these findings, Munaf has made a research by giving out
samples. The first sample consist of 60 Chairpersons or heads of different departments of 30
private and 30 public sector universities of province of Sindh and Punjabi in Pakistan. The
second sample consisted of teaching faculties from same 60 departments from where the first
sample of heads was been taken.
Munaf has been taken the measurements by introduced to Participants and Informed
Consent Form for the heads requests the Chairman/Director/Head of the department/institute of
public/private sector University of Pakistan to participate voluntarily in the study and if they are
interested to participate, then they would be required to complete some forms.
After taking consent data collection from the Vice chancellor/Registrar/Dean of the
selected universities, the heads of departments approached individually. Then, they requested to
cooperate in data collection by completing the set of questionnaires. Firstly, they asked to
complete several forms then if there is, a slight change in instruction of certain forms it must
made with the request to the heads of the departments. After that, heads then further requested to
nominate two regular teachers of their department to be sample two.
Lastly, in order to keep confidentiality of their answers, both the samples asked to fill
Proforma in an envelope given to them and seal it properly. Thus, the total score of two teachers
on achievement motivation added up and divided by 2 to give composite average score of
achievement motivation of a teaching faculty (Munaf, 2010).
RESULTS
17
Transformational leadership is the most effective method in examining its relationship with
achievement motivation of teaching faculties among three type of leadership model. (Refer Table
1.1).
INTERPRETATION
A. The correlation of transformational style of management in educational institutions of
Pakistan is not significantly related with the achievement motivation of its faculties (r = .201, p >
.05). Similarly, correlation of transactional style of management in educational institutions of
Pakistan is not significantly related with the achievement motivation of its faculties (r = .171, p >
.05).
B. The correlation of passive avoidant style of management in educational institutions of
Pakistan is significantly related with the achievement motivation of its faculties (r = .264, p.
<.05).
4.2 EMPIRICAL FINDINGS ON TRANSACTIONAL LEADERSHIP
INTRODUCTION
Transactional leadership can be defined as research that related with the ability of leader to
monitoring their followers or colleagues through rewards or punishment system (Melvyn
R.W.Hasfra, Nico W.Van Yperen, Barbara Wisse, Kai Sassenberg, 2013). Recent studies have
shown that transactional leadership, in the form of contingent reward behaviour, can have
substantial effects on employee attitudes, perceptions and behaviour.
Therefore, in this study we discuss how contingent reward transactional leadership
behaviour influences enterprise resource planning (ERP) users’ continuance intention by
explains how contingent reward has a positive effect on ERP users’ satisfaction and perceived
usefulness which leads to ERP continuance intention.
FINDINGS
The article is about an empirical piece of work conducted by Rezvani et al. (2012). This article
determines that leadership behavior emphasized on explaining effort-reward relations and
engages exchanges that take place among a leader and subordinates. For intense, leader argues
with employees about their requirement and clarifies the method to achieve the outcome and the
18
reward that receive in exchange for the satisfactory effort and performance. Contingent rewards
transactional (CRT) leaders recognize risk-taking, continuous learning and collegial support and
teamwork; they provide an environment where correct behavior is prized and where rewards
serve as extrinsic motivation for desired behavior (Natter et al. 2001).
Thus, CRT leadership behavior positively related to organizational justice perception,
commitment, follower motivation, organizational citizenship behaviors’, organization
performance, and leader effectiveness (Bass et al. 2003; Walumbwa et al. 2004; Podsakoff et al.
2000; Podsakoff et al. 2006). Contingent reward transactional (CRT) leadership behavior has
been a subject of considerable importance in organizational research (Podsakoff et al. 2000;
Podsakoff et al. 2006).
Recent studies have reached reliable and positive outcome concerning the significant
unique effect of transactional contingent reward behavior on employee behaviors, perceptions
and attitudes (Judge and Piccolo 2004; Podsakoff et al. 2010). A poor fit can lead to goal
conflicts and decreased incentives for teamwork and collegial support (Andres and Zmud, 2002).
Therefore, it is critical to striking a balance between contingent rewards based on desired
behavior and individual performance. Based on these explanations, it is easy to see that CRT
leadership behavior exerts a commanding influence on how ERP users perceive usefulness as
well as satisfaction and how they behave in relation to ERP continuance intention.
CONCLUSION
Recent research has shown that transactional leadership, in the form of contingent reward
behavior can have substantial effects on employee attitudes, perceptions and behaviors’. We
suggest that leadership reward behaviors’ have significant unique effects on attitudes,
perceptions and behaviors’, and the manner in which leaders administer rewards is a critical
determinant of the effectiveness of this leadership behavior.
4.3 EMPIRICAL FINDINGS ON PASSIVE AVOIDANCE
INTRODUCTION
Does leadership style affect absenteeism in a company? The purpose of this findings is to
contrast the effects of two leadership styles which is transformational and passive avoidance
19
regarding absenteeism, both legitimate and illegitimate, as mediated by job satisfaction
(Frooman, Mendelson, and Murphy, 2012).
FINDINGS
According to Frooman, Mendelson and Murphy, it founded that transformational
leadership decreases illegitimate absenteeism, while passive avoidance leadership increases it.
About legitimate absenteeism, transformational leadership showed to have no effect, while
passive avoidant leadership shown negatively related to it. The findings regarding passive
avoidant leaders suggest their subordinates tend to come to work when ill (presenteeism), but
stay away from work when well (illegitimate absenteeism).
Frooman, Mendelson and Murphy has highlighted on passive avoidance because by their
very definitions, it does not seem possible for someone to be both transformational and passive
avoidant. After all, transformational leadership, at its very essence, is active – formulating and
expressing vision and shared goals, giving feedback, providing encouragement – all these aspects
require engagement far beyond the range of the passive avoidant leader.
Furthermore, they acknowledge that their findings are an exploratory study, and given
that, heightened contrast that we believe exists between transformational leadership and passive
avoidance leadership. If significant differences will show up anywhere, they should show up
between these two styles of leadership (Frooman, Mendelson, and Murphy, 2012).
Thus, the empirical relationship between leadership style and absenteeism is far from
clear, and the theoretical relationship seems underdeveloped. These considerations suggest there
is room for further investigation, and so in this study they examine leadership style
(transformational vs. passive avoidance, which is a type of transactional leadership) as a
predictor of absenteeism, mediated by job satisfaction.
RESULTS
Studies examining the link between transformational leadership and absenteeism have
produced mixed results – either showing a negative correlation (Richardson and Vandenberg,
2005; Walumbwa and Lawler, 2003; Zhu et al., 2005), or no correlation (Gakovic, 2002;
Walumbwa et al., 2004; Wang and Walumbwa, 2007).
20
Only Zhu et al. (2005) have considered the link between transactional leadership and
absenteeism (which they found to be non-significant), and their work is the only one to directly
compare the effects of the two contrasting leadership styles.
The results showed that passive avoidant leadership positively predicted illegitimate
absenteeism (b¼0.17, po0.05). When job satisfaction added into this relationship, the
relationship became insignificant (b¼0.13) suggesting that job satisfaction fully mediates the
relationship between passive avoidant leadership and illegitimate absenteeism.
The relationship between passive avoidance leadership and legitimate absenteeism was
negative and significant (b¼"0.20, po0.05). However, this relationship not mediated by job
satisfaction, because job satisfaction was not shown to predict legitimate absenteeism (b¼0.09).
Thus, the relationship between passive avoidant leadership and legitimate absenteeism was a
direct one.
5.0 DISCUSSION ON COMPONENT IN FULL RANGE LEADERSHIP MODEL
Based on our findings, we have come out with a discussion regarding about full range of
leadership. In this theory, the best method among three of the leaderships in an organizational is
transformational leadership. Transformational leadership is the best implement by a manager to
lead in an organization in order to build up employees’ personalities and attitudes. According to
Russell, transformational leaderships relies on how to attain the ideas, acts confidently and
optimistically, expresses self-confidence to the followers or employees to achieve a goal.
There is couple of study case that related with the effectiveness of transformational
leadership in an organization or education institution. For instance, Munaf (2010) doing a
research to determine the effectiveness of three types of leadership in Selected Higher
Educational Institutions of Pakistan. According to Munaf (2010), transformational leadership is
the effective way among three types of leadership style when used to exanimate the motivation
status in teaching faculties. Throughout the research result, she realized that the motivation status
that achieve through using transformational leadership shows the highest outcome among three
types of leadership model. This study is important because it discusses and explores the benefits
of transformational leadership because until now most organization still using traditional
21
leadership, which is based on exchange of extrinsic, rewards and does not seek to motivate
followers beyond the level of avoiding punishment and or getting rewards. Moreover, this study
is also significant because it tells exactly how transformational leadership effects employee
commitment, satisfaction and work engagement.
Besides that, throughout our findings about three types of leadership model, it show that
transformational leadership can be more effective and stronger in work force engagement along
with contingency rewards under transactional leadership style. A contingency reward system is a
motivation-based system that related with giving rewards to colleagues that compliance the
company goal. An effective leader not only will focus on build up an employees’ positive
personality, but also will using contingency rewards as a strategy method to maintain the
relationship between leader and follower. According to Burns (1978), transactional leadership
will be more effective when most followers receive something that has great value outcomes
when they act according to their leader wishes. Based on the case study from Rezvani, it is
regarding about the relationship between effort-reward relations and engages exchange between
leaders and subordinates. Throughout this case study, it shows that contingency rewards under
transactional leadership model are an effective method to engage subordinates loyalty towards a
company. Followers will put more effort on their tasks performance when leaders are using
contingency rewards methods as one of the method to manage the company. Besides that, this
empirical evidence also shows that contingency rewards are positively related with
organizational justice perception, follower motivation and others subordinates’ performances in a
company.
In conclusion, transformational leadership is the effective method among three types of
leadership style to engage followers’ loyalty besides increase the company performance. These
phenomenon occurs due to the core focus of transformational leadership is attitude and behavior
buildup of each followers’. However, several research shows that employee loyalty can be
maintain by contingency rewards that given throughout an organization. Therefore, when
transformational leadership style gets along with contingency rewards, this management method
will be stronger and able to increase an organization performance. These leadership models, able
to brings the biggest satisfaction between leaders and subordinates’ and able to increase
company goals and company maturity.
22
6.0 SUMMARY ON FULL RANGE LEADERSHIP MODEL
In conclusion, full range of leadership model included some effective component in
managing an organization. Full range of leadership model is one of the leadership style that
important because normally leaders function as control both interpersonal and rewards and
punishments to influence employee behavior and attitude. There are three components in full
range leadership model, which are transformational leadership, transactional leadership and
passive avoidance. Based on our empirical finding, we founded that transformational leadership
is the effective leadership model among three types of leadership model. These happen most
probability due to transformational leadership is more focus on the relationship between upper
levels and lower levels in the management of organizational and span to cultural and
organizational boundaries or fields. The transformational leadership has four elements, which
consist of individual consideration, inspirational motivation, intellectual stimulation and
idealized influence. Besides that, others two component in full range of leadership model will be
transactional leadership and passive avoidance. Transactional leader is leaders that doing
monitoring through rewards or punishment system for the aim to achieve goals target by increase
productivity. There are more focus in on the contingency rewards and active management by
exception in transactional leadership theory. Active management by exception functions as
monitoring and corrective action control in organization. While, passive avoidance is types of
leadership theory that emphasized passive action and less management control among all
subordinates in an organization. Passive avoidance leadership included two types of system,
which is laissez-faire and passive management by exception. Laissez-faire leadership is a form of
leadership style who the followers have more freedom make decision to overcome common
trouble and less guidance from leaders. The researchers found that the full range of leadership
especially transformational leadership and transactional leadership normally is important to
organization commitment because mostly positively related to job satisfaction. Therefore, full
range of leadership model should be more practice in many varieties sized of organizations and
companies, such as small, medium and large-sized organizations.
23
7.0 APPENDIX
CHART 1.1
CHART 1.2
CHART 1.3
24
Transactional Leadership (TS)
Contingency Rewards
Active Management by Exception
Individual Consideration Inspirational Motivation
Intellectual Stimulation Idealized Influence
CHART 1.4
CHART 1.5
CHART 1.6
25
ACTIVE MANAGEMENT BY EXCEPTION
Observation towards Subordinate
Recognizing Mistake & Problems
Takes Corrective Actions
Laissez-Faire
Passive Management by Execption
PASSIVE AVOIDANCE
LAISSEZ-FAIRE
LEADERSHIP
Less Guidance from Leaders
Complete freedom when
decision-making Expected to Solve Problems on Their Own
CHART 1.7
TABLE 1.1
26
PASSIVE MANAGEMENT BY
EXCEPTION
Complete Freedom to Subordinate for Solving
Problems
Recognize Negative Impact due to the Desicion-making
Takes Corrective Action & Overcome Problems in
Short Time
Correlations of Different Pakistani Styles of University Educational Management with
Achievement Motivation of Their Teaching Faculties.
Management Styles Statistics Achievement Motivation
Transformational style Pearson Correlation
Sig.
N
.201
.124
60
Transactional style Pearson Correlation
Sig.
N
.171
.191
60
Passive avoidance style Pearson Correlation
Sig.
N
.264 (*)
.042
60
Correlation is significant at the 0.05 level.
Sources: 2010 International Conference on E-business, Management and Economics
IPEDR vol.3 (2011) © (2011) IACSIT Press, Hong Kong by Seema Munaf.
TABLE 1.1
27
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31